T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, April 30, 2008, Vol. 9, No. 85 Headlines A R G E N T I N A EMPRESA DE TRANSPORTE: Trustee to Verify Claims Until May 22 GOMERIA LA BOUTIQUE: Proofs of Claim Verification Ends on July 7 PROYECTOS AUSTRALES: Trustee to Verify Claims Until Aug. 12 PUBLICIDAD ENRIQUE: Files for Reorganization in Court PUBLICIDAD SILVETTI: Files for Reorganization in Court RED HAT: Sees Growth in Brazil in Fiscal Year 2008 Ended Feb. 29 SEVITAR SACIF: Files for Reorganization in Buenos Aires Court SZWARCBERG HERMANOS: Claims Verification Deadline Is June 11 TALLERES INA: Trustee to File Individual Reports on Aug. 13 TELECOM ARGENTINA: Carlos Felices Resigns as President TRIOLA SRL: Trustee to File Individual Reports on Aug. 29 TYSON FOODS: Incurs US$5 Million Net Loss in 2008 Second Quarter * ARGENTINA: S&P's Outlook Change Won't Immediately Affect Firms B E R M U D A TYCO: Gets Required Consents on Bondholder Litigation Settlement YRC WORLDWIDE: Posts US$45.8 Million Net Loss in First Quarter YRC WORLDWIDE: Refinancing Risks Cue S&P to Confirm 'BB' Rating B O L I V I A COEUR D'ALENE: To Complete Palmarejo Project Feasibility Study B R A Z I L BANCO BRADESCO: Net Income Up 23.3% to BRL2.1 Billion in 1Q 2008 BANCO BRADESCO: Units Earn BRL746 Million in First Quarter 2008 BANCO BRADESCO: Forms Unit to Handle Credit Card Operations BANCO BRADESCO: Won't Enter Commercial Banking Segment Abroad BANCO NACIONAL: Supports Merger in Telecommunication Sector BANCO NACIONAL: To Provide Funding to Madeira Project Winner BETA SECURITIZADORA: Moody's Raises Global Scale Rating to Ba1 BLOCKBUSTER INC: Circuit Stockholder HBK Supports Merger Talks BLOUNT INT'L: Dec. 31 Balance Sheet Upside-Down by US$54 Million BRASKEM SA: May Sell US$500 Million Bonds Next Week COMMSCOPE INC: Cost Reduction Prompts Shutdown of Brazilian Fab GOL LINHAS: Board Approves First Quarter 2008 Dividends Payment HEXCEL CORP: Moody's Keeps Ba3 Corporate Family Rating PROPEX INC: Wants to Extend Exclusive Plan-Filing to Oct. 18 PROPEX: Wants Court to Extend Lease Decision Period to Aug. 15 SADIA SA: To Form Joint Venture With Kraft Foods TELEMAR NORTE: S&P Affirms BB+ Rating Over Brasil Telecom Merger TELE NORTE: Will List Preferred Shares in Telemar Norte on NYSE TELE NORTE: S&P Affirms BB+ Rating Over Brasil Telecom Merger UNSINAS SIDERURGICAS: Issues First Quarter 2008 Earnings Webcast C A Y M A N I S L A N D S BLACK BEAR: Will Hold Final Shareholders Meeting on May 2 BPI DIRECTORS: Will Hold Final Shareholders Meeting on May 2 CLEARWATER CAPITAL: Sets Final Shareholders Meeting for May 2 COUNTER MANAGEMENT: Sets Final Shareholders Meeting for May 2 KINETIC CONCEPTS: Earns US$68 Million in First Quarter 2008 KINETIC CONCEPTS: Moody's Rates Proposed US$1.3BB Loan at Ba1 KINETIC CONCEPTS: 2008 Shareholders' Meeting Scheduled on May 20 KINGSWAY PROPERTY: Sets Final Shareholders Meeting for May 2 KOYAH MICROCAP: Will Hold Final Shareholders Meeting on May 2 MIYAKODORI CAPITAL: To Hold Final Shareholders Meeting on May 2 ML OAK: Sets Final Shareholders Meeting for May 2 PEQUOT INDIA: Sets Final Shareholders Meeting for May 2 SUNDAY SILENCE: Sets Final Shareholders Meeting for May 2 TF CAPITAL: Will Hold Final Shareholders Meeting on May 2 YILONG MEDIA: Proofs of Claim Filing Deadline Is Today C H I L E BUCYRUS INT'L: Earns US$41.1 Million in Quarter Ended March 31 C O L O M B I A BANCOLOMBIA: Board Authorizes VP to Sell COP144 Million Shares BRIGHTPOINT INC: Subsidiary Acquires Hugh Symons Business GLOBAL CROSSING: Gets SAP Colombia/Brazil Hosting Certification C O S T A R I C A ALCATEL-LUCENT: Says Spectrum & Handsets to Help WiMax in LatAm SIRVA INC: Files Motion to Modify Plan Without Resolicitation US AIRWAYS: Sets Executive Incentive Plan Targets for 2008 US AIRWAYS: Reaches Tentative Three-Year Agreement With IAM US AIRWAYS: Pilots Opt for USAPA as Bargaining Agents D O M I N I C A N R E P U B L I C SMURFIT KAPPA: S&P Lifts Rating on Improved Operations to BB J A M A I C A NATIONAL WATER: Consumers Must Pay 28% More for Water M E X I C O AMERICAN AXLE: Posts US$27 Million Net Loss in 1Q 2008 CLEAR CHANNEL: Set to Release 1st Quarter 2008 Results on May 9 CLEAR CHANNEL: Further Extends Offers' Expiration Date to May 2 EMPRESAS ICA: Ties Up With Alstom & Carson for Project Bid FRONTIER AIRLINES: Trustee Appoints Seven-Member Creditors Panel GRUPO CASA: Net Income Up 13% to MXN191.61MM in 1st Quarter 2008 GRUPO TMM: Posts US$10.3 Mil. Net Loss in Quarter Ended March 31 INGRAM MICRO: Unveils Global Restructuring Plan, 1Q '08 Results SHARPER IMAGE: Allowed to Employ Weil, Gotshal as Attorney SHARPER IMAGE: Committee Wants to Retain Cooley as Lead Counsel SHARPER IMAGE: Committee Wants to Retain Loughlin as Advisor SHARPER IMAGE: Committee Wants to Retain Whiteford as Counsel THERMADYNE HOLDINGS: Earns US$4 Million in Quarter Ended Dec. 31 U.S. STEEL: R. Beltz Named as North-Am Flat-Rolled Marketing GM VITRO SAB: Books US$30MM Consolidated Net Income in 1Q 2008 VITRO SAB: Fitch Holds B Foreign & Local Issuer Default Ratings P A N A M A TITAN PETROCHEMICAL: S&P Cuts Rating to B on Weak Performance P E R U GLOBAL CROSSING: Launches VSAT Satellite Platform in Peru P U E R T O R I C O CELESTICA INC: S&P Changes Outlook to Stable; Holds 'B+' Ratings DELPHI CORP: Ch. 11 Exit to be Delayed for Months, GM Chief Says DELPHI CORP: To Seek US$4.1B Loan Refinancing, Adjusts Forecasts DELPHI CORP: Wants to Obtain US$650 Million Credit from GM DIRECTV GROUP: Launches Prepaid Television Service in Chile FORD MOTOR: Shareholder Tracinda Offers to Buy 20MM Ford Stake FORD MOTOR: Inks Master Economics Offer Agreement with CAW MICRON TECHNOLOGY: S&P Holds 'BB-' Rating on Ample Liquidity U R U G U A Y COOPERATIVA DE AHORRO: Fitch Revises Stable Outlook to Positive FEDERACION URUGUAYA: Fitch Affirms Issuer Default Ratings at B HSBC BANK (URUGUAY): Solid Structure Cues Fitch to Hold BB+ Rtg. V E N E Z U E L A GOODYEAR TIRE: Earns US$147 Million in 2008 First Quarter PETROLEOS DE VENEZUELA: Not Transparent, Report States - - - - - ================= A R G E N T I N A ================= EMPRESA DE TRANSPORTE: Trustee to Verify Claims Until May 22 ------------------------------------------------------------ Wexler, Ramos y Cia. -- the court-appointed trustee for Empresa de Transporte Automotor Cruz Alta S.R.L.'s reorganization proceeding -- will be verifying creditors' proofs of claim until May 22, 2008. Wexler, Ramos, will present the validated claims in court as individual reports on July 8, 2008. The National Commercial Court of First Instance in San Miguel de Tucuman, Tucuman, 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 Empresa de Transporte 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 Empresa de Transporte's accounting and banking records will be submitted in court on Aug. 14, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 25, 2009. The debtor can be reached at: Empresa de Transporte Automotor Cruz Alta S.R.L. Avenida Brigido Teran 250, San Miguel de Tucuman Tucuman, Argentina The trustee can be reached at: Wexler, Ramos y Cia. 24 de Septiembre 754, San Miguel de Tucuman Tucuman, Argentina GOMERIA LA BOUTIQUE: Proofs of Claim Verification Ends on July 7 ---------------------------------------------------------------- Mauricio Leon Brauer, the court-appointed trustee for Gomeria La Boutique SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 7, 2008. Mr. Brauer will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 2, 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 Gomeria La 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 Gomeria La Boutique's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates of the reports. Mr. Brauer is also in charge of administering Gomeria La Boutique's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Gomeria La Boutique SA Maipu 4001 Buenos Aires, Argentina The trustee can be reached at: Mauricio Leon Brauer Sarmiento 2593 Buenos Aires, Argentina PROYECTOS AUSTRALES: Trustee to Verify Claims Until Aug. 12 ----------------------------------------------------------- Susana Achelli, the court-appointed trustee for Proyectos Australes SRL's reorganization proceeding, will be verifying creditors' proofs of claim until Aug. 12, 2008. Ms. Achelli will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 48, 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 Proyectos Australes 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 Proyectos Australes' accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on May 26, 2009. The debtor can be reached at: Proyectos Australes SRL San Martin 1009 Buenos Aires, Argentina The trustee can be reached at: Susana Achelli Montevideo 571 Buenos Aires, Argentina PUBLICIDAD ENRIQUE: Files for Reorganization in Court ----------------------------------------------------- Publicidad Enrique C. Silvetti S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Publicidad Enrique 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: Publicidad Enrique C. Silvetti S.A. Paraguay 755 Buenos Aires, Argentina PUBLICIDAD SILVETTI: Files for Reorganization in Court ------------------------------------------------------ Publicidad Silvetti S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Publicidad Silvetti 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. RED HAT: Sees Growth in Brazil in Fiscal Year 2008 Ended Feb. 29 ---------------------------------------------------------------- Red Hat Inc.'s Brazilian unit saw growth in all its business units, including sales, support, development, and consultancy, during the fiscal year 2008 that ended on Feb. 29, 2008, Business News Americas reports. The growth is due to the increase of local staff, the penetration of customers' core business, and focus on clients and partners, BNamericas says, citing Red Hat Brasil. According to Red Hat, the company was most mentioned as the most adequate provider of open source solutions in Brazil, with a 46% share of the servers market and 43% in the overall market, as indicated in the survey "Investment trends in the use of open source among Brazilian companies," by the Instituto Sem Fronteiras. The survey polled 1,000 firms from various industries of different sizes. Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported in the Troubled Company Reporter-Latin America on April 2, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Red Hat Inc. to 'BB-' from 'B+'. S&P said the outlook is stable. SEVITAR SACIF: Files for Reorganization in Buenos Aires Court ------------------------------------------------------------- Sevitar S.A.C.I.F. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Sevitar 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: Sevitar S.A.C.I.F. Corrientes 1585 Buenos Aires, Argentina SZWARCBERG HERMANOS: Claims Verification Deadline Is June 11 ------------------------------------------------------------ Susana Raquel Manrique, the court-appointed trustee for Szwarcberg Hermanos S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 11, 2008. Ms. Manrique will present the validated claims in court as individual reports on Aug. 20, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Alemani Italo 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 Szwarcberg Hermanos' accounting and banking records will be submitted in court on Oct. 1, 2008. Ms. Manrique is also in charge of administering Szwarcberg Hermanos' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Susana Raquel Manrique Lavalle 1675 Buenos Aires, Argentina TALLERES INA: Trustee to File Individual Reports on Aug. 13 ----------------------------------------------------------- Alicia Mabel Orinov, the court-appointed trustee for Talleres Ina SACIF's bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Aug. 13, 2008. Ms. Orinov will be verifying creditors' proofs of claim until June 17, 2008. She will submit to court a general report containing an audit of Talleres Ina's accounting and banking records on Sept. 25, 2008. Ms. Orinov is also in charge of administering Talleres Ina's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Talleres Ina SACIF Sarmiento 983 Buenos Aires, Argentina The trustee can be reached at: Alicia Mabel Orinov Oliden 3688 Buenos Aires, Argentina TELECOM ARGENTINA: Carlos Felices Resigns as President ------------------------------------------------------ Argentine news daily Clarin reports that Telecom Argentina SA's President Carlos Felices has filed his resignation. According to Business News Americas, Mr. Felices reported said he could no longer tolerate the "improper instructions" coming from major shareholder Telecom Italia. As reported in the Troubled Company Reporter-Latin America on Oct. 18, 2007, the Argentine government created a two-person board at Telecom Argentina to check whether Spanish firm Telefonica's purchase of a stake in Telecom Italia affects competition and whether the acquisition would lead to Telefonica having undue influence on the decisions of Telecom Argentina, which Telecom Italia controls. A consortium of Italian companies and Telefonica reached an accord on April 28, 2007, to indirectly acquire a 23.6% controlling stake in Telecom Italia. Telecom Italia owns 50% of Sofora, Telecom Argentina's controller. Local investment group Grupo Werthein, Telecom Argentina's second biggest shareholder, claimed that Telefonica would eventually have an impact on Telecom Argentina. Comision Nacional asked Spanish telecommunications firm Telefonica, Telefonica de Argentina's parent firm, for additional documentation on its acquisition of a controlling stake in Telecom Italia. BNamericas relates that Telecom Italia forced Telecom Argentina officials to detract from their original statements made to an Argentine oversight committee. Werthein then filed a suit for coercion with the penal courts and sent a copy to the antitrust agency CNDC. The report says Telecom Italia is trying to convince the CNDC that Telefonica won't influence any decisions for Telecom Argentina. The Telecom Argentina board will appoint a new president to take Mr. Felices' place. The next Telecom Argentina president could be lawyer Enrique Garrido, who had said that Telefonica's purchase of Telecom Italia wouldn't affect operations at Telecom Argentina, Clarin states, citing sources. Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone-related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. As of Dec. 31, 2006, its telephone system included approximately 4.09 million lines in service. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program France Telecom sold its part of Telecom Argentina to the WertheinGroup, an Argentine agricultural concern owned in part by vice chairman Gerardo Werthein. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia group (50%) -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Fitch Ratings upgraded Telecom Argentina's foreign and local currency issuer default ratings to 'B+' from 'B'. Fitch said the outlook is positive. TRIOLA SRL: Trustee to File Individual Reports on Aug. 29 --------------------------------------------------------- Ernesto Bermann, the court-appointed trustee for Triola S.R.L.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Aug. 29, 2008. Mr. Bermann will be verifying creditors' proofs of claim until July 2, 2008. He will submit to court a general report containing an audit of Triola's accounting and banking records on Oct. 8, 2008. Mr. Bermann is also in charge of administering Triola's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Triola SRL Triunvirato 4500 Buenos Aires, Argentina The trustee can be reached at: Ernesto Bermann Cordoba 817 Buenos Aires, Argentina TYSON FOODS: Incurs US$5 Million Net Loss in 2008 Second Quarter ---------------------------------------------------------------- Tyson Foods Inc. posted a net loss of US$5 million for the three months ended March 29, 2008, compared to net income of US$68 million for the three months ended March 31, 2007. The company's second quarter 2008 sales were US$6.6 billion compared to US$6.5 billion for the same period last year. Operating income for the second quarter of fiscal 2008 was US$44 million compared to US$158 million for the same quarter of 2007. "Our second quarter results show the strength of a diversified protein business model," said Richard L. Bond, president and chief executive officer of Tyson Foods. "We continue to believe the second fiscal quarter should be our most challenging, and we are pleased with our results. "Our Pork segment did very well, delivering its best January- March quarter ever," Mr. Bond said. "Our Beef segment improved $74 million over the first quarter of this fiscal year, or approximately $100 million excluding plant closing and asset impairment charges. The Chicken segment suffered losses due to significantly higher and volatile input costs. Our chicken and pork exports continue to be strong, and we are moving forward with our strategy for international expansion. "Looking forward to the third quarter, the Beef segment should continue its improvement due to the start of grilling season and the encouraging news South Korea will resume imports of U.S. beef next month," Mr. Bond said. "The Pork segment should do well again, although not as well as the second quarter. In the Chicken segment, we anticipate an additional $100 million of increased grain costs over the second quarter, offset in part by operational improvements, pricing and risk management activities. For the year, corn and soybean meal increases are likely to approach $600 million. Including other inputs such as cooking oil, breading and other feed ingredients, the increase in costs for the fiscal year may approach $1 billion compared to fiscal 2007." Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company makes a wide variety of protein-based and prepared food products at its 123 processing plants. Tyson has approximately 114,000 Team Members employed at more than 300 facilities and offices in 26 states and 80 countries. Tyson's U.S. beef plants are located in Amarillo, Texas; Dakota City, Nebraska; Denison, Iowa; Finney County, Kansas; Joslin, Illinois, Lexington, Nebraska and Pasco, Washington. The company also has a beef complex in Canada, and is involved in a vertically integrated beef operation in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on April 8, 2008, Moody's Investors Service confirmed Tyson Foods, Inc.'s corporate family rating and probability of default rating at Ba1. Moody's said the rating outlook remains negative. * ARGENTINA: S&P's Outlook Change Won't Immediately Affect Firms ---------------------------------------------------------------- Standard & Poor's Ratings Services said that the change in the outlook on the sovereign rating on the Republic of Argentina (to negative from stable) will not immediately affect ratings on Argentine corporate entities. Argentina corporate ratings have been heavily influenced by S&P's view of significant risks in the economic and business environment, which S&P refers to broadly as country risk. Although S&P perceives that country risk in Argentina has lessened somewhat in the past year, the rating agency believes its ratings in the sector already incorporate these uncertainties. Nevertheless, a continued increase in country risk could lead us to review ratings in the sector. Country risk is a broader concept that incorporates all the factors, including sovereign risk, that influence a company's ability to meet all of its financial obligations in a timely manner. In addition to the government's financial and economic health, country risk includes the country's institutional environment, the current regulatory framework, the health and depth of the country's financial system, the availability of capital (human and physical), the volatility of economic cycles, the development of financial markets, fiscal and labor laws, bankruptcy regulations, and the like. All these factors have a certain level of influence on a private entity's financial health, and their final weight varies according to each company's specific circumstances. A country's institutional, regulatory, and legal frameworks are core issues because they intrinsically condition long-term development. The revision of the outlook on the sovereign to negative was based on S&P's concerns that rising inflation expectations and distortions in the economy through price controls, subsidies, and regulation could hurt growth prospects now that Argentina's output gap has narrowed. ("Outlook On Argentina 'B+' Rtg Revised To Negative As Econ Minister Resigns On Concerns On Outlook," published on April 25, 2008) The variables that continue to affect S&P's assessment of country economic and business risk are a weak institutional environment, a changing regulatory framework, inability to forecast future business conditions, discredited economic statistics produced by the government particularly price indexes, and the potential impact of energy shortages. ============= B E R M U D A ============= TYCO: Gets Required Consents on Bondholder Litigation Settlement ----------------------------------------------------------- Tyco International Ltd. had received, as of 5:00 p.m. New York time, on April 28, 2008, consents from the holders of a majority in principal amount of each series of outstanding notes issued under the company's 1998 and 2003 indentures, in connection with the previously announced consent solicitations for such notes. As a result of the receipt of the requisite consents, and based on the waiver of any alleged defaults or events of default that may have arisen prior to April 11, 2008 contained therein, the company intends to promptly take all action necessary to dismiss the proceeding entitled The Bank of New York vs. Tyco International Group S.A. pending in the United States District Court for the Southern District of New York. In addition, the company will enter into supplemental indentures to effect the proposed amendments, substantially as described in the consent solicitation and exchange offer documents dated April 11, 2008, with the trustee under each indenture. The proposed amendments include a covenant providing noteholders with the right to require the company and Tyco International Finance S.A., the co- obligor of the notes, to repurchase the notes at a fixed price in the event of certain change of control transactions. In addition, holders of 96% of 7% notes due 2028 and 97% of 6.875% notes due 2029 issued by the company and Tyco International Finance SA have validly tendered their notes in exchange for new notes with maturities in 2019 and 2021, respectively. Tyco International expects that the supplemental indentures will become effective, and that it will pay the consent fees due in connection with the transaction, promptly following final dismissal of the bondholder litigation. The exchange offer will close simultaneously with the consent solicitations. In accordance with the terms of the Offer Documents, delivered consents may no longer be revoked and tendered notes may no longer be withdrawn, unless the exchange offers and the consent solicitations are terminated in accordance with the Offer Documents. In addition, the company and Tyco International Finance are extending the Consent Date for noteholders to submit their consents. The new consent date is 5:00 p.m. New York City time, on May 12, 2008, subject to further extensions. Consent Solicitation Results as of 5:00 p.m. New York time, April 28, 2008: Consents Notes Tendered for Exchange --------------------------------------------------------------- 7% notes due 2028 98% 96% 6.875% notes due 2029 98% 97% 6% notes due 2013 98% Not Applicable 6.375% notes due 2011 96% Not Applicable 6.75% notes due 2011 97% Not Applicable 6.125% notes due 2009 95% Not Applicable 6.125% notes due 2008 88% Not Applicable Based in Pembroke, Bermuda, Tyco International Ltd. (NYSE: TYC) -- http://www.tyco.com/-- provides security, fire protection and detection, valves and controls, and other industrial products and services to customers in four business segments: Electronics, Fire & Security, Healthcare, and Engineered Products & Services. With 2007 revenue of US$18 billion, Tyco employs approximately 118,000 people worldwide. In Latin America, Tyco has presence in Argentina, Brazil, Chile, Costa Rica, Ecuador, Honduras, and the Bahamas. Effective June 29, 2007, Tyco International Ltd. completed the spin-offs of Covidien and Tyco Electronics, formerly its Healthcare and Electronics businesses, respectively, into separate, publicly traded companies in the form of a distribution to Tyco shareholders. * * * As reported in the Troubled Company Reporter on Dec. 21, 2007, in its annual report for the year ended Sept. 28, 2007, Tyco said that on Nov. 8, 2007, The Bank of New York delivered to the company a notice of events of default. The notice claims that the actions taken by the company in connection with its separation into three public entities constitute events of default under certain indentures. YRC WORLDWIDE: Posts US$45.8 Million Net Loss in First Quarter -------------------------------------------------------------- YRC Worldwide Inc. reported a first quarter 2008 loss of US$45,875,000 on operating revenue of US$2,232,592,000. This compares to a net income of US$1,279,000 on operating revenue of US$2,328,342,000 for the three months ended March 31, 2007. The company also said that the results included the previously announced reorganization charges related to USF Holland and USF Reddaway and losses on property disposals. The results also included unfavorable actuarial adjustments primarily related to prior-year development of self-insurance claims. At March 31, 2008, the company had total assets of US$5,011,025,000 and total debts of US$1,174,510,000. "The soft economy, severe winter weather and record fuel prices created a very difficult operating environment in the first quarter," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "With that said, we have taken a number of actions that address the areas within our control and we are seeing benefits from those efforts. Despite the macroeconomic challenges that we are facing, we believe that we have turned the corner and expect meaningful earnings improvement starting with the current quarter," Zollars continued. Although the practice of providing earnings guidance was suspended in 2007, due in great part to uncertainty in the economy, which remains difficult to predict, the company determined that investors should be provided with additional near-term clarity regarding the anticipated performance of YRCW. Based upon the internal actions the company has already implemented, including securing a more competitive labor contract, renewing its credit agreement, and making footprint changes at YRC Regional Transportation, YRCW expects to earn between US$.30 and US$.40 per share in the second quarter, which ends June 30, 2008. "Given our solid action plans and the momentum that is underway, we are excited about the future of YRC and what we can do for our customers, employees and investors," stated Zollars. Segment Information Key segment information for the first quarter 2008 included: * YRC National Transportation LTL revenue per hundredweight up 6.3% from first quarter 2007 and LTL tonnage per day down 8.9% * YRC Regional Transportation LTL revenue per hundredweight up 5.4% compared to last year and LTL tonnage per day down 10.1% * YRC Logistics revenue and operating income consistent with last year despite the weak economy About YRC Worldwide YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. The company has subsidiaries in Bermuda, the United Kingdom, Netherlands, Singapore, Hong Kong and Mexico. YRC WORLDWIDE: Refinancing Risks Cue S&P to Confirm 'BB' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its ratings on YRC Worldwide Inc., including the 'BB' corporate credit rating, and removed the ratings from CreditWatch, where they had been placed with negative implications on Feb. 21, 2008. The outlook is negative. The ratings had been placed on CreditWatch because of heightened concerns over the company's refinancing risk, earnings performance, and liquidity position over the next year, given the slowing U.S. economy and continuing pressures in the trucking sector. "The company has since obtained an amendment to its credit facility that allows additional covenant relief, and has renewed its 364-day asset-backed security facility, which was due to expire on May 16, 2008," said Standard & Poor's credit analyst Anita Ogbara. YRC has meaningful debt maturities over the next year and expects to use some combination of free cash flow, refinancing, and capacity under its amended bank facility to meet these maturities. "We believe the additional covenant relief provides sufficient room and expect the company to remain in compliance with its covenants," the analyst added. At the same time, Standard & Poor's lowered its issue-level rating on Yellow Corp.'s unsecured debt to 'B+' from 'BB' (two notches lower than the corporate credit rating on YRC Worldwide Inc.). S&P assigned a recovery rating of '6' to this debt, indicating the expectation for negligible (0-10%) recovery in the event of a payment default. The issue-level rating on the now partly secured notes at Roadway LLC is unchanged at 'BB'. S&P assigned a recovery rating of '4' to this debt, indicating the expectation for average (30%-50%) recovery. YRC is the largest less-than-truckload trucking company in North America, generating US$9.6 billion in annual revenues. YRC competes with large LTL companies Arkansas Best Corp. (US$1.8 billion in revenue) and Con-Way Inc. (US$4.2 billion in revenue) and with numerous smaller long-haul and regional LTL companies. Conditions in the trucking sector have deteriorated over the past several quarters and will likely not improve materially over the near term, given the weaker U.S. economy. YRC has pursued selective acquisitions in the past that have helped the company gain market share and increase its product offering. However, these acquisitions have stretched the company's financial profile, and YRC has not yet rationalized these acquired LTL operations. To improve profitability, YRC plans to streamline operations, reduce overhead, and manage costs more effectively. YRC has formalized plans to improve financial performance and is targeting US$100 million in cost savings over the next few quarters through the combination of terminal rationalization, elimination of redundant activities, and other cost reductions. S&P expects YRC's financial results to improve by early 2009 in response to various operating initiatives and as the freight environment improves. S&P could lower the ratings if financial results do not improve and the expected improvement in credit protection measures fails to materialize or if access to liquidity becomes constrained. S&P could revise the outlook to stable if YRC's credit metrics return to expected levels, and the improvement appears sustainable. YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. The company has subsidiaries in Bermuda, the United Kingdom, Netherlands, Singapore, Hong Kong and Mexico. ============= B O L I V I A ============= COEUR D'ALENE: To Complete Palmarejo Project Feasibility Study -------------------------------------------------------------- Coeur d'Alene Mines Corp.'s Chief Financial Officer Mitchell Krebs told Business News Americas that the firm wants to complete in June a feasibility study for its Palmarejo silver- gold project in Chihuahua, Mexico. The study will include the first proven and probable reserves estimate for the Palmarejo deposit, BNamericas says, citing Ms. Krebs. According to BNamericas, "Palmarejo's measured and indicated resources stand at 88.7 million ounces of silver and one million ounces of gold, with additional inferred resources of 61.4 million ounces of silver and 700,000 ounces of gold. The current mine plan foresees a commercial production rate of 4,500 tons per day throughput, with annual output of nearly 10.4 million ounces of silver and 115,000 ounces of gold at cash costs, net of gold byproduct, of negative US$0.41 per ounce of silver." Ms. Krebs told BNamericas that before Coeur d'Alene acquired the Palmarejo project, processing equipment with a capacity of 6,000 tons per day -- including ball mills and sag mills -- were bought. "So we will have about 1,500 tons per day of excess capacity that we will hopefully take up with added production from the other nearby deposits, like Guadalupe and La Patria. Hopefully, although not immediately, but in the first couple of years of production, we can bump production from 4,500 tons per day up to 6,000 tons per day," Ms. Krebs commented. The Palmarejo project will be "in commercial production" at 4,500 tons per day by 2009, with about 2,500 tons per day coming from the open pit and 2,000 tons per day coming from underground, BNamericas says, citing Ms. Krebs. "Capital expenditures to get Palmarejo into commercial production are estimated at US$225 million," Ms. Krebs told BNamericas. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's Ratings Services B- rating. =========== B R A Z I L =========== BANCO BRADESCO: Net Income Up 23.3% to BRL2.1 Billion in 1Q 2008 ---------------------------------------------------------------- Banco Bradesco presented its main figures for the first quarter of 2008. The Report on Economic and Financial Analysis containing the complete Financial Statements is available on the investor relations Web site http://www.bradesco.com.br/ir Highlights: -- Net Income in the first quarter 2008 stood at BRL2.102 billion (up 23.3% in relation to the net income of BRL1.705 billion in the same quarter of 2007), corresponding to EPS of BRL0.68 and return of 32% on Average Shareholders' Equity. -- Net Income comprised BRL1.356 billion from financial activities, which accounted for 65% of the total, and BRL746 million from insurance, private pension plan and certificated savings plan activities, which accounted for 35% of Net Income. -- Market capitalization grew by 12.1% compared to first quarter 2007, reaching BRL93.631 billion in March 2008 (BRL104.959 billion on April 25, 2008). -- The balance of total assets in March 2008 stood at BRL355.517 billion, an increase of 26.1% in relation to March 2007. Annualized return on average total assets was 2.4%, versus 2.5% in the same period of 2007. -- The total loan portfolio grew to BRL169.408 billion, 38.5% higher than a year ago. Loans to individuals totaled BRL62.226 billion (up 34.3%), while operations with corporate clients totaled BRL107.182 billion (up 41%). -- The sum of funds raised and managed was BRL506.805 billion, an increase of 24.5% from the BRL406.970 billion in March 2007. -- Shareholders' Equity was BRL32.909 billion in the first quarter of 2008, an increase of 26.4% versus first quarter 2007. The Capital Adequacy Ratio stood at 13.9%. -- Remuneration to shareholders in the period in the form of interest on shareholders' capital paid and provisioned totaled BRL740 million, equivalent to 35.2% of Net Income of the same quarter. -- The Efficiency Ratio in 12 months stood at 41.7%, an improvement compared to the 42.1% in March 2007. -- In the first quarter 2008, investments in infrastructure, information technology and telecommunications amounted to BRL573 million, up 20.6% million in relation to the first quarter of 2007. -- Taxes and contributions, including social security, paid or provisioned in the period, stemming from the main activities developed by Bradesco Organization, totaled BRL1.697 billion, equivalent to 80.7% of Net Income. -- Banco Bradesco has Brazil's largest private customer service network, with 3,169 branches, 26,735 ATMs in the Bradesco Dia&Noite (Day&Night) Network, 4,221 ATMs in the Banco24Horas (24HourBank) Network, 12,381 Bradesco Expresso outlets, 5,851 Postal Bank branches, 2,825 corporate site branches and 357 branches of Finasa Promotora de Vendas. -- On Jan. 21, Grupo Bradesco de Seguros e Previdencia, through Bradesco Seguros S.A., entered into a "Quotas Assignment Agreement" with Marsh Corretora de Seguros Ltda., with a view to acquiring control of Mediservice - Administradora de Planos de Saude Ltda. The transaction represents an important strategic step that will allow for expanding the client base with scale gains. -- On March 6, Banco Bradesco BBI S.A. entered with the shareholders of Agora Corretora de Titulos e Valores Mobiliarios S.A., into a "Private Instrument of Commitment of Merger of Shares and Other Covenants", aiming at the acquisition of its total capital. Agora Corretora is Brazil's largest brokerage firm in online purchase and sale transactions of shares to individuals (home broker), with around 29,000 active clients. The operation is subject to the approval by the respective government agencies and to the due diligence results. -- On March 27, Brazil's Central Bank (BACEN) approved: (i) the increase in the Capital Stock in the amount of BRL1.2 billion, from BRL19 billion to BRL20.2 billion, through the subscription of new shares introduced at the Special Shareholders' Meeting held on Jan. 4, 2008, and ratified at the Special Shareholders' Meeting held on March 24, 2008; and (ii) an increase in the capital stock in the amount of BRL2,8 billion, from BRL20.2 billion to BRL23 billion, with a 50% stock bonus, through the capitalization of part of the balance in the "Profit Reserve - Statutory Reserve" account, as resolved at the Special Shareholders' Meeting held on March 24, 2008. -- Banco Bradesco is the Brazilian bank with the best placement in the ranking of the world's 2,000 largest companies, ranking 85th, according to Forbes, one of the most respected international economy, finances and businesses magazines. -- Regarding Social Responsibility, for more than 50 years, Fundacao Bradesco has been dedicated to educating low- income children, adolescents and adults. Since its creation, the foundation has provided free and high- quality education to some 2 million students, with this figure rising to 2.5 million once the distance-learning programs are included. With an estimated budget of BRL220.069 million, this year Fundacao Bradesco will be able to provide assistance on more than 411,000 occasions in the many segments in which it operates. Among the people assisted, 110,415 students will have free high- quality education. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO BRADESCO: Units Earn BRL746 Million in First Quarter 2008 --------------------------------------------------------------- Banco Bradesco SA's insurance, private pension, and savings bond businesses' net profit increased 41.0% to BRL746 million in the first quarter this year 2008, compared to the same period in 2007, Business News Americas reports. According to Banco Bradesco, the units' return on equity increased to 37.8% in the first quarter 2008, compared to 33.0% in the first quarter 2007, while equity rose 26.2% year-on-year to BRL9.15 billion. BNamericas relates that the units' operating income grew 47.7% to BRL1.07 billion in the first quarter 2008, from the first quarter 2007. Their financial income rose 9.75% to BRL698 million. The report says that claims paid rose 14.8% to BRL1.64 billion in the first quarter 2008, compared to the same period last year, and the combined ratio improved to 83.9% from 85.1%. BNamericas notes that insurance, private pension, and savings bonds contributed 35% to Banco Bradesco's "bottom line," which increased 23.3% to BRL2.10 billion in the first quarter 2008, compared to the same period in 2007. The insurance divisions accounted for 39% of Banco Bradesco's recurring net income, which rose 11.8% to BRL1.91 billion in the first quarter 2008, from the first quarter 2007, BNamericas states. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO BRADESCO: Forms Unit to Handle Credit Card Operations ----------------------------------------------------------- Banco Bradesco SA's Chief Executive Officer Marcio Cypriano told journalists that the bank has created a unit to handle credit card operations. Business News Americas relates Banco Bradesco's Vice President Milton Vargas said that the bank saw the need to form a subsidiary because credit card lending increased "significantly with the March 2006 acquisition of Amex in Brazil and growing private label operations with retailers." "It's important to have a separate credit card company to get a hold on the strong growth in this segment," Mr. Vargas commented to BNamericas. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO BRADESCO: Won't Enter Commercial Banking Segment Abroad ------------------------------------------------------------- Banco Bradesco SA's Chief Executive Officer Marcio Cypriano told journalists that the bank won't venture into the commercial banking segment outside Brazil. Banco Bradesco will stick to the local market and "ride the current wave of continued lending growth," reporters say, citing Mr. Cypriano. Mr. Cypriano commented to Business News Americas, "We wouldn't risk going abroad, not in the short or medium-term. The opportunities for growth in Brazil are still really big." According to BNamericas, Mr. Cypriano said that Banco Bradesco launched a broker dealer in London in 2007, which "has done well and stirred the bank to move forward with plans to open an office in Asia." The current increase in lending in Brazil will continue as higher salaries encourage more loans and economic stability lets firms to make investments, Mr. Cypriano added. "A long-standing demand for consumer loans is now beginning to be met" with people making higher salaries, BNamericas says, citing Mr. Cypriano. The report says that Mr. Cypriano sees retail loan growth in the banking sector at large to slow down slightly compared to 2007. Mr. Cypriano commented to BNamericas, "Growth in both loans to SMEs [small and medium-sized enterprises] and large corporates means companies are investing and they believe in economic growth. Despite a recent increase in interest rates, no company [polled by Bradesco's economic research department] has stopped making investments." Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO NACIONAL: Supports Merger in Telecommunication Sector ----------------------------------------------------------- The management of the Banco Nacional de Desenvolvimento Economico e Social's equity arm, BNDES Participac�es S.A. a.k.a. BNDESPAR, approved its support to Telemar Participa��es S/A corporate reorganization in the amount of BRL2.569 billion. �The shareholding reorganization will be critical for the merger of two operators, Oi and Brasil Telecom, which will result in the setup of a minimum efficient-scale group, delivering aligned business strategy, growth capacity, and large enough to compete internationally in the telecommunication sector�, said BNDES President, Luciano Coutinho. �Additionally, a new competitor providing a nationwide integrated network in mobile telephoning and data transmission, increasing competition in the Brazilian market, for the benefit of consumers and users. That will obviously depend on the approval of regulatory changes by Anatel, after a long process of public hearing and discussions with society�, said Mr. Coutinho. BNDES, through BNDESPAR, holds shares in that company since it was setup, in 1999, outcome of Telebr�s group privatization. As a partner of this enterprise, BNDES supports its reorganization process. The bank�s support, then, is a typical operation of BNDESPAR�s equity share management process. At the end, BNDES� equity arm will hold 16.89% of the company's capital stock, smaller than the current 25%. Also, the Bank's participation in the operation is an opportunity for valuation and generation of liquidity for the company and consequently for BNDESPAR�s investment. �As it consist in a variable income operation, we will not use funds from Fundo de Amparo do Trabalhador (Workers' Assistance Fund), nor other institutional funding sources in Telemar�s corporate reorganization process. This support, thus, will not impair BNDES� credit capacity for new infrastructure and industry investment projects. BNDESPAR�s goal is to strengthen Brazilian companies, their capacity to grow, innovate and improve their management style�, Mr. Coutinho stressed. The reorganization �- The operation will result in the withdrawal of three shareholding groups from the holding, Asseca (GP Investimentos), Lexpart (Citibank and Opportunity) and Alutrens (Banco do Brasil and private insurance companies). The final outcome will also consist in the TmarPART split-off, such that its share in Contax, currently controlled by TmarPART, is separately set in a new company. BNDESPAR�s interest will consist in a subscription of BRL1.239 billion in redeemable nominative preferred shares, issued by TmarPART. With these funds, the holding will buy Lexpart Participacoes S/A and Alutrens Participacoes S/A interest in Telemar Participacoes, corresponding to 10.275% and 10%, respectively. BNDESPAR will also subscribe securities amounting to BRL1.330 billion, issued by AG Telecom (of Andrade Gutierrez group) and LF TEL (of La Fonte group). Last but not least, BNDESPAR will be able to sell about 45% of its current interest TmarPART�s capital stock (around 11% of the holding�s capital stock) through a public auction, to rebalance the interests in the controlled companies. In this auction, three pension funds -- Petros, of Petrobras employees, Funcef, of Caixa Economica Federal, and Previ, of Banco do Brasil, will be able to increase their interest in TmarPART capital stock. Shareholders� Agreement -� As a usual practice in their shareholding interests, the Bank�s equity arm managed to ensure several protections in the new shareholders� agreement it will participate. Without BNDESPAR�s vote, for instance, the company cannot perform operations that may endanger control stability. BNDESPAR will also keep a qualified veto on relevant matters, such as mergers, split-offs and general corporate reorganizations. If the shareholding control is sold to third parties, BNDESPAR will be entitled to preemptive and tag along rights. That means in the event of sale, it may choose to exercise its preemptive rights on the sale, or even trade its shares for the same price adopted by the holding, which was not allowed so far. The shareholders� agreement, signed by BNDESPAR, also ensures that both companies keep their staff. The document sets forth that Oi and Brasil Telecom must keep the same number of job positions recorded on Feb. 1, 2008, for a three-year period. Banco Nacional de Desenvolvimento Economico e Social, a.k.a. BNDES, is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BANCO NACIONAL: To Provide Funding to Madeira Project Winner ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social will provide financing to the winning consortium of the bidding for the construction and operation of the 3.3-gigawatt Jirau hydro plant on the Madeira river, Business News Americas reports. According to Brazilian power regulator Aneel, groups interested in bidding for the project were given until April 29 to file registration documents. BNamericas relates that Aneel has set a price cap of BRL91 per megawatt-hour for the Jirau auction. The group that offers sell power from the plat to regulated clients at lowest price will be the winning bidder. About 70% of power from Jirau will go to the regulated market. Aneel told BNamericas that Jirau will operate with 44 turbines and plant construction will last for 90 months. Construction of the plant will cost BRL8.7 billion, BNamericas says, citing federal energy planning company Empresa de Pesquisa Energetica. According to Banco Nacional, 50% of the financing will come directly from the bank BNDES and the other through lending from financial institutions it accredited. The bank will will finance, directly or indirectly, up to 75% of the plant construction with a repayment period of 25 years. Banco Nacional is allowed to hold up to 20% of the winning consortium. Banco Nacional will charge 6.25% plus 0.5% a year to fund the plant construction, BNamericas states. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BETA SECURITIZADORA: Moody's Raises Global Scale Rating to Ba1 -------------------------------------------------------------- Moody's America Latina Ltda. has upgraded the ratings of the Series 2005-1 of Real Estate Certificates, Certificados de Recebiveis Imobiliarios (CRIs) issued by Beta Securitizadora, to Ba1 from Ba2 (Global Scale, Local Currency), and to Aa2.br from Aa3.br (Brazilian National Scale). The upgrade reflects: -- the improved Loan-to-Value ratio, which declined from 74% at closing to 67% as of February, 2008; -- the performance of the deal, which has been in line with Moody's assumptions since the rating was assigned; -- the improved market conditions relating to the property underlying the certificates; and -- the credit quality the Banco Internacional do Funchal (Brasil), S.A., lessee of the property underlying the certificates, currently rated Ba1 (Bank Deposits, Local Currency) and Aa2.br (Brazilian National Scale: Bank Deposits, Local Currency). Moody's adds that the transaction's reserve account, with a minimum amount equivalent to payment of interest and principal for one year, has been funded at this required level throughout the life of the transaction. The complete rating action: -- Series 2005-1 of Certificados de Receb�veis Imobiliarios (CRIs) issued by Beta Securitizadora S.A., upgraded to Ba1 from Ba2 (Global Scale, Local Currency), and to Aa2.br from Aa3.br (Brazilian National Scale) BLOCKBUSTER INC: Circuit Stockholder HBK Supports Merger Talks -------------------------------------------------------------- Circuit City Stores Inc.'s major stockholder urged the retailer to commence negotiations with Blockbuster Inc. on a proposal to acquire Circuit City for at least US$6 per share in cash, or roughly US$1.3 billion, subject to due diligence, various reports say. HBK Investments LP holds 15.4 million shares, or about 9.1% stake of Circuit City and is the third-largest Blockbuster shareholder, with an 8.5% stake. In a letter by HBK to Philip J. Schoonover, Circuit City chairman and chief executive, the Dallas hedge fund urged the board to allow Blockbuster access to due diligence materials and to engage in negotiations with Blockbuster so they can make a definitive proposal. HBK Investments relates that Carl Icahn, or an affiliate, would finance the transaction. HBK will also be prepared to provide financing for such a transaction, as HBK Investments is very optimistic about the future prospects of a combined company. HBK Investments stated that an acquisition at a substantial premium to the current share price is in the best interest of Circuit City's shareholders. There may also be other parties interested in acquiring Circuit City or entering into a material transaction with Circuit City that may provide even greater value to shareholders. WSJ states that HBK is the second investor to call on the company to open its books. According to WSJ, Wattles Capital Management, which owns 6.5% of Circuit City shares, also called on the company to allow due diligence. Wattles Capital has nominated a slate of four directors to the Circuit City board and has sought through a proxy submission to have the existing directors replaced at the company's June 24 annual meeting, WSJ notes. WSJ relates that Circuit City has refused to provide Blockbuster financial information, saying it didn't believe the video-rental company could consummate the proposed transaction in light of the difficult current financing environment. About Circuit City Stores Inc. Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- is a specialty retailer of consumer electronics, home office products, entertainment software and related services. The company has two segments: domestic and international. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/-- is a leading global provider of in-home movie and game entertainment, with over 7,800 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia, among others. At Jan. 6, 2008, the company's total debt, including capital lease obligations was US$757.8 million compared with US$984.2 million in Dec. 31, 2006. * * * In December 2007, Fitch Ratings affirmed Blockbuster Inc.'s long-term Issuer Default Rating at 'CCC' and the senior subordinated notes at 'CC/RR6'. Fitch said the rating outlook is stable. The company had approximately US$991 million of debt outstanding as of Sept. 30, 2007. BLOUNT INT'L: Dec. 31 Balance Sheet Upside-Down by US$54 Million ---------------------------------------------------------------- Blount International Inc.'s balance sheet at Dec. 31, 2007, showed total assets of US$411.949 million and total liabilities of US$466.095 million, resulting to a total shareholders' deficit of US$54.146 million. The company reported results for the fourth quarter and year ended Dec. 31, 2007. Net income for fourth quarter was US$17.566 million compared with net income of US$9.038 million for the same period in the previous year. Fourth quarter net income from continuing operations was US$8.9 million compared to US$8.8 million in the fourth quarter of 2006. Included in this year's fourth quarter is the recognition of a loss on the sale of surplus property of US$0.6 million and US$0.4 million in expense for the early extinguishment of debt. The company reported net income of US$42.857 million for full year 2007 compared with net income of US$42.546 million in 2006. "This past year, we continued to refine our business focus by exiting non-core businesses," James S. Osterman, chairman and chief executive officer, stated. "The sale of our Forestry Equipment Division this past November allowed us to reduce debt further and remove much of the company's exposure to the cyclical North American forestry industry. "Our core business, the Outdoor Products segment, finished with solid revenue growth in the fourth quarter and a good order backlog," Mr. Osterman said. "As we progress through 2008, we expect that our international reach and new product development will allow us to weather a continuation of weak market conditions in the North American region." Liquidity and Capital Resources Total debt was US$297 million at Dec. 31, 2007 and US$350.9 million at Dec. 31, 2006, representing a reduction of US$53.9 million during 2007. Outstanding debt as of Dec. 31, 2007 consisted of a term loan balance of US$122.0 million and 8- 7/8% senior subordinated notes of US$175.0 million. The company has no principal outstanding on its revolving credit facility as of Dec. 31, 2007. Cash and cash equivalents at Dec. 31, 2007, were US$57.6 million compared to US$27.6 million at Dec. 31, 2006. About Blount International Blount International Inc. (NYSE: BLT) -- http://www.blount.com/ -- is a diversified international company operating in two principal business segments: Outdoor Products and Industrial and Power Equipment. The company's Outdoor Products segment provides chain, bars and sprockets to the chainsaw industry, accessories to the lawn care industry and concrete cutting saws. Blount manufactures its products in the United States, Canada, China, and Brazil, and sells them in more than 100 countries. BRASKEM SA: May Sell US$500 Million Bonds Next Week --------------------------------------------------- Braskem SA has proposed to sell US$500 million of bonds in international markets to extend debt payments and repay a bridge loan, Guillermo Parra-Bernal of Bloomberg News reports, citing people familiar with the matter. An unnamed person, who refused to be identified because the plans were still initial, told Bloomberg that the company may sell the debt with maturities of seven to 10 years. Another of Bloomberg's sources also said the sale might take place as early as the end of next week. Bloomberg further relates that the company has sought as much as US$800 million in loans in the form of export pre-payments. To help fund a joint acquisition of Group Iparinga, the proceeds from both the bonds and the loan would be utilized to redeem a US$1.2 billion bridge loan the company took last year, the report says. The report, still citing an unnamed source, adds that if market conditions improve, the company would quicken the bond sale. Braskem SA (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Braskem S.A. Fitch also affirmed the 'BB+' ratings on the company's senior unsecured notes 2008, 2014, and senior unsecured notes 2017. COMMSCOPE INC: Cost Reduction Prompts Shutdown of Brazilian Fab --------------------------------------------------------------- CommScope Inc. is planning to close its Jaguariuna, Brazil broadband facility as part of the company's goal to eliminate duplicate manufacturing and distribution centers to reduce costs and enhance its long-term competitive position. The Jaguariuna facility, which employs approximately 200 people and primarily produces broadband cable products, is expected to close by the end of September, with most equipment redeployed to other facilities elsewhere in the world. These changes do not affect the company�s other Brazilian facility located in Sorocaba or the company�s ongoing commitment to providing Latin America customers with high-performance wireless, enterprise and broadband solutions. �This is the latest step in our ongoing drive to improve our competitive position, enhance our long-term financial performance and achieve our cost-synergy targets associated with the Andrew Corporation acquisition,� said CommScope President and Chief Operating Officer Brian Garrett. �We regret the impact on our people in Jaguariuna and appreciate their many contributions during the past eight years. However, we have an extensive worldwide manufacturing and distribution footprint that can be better utilized and more efficiently operated by consolidating facilities. As we execute this manufacturing strategy we intend to make sure that our customers continue to receive the outstanding service that they have come to expect from CommScope.� The 221,000 square-foot Jaguariuna facility was purchased in June 2000. Both the costs and the savings related to this facility closing will make up part of the projected total savings and transition costs announced in connection with the acquisition of Andrew, which was completed in December 2007. Separately, CommScope Europe S.P.R.L. has notified its Works Council of its intention to discontinue production activities at its facility in Seneffe, Belgium. A final decision on the proposed restructuring will be made after a consultation period with the Works Council. The company also has notified employees of its intent to proceed with the closing of its Capriate, Italy facility, which was acquired as part of the Andrew acquisition. Some Capriate activities will be centralized in the company�s Agrate, Italy site. Discussion is ongoing to finalize these consolidation plans. Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) -- http://www.commscope.com/-- is a provider of infrastructure solutions for communication networks. CommScope is also a manufacturer of coaxial cable for broadband cable television networks and a provider of environmentally secure cabinets for DSL and FTTN applications. CommScope has facilities in Brazil, Australia, China and Ireland. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services affirmed its ratings on CommScope Inc. and Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for both companies. The outlook is stable. GOL LINHAS: Board Approves First Quarter 2008 Dividends Payment -------------------------------------------------------------- GOL Linhas Aereas Inteligentes S.A., the parent company of Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas Aereas S.A., Board of Directors approved the payment of intercalary dividends, referring to the first quarter of the fiscal year of 2008, at a meeting held on April 25, 2008. Amount of Dividends (First Quarter 2008) The total amount dividends is BRL36,414,106.38 corresponding to BRL0.18 per common and preferred shares of the company. Record Date All outstanding shares on April 30, 2008, inclusive, will be entitled to receive the dividends approved "record date." Ex-Dividends Date The company's shares will be traded on Sao Paulo Stock Exchange (BOVESPA) and New York Stock Exchange (NYSE), "ex" dividends as of, and including, May 2, 2008. Imputation on Mandatory Dividends The intercalary dividends approved will be imputed to mandatory dividends related to fiscal year 2008, with no remuneration whatsoever. The payment of dividends is resolved according to the quarterly intercalary dividends policy approved by the Board of Directors in the meeting held on January 28, 2008, in the fixed amount of BRL0.18, per share, per common and preferred shares of the Company during 2008. Regardless of the referred fixed amount, it is assured the payment of the minimum dividend of 25% of the corporate year's net profit, and if necessary, the Company will make the year-end adjustment. Payment of Dividends The dividends will be paid to shareholders, with no remuneration, on June 20, 2008. Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) -- http://www.voegol.com.br-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Gol Linhas Aereas Inteligentes S.A. Fitch also affirmed the outstanding US$200 million perpetual bonds and US$200 million of senior notes due 2017 at 'BB+' as well as the company's 'AA-' (bra) national scale rating. Fitch said the rating outlook is stable. HEXCEL CORP: Moody's Keeps Ba3 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service affirmed Hexcel Corporation's Corporate Family and Probability of Default ratings of Ba3, and the B1 rating of Hexcel's subordinated notes, but raised the rating on the Secured Bank Credit Facilities to Baa3 from Ba1. The rating outlook remains stable. Because about US$96 million of the term loan portion of the Credit Facilities was repaid, recovery expectations are higher under Moody's Loss Given Default methodology and the rating on the Credit Facilities was raised one notch to Baa3. The claim of the Credit Facilities in the waterfall benefits from substantial collateral, up-stream guarantees from Hexcel's material domestic subsidiaries as well as a significant level of subordinated debt. The Ba3 Corporate Family and Probability of Default ratings balance the company's modest scale, significant market presence, strong credit metrics, and favorable growth prospects with the ongoing investment phase in its carbon fiber capacity, which constrains prospects for near term free cash flow. The rating also recognizes concentration aspects in Hexcel's customer base and the cyclical nature of the build rate for new commercial aircraft. Recent performance demonstrates healthy interest coverage and significantly lower leverage, and flows from a combination of higher production rates in commercial aerospace and wind energy, increasing percentage use of composite materials in new aircraft, sustained margins, and the application of proceeds from business divestitures to reduce indebtedness. Moody's expects favorable operating trends to continue, but the company's plan for substantial capital expenditures is likely to result in no better than break-even free cash flow in the near term. Consequently, debt is not expected to be reduced. Hexcel could generate strong free cash flow once the heavy capital investments begin to ebb and the build-rates for larger aircraft progress to a normalized production level. The ratings are further supported by Hexcel's strong competitive position in what is expected to be a continuing robust environment for OEM aircraft suppliers. While Hexcel is anticipated to generate credit metrics at levels at or above those typical for the Ba3 rating, the rating considers uncertainty in the pace at which the Airbus A380 (on which Hexcel will have US$3 million content per aircraft, according to the company) and the ongoing delays in production of Boeing's B787 (on which Hexcel will have between US$1.3 million to US$1.6 million of content per aircraft, according to the company). Also, a shareholder activist group has proposed three alternative nominees to Hexcel's board of directors (the shareholders meeting is scheduled for May 8, 2008) and has further said that shareholder value has not been maximized. Uncertainty of future financial policies constrains the rating. The stable rating outlook reflects Moody's expectations for continued healthy operating margins and revenue growth in an ongoing robust commercial aerospace environment and is supported by the firm's satisfactory liquidity profile despite the prospects for break-even free cash flow in 2008. The stable outlook also assumes that any developments relating to the production and delivery schedule of the A380 or B787 will have no material negative impact on the company's margins or working capital requirements. Ratings upgraded with revised Loss Given Default Assessments: -- US$125 million secured revolving credit facility, Baa3 (LGD-2, 14%) from Ba1 (LGD-2, 22%) -- US$87 million secured term loan, Baa3 (LGD-2, 14%) from Ba1 (LGD-2, 22%) Ratings affirmed with revised Loss Given Default Assessment: -- Corporate Family, Ba3; -- Probability of Default, Ba3; -- US$225 million senior subordinated notes, B1 (LGD-4, 69%). The last rating action was on April 3, 2007 at which time Hexcel's Corporate Family and Probability of Default ratings were up-graded to Ba3 from B1. Hexcel Corporation, headquartered in Stamford, CT, is a leading advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense, and certain industries. Revenues in 2007 were approximately US$1.2 billion. The company has subsidiaries in Austria, the United Kingdom, Spain, Hong Kong, Japan and Brazil. PROPEX INC: Wants to Extend Exclusive Plan-Filing to Oct. 18 ------------------------------------------------------------ Propex Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Tennessee to extend (i) their Exclusive Plan Filing Period until Oct. 18, 2008; and (ii) their Exclusive Solicitation Period until Dec. 17, 2008. Pursuant to Section 1121(b) of the Bankruptcy Code, a chapter 11 debtor has the exclusive right to file a plan of reorganization during the first 120 days following the filing of its chapter 11 petition, and thereafter to solicit acceptances to any plan so filed for a period of an additional 60 days. Thus, under Section 1121, the Debtors have the exclusive right to file a plan of reorganization until May 19, 2008, and the exclusive right to solicit acceptances to that plan until July 16, 2008. Section 1121(d) also provides that the Court may extend or increase a debtor's period of exclusivity upon a showing of cause. Mark W. Wege, Esq., at King & Spalding, LLP, in Houston, Texas, asserts that based on the size and complexity of the Debtors' Chapter 11 cases, a 120-day exclusivity period is not enough time within which the Debtors may negotiate, draft and propose a consensual Chapter 11 Plan, as well as conduct all the other duties incumbent upon a debtor-in-possession. As of the Petition Date, the Debtors had approximately US$585.7 million in assets, and roughly US$527.4 million in liabilities. Moreover, the Debtors have approximately 3,200 employees world-wide and 1,925 employees in the United States. The Debtors have only had enough time to take the initial steps in the case and stabilize their business after their Chapter 11 filing, Mr. Wege notes. In the less than three months since the bankruptcy filing, Mr. Wege informs the Honorable John C. Cook, the Debtors' management, employees, advisors and counsel have devoted substantial time and effort to a number of tasks, including: (a) the negotiation, proposal and finalization of the terms of the Debtors' US$60,000,000 postpetition financing, and resolving all objections to the Debtors' request to obtain DIP Financing; (b) the review of numerous executory contracts and leases, and seeking the rejection of certain agreements; (c) the determination of whether and how each of the Debtors' numerous projects should be restructured; (d) the holding of frequent meetings and conference calls with the Official Committee of Unsecured Creditors and providing extensive, in-depth information and documentation in response to the Creditors Committee's due diligence reports; (e) the preparation of responses to numerous creditor, supplier and customer inquiries; and (f) the compilation of information required to complete the Debtors' schedules and statements of financial affairs and filing them on April 1, 2008. Mr. Wege tells the Court that those tasks have been particularly time consuming since the Debtors have engaged in regular discussions with counsel for the Official Committee of Unsecured Creditors to negotiate various issues. Additionally, the change in the Debtors' leadership team, and the required time to develop strategy associated with the Debtors' businesses has and will take time to materialize, Mr. Wege says. The Debtors have made considerable progress in laying the foundational groundwork necessary for a successful reorganization, as well as taking other steps to stabilize their businesses and insure long-term profitability, Mr. Wege maintains. The Debtors' monthly operating reports show positive EBITDA and cash flows, he avers. Based on the progress in their bankruptcy cases, the Debtors believe that their prospects for ultimately proposing and filing a viable Plan are favorable, thereby warranting an extension of the Exclusivity Period. About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in North America, Europe, and Brazil. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. The Debtors' exclusive period to file a plan of reorganization expires on May 17, 2008. (Propex Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX: Wants Court to Extend Lease Decision Period to Aug. 15 -------------------------------------------------------------- Propex Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Tennessee to extend the time within which they must assume or reject leases, through and including Aug. 15, 2008. The Debtors are presently lessees under 15 unexpired non- residential real property leases, including their corporate headquarters located at Lee Highway, in Chattanooga, Tennessee. Edward L. Ripley, Esq., at King & Spalding, LLP, in Houston, Texas, relates that the Debtors are at an early stage of their Chapter 11 cases, and are currently dealing with a variety of important issues regarding the progression of their bankruptcy proceedings. While the Debtors have until May 19, 2008, to determine whether the Leases should be assumed or rejected, Mr. Ripley notes, they have already undertaken a comprehensive review of their business operations, assets and contractual obligations, including the Leases they have entered into. Mr. Ripley asserts that while the extensive review process is underway, it is not in the best interests of the Debtors' estates or their creditors to force the Debtors to assume or reject the Leases prematurely. "A decision to assume has significant implications on the estates since, as the Court is aware, any assumption may create administrative claims if a particular Lease is later determined to be no longer needed," Mr. Ripley says. About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in North America, Europe, and Brazil. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. The Debtors' exclusive period to file a plan of reorganization expires on May 17, 2008. (Propex Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) SADIA SA: To Form Joint Venture With Kraft Foods ------------------------------------------------ Sadia S.A. has signed a partnership agreement with Kraft Foods Brasil S.A. and Kraft Foods Holdings, Inc., for the formation of a joint venture, a regulatory filing with the U.S. Securities and Exchange Commission discloses. The joint venture, of which Kraft will hold 51% of the voting shares while Sadia the remaining 49%, will manufacture, market and distribute, in Brazil, cheese products, including those currently marketed by Kraft under the Philadelphia brands, as well as cheese products and cheese spreads sold under the Sadia brand. The joint venture will take the form of a closed corporation with its registered address and industrial park located in Curitiba-PR, the SEC filing relates. The corporation will have its own independent structure and corporate governance. Sadia estimates at BRL30 million the initial investment to set up the business. The company expects revenues of the joint venture to reach BRL40 million in its first year of business. Upon the execution of the final documents by the parties, as required by the partnership agreement, the JV will commence its activities by the second half of August 2008. In addition to the partnership pact, Sadia and Kraft also executed a distribution agreement pursuant to which Sadia will market and distribute the whole portfolio of cheese products manufactured by Kraft, on an exclusive basis. Sadia believes the partnership with Kraft represents an important step towards strengthening the company in the segment of cheese and is in full alignment with its strategy of growth and creation of value. 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. TELEMAR NORTE: S&P Affirms BB+ Rating Over Brasil Telecom Merger ---------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB+' long- term corporate credit rating on Tele Norte Leste Participacoes S.A. and Telemar Norte Leste S.A., (collectively, Telemar). S&P also affirmed its 'brAA+' national scale corporate credit ratings on Tele Norte Leste Participacoes SA and Telemar Norte Leste SA. At the same time, S&P affirmed its 'brAA+' national scale long- term corporate credit rating on Brasil Telecom S.A. and Brasil Telecom Participacoes S.A., (collectively, Brasil Telecom). The outlook on the corporate credit ratings is stable. The rating actions follow the announcement by Telemar that it reached an agreement to acquire control of Brasil Telecom for approximately US$3.5 billion (BRL5.9 billion). The conclusion of the deal depends on regulatory approval, which includes changes in the Brazilian National Plan of Concessions, Plano Geral de Outorgas (PGO) to legally allow for the companies to be combined. Antitrust approvals are also needed, posing some execution risks in the near term. The ratings are also tempered by the integration risks that are typical in this type of transaction. In addition to the controlling stake acquisition, S&P expects Telemar to proceed with a voluntary offer to acquire nonvoting shares -- limited to one-third of these shares -- from minority shareholders at both Brasil Telecom SA and Brasil Telecom Participacoes SA in the coming months. The rating agency also expects mandatory offers for voting minority shareholders at Brasil Telecom to be made following the approval from regulatory and antitrust entities and the conclusion of the acquisition. S&P estimate these offers totaling approximately US$4.6 billion to Telemar. An upfront payment of US$189 million (BRL315 million) will be made to previous shareholders at Brasil Telecom to resolve certain legal litigations. If antitrust authorities don't approve the transaction within 240 days, Telemar will have to pay a breakup fee of approximately US$290 million (BRL490 million). In S&P's opinion, this would not negatively affect Telemar's credit quality, given its strong liquidity. "If regulatory authorities approve the merger, S&P expects the combined company to benefit from significant synergies thanks to complementary geographies and economies of scope and scale, leading to improved cash-flow fundamentals," said S&P's credit analyst Victor Saulytis. The new company will be the largest telecom company in Latin America, with pro-forma revenues around US$17 billion (BRL29 billion), operations in virtually all states of the country except S�o Paulo, more than 22.2 million fixed lines in service, and 20.3 million mobile phone subscribers. Medium- to long-term growth potential is also relevant. The new company projects 38 million mobile phone subscribers in the next five years, compared with its current combined base of 20.3 million. The new company also has plans to quadruple its broad-band base, reaching 12 million subscribers (currently around 3,000,000). Growth potential is also significant in pay TV, where S&P expects the new company to service 8,000,000 users in the next five years, expanding its cash flow sources. The stable outlook reflects S&P's view that, despite the fierce competitive environment and rapidly shifting technologies, Telemar and Brasil Telecom will sustain leading positions in their service areas, leading to strong cash generation to face acquisition debt. This will be supported by these companies' diversified services portfolio, the complementary coverage area, and both individual and combined financial strengths, including high levels of liquidity and cash-flow generation. The outlook could change to positive if the companies continue delivering strong profitability and cash generation, coupled with improving credit metrics and prudent financial policies. Negative pressure on ratings would come from a material shift in the expected financial profile of the new entity due to a more aggressive financial policy. Deterioration in the competitive and economic environment affecting its operations (e.g., inflationary pressures, higher interest rates, or a deep decline of consumers' confidence) could also negatively affect the ratings. Headquartered in Rio de Janeiro, Brazil, Telemar Norte Leste SA operates a local fixed-line telephone in Brazil. The company is a subsidiary of Tele Norte Leste Participacoes SA. Telemar Norte Leste SA operates in the states of Rio de Janeiro, Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas, Pernambuco, Paraiba, Rio Grande do Norte and Amazonas, among others. Its subsidiaries include Telemar Internet Ltda., which provides Internet services. TELE NORTE: Will List Preferred Shares in Telemar Norte on NYSE --------------------------------------------------------------- Tele Norte Leste Participacoes SA's officials told Dow Jones Newswires that it will list preferred shares in operating firm Telemar Norte Leste on the New York Stock Exchange once the deal to acquire control of Brasil Telecom Participacoes is completed. According to Dow Jones, Tele Norte's Investor Relations Director Roberto Terziani said that the firm also wants to list Telemar common shares. Tele Norte doesn't risk reducing the liquidity of its shares with a second issue, Dow Jones says, citing Mr. Terziani. "On the contrary, it will give investors more options," Mr. Terziani added. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported on April 27, 2007, Standard & Poor's Ratings Services placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. TELE NORTE: S&P Affirms BB+ Rating Over Brasil Telecom Merger ------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB+' long- term corporate credit rating on Tele Norte Leste Participacoes S.A. and Telemar Norte Leste S.A., (collectively, Telemar). S&P also affirmed its 'brAA+' national scale corporate credit ratings on Tele Norte Leste Participacoes SA and Telemar Norte Leste SA. At the same time, S&P affirmed its 'brAA+' national scale long- term corporate credit rating on Brasil Telecom S.A. and Brasil Telecom Participacoes S.A., (collectively, Brasil Telecom). The outlook on the corporate credit ratings is stable. The rating actions follow the announcement by Telemar that it reached an agreement to acquire control of Brasil Telecom for approximately US$3.5 billion (BRL5.9 billion). The conclusion of the deal depends on regulatory approval, which includes changes in the Brazilian National Plan of Concessions, Plano Geral de Outorgas (PGO) to legally allow for the companies to be combined. Antitrust approvals are also needed, posing some execution risks in the near term. The ratings are also tempered by the integration risks that are typical in this type of transaction. In addition to the controlling stake acquisition, S&P expects Telemar to proceed with a voluntary offer to acquire nonvoting shares -- limited to one-third of these shares -- from minority shareholders at both Brasil Telecom SA and Brasil Telecom Participacoes SA in the coming months. The rating agency also expects mandatory offers for voting minority shareholders at Brasil Telecom to be made following the approval from regulatory and antitrust entities and the conclusion of the acquisition. S&P estimate these offers totaling approximately US$4.6 billion to Telemar. An upfront payment of US$189 million (BRL315 million) will be made to previous shareholders at Brasil Telecom to resolve certain legal litigations. If antitrust authorities don't approve the transaction within 240 days, Telemar will have to pay a breakup fee of approximately US$290 million (BRL490 million). In S&P's opinion, this would not negatively affect Telemar's credit quality, given its strong liquidity. "If regulatory authorities approve the merger, S&P expects the combined company to benefit from significant synergies thanks to complementary geographies and economies of scope and scale, leading to improved cash-flow fundamentals," said S&P's credit analyst Victor Saulytis. The new company will be the largest telecom company in Latin America, with pro-forma revenues around US$17 billion (BRL29 billion), operations in virtually all states of the country except S�o Paulo, more than 22.2 million fixed lines in service, and 20.3 million mobile phone subscribers. Medium- to long-term growth potential is also relevant. The new company projects 38 million mobile phone subscribers in the next five years, compared with its current combined base of 20.3 million. The new company also has plans to quadruple its broad-band base, reaching 12 million subscribers (currently around 3,000,000). Growth potential is also significant in pay TV, where S&P expects the new company to service 8,000,000 users in the next five years, expanding its cash flow sources. The stable outlook reflects S&P's view that, despite the fierce competitive environment and rapidly shifting technologies, Telemar and Brasil Telecom will sustain leading positions in their service areas, leading to strong cash generation to face acquisition debt. This will be supported by these companies' diversified services portfolio, the complementary coverage area, and both individual and combined financial strengths, including high levels of liquidity and cash-flow generation. The outlook could change to positive if the companies continue delivering strong profitability and cash generation, coupled with improving credit metrics and prudent financial policies. Negative pressure on ratings would come from a material shift in the expected financial profile of the new entity due to a more aggressive financial policy. Deterioration in the competitive and economic environment affecting its operations (e.g., inflationary pressures, higher interest rates, or a deep decline of consumers' confidence) could also negatively affect the ratings. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. UNSINAS SIDERURGICAS: Issues First Quarter 2008 Earnings Webcast ---------------------------------------------------------------- Usinas Siderurgicas de Minas Gerais S.A. (a.k.a. Usiminas) posted this Webcast Alert: What: First Quarter 2008 Results Conference Call, which will be released on April 30, 2008, before the opening of Bovespa's trading session When: May 5, 2008 @ 9:00 AM EST in Portuguese and 11:00 AM EST in English Where: http://prnewswire.isat.com.br/?palestra_id=307 How: Simply log on to the company's Web site. Contact: Investor Relations Usiminas, Tel. Number: +55 31 3499-8710 email add: investidores@usiminas.com.br The conference call will be archived at http://www.usiminas.com.br To access the replay, click on Investor Relations Section. Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de Minas Gerais SA -- http://www.usiminas.com.br-- is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. The company also sells in China and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local currency rating and an Aa1.br rating on its Brazilian national scale to the BRL500 million non-guaranteed subordinated debentures due 2013 to be issued by Usinas Siderurgicas de Minas Gerais S.A. (aka Usiminas). Net proceeds from the debentures issuance will be used to partially fund the company's capex program. Moody's said the rating outlook is stable. ========================== C A Y M A N I S L A N D S ========================== BLACK BEAR: Will Hold Final Shareholders Meeting on May 2 --------------------------------------------------------- Black Bear Fu