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 Friday, April 25, 2008, Vol. 9, No. 82 Headlines A R G E N T I N A ALITALIA SPA: To Receive EUR300 Million Bridging Loan from Italy CHRYSLER LLC: In Talks with Fiat SpA Over Alfa Romeo Production BELKI SRL: Proofs of Claim Verification Deadline Is June 23 COMPANIA INMOBILIARIA: Claims Verification Deadline is July 1 EDILTEL SRL: Trustee to Verify Proofs of Claim Until July 21 FUTURE SA: Proofs of Claim Verification Deadline is May 30 MANRIQUE SRL: Trustee to Verify Proofs of Claim Until May 30 MAR YI: Files for Reorganization in Buenos Aires Court RED PREVER: Proofs of Claim Verification Deadline is May 23 SANFOR SALUD: Trustee to File Individual Reports on July 8 SUR AMERICA: Trustee to Verify Proofs of Claim Until June 26 B E R M U D A CENTRAL EUROPEAN: To Issue 1st Quarter 2008 Earnings on April 30 CENTRAL EUROPEAN: S&P Rates US$475MM Senior Convertible Notes BB CHEVRON OVERSEAS: Proofs of Claim Filing Deadline is May 7 CHEVRON OVERSEAS: Sets Final Shareholders Meeting for May 26 DSG TRADING: Proofs of Claim Filing is Until May 7 DSG TRADING: Sets Final Shareholders Meeting for April 28 DUAL-STRATEGY GUARANTEED: Proofs of Claim Filing is Until May 7 DUAL-STRATEGY GUARANTEED: Final Shareholders Meeting on April 30 G5 WORLD: Proofs of Claim Filing Deadline is May 8 G5 WORLD: Sets Final Shareholders Meeting for May 28 XL CAPITAL: Reports US$244.3MM Net Income in Qtr. Ended March 31 B R A Z I L BANCO GMAC: Eyes Continued Increase in Leasing EDITORA ABRIL: Moody's Gives Ba3 Local Currency Corporate Rating MAGNESITA REFRATARIOS: Moody's Puts Ba1 Corporate Family Rating NET SERVICOS: To Concentrate on Offering Bundled Services SADIA SA: Shareholders OK Big Foods & Avicola Indust'l Purchase UAL CORP: US$542 Mil. Pretax Loss Does Not Affect S&P's 'B' Rtg. C A Y M A N I S L A N D S ACKDON GAMMA: Proofs of Claim Filing Deadline is May 1 BANK RAKYAT: To Present 1st Quarter 2008 Earnings on April 29 COURAGE HEDGED: Proofs of Claim Filing is Until May 1 COURAGE HEDGED US: Proofs of Claim Filing Deadline is May 1 F.Y. FUNDING: Proofs of Claim Filing is Until May 1 HYDRA VI: Proofs of Claim Filing Deadline is May 1 PARMALAT SPA: Factorit & Italease Settle Revocatory Suit PARMALAT SPA: Selling Newlat SpA to TMT Finance PARMALAT SPA: NJ Judge Dismisses Most Claims Versus Citigroup PARMALAT SPA: Court Closes Chapter 11 Cases of Former U.S. Units PARMALAT SPA: Trustee Seeks 3-Year Extension of Farmland Trust C H I L E EASTMAN KODAK: S&P Holds B+ Corporate Credit Rating METHANEX CORP: Earns US$65.4 Million in 2008 First Quarter C O L O M B I A GMAC LLC: Moody's May Further Cut B2 Rating After Review C O S T A R I C A SIRVA INC: Court Extends Confirmation Hearing for Two Days D O M I N I C A N R E P U B L I C BASIC ENERGY: Approves US$3 Billion Merger Deal with Grey Wolf BASIC ENERGY: Grey Wolf Merger Deal Cues S&P's Positive Watch E C U A D O R BANCO PICHINCHA: Extends Consent Solicitation to April 29 G R E N A D A AMERICAN AIRLINES: To Add Miami-Grenada Non-Stop Flight Schedule J A M A I C A AIR JAMAICA: Gov't to Launch Int'l Bidding Process for Airline AIR JAMAICA: To Launch Code Share Pact with Asian Airlines AIR JAMAICA: Contractor General to Investigate Heathrow Slots CASH PLUS: Defense Lawyers to Seek Bail for Carlos Hill Again M E X I C O AMERICAN AXLE: UAW Rejects Economic Offers; Firm Mulls Closures ASARCO LLC: Grupo Mexico Has Poor Stewardship Record, Union Says DESARROLLADORA HOMEX: 1Q 2008 Net Income Up 7.9% to MXN504.3Mil. DIOMED HOLDINGS: Delivers Schedules of Assets and Liabilities DIOMED HOLDINGS: Engages Wolf Greenfield as Special Counsel FIAT SPA: Shows Interest in Acquiring Serb Car Maker Zastava P E R U FREEPORT-MCMORAN COPPER: Eyes US$6.5 Billion Operating Cash Flow FREEPORT-MCMORAN COPPER: High Metal Prices Boost Firm's Profit P U E R T O R I C O HORIZON LINES: Extends Walgreens Delivery Contract to Two Years MUSICLAND HOLDING: Pursues US$145 Mil. in Damages From Best Buy MUSICLAND HOLDING: Panel & H. Truesdell Agree to Replace Counsel MUSICLAND HOLDING: Discloses Post-Confirmation Distributions PATHEON INC: Undertakes Series of Events on Restructuring Plan PATHEON INC: Moody's Holds B2 Rating; Changes Outlook to Neg. U R U G U A Y * URUGUAY: R&I Lifts Foreign Currency IDR to BB-; Outlook Stable V I R G I N I S L A N D S PETROLEOS DE VENEZUELA: Output Totals 1.1 Bln. Barrels in 2007 PETROLEOS DE VENEZUELA: Takes Over Diques y Astilleros PETROLEOS DE VENEZUELA: Selling Fuel Oil to Petrobras PETROLEOS DE VENEZUELA: S&P Holds Long-Term Credit Rating at BB- X X X X X X * Caribbean Region Faces Big Challenges on US Slowdown, S&P Says * Southwest Healthcare Transactions Conference Set on May 30 - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: To Receive EUR300 Million Bridging Loan from Italy ---------------------------------------------------------------- The Italian government has approved a EUR300-million bridging loan to Alitalia S.p.A. to keep it afloat and prevent it from seeking bankruptcy protection, various reports say. As reported in the TCR-Europe on April 22, 2008, the incoming administration of Prime Minister-elect Silvio Berlusconi and the outgoing government of current Prime Ministe Enrico Prodi have initially agreed to provide a EUR150 million emergency financing to Alitalia, which only had EUR170 million in cash and credit as of March 31, 2008. Finance Minister Tommaso Padoa-Schioppa was quoted by Bloomberg News as saying that without the loan, Alitalia would have to seek protection from creditors. Mr. Prodi said Mr. Berlusconi asked him to raise the loan amount to EUR300 million to allow more "time to put together and organize possible alternative solutions," the Associated Press reports. Mr. Prodi noted that Alitalia has to repay the loan by end of 2008. State Aid Violation? The European Commission, meanwhile, would review the financing to Alitalia, whether it violates the European Union rule on state aid, Bloomberg News says citing spokesman Michele Cercone. Under EU's "one time, last time" principle, a company beneficiary of a state aid cannot receive additional rescue or restructuring funding within 10 years since its accepted financial assistance. AP quoted the Commission last week said Alitalia cannot receive further aid until 2011, since it took fiscal assistance in 2001. Italian Bidders AirOne S.p.A., banks led by Intesa Sanpaolo S.p.A. and Italian businessmen led by Mr. Berlusconi adviser Bruno Ermolli may form a group to bid for Alitalia, Bloomberg News says, citing an unsourced Il Messaggero report. According to Il Messaggero, AirOne will own 40% of the bidding vehicle, the banks will control 40% and Mr. Bruno's group will hold 20%. Mr. Berluconi has been insisting that an Italian consortium will present a binding offer for Italy's 49.9% stake in Alitalia in less than a month. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. CHRYSLER LLC: In Talks with Fiat SpA Over Alfa Romeo Production --------------------------------------------------------------- Chrysler LLC has initiated talks with Fiat SpA over a possible cooperation agreement under which Chrysler will produce the Italian auto manufacturer's Alfa Romeo cars in its U.S. Factories, Reuters reports, citing German newspaper Handelsblatt. The talks, Reuters says, is now in the advanced stage. A Chrysler spokeswoman, however, dismissed the report as speculation, saying "there could be other partnerships with other carmakers," Reuters relates. Chrysler earlier announced a production alliance with Japanese automaker Nissan, the paper reveals. As reported in the Troubled Company Reporter-Europe on March 27, 2008, Fiat entered into discussions with Detroit's auto manufacturers on sharing production of Alfa Romeos in the U.S. Fiat's chief executive officer Sergio Marchionne said that production of Alfa cars will start by 2011 or 2012. Meanwhile, Alfa, which will start distributing and selling cars in the U.S. cars next year, will have to absorb losses until production starts with a partner. Fiat had to manufacture in the U.S. because of the weakness of the dollar against the euro. Fiat is also preparing to transfer its Iveco division to the U.S. along with the relaunched Fiat 500 compact car. About Fiat Turin, Italy-based Fiat SpA -- http://www.fiatgroup.com/-- (BIT:F) is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. About Chrysler Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. BELKI SRL: Proofs of Claim Verification Deadline Is June 23 ----------------------------------------------------------- Marisa Gacio, the court-appointed trustee for Belki SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 23, 2008. Ms. Gacio will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 10, 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 Belki 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 Belki's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Gacio is also in charge of administering Belki's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Belki SRL Cochabamba 1599 Buenos Aires, Argentina The trustee can be reached at: Marisa Gacio San Martin 793 Buenos Aires, Argentina COMPANIA INMOBILIARIA: Claims Verification Deadline is July 1 ------------------------------------------------------------- Ruben Acosta, the court-appointed trustee for Compania Inmobiliaria Metropolitana e Interior SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 1, 2008. Mr. Acosta 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. 30, 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 Compania Inmobiliaria 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 Compania Inmobiliaria's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Acosta is also in charge of administering Compania Inmobiliaria's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Compania Inmobiliaria Metropolitana e Interior SA Tucuman 825 Buenos Aires, Argentina The trustee can be reached at: Ruben Acosta Tucuman 1585 Buenos Aires, Argentina EDILTEL SRL: Trustee to Verify Proofs of Claim Until July 21 ------------------------------------------------------------ Maria Ezequiela Festugato, the court-appointed trustee for Ediltel SRL's bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on July 21, 2008. Ms. Festugato be verifying creditors' proofs of claim until June 9, 2008. Ms. Festugato will submit to the court a general report containing an audit of Ediltel's accounting and banking records on Oct. 1, 2008. Ms. Festugato is also in charge of administering Ediltel's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ediltel SRL Marcelo T. de Alvear 1261 Buenos Aires, Argentina The trustee can be reached at: Maria Festugato Lavalle 1667 Buenos Aires, Argentina FUTURE SA: Proofs of Claim Verification Deadline is May 30 ---------------------------------------------------------- Francisco Rogelio Cano, the court-appointed trustee for The Future S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 30, 2008. Mr. Cano will present the validated claims in court as individual reports on July 15, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by The Future and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of The Future's accounting and banking records will be submitted in court on Sept. 9, 2008. Mr. Cano is also in charge of administering The Future's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: The Future S.A. Del Barco Centenera 3179 Buenos Aires, Argentina The trustee can be reached at: Francisco Rogelio Cano Uruguay 618 Buenos Aires, Argentina MANRIQUE SRL: Trustee to Verify Proofs of Claim Until May 30 ------------------------------------------------------------ The court-appointed trustee for Manrique S.R.L.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 30, 2008. The trustee will present the validated claims in court as individual reports on July 29, 2008. The National Commercial Court of First Instance in Santa Fe will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Manrique 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 Manrique's accounting and banking records will be submitted in court on Sept. 9, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on March 6, 2009. The debtor can be reached at: Manrique S.R.L. Jujuy 2381, Villa Gobernador Galvez Santa Fe, Argentina MAR YI: Files for Reorganization in Buenos Aires Court ------------------------------------------------------ Mar Yi S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Mar Yi to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Mar Yi S.A. San Martin 201 Piso 6 Dto. 1 Buenos Aires, Argentina RED PREVER: Proofs of Claim Verification Deadline is May 23 ----------------------------------------------------------- Elba Gabriela Hirigoity, the court-appointed trustee for Red Prever S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 23, 2008. Ms. Hirigoity will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Red Prever 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 Red Prever's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Ms. Hirigoity is also in charge of administering Red Prever's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: The Future S.A. Del Barco Centenera 3179 Buenos Aires, Argentina The trustee can be reached at: Elba Gabriela Hirigoity Avenida Cordoba 1388 Buenos Aires, Argentina SANFOR SALUD: Trustee to File Individual Reports on July 8 ---------------------------------------------------------- Jorge Hugo Basile, the court-appointed trustee for Sanfor Salud SA's reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on July 8, 2008. Mr. Basile will be verifying creditors' proofs of claim until May 27, 2008. He will present in court a general report containing an audit of Sanfor Salud's accounting and banking records on Sept. 1, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on March 3, 2009. The debtor can be reached at: Sanfor Salud SA Pasaje King 348 Buenos Aires, Argentina The trustee can be reached at: Jorge Hugo Basile Pte. J. E. Uriburu 782 Buenos Aires, Argentina SUR AMERICA: Trustee to Verify Proofs of Claim Until June 26 ------------------------------------------------------------ Jorge Oscar Abrego, the court-appointed trustee for Sur America Palangre S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until June 26, 2008. Mr. Abrego will present the validated claims in court as individual reports on Aug. 22, 2008. The National Commercial Court of First Instance in Mar del Plata, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Sur America 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 Sur America's accounting and banking records will be submitted in court. Infobae didn't state the submission deadline for the general report. Creditors will vote to ratify the completed settlement plan during the assembly on March 6, 2009. The debtor can be reached at: Sur America Palangre S.A. Moises Lebensohn 5835, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Jorge Oscar Abrego Daprotis 6125, Mar del Plata Buenos Aires, Argentina ============= B E R M U D A ============= CENTRAL EUROPEAN: To Issue 1st Quarter 2008 Earnings on April 30 ---------------------------------------------------------------- Central European Media Enterprises Ltd. will release its first quarter 2008 financial results before United States market hours on April 30, 2008. The company will also host a teleconference to discuss its first quarter 2008 results on April 30, 2008, at 10:00 a.m. New York time (3:00 p.m. London and 4:00 p.m. Prague time). The teleconference will refer to presentation slides which will be available on Central European Media's web site at http://www.cetv-net.comprior to the call. To access the teleconference, U.S. and International callers may dial +1 973-321-1024 ten minutes prior to the start time and reference passcode: 44056751. The conference call will be broadcast live via http://www.cetv-net.com. A replay of the teleconference will be available for two weeks following the call and can be accessed by dialing +1 800-642- 1687 for U.S. callers and 1-706-645-9291 for International callers, passcode: 44056751. A digital audio replay in mp3 format will also be archived on the company's web site. Based in Bermuda, Central European Media Enterprises Ltd., is a TV broadcasting company with leading networks in six Central and Eastern European countries. Launched in 1994, the company and its partners now operate 16 channels in six countries, including TV Nova, Nova Cinema and Galaxie Sport in the Czech Republic; PRO TV, PRO Cinema, Pro International, Sport.ro, MTV and Acasa in Romania; Nova TV in Croatia, TV Markiza in the Slovak Republic; POP TV and Kanal A in Slovenia; and Studio 1+1, Kino and Citi in Ukraine. For the year ended Dec. 31, 2007, the company generated segment revenues of US$840 million and segment EBITDA of US$320 million. Central European Media is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV". CENTRAL EUROPEAN: S&P Rates US$475MM Senior Convertible Notes BB ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' debt rating to the US$475 million senior secured convertible notes due 2013 issued by Bermuda-based emerging markets TV broadcaster, Central European Media Enterprises Ltd. in March 2008. The long-term corporate credit rating was affirmed at 'BB'. The outlook is stable. At the same time, S&P raised the debt rating on both Central European Media's EUR245 million and EUR150 million floating-rate notes due, respectively, in 2012 and 2014 to 'BB' from the previous 'BB-', in line with the corporate credit rating, following a review of the collateral and the evolution of structural subordination aspects within the group's capital structure. With fully adjusted total debt to EBITDA at about 2.3x at the end of December 2007, the ratings on Central European Media remain constrained by the group's acquisition-led financial policy and by its high concentration of profitability in a single TV channel in the Czech Republic and in its Romanian TV channels. The ratings are also constrained by the cyclical nature of the TV advertising markets in which the group operates and the potential for regulatory and political interference. These factors are mitigated to a significant degree by Central European Media's market-leading positions in four of the six Eastern European countries in which it is present, good short- term revenue visibility, and its position as a producer of established, locally produced content. In addition, the rating continues to reflect good rates of growth in the group's TV advertising markets and increasing equity control of operations in all markets. This is supported by the company's recently announced intention to buy out its partners' 30% equity interests in Ukrainian broadcaster Studio 1+1 for US$219.6 million, while having the right to acquire the remaining 10% through a put and call arrangement. "The stable outlook reflects our expectation that the level of operating maturity of CME's core TV broadcasting assets will continue to translate into EBITDA growth and healthy operating cash generation," said S&P's credit analyst Manuela Gabetta. To maintain the 'BB' rating, S&P expects that the group will use an adequate mixture of debt and equity to support its expansion into more risky markets. "We also expect that CME will moderate distributions to shareholders for as long as it remains on an acquisitive path," said Ms. Gabetta. The ratio of fully adjusted total debt to EBITDA is expected to strengthen on back on cash flow generation and remain comfortably below 4x on an ongoing basis. The ratings would come under immediate pressure if any acquisition target takes financial ratios outside the stated thresholds for a protracted period, or if the group's largest TV stations underperform. Rating upside is currently restricted by Central European Media Enterprises Ltd.'s continuing investments in volatile markets such as Ukraine. Based in Bermuda, Central European Media Enterprises Ltd., is a TV broadcasting company with leading networks in six Central and Eastern European countries. Launched in 1994, the company and its partners now operate 16 channels in six countries, including TV Nova, Nova Cinema and Galaxie Sport in the Czech Republic; PRO TV, PRO Cinema, Pro International, Sport.ro, MTV and Acasa in Romania; Nova TV in Croatia, TV Markiza in the Slovak Republic; POP TV and Kanal A in Slovenia; and Studio 1+1, Kino and Citi in Ukraine. For the year ended Dec. 31, 2007, the company generated segment revenues of US$840 million and segment EBITDA of US$320 million. Central European Media is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV". CHEVRON OVERSEAS: Proofs of Claim Filing Deadline is May 7 ---------------------------------------------------------- Chevron Overseas Petroleum (Vietnam) Limited's creditors have until May 7, 2008, to prove their claims to Gary R. Pitman, 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. Chevron Overseas' shareholder decided on April 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Gary R. Pitman Chevron House 11 Church Street Hamilton, HM DX, Bermuda CHEVRON OVERSEAS: Sets Final Shareholders Meeting for May 26 ------------------------------------------------------------ Chevron Overseas Petroleum (Vietnam) Limited will hold its final general meeting on May 26, 2008, at 9:30 a.m. at Chevron House, Church 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. Chevron Overseas' shareholder decided on April 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Gary R. Pitman Chevron House 11 Church Street Hamilton, HM DX, Bermuda DSG TRADING: Proofs of Claim Filing is Until May 7 -------------------------------------------------- DSG Trading Limited's creditors are given until May 7, 2008, to prove their claims to Beverly Mathias, 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. DSG Trading's shareholders agreed on April 21, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda DSG TRADING: Sets Final Shareholders Meeting for April 28 --------------------------------------------------------- DSG Trading Limited will hold its final general meeting on April 28, 2008, at 9:30 a.m. at Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, 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. DSG Trading's shareholders agreed on April 21, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda DUAL-STRATEGY GUARANTEED: Proofs of Claim Filing is Until May 7 --------------------------------------------------------------- Dual-Strategy Guaranteed Fund Limited's creditors are given until May 7, 2008, to prove their claims to Beverly Mathias, 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. Dual-Strategy Guaranteed's shareholders agreed on April 21, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda DUAL-STRATEGY GUARANTEED: Final Shareholders Meeting on April 30 ---------------------------------------------------------------- Dual-Strategy Guaranteed Fund Limited will hold its final general meeting on April 30, 2008, at 9:30 a.m. at Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, 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. Dual-Strategy Guaranteed's shareholders agreed on April 21, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda G5 WORLD: Proofs of Claim Filing Deadline is May 8 -------------------------------------------------- G5 World Multi Par T Limited's creditors are given until May 8, 2008, to prove their claims to Jennifer Y. Fraser, 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. G5 World's shareholders agreed on April 18, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda G5 WORLD: Sets Final Shareholders Meeting for May 28 ---------------------------------------------------- G5 World Multi Par T Limited will hold its final general meeting on May 28, 2008, at 9:00 a.m. at Canon's Court, 22 Victoria 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. G5 World's shareholders agreed on April 18, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda XL CAPITAL: Reports US$244.3MM Net Income in Qtr. Ended March 31 ---------------------------------------------------------------- XL Capital Ltd. reported net income for the three months ended March 31, 2008 of US$244.3 million, compared with US$562.5 million for the same period in 2007. The reduction in net income is due primarily to the following: -- 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 compared with US$540.0 million 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. Commenting on the current quarter results, President, Chief Executive Officer and Acting Chairman 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." Headquartered in Bermuda, XL Capital Ltd. -- http://www.xlcapital.com/-- writes liability insurance and reinsurance worldwide, specializing in low-frequency, high- severity risks from riots to natural disasters. The company writes policies through numerous subsidiaries, many of them offshore, and also manages a Lloyd's of London syndicate. XL's coverage includes general and executive liability, property, and political risk insurance. Its reinsurance covers property, aviation, energy, nuclear accident, and professional indemnity. * * * As reported in the Troubled Company Reporter-Latin America on April 3, 2008, Fitch Ratings downgraded XL Capital Ltd.'s Class A1 to 'BB' from 'A' and Class A2 to 'BB' from 'A' and removed it from Rating Watch Negative. Fitch also downgraded XLCA's Insurer Financial strength rating to 'BB' and removed the IFS from Rating Watch Negative. =========== B R A Z I L =========== BANCO GMAC: Eyes Continued Increase in Leasing ---------------------------------------------- Banco GMAC S.A.'s officials told journalists that the bank expects a continued increase in leasing to help expand total lending by 20% in 2008. Banco GMAC said in its 2007 financial statements that it ended 2007 with BRL3.90 billion in its loan book, which is 27.3% higher compared to 2006. Leasing operations rose 220% to BRL1.21 billion in 2007. Leasing would increase at the same rate this year and eventually represent 70% of GMAC's loan portfolio, with consumer loans accounting for 30%, BNamericas says, citing Banco GMAC's Sales Director Gunnar Murillo. Mr. Murillo commented to BNamericas, "The appeal of leasing a vehicle comes from IOF [Imposto Sobre Operacoes Financeiras]." BNamericas relates that the government increased the IOF financial transactions tax by 0.38% on new loans in January 2008, including car loans. Leasing operations were exempted. The central bank set up reserve requirements on cash deposits by leasing firms, beginning at 5% in May 2008 and increasing to 25% by January 2009. Mr. Murillo told BNamericas that Banco GMAC will "place more emphasis on the smart buy program, which offers lower monthly payments and a final balloon payment," to boost lending in 2008. Mr. Murillio commented to BNamerica, "We had a really good first quarter, well within our objectives." Vehicle leasing and loans increased 44.9% to BRL117 billion in February 2008, compared to the same time in 2007, leasing rose 96.4% to BRL71.8 billion, BNamericas says, citing figures from trade association of automaker finance companies Anef. Mr. Murillo told Bnamericas that individual borrowers represent 85% of GMAC's portfolio while commercial borrowers represent 15%. Meanwhile, Michael Kimmel will take command of Banco GMAC in May, BNamericas adds. Banco GMAC is headquartered in Sao Paulo, Brazil. As of September 2007, Banco GMAC reported total assets of BRL5.47 billion and equity of BRL818.28 million. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 11, 2008, Moody's Investors Service downgraded Banco GMAC S.A.'s global long-term local and foreign currency deposit ratings to B1 from Ba3. Moody's said the outlook remains negative. EDITORA ABRIL: Moody's Gives Ba3 Local Currency Corporate Rating ---------------------------------------------------------------- Moody's Investors Service has assigned Ba3 and A3.br local currency and Brazil National Scale corporate family ratings to Editora Abril S.A. The rating outlook is stable. With this action, Moody's is reinitiating coverage of Editora Abril after all previous ratings were withdrawn in January 2006. "The ratings are supported by Editora Abril's dominant position within the Brazilian magazine market, its valuable brand portfolio, the company and its parent, Abril S.A.'s consistently improving leverage and coverage ratios over the past three years, as well as the benefits of more sustainable growth in Brazil's advertising market, which has been driven by a consistent expansion of Brazilian consumer real income," says Moody's analyst Soummo Mukherjee. The ratings assigned to Editora Abril also reflect the significant contribution to revenues of cyclical advertising (40% of net revenues), the seasonality in Editora Abril's business, and the lack of transparency in the company's financial disclosures, as well as its complex ownership structure, with a high level of intercompany transactions. Editora Abril's Ba3 local currency corporate family rating reflects its global default and loss expectation, while the A3.br national scale rating reflects the standing of Editora Abril's credit quality relative to its domestic peers. Issuers or issues rated A3.br present above-average creditworthiness relative to other domestic issuers. The main subsidiary of the Abril group, which is controlled by the Civita family, Editora Abril is the leading magazine publishing and printing company in Brazil, holding a 53% market share of the country's total magazine circulation, 51% of its total magazine subscriptions, and 48% of its total magazine advertising market. This dominance is an important support to the rating. Moody's views the substantial contribution in terms of revenues and EBITDA from Editora Abril's weekly magazine, Veja, as posing concentration risk to the company. This risk is, however, mitigated to some extent by Veja's historic dominant market share in the Brazilian magazine market. Editora Abril's dominant market position supported by its strong brand and editorial quality, as well as a valuable portfolio that covers all segments drove strong subscriber growth in 2007, closing out the year with 3.3 million subscriptions, up 4.4% over 2006. In 2007 the company also implemented a cost reduction program that led to permanent cost savings of approximately BRL60 million and transferred its lower-margin distribution services company, Dinap, from Editora Abril to a different subsidiary of Abril S.A., Treelog S.A. Log�stica e Distribui��o. These factors associated with a stronger Real, allowed Editora Abril to improve its EBITDA margin to 18.9% in 2007 from 15.8% in 2006. Going forward Moody's expects Editora Abril to keep generating sustainable and further improved operating margins based on the positive trends for both advertising market and subscriptions sales and on the maintenance of cost control discipline. In October 2006, Abril S.A. entered into an agreement with Telecomunica�oes de Sao Paulo S.A., the Brazilian fixed-line subsidiary of Spain's Telefonica S.A., to sell the totality of its Multichannel Multipoint Distribution Service (MMDS) operations, 19.9% of cable TV operations in Sao Paulo and a 49% stake in the rest of its cable TV operations, within the 19.9% limit for fixed line company provider in Sao Paulo and within the 49% limit for foreign investor control allowed by the legal framework for the cable TV industry in Brazil. In July and in November 2007, regulatory agency Anatel approved the sale of the MMDS operations and the minority stake in the cable TV business respectively. Editora Abril had received BRL163.9 million in net proceeds from the transaction as of year-end 2007. The receipt of part of the proceeds has significant contributed to an improved liquidity and leverage profile at the company. Total debt adjusted to incorporate refinanced taxes and intercompany liabilities amounted to BRL923 million in 2007, with BRL90.2 million due in the next twelve months. Editora Abril`s had cash and cash equivalents of BRL238 million as of year-end 2007, sufficient to cover all short term debt maturities. Editora Abril's EBIT/Gross Interest Expense coverage ratio has increased to 2.2 times in 2007 in comparison to 1.4 times in 2006. This improvement was driven by lower interest costs, mainly as a result of a contractual reduction in the interest coupon on its privately placed debentures and by higher operating margins. Over the last several years the Abril group has made significant efforts to improve the group's corporate governance, including creating a board of directors and a board of executive officers to manage the group's activities and by adding three independent members to the board. The rating is somewhat constrained by the fact that the company does not disclose quarterly cash flow statements. The stable outlook reflects Moody's expectation that Editora Abril will be able to maintain its dominant position in the Brazilian magazine market, while maintaining sales growth and relatively stable operating margins. Further upward movement in Editora Abril's rating would require the completion of the company's restructuring plans with evidence that the company is ring-fenced from the rest of Abril S.A.'s business and more clarity on the expected use of intercompany transactions. A positive rating action would also require improvement in financial disclosure standards, including quarterly cash flow statements. Editora Abril's rating would come under downward pressure if the company experiences a consistent deterioration in market-share, operating performance or credit metrics, such that Total Debt/EBITDA increases to above 3.5 times or EBIT/Gross Interest Expense drops below 2.0 times on a prolonged basis. A downgrade could also be driven by the group's failure to simplify its corporate structure or reduce its reliance on intercompany transactions. Based in Sao Paulo, Brazil, Editora Abril S.A. -- http://www.abril.com.br/br/-- is the largest magazine publisher in Brazil, with approximately 3.3 million subscriptions and net revenues of BRL1.9 billion (approximately US$957 million) in 2007. It publishes and prints a wide selection of consumer magazines, including Veja, the fourth best selling weekly news magazine in the world. MAGNESITA REFRATARIOS: Moody's Puts Ba1 Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service assigned corporate family ratings of Ba1 on its global scale and Aa2.br on its Brazilian national scale to Magnesita Refratarios S.A. The rating outlook is stable. The Ba1 rating takes into consideration Magnesita Refratarios' dominant position as Brazil's largest supplier of refractories mainly to the steel and cement industries, supported by long- standing client relationships and significant import barriers. In addition, the rating incorporates the company's healthy operating margins deriving from globally competitive production costs thanks largely to a high level of vertical integration and efficient logistics. Moody's expects that the company will benefit from the cost-driven management philosophy under implementation by the new controlling owners. The rating is also supported by the large size and good quality of the company's mineral reserves and high level of electricity self- sufficiency, in addition to Moody's view of growth perspectives for the refractories industry over the near term based on substantive announced investments in steel and cement capacity expansion in Brazil. The company's Ba1 rating is constrained by its relative small size, its substantive client concentration and low geographic diversity. Its moderately high leverage is in part mitigated by its sound liquidity position and strong cash flows. Uncertainties related to the company's internationalization and expansion plans are additional constraining factors for the rating. Magnesita Refratarios' good corporate governance reflects its adherence to Bovespa's Novo Mercado, with expectations of transparency improvements going forward. While the Ba1 global scale rating reflects the global default and loss expectation of Magnesita Refratarios, the Aa2.br national scale rating reflects the standing of its credit quality relative to other domestic issuers. The stable outlook reflects Moody's expectation that Magnesita Refratarios will continue to benefit from a leadership position to support superior operating margins relative to international peers, while maintaining a prudent financial management and healthy liquidity position. The outlook also anticipates moderate debt reduction with improved cash generation. Any positive ratings consideration would require Magnesita Refratarios to demonstrate that its recent initiatives resulted in improved operating margins and a dramatic reduction in debt while simultaneously maintaining a robust liquidity position, resulting in net debt to EBITDA consistently below 2.0. This is unlikely to be evidenced in the near term. A further constraint to an upgrade is the company's current ownership structure and a demonstration that financial policy will remain stable and prudent over time. Consistently negative free cash flows, deteriorated liquidity and/or increased leverage as measured by net debt to EBITDA above 3.0 probably due to acquisition could place downward pressure on the company's rating or outlook. Headquartered in Montes Claros, Brazil, Magnesita Refratarios S.A. is Brazil's largest manufacturer of refractories used for industrial high-temperature processes such as iron and steel, cement, glass and others. The company reported consolidated revenues of BRL1,199 million (US$574 million) in 2007, thereof approximately 83% achieved in Brazil, 5% in Argentina, and 12% generated from exports. NET SERVICOS: To Concentrate on Offering Bundled Services --------------------------------------------------------- Net Servicos de Comunicacao SA's General Director Jose Felix told reporters that the firm will concentrate on offering its bundled services this year. Mr. Felix commented to Business News Americas, "Before the launch of Net Fone.com [which is the name of the package, not a website address], the company's products were only reaching [higher income] classes A and B. Our penetration in [lower income] class C was very low. With this package we entered the class C market and we want to increase our product's offer to this segment." BNamericas relates that Net Servicos' package contains: -- fixed telephony service, -- broadband Internet connection of 100 kilobits per second, and -- quality television signal to open public channels. Mr. Felix also told BNamericas that there a partnership with Claro for the offer of quadruple play services is very likely. At this point, we are working on identifying something that would add value to clients of both companies and also interest new possible customers." Headquartered in Sao Paulo, Brazil, Net Servicos de Comunicacao SA -- http://nettv.globo.com/NETServ/us/empr/sobr_visao.jsp-- is the largest pay-television operator in Latin America. The company operates in 79 Brazilian cities, including Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre. It is also the leading provider of high-speed cable modem Internet access through Net Virtua service. Its advanced network of coaxial and fiber-optic cable covers over 44,000 kilometers and passes approximately 9 million homes. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 21, 2008, Moody's Investors Service assigned a Ba2 foreign currency rating to the proposed up to US$200 million guaranteed long term senior unsecured notes to be issued by Net Servicos de Comunicacao S.A. The rating outlook is stable. SADIA SA: Shareholders OK Big Foods & Avicola Indust'l Purchase --------------------------------------------------------------- Sadia S.A.'s shareholders, by majority voting at the Extraordinary General Meeting on April 17, ratified proposals to acquire the controlling interest of Big Foods Industria de Produtos Alimenticios Ltda. and of Avicola Industrial Buriti Alegre Ltda, a regulatory filing with the U.S. Securities and Exchange Commission says. According to the SEC disclosure, shareholders agreed to purchase the controlling interest of Big Foods for BRL53,500,000 and for Avicola Industrial, BRL53,866,000. Sadia S.A., headquartered in Sao Paulo, Brazil, exports over 1,000 different products to more than 100 countries and is the largest slaughterer and distributor of poultry and pork products, as well as the leading refrigerated and frozen protein products company in Brazil. For the last twelve months ending in December 2006, the company had net sales of BRL 6.9 billion (ca. US$3 billion) with approximately 45% of revenues derived from exports. * * * As reported by the Troubled Company Reporter-Latin America on Feb. 26, 2007, Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Sadia S.A. The outlook is stable. UAL CORP: US$542 Mil. Pretax Loss Does Not Affect S&P's 'B' Rtg. ---------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings and outlook on UAL Corp., parent of United Air Lines Inc. (both rated B/Negative/--) are not affected by UAL's report of a heavy first-quarter loss. UAL reported a first-quarter US$542 million pretax loss, as much higher fuel prices more than offset increased revenues. S&P had revised its rating outlook on both entities to negative from stable on April 16, 2008. In that outlook revision, S&P cited very high fuel prices and the expected effect on UAL revenues of a weak U.S. economy. UAL's loss is expected to be the worst reported by a U.S. Airline in the first quarter of 2008, and has prompted the company to pursue further capacity reductions, cost cuts, capital expenditure reductions, and initiatives to generate added revenues. Management also suggested that the difficult outlook only strengthens the need for a U.S. airline industry consolidation, which would include a merger of UAL with another airline. UAL has manageable 2008 debt maturities (US$928 million) and relatively low (and just reduced) planned capital spending of US$450 million. Unrestricted cash was US$2.9 billion at March 31, lower relative to the size of the company's revenue base than that of some other airlines. Still, the principal near-term issue for UAL is potential violation of the fixed- charge covenant in United's bank facility. The fixed-charge covenant is defined as consolidated EBITDAR to cash interest plus cash aircraft rents plus scheduled debt maturities, with a minimum level of 1.0x, increasing to 1.1x at Dec. 31, 2008. UAL's 2008 fixed charges, as defined, are estimated at about US$1.8 billion. There is currently a reasonable cushion in the fixed-charge covenant, but that could well change, given the likelihood of a significant loss for the year. In response, UAL could choose to seek a negotiated amendment or waiver, pay off the facility (US$1.2 billion outstanding), or pursue other actions. United has US$3 billion of aircraft, spare engines, spare parts, and other "hard assets," that could potentially support secured borrowing or generate proceeds from a sale. The company is also pursuing a sale of its aircraft maintenance business, though that requires consent of the union representing United mechanics. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. ========================== C A Y M A N I S L A N D S ========================== ACKDON GAMMA: Proofs of Claim Filing Deadline is May 1 ------------------------------------------------------ Ackdon Gamma Fund's creditors have until May 1, 2008, to prove their claims to Frank Ackerer and Olivier Claudon, 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. Ackdon Gamma's shareholders agreed on March 4, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Frank Ackerer and Olivier Claudon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands BANK RAKYAT: To Present 1st Quarter 2008 Earnings on April 29 ------------------------------------------------------------- PT Bank Rakyat Indonesia Tbk will hold its first quarter 2008 Earnings Presentation on April 29, 2008. As reported by the Troubled Company Reporter-Asia Pacific on April 1, 2008, the bank is targeting a 10-15% rise in its 2008 net profit. For the quarter ended March 31, 2007, Bank Rakyat reported net income of IDR1.2 trillion. The TCR-AP also reported on March 31, 2008, that Bank Rakyat's 2007 net profit increased 13.6% to IDR4.84 trillion from IDR4.26 trillion in 2006, after net interest margins declined slightly. Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended Dec. 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised Bank Rakyat's foreign currency long-term debt rating to Ba2 from Ba3 and its foreign currency long-term deposit ratings to B1 from B2. Fitch Ratings affirmed all the ratings of PT Bank Rakyat Indonesia (Persero) Tbk: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA+(idn)', * Individual 'C/D', and * Support '4'. COURAGE HEDGED: Proofs of Claim Filing is Until May 1 ----------------------------------------------------- Courage Hedged US Equity Master Fund, Ltd.'s creditors have until May 1, 2008, to prove their claims to Giles Kerley and Joshua Grant, 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. Courage Hedged's shareholders agreed on Dec. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Giles Kerley and Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands COURAGE HEDGED US: Proofs of Claim Filing Deadline is May 1 ----------------------------------------------------------- Courage Hedged US Equity Offshore Fund, Ltd.'s creditors have until May 1, 2008, to prove their claims to Giles Kerley and Joshua Grant, 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. Courage Hedged's shareholders agreed on Dec. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Giles Kerley and Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands F.Y. FUNDING: Proofs of Claim Filing is Until May 1 --------------------------------------------------- F.Y. Funding Cayman Limited's creditors have until May 1, 2008, to prove their claims to Joshua Grant and Phillipa White, 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. F.Y. Funding's shareholder decided on March 12, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant and Phillipa White Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands HYDRA VI: Proofs of Claim Filing Deadline is May 1 -------------------------------------------------- Hydra VI Funding Corporation's creditors have until May 1, 2008, to prove their claims to Martin Couch and Giles Kerley, 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. Hydra VI's shareholders agreed on March 12, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Martin Couch and Giles Kerley Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands PARMALAT SPA: Factorit & Italease Settle Revocatory Suit -------------------------------------------------------- Factorit S.p.A. and Banca Italease S.p.A. have settled the claim related to revocatory action filed by Parmalat S.p.A. in Extraordinary Administration and by Parmalat S.p.A., Assumptor of the Proposal of Composition. The Factorit settled the revocatory action and committed to pay of EUR2,500,000 as well as to relinquishing in favor of Parmalat the outstanding credits that have not been collected by Factorit. Italease is foregoing the right to claim in the bankruptcy procedure for the payment made. Litigation expenses will be compensated among the parties. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted Parmalat Permanent Injunction. PARMALAT SPA: Selling Newlat SpA to TMT Finance ----------------------------------------------- Parmalat S.p.A., following a competitive procedure, has signed a contract with TMT Finance S.A. to dispose of the entire share capital of Newlat S.p.A., in compliance with antitrust rulings no. 14452 dated June 30, 2005, and no. 16282 dated Dec. 31, 2006. Disposal of the shares is subject to approval and authorization of the purchase by the Italian competition and market authority. Newlat has its registered offices in Reggio Emilia, and has been part of the Parmalat group since August 2006 after coming out of controlled administration procedure. The company operates under the "Polenghi," "Matese," "Giglio," "Torre in Pietra" and "Fior di Salento" brands. Newlat reported turnover of around EUR150 million in 2007, and had a headcount numbering more than 300 staff. TMT, with headquarters in Lugano in Switzerland, has a footprint in various sectors of the food and agricultural industry, such as milling, production of pasta and milk and dairy produce, and also in shipping and modern trade distribution. The TMT Group�s reported consolidated 2007 turnover of more than EUR200 million, with a headcount of over 600 staff and a production structure distributed across 12 facilities in Italy. Newlat will be sold at the closing date for a token value of EUR1, against the sale by Parmalat to Newlat of a receivable in an amount of up to EUR8 million, again for a token value of EUR1. Inter-company items for an amount of approximately EUR4.5 million will be reimbursed before the closing, with an estimated cash flow of equal amount in favor of Parmalat Group. The sale will not have any economic impact on Parmalat. With this transaction, Parmalat will de-consolidate financial debt and amounts payable under finance leases for a total of around EUR36 million on the basis of the situation as at March 31, 2008. Parmalat S.p.A. will promptly inform of the execution of shares transfer as per the agreement signed. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted Parmalat Permanent Injunction. PARMALAT SPA: NJ Judge Dismisses Most Claims Versus Citigroup ------------------------------------------------------------- The Hon. Jonathan N. Harris of the New Jersey Superior Court has dismissed most of the claims filed by Parmalat S.p.A. against Citigroup Inc., Bloomberg News reports. According to the report, Judge Harris has dismissed fraud, conspiracy, racketeering and unjust enrichment charges against Citigroup. Citigroup, however, will still go to trial May 5, 2008, for charges of aiding and abetting breach of fiduciary duty relating to the corrupt insiders' larceny from Parmalat. "We look forward to vindication on the remaining claims and our counterclaims for the losses we suffered as a victim of Parmalat's admitted fraud," Citigroup spokeswoman Andrea Hurst told Bloomberg News. Parmalat said the ruling narrowed its claims and measure of damages against Citigroup. Bloomberg News relates that Judge Harris didn't specify the size of Citigroup's potential liability. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. PARMALAT SPA: Court Closes Chapter 11 Cases of Former U.S. Units ---------------------------------------------------------------- Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York entered a final decree closing the Chapter 11 cases of Parmalat USA Corp., Farmland Dairies LLC, and Farmland Stremicks Sub, L.L.C. Pursuant to Section 1930(a)(6) of the Judiciary and Judicial Procedures Code, the Reorganized and Liquidating Debtors will not be obligated to pay quarterly fees to the U.S. Trustee for any period beyond March 31, 2008 with respect to their Chapter 11 cases. The Final Decree is without prejudice to the rights of the Debtors or any party-in-interest to seek to reopen their Chapter 11 cases. On behalf of Parmalat USA, Farmland Dairies and Farmland Stremicks, formerly known as Milk Prodcts of Alabama L.L.C., Gary T. Holtzer, Esq., at Weil, Gotshal & Manges, LLP, in New York, said the U.S. Debtors have resolved approximately all of the 970 claims that were filed in their cases, as well as other matters which remained open after the confirmation of their Modified Chapter 11 Plan of Reorganization dated March 9, 2005. Mr. Holtzer said there are two pending claims objections remaining: (a) Parmalat USA and Farmland's objection to a priority tax claim filed by the New York State Department of Taxation and Finance; and (b) Parmalat USA's objection to a general unsecured personal injury claim. According to Mr. Holtzer, the U.S. Debtors are hopeful that those claims can be resolved without further intervention of the Court. In the interim, the U.S. Debtors have created reserves for those disputed claims and hence are able to satisfy those claims upon allowance. Mr. Holtzer said the U.S. Debtors' cases have been "fully administered" within the meaning of Section 350. According to Mr. Holtzer, other than the two pending claims objections, the U.S. Debtors' only remaining obligations will be to: (i) make additional distributions pursuant to the Plan; (ii) file tax returns; and (iii) in the cases of Parmalat USA and MPA, dissolve. Allowing the U.S. Debtors to close their Chapter 11 cases will save significant expenses and benefit all parties, Mr. Holtzer said. Until the Court enters a final decree closing the cases, the U.S. Debtors may be required to continue payment of quarterly fees to the U.S. Trustee. The U.S. Debtors have filed with the Clerk of the Court their Bankruptcy Closing Report. Accordingly, the U.S. Debtors submit that there is ample justification for the entry of a final decree closing their Chapter 11 cases. A full-text copy of the U.S. Debtors Closing report is available at no charge at: http://bankrupt.com/misc/ParmalatUSClosingReport.pdf About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. PARMALAT SPA: Trustee Seeks 3-Year Extension of Farmland Trust -------------------------------------------------------------- At the behest of Gerald K. Smith, as Trustee of the Farmland Dairies LLC Litigation Trust, the U.S. Bankruptcy Court for the Southern District of New York extended the life of the Trust for an additional three-year term, through and including April 12, 2011. Mr. Smith relates that Farmland Trust was created under a trust agreement between Farmland Dairies and Mr. Smith, in order to pursue certain claims previously held by Farmland. The Trust Agreement assigned the claims to Farmland Trust, and provided that the claims be liquidated and ultimately distributed to certain creditors as beneficiaries. According to Mr. Smith, Farmland Trust has already distributed US$36,126,269 to its beneficiaries, from claims that were previously liquidated. Farmland Trust is currently pursuing additional claims in 17 Italian courts as well as in the United States District Court for the Southern District of New York. Mr. Smith believes that the pending claims are meritorious, and will result in substantial recoveries for Farmland Trust. However, Mr. Smith maintains, resolution of those matters will take additional time. In order to ensure certain tax advantages, and out of an abundance of caution, Farmland Trust was established for a three-year term, Mr. Smith relates. The Trust Agreement provides that the three-year term, which will expire on April 12, 2008, may be extended for up to three years. Mr. Smith believes that an extension will not prejudice Farmland Trust's tax status. Mr. Smith states that he is aware of no reason for the Bankruptcy Court to deny the extension of Farmland Trust's three-year term. Mr. Smith reserves the right to seek an additional extension, if it becomes necessary and is in the best interest of Farmland Trust's beneficiaries. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. ========= C H I L E ========= EASTMAN KODAK: S&P Holds B+ Corporate Credit Rating --------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Eastman Kodak Co. to stable from negative. At the same time, S&P affirmed the ratings, including the 'B+' corporate credit rating. "The outlook change reflects our opinion that a near-term downgrade is unlikely," explained Standard & Poor's credit analyst Tulip Lim. Kodak has substantial liquid resources. Additionally, S&P believes that absent significant acquisitions or sharp earnings deterioration, leverage is not likely to increase in the near- term. S&P expects that the company's discretionary cash flow generation will improve this year because it will be making less cash restructuring payments than it did last year. S&P believes that Kodak may be starting to gain some traction with its digital business, reducing its exposure to the secular decline of its traditional products. The rating reflects Standard & Poor's concern about the company's earnings and cash flow prospects in light of the ongoing and rapid deterioration of its traditional consumer imaging business, the unproven long-term profit potential of its consumer digital imaging businesses, its still-meaningful cash restructuring costs, and its leveraged financial profile. Kodak's substantial cash balances, competitive positions in various digital imaging markets, some business diversity provided by the Graphic Communications Group, and our expectation that cash restructuring costs will subside in 2009, only partially offset these risks. Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. METHANEX CORP: Earns US$65.4 Million in 2008 First Quarter ---------------------------------------------------------- Methanex Corporation reported net income of US$65.4 million on net revenues of US$735.9 million for the first quarter of 2008, compared to net income of US$144.7 million on net revenues of US$673.9 million for the same quarter of 2007. Bruce Aitken, President and CEO of Methanex commented, "Our average realized price in the first quarter was $545 per tonne which resulted in another good quarter of earnings for our shareholders. Our earnings under this pricing environment would normally be higher, however, we sourced less of our sales from produced methanol during the first quarter and more from purchased methanol and this had an impact on our profitability. In addition, methanol pricing peaked in December and decreased through the first quarter and, as is typical in a decreasing methanol price environment, our sales margins on both produced and purchased methanol are impacted by inventory timing issues." Mr. Aitken added, "In the high methanol price environment of the last six months, we saw China moving from being a net importer to a net exporter, which we believe has been the most significant factor causing the methanol market to rebalance and methanol prices to decline. We have also seen some regional softness in demand in some derivatives, but globally we continue to observe that demand for methanol is healthy and the high energy price environment continues to underpin strong demand growth for new methanol demand in energy applications, particularly in DME and fuel blending in China." Mr. Aitken continued, "China has recently reverted to being a net importer and spot methanol prices are increasing. We are continuing to make good progress on our initiatives to source more gas in Chile and we recently agreed to terms on a gas supply arrangement in New Zealand which will allow us to switch production to one of our larger idle plants in the second half of the year." Mr. Aitken concluded, "Our strong cash generation in the first quarter continues to leave us in a strong financial position. With US$465 million cash on hand at the end of the quarter, a strong balance sheet and a US$250 million undrawn credit facility, we are well positioned to meet our financial commitments related to the Egypt methanol project, pursue opportunities to accelerate natural gas development in southern Chile, pursue opportunities to sponsor methanol demand in new energy applications, pursue other strategic growth initiatives, and continue to deliver on our commitment to return excess cash to shareholders." Vancouver-based Methanex Corp. (Toronto: MX) (NASDAQGM: MEOH) -- http://www.methanex.com/-- is a publicly-traded company engaged in the production, distribution, and marketing of methanol. The company's stock also trate on foreign securities market of the Santiago Stock Exchange in Chile under the trading symbol "Methanex." * * * Moody's Investor Services' credit ratings for the company's unsecured notes at Sept. 30, 2007, is Ba1. Moody's said the outlook is stable. =============== C O L O M B I A =============== GMAC LLC: Moody's May Further Cut B2 Rating After Review --------------------------------------------------------- Moody's Investors Service downgraded GMAC LLC's senior rating to B2 from B1; the rating remains on review for further possible downgrade. This action follows Moody's rating downgrade of ResCap LLC, GMAC's wholly-owned residential mortgage unit, to Caa1 from B2. The GMAC downgrade is based upon Moody's opinion that further operating weakness at ResCap poses risks to GMAC's capital position and liquidity that exceed previous estimates. In particular, Moody's believe that for ResCap to have continued access to debt capital, GMAC may be required to provide additional indications of support to the unit and that it is likely to do so. As noted in the ResCap related press release, ResCap faces significant near-term refinancing needs. GMAC has strategic significance to GM, as its exclusive provider of consumer incentive financing for nearly all of its brands, and as a provider of inventory floorplan loans to GM's dealer base. As a consequence, Moody's don't believe GMAC's owners intend to compromise the firm's credit profile to the point of weakening its ability to perform under its contractual asset origination and servicing obligations to GM. It is our belief, however, that the ResCap exposures that GMAC has accumulated to date, and may yet further accumulate, represent a risk concentration that could challenge the strength of the GMAC's credit standing. During its review, Moody's will examine GMAC's intentions for supporting ResCap through its difficulties, as well as the terms pertaining to any such support extension. Moody's considers GMAC's stand-alone strengths in its auto finance and insurance businesses to continue to provide support to its rating profile. Ratings downgraded and placed under review for further downgrade include: -- Issuer rating: to B2 from B1 -- Senior Unsecured: to B2 from B1 -- Preferred Stock: to Caa2 from Caa1 GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors Acceptance Corporation, is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and employs approximately 26,700 people worldwide. Cerberus Capital Management LP bought 51% GMAC LLC stake from General Motors Corp. on December 2006. Its Latin American operations are located in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. ================== C O S T A R I C A ================== SIRVA INC: Court Extends Confirmation Hearing for Two Days ---------------------------------------------------------- Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York has extended SIRVA, Inc.'s confirmation trial for two more days, reports The Wall Street Journal. The Confirmation Hearing, which commenced April 18, 2008, was scheduled to go for two days. However, Judge Peck added a couple more days to allow for more time, says the report. "I am deeply concerned about the fire-drill aspects of this bankruptcy case," Judge Peck told parties-in-interest present at the Hearing. Prior to April 18, the Debtors sought court approval to modify their Plan to address objections filed by certain Class 5 unsecured creditors who were slated to recover nothing under the Plan. However, the Official Committee of Unsecured Creditors said the changes require the Debtors to send its Plan back to creditors for voting, says Dow Jones Newswires. Due to continuing criticism at the Hearing, counsel for the Debtors, Marc Kieselstein, P.C., at Kirkland and Ellis LLP in Chicago, Illinois, had said the Debtors will withdraw the changes, and revert back to the original plan, Dow Jones reports. Plan Confirmation May be Further Delayed Judge Peck said he is unlikely to approve SIRVA's Prepackaged Joint Plan of Reorganization by April 30, 2008 -- the deadline imposed by LaSalle Bank, an agent for SIRVA's secured lenders, reports Tiffany Kary of Bloomberg News. "There must be a Plan B because you are not going to put a gun to my head to decide this by April 30," Judge Peck said. The judge asked the banks to extend the April 30 deadline to May 14, 2008. Representing LaSalle, Bojan Guzina, Esq., said the bank made a recommendation to the lenders to extend the financing to May 14. "We don't think it will be a problem and will be resolved early [this] week," Mr. Guzina told Bloomberg News. The Debtors' operations are funded through a securitization program from LaSalle. The funding gives the Debtors access to as much as US$182,500,000 at any time. The Debtors have US$9,000,000 in equity in the LaSalle securitization at present. LaSalle also has a US$19,000,000 priority claim from the Debtors. If the lenders decide to pull the financing, the Debtors may be forced to borrow more money under its exit loan, Bloomberg says. Parties Fight Over Reports Prior to the Confirmation Hearing, the Official Committee of Unsecured Creditors asked the Court to exclude from the record at the Hearing the Debtors' entity level liquidation analyses rebuttal report dated April 10, 2008. Under the Court-established deadlines for fact and expert discovery, parties were directed to exchange expert reports on April 4, 2008, and rebuttal expert reports by April 10. On April 10, the Debtors produced their Entity Level Liquidation Analyses Rebuttal Report. According to Committee counsel, Ilan D. Scharf, Esq., at Pachulski Stang Ziehl & Jones LLP, in New York, the Debtors' Rebuttal Report addresses the Debtors' contention that there is no recovery to unsecured Class 5 claims in a liquidation on an entity level. The reports filed by the Committee do not address liquidation at an entity level. Mr. Scharf argued that the Debtors' Rebuttal Report is nothing more than a new report delivered too late and a supplement to the Debtors' liquidation analysis dated April 5, 2008 -- and should, therefore, be excluded. The Committee pointed out that it is not a rebuttal report but an expert report that should have been produced on April 5. The Committee further maintained that the Court should exclude the Debtors' Rebuttal Report from the record because admission of the Report will prejudice the Committee. In response, the Debtors told Judge Peck that they had properly served their Rebuttal Report -- which addresses the Committee's challenges to substantive consolidation, as well as their expert reports' analysis of recoverable assets -- consistent with the Court's orders. The Debtors insisted that there are no grounds for prejudice against the Committee, much less "unfair prejudice" as required under Rule 403 of the Federal Rules of Evidence. The Debtors further asked the Court to (i) prohibit Triple Net Investments IX, LP, from producing new documents at the Confirmation Hearing, and (ii) to preclude the testimonies of Greg Rogerson and Anthony Calascibetta. According to the Debtors, the Court had ordered that document production be completed by April 4, 2008. Triple Net had told the Debtors that it will not produce documents until after it filed its objection to the Debtors' Plan last April 11, 2008. On behalf of the Debtors, Mr. Kieselstein told Judge Peck that Triple Net had waited until after its witnesses were deposed, and until three days before the Confirmation Hearing, to produce the documents pursuant to the Debtors' requests. In response to the Debtors' efforts to meet and confer, Triple Net had provided non-responsive answers, and refused to abide by its discovery obligations. According to Mr. Kieselstein, the documents that Triple Net produced on April 15, 2008, were an extremely limited subset of the materials the Debtors requested, and are not even materials which Mr. Rogerson will use for his testimony. The Debtors pointed out that Mr. Rogerson and Mr. Calascibetta should be precluded from offering testimony at the Confirmation Hearing, and Triple Net should not be permitted to introduce into evidence, rely on, or refer to, documents that are not timely produced. In reaction to the Debtors' contention, Triple Net informed Judge Peck that the Debtors did not provide any legal support to justify the exclusion of Mr. Calascibetta, who prepared a rebuttal expert report based on the Debtors' and the Committee's liquidation analyses. Triple Net's attorney, Robert E. Nies, Esq., at Wolff & Samson PC, in New York, said the documents relied upon by Mr. Calascibetta were the expert report of Philip E. Kruse of Alvarez & Marsal, and the deposition testimony of Daniel Mullin, chief accounting officer of SIRVA, Inc. All documents are in the Debtors' possession. Triple Net was under no obligation to reproduce the documents since Mr. Calascibetta's report was a rebuttal report. Mr. Nies insisted that the Debtors' request should be denied because Triple Net fully and completely responded to the Debtors' discovery requests, and the Debtors were not prejudiced by any of Triple Net's action, or inaction. Besides, Mr. Nies added, the Debtors failed to file a discovery motion to compel the production of the documents. Moreover, Triple Net asked the Court to exclude the testimony of Mr. Mullin, and to preclude the evidence presented on the Debtors' "creditor reliance" theory at the Confirmation Hearing. Mr. Nies argued that Mr. Mullin's testimony, and all testimonies concerning the Debtors' substantive consolidation, should be excluded because the Debtors' actions denied creditors a meaningful opportunity and sufficient time to acquire the information needed to assess the consolidation. The Debtors' creditor reliance theory, as a separate basis for substantive consolidation, has only been raised on the eve of the Confirmation Hearing, Mr. Nies maintained. Triple Net complained that it had been denied discovery concerning evidence to support or refute the theory. Additionally, Mr. Nies informed the Court that Mr. Mullin had professed no knowledge of any of the facts related to Debtors' schedules of assets and liabilities, in violation of Rule 602 of the Federal Rules of Evidence. The Debtors' Schedules are a critical component of any substantive consolidation analysis, he said. Debtors Talk Back The Debtors replied that they presented Mr. Mullin for deposition as the corporate representative on the substantive consolidation issue. Mr. Kieselstein argued that Triple Net had failed to inform the Court that Mr. Mullins had provided specific information based on his firsthand knowledge, and described how intercompany transactions are recorded. According to Mr. Kieselstein, Triple Net's arguments are devoid of legal support for its contention that the Debtors' Schedules are related to substantive consolidation, let alone a prerequisite for testimony about how accounting is conducted at SIRVA. Mr. Mullin is intimately familiar with the company's accounting systems and methods, the Debtors explained, and this familiarity provides the requisite personal knowledge to allow him to testify, under Rule 602 of the Federal Rules of Evidence. Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets : SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation solutions to a well-established and diverse customer base. The company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. The company has operations in Costa Rica. The company and 61 of its affiliates filed separate petitions for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis, L.L.P. is representing the Debtor. An official Committee of Unsecured Creditors has been appointed in this case. When the Debtors filed for bankruptcy, it reported total assets of US$924,457,299 and total debts of US$1,232,566,813 for the quarter ended Sept. 30, 2007. (Sirva Inc. Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) ================================== D O M I N I C A N R E P U B L I C ================================== BASIC ENERGY: Approves US$3 Billion Merger Deal with Grey Wolf ------------------------------------------------------------ Grey Wolf Inc. and Basic Energy Services Inc.'s boards of directors approved a definitive agreement to combine the two businesses in a "merger of equals". Based upon closing prices for each company's common stock as of April 18, 2008, the estimated enterprise value of the combined company would be approximately US$2.9 billion. The combined company will be named Grey Wolf Inc., have its corporate offices in Houston, establish incorporation in the state of Delaware and trade on the New York Stock Exchange under the symbol "GW". Under the terms of the agreement, Grey Wolf shareholders will receive US$1.82 in cash and 0.2500 shares of new Grey Wolf for each share of Grey Wolf they currently own. Based on this exchange ratio, each stockholder of Grey Wolf will receive one share of new Grey Wolf for each four shares of Grey Wolf in addition to the cash consideration. Basic Energy Services shareholders will receive US$6.70 in cash and 0.9195 shares of new Grey Wolf for each share of Basic Energy Services they currently own. The total number of shares outstanding of the combined company, which is reflective of the above exchange ratios applied to both companies' current shares outstanding, will be approximately 85 million shares. Pro forma net debt as of Dec. 31, 2007, will be approximately US$960 million. The combined company intends to dedicate a substantial amount of its free cash flow to the repayment of the debt while at the same time fully funding and implementing its significant, value- adding growth initiatives. The greater financial strength of the combined company will enable it to return approximately US$600 million in cash to the combined shareholder base while retaining financial flexibility to invest for future growth. The financing will be provided by affiliates of UBS Investment Bank and Goldman Sachs & Co. The cash was issued to the two sets of shareholders proportionate to pro forma ownership of the combined company, which will be approximately 54% owned by current Grey Wolf shareholders and 46% owned by current Basic Energy Services shareholders. The companies expect that the combination will create an organization with approximately 7,500 personnel, providing a range of drilling and oilfield well services. The combined company will have 395 well servicing and 130 drilling rigs well as other oilfield service assets, pro forma sales and EBITDA of approximately US$1,784 million and US$632 million. Pro forma sales for the full year ending Dec. 31, 2007, would be approximately 53% from contract drilling, 19% from well servicing, 15% from fluid services and 13% from completion and remedial services. Thomas P. Richards, current Grey Wolf chairman, president and CEO, will serve as Grey Wolf Inc.'s chairman after the merger. "This is an exciting opportunity for our shareholders, our customers and our people, Mr. Richards said. "Grey Wolf's premium land drilling rig fleet complements Basic Energy Service's premium land-based well servicing equipment. With approximately 50% of Basic Energy Service's business focused on oil and approximately 95% of Grey Wolf's business focused on natural gas, this transaction results in a company with a diversified revenue stream in terms of exposure to oil and gas opportunities, involvement through the life of the well from drilling to production to well abandonment and a very broad geographic coverage, all of which is consistent with our stated strategic goal. "We are confident that our valued customers will respond positively to this merger with the combined company's enhanced ability to satisfy their needs," Mr. Richards stated. "Grey Wolf has an outstanding management team, well as operational and support staff, which when combined with Basic Energy Services' organization, will produce a best-in-class team." Ken Huseman will serve as chief executive officer of Grey Wolf Inc. after the merger. "This combination achieves the goal of moving Basic Energy Services forward in achieving a size which allows the combined company to compete effectively for expansion opportunities anywhere in the world while continuing to build upon the existing footprint of both companies,' Mr. Huseman said. "The expanded operational capability of a more diversified company will produce significant benefits for our customers and provide substantial growth opportunities for our people." "In addition, the cash consideration allows us to provide each companies' shareholders with a meaningful financial return without unduly limiting the growth potential for the combined entity," Mr. Huseman added. "This is an ideal fit for the stakeholders in both companies." After the merger, Bob Proffit, current senior vice president, human resources of Grey Wolf, will assume the role of senior vice president, administration at the combined company and Spencer Armour, current senior vice president, corporate development of Basic Energy Services, will remain in the same role at the combined company. Operating level officers for both companies will continue in their current roles. The transaction is expected to close in the third quarter of 2008. Completion of the transaction is subject to shareholder approval at both Grey Wolf and Basic Energy Services, receipt of financing proceeds, regulatory approvals and other customary conditions.