/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/080506.mbx 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 Tuesday, May 6, 2008, Vol. 9, No. 89 Headlines A R G E N T I N A BANCO MACRO: Will Release First Quarter 2008 Earnings on May 8 CHRYSLER LLC: Seeks to Sell Two Michigan Axle Plants for US$400M EVOLUCION TEXTIL: Trustee to File Individual Reports Tomorrow FARMACIA DE LA IMPRENTA: Claims Verification Deadline Is May 19 KAVUESA SA: Proofs of Claim Verification Deadline Is July 23 MAYA-QUINTANA: Trustee to File Individual Reports Tomorrow OR MAZAL: Trustee Verifies Proofs of Claim Until May 29 QUEBECOR WORLD: Names R. Benson as Chief Restructuring Officer REDES URBANAS.COM: Trustee to File General Report Tomorrow REPES SA: Trustee to File Individual Reports in Court Tomorrow SHAMA SA: Trustee to Present General Report in Court Tomorrow UP GRADE: Proofs of Claim Verification Is Until July 2 B E R M U D A BRUNSWICK COMPANY: Sets Shareholders Meeting for May 28 HEDGE HOLDINGS: Proofs of Claim Filing Deadline Is May 16 HEDGE HOLDINGS: Sets Final Shareholders Meeting for June 6 IPOC INTERNATIONAL: BVI Court Confiscates Over US$45MM From Firm INTELSAT LTD: Commences Change of Control Offers MAN AHL: Proofs of Claim Filing Deadline Is May 16 MAN AHL: Sets Final Shareholders Meeting for June 6 TYCO INT'L: Inks US$73.3 Mil. Settlement Pact With New Jersey B O L I V I A ASHMORE ENERGY: Bolivian Gov't to Take Control of Firm's Unit B R A Z I L BLOUNT INT'L: March 31 Balance Sheet Upside-Down by US$43.8 Mil. COMPANHIA SIDERURGICA: Tata Wants Firm's Nacionale Minerios JAPAN AIRLINES: Cuts FY2007 Operating Revenue Forecast by 0.4% JAPAN AIR: To Sell 49.4% Stake in Credit-Card Unit to Mitsubishi GENERAL MOTORS: Total April 2008 Sales Decrease 16 Percent KRATON POLYMERS: Hikes NorthAm and LatAm Product Prices NORTEL NETWORKS: Net Loss Widens to US$138MM in 2008 First Qtr. SUL AMERICA: Concludes Subsidiary's Delisting From BOVESPA SUN MICROSYSTEMS: To Cut 2,500 Jobs to Save US$220MM in Costs TAM SA: Shareholders Agree on Appropriation of 2007 Income UNIAO DE BANCOS: Completes US$200 Million Future Securitization UNIAO DE BANCOS: Fitch Affirms Individual Rating at 'C' C A Y M A N I S L A N D S APPLEGARTH INVESTMENTS: Proofs of Claim Filing Deadline Is May 8 EASTERN PROMISE: Deadline for Proofs of Claims Filing Is May 8 MELLON YIELD: Proofs of Claim Filing Deadline Is May 8 ORBANI FUND: Deadline for Proofs of Claim Filing Is May 8 PARMALAT SPA: Settles U.S. Shareholders' Class Action SATELLITE SP: Proofs of Claim Filing Is Until May 8 C H I L E CORPORACION NACIONAL: El Tiniente Mine Shutdown May Last Today C O L O M B I A AMPEX CORPORATION: Shareholder Wants Equity Committee Appointed ECOPETROL SA: Halts Operations at Cano Pipeline Due to Attack C O S T A R I C A COVANTA ENERGY: S&P Alters Outlook to Pos., Holds 'BB-' Rating SIRVA INC: Court Extends Receivables Sale Agreement Expiry Date J A M A I C A NATIONAL WATER: Fails to Supply Potable Water M E X I C O EMPRESAS ICA: To Face La Peninsular in Metro System Auction LEAR CORP: Annual Stockholders Meeting to be Held Thursday LEAR CORPORATION: Earns US$78.2 Million for Q1 Ended March 29 LIBBEY INC: Loses US$3.5 Million in First Quarter Ended March 31 NWT URANIUM: Releases Drill Result of Picachos Project in Mexico VISTEON CORP: March 31 Balance Sheet Upside-Down by US$136 Mil. P U E R T O R I C O CHILDREN'S TRUST: Fitch Puts 'BB' Rating on US$56,875,888 Bonds HEALTHSOUTH CORP: Buying Rehabilitation Hospital of South Jersey V E N E Z U E L A PETROLEOS DE VENEZUELA: Eyes 3.45MM Barrels of Daily Oil Output REVLON INC: March 31 Balance Sheet Upside-Down by US$1.1 Billion V I R G I N I S L A N D S NVIDIA CORP: Court Rejects Trustee's Claim for US$100 Million X X X X X X * Large Companies With Insolvent Balance Sheet - - - - - ================= A R G E N T I N A ================= BANCO MACRO: Will Release First Quarter 2008 Earnings on May 8 -------------------------------------------------------------- Banco Macro S.A. issued a webcast alert for its First Quarter 2008 Earnings Conference Call. Date: May 9, 2008 Time: 11:00 am Eastern Time/ 12:00 pm Buenos Aires Time Presenting for Banco Macro: Jorge Pablo Brito, Board Member Guillermo Goldberg, Deputy General Manager Jorge Scarinci, Finance Manager and Investor Relations To participate: Tel. Numbers: (877) 718-5092 (U.S. Participants) (719) 325-4803 (outside U.S.) Conference ID: Banco Macro Banco Macro will report its First Quarter 2008 Earnings on May 8, 2008, after the market close. Headquartered in Buenos Aires, Argentina, Banco Macro (NYSE: BMA; Buenos Aires: BMA) -- http://www.macro.com.ar/-- had consolidated assets of ARS11.6 billion (US$3.7 billion) and consolidated deposits of ARS6 billion (US$2 million) as of June 2007. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Fitch Ratings affirmed Banco Macro SA's Foreign and local currency long-term Issuer Default Ratings at 'B+', Foreign and local currency short-term IDRs at 'B', and Individual at 'D'. Fitch said the rating outlook is stable. CHRYSLER LLC: Seeks to Sell Two Michigan Axle Plants for US$400M ---------------------------------------------------------------- Chrysler LLC offered to sell two axle facilities in Michigan for US$400 million, and approached private equity firms and axle suppliers Dana Holding Corp. and American Axle and Manufacturing Holdings Inc., The Wall Street Journal reports citing unnamed sources. WSJ relates that Chrysler is selling its unfinished Maryville plant and the Detroit Axle. However, no buyers have come forward. Chrysler did not comment on the matter. 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. EVOLUCION TEXTIL: Trustee to File Individual Reports Tomorrow ------------------------------------------------------------- Jorge Alberto Vazquez, the court-appointed trustee for Evolucion Textil S.R.L.'s reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on May 7, 2008. Mr. Vazquez verified creditors' proofs of claim until March 20, 2008. He will submit to court a general report containing an audit of Evolucion Textil's accounting and banking records on June 19, 2008. The debtor can be reached at: Evolucion Textil S.R.L. Yerbal 3150/52 Buenos Aires, Argentina The trustee can be reached at: Jorge Alberto Vazquez Bartolome Mitre 2593 Buenos Aires, Argentina FARMACIA DE LA IMPRENTA: Claims Verification Deadline Is May 19 --------------------------------------------------------------- Rodolfo Venegas, the court-appointed trustee for Farmacia de la Imprenta SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 19, 2008. Mr. Venegas will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 40, 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 Farmacia de la Imprenta 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 Farmacia de la Imprenta's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Venegas is also in charge of administering Farmacia de la Imprenta's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Farmacia de la Imprenta SRL Migueletes 986 Buenos Aires, Argentina The trustee can be reached at: Rodolfo Venegas Avenida Corrientes 880 Buenos Aires, Argentina KAVUESA SA: Proofs of Claim Verification Deadline Is July 23 ------------------------------------------------------------ Juan Roque Treppo, the court-appointed trustee for Kavuesa SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 23, 2008. Mr. Treppo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11, 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 Kavuesa 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 Kavuesa's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Treppo is also in charge of administering Kavuesa's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Kavuesa SA Vicente Lopez 2233 Buenos Aires, Argentina The trustee can be reached at: Juan Roque Treppo Sarmiento 1183 Buenos Aires, Argentina MAYA-QUINTANA: Trustee to File Individual Reports Tomorrow ---------------------------------------------------------- Lidia Roxana Martin, the court-appointed trustee for Maya- Quintana S.A.'s reorganization proceeding, will present in the National Commercial Court of First Instance in Buenos Aires the validated claims as individual reports on May 7, 2008. Ms. Martin verified creditors' proofs of claim until March 28, 2008. She will submit to court a general report containing an audit of Galvani's accounting and banking records on June 19, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Dec. 5, 2008. The debtor can be reached at: Maya-Quintana S.A. Coronel Pagola 4170/4172 Buenos Aires, Argentina The trustee can be reached at: Lidia Roxana Martin Avenida Cordoba 1352 Buenos Aires, Argentina OR MAZAL: Trustee Verifies Proofs of Claim Until May 29 ------------------------------------------------------- Cesar Stock, the court-appointed trustee for Or Mazal SA's reorganization proceeding, will be verifying creditors' proofs of claim until May 29, 2008. Mr. Stock will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 10 in Buenos Aires, with the assistance of Clerk No. 20, 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 Or Mazal 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 Or Mazal'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 May 29, 2009. The debtor can be reached at: Or Mazal SA Catamarca 221 Buenos Aires, Argentina The trustee can be reached at: Cesar Stock Corrientes 4149 Buenos Aires, Argentina QUEBECOR WORLD: Names R. Benson as Chief Restructuring Officer -------------------------------------------------------------- Quebecor World Inc. appointed Randy Benson, Chief Restructuring Officer of the Company. Mr. Benson will report to the Restructuring Committee of the Board of Directors. "We are very pleased to have someone of Randy's experience and capabilities joining Quebecor World at this time," said Jacques Mallette, President and CEO, Quebecor World. "Randy brings valuable experience in working with other companies going through a financial restructuring process. He will work closely with our senior management team and the Creditors' Committees, as we develop our restructuring plan with a view of quickly emerging from creditor protection as a strong company in our industry." Mr. Benson most recently served as Chief Restructuring Officer for Hollinger Inc and prior to that held the same position at Ivaco Inc. Mr. Benson was Senior Vice-President and Chief Financial Officer at Call-Net Enterprises-Sprint Canada Inc. and before that he served as a division president at Parmalat Canada and as Executive Vice-President and Chief Financial Officer of Beatrice Foods Inc. He is the principal of R.C. Benson Consulting Inc., a management consulting company focused on providing strategic analysis, chief executive management, and financial and operational restructuring expertise. About Quebecor World Quebecor World Inc. (TSX: IQW) -- http://www.quebecorworld.com/ -- provides high-value, complete marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company is a market leader in most of its major product categories, which include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 28,000 employees working in more than 115 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, and Switzerland. 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., 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. The Debtors' CCAA stay has been extended to May 12, 2008. The Debtors have until Sept. 30, 2008, to exclusively file a reorganization plan. (Quebecor World Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REDES URBANAS.COM: Trustee to File General Report Tomorrow ---------------------------------------------------------- Mario Leizerow, the court-appointed trustee for Redes Urbanas.com S.R.L.'s bankruptcy proceeding, will submit to the National Commercial Court of First Instance in Buenos Aires a general report containing an audit of the firm's accounting and banking records on May 7, 2008. Mr. Leizerow verified creditors' proofs of claim until Feb. 11, 2008. He presented the validated claims in court as individual reports on March 24, 2008. Mr. Leizerow is also in charge of administering Redes Urbanas.Com's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Redes Urbanas.Com S.R.L. Avenida Cabildo 2327 Buenos Aires, Argentina The trustee can be reached at: Mario Leizerow Bouchard 644 Buenos Aires, Argentina REPES SA: Trustee to File Individual Reports in Court Tomorrow -------------------------------------------------------------- Jose Luis Cicocciopo, the court-appointed trustee for Repes S.A.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on May 7, 2008. Mr. Cicocciopo verified creditors' proofs of claim until March 19, 2008. He will submit a general report containing an audit of Repes' accounting and banking records on June 18, 2008. Mr. Cicocciopo is also in charge of administering Repes' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jose Luis Cicocciopo Vidal 3375 Buenos Aires, Argentina SHAMA SA: Trustee to Present General Report in Court Tomorrow ------------------------------------------------------------- Osvaldo Norberto Siciliano, the court-appointed trustee for Shama S.A.'s bankruptcy proceeding, submit to the National Commercial Court of First Instance in Buenos Aires a general report containing an audit of the company's accounting and banking records on May 7, 2008. Mr. Siciliano verified creditors' proofs of claim until Feb. 11, 2008. He presented the validated claims in court as individual reports on March 24, 2008. Mr. Siciliano is also in charge of administering Shama's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Osvaldo Norberto Siciliano Hipolito Yrigoyen 1349 Buenos Aires, Argentina UP GRADE: Proofs of Claim Verification Is Until July 2 ------------------------------------------------------ Irma Susana Aguilera, the court-appointed trustee for Up Grade SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 2, 2008. Ms. Aguilera will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 4 in Buenos Aires, with the assistance of Clerk No. 8, 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 Up Grade 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 Up Grade's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Aguilera is also in charge of administering Up Grade's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Up Grade SRL Maipu 325 Buenos Aires, Argentina The trustee can be reached at: Irma Susana Aguilera Presidente Luis Saenz Pena 1690 Buenos Aires, Argentina ============= B E R M U D A ============= BRUNSWICK COMPANY: Sets Shareholders Meeting for May 28 ------------------------------------------------------- Brunswick Company Limited will hold a shareholders meeting on May 28, 2008, at 9:30 a.m. at Conyers Dill & Pearman, 2nd Floor, Richmond House, Par-la-Ville Road, Hamilton, Bermuda. Registration will start at 9.15 a.m. Shareholders who have not received personal notice may contact Denise Shaw at 295 1422 ext. 3176 to obtain a copy of the package sent to all registered shareholders. The liquidator can be reached at: Denise Shaw Registrar of Companies Office Government Administration Building Parliament Street, Hamilton Bermuda Phone: 279 5316 E-mail: denise.shaw@conyersdillandpearman.com HEDGE HOLDINGS: Proofs of Claim Filing Deadline Is May 16 --------------------------------------------------------- Hedge Holdings Ltd.'s creditors are given until May 16, 2008, to prove their claims to Beverly Mathias, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Hedge Holdings' shareholders agreed on April 30, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda HEDGE HOLDINGS: Sets Final Shareholders Meeting for June 6 ---------------------------------------------------------- Hedge Holdings Ltd. will hold its final general meeting on June 6, 2008, at 9:30 a.m. at Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. Hedge Holdings' shareholders agreed on April 30, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda IPOC INTERNATIONAL: BVI Court Confiscates Over US$45MM From Firm ---------------------------------------------------------------- Caribbean Net News reports that Justice Indra Hariprashad- Charles of the Eastern Caribbean Supreme Court in Road Town, British Virgin Islands, has ordered the confiscation of over US$45 million from IPOC International Growth Fund Ltd. Caribbean Net relates that authorities in British Virgin Islands and Bermuda conducted a probe for 17 months on allegations that between 2004 and 2005, the IPOC International lied about the source of US$40 million "which had been lodged with the court as part of a separate, civil matter." A Memorandum of Understanding was signed on the IPOC International probe between the British Virgin Islands and Bermudan jurisdictions in July 2007. On April 30, 2008, IPOC International pleaded guilty to providing false information and perverting the course of justice. These IPOC International subsidiaries, which are based in British Virgin Islands, also pleaded guilty: -- International Business Companies Lapal Limited, -- Albany Invest Limited, and -- Mercury Import Limited. Caribbean Net notes that Justice Hariprashad-Charles imposed US$300,000 in fines on the three subsidiaries. The court also ordered the three defendants to pay a total of US$2.2 million in costs. According to Caribbean Net, lead prosecutor Hodge Malek said before the court that Bermudan and British Virgin Islands governments spent a total of US$2.3 million in investigating the IPOC fraud case and that the evidence in the case totaled over half a million pages of documents. "I would like to thank the Virgin Islands� Commissioner of Police -Reynell Frazer for putting so much of his valuable resources into the investigation of this case, and for following through to its fruition," Mr. Malek added. The British Virgin Islands� Public Prosecutions Director Terrence Williams told Caribbean Net that the prosecution of the fraud case shows the Territory�s commitment to protect the integrity of the criminal justice system. "Our successful prosecution of the IPOC case also demonstrates the fact that the BVI [British Virgin Islands] strictly regulates the corporate entities which operate in our jurisdiction. It shows that we will not allow BVI corporate vehicles to be used improperly," Mr. Williams added. The Bermudan Finance Ministry has asked the Supreme Court to wind up IPOC International, a case which has yet to be concluded, The Royal Gazette states. As reported in the Troubled Company Reporter on Feb. 15, 2007, the finance minister pushed for the liquidation of IPOC International and eight of its affiliates after auditing their finances. The Bermuda Supreme Court is considering the liquidation of IPOC International Growth Fund Ltd. based on the recommendations of the Registrar of Companies at the direction of Finance Minister Paula Cox. Headquartered in Bermuda, IPOC International Growth Fund Ltd. was founded in 2000. Its primary objective is to identify emerging business trends and capitalize on international growth opportunities. INTELSAT LTD: Commences Change of Control Offers ------------------------------------------------ Intelsat Ltd.'s indirect wholly-owned subsidiary Intelsat Jackson Holdings, Ltd. is offering to purchase for cash any and all of its outstanding 9-1/4% Senior Notes due 2016 and 11-1/4% Senior Notes due 2016, in each case at a price of 101% of the principal amount of such Notes. Intelsat Jackson is also offering to prepay the loans outstanding under its US$1.0 billion Senior Unsecured Credit Agreement, dated as of Feb. 2, 2007, at a price of 101% of the principal amount thereof. Intelsat Jackson is required by the terms of the respective indentures governing the Notes and by the terms of the Senior Unsecured Credit Agreement to make these offers as a result of the previously announced acquisition of Intelsat Holdings, Ltd., the indirect parent of Intelsat Ltd., by Intelsat Global Subsidiary, Ltd. (formerly known as Serafina Acquisition Limited), a direct wholly-owned subsidiary of Intelsat Global, Ltd. (formerly known as Serafina Holdings Limited), an entity formed by funds advised by BC Partners Holdings Limited, Silver Lake Partners and certain other equity investors. The Acquisition constitutes a change of control under each of the indentures governing the Notes and under the Senior Unsecured Credit Agreement. The terms of the change of control offer with respect to the Notes are described in a Notice of Change of Control and Offer to Purchase, dated May 2, 2008, and the Letters of Transmittal related thereto, which will be distributed to holders of the Notes in accordance with the terms of the indentures. The terms of the change of control offer with respect to the loans outstanding under the Senior Unsecured Credit Agreement are described in a Notice of Occurrence of Change of Control and Offer to Prepay, dated May 2, 2008, which will be sent to the administrative agent under the Senior Unsecured Credit Agreement in accordance with the terms thereof. The change of control offer with respect to the Notes will expire at 5:00 p.m., New York City time, on June 26, 2008 and the change of control offer with respect to the Senior Unsecured Credit Agreement will expire at 12:00 noon, New York City time, on June 30, 2008. Each of the change of control offers will have a settlement date of July 1, 2008. Holders whose Notes are accepted for payment and lenders that elect to have their loans under the Senior Unsecured Credit Agreement prepaid pursuant to the offers will also receive accrued and unpaid interest to the Settlement Date. Intelsat Jackson has retained Wells Fargo Bank, National Association to act as Depositary in connection with the change of control offer for the Notes. Bank of America, N.A. is the administrative agent under the Senior Unsecured Credit Agreement. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. Intelsat, Ltd.'s December 31 balance sheet showed total assets of US$12,053,332, total liabilities of US$12,775,716 and stockholders' deficit of US$722,384. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. MAN AHL: Proofs of Claim Filing Deadline Is May 16 -------------------------------------------------- Man AHL Capital Markets Trading Ltd.'s creditors are given until May 16, 2008, to prove their claims to Beverly Mathias, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Man AHL's shareholders agreed on April 30, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda MAN AHL: Sets Final Shareholders Meeting for June 6 --------------------------------------------------- Man AHL Capital Markets Trading Ltd. will hold its final general meeting on June 6, 2008, at 9:30 a.m. at Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. Man AHL's shareholders agreed on April 30, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda TYCO INT'L: Inks US$73.3 Mil. Settlement Pact With New Jersey ------------------------------------------------------------- Tyco International Ltd. has settled its state charges of securities fraud by paying US$73.3 million to New Jersey's Division of Investment, Insurance Journal reports, citing the state Attorney General's office as saying. The report states that Tyco was involved in a 2002 civil suit in which the state's pension fund suffered major losses due to fraud, including insider trading at Tyco, accounting improprieties, and then-Tyco executives withholding millions of dollars in personal loans they acquired from the company. 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. ============= B O L I V I A ============= ASHMORE ENERGY: Bolivian Gov't to Take Control of Firm's Unit ------------------------------------------------------------- The Bolivian government will take control of Ashmore Energy International Ltd.'s Transredes SA, A.M. Costa Rica reports, citing Bolivia's President Evo Morales. A.M. Costa Rica relates that President Morales announced that the state is taking control of Bolivia's main telecommunications company Entel and four foreign-owned energy firms. Other foreign energy firms that the president said the government will take over include: -- British Petroleum's Chaco, -- Repsol YPF SA's Andina, and -- German-Peruvian firm CLHB. President Morales ordered the nationalization of the hydrocarbon sector in Bolivia and forced oil and gas firms to negotiate new contracts that gave the state-run Yacimientos Petroliferos Fiscales Bolivianos a majority share of the revenues the companies generated. The president aimed to redistribute Bolivia's oil and gas wealth, which is centered in the nation's east, A.M. Costa Rica states. About Transredes Headquartered in Santa Cruz, Bolivia, Transredes SA specializes in the distribution of natural gas and liquid hydrocarbons (crude petroleum, liquefied petroleum gas, surplus refinery products and condensates). It owns and operates approximately 3,000 kilometers of gas pipelines and 2,700 kilometers of liquids pipelines. It provides operations and maintenance services to Gas TransBoliviano SA and GasOriente Boliviano Ltda. The company operates mainly in Bolivia, Brazil, Chile and Argentina. About Ashmore Energy Ashmore Energy International Ltd. -- http://www.ashmoreenergy.com-- owns and operates a portfolio of energy infrastructure assets in power generation, transmission, and distribution of natural gas, gas liquids, and electric power. Ashmore Energy's portfolio, directly or indirectly, consists of 19 companies in 14 countries, most of which are located in Latin America. The company's largest asset is Brazilian electric distribution company, Elektro, which represents approximately 43% of EBITDA, and 55.3% of fiscal 2006 consolidated cash flow to parent company Ashmore Energy. The company also operates a power plant in the Dominican Republic. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 23, 2007, Fitch Ratings affirmed Ashmore Energy International Ltd.'s 'BB' issuer default rating. Fitch also affirmed the 'BB' rating on the firm's US$1 billion term loan and US$500 million revolving credit facility. Fitch said the rating outlook is stable. =========== B R A Z I L =========== BLOUNT INT'L: March 31 Balance Sheet Upside-Down by US$43.8 Mil. ---------------------------------------------------------------- Blount International Inc. has disclosed financial results for first quarter ended March 31, 2008. At March 31, 2008, the company's consolidated balance sheet showed US$407.5 million in total assets and US$451.3 million in total liabilities, resulting in a US$43.8 million total stockholders' deficit. The company reported net income of US$6.8 million in the first quarter of 2008, compared with net income of US$4.7 million in the same period of 2007. The increase in net income is a result of the improved year over year operating income and lower net interest expense due to a reduction in debt levels and lower borrowing rates. Company debt at the end of the first quarter was US$296.7 million, a decrease of US$70.8 million from last year's first quarter. The company's sales in the first quarter were US$133.2 million, compared to US$118.3 million in 2007, a 12.6% increase. The Outdoor Products segment sales increased by 13.9% from last year's first quarter. Operating income increased in this year's first quarter to US$16.7 million from US$16.2 million last year. In the first quarter, operating income was adversely impacted by approximately US$2.7 million from changes in foreign currency exchange rates as compared to last year. Commenting on the first quarter results, James S. Osterman, chairman and chief executive officer, stated: "In the first quarter, we continued to see robust demand for saw chain products. The stronger euro, volume gains in developing markets and various marketing programs contributed to our increase in sales. A solid order backlog is encouraging for continued top line growth for the balance of the year; however, foreign currency and raw material cost trends will continue to put pressure on our operating margins for the remainder of 2008." About Blount International Blount International Inc. (NYSE: BLT) -- http://www.blount.com/ -- is an international company operating one principal business segment, the Outdoor Products segment. Blount manufactures its products in the United States, Canada, China, and Brazil, and sells them in more than 100 countries. The Outdoor Products segment manufactures and markets cutting chain, guide bars, sprockets and accessories for chainsaw use, concrete-cutting equipment and accessories and lawnmower blades. This segment also markets branded parts and accessories for the lawn and garden equipment market. The segment's products are sold to original equipment manufacturers for use on new chainsaws and yard care equipment, and to the retail replacement market through distributors, dealers and mass merchants. COMPANHIA SIDERURGICA: Tata Wants Firm's Nacionale Minerios ----------------------------------------------------------- Business Standard Ltd. reports that Companhia Siderurgica SA's iron ore unit Nacionale Minerios SA a.k.a. Namisa is attracting Tata Steel Ltd. Business Standard relates Companhia Siderurgica has disclosed that it is considering the potential sale of a portion or all its shares in Namisa, whose iron ore sales/exports "are to the tune of 14 million tons and the plan is to take it to 40 million tons by 2012." The firm has access to railway transport and port to sell or export its production. A Tata Steel spokesperson told Business Standard, "Tata Steel has several opportunities before it and it will evaluate each of these for their strategic fit with our growth plans before deciding on any course of future action vis-a-vis the opportunities." Business Standard relates that Tata Steel's Managing Director B. Muthuraman had said earlier this year that the firm is seeking opportunities in Brazil for sourcing raw material. According to Business Standard, industry sources are positive that with the surge in raw material prices, lots of offers would be presented for Namisa. A source told Business Standard, "Some of the global mining and steel companies are expected to bid for it. Indian steel companies are also likely to throw their hats into the ring." As reported in the Troubled Company Reporter-Latin America on April 24, 2008, Companhia Siderurgica hired Goldman Sachs as financial advisor for the potential sale of its stake in Nacional Minerios. About Tata Steel Tata Steel Limited is an integrated steel company in India. Its operations predominantly relate to manufacture of steel and ferro alloys and minerals business. Other business segments comprises of tubes, bearings, refractories, pigments, port operations, municipal services and investment activities. Tubes division produces three categories of tubes: commercial tubes used in plumbing, irrigation and process industry; precision tubes, which cater to the boiler and automotive sectors, and structural tubes supplied to the infrastructure sector. About Nacional Minerios Nacional Minerios SA owns ore mines in Minas Gerais, Brazil, with intermittent access to railway and maritime transport. About Companhia Nacional Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal and the U.S. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Standard & Poor's Ratings Services revised its outlook on Brazil-based steel maker Companhia Siderurgica Nacional and related entity National Steel S.A. to positive from stable. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating on CSN and its 'B+' rating on NatSteel. JAPAN AIRLINES: Cuts FY2007 Operating Revenue Forecast by 0.4% -------------------------------------------------------------- JAL Group revised its consolidated financial forecast for FY2007, the year ended March 31, 2008, reflecting the trends of recent performance. The revised forecast supersedes the Group�s last forecast announced on November 6, 2007 when the airline issued its financial results for the half-year results for financial year 2007 (the period from April 1, 2007 to September 30, 2007). Compared to the previous forecast, JAL Group�s revised forecast for FY2007 operating revenue is now estimated at 2,230.0 billion yen, down 8.0 billion yen or 0.4%. Operating costs are estimated at 2140.4 billion yen, down by 49.5 billion yen or 2.3%. Ordinary income is now estimated at 90.0 billion yen, up 42.0 billion yen or 87.5%; ordinary income at 69.0 billion yen up 25.0 billion yen or 56.8%; and net income at 16.0 billion yen, up 9.0 billion yen or 128.6%. If a company registered in Japan at anytime expects net income to change by more than 30% - either up or down - from previously announced forecasts it must notify the Tokyo Stock Exchange. The JAL Group is currently in the process of making final calculations for FY2007 and these will announced on May 9, 2008. The JAL Group is focusing its energy and resources on the creation of a business foundation capable of stable growth and profit generation in any environment. As a result of the effectiveness of �premium strategies� aimed at attracting business and top-tier travelers through product and service enhancement and development, international business passenger demand has been robust. Even though domestic passenger demand is slightly lower than expected, the JAL Group�s revised forecast for operating revenue is almost the same as its previous forecast announced in November last year. Due to the effectiveness of group-wide cost reform implemented during FY2007 with the objective of increasing profitability and tackling, for example, increases in the cost of jet fuel, the JAL Group now forecasts that operating cost reductions will be greater than previously expected. To reflect this, both operating and ordinary income forecasts have been revised upwards. To remove risks in business operations, we have posted the extraordinary losses outlined below, but net income for FY2007 is still expected to exceed previously announced estimates as a result of the forecast increase in ordinary income. Main Extraordinary Losses: a. Temporary depreciation costs of 7,068 million yen will be posted for FY2007, as the expected lifetime of spare parts for some aircraft models has been adjusted. b. A reserve fund of 6,193 million yen has been set aside for an ongoing investigation by the European Commission into alleged violations of the anti-trust law regarding international air cargo operations involving major global airlines. The reserve is the best estimate of future possible losses related to this investigation, based on currently available information. There is the possibility of a fluctuation in this estimate. This is additional to the extraordinary loss resulting from JAL International (JALI) entering into a plea agreement with the US Department of Justice forviolations of the antitrust law in which the company agreed to plead guilty concerning certain alleged violations of the antitrust laws in the U.S./trans- Pacific international air cargo business and to pay a fine of US$110 million. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported in the Troubled Company Reporter-Latin America on April 18, 2008, Fitch Ratings revised the Outlook on Japan Airlines Corporation and its whollyowned operating subsidiary, JAL International Co., Ltd.'s Long-term Issuer Default ratings to Stable from Negative. At the same time, Fitch affirmed both companies' Long-term IDRs and ratings of outstanding bonds at 'BB-'. The Outlook revision follows JAL's operational turnaround and better liquidity. As reported on Feb. 9, 2007, Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. JAPAN AIR: To Sell 49.4% Stake in Credit-Card Unit to Mitsubishi ---------------------------------------------------------------- Chris Cooper of Bloomberg News reports that Japan Airlines Corp. will sell a 49.4 percent stake in its credit- card unit to Mitsubishi UFJ Financial Group Inc. According to the report, the airline will book a JPY42 billion ($401 million) gain from the sale. The transaction, Bloomberg relates, is part of Japan Air's plan to restructure its balance sheet. The carrier lately sold JPY151.5 billion of preferred shares to financial institutions to raise funds and is buying new planes to reduce fuel costs, Bloomberg says. In addition, Bloomberg says Japan Air plans to cut labor costs by JPY10 billion this year and cut debt by 15 percent this fiscal year to JPY1.32 trillion, from JPY1.55 trillion at the end of March. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported in the Troubled Company Reporter-Latin America on April 18, 2008, Fitch Ratings revised the Outlook on Japan Airlines Corporation and its whollyowned operating subsidiary, JAL International Co., Ltd.'s Long-term Issuer Default ratings to Stable from Negative. At the same time, Fitch affirmed both companies' Long-term IDRs and ratings of outstanding bonds at 'BB-'. The Outlook revision follows JAL's operational turnaround and better liquidity. As reported on Feb. 9, 2007, Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. GENERAL MOTORS: Total April 2008 Sales Decrease 16 Percent ---------------------------------------------------------- General Motors Corp. dealers in the United States delivered 260,922 vehicles in April. Retail car and crossover sales were up more than 9%. A sharp sales increase in fuel efficient cars and crossovers could not make up for soft truck demand and a sharp decline in fleet deliveries impacted by the American Axle & Manufacturing Holdings Inc. strike. On a non-adjusted basis, retail sales were down 11.5% and total sales for the month were down 16%. On an adjusted basis, total sales declined 22.7%. Dealer inventories were at their lowest level since September 2005 with about 824,000 vehicles in stock, down about 206,000 vehicles compared to last April, and down more than 84,000 vehicles compared with December 2007. "Consumer preference is shifting and we're shifting with it as evidenced by our strong car and crossover sales," Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing, said. "Our new products such as the Chevrolet Malibu, Cadillac CTS and Buick Enclave were hot throughout the month. Throughout the industry, truck sales have been soft. We've been able to match the current economic slowdown with historically low total inventories, and as we look for ways to increase car and crossover production, we are improving our competitive position for the economic recovery." Chevrolet Malibu total sales were up 29% with retail sales up 147%, Aveo sales were up 14% total and 13% retail, and Cobalt sales were up 16% total and 17% retail. Pontiac Vibe total sales were up 36% and retail sales were up 39% compared with April 2007. Saturn Aura was up 19% total and 16% retail, and the Astra had its fourth consecutive month of increasing sales with more than 900 vehicles sold. In the luxury car segment, the award-winning Cadillac CTS saw total sales increase 8% with a strong retail increase of 12%. GM's popular crossover Buick Enclave, GMC Acadia and Saturn Outlook together accounted for nearly 13,000 retail vehicle sales in the month, an increase of 7% compared with the same month last year. There were more than 6,600 Acadia, 4,000 Enclave and 2,300 Outlook retail sales. The Saturn Vue had a total sales increase of about 600 vehicles compared with April 2007. "Our sales performance in mid-cars and crossovers shows the power of new products to attract consumers -- even in a tough market," Mr. LaNeve added. "So as the mix shifts from trucks to cars, we're ready in our dealers' showrooms with vehicles that provide industry-leading value, great fuel economy and the best warranty coverage of any full-line automaker." Certified Used Vehicles April 2008 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 44,479 vehicles, up nearly 7% from April 2007 results. Year-to-date sales are 168,087 vehicles, down 7% from the same period last year. GM Certified Used Vehicles, the industry's top-selling certified brand, posted April sales of 38,861 vehicles, up 6% from last April. Cadillac Certified Pre-Owned Vehicles sold 3,565 vehicles, up 27%. Saturn Certified Pre-Owned Vehicles sold 1,159 vehicles, down 21%. Saab Certified Pre-Owned Vehicles sold 727 vehicles, up 14%, and HUMMER Certified Pre-Owned Vehicles sold 167 vehicles, up 109%. "Our certified sales momentum continued in April, as GM Certified Used Vehicles sales grew for the fourth consecutive month, a 6 percent increase over last April's results," Mr. LaNeve said. "The Cadillac, Saab and HUMMER Certified Pre-Owned Vehicles programs also generated robust increases as consumers take advantage of the great value and peace-of-mind assurances that come with the purchase of certified GM vehicles." In April, GM North America produced 242,000 vehicles (128,000 cars and 114,000 trucks). This is down 93,000 vehicles or 28 percent compared to April 2007 when the region produced 335,000 vehicles (120,000 cars and 215,000 trucks). (Production totals include joint venture production of 22,000 vehicles in April 2008 and 16,000 vehicles in April 2007.) Approximately 130,000 units of production have been lost in April due to the American Axle work stoppage. Since the dispute began in late February, approximately 230,000 units of production have been lost. GMNA has revised its forecast for 2008 second-quarter production to 950,000 vehicles, down 130,000 units from the prior forecast to reflect April production losses. Due to the current American Axle work stoppage, there is considerable uncertainty with regard to the second quarter production forecast. On April 30, 2008, GM's annual total vehicle sales forecast for the industry was revised to an expected mid-to-high 15 million vehicle SAAR. The previous forecast provided in January of this year was in the low-16 million unit range. The revision reflects actual industry sales rates for the first four months of 2008 and the current assessment of the recovery of the U.S. economy. 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, Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. remain on CreditWatch with negative implications, where they were placed March 17, 2008. The CreditWatch update follows downgrades of 49%-owned subsidiaries GMAC LLC (B/Negative/C) and Residential Capital LLC (CCC+/Watch Neg/C). The rating actions on Residential Capital LLC and GMAC were triggered by the resignation of the only independent directors at Residential Capital LLC. KRATON POLYMERS: Hikes NorthAm and LatAm Product Prices ------------------------------------------------------- Kraton Polymers LLC will continue to experience unprecedented cost increases derived from raw material, energy and packaging costs. As a result of these aggressive cost drivers, effective June 1, 2008, the company is releasing a general price increase of US$330/MT, or 15 cents per pound, in North America and South America, for the company's SBS and O/E SBS polymers and compounds. As a result of these same cost drivers, effective June 1, 2008, the company is also announcing a general price increase of US$220/MT, or 10 cents per pound, in North America and South America, for its SIS polymers and compounds. The company said that it appreciate its customers� continued business and understanding as Kraton continues to manage these difficult economic challenges. The company will continue to strive to be the innovation leader, providing polymer solutions and value-added services that enable its customers to differentiate and succeed in their markets. Based in Houston, Texas, Kraton Polymers LLC -- http://www.kraton.com/-- produces styrenic block copolymers. SBCs are highly-engineered thermoplastic elastomers, which enhance the performance of numerous products by delivering a variety of attributes, including greater flexibility, resilience, strength, durability and processability. Kraton polymers are used in a wide range of applications including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing, and footwear products. Kraton has the leading position in nearly all of its core markets and is the only producer of SBCs with global manufacturing capability. Its production facilities are located in the United States, Germany, France, The Netherlands, Brazil, and Japan. * * * As reported in the Troubled Company Reporter-Latin America on April 7, 2008, Moody's Investors Service lowered the ratings of Kraton Polymers LLC (corporate family rating now B2 from B1, Probability of Default Rating now lowered to B2 from B1, Senior Secured Bank Credit Facility now lowered to B1 from Ba3 and Senior Unsecured Subordinated Bond/Debenture now lowered to Caa1 from B3) and placed the ratings under review for possible further downgrade following the fourth quarter earnings announcement that reflected weaker than expected performance. NORTEL NETWORKS: Net Loss Widens to US$138MM in 2008 First Qtr. --------------------------------------------------------------- Nortel Networks Corporation reported its results for first quarter ended March 31, 2008, which demonstrated continued progress against the company's turnaround strategy. The company reported a net loss in the first quarter of 2008 of US$138 million compared to net loss of US$103 million in the first quarter of 2007 and net loss of US$844 million in the fourth quarter of 2007. The net loss US$138 million included: -- special charges of US$88 million for restructurings; -- a loss of US$19 million due to changes in foreign exchange rates; -- a charge of US$12 million related to a patent lawsuit settlement; and -- a gain of US$16 million from mark-to-market gains on interest rate swaps. The net loss in the first quarter of 2007 of US$103 million included a shareholder litigation gain of US$54 million reflecting a mark-to-market adjustment of the share portion of the class action settlement and special charges of US$80 million for restructuring. The net loss in the fourth quarter of 2007 of US$844 million included a reduction of the deferred tax asset of US$1,043 million, special charges of US$38 million for restructurings, a gain of US$23 million on the sale of assets, a gain of US$40 million due to favourable effects of changes in foreign exchange rates and a gain due to a market value adjustment of US$15 million on an interest rate swap. "Nortel had a strong first quarter, driven by the completion of a contract in our LG-Nortel joint venture and continued improvements in gross and operating margins, Mike Zafirovski, Nortel president and chief executive officer, said. "Nortel's operating margin, a critical measure of our plan's traction, expanded for the seventh consecutive quarter year over year, recording a 512 bps improvement to 4.7%." "We except to achieve our full year guidance and we continue to make solid progress against the strategy to turn around the company," Mr. Zafirovski added. "Our relentless focus on execution and our determination to deliver value to customers is strengthening the foundation upon which to build our performance over the balance of 2008 and beyond." Cash balance at the end of the first quarter of 2008 was US$3.2 billion, down from US$3.5 billion at the end of the fourth quarter of 2007. The decrease in cash was driven by a cash outflow from operating activities of US$260 million, cash used in investing activities of US$44 million and cash used in financing activities of US$14 million. The cash outflow from operating activities of US$260 million included a net loss of US$138 million and outflows of US$264 million related to: -- the payment of 2007 bonuses and fourth quarter sales compensation; -- US$121 million related to pension funding; -- US$51 million cash payments related to its restructuring plans. The cash outflow was partially offset by net cash inflows of US$99 million of working capital and non-cash additions including US$82 million of amortization and depreciation and US$78 million of minority interest related to profitability of the LG-Nortel joint venture. At March 31, 2008, the company's balance sheet showed total assets of US$16.2 billion, total liabilities of US$13.6 billion and total shareholders' deficit of about US$2.6 billion. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next- generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * Nortel Networks Corp. still carries Moody's Investors Service's 'B3' Senior Unsecured Debt rating which was placed on March 22, 2007. SUL AMERICA: Concludes Subsidiary's Delisting From BOVESPA ---------------------------------------------------------- The public tender offer for the delisting of Sul America Companhia Nacional de Seguros, a subsidiary of Sul America S.A. (BOVESPA: SULA11), was concluded on the Sao Paulo Stock Exchange (BOVESPA). As a result, the holding company, Sul America SA will consolidate an even larger share of its subsidiaries' results, meeting the strategic objectives of its shareholders. The offeror acquired around 32 million shares, increasing its stake in the subsidiary by 1.6% to 98.6% of its total capital. The shares were acquired for BRL1.02 per share, corresponding to a total amount of approximately BRL33 million. Around 90% of the shareholders adhered to the offer. As a result of the successful conclusion of the operation, the Securities and Exchange Commission of Brazil (CVM) will authorize the cancellation of the subsidiary's registration as a publicly-held company within the next few days. For Sul America, the delisting of Sul America Companhia Nacional de Seguros is in the interests of its shareholders since it concentrates market liquidity in the shares of Sul America SA, the holding company that went public in October 2007 and which effectively controls all of Sul America's operations in the insurance, pension and asset management markets. Sul America had consolidated premiums of BRL7 billion in 2007. Sul America S.A., the group's holding company, recorded net income of BRL321 million in the same year, an increase of 109% compared to 2006. Headquartered in Rio de Janeiro, Brazil, Sul America SA -- http://www.sulamerica.com.br/-- is a multiline insurance company. It provides a range of insurance coverage to companies, individuals and governmental entities. The company offers investment funds, health, life and property insurance. Sul America also provides asset and healthcare management services. It owns Saepar Servicos e Participacoes SA. The company holds shares in other companies, such as Sul America Companhia Nacional de Seguros and Sul America Companhia de Seguro Saude. * * * As reported in the Troubled Company Reporter-Latin America on April 8, 2008, Standard & Poor's Ratings Services raised its long-term counterparty credit and senior unsecured debt ratings on Sul America S.A. to 'B+' from 'B'. At the same time, S&P raised the counterparty credit rating on Sul America's main operating insurance entity, Sul America Companhia Nacional de Seguros, to 'BB' from 'BB-'. S&P's outlook on both entities is positive. SUN MICROSYSTEMS: To Cut 2,500 Jobs to Save US$220MM in Costs ------------------------------------------------------------- Sun Microsystems Inc. will reduce its workforce by around 1,500 to 2,500 people in the current quarter, Christopher Lawton of The Wall Street Journal reports. The company relates that it needs to slash costs as the U.S. economy is pretty weak and they are facing delays in orders from customers. Sun adds that they would be taking a charge of US$130.0 million to US$220.0 million in its fiscal fourth quarter to account for the cuts. Sun shares rose 67 cents, or 4.3%, to US$16.33 at 4 p.m. in Nasdaq Stock Market composite trading, before the formal statement, WSJ notes. WSJ adds that shares fell 11.2% to $14.50 in after-hours trading. Third Quarter Financial Results Sun Microsystems reported net loss for the third quarter ended March 30, 2008, on a Generally Accepted Accounting procedures or GAAP basis of US$34.0 million as compared with net income of US$67.0 million 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. Cash generated from operations for the third quarter of fiscal 2008 was US$329.0 million, and the cash and marketable debt securities balance at the end of the quarter was US$3.8 billion. During the third quarter, Sun continued to leverage its cash position, spending US$300.0 million to repurchase 17.5 million shares of its common stock. There is US$500.0 million remaining of the US$3.0 billion share repurchase program disclosed in the company's fiscal fourth quarter of 2007. At March 30, 2008, the company's balance sheet showed total assets of US$14.2 billion, total liabilities of about US$8.5 billion and total shareholders' equity of US$5.7 billion. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: JAVA) -- http://sun.com/-- provides network computing infrastructure product and service solutions worldwide. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, among others. * * * Moody's Investors Service placed Sun Microsystems Inc.'s corporate family and unsecured debt rating at 'Ba1' in September 2005. The ratings still hold to date with a stable outlook. TAM SA: Shareholders Agree on Appropriation of 2007 Income ---------------------------------------------------------- TAM SA's stockholders, at their April 30 annual meeting, agreed by absolute majority the appropriation of the company's net income in 2007 as proposed by management. According to a filing with the U.S. Securities and Exchange Commission, the company booked a net income of BRL128,896,243 for the fiscal year ended Dec. 31, 2007. As agreed by the shareholders, the net income will be appropriated in this manner: a) Distribution of interest on own capital in the total amount of BRL31,529,056, corresponding to BRL0.20958988 per share, net of withholding income tax, except for those stockholders verified to be exempt, with the gross amount corresponding to R$37,093,007, or R$0.24657673 per share. Payment of interest on own capital will be made to those stockholders registered as such as of March 31, 2008, and the company shares will be traded ex-rights as from, and including, April 1, 2008. Interest on own capital will be paid on April 15, with no additional remuneration, and to be deducted from minimum mandatory dividends for fiscal year 2007; b) Distribution of complementary dividends in addition to interest on own capital, charged to the retained earnings account and revenue reserves, in the total amount of BRL35,000,000, corresponding to BRL0.23266304 per share, for those stockholders registered as from March 31, 2008, with the company shares being traded ex-dividends as from, and including, April 1, 2008. The approved complementary dividends will be paid on April 15, with no additional remuneration; and c) Set aside BRL89,513,525 to the revenue retention reserve, to be primarily appropriated, in accordance with the approved capital budget, to capital expenditures and use as working capital and setting up of a legal reserve in the amount of BRL6,444,812. During the April 30 meeting, the shareholders also approved, with no qualifications, the the management report, financial statements and independent auditors report for the fiscal year ended Dec. 31, 2007. Headquartered in Sao Paulo, Brazil, TAM SA -- http://www.tam.com.br/-- provides scheduled air transportation services. It operates through subsidiaries TAM Linhas Aereas SA and TAM Mercosur SA on both domestic and international markets. The Company offers flights throughout Brazil and operates scheduled passenger and cargo air transport routes to 48 cities, in addition to 26 domestic destinations that it serves through regional alliances with other airlines. The company's international operations include direct flights to 17 destinations: New York and Miami (USA), Paris (France), London (England), Milan (Italy), Frankfurt (Germany), Madrid (Spain), Buenos Aires and Cordoba (Argentina), Santiago (Chile), Caracas (Venezuela), Montevideo and Punta del Este (Uruguay), AsunciOn and Ciudad del Este (Paraguay), and Santa Cruz de la Sierra and Cochabamba (Bolivia) * * * On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign currency and local currency Issuer Default Ratings of TAM S.A. Fitch has also affirmed the 'BB' rating of its US$300 million of senior unsecured notes due 2017 as well as the company's 'A+(bra)' national scale rating and for its first debentures issuance (BRL500 million). Fitch said the rating outlook is stable. UNIAO DE BANCOS: Completes US$200 Million Future Securitization --------------------------------------------------------------- Uniao de Bancos Brasileiros SA has completed a US$200 million, seven-year future securitization on the international market. According to Uniao de Bancos, the resources drawn will be backed by notes issued under its receivables securitization program and its diversified payment rights division. Business News Americas relates that the future flow of receivables comes chiefly from foreign trade and payment order transactions. The securitization's joint arrangers are SMBC Securities and WestLB, BNamericas states. Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. * * * To date, Standard & Poor's Ratings Services rated Unibanco-Uniao de Bancos Brasileiros SA's long-term foreign issuer credit rating and local issuer credit rating at 'BB+'. UNIAO DE BANCOS: Fitch Affirms Individual Rating at 'C' ------------------------------------------------------- Fitch Ratings has affirmed Uniao de Bancos Brasileiros (Unibanco) S.A.'s ratings as: -- Long-term foreign currency issuer default rating at 'BBB-'; stable outlook; -- Short-term foreign currency issuer default rating at 'F3'; -- Long-term local currency issuer default rating at 'BBB-', stable outlook; -- Short-term local currency issuer default rating at 'F3'; -- Individual rating at 'C'; -- National Long-term rating at 'AA+(bra)', stable outlook; -- National Short-term rating at 'F1+(bra)'; -- Support rating at '3'; -- Support Rating Floor at 'BB-'. The Individual and National Ratings of Uniao de Bancos reflect its good franchise, growing and recurring well-diversified earnings and a sound management team. These attributes support the bank's Foreign Currency IDR at the sovereign ceiling and its Local Currency IDRs above the sovereign rating. Consistent performance, balance sheet strength and management capacity during the turbulent cycles of the local economy are factors that also contribute to the bank's ratings. Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. ========================== C A Y M A N I S L A N D S ========================== APPLEGARTH INVESTMENTS: Proofs of Claim Filing Deadline Is May 8 ---------------------------------------------------------------- Applegarth Investments Limited's creditors have until May 8, 2008, to prove their claims to RTB Secretaries Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Applegarth Investments' shareholder decided on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: RTB Secretaries Limited of Palm Grove House P.O. Box 438, Road Town, Tortola, British Virgin Islands or c/o Rothschild Trust Cayman Limited P.O. Box 10129, 5th Floor Citrus Grove George Town, Grand Cayman, Cayman Islands Telephone: (345) 946 7033 Fax: (345) 946 7043 EASTERN PROMISE: Deadline for Proofs of Claims Filing Is May 8 -------------------------------------------------------------- Eastern Promise Limited's creditors have until May 8, 2008, to prove their claims to Maples and Calder, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Eastern Promise's shareholder decided on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Maples and Calder c/o Maples and Calder, Attorneys-at-law, P.O. Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands MELLON YIELD: Proofs of Claim Filing Deadline Is May 8 ------------------------------------------------------ Mellon Yield Curve Arbitrage Fund, Ltd.'s creditors have until May 8, 2008, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Mellon Yield's shareholder decided on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess Joint Voluntary Liquidators c/o Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands ORBANI FUND: Deadline for Proofs of Claim Filing Is May 8 --------------------------------------------------------- Orbani Fund's creditors have until May 8, 2008, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Orbani Fund's shareholder decided on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess Joint Voluntary Liquidators c/o Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands PARMALAT SPA: Settles U.S. Shareholders' Class Action ----------------------------------------------------- Parmalat S.p.A. has reached an agreement to settle the securities class action against it in the United States Southern District Court of New York. Parmalat will issue 10.5 million shares of stock in full satisfaction of any and all claim asserted against it in the class action, worldwide. Parmalat will also incur up to EUR1 million of the cost of notifying the class members of the settlement. Parmalat believes that this settlement is in the best interests of its shareholders to avoid the distraction and expense of further litigation, and diminishes uncertainty in the value of its stock. The settlement is subject to the approval of the court. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. SATELLITE SP: Proofs of Claim Filing Is Until May 8 --------------------------------------------------- Satellite SP Investments, Ltd.'s creditors have until May 8, 2008, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Satellite SP's shareholder decided on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess Joint Voluntary Liquidators c/o Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands ========= C H I L E ========= CORPORACION NACIONAL: El Tiniente Mine Shutdown May Last Today -------------------------------------------------------------- Corporacion Nacional del Cobre a.k.a. Codelco has closed its El Teniente mine after the attack of striking contract workers to buses carrying company workers, Heather Walsh of Bloomberg News reports. Pablo Reyes, union leader for mine employees, told Bloomberg in an interview that the shutdown may last until May 6. Bloomberg relates that since April 16 strike, where workers demand bonuses and benefits, the company's production has been halted. As a result, the company has incurred almost US$100 million on supply services as of April 29, and contributed to a 26% gain in copper prices this year in New York, the report states. Citing Union Spokeswoman Dolores Cautivo in a telephone interview, Bloomberg says that the Confederation of Copper Workers, which organized the strike, has been searching for a government proposal to resume to work and end the protests. According to the report, Codelco hired the contractors for construction, maintenance, cleaning industrial sites and running restaurants and providing other services. About 30,000 contractor employees work at Codelco's mines, while the company has 17,000 workers. Codelco's mining workers did not participate in the strike. El Teniente produced almost a quarter of Codelco's copper in 2007, Bloomberg notes. Aside from El Teniente, Andina and Salvador plant was also shut down, but Andina has resumed its operations this weekend, the report states. As reported in the Troubled Company Reporter-Latin America on April 23, 2008, the workers might end the strike in exchange for a bonus of CLP208,000 (around US$457) plus a proposal on education and health benefits. Corporacion Nacional del Cobre -- Codelco -- explores, develops, mines and processes copper in Chile. The principal product of the company is Grade A copper cathodes. The Company, which is owned by Chilean government, exports most of its production to companies in Europe and Asia. =============== C O L O M B I A =============== AMPEX CORPORATION: Shareholder Wants Equity Committee Appointed --------------------------------------------------------------- ValueVest High Concentration Master Fund Ltd., equity security holder and party-in-interest of Ampex Corporation and its debtor-affiliates, ask the U.S. Bankruptcy Court for the Southern District of New York to immediately appoint an Official Committee of Equity Holders to represent and prosecute the interest of shareholders and recover certain of their equity stake in the Debtors. ValueVest argues that the Debtors are not insolvent and there is a substantial likelihood of a meaningful distribution to equity. The Debtors have at least 393 shareholders with Class A common stock outstanding as of March 25, 2008, wherein ValueVest holds 13.4% shares of the Debtors' Class A common stock. A hearing was scheduled May 1, 2008 to consider approval of ValueVest request. About Ampex Headquartered in Redwood City, California, Ampex Corp. -- http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual information technology. The company has two business segments: Recorders segment and Licensing segment. The Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. The Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. On March 30, 2008, Ampex Corp. and six affiliates filed for protection under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York (Case Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq., and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP, represents the Debtors in their restructuring efforts. The Debtors have also retained Conway Mackenzie & Dunleavy as their financial advisors. In its schedules of assets and liabilities filed with the Court, Ampex Corp. disclosed total assets of US$9,770,089 and total debts of US$$82,488,054. The Debtors have nine foreign affiliates that are incorporated in seven countries -- one each in the United Kingdom, Japan, Belgium, Colombia and Brazil and two each in Germany and Mexico. With the exception of the affiliates located in the U.K. and Japan, none of the other foreign affiliates conduct meaningful business activity. As of March 30, 2008, none of the foreign affiliates have commenced insolvency proceedings. ECOPETROL SA: Halts Operations at Cano Pipeline Due to Attack ------------------------------------------------------------- An Ecopetrol SA official told Dow Jones Newswires that the firm has stopped pumping oil through its Cano Limon-Covena pipeline due to an attack from an unidentified group. Dow Jones relates that the 770-kilometer pipeline was bombed in the area close to the Venezuelan border, spilling some 4,000 barrels of crude in the Tibu River. Ecopetrol employees are working to clean the spill. Ecopetrol's spokesperson Angelica Moreno said that the company is making sure the area is safe to fix the pipeline and that the firm would be resuming pumping oil at the pipeline. Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia 's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A. 's foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. ================== C O S T A R I C A ================== COVANTA ENERGY: S&P Alters Outlook to Pos., Holds 'BB-' Rating -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Covanta Energy Corp. to positive from stable to reflect the company's improving credit metrics, continued focus on its key business, and S&P's expectation that the company will be able to fund costs associated with its growth strategy in a credit neutral manner. At the same time, Standard & Poor's affirmed its ratings on the company, including the 'BB-' corporate credit rating. Covanta had about $2.3 billion total debt as at Dec. 31, 2007, of which $1.3 billion was project debt. The credit rating on Covanta continues to reflect its reliance on residual distributions from project investments and its limited financial flexibility as it pursues its growth strategy given the capital-intensive nature of its business. Although Covanta generates significant cash flow from its operating subsidiaries, it also has significant ongoing maintenance- capital requirement. Furthermore, the company intends to grow its business through acquisitions, expansion of existing projects, or investments in greenfield energy-from-waste development. Headquartered in Fairfield, New Jersey, Covanta Energy Corporation -- http://www.covantaenergy.com/-- is a publicly traded holding company whose subsidiaries develop, own or operate power generation facilities and water and wastewater facilities in the United States and abroad. Covanta has operations in the Philippines, China, Costa Rica, India, and Bangladesh. SIRVA INC: Court Extends Receivables Sale Agreement Expiry Date --------------------------------------------------------------- At the behest of Sirva Inc. and its debtor-affiliates, the U.S. Bankruptcy Court for the Southern District of New York extended the termination date of the Debtors' Receivables Sale Agreement, from April 30, 2008, to May 14, 2008. SIRVA Relocation Credit, LLC have maintained a receivables purchase program with LaSalle Bank National Association, as agent for certain purchasers participating in the program. Specifically, the Purchasers are LaSalle Bank; General Electric Capital Corporation; Wells Fargo Bank; and Citizens Bank. As of December 22, 2006, the Debtors that sell Receivables, their related collections, and the proceeds of the Program are SIRVA Relocation LLC, Executive Relocation Corporation, and SIRVA Global Relocation, Inc -- the Originators. The Originators sell the Receivables on a daily basis to SRC pursuant to a Purchase Agreement. Under the Purchase Agreement and a Receivables Sale Agreement, the Servicers agree to service the Receivables, for which they are paid a fee. Prior to the Petition Date, the Guarantors, the Originators, SRC, LaSalle Bank, and the Purchasers engaged in extensive arm's-length negotiations to continue the Program, subject to certain amendments. The Amendments were negotiated to provide the Purchasers assurance that the Program would continue to be treated in accordance with the parties' intent -- as a true sale transaction -- and to provide protection from the uncertainty of a chapter 11 case. The Amendments include a condition that the Debtors' the Plan of Reorganization must become effective by April 30, 2008, or a Termination Date will occur under the Receivables Sale Agreement, and the Program will terminate unless the Purchasers will waive the Termination Date. Court Extends Termination Date to May 14 Marc Kieselstein, P.C., at Kirkland & Ellis LLP, in Chicago Illinois, related that before April 11, 2008, the Debtors received numerous objections to their Prepackaged Joint Plan of Reorganization. According to Mr. Kieselstein, the Debtors have decided to modify the Court-approved first amendment of the Receivables Sale Order Agreement, as well as the related fee letter, in order to give all parties sufficient time to conduct the information hearing, and for the Court to abjudicate the confirmability of the Plan. The Second Amendment extends the Termination Date to May 14, 2008, in exchange for a US$70,000 fee. Mr. Kieselstein said that the Receivables Purchase Program provides the Debtors with a critical and substantial source of ongoing operating liquidity of up to US$131,000,000, and its continuation after the April 30 termination date is integral to the Debtors' operations. "Consequently, without the authority to continue participating in the Program after the current termination date . . . the Debtors and their estates would suffer immediate and irreparable harm," Mr. Kieselstein added. Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets : SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation solutions to a well-established and diverse customer base. The company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. The company has operations in Costa Rica. The company and 61 of its affiliates filed separate petitions for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis, L.L.P. is representing the Debtor. An official Committee of Unsecured Creditors has been appointed in this case. When the Debtors filed for bankruptcy, it reported total assets of US$924,457,299 and total debts of US$1,232,566,813 for the quarter ended Sept. 30, 2007. (Sirva Inc. Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) ============= J A M A I C A ============= NATIONAL WATER: Fails to Supply Potable Water --------------------------------------------- Gareth Manning at the Jamaica Gleaner reports that the National Water Commission of Jamaica has admitted that it can't supply potable water to the rest of Jamaica. The terrain of the island makes it technically difficult and expensive to supply water to all communities, The Gleaner notes, citing The Commission. The Commission's Corporate and Strategic Planning Vice President Vernon Barrett explained to The Gleaner that some communities were too remotely situated for The Commission to reach and developers and settlers often fail to properly assess the feasibility of water supply before constructing houses. "What you have to ensure is that people will not have to walk long distances to get water, but they must be able to access it at a reasonable distance from their home and in some areas. Trucking will continue to be a need," Mr. Barrett added. The Rural Water Supply Company has the responsibility of reaching remote communities, The Gleaner says, citing Mr. Barrett. The Commission told The Gleaner that it will extend its coverage over the next five to seven years to 85%, from the current 71%. The National Water Commission is a statutory organization charged with the responsibility of providing potable water and wastewater services for the people of Jamaica. * * * The National Water Commission of Jamaica had been criticized for failing to act promptly in cutting its losses. For the fiscal years 2002 and 2003, the water commission accumulated a net loss of US$2.11 billion. The deficit fell to US$1.86 billion the following year, and to US$670 million in 2004 and 2005. Jamaican citizens have been complaining to the commission about water disruptions in their communities, resulting to restrictions of water use. =========== M E X I C O =========== EMPRESAS ICA: To Face La Peninsular in Metro System Auction ----------------------------------------------------------- News daily El Semanario reports that Empresas ICA, S.A.B de C.V., will have to bid against La Peninsular Compania Constructora, S.A. de C.V., for the expansion of Mexico City's metro system. As reported in the Troubled Company Reporter-Latin America on April 30, 2008, Empresas ICA created a consortium with the Mexican unit of French heavy equipment manufacturer Alstom and Mexican construction firm Carso Infraestructura y Construccion to bid for the project. Business News Americas relates that Empresas ICA will also have to compete against other local firms and companies from Spain, France, Germany, and China. La Peninsular teamed up with Spain's Fomento de Construcciones y Contratas, which will lead the partnership. A third consortium composed of Spain's OHL and Acciona Construcciones, local firms Gami Ingeniera e Instalaciones, Impulsora de Desarrollo Integral, and Tradeco Infraestructura was disqualified for failing to meet the prerequisites in the project's bidding rules. According to BNamericas, the MXN13 billion project involves the construction of line 12 of the suburban train. The new line will link Iztapalapa and Tlahuac districts. El Universal notes that the date set for the start of construction works for the metro system was moved to July 3 from June 10. BNamericas adds that the the transport and communications ministry delayed the start of the construction due to the project's complexity. The ministry first pushed the deadline for presenting technical offers to April 30 from April 4, and then rescheduled the submission of economic proposals to May 19 from April 21. The contract will be awarded on June 5. Empresas ICA, S.A.B de C.V. -- http://www.ica.com.mx/-- the largest engineering, construction, and procurement company in Mexico, was founded in 1947. ICA has completed construction and engineering projects in 21 countries. ICA's principal business units include civil construction and industrial construction. Through its subsidiaries, ICA also develops housing, manages airports, and operates tunnels, highways, and municipal services under government concession contracts and/or partial sale of long-term contract rights. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 20, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Empresas ICA S.A.B. de C.V. S&P said the outlook is stable. LEAR CORP: Annual Stockholders Meeting to be Held Thursday ---------------------------------------------------------- Lear Corp. Chief Executive Officer Robert E. Rossiter said that the company will hold its 2008 Annual Meeting of Stockholders on May 8, 2008, at 10:00 a.m. (Eastern Time). The meeting will be held at Lear Corporation�s Corporate Headquarters at 21557 Telegraph Road in Southfield, Michigan. At the annual meetings, stockholders will be asked to: 1. elect three directors; 2. ratify the appointment of Ernst & Young LLP as the company�s independent registered public accounting firm for 2008; 3. consider one stockholder proposal, if presented at the meeting; and 4. conduct any other business properly brought before the meeting or any adjournments or postponements thereof. Only stockholders of record at the close of business on March 14, 2008 will be allowed to vote. About Lear Corporation Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) -- http://www.lear.com/-- supplies automotive interior systems, electrical distribution systems and related electronic products. The company has around 91,000 employees at 215 facilities in 35 countries. Outside the United States, Lear has subsidiaries in Germany, Luxembourg, Sweden, Singapore, China, India and Mexico, among others. * * * As reported in the Troubled Company Reporter-Latin America on March 24, 2008, Standard & Poor's Ratings Services placed the ratings on Lear Corp. on CreditWatch with negative implications. The company carries B+ Long-Term Foreign and Local Issuer Credit ratings from S&P. As of March 4, 2008, Lear Corp. carries B2 Corporate Family, Bank Loan Debt and Probability-of-Default ratings, and B3 Senio Unsecured Debt rating from Moody's Investors Service, which said the outlook is stable. LEAR CORPORATION: Earns US$78.2 Million for Q1 Ended March 29 ------------------------------------------------------------- Lear Corp. posted US$78.2 million in consolidated net profit on US$3.86 billion in consolidated net revenues for the first quarter ended March 29, 2008, compared with US$49.9 million in consolidated net profit on US$4.41 billion in consolidated net revenues for the first quarter ended March 29, 2008. The decline in net sales for the quarter reflects the divestiture of the Interior business and lower industry production in North America, due in part to the impact of a strike at a major supplier, offset in part by favorable foreign exchange and new business. In the seating segment, net sales increased slightly driven by favorable foreign exchange and the benefit of new business, offset by lower industry production in North America. Operating margins improved slightly, reflecting favorable cost performance and increased savings from restructuring actions, as well as the timing of commercial settlements, largely offset by lower industry production in North America. In the electrical and electronic segment, net sales increased slightly driven by favorable foreign exchange, partially offset by lower industry production in North America. Operating margins improved, reflecting favorable operating performance, including savings from restructuring actions and the net impact of legal and commercial claims, partially offset by lower industry production in North America. In the first quarter of 2008, free cash flow was negative US$31.4 million, compared with negative US$32.1 million in the first quarter of 2007. During the quarter, the Company implemented a global operating structure for its two business units, naming Lou Salvatore, President - Global Seating Systems, and Ray Scott, President - Global Electrical and Electronic Systems. This new structure is consistent with the global strategies of the Company's major customers, allows Lear to take full advantage of its global scale, leverages Lear's worldwide engineering and product development resources and enables Lear to access the lowest cost manufacturing and sourcing available. Lear continued to grow its sales outside of North America and expand its low-cost footprint in Asia, including a new foam plant in Wuhu, China and a new seat trim facility in Hai Phong, Vietnam. "Although we are facing significant challenges in North America, Lear's underlying operating fundamentals remain strong," said Bob Rossiter, Lear Chairman, Chief Executive Officer and President. "The Lear team remains very focused on delivering outstanding quality and customer service to our customers. At the same time, we are putting in place a global operating structure for our business units and taking aggressive actions to improve our longer-term competitiveness." Full-Year 2008 Outlook Lear expects 2008 net sales of approximately US$15.5 billion, compared with prior guidance of US$15.0 billion. The increase reflects the positive impact of foreign exchange, mainly the strong Euro, partially offset by lower industry production in North America. Lear's 2008 earnings outlook remains unchanged, reflecting favorable operating performance and foreign exchange, offset by lower industry production in North America and increasing commodity costs. Lear anticipates 2008 income before interest, other expense, income taxes, restructuring costs and other special items of US$660 to US$700 million. Restructuring costs in 2008 are estimated to be about US$100 million. Interest expense for 2008 is estimated between US$185 million and US$195 million. Pretax income before restructuring costs and other special items is estimated in the range of US$430 million to US$470 million. Tax expense is expected to be approximately US$135 million, depending on the mix of earnings by country. Capital spending in 2008 is estimated between US$255 million to US$275 million. Depreciation and amortization expense is estimated at about US$300 million. Free cash flow is expected to be solidly positive, at about US$250 million, for the year. Key assumptions underlying Lear's financial outlook include expectations for industry vehicle production of approximately 14.1 million units in North America compared with a prior forecast of 14.4 million units. In Europe, our forecast for industry production is 20.2 million units. Lear expects production for the Domestic Three to be down about 10% in North America, compared with a prior forecast of a 9% decline. In addition, we are assuming an exchange rate of US$1.52/Euro, compared with a prior forecast of US$1.45/Euro. As of Mach 29, 2008, Lear's unaudited consolidated balance sheet showed US$8.28 billion in total assets and US$7.03 billion in total liabilities, resulting in US$1.25 billion in shareholders' equity. About Lear Corporation Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) -- http://www.lear.com/-- supplies automotive interior systems, electrical distribution systems and related electronic products. The company has around 91,000 employees at 215 facilities in 35 countries. Outside the United States, Lear has subsidiaries in Germany, Luxembourg, Sweden, Singapore, China, India and Mexico, among others. * * * As reported in the Troubled Company Reporter-Latin America on March 24, 2008, Standard & Poor's Ratings Services placed the ratings on Lear Corp. on CreditWatch with negative implications. The company carries B+ Long-Term Foreign and Local Issuer Credit ratings from S&P. As of March 4, 2008, Lear Corp. carries B2 Corporate Family, Bank Loan Debt and Probability-of-Default ratings, and B3 Senio Unsecured Debt rating from Moody's Investors Service, which said the outlook is stable. LIBBEY INC: Loses US$3.5 Million in First Quarter Ended March 31 ---------------------------------------------------------------- Libbey Inc. disclosed that sales increased 4.3% to US$187.3 million in the first quarter of 2008 from US$179.5 million in the prior year first quarter. The company reported a net loss of US$3.5 million for the first quarter ended March 31, 2008, compared to a net loss of US$1.8 million in the prior year quarter. First Quarter Results For the quarter-ended March 31, 2008, sales increased 4.3% to US$187.3 million from US$179.5 million in the year-ago quarter. North American Glass sales increased 2.2% to US$127.5 million. The increase in sales was attributable to continued solid increases of over 18% in shipments to retail glassware customers in the United States and Canada and strong sales performance in Mexico. These increases were partially offset by lower shipments to United States foodservice customers, which were off over 12%. North American Other sales decreased 3.1% as shipments to Syracuse China customers were down approximately 12%, partially offset by an increase of 3% in sales of World Tableware products. International sales increased 22.2% as the result of increased sales to customers of Libbey China, Royal Leerdam and Crisal. A majority of the increased sales is attributable to Libbey China and a favorable currency impact on European sales. International sales increased approximately 8%, excluding the currency impact. The company reported income from operations of US$9.5 million during the quarter, compared to income from operations of US$10.4 million in the year-ago quarter. Factors contributing to the decrease in income from operations were an unfavorable mix of sales, as a result of lower foodservice sales, a US$1.4 million increase in natural gas expenses and a US$2.1 million increase in depreciation partially offset by a reduction of US$1.2 million in selling, general and administrative expenses. Earnings before interest and taxes (EBIT) were US$10.2 million, compared to US$12.2 million in the year-ago quarter. EBIT was US$7.1 million for North American Glass, compared to US$10.9 million in the first quarter if 2007, as a result of the unfavorable sales mix and higher natural gas expenses. North American Other reported EBIT for the first quarter of 2008 of US$3.8 million, which was flat compared to the first quarter of 2007. The first quarter 2007 results included a US$1.1 million one-time gain on the sale of excess land in Syracuse, New York. Excluding the gain on the sale of land recorded in 2007, the increase in EBIT in 2008 is attributable to higher income from operations at World Tableware, Syracuse China and Traex. The International segment reported an EBIT loss of US$0.7 million, which was a US$1.8 million improvement in EBIT as compared to the year-ago quarter. The improvement in EBIT was primarily related to Libbey China being in full operation, higher international sales and improved margins partially offset by higher natural gas costs in Europe. Libbey reported that earnings before interest, taxes, depreciation and amortization (EBITDA) was US$21.5 million in the first quarter of 2008, compared to EBITDA of US$21.4 million in the year-ago quarter. As a result of higher debt, primarily driven by the payment-in- kind notes, interest expense increased US$1.6 million compared to the year-ago period. The effective tax rate increased to 49.8% for the quarter, compared to 47.5% in the year-ago quarter. Libbey reported its net loss was US$3.5 million compared to a net loss of US$1.8 million in the first quarter of 2007. Working Capital and Liquidity As of March 31, 2008, working capital, defined as inventories and accounts receivable less accounts payable, increased by US$23.4 million from US$213.8 million to US$237.2 million, compared to Dec. 31, 2007, due to seasonal working capital needs. Free cash flow was a use of US$37.5 million as compared to a use of US$7.8 million in the first quarter of 2007. The primary contributors were a US$19.6 million payment to Vitro S.A. made in the current year related to the purchase of Crisa in 2006 and increased working capital of US$10.8 million at Libbey China, where production did not begin until late in the first quarter of 2007. Libbey reported that it had available capacity of US$82.3 million under its Asset Based Loan credit facility as of March 31, 2008. This compares to availability of US$89.7 million at Dec. 31, 2007. Outlook for 2008 Chairperson and chief executive officer, John F. Meier said, "We are pleased with the strength of our total sales performance. We experienced healthy increases in U.S. and Canadian retail glassware, Crisa and Libbey China shipments during the quarter. We reported solid EBITDA performance in spite of softness in the U.S. foodservice market and higher natural gas costs. We expect second quarter sales to be in the range of US$215 million to US$220 million, and EBITDA to be between US$30 million and US$32 million in the second quarter of 2008." Mr. Meier added, "As the result of a solid first quarter, finishing on the high side of our EBITDA guidance, and given the strong retail and International sales performance offsetting the softness in the U.S. foodservice channel of distribution, we are confirming our guidance for 2008 EBITDA to be in an expected range of US$113 million to US$123 million." About Libbey Inc. Based in Toledo, Ohio, Libbey Inc. -- http://www.libbey.com/-- operates glass tableware manufacturing plants in the United States in Louisiana and Ohio, as well as in Mexico, China, Portugal and the Netherlands. Its Crisa subsidiary, located in Monterrey, Mexico, is the leading producer of glass tableware in Mexico and Latin America. Its Royal Leerdam subsidiary, located in Leerdam, Netherlands, is among the world leaders in producing and selling glass stemware to retail, foodservice and industrial clients. Its Crisal subsidiary, located in Portugal, provides an expanded presence in Europe. Its Syracuse China subsidiary designs, manufactures and distributes an extensive line of high- quality ceramic dinnerware, principally for foodservice establishments in the United States. Its World Tableware subsidiary imports and sells a full-line of metal flatware and holloware and an assortment of ceramic dinnerware and other tabletop items principally for foodservice establishments in the United States. Its Traex subsidiary, located in Wisconsin, designs, manufactures and distributes an extensive line of plastic items for the foodservice industry. In 2006, Libbey Inc.'s net sales totaled US$689.5 million. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 3, 2006, In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. Consumer Products sector, the rating agency confirmed its B2 Corporate Family Rating for Libbey Glass Inc., and its B2 rating on the company's US$306 million senior secured notes due 2011. Additionally, Moody's assigned an LGD3 rating to the notes, suggesting noteholders will experience a 49% loss in the event of a default. NWT URANIUM: Releases Drill Result of Picachos Project in Mexico ---------------------------------------------------------------- NWT Uranium Corp. reported its results from the 2007 drill program conducted on its polymetallic Picachos Project in Mexico. Highlights include a 154.5-foot (47.1-meter) intercept of 83 grams per tonne silver and 0.84% combined zinc-lead, which starts at surface. The richest silver intercept returned 509 grams per tonne silver and 0.56% zinc-lead over 9.8 feet (3.0 meters). Significant gold and zinc-lead results included a 4.9- foot (1.52-meter) interval of 6.2 grams per tonne gold, 348 grams per tonne silver and 19.9% zinc-lead. The mineralized zone has been evaluated to a minimum strike length of 1,640 feet (500 meters). "We are very encouraged by these drill results, which confirm the bulk mining potential at Los Cochis," said NWT Uranium President and Chief Executive Officer, Marek J. Kreczmer. "The Picachos project is in the Sierra Madre Occidental Ignimbrite Belt, which is one of the largest silicic volcanic fields on Earth, and is traditionally known for high-grade epithermal gold and silver deposits such as Tayoltita and Rosario. We look forward to additional drilling to confirm the Los Cochis orebody shape and test its extensions, as well as explore other three main mineralized zones of the Picachos property." Results A total of 21 reverse circulation (RC) holes, representing 10,254 feet (3,125 meters), were drilled in November 2007. Of the 21 holes drilled, 18 targeted the main silver soil geochemical anomaly on seven lines spaced 328 feet (100 meters) apart, with most holes dipping to the southwest. Of particular note, Holes COCH3, 6, 13 and 20 were drilled from the same location in four different directions as a preliminary shape investigation of the orebody. Additionally, two holes tested an IP anomaly located 820 feet (250 meters) east of the main zone while one hole (COCH15) tested a gold soil anomaly. The intercepts reported are RC mineralized intercepts. True width of the orebody is not estimable at this stage. The targets drilled at Los Cochis tested old workings and high silver geochemistry on surface, identified through an extensive soil geochemical survey conducted in 2005. Specifically, rock chip-channel and grab samples returned individual values of up to 145 ounces per ton (4,975 grams per tonne) silver, 0.25 oz/t (8.61 grams per tonne) gold, 53% zinc as well as 50% lead, as detailed in a press release dated Oct. 31, 2007. The drilling intercepted mostly andesitic volcanosedimentary rocks, with some andesitic flow and dykes, and quartz feldspar porphyritic dykes. Mineralization occurs in propylitic altered andesitic rocks, and consists of galena, pyrite, sphalerite, tetrahedrite and chalcopyrite. NWT Uranium has an option to earn a 70% interest in Picachos from Yamana Gold as announced in a press release dated July 12, 2006. Quality Control/Assurance Sampling was supervised by Michelle Robinson, MASc., P.Eng., who is a qualified person as defined by National Instrument 43-101 and a consultant to NWT Uranium. Ms. Robinson has supervised the preparation of this press release. Dry and wet RC drilling samples were routinely collected on five-foot intervals and reduced using cyclone and Jonas splitter. Samples were transported to Acme Analytical Laboratories in Guadalajara for preparation and pulps were sent to Acme's Vancouver office for assay (ICP-MS). Samples containing more than 0.3 grams per tonne gold, 50 grams per tonne silver or more than 1% base metals were re-analyzed using a 30-gram fire assay for gold-silver, and high-grade multi- element ICP methods. Blind standard pulps were inserted into the sample stream roughly every 25 samples to check for within- batch analytical precision. As previously announced in December 2007 press release, 2,050 total samples were collected through the drill program. Drilling was conducted by Layne de Mexico SA. A total of 88 drilling samples were selected from both mineralized and non-mineralized intercepts from the back-up splits in camp, and sent to SGS Minerals Services in Durango, Mexico, for gold and silver analysis. Of the 88 samples, only two report significant differences between Acme and SGS. Abour NWT Uranium NWT Uranium Corporation, (TSXV: NWT; OTCBB: NWURF) -- http://www.nwturanium.com/-- formerly Northwestern Mineral Ventures Inc. is engaged in acquiring, exploring and developing uranium bearing mineral properties located in Canada and Niger. The company's properties are at the exploratory stage and thus non-producing. Its exploration activities consist in exploration and drilling of its properties to further assess the mineral potential and to develop more detailed exploration programs. The company has a portfolio of properties around the world, including a 38.5% stake in Niger Uranium Ltd.; a binding Letter of Intent to acquire up to 65% interest in the North Rae Uranium Project in the Ungava Bay region in northern Quebec, Canada; an option to acquire up to 65% interest in the Daniel Lake Uranium Project; and an option to earn up to 75% ownership of the Waterbury Project. On Jan. 9, 2007, the company finalized the North Rae Option Agreement with Azimut Exploration Inc., a mineral exploration company using cutting-edge targeting methodologies to discover major ore deposits. * * * As reported in the Troubled Company Reporter on Dec. 19, 2007, Azimut Exploration Inc. has delivered a notice of default to NWT Uranium Corporation regarding a number of NWT's specific obligations that have not been complied with pursuant to the terms of the North Rae and Daniel Lake property option agreements. Azimut holds 100% of the North Rae and Daniel Lake properties, and NWT holds an option to earn an initial 50% interest therein over a 5-year period and a second option to earn an additional 15% interest. NWT Uranium is the operator on both properties. VISTEON CORP: March 31 Balance Sheet Upside-Down by US$136 Mil. --------------------------------------------------------------- Visteon Corporation's balance sheet at March 31, 2008, showed total assets of US$7.2 billion and total liabilities of US$7.3 billion resulting in a total shareholders' deficit of about US$136 million. The company reported net loss of US$105 million, including a US$40 million loss associated with the sale of North American aftermarket facilities and a US$21 million asset impairment. For the first quarter 2007, Visteon reported a net loss of US$153 million which included a US$40 million of asset impairments. The company related that divestitures and plant closures decreased product sales by US$340 million; favorable currency of US$181 million and higher Asian sales were partial offsets. Services revenue was US$121 million, a decrease of US$9 million from the same period in 2007. Visteon reduced its net loss by US$48 million to US$105 million for first quarter 2008. Cash used by operating activities for first quarter 2008 was US$126 million, a US$5 million improvement over the US$131 million in first quarter 2007. First quarter 2008 cash from operations was negatively impacted on a year-over-year basis by a number of factors including cash restructuring costs, pension, OPEB and recoverable tax assets. Capital expenditures for first quarter 2008 were US$74 million, US$10 million higher than the same period a year ago, reflecting investments to support future business. Free cash flow, for first quarter of 2008 was negative US$200 million, compared with negative US$195 million in the same period of 2007. As of March 31, 2008, the company's consolidated cash balances totaled US$1.6 billion. Restructuring and Divestitures During the first quarter, Visteon addressed a number of facilities as part of its restructuring initiatives. Visteon sold its non-core North American-based aftermarket underhood and remanufacturing operations which included two facilities in Mexico and one in Tennessee. The businesses generated approximately US$130 million of sales in 2007 and had a negative gross margin of approximately US$16 million. In February 2008, Visteon closed its interiors facility in Bellignat, France, resulting in the separation of approximately 300 employees. A majority of the production at this facility was consolidated into other manufacturing facilities. Additionally, Visteon remains on track to exit its Bedford, Indiana, and Concordia, Missouri, facilities later this year. During the first quarter of this year Visteon recorded US$46 million of restructuring charges. These charges were related to three facilities in continental Europe, which are being addressed as part of the company's three-year plan, and related cost-reduction actions associated with the company's drive to reduce overhead costs, through the reduction of general administrative and engineering related expenses. In January Visteon expected to generate cumulative savings of approximately US$215 million over the next three years as part of the overhead cost reduction initiative. To date approximately 250 salaried employees have been separated from the company in conjunction with this initiative, and Visteon remains on track to generate the expected savings. Visteon continues to address its operations in the United Kingdom. Visteon has a non-binding memorandum of understanding with Linamar Corporation for the sale of its Swansea, Wales, facility. Although the transaction has yet to be finalized and negotiations continue, Visteon has been able to mitigate the losses associated with the facility through agreements reached with customers supplied by the Swansea facility. About Visteon Corporation Based in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic, and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company's other corporate offices are in Shanghai, China; and Kerpen, Germany. The company has Latin America offices in Argentina, Brazil and Mexico. The company has facilities in 26 countries and employs approximately 43,000 people. * * * Moody's Investor Service placed Visteon Corp.'s long-term corporate family and probability of default ratings at 'B3' in November 2006. The ratings still hold to date with a negative outlook. ==================== P U E R T O R I C O ==================== CHILDREN'S TRUST: Fitch Puts 'BB' Rating on US$56,875,888 Bonds --------------------------------------------------------------- Fitch rates Children's Trust, tobacco settlement asset-backed bonds, series 2008 bonds (Commonwealth of Puerto Rico) as: -- US$139,003,082.40 series 2008A turbo capital appreciation bonds 'BBB-' due May 15, 2057; and -- US$56,875,888.00 series 2008B turbo capital appreciation bonds 'BB' due May 15, 2057. The Children's Trust has funded ASPIRA, an agency founded 45 years ago in New York City by a Puerto Rican social worker Antonia Pantoja. It has 1,100 staff members and operates in seven U.S. states and in Puerto Rico. HEALTHSOUTH CORP: Buying Rehabilitation Hospital of South Jersey ---------------------------------------------------------------- HealthSouth Corp. entered into a definitive agreement, through one of its wholly owned subsidiaries, to purchase The Rehabilitation Hospital of South Jersey, a 34-bed inpatient rehabilitation hospital in Vineland, New Jersey, from The Mediplex/Cumberland Rehabilitation Limited Partnership. "We are very pleased to welcome The Rehabilitation Hospital of South Jersey to HealthSouth's nationwide network of preeminent rehabilitation hospitals," Jay Grinney, HealthSouth's president and chief executive officer, said. "The Rehabilitation Hospital of South Jersey, under the outstanding leadership of Dr. Francis Bonner, has provided exceptional care to patients in the South Jersey area for many years and we look forward to continuing this tradition for many years to come." The acquisition of The Rehabilitation Hospital of South Jersey adds a third New Jersey rehabilitation hospital to HealthSouth's northeast region. HealthSouth currently operates HealthSouth Rehabilitation Hospital of New Jersey in Toms River and Tinton Falls Rehabilitation Hospital, a Joint Venture of HealthSouth and Monmouth Medical Center, in Tinton Falls. The closing of the transaction is subject to certain state and federal regulatory approvals and is expected to take place late in the second quarter or early in the third quarter of 2008. Headquartered in Birmingham, Alabama, HealthSouth Corporation (NYSE: HLS) -- http://www.healthsouth.com/-- provides inpatient rehabilitation services. Operating in 26 states across the country and in Puerto Rico, HealthSouth serves more than 250,000 patients annually through its network of inpatient rehabilitation hospitals, long-term acute care hospitals, outpatient rehabilitation satellites, and home health agencies. HealthSouth Corporation's balance sheet showed total shareholders' deficit of US$1.5 billion as of Dec. 31, 2007, compared to a deficit of US$2.2 billion at March 31, 2007. * * * As reported on March 17, 2008, Moody's Investors Service affirmed the B3 Corporate Family Rating of HealthSouth Corporation. Moody's also upgraded the rating on the company's senior secured credit facility to Ba3 from B2 and affirmed the rating on the company's senior unsecured notes at Caa1 in accordance with the application of Moody's Loss Given Default Methodology. Moody's said the ratings outlook is stable. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Eyes 3.45MM Barrels of Daily Oil Output --------------------------------------------------------------- Petroleos de Venezuela SA's 2008 budget published in Venezuela's official gazette says that the firm will produce 3.45 million barrels of crude oil per day this year. Reuters sources said that Petroleos de Venezuela's production is below official figures. Venezuela's total output is currently at 2.5 million barrels per day but government figures go beyond 3.0 million barrels per day, the sources added. Reuters notes that the government denied the sources' statement, describing their estimates as "politically motivated attacks." Reuters relates that the production target this year is about 10% higher compared to last year's average production of 3.15 million barrels per day. The planned production is 16% higher to last year's goal of 2.97 million barrels per day. "The US$56.6 billion budget projects condensates and liquids production of 189,000 barrels per day," bringing the country's total expected output to 3.64 million barrels per day, Reuters states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As reported in the Troubled Company Reporter-Latin America on April 28, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Petroleos de Venezuela S.A. S&P said the outlook is stable. REVLON INC: March 31 Balance Sheet Upside-Down by US$1.1 Billion ---------------------------------------------------------------- Revlon Inc. disclosed Thursday its earnings for the fiscal quarter ended March 31, 2008. At March 31, 2008, the company's consolidated balance sheet showed US$882.6 million in total assets and US$2.0 billion in total liabilities, resulting in a US$1.1 billion total stockholders' deficit. The company reported a net loss of US$2.5 million in the first quarter of 2008, compared with a net loss of US$35.2 million in the first quarter of 2007. Operating income was US$32.5 million in the first quarter of 2008, versus operating income of US$3.0 million in the first quarter of 2007. Adjusted EBITDA in the first quarter of 2008 was US$58.1 million, compared to an Adjusted EBITDA of US$32.3 million in the same period last year. Operating income, net loss and Adjusted EBITDA in the first quarter of 2008 included a net gain of US$6.0 million related to the sale of a non-core trademark. Operating income, net loss and Adjusted EBITDA in the first quarter of 2007 were also reduced by US$4.3 million of restructuring charges, and included a benefit of US$4.4 million from the reduction of lease liability related to the consolidation of office space in New York. The improvement in operating income, net loss and Adjusted EBITDA in the first quarter of 2008 compared to the same period last year, excluding the US$6.0 million net gain related to the sale of a non-core trademark, was due mainly to lower selling, general and administrative expenses, primarily due to the fact that the first quarter of 2007 included significant brand support expenses related to the launch of Revlon Colorist hair color. Revlon president and chief executive officer, David Kennedy, said, "Our strong financial results for the first quarter of 2008 build upon our performance in 2007. These results continue to validate our strategy, and we remain focused on increasing the value of our company by building the Revlon brand." First Quarter 2008 Results Net sales in the first quarter of 2008 decreased 2.5% to US$320.4 million, compared to net sales of US$328.6 million in the first quarter of 2007. Excluding the favorable impact of foreign currency fluctuations, net sales in the first quarter decreased 5.5% versus year-ago. Net sales in the first quarter of 2007 benefited from initial shipments of beauty care products, including the launches of Revlon Colorist hair color and Mitchum Smart Solid anti-perspirant and deodorant. In the United States, net sales in the first quarter of 2008 decreased 8.3% to US$177.2 million, compared to net sales of US$193.3 million in the first quarter of last year. In the company's international operations, net sales in the first quarter of 2008 increased 5.8% to US$143.2 million, compared to net sales of US$135.3 million in the first quarter of last year. Excluding the favorable impact of foreign currency fluctuations, net sales in the first quarter of 2008 decreased 1.5% compared to the same period last year, reflecting higher net sales in the Asia Pacific and Latin America regions, which were more than offset by lower net sales in the Europe region. In the first quarter of 2007, net sales in the Europe region were positively impacted by retail space gains related to the Revlon brand and higher closeout sales. US$150 Million Two-Year Interest Rate Swap In April 2008, the company entered into a US$150.0 million two- year floating-to-fixed interest rate swap transaction related to indebtedness under the company's bank term loan, intended to reduce exposure to interest rate volatility. Following the execution of this swap and the US$150.0 million two-year floating-to-fixed interest rate swap that the company entered into in September 2007, approximately 60% of the company's total long-term debt is at fixed interest rates and approximately 40% is at floating interest rates. Outlook In conclusion, Mr. Kennedy said, "We have delivered improved margins and demonstrated our ability to control costs and improve cash usage. We have also demonstrated, with our 2008 new product launches, that we have reinvigorated our new product development process. We believe that strong new product development will result in sustainable sales growth, which given our margin structure, will be profitable. Our plan, therefore, is based on growing our sales and continued control of our costs. We believe these factors, along with other efficiencies, will lead to further margin expansion. All combined, we expect to generate sustainable, profitable sales growth and positive free cash flow." About Revlon Inc. Headquartered in New York City, Revlon Inc. (NYSE: REV) -- http://www.revlon.com/-- is a worldwide cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and personal care products company. The company's brands, which are sold worldwide, include Revlon(R), Almay(R), Mitchum(R), Charlie(R), Bozzano(R), Gatineau(R) and Ultima II(R). The company's Latin American operations are located in Argentina, Brazil, Chile, Mexico and Venezuela. ========================== V I R G I N I S L A N D S ========================== NVIDIA CORP: Court Rejects Trustee's Claim for US$100 Million ------------------------------------------------------------- NVIDIA Corporation said Friday that the United States Bankruptcy Court for the Northern District of California issued its Memorandum Decision After Trial in the 3dfx bankruptcy action. In the Decision, the Court found in favor of NVIDIA on all issues and rejected the Trustee's attempts to obtain damages from NVIDIA in excess of US$100 million. The Trustee's lawsuit arose from NVIDIA's 2001 acquisition of certain assets of its former competitor, 3dfx Interactive, Inc. Specifically, the Trustee claimed that NVIDIA did not pay fair value for the assets it acquired in the transaction, thereby allegedly harming 3dfx's creditors. "A trial was necessary to fully demonstrate that we conducted ourselves appropriately in the acquisition and we are very pleased with the Decision from the Court. The Decision is comprehensive, thorough, well-reasoned, and a complete rejection of the Trustee's legal and factual arguments," said David Shannon, NVIDIA's senior vice president and general counsel. The Court expressly found that "the Trustee's valuation theory -- every way it is articulated -- is simply not credible," and concluded that "the creditors of 3dfx were not injured by the Transaction." "We will continue to fight this matter through any and all appeals," said Mr. Shannon. About NVIDIA Headquartered in Santa Clara, California, NVIDIA Corp. (Nasdaq: NVDA) -- http://www.nvidia.com/-- is in the business of visual computing technologies and invented the GPU, a high-performance processor which generates breathtaking, interactive graphics on workstations, personal computers, game consoles, and mobile devices. NVIDIA serves the entertainment and consumer market with its GeForce(R) products, the professional design and visualization market with its Quadro(R) products, and the high- performance computing market with its Tesla(TM) products. Outside the U.S., the company has subsidiaries in these countries; Canada, Cayman Islands, Singapore, Australia, the United Kingdom, Germany, Hong Kong, Japan, Mauritius, India, China, British Virgin Islands, Finland and Netherlands. * * * The company carries Standard & Poor's Ratings Services BB- corporate credit rating. =========== X X X X X X =========== * Large Companies With Insolvent Balance Sheet ---------------------------------------------- Total Shareholders Total Equity Assets Company Ticker (US$MM) (US$MM) ------- ------ ------------ ------- Arthur Lange ARLA3 (23.61) 52.76 Kuala ARTE3 (33.57) 11.86 Bombril BOBR3 (485.40) 428.68 Caf Brasilia CAFE3 (909.16) 95.01 Chiarelli SA CCHI3 (68.72) 42.15 Ceper-Inv CEP (7.77) 120.08 Ceper-B CEP/B (7.77) 120.08 Telefonica Hldg CITI (1,481.31) 307.89 Telefonica Hldg CITI5 (1,481.31) 307.89 SOC Comercial PL COME (751.50) 450.17 Marambaia CTPC3 (1.38) 79.73 DTCOM-DIR To Co DTCY3 (14.16) 9.24 Aco Altona ESTR (49.52) 113.90 Estrela SA ESTR3 (62.09) 118.58 Bombril Holding FPXE3 (1,064.31) 41.97 Fabrica Renaux FTRX3 (5.55) 136.60 Cimob Partic SA GAFP3 (63.56) 94.60 Gazola GAZ03 (43.13) 22.28 Haga HAGA3 (115.97) 18.29 Hercules HETA3 (240.65) 37.34 Doc Imbituba IMB13 (20.49) 209.80 IMPSAT Fiber Networks IMPTQ (17.16) 535.01 Minupar MNPR3 (34.22) 158.48 Wetzel SA MWET3 (17.32) 129.98 Nova America SA NOVA3 (300.97) 41.80 Paranapamema SA PMAM3 (35.74) 3,713.71 Paranapamema-PRF PMAM4 (35.74) 3,713.71 Recrusul RCSL3 (59.33) 25.19 Telebras-CM RCPT RCTB30 (163.58) 229.94 Rimet REEM3 (219.34) 93.47 Schlosser SCL03 (81.35) 44.82 Tecel S Jose SJ0S3 (13.24) 71.56 Sansuy SNSY3 (63.13) 235.18 Teka TEKA3 (331.28) 536.33 Telebras SA TELB3 (163.58) 229.94 Telebras-CM RCPT TELE31 (163.58) 229.94 Telebras SA TLBRON (163.58) 229.94 TECTOY TOYB3 (3.79) 38.65 TEC TOY SA-PREF TOYB5 (3.79) 38.65 TEC TOY SA-PF B TOYB6 (3.79) 38.65 TECTOY SA TOYBON (3.79) 38.65 Texteis Renaux TXRX3 (103.01) 76.93 Varig SA VAGV3 (8,194.58) 2,169.10 FER C Atlant VSPT3 (104.65) 1,975.79 Wiest WISA3 (140.97) 71.37 *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Tara Eliza E. Tecarro, Sheryl Joy P. Olano, Rizande de los Santos, and Pamella Ritah K. Jala, Editors. Copyright 2008. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *