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 Monday, May 5, 2008, Vol. 9, No. 88 Headlines A R G E N T I N A ARGLUS SA: Trustee to File General Report in Court Today CAIDES SA: Trustee to File Individual Reports in Court Today CHRYSLER LLC: April Sales Drop 23% Due to Slowing SUV Demand FIAT SPA: Signs MoU to Acquire Zastava's Kragujevac Plant FORD MOTOR: April 2008 Sales Drops 12%, Focus Sales Ups 88% HOTELES LAR: Trustee to Submit General Report to Court Today LIWIN SA: Trustee to Verify Proofs of Claim Until July 25 QUEBECOR WORLD: Final Recovery is 41.1%, Global DiSCS Says SIDECSA SA: Trustee to Submit General Report to Court Today SUCESSION DE AURELIO: Trustee to Verify Claims Until July 7 SUN MICRO: Posts US$34 Million Net Loss in Fiscal 3rd Quarter TRANS ROGAL: Trustee to File Individual Reports in Court Today B E R M U D A ANNUITY & LIFE: Incurs US$79,213 Net Loss in 2008 First Quarter SECURITY CAPITAL: To Release First Quarter 2008 Results on May 8 SECURITY CAPITAL: Unit Names Adam Bergonzi Chief Credit Officer SCOTTISH RE: Falling Capitalization Cues S&P to Retain WatchNeg TYCO INT'L: Reports US$222 Million Operating Income in 2Q 2008 XL CAPITAL: Goldman's Conviction Buy List Position Boosts Shares B R A Z I L BANCO NACIONAL: Mulling Approval of Jirau Hydro Plant Financing BANCO NACIONAL: To Approve Santo Antonio Plant Funding in August CNH GLOBAL: S&P Upgrades Corporate Credit Rating From 'BB+' DELPHI CORP: Court Approves DIP Facility Extension & Refinancing DELPHI CORP: Court Okays Up to US$650MM in GM Credit Extensions DUERR AG: Earns EUR4.4 Million for First Quarter Ended March 31 GENERAL MOTORS: Posts US$3.3 Bil. Net Loss in 2008 First Quarter PRIDE INTERNATIONAL: Bags Five-Year Deal for Further Expansion SADIA SA: Consolidated Net Income Doubles to BRL216MM in 1Q 2008 SANYO ELECTRIC: Matsushita Tie-Up Seen, Yomiuri Shimbun Says THERMADYNE HOLDINGS: To Hold Annual Meeting on Tuesday THERMADYNE HOLDINGS: S&P Lifts Corporate Credit Rating to 'B-' C A Y M A N I S L A N D S ABC CAYMAN: Sets Final Shareholders Meeting for May 7 APPLEGARTH & CO: Proofs of Claim Filing Deadline Is May 8 BASIS YIELD: US Court Dismisses Firm' Bankruptcy Protection CRESCENT ARENA: Sets Final Shareholders Meeting for May 7 FRESH DEL MONTE: Richard Contreras Replaces John Inserra as CFO HERBALIFE LTD: Reports US$62.4 Mil. Net Income in First Quarter NORANDA HIGHLANDS: Will Hold Final Shareholders Meeting on May 7 SENIOR FUNDING: Sets Final Shareholders Meeting for May 7 TEQUESTA CORE: Proofs of Claim Filing Deadline Is May 6 TEQUESTA ENHANCED: Proofs of Claim Filing Is Until May 6 TEQUESTA ENHANCED CONVEXITY: Claims Filing Deadline Is May 6 TEQUESTA MORTGAGE: Proofs of Claim Filing Is Until May 6 XINEX CO: Proofs of Claim Filing Deadline Is May 6 C H I L E CHEMTURA CORP: Posts US$21 Mil. Net Loss in 2008 First Quarter CHEMTURA CORP: Annual Stockholders Meeting Scheduled for May 14 CHEMTURA CORP: Inks Pact with Baerlocher on Heat Stabilizers COEUR D'ALENE: Matrix Research Upgrades Rating on Firm to Sell C O S T A R I C A DENNY'S CORP: March 26 Balance Sheet Upside-Down by US$172.2 Mln SIRVA INC: Files First Amended Prepackaged Joint Plan D O M I N I C A N R E P U B L I C AES DOMINICANA: Fitch Affirms Foreign Currency ID Rating at 'B-' EMPRESA GENERADORA: Fitch Holds B- Foreign and Local ID Ratings EMPRESA GENERADORA: Fitch Affirms B- International Currency IDRs E C U A D O R PETROECUADOR: To Repair Esmeraldas' Distillation Unit in 2 Weeks E L S A L V A D O R ALCATEL-LUCENT SA: Posts EUR181 Million Loss for 1st Qtr 2008 G U A T E M A L A BRITISH AIRWAYS: Eyes Transatlantic Tie-Up With Two US Carriers J A M A I C A NATIONAL WATER: Must Develop Sewage Treatment Master Plan M E X I C O DANA CORP: Intends to Transfer Kentucky Operations to Mexico HERCULES OFFSHORE: S&P Affirms Credit & Bank Loan Ratings at BB RADIOSHACK CORP: Earns US$38.8 Million in Quarter Ended March 31 RESIDENTIAL CAPITAL: Seeks Alternatives to Arrest Liquidity Woes TLALNEPANTLA MUNICIPALITY: Moody's Places Ba3 Local Curr. Rating * MEXICO: S&P Predicts Challenges for Banking System in 2008 P U E R T O R I C O MANUEL GONZALEZ: Case Summary & 10 Largest Unsecured Creditors V E N E Z U E L A CLOROX CO: March 31 Balance Sheet Upside-Down by US$472 Million HARVEST NATURAL: Enters AMI to Explore Oil in Upper Gulf Coast HARVEST NATURAL: Reports US$204,000 Net Income in 1st Qtr. 2008 HARVEST NATURAL: Names S. Haynes & J. Yearwood, CFO & Controller CITGO REFINING: Court Hears Testimonies in Environmental Case X X X X X X * LatAm 2007 Issuance Up 25% to US$19.1 Billion, Moody's Reports * BOND PRICING: For the Week April 28 - May 2, 2008 - - - - - ================= A R G E N T I N A ================= ARGLUS SA: Trustee to File General Report in Court Today -------------------------------------------------------- Silvia Beatriz Jaime, the court-appointed trustee for Arglus S.A.'s bankruptcy proceeding, will submit a general report containing an audit of the firm's accounting and banking records to the National Commercial Court of First Instance in Buenos Aires on May 5, 2008. Ms. Jaime verified creditors' proofs of claim until Feb. 15, 2008. She presented the validated claims in court as individual reports on April 15, 2008. Ms. Jaime is also in charge of administering Arglus' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Arglus S.A. Romulo S. Naon 1970 Buenos Aires, Argentina The trustee can be reached at: Silvia Beatriz Jaime Sarmiento 1469 Buenos Aires, Argentina CAIDES SA: Trustee to File Individual Reports in Court Today ------------------------------------------------------------ Luis Maria Escobar, the court-appointed trustee for Caides S.A.'s bankruptcy proceeding, will present in the National Commercial Court of First Instance in Buenos Aires the validated claims as individual reports on May 5, 2008. Mr. Escobar verified creditors' proofs of claim until March 12, 2008. He will submit to court a general report containing an audit of Caides' accounting and banking records on June 16, 2008. Mr. Escobar is also in charge of administering Caides' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Luis Maria Escobar Viamonte 1646 Buenos Aires, Argentina CHRYSLER LLC: April Sales Drop 23% Due to Slowing SUV Demand ------------------------------------------------------------ Chrysler LLC reported total April 2008 sales of 147,751 units, which is 23% below the same period last year. Overall sales were most affected by slowing truck and SUV demand and a dramatic cut in daily rental-fleet sales. "The overall decrease in April sales, particularly of pickup trucks, demonstrates that the auto industry continues to be under pressure from the national economy," Vice Chairman and President Jim Press said. "Despite the economic challenges, and concern about rising fuel prices, we continue to hear from consumers that there is growing interest in vehicles that meet specific needs, such as the Dodge Journey seven-passenger crossover for families and the Dodge and Jeep fuel-efficient compact vehicles for young professionals. Our plan is to continue to focus on meeting customers' needs, and managing our overall inventory to best weather this slowdown." Chrysler's lineup of compact vehicles continued to connect well with consumers this month. Total compact vehicle sales of the fuel-efficient Dodge Caliber, Jeep Compass and Jeep Patriot, which each achieve 28 miles per gallon or better in highway driving, reached an April record 17,977 units last month, up 16 percent from April 2007. As the spring "top-down" driving season begins, the Chrysler Sebring Convertible finished the month with 2,827 units compared with April 2007 sales of 1,447 units, a 95% sales increase. Also enjoying a positive month was the Dodge Charger with sales of 13,021 units in April, a 29% increase over 2007 April sales. In April, the company launched its largest digital-advertising campaign in Chrysler history for the all-new Dodge Journey, 'If you can dream it, do it.' The Journey, with best-in-class fuel economy (25-mpg hwy, 4-cylinder), delivers a unique combination of versatility and flexibility at less than US$20,000. The Journey increased sales to 6,667 units in only its third month on the market. As a result of the success of its "New Day" packages, Chrysler will continue to offer the popular packages in May. The packages have struck a chord with buyers by combining the company's most sought-after features on a wide range of vehicles at reduced prices. The company finished the month with 422,353 units of inventory, or a 74-day supply. As part of a planned reduction in manufacturing and capacity, inventory is down 13% compared with April 2007 when it totaled 482,786 units. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * In December 2007, Standard & Poor's Ratings Services revised its recovery rating on Chrysler's US$2 billion senior secured second-lien term loan due 2014. The issue-level rating on this debt remains unchanged at 'B', and the recovery rating was revised to '3', indicating an expectation for 50% to 70% recovery in the event of a payment default, from '4'. Both the issue-level and recovery ratings on Chrysler's US$7 billion first-lien term loan due 2013 remain unchanged. The issue-level rating on this debt is 'BB-' with a recovery rating of '1', indicating an expectation for 90% to 100% recovery in the event of a payment default. FIAT SPA: Signs MoU to Acquire Zastava's Kragujevac Plant --------------------------------------------------------- Fiat S.p.A. and Serbia’s Ministry of Economy and Regional Development has signed a Memorandum of Understanding as the basis for the acquisition by Fiat Group Automobiles of the assets of the Zastava plant at Kragujevac, Serbia. Under the MoU, joint teams are to be set up by FGA and Zastava with the support of the Serbian Ministry of Economy, which will examine the various aspect of the initiative in greater detail. If deemed feasible, the two companies will enter into a definitive agreement in the course of the coming months. "This initiative represents a further step in Fiat Group Automobiles’ strategy aimed at supporting its growth and volume aspirations," Sergio Marchionne, Fiat CEO, said. "It follows a number of targeted alliances and partnerships signed with leading carmakers and automotive suppliers over the last four years. Moreover, it demonstrates our confidence and trust in Serbia, its industry, management competence and the skill of its workers, not to forget the Serbian automotive market itself, which we consider an integral extension of our domestic market. "[Fifty-four] years ago, Fiat and Zastava signed an accord for the construction of the factory at Kragujevac where the Fiat Punto is manufactured today," Mr. Marchionne added. "We believe that, together with Zastava, we have played an important role in enhancing the Serbian automotive industry from both the manufacturing as well as the technological point of view. We are proud that many Serbian engineers and technicians have been trained at Fiat in Italy and in Serbia." About Fiat S.p.A. Based in Turin, Italy, Fiat SpA -- http://www.fiatgroup.com/-- designs, manufactures, and sells automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The company also carries B short- term rating. S&P said the outlook is stable. FORD MOTOR: April 2008 Sales Drops 12%, Focus Sales Ups 88% ----------------------------------------------------------- Total Ford Motor Company sales in April 2008, including Jaguar, Land Rover, and Volvo sales, totaled 200,727, down 12%. Ford's new Focus continues to defy gravity -- and the U.S. economy -- with a 88% jump in retail sales versus last April and the highest total Focus April sales since 2000. "Focus is the right car at the right time," Jim Farley, Ford group vice president, Marketing and Communications, said. "This is the little car that delivers in a big way for customers, with outstanding fuel economy, cool features including SYNC, a fun drive and the right price, right along with the rest of our newest cars and crossovers." Ford, Lincoln and Mercury cars achieved a 21% increase in retail sales. While Focus was the standout, the company's mid-size cars also posted higher retail sales. Ford Fusion retail sales were up 31%, Mercury Milan retail sales were up 19% and Lincoln MKZ retail sales were up 20%. The Fusion and Milan set April sales records with total sales of 15,059 for the Fusion and 3,809 for the Milan. Retail sales for the company's crossovers were 11% higher than a year ago, paced by the Ford Edge (up 24%) and Ford Escape (up 13%). Retail sales for the Mercury Mariner were up 6 percent and Lincoln MKX retail sales were up 4%. Higher gas prices are accelerating the industry-wide shift from trucks and traditional sport utility vehicles to cars and crossovers. At Ford, April sales for sport utility vehicles were 36% lower than a year ago and trucks were 19% lower. Lower sales to daily rental companies (down 32%) also contributed to the company's sales decline. Overall, Ford, Lincoln and Mercury sales totaled 189,247, down 12% compared with a year ago. Retail sales to individual customers were down 7%. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on March 31, 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) for US$2.3 billion (before US$600 million of pension contributions by Ford for Jaguar-Land Rover). As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. In November 2007, Moody's Investors Service affirmed the long- term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the United Auto Workers. HOTELES LAR: Trustee to Submit General Report to Court Today ------------------------------------------------------------ Walter Calleja, the court-appointed trustee for Hoteles Lar S.A.I.C.F. e I.'s bankruptcy proceeding, will submit a general report containing an audit of the firm's accounting and banking records in the National Commercial Court of First Instance in Buenos Aires on May 5, 2008. Mr. Calleja verified creditors' proofs of claim until Feb. 7, 2008. presented in court the validated claims as individual reports on March 20, 2008. Mr. Calleja is also in charge of administering Hoteles Lar's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Walter Calleja Lambare 1140 Buenos Aires, Argentina LIWIN SA: Trustee to Verify Proofs of Claim Until July 25 --------------------------------------------------------- Amalia Beckerman, the court-appointed trustee for Liwin SA's reorganization proceeding, will be verifying creditors' proofs of claim until July 25, 2008. Ms. Beckerman will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 27, 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 Liwin 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 Liwin's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on March 5, 2009. The debtor can be reached at: Liwin SA Alicia Moreau de Justo 1848 Buenos Aires, Argentina The trustee can be reached at: Amalia Beckerman Tucuman 1367 Buenos Aires, Argentina QUEBECOR WORLD: Final Recovery is 41.1%, Global DiSCS Says ---------------------------------------------------------- Global DiSCS Trust 2004-1 (TSX: DST.UN) said that the final recovery amount among the Trust's unitholders related to Quebecor World Inc. is 41.1% and that a bankruptcy credit event will not result in any reduction in collateral or an investor's capital amount. Credit Event On Jan. 23, 2008, the Trust was notified that Quebecor filed a petition for creditor protection under the Companies' Creditors Arrangement Act (CCAA) in Canada. The exposure of the Trust's unitholders to Quebecor was 0.50% of the Reference Portfolio. Following the Quebecor Bankruptcy Credit Event, the Trust's remaining synthetic first loss tranche protection is 3.606% of the Reference Portfolio. The initial 4.10% first loss tranche was reduced to 3.88% as a result the 2006 Delphi Corporation Credit Event. Unitholders' entitlement to receive US$25 per unit on Dec. 20, 2009, and quarterly distributions of US$0.325 per unit will not be affected by this Credit Event. However, if future Cumulative Net Loss Amount resulting from credit events exceeds 3.606%, the Trust's unitholders will not receive the original subscription price of US$25 per unit upon the maturity date. Trading Information and NAV The Units of Global DiSCS Trust 2004-1 are listed for trading on the Toronto Stock Exchange under the symbol DST.UN. As of April 23, 2008, the net asset value of the Trust was US$20.78 per unit. About Sentry Select Capital Corp. Sentry Select Capital Corp. is a Canadian wealth management company that manages over US$6.5 billion in gross assets as of March 31, 2008. The company offers a diverse range of investment products including closed-end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates. Sentry Select is the manager and advisor to 29 TSX-listed reporting issuers. In addition, Sentry Select manages and provides advisory services to four reporting issuers listed on the TSX Venture Exchange. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. SIDECSA SA: Trustee to Submit General Report to Court Today ----------------------------------------------------------- Sergio Leonardo Novick, the court-appointed trustee for Sidecsa S.A.'s bankruptcy proceeding, will submit a general report containing an audit of the firm's accounting and banking records to the National Commercial Court of First Instance in Buenos Aires on May 5, 2008. Mr. Novick verified creditors' proofs of claim and presented them as individual reports in court. Mr. Novick is also in charge of administering Sidecsa's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Sergio Leonardo Novick Libertad 359 Buenos Aires, Argentina SUCESSION DE AURELIO: Trustee to Verify Claims Until July 7 ----------------------------------------------------------- Ricardo Felix Fernandez, the court-appointed trustee for Sucesion de Aurelio Delfino's reorganization proceeding, will be verifying creditors' proofs of claim until July 7, 2008. Mr. Fernandez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 3, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Sucesion de Aurelio 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 Sucesion de Aurelio's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on April 27, 2009. The debtor can be reached at: Sucesion de Aurelio Delfino Roca 6421 Buenos Aires, Argentina The trustee can be reached at: Ricardo Felix Fernandez Tucuman 1567 Buenos Aires, Argentina SUN MICRO: Posts US$34 Million Net Loss in Fiscal 3rd Quarter ------------------------------------------------------------- Sun Microsystems, Inc. reported results for its fiscal third quarter, which ended March 30, 2008. Revenues for the third quarter of fiscal 2008 were US$3.266 billion, a decrease of 0.5% as compared with US$3.283 billion for the third quarter of fiscal 2007. Total gross margin as a percent of revenues was 44.9, an increase of 0.4 percentage points, as compared with the third quarter of fiscal 2007. Net loss for the third quarter of fiscal 2008 on a GAAP basis was US$34 million, or US$(0.04) per share, as compared with net income of US$67 million, or US$0.07 per share, for the third quarter of fiscal 2007. In the third quarter of fiscal 2008, the company recorded a US$52 million dollar tax provision, as compared to a tax benefit of US$3 million in the third quarter of fiscal 2007. Net loss for the third quarter included charges related to the acquisition of MySQL, which reduced earnings per share by approximately US$0.04. Cash generated from operations for the third quarter of fiscal 2008 was US$329 million, and the cash and marketable debt securities balance at the end of the quarter was US$3.801 billion. During the third quarter, Sun continued to leverage its cash position, spending US$300 million to repurchase 17.5 million shares of its common stock. There is currently US$500 million remaining of the US$3 billion share repurchase program announced in the company's fiscal fourth quarter of 2007. "The U.S. economy presented Sun with significant challenges in the third quarter, masking our progress in developing nations and economies across the world," said Jonathan Schwartz, CEO of Sun Microsystems. "With double digit year-over-year growth in India and Brazil, and triple digit year-over-year billings growth in our energy-efficient, SolarisTM-based Chip Multi- Threading (CMT) systems, Sun made considerable progress during the quarter. We continue to invest in the future created by open alternatives to proprietary technologies, best exemplified by the acquisition of MySQL. The world is moving to open source innovation, and Sun continues to lead that revolution." Third Quarter Highlights Sun reported year-over-year revenue growth in 12 out of its 16 sales geographies during the third quarter, with double-digit revenue growth in key international markets across EMEA, Asia Pacific and the International Americas. From a product perspective, SolarisTM-based Chip Multi-Threading systems billings more than doubled year-over-year, with the company's blade systems also delivering impressive billings growth fueled by Sun's comprehensive portfolio spanning AMD OpteronTM, Intel Xeon(R) and Sun UltraSPARC(R) offerings. Furthering its presence in the open source software marketplace, Sun announced the close of two significant acquisitions: MySQL, the world's most popular open source database provider, and innotek, whose VirtualBoxTM products provide free desktop virtualization. Sun signed a landmark collaboration agreement with The People's Republic of China Ministry of Education to cultivate integrated circuit engineering talent and industry development based upon Sun's OpenSPARCTM open source silicon platform. Sun was awarded significant contracts including funding from the Defense Advanced Research Projects Agency for a five and a half year research project focused on microchip interconnectivity via on-chip optical networks enabled by silicon photonics and proximity communication. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: JAVA) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems has subsidiaries in, among other, the United Kingdom, Netherlands, Singapore, Taiwan, Mexico, Argentina, Chile, India and Bermuda. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. TRANS ROGAL: Trustee to File Individual Reports in Court Today -------------------------------------------------------------- Carlos Enrique Wulff, the court-appointed trustee for Trans Rogal 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 May 5, 2008. Mr. Wulff verified creditors' proofs of claim until March 21, 2008. He will submit to court a general report containing an audit of Trans Rogal's accounting and banking records on June 16, 2008. Mr. Wulff is also in charge of administering Trans Rogal's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Carlos Enrique Wulff Virrey del Pino 2354 Buenos Aires, Argentina ============= B E R M U D A ============= ANNUITY & LIFE: Incurs US$79,213 Net Loss in 2008 First Quarter --------------------------------------------------------------- Annuity and Life Re (Holdings) Ltd. posted a net loss of US$79,213 for the three months ended March 31, 2008, compared to a net income of US$58,948 for the same period in 2007. Net realized investment gain for the three months ended March 31, 2008 were US$0, as compared with net realized investment gains of US$91,456 for the three months ended March 31, 2007. Gross unrealized gains on the Company's investments were US$181,149 as of March 31, 2008, as compared to gross unrealized gains of US$67,931 as of Dec. 31, 2007. The company's investment portfolio currently maintains an average credit quality of AA. Cash used by operations for the three months ended March 31, 2008 was $US16,847,599, compared to cash provided by operations of US$112,440 for the three months ended March 31, 2007. As previously announced, the company settled the arbitration case with Transamerica on Feb. 27, 2008 and closed on the sale of its U.S. insurance company, Annuity and Life Reassurance America, Inc. on Feb. 29, 2008. The company continues to explore strategic alternatives to maximize its economic value for shareholders. A cash distribution of US$0.50 per share will be made on May 15, 2008 to shareholders of record as of April 30, 2008. About Annuity Life Re (Holdings) Ltd. Bermuda-based Annuity & Life Re (Holdings), Ltd. -- http://www.alre.bm/or -- http://www.annuityandlifere.com/-- provides annuity and life reinsurance to insurers through its wholly owned subsidiaries, Annuity & Life Reassurance, Ltd. and Annuity & Life Reassurance America, Inc. Going Concern Doubt Chartered Accountants of Hamilton, Bermuda, raised substantial doubt about Annuity and Life Re (Holdings), Ltd.'s ability to continue as a going concern after it audited the company's annual report for 2004. The auditor pointed to the company's significant losses from operations and experience of liquidity demands. Annuity and Life Re incurred losses for two consecutive quarters. The company posted a net loss of US$92,056 for the three months ended June 30, 2007, compared to a net loss of US$649,949 for the same period in 2006. The company incurred a net loss from continuing operations of US$88 million for the three months ended Sept. 30, 2007, as compared to a net loss from continuing operations of US$212.2 million for the same period in 2006. SECURITY CAPITAL: To Release First Quarter 2008 Results on May 8 ---------------------------------------------------------------- Security Capital Assurance Ltd. will release its first quarter 2008 results after the close of regular stock market hours on May 8, 2008. President and Chief Executive Officer Paul S. Giordano, Executive Vice President and Chief Financial Officer David P. Shea, and Security Capital's financial guarantee subsidiary, XL Capital Assurance Inc. Executive Vice President and President Ed Hubbard, will host an earnings conference call to discuss Security Capital's first quarter 2008 results on May 9, 2008 at 8:30 am Eastern Daylight Time (EDT). The conference call will include prepared remarks by the Security Capital management team and a listen-only question and answer format. The company will accept questions via email at the following email address up to 8:00 pm EDT, May 8, 2008: InvestorRelations@scafg.com. To access the conference call: Tel. Numbers: +1 888-694-4702 (U.S.) +1 973-582-2741 (International). Passcode: 45689498 Company's Web site: http://www.scafg.com. Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a Bermuda-domiciled holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. * * * As reported in the Troubled Company Reporter-Latin America on April 2, 2008, Standard & Poor's Ratings Services lowered its rating on Security Capital Assurance Ltd.'s series A perpetual noncumulative preference shares to 'D' from 'C'. At the same time, S&P removed the rating from CreditWatch with negative implications. The rating action follows the company's failure to make its March 31, 2008, dividend payment. SECURITY CAPITAL: Unit Names Adam Bergonzi Chief Credit Officer --------------------------------------------------------------- Security Capital Assurance Ltd.'s wholly owned financial guarantee insurance subsidiary, XL Capital Assurance Inc. has named Adam T. Bergonzi, as Chief Credit Officer effective May 2, 2008. Mr. Bergonzi will replace Managing Director and Chief Credit Officer, Richard P. Heberton. The company also announced that XL Capital Assurance Inc. Senior Vice President and Head of Origination, T. Wynne Morriss, Jr. will leave the company effective May 2, 2008. "We look forward to benefiting from Adam's strong background and experience in his expanded role. We thank both Dick and Wynne for their many years of dedicated service. They were instrumental in helping to build the company, and we wish them well in their future endeavors," stated Security Capital's President and Chief Executive Officer, Paul S. Giordano. Mr. Bergonzi joined XL Capital Assurance Inc. in 2006 as a Managing Director in the credit group, where he had primary responsibility for reviewing credits including global infrastructure and project financings, as well as United States public finance. Prior to joining XL Capital Assurance, Mr. Bergonzi spent 15 years at MBIA Inc., where he held positions of increasing responsibility in MBIA's insured portfolio management, new business, finance and corporate strategy areas. He received his B.A. from Colgate University (cum laude) and received his J.D. from the New York Law School. Mr. Heberton joined XL Capital Assurance Inc. at its inception in 2000. Mr. Morriss joined XL Capital's predecessor company, Global Credit Analytics, Inc., in 1999. Both executives were members of the company's founding leadership team. Until March 2005, Mr. Heberton served as head of XL Capital's surveillance and research group. Prior to assuming his role as Head of Origination in 2006, Mr. Morriss served as head of the structured single risk group, which encompassed XL Capital's public finance, global infrastructure, power & utilities and specialized risk businesses. Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a Bermuda-domiciled holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. * * * As reported in the Troubled Company Reporter-Latin America on April 2, 2008, Standard & Poor's Ratings Services lowered its rating on Security Capital Assurance Ltd.'s series A perpetual noncumulative preference shares to 'D' from 'C'. At the same time, S&P removed the rating from CreditWatch with negative implications. The rating action follows the company's failure to make its March 31, 2008, dividend payment. SCOTTISH RE: Falling Capitalization Cues S&P to Retain WatchNeg --------------------------------------------------------------- Standard & Poor's Ratings Services said that its counterparty credit rating on Scottish Re Group Ltd. (B/Watch Neg) and its counterparty credit and financial strength ratings on Scottish Re's operating companies and the ratings on these companies' dependent unwrapped securitized deals remain on CreditWatch with negative implications. "Standard & Poor's placed these ratings on CreditWatch on Jan. 31, 2008, because of the erosion of Scottish Re's capitalization due to the declining market value of its subprime and Alt-A investments, our increased estimate of expected losses on these assets, and the meaningful risk of losing some reserve credits secured through Ballantyne Re plc," said S&P's credit analyst Robert Hafner. "Our increasing estimates of cumulative subprime and Alt-A expected losses based on the composition of such investments, by vintage and other characteristics negatively affects our view of Scottish Re's capitalization," said Mr. Hafner. "Scottish Re's announcement of a letter of intent signed with ING, the only cedent for the Ballantyne trust, moderates our concern about its ability to avert loss of significant reserve credits pending execution of the arrangement." "We continue to monitor developments and awaits the release of Scottish Re's delayed financial data, which are needed to better refine our view of expected cumulative losses and the impact on the firm's capitalization. The ratings will be lowered if a substantial risk of losing reserve credits lingers or if our investment loss estimate were to increase materially. The ratings will be affirmed if our refined investment loss estimate is in line with our current expectations and the risk of losing reserve credits is ameliorated," Mr. Hafner added. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. On Sept. 30, 2007, Scottish Re reported total assets of US$13.4 billion and shareholder's equity of US$869 million. TYCO INT'L: Reports US$222 Million Operating Income in 2Q 2008 -------------------------------------------------------------- Tyco International Ltd. reported its financial results for the fiscal second quarter of 2008. The company expects full year fiscal 2008 diluted earnings per share from continuing operations before special items to be in the range of US$2.65 to US$2.75 per share. "Our second quarter operating performance was well ahead of last year with improved operating margins in each of our businesses. Based on our first half performance and our outlook for the remainder of the year, we have increased our full year earnings guidance," said Tyco Chairperson and Chief Executive Officer, Ed Breen. "We continue to make progress on our portfolio refinement efforts, announcing an acquisition in our security business and the divestiture of businesses that no longer meet our strategic direction." As part of its portfolio refinement efforts, the company has announced several transactions including an agreement to acquire FirstService Security for approximately US$187 million to strengthen ADT's systems integration capabilities. The company also announced agreements to divest the following non-core businesses: its Infrastructure Services businesses for approximately US$805 million; its Nippon Dry-Chemical unit for US$56 million, a transaction that closed on Feb. 29, 2008; and its Ancon Building Products business for approximately US$174 million, a transaction that closed on April 30, 2008. Segment Results Revenue increased 4% with organic revenue growth of 1%. Recurring revenue grew 5% organically and improved across all regions. Systems installation and service revenue declined 3% organically due to weakness in North America and Europe, mostly as a result of lower sales to the retailer end market. This was partially offset by strong double-digit organic growth in Asia and Latin America. Operating income was US$222 million. Special items consisted of US$11 million of restructuring charges, primarily in Europe. Operating income before special items increased 6% to US$233 million and included expenses of US$27 million primarily associated with the analog-to-digital transition. Revenue increased 17% with organic revenue growth of 7% driven by continued strong growth in the Valves business (+11% organically) and the Thermal Controls business (+18% organically). This growth was partially offset by a 5% organic revenue decline in the Water business, primarily due to reduced water pipeline project activity in Australia compared to the year ago quarter. Operating income before special items increased 28% to US$143 million and the operating margin was 14%. The increase in the operating income and the operating margin before special items was due to higher revenue and improved productivity. Revenue in Fire Protection Services increased 5% with organic revenue growth of 1%. The North American SimplexGrinnell business grew 4% organically while the international fire businesses declined 5%. The decline was primarily due to the planned exit of certain non-core fire activities as well as a decision to reduce lower-margin project work. Operating income was US$77 million and the operating margin was 8.9%. The operating income before special items increased 22% to US$78 million and the operating margin before special items improved 130 basis points to 9.1% primarily because of improved operating efficiencies. Revenue increased 13% with better volume in steel products and higher pricing for both steel and copper products. Organic revenue growth was 11%. Operating income was US$72 million and included US$3 million of restructuring charges. Operating income before special items of US$75 million improved significantly, primarily as a result of better steel and copper spreads versus the prior year as well as improved productivity. Revenue increased 11% with organic revenue growth of 5%, resulting from growth across the fire suppression, electronic security and life safety businesses. Operating income was US$54 million and the operating margin was 11.5%. Special items in the quarter consisted of US$26 million of restructuring charges. Operating income before special items increased 13% to US$80 million and the operating margin before special items was 17.1%. The improvement in operating income before special items was primarily due to higher volume and improved produc tivity offset by higher R&D and sales and marketing expenses. Other Items -- Net Cash used in Operating Activities of US$2.468 billion reflects the release of US$2.960 billion of previously- funded escrow for the settlement of legacy securities class action litigation. -- The company had a free cash outflow of US$2.736 billion for the fiscal second quarter, primarily reflecting the release of the US$2.960 billion mentioned above. In addition, free cash flow included US$82 million of payments, primarily for restructuring activities. -- Corporate and Other operating expense was US$125 million and included a net charge of US$8 million for special items. -- In connection with the sale of the Ancon Building Products business, the results of this business are reported as a discontinued operation for this quarter and all prior periods. The business had revenue of US$107 million in 2007 and operating profit of US$23 million. 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. XL CAPITAL: Goldman's Conviction Buy List Position Boosts Shares ---------------------------------------------------------------- XL Capital Ltd's shares has advanced in New York trading following Goldman Sachs Group Inc's placing the company on its "conviction buy list", Bloomberg News reports. Bloomberg cites Goldman analysts as saying that the current value of the company's shares assumes a "worst case scenario" in which the company's partly-owned bond insurer Security Capital Assurance Ltd.'s business went out. The report relates that New Chief Executive Officer Michael McGavick has been convincing investors that risks from subprime mortgages are in the past after a US$1.2 billion loss in the fourth quarter when XL wrote down the value of investments including a stake of more than 40 percent in Security Capital. Mr. McGavick will concentrate more on property and casualty coverage sales outside the U.S., Bloomberg adds. The company, whose stock has lost more than half its value in the past year, upped US$1.45, or 4.3%, to US$34.88 last Tuesday in New York Stock Exchange composite trading the report points out, adding that Goldman analyst Thomas Cholnoky estimates the company to further increase for about 20% to US$40 in 12 months. Headquartered in Bermuda, XL Capital Ltd. -- http://www.xlcapital.com/-- writes liability insurance and reinsurance worldwide, specializing in low-frequency, high- severity risks from riots to natural disasters. The company writes policies through numerous subsidiaries, many of them offshore, and also manages a Lloyd's of London syndicate. XL's coverage includes general and executive liability, property, and political risk insurance. Its reinsurance covers property, aviation, energy, nuclear accident, and professional indemnity. * * * As reported in the Troubled Company Reporter-Latin America on April 3, 2008, Fitch Ratings downgraded XL Capital Ltd.'s Class A1 to 'BB' from 'A' and Class A2 to 'BB' from 'A' and removed it from Rating Watch Negative. Fitch also downgraded XLCA's Insurer Financial strength rating to 'BB' and removed the IFS from Rating Watch Negative. =========== B R A Z I L =========== BANCO NACIONAL: Mulling Approval of Jirau Hydro Plant Financing --------------------------------------------------------------- Business News Americas says that Banco Nacional de Desenvolvimento Economico e Social aka BNDES is thinking over the approval to finance the construction of the 3.3-gigawatt Jirau hydro plant on the Madeira river. BNDES' Infrastructure Director Wagner Bittencourt told BNamericas, "If everything goes okay, we expect to approve the loan for the construction of Jirau in the last months of 2008. However, disbursements for the project will only start in 2009." As reported in the Troubled Company Reporter-Latin America on May 1, 2008, BNDES set up its support and a potential shareholding interest for the Jirau plant construction. Located on Madeira River, in Rondonia, the plant will deliver an installed capacity of 3,300 megawatts. It is one of the largest energy projects of the Growth Acceleration Project. A bidding process will start on May 12. Brazilian power regulator Aneel has pushed back the auction for the Jirau project to May 19. The price cap for Jirau is BRL91 per megawatt-hour, International Water Power Magazine 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. BANCO NACIONAL: To Approve Santo Antonio Plant Funding in August ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES will authorize in August the financing for the construction of the 3.15-gigawatt Santo Antonio plant on the Madeira river, Business News Americas reports. Banco Nacional de Desenvolvimento Economico e Social's Infrastructure Director Wagner Bittencourt told BNamericas that the bank would start disbursement one month after the approval of the financing. Mr. Bittencourt commented to BNamericas, "Disbursements in 2008 will be small because construction starts in September." Most of the money for the project will be granted in 2009 and 2010 to the Madeira Energia consortium, which won the Santo Antonio auction in 2007, in 2009 and 2010, BNamericas states, citing Mr. Bittencourt. 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. CNH GLOBAL: S&P Upgrades Corporate Credit Rating From 'BB+' ----------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on CNH Global N.V. to 'BBB-' from 'BB+' after taking the same rating action on CNH's parent company, Italy-based auto and truck manufacturer Fiat SpA (BBB-/Stable/A-3). The outlook is stable. Owing to the investment-grade rating, recovery methodology is no longer applicable and Standard & Poor's has thus withdrawn its '4' recovery rating on Case Corp.'s and Case New Holland Inc.'s senior unsecured debt. The corporate credit rating and outlook on publicly traded CNH are the same as those on Fiat because of the close ties between the two. Fiat views CNH as a core business and continues to provide strong liquidity support to CNH by way of intercompany loans and bank loan guarantees. Fiat has a roughly 90% equity ownership stake in CNH. As of March 31, 2008, CNH had $1 billion of cash deposited with Fiat affiliates' cash management pools (repayable to CNH on one day's notice). "Because S&P views CNH as core to the Fiat Group, a positive or negative rating action on Fiat would result in the same action on CNH," said Standard & Poor's credit analyst Dan Picciotto. "If S&P ceases to view CNH as core to the Fiat Group, and if CNH's stand-alone financial profile fails to support the ratings, S&P could take a negative rating action." CNH Global N.V. -- http://www.cnh.com/-- (NYSE: CNH) manufactures agricultural and construction equipment businesses. CNH Global is a majority-owned subsidiary of Fiat S.p.A. (MILAN: FIA) (NYSE: FIA). Aside from the U.S. and Canada, the company also has manufacturing facilities in Austria, Belgium, France, Italy, Poland, United Kingdom, China, India, Brazil, and Mexico, among others. DELPHI CORP: Court Approves DIP Facility Extension & Refinancing ---------------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York authorized Delphi Corp. and its debtor-affiliates to effectuate an extension to Dec. 31, 2008, and obtain a refinancing of its US$4,095,820,240 DIP facility, pursuant to an amendment and restatement of the First Amended and Restated DIP Credit Agreement dated Nov. 20, 2007. Under the Existing Credit Agreement, JPMorgan Chase Bank, N.A., as lender and administrative agent, provided loan facilities of US$4,095,820,240 to Delphi, as borrower. JPMorgan has agreed to arrange refinancing of the DIP Facility, which consists of: * Tranche A. A US$1,000,000,000 first priority revolving credit facility, * Tranche B. An up to US$600,000,000 first priority term loan, and * Tranche C. A US$2,495,820,240 second priority term loan. "We expect to close shortly," John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, said of the loan syndication, according to a Bloomberg News report. "Sometime within the next 10 days." The proposed Second Amended and Restated DIP Credit Agreement provides for these terms: Borrower: Delphi Corp. Guarantors: Delphi's subsidiaries Lenders: [_______] Admin. Agent: JPMorgan Chase Joint Book Runners & Lead Arrangers: JPMorgan Securities Inc., [*] and [*] Syndication Agent for Tranche A and Tranche B Lenders: Citicorp USA, Inc. Commitments: Tranche A initially at US$1,000,000,000. Tranche B initially at US$600,000,000, and Tranche C initially at US$2,495,820,240. Use of Proceeds: The proceeds of the Tranche A, Tranche B and Tranche C borrowings made on the effective date of the Amendment will be used to pay in part all the respective Existing DIP Loans outstanding on the Effective Date. The remaining proceeds of the Tranche A Loans made and the Letters of Credit issued after the Effective Date will be used for working capital and for other general corporate purposes of the Debtors, including the making of pension contributions, the payment of transaction costs, fees and expenses in respect of transactions in connection with the Amendment and Transactions and the Chapter 11 cases and the payment of Restructuring Costs. Letters of Credit: Delphi may request the issuance of letters of credit for its own account or the account of any subsidiary, each of which will expire on the earlier of (i) one year after the date of the issuance of the L/C and (ii) 365 days after the Maturity Date. Maturity Date: December 31, 2008. Conditions to Effectiveness: Conditions include JPMorgan will have received (i) an amendment fee equal to (A) 150 basis points of the Commitments of each Tranche A Lenders or Tranche B Lenders and (B) 200 basis points of the Commitments of each Tranche C Lender; and (ii) fees provided under a Fourth Amendment Fee Letter dated as of April 25, 2008. Interest on Loans: Each ABR Loan will bear interest at a rate per annum equal to the Alternate Base Rate plus (A) if a Tranche A Loan, 3.00%, (B) if a Tranche B Loan, 3.00% and (C) if a Tranche C Loan, 4.25%; provided that if the applicable Alternate Base Rate at the time of determination of the interest rate for a Tranche B Loan or a Tranche C Loan is below 4.25%, the Alternate Base Rate for the Tranche B Loan or Tranche C Loan for the Interest Period will be deemed to be 4.25%. Each Eurodollar Loan will bear interest at a rate per annum equal, during each Interest Period applicable thereto, to the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus (A) if a Tranche A Loan, 4.00%, (B) if a Tranche B Loan, 4.00% and (C) if a Tranche C Loan, 5.25%; provided that if the applicable Adjusted LIBO Rate at the time of determination of the interest rate for a Tranche B Loan or a Tranche C Loan is below 3.25%, the Adjusted LIBO Rate for the Tranche. "Alternate Base Rate" will mean, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on the day plus 1/2 of 1%, subject to certain conditions. EBITDAR Covenant: EBITDAR for Delphi and its subsidiaries for each rolling 12 fiscal month period ending on the last day of each fiscal month to be less than the amounts set forth: Period Ending Global EBITDAR ------------- -------------- April 30, 2008 US$475,000,000 May 31, 2008 US$575,000,000 June 30, 2008 US$600,000,000 July 31, 2008 US$575,000,000 August 31, 2008 US$550,000,000 September 30, 2008 US$625,000,000 October 31, 2008 US$600,000,000 November 30, 2008 US$675,000,000 Default Interest: If the Borrower or any Guarantor, as the case may be, will default in the payment of the principal of or interest on any Loan or in the payment of any other amount becoming due hereunder, whether at stated maturity, by acceleration or otherwise, it will pay interest, to the extent permitted by law, on all Loans and overdue amounts up to the date of actual payment at a rate per annum equal to (x) the rate then applicable for the Borrowings plus 2.0% and (y) in the case of all other amounts, the rate applicable for Alternate Base Rate plus 2.0%. Commitment Fees: Delphi will pay to the Tranche A Lenders a commitment fee for the period commencing on the Effective Date to the Termination Date or the earlier date of termination of the Tranche A Commitment, computed at the rate of 1.0% per annum on the average daily Unused Total Tranche A Commitment. L/C Fees: Delphi will pay with respect to each Letter of Credit (i) to JPMorgan on behalf of the Tranche A Lenders a fee calculated at the rate of 4.00% per annum, on the daily average L/C Exposure and (ii) to the issuing lender its customary fees for issuance, amendments and processing. In addition, Delphi agrees to pay each issuing lender for its account a fronting fee of 0.25% per annum in respect of each Letter of Credit issued by the issuing lender, for the period from and including the date of issuance of the L/C to and including the date of termination of the L/C. Priority and Liens: Subject to the carve-out for fees to the Bankruptcy Court, the U.S. Trustee and retained professionals, pursuant to Section 364(c)(1) of the Bankruptcy Code, obligations under the DIP Facility will at all times constitute allowed claims having priority over any and all administrative expenses, diminution claims and all other claims, including all administrative expenses of the kind specified in Sections 503(b) or 507(b) of the Bankruptcy Code. Claims in respect of obligations under the Tranche A Facility and the Tranche B Loan will be senior in priority to the claims granted under the in respect of the Tranche C Loan. The DIP obligations will also be secured by other liens and interests pursuant to Sections 364(c)(2), 364(c)(3) and 364(d)(1). A full-text copy of the April 29 draft of the Second Amended and Restated DIP Credit Agreement is available for free at: http://bankrupt.com/misc/Delphi_Draft_RefinancedDIP.pdf About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Court Okays Up to US$650MM in GM Credit Extensions --------------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York authorized Delphi Corp. and its debtor-affiliates to: (i) obtain extensions of credit of up to US$650 million from General Motors Corp. and (ii) pay undisclosed fees in connection with the loan. GM, through an affiliate, will provide US$650 million in advances to Delphi in anticipation of the effectiveness of their Master Restructuring Agreement and Global Settlement Agreement, both dated Sept. 6, 2007, and amended Dec. 7, 2007. As reported in the Troubled Company Reporter on April 29, 2008, the parties' agreement provides for these terms: Borrower: Delphi Corp. Guarantors: Other Debtors Lender: General Motors Corp. Commitment: GM will provide loans to Delphi beginning May 7, 2008: (a) prior to June 1, 2008, in an aggregate outstanding principal amount not to exceed US$200,000,000, (b) from and after June 1, 2008, and prior to July 1, 2008, in an aggregate outstanding principal amount not to exceed US$300,000,000 and (c) from and after July 1, 2008, in an aggregate outstanding principal amount not to exceed US$650,000,000. Scheduled Termination Date: The earliest of (a) Dec. 31, 2008, (b) the date on or after the effectiveness of the amendments to each of the Master Restructuring Agreement and the Global Settlement Agreement, on which GM or its affiliates has paid to or for the credit or the account of the Debtors from and after the Effective Date an amount equal to or greater than US$650,000,000 in the aggregate under the agreements and (c) the date on which a Reorganization Plan becomes effective. Covenants: The parties agree to, among other things, use their good-faith, commercially reasonable efforts to (a) negotiate and enter into amendments to each of the Global Settlement Agreement and Master Restructuring Agreement as soon as practicable (the parties desire to enter into amendments on or prior to July 1, 2008), and (b) obtain the consent of Delphi's statutory committees with respect to the amendments. Interest Rates: Adjusted LIBO Rate plus [__]% Interest Payments: Interest payment date will mean the last day of each March, June, September and December, commencing Sept. 30, 2008. Default Interest: Rate for Advances plus 2.0%. Priority: The Debtors' obligations to GM will constitute allowed claims having priority pursuant to Section 503(b)(1) of the Bankruptcy Code. GM's set-off rights will rank ahead of general unsecured claims at all times. Conditions to Effectiveness: The GM Agreement will be effective, when, among other things, the Court approves an amendment to the Amended and Restated Revolving Credit, Term Loan and Guaranty Agreement, dated as of Nov. 20, 2007, originally signed by JPMorgan Chase Bank, N.A., as administrative agent, and Citicorp USA, Inc., which amendment will extend the termination date thereunder to a date no earlier than Dec. 31, 2008. A copy of the April 29 draft of the Agreement is available for free at http://bankrupt.com/misc/Delphi_GM_Agreement2.pdf About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DUERR AG: Earns EUR4.4 Million for First Quarter Ended March 31 --------------------------------------------------------------- The Duerr Group AG posted EUR4.5 million in net profit on EUR356.2 million in net revenues for the first quarter ended March 31, 2008, compared with EUR2.1 million in net losses on EUR304.1 billion in net revenues for the same period in 2007. "We have taken a first important step towards raising the EBIT margin to 5% in 2008 as announced," CEO Ralf Dieter said. "Duerr aims to increase sales revenues by up to 10%." Net financial debt was reduced to EUR57.2 million from EUR60.7 million. Orders on hand were up 20% to EUR1.2 billion. The Group’s gross margin rose by 0.4 percentage points to 17.0%. Besides higher capacity utilization, this also reflects the continuous improvement of internal processes. At 3.5%, the increase in administrative and selling expenses was held well below the growth in sales revenues. Positive Outlook Unchanged For 2008, Duerr expects incoming orders on a level with last year provided the general economic conditions and currency situation do not take a decisive turn for the worse. Sales revenues will probably increase by up to 10%. Duerr forecasts a further strong improvement in earnings, to which a higher gross margin and the earnings improvement targeted in final assembly conveyor systems are expected to contribute. As a result of the tax reform the effective tax rate should not be more than 30% (2007: 39%) which will additionally boost earnings. Duerr aims to hold cash flow at least at the 2007 level. The company therefore expects further improvements in net financial debt and liquidity. About Duerr Headquartered in Stuttgard, Germany, The Duerr Group -- http://www.durr.com/en/-- supplies products, systems, and services for automobile manufacturing. Duerr designs and builds paint shops and final assembly plants. The Duerr Group also operates in Czech Republic, France, U.K., Italy, Netherlands, Poland, Russia, Slovakia, Spain, Turkey, Australia, Brazil, China, India, Japan, Mexico, South Africa, South Korea and the U.S.A. * * * As reported in the TCR-Europe on March 3, 2008, Standard & Poor's Ratings Services revised its outlook to positive from stable on Duerr AG. S&P also affirmed its 'B' long-term corporate credit rating on the group. Duerr AG also carries B2 Corporate Family, B2 Probability of Default and Caa1 Senior Subordinate ratings from Moody's Investor Service. Moody's said the outlook is stable. GENERAL MOTORS: Posts US$3.3 Bil. Net Loss in 2008 First Quarter ---------------------------------------------------------------- General Motors Corp. disclosed financial results for the first quarter of 2008, marked by improved adjusted automotive operating performance, rapid growth in emerging markets, continued cost performance in GM North America (GMNA) operations and liquidity of nearly US$24 billion, despite the impact of the American Axle & Manufacturing Holdings Inc. strike on North American operations and weakness in the U.S. auto industry. GM reported a net loss of US$3.3 billion in the first quarter of 2008, compared with a net loss from continuing operations of US$42 million in the year-ago quarter. "We continue to leverage our global product portfolio to take advantage of tremendous growth in key emerging markets, while at the same time taking the appropriate actions to deal with the challenging economic conditions in the U.S.," GM Chairman and Chief Executive Officer, Rick Wagoner said. Adjusted automotive earnings before taxes were US$392 million, up US$161 million despite the significant impact of the American Axle strike and weak U.S. auto industry (reported earnings declined US$118 million). These positive results were driven by strong combined earnings before taxes of US$1 billion in GM Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific (GMAP) and GM Europe (GME), which more than offset a loss at GMNA. Excluding special items, GM posted an adjusted net loss of US$350 million in the first quarter of 2008, reflecting losses at GMAC and tax expenses. These results compare to an adjusted net loss from continuing operations of US$10 million in the first quarter of 2007. The reported results for the first quarter of 2008 include unfavorable special items totaling US$2.9 billion. The charges include US$1.45 billion to record a non-cash partial impairment of our equity investment in GMAC. Based on current market pricing, GM concluded that the estimated fair value of the common and preferred equity interests it holds in GMAC were approximately US$1.45 billion less than GM's carrying value. GM also took a non-cash charge of US$731 million to increase GM's liability for estimated net costs associated with GM's support of Delphi's bankruptcy and restructuring efforts. This charge primarily results from updated estimates reflecting uncertainty around the nature, value and timing of GM's recoveries. In addition, GM recorded US$394 million in non-cash tax-related valuation allowances related to deferred tax assets in Europe, and US$324 million in charges related to restructuring actions in North America and Europe. Total revenue for the first quarter of 2008 was US$42.7 billion, down slightly from US$43.4 billion in the year-ago quarter primarily due to lower North America automotive and financial services and insurance revenues. Automotive revenues outside of North America were up over 20%, with strong growth in China, Brazil, Russia and India. GM Automotive Operations Adjusted profits from GM's global automotive operations improved, with first quarter 2008 earnings before tax of US$392 million on an adjusted basis (reported earnings before tax of US$68 million), compared to US$231 million in the year-ago period (reported earnings before tax of US$186 million). As reported in the Troubled Company Reporter on April 25, 2008, GM sold 2.25 million vehicles in the first quarter of 2008, down less than 1% from 2.27 million units in the first quarter 2007, with a record 64% of sales outside of the United States. Unit sales outside GMNA were up 8% compared with the same quarter last year. Robust sales in the first quarter in GM's GMLAAM and GMAP regions, and improved sales in the GME region helped offset a 10% unit decline in GMNA. GMNA revenue for the first quarter 2008 was US$24.5 billion, compared to US$28.1 billion in the year-ago period. The decline in GMNA first quarter revenue was significantly impacted by the lost production due to the American Axle strike. Other factors include a softer U.S. market and planned actions to maintain lean inventories. With the industry shift toward more fuel- efficient vehicles, GM's most recently launched passenger cars and crossovers, including the Cadillac CTS, GMC Acadia, Buick Enclave and the all-new Chevrolet Malibu continue to perform well in the marketplace. The decline in GMNA first quarter earnings was more than accounted for by the loss of 100,000 production units resulting from the American Axle strike, which had an estimated impact to earnings of US$0.8 billion. Other factors included lower volumes resulting from a softer U.S. market and lower market share, as well as shifts in product mix. Partially offsetting the declines were favorable material and structural cost performance and commodity hedging gains and foreign exchange. GME Revenue was up 17% and adjusted earnings before tax improved by US$137 million. GME's improved earnings for the first quarter were driven by improved material cost performance, commodity hedging gains and reduced warranty costs, which were partially offset by negative foreign exchange and unfavorable country mix. GME had record first-quarter sales volumes of 572,000 units. Adjusted earnings before tax in the GMLAAM region more than doubled in the first quarter of 2008, driven by continued strong market growth and gains in GM market share in the region. GMLAAM revenue was up over 33 percent and volumes were up 20%, setting new first-quarter records for both unit sales and revenue. In addition, Argentina, Egypt and North Africa each set new quarterly sales records. GMAP adjusted earnings before tax increased by 49%, driven by strong volume and improvements in material cost performance, which were partially offset by mix and pricing deterioration and increased structural costs incurred to support growth. Revenue and earnings before tax improved significantly due to the overall volume gains, although market share was down slightly primarily due to declines in China, Australia and Korea. Cash and Liquidity Cash, marketable securities, and readily-available assets of the Voluntary Employees' Beneficiary Association trust totaled US$23.9 billion on March 31, 2008, down from US$24.7 billion on March 31, 2007. The change in liquidity reflects adjusted negative operating cash flow of US$3.6 billion in the first quarter 2008. The decrease was driven largely by lower production in GMNA, including the impact of the American Axle strike. Including undrawn, committed U.S. credit facilities of approximately US$7 billion, GM has access to more than US$30 billion in liquidity. Looking Forward In light of the current state of the U.S. economy and automotive industry, GM has revised its 2008 U.S. total industry seasonally adjusted annual rate outlook to the mid to high 15 million unit range, down from the low 16 million unit range. As a result of the anticipated softer automotive industry, GM disclosed earlier this week that it will eliminate a shift of production at four assembly plants: Janesville, Wisconsin; Pontiac and Flint, Michigan, and Oshawa, Ontario. "We remain focused on taking the actions necessary to assure GM's long-term success -- product excellence, leadership in advanced propulsion technology, growth in emerging markets, and accelerating the restructuring of our U.S. business to achieve sustainable profitability," Mr. Wagoner said. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on April 29, 2008, Moody's Investors Service changed the rating outlook for General Motors Corporation to negative from stable, but affirmed the company's B3 corporate family rating and its SGL-1 speculative grade liquidity rating. As reported on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/B-3) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expects American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. To resolve the CreditWatch listings, S&P's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. As reported in the Troubled Company Reporter-Latin America on Feb. 29, 2008, Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. PRIDE INTERNATIONAL: Bags Five-Year Deal for Further Expansion -------------------------------------------------------------- Pride International Inc. has been awarded a five-year contract from a subsidiary of BP for Pride's advanced-capability, ultra- deepwater drillship that is scheduled for delivery in mid-2010. The unit is being constructed at the Samsung Heavy Industries, Co. Ltd. (SHI) shipyard in Geoje, South Korea on a fixed-price basis and is expected to be initially utilized in the U.S. Gulf of Mexico, with further operations possible on BP's other global deepwater interests. The drillship is one of three Pride ultra- deepwater units under construction at the SHI shipyard. All three units have now been awarded contracts with durations of at least five years. The five-year contract is expected to commence during the fourth quarter of 2010, following the completion of shipyard construction, mobilization of the rig to an initial operating location and customer acceptance testing. Revenues that could be generated over the five-year contract term, excluding revenues for the reimbursement of costs associated with the mobilization of the rig, are approximately US$984 million. The contract also provides for a cost escalation provision effective from April 30, 2008 through the five-year contract term. The rig will be one of the most advanced ultra-deepwater drilling and completions units in the offshore industry, capable of drilling in water depths of up to 12,000 feet (equipped for 10,000 feet) and drilling to a total vertical depth of up to 40,000 feet. The rig will offer a variable deck load of 20,000 metric tons, dynamic positioning in compliance with DPS-3 certification, expanded drilling fluids capacity, a 1,000 ton capacity top drive and living quarters for up to 200 personnel. The rig will be modified from the original design to improve on its already extensive off-line operational capabilities. Design modifications include the addition of a 160-metric ton active- heave compensated construction crane that allows the rig to perform subsea construction activities, such as the placement of production trees and manifolds in up to 10,000 feet of water without obstructing the critical path of drilling deepwater wells, and an additional 2,000 feet of marine riser. The unit will not initially be functional as a dual-activity rig, but can be modified to add this functionality in the future. Pride has previously purchased the license for the use of dual-activity from the patent holder. Including the modifications requested by our customer to the rig's technical features, commissioning and system-integrated testing, the company has revised the estimated cost to construct the rig to approximately US$725 million, excluding capitalized interest, and expects to fund the construction of the unit with available cash and borrowings. Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc., stated, "With this five-year contract award, Pride has further expanded its service to BP to now include two advanced-capability, ultra-deepwater drillships currently under construction and expected to begin operations in the U.S. Gulf of Mexico during 2010, the management of drilling activities on three deepwater production facilities in the U.S. Gulf of Mexico and deepwater drilling operations in the Eastern Mediterranean. This contract award allows us to further build a greater presence in the ultra-deepwater U.S. Gulf of Mexico, a strategically important and technically challenging region." Pride International, Inc., headquartered in Houston, Texas, is one of the world's largest offshore drilling contractors, operating a fleet of 64 rigs, including two deepwater drillships, 12 semisubmersible rigs, 28 jackups, 10 platform rigs, five managed deepwater rigs and seven Eastern Hemisphere- based land rigs. The company also has three ultra-deepwater drillships under construction with expected deliveries in 2010 and 2011. Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Latin America on April 29, 2007, Fitch Ratings currently maintained these ratings for Pride International Inc.: Issuer Default Rating at 'BB'; Senior unsecured at 'BB'; Senior secured bank facility at 'BBB-'; and Senior convertible notes at 'BB'. Fitch said the Rating Outlook is Stable. SADIA SA: Consolidated Net Income Doubles to BRL216MM in 1Q 2008 ---------------------------------------------------------------- Sadia S.A. reported consolidated net income of BRL216.14 million in the three months ended March. 31, 2008, more than twice the BRL96.15 million earned in the same quarter in 2007. Net of sales deductions, Sadia's consolidated operating revenues for the Jan.-Mar. 2008 period aggregated BRL2.29 billion, up 21% compared to that earned in the corresponding three-month period last year. With cost of goods sold of BRL1.74 billion, the company booked a gross profit of BRL554.07 million in the latest quarter under review. The bulk of the operating expenses was from selling expenses, which totaled BRL355.45 million. Consolidated balance sheet as of March 31, 2008, shows total assets of BRL8.79 billion, total liabilities of BRL5.68 billion, minority interest in subsidiaries of BRL29.06 million, resulting in a shareholders' equity of BRL3.07 billion. A copy of the company's interim results for the quarter ended March 31, 2008, is available for free at: http://ResearchArchives.com/t/s?2b68 Headquartered in Sao Paulo, Brazil, Sadia S.A. -- http://www.sadia.com-- operates in the agro industrial and food processing sectors in Brazil and primarily produces a range of processed products, poultry, and pork. The company distributes around 1,000 different products through distribution and sales centers located in Brazil, China, Japan, and Italy, among others. * * * 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. SANYO ELECTRIC: Matsushita Tie-Up Seen, Yomiuri Shimbun Says ------------------------------------------------------------ Sanyo Electric Co. is considering a business and capital tie-up with Matsushita Electric Industrial Co. in an effort to emerge from a long business slump, The Yomiuri Shimbun reports. According to the report, the plan would involve three finance companies with a sizable number of shares in Sanyo--including Sumitomo Mitsui Banking Corp.--divesting those shares to Matsushita. In a media release dated April 28, 2008, Sanyo stated that media reports about a possible merger of operations between Matsushita and Sanyo were not announced by either company and are untrue. For the three-month period ended December 31, 2007, Sanyo reported JPY12,778 million in net income on net sales of JPY597,165 million, compared to a net loss of JPY7,295 million on net sales of JPY588,862 million for the comparable quarter in 2006. Sanyo's balance sheet as of December 31, 2007, showed total assets of JPY1,866,682 million, total liabilities of JPY1,502,725 million, and total shareholders' equity of JPY337,732 million. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed Sanyo Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. The company also carries Standard & Poor's 'BB-' long-term corporate credit rating. THERMADYNE HOLDINGS: To Hold Annual Meeting on Tuesday ------------------------------------------------------ Thermadyne Holdings Corp. will h