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 13, 2008, Vol. 9, No. 94 Headlines A R G E N T I N A ABN AMRO: Moody's Puts Ba1/Caa1 Foreign & Local Deposit Ratings BANCO MACRO: To Extend Share Buyback Program for Another 30 Days DANA CORP: Ad Hoc Panel Wants Court Nod on US$3.5 Mil. Legal Fee DANA CORP: Appaloosa Wants Court Okay on Legal Fees Payment DESTINO SUR: Proofs of Claim Verification Deadline Is Aug. 12 EMPRESA DISTRIBUIDORA: Books ARS19MM Net Income in 1st Qtr. 2008 EXXOL SA: Proofs of Claim Verification Deadline Is Aug. 22 FARMACEUTICA INTERNACIONAL: Claims Verification Ends on June 24 GEOTEG SA: Trustee Verifies Proofs of Claim Until Aug. 22 LA CASONA: Proofs of Claim Verification Deadline Is June 13 * ARGENTINA: Moody's B3 Rating Reflects B Rank Fiscal Weakness B E R M U D A FOSTER WHEELER: Reports Additional Details on Global Power Group SECURITY CAPITAL: Moody's Continues Review Over Net Loss Release WARNER CHILCOTT: Earns US$33.7 Mil. in Quarter Ended March 31 B O L I V I A COEUR D'ALENE: Gets Environmental Assessment for Kensington Mine B R A Z I L ATARI INC: To Seek Review of Nasdaq's Move to Delist Securities ATARI INC: Gets US$20 Million Loan from Infogrames Entertainment BANCO BRADESCO: Insurance Unit Sells Shares in Aurea Seguradora BANCO DO BRASIL: To Launch Futures Hedge Loans for Agribusiness BANCO NACIONAL: Will Sell Companhia Brasiliana Stake, AES Says BANCO PINE: Net Profit Increased to BRL41.2MM in First Quarter CENTRAIS ELETRICAS: Inks US$430MM Loan Pact for Candiota Unit COMPANHIA ENERGETICA: Net Profit Rises to BRL490MM in 1Q 2008 COMPANHIA ENERGETICA: Won't Sell Power From Jirau in Advance DELPHI CORP: March 31 Balance Sheet Upside-Down by US$14 Billion GERDAU AMERISTEEL: To Hold Annual Shareholders Meeting on May 16 GENERAL MOTORS: US$200MM Aid to Axle Sparks Criticism From UAW JAPAN AIRLINES: FY2007 Fourth Qtr. Net Loss Down to JPY3.527BB SAPPI PAPIER: Moody's Places Ratings on Review, May Downgrade SPECTRUM BRANDS: March 30 Balance Sheet Upside-Down by US$232.9M TAM SA: Holds 72.4% International Market Share in April 2008 C A Y M A N I S L A N D S AHFP PANTERA: To Hold Final Shareholders Meeting on May 15 AHFP SYMPHONY: Sets Final Shareholders Meeting for May 15 AHFP TRIATTO: To Hold Final Shareholders Meeting on May 15 AMAPROP MASTER: Will Hold Final Shareholders Meeting on May 15 AMARANTH HELIX: Sets Final Shareholders Meeting for May 15 AMARETE LIMITED: Will Hold Final Shareholders Meeting on May 15 AMULET LTD: Sets Final Shareholders Meeting for May 15 ATLAS CPO: Will Hold Final Shareholders Meeting on May 15 BRYN MAWR: To Hold Final Shareholders Meeting on May 15 CEA 97A LTD: Sets Final Shareholders Meeting for May 15 EOC CORP I: To Hold Final Shareholders Meeting on May 15 GANNET V: Sets Final Shareholders Meeting for May 15 ISOTOPE LTD:: Will Hold Final Shareholders Meeting on May 15 KBW SMALL: To Hold Final Shareholders Meeting on May 15 LEIF INVESTMENTS: Sets Final Shareholders Meeting for May 15 PARMALAT SPA: Citigroup Won't Enter Into Settlement Talks PINE TREE: Will Hold Final Shareholders Meeting on May 15 SAPIC-98 REFERENCE: Sets Final Shareholders Meeting for May 15 VERTEX CAPITAL: Will Hold Final Shareholders Meeting on May 15 C H I L E AES GENER: Submits Study for Nueva Zaldivar Substation C O L O M B I A GENERAL MOTORS: Teams Up With Isuzu to Expand Colombia Bus Sales C O S T A R I C A SIRVA INC: Discloses New Directors After Plan Confirmation SIRVA INC: DIP Deal Amendment Allows Share Sale to Picot, Irving SIRVA INC: Files Motion to Extend Removal Period to Sept. 5 D O M I N I C A N R E P U B L I C AES CORP: 1st Qtr. Profit Mainly Due to LatAm Generation Biz AES CORP: Says Banco Nacional to Sell Companhia Brasiliana Stake E L S A L V A D O R AES CORP: Acquires Landfill Gas Project in El Salvador G U A T E M A L A IMAX CORP: Moody's Changes Outlook to Pos. on Improved Liquidity MILLICOM INTERNATIONAL: Proposes New Members of Board Directors J A M A I C A AIR JAMAICA: Ministry Intervenes in Firm's Conflict With Workers DYOLL INSURANCE: Liquidators File Lawsuit Against Parent DYOLL GROUP: Unit's Liquidators File Lawsuit Against Firm M E X I C O AMERICAN AXLE: UAW Chief Balks at GM's US$200 Mil. Aid to Axle BLOCKBUSTER INC: Obtains Authority to Review Circuit City Books COREL CORP: Appoints Kris Hagerman as Interim Chief Executive SHARPER IMAGE: Court Approves Financing Agreement With AICCO SHARPER IMAGE: Stay Lifted to Let American Express End Promo SHARPER IMAGE: Bid to Restrict Equity Trades Hearing Set May 14 VISTA GOLD: Evaluates Land Permit of Paredones Amarillos Project X-RITE INC: Posts US$16.8 Million Net Loss in 2008 First Quarter P E R U GRAN TIERRA: To Restate Financial Statements in 10-K Form Filing V E N E Z U E L A PETROLEOS DE VENEZEULA: To Form JV With China Nat'l Petroleum PETROLEOS DE VENEZUELA: Inks Joint Venture Pact With Enarsa PETROLEOS DE VENEZUELA: Will Offer New Type of Crude Blend * Fitch Expects Continued Market Growth in Brazil's Road Sector * Large Companies With Insolvent Balance Sheet - - - - - ================= A R G E N T I N A ================= ABN AMRO: Moody's Puts Ba1/Caa1 Foreign & Local Deposit Ratings --------------------------------------------------------------- Moody's Investors Service has assigned first-time ratings to ABN Amro Bank N.V. (Argentina). These are long- and short-term local-currency deposit ratings of Ba1 and Not Prime, and long- and short-term foreign-currency deposit ratings of Caa1 and Not Prime, respectively. Moody's also assigned the bank national scale ratings of Aaa.ar for local currency and Ba1.ar for foreign currency deposits. The local-currency deposit ratings have a stable outlook, and those for foreign-currency deposits have a positive one, in line with the outlook on the foreign currency Caa1 country ceiling for Argentina. Moody's noted that the ratings are constrained by Argentina's local- and foreign-currency country ceilings for bank deposits. As a branch of ABN Amro Bank N.V. of the Netherlands (rated by Moody's at Aa2/ P-1), ABN Amro Bank N.V. (Argentina) is not assigned a bank financial strength rating. Moody's Ba1 rating for long-term local currency deposits of the branch in Argentina reflects the risk of the head office, but it is constrained by the country ceiling. The rating agency also points out that ABN Amro Bank N.V. (Argentina)'s extensive track record of operations in the Argentine financial market, where it has had a presence since 1914, reinforces management's knowledge of the local environment, its product development and distribution capabilities. The Argentine branch also benefits from the head office's financial and management support, including its risk management and controls infrastructure. These ratings were assigned to ABN Amro Argentine Branch: -- Global long-term local-currency deposit rating: Ba1, stable outlook -- Short-term local-currency deposit rating: Not Prime -- National scale rating for local-currency deposits: Aaa.ar -- Global long-term foreign-currency deposit rating: Caa1, positive outlook -- Short-term foreign-currency deposit rating: Not Prime -- National scale rating for foreign currency deposits: Ba1.ar Netherland-based ABN Amro Bank N.V. (Euronext: AAB, NYSE: ABN) is a consortium of three European banks: Royal Bank of Scotland Group, Fortis and Banco Santander and has operations in about 63 countries around the world. ABN Amro Argentina is a subsidiary of the bank. ABN Amro Argentina had total assets of ARS1.03 billion (approximately US$323 million) and equity of ARS77 million (US$24 million). BANCO MACRO: To Extend Share Buyback Program for Another 30 Days ---------------------------------------------------------------- Banco Macro S.A.'s Finance and Investor Relations Manager Jorge Scarinci said in a conference call that the bank will extend for another 30 days the share repurchase program it launched in January 2008. Business News Americas relates that Banco Macro said on Jan. 9, 2008, that it would repurchase up to ARS210 million of its own shares. As of May 8, Banco Macro bought 164,189 shares at ARS6.997 each for a total of ARS1.15 million. According to Mr. Scarinci, the share buyback program expired on May 9, 2008. The program includes the purchase of 30 million common shares, or three million American Depository Receipts equivalent to 4.4% of outstanding shares, at up to ARS7.50 each, BNamericas states. 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. DANA CORP: Ad Hoc Panel Wants Court Nod on US$3.5 Mil. Legal Fee ---------------------------------------------------------------- The Ad Hoc Committee of Dana Corp. noteholders asks the U.S. Bankruptcy Court for the Southern District of New York to allow as administrative expenses the US$3,568,768 in professional fees and expenses of its counsel, Stroock & Stroock & Lavan LLP, for services rendered from March 3, 2006, through Feb. 29, 2008, pursuant to Section 503(b) of the Bankruptcy Code. The Ad Hoc Committee has been a guiding presence from start to finish, acting as the voice for creditors holding in excess of US$1.4 billion of claims, representing more than two-thirds of the total allowed claims in the general unsecured class, Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP, in New York, says. Absent the Ad Hoc Committee's efforts to build consensus and facilitate the progress of the Debtors' Chapter 11 Cases, the Debtors' reorganization would have faced significant delays and might have been jeopardized altogether, Mr. Hansen avers. The Reorganized Debtors support the application of the Ad Hoc Committee for payment of US$3,568,768 in fees and expenses to Stroock & Stroock, comprising: -- US$3,431,673 in fees incurred, -- US$112,094 in expenses incurred, and -- US$25,000 in fees and expenses to be incurred in connection with the preparation and prosecution of the Application. Corinne Ball, Esq., at Jones Day, in New York, says the Ad Hoc Committee has made substantial contributions to the Debtors' estate and should be reimbursed of fees and costs, citing that: * Certain of the Ad Hoc Committee members made an actual and substantial cash contribution of a significant portion of the US$540,000,000 invested for the purchase of New Series B Preferred Stock, without which the Debtors would have been unable to emerge from Chapter 11. * The Ad Hoc Committee served as a potential additional source of financing for the Debtors. * The Ad Hoc Committee took an active role in facilitating and negotiating the Plan by being actively involved in negotiations with the Debtors, the Official Committee of Unsecured Creditors and Centerbridge Capital Partners L.P. regarding the contents of the Disclosure Statement and the Plan; and participated in the drafting of the Disclosure Statement and Plan. Ms. Ball points out the contributions made by the Ad Hoc Committee were unique and were generally not duplicative of the efforts of any other Court-appointed official committee, including the Creditors Committee. The Debtors ask the Court to cap all fees and expenses related to the application and its prosecution at US$25,000. About Dana Corp. Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of Jan. 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News, Issue No. 74; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. The outlook is negative. At the same time, Standard & Poor's assigned Dana's US$650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating (two notches higher than the corporate credit rating) with a recovery rating of '1', indicating an expectation of very high recovery in the event of a payment default. In addition, S&P assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. DANA CORP: Appaloosa Wants Court Okay on Legal Fees Payment ----------------------------------------------------------- Dana Corp. equity holder Appaloosa Management, L.P., seeks allowance of an administrative expense claim aggregating US$2,507,657, for professional fees and expenses incurred by its counsel, White & Case LLP, and US$454,017 in expert fees and expenses incurred by Blackstone Advisory Services, L.P., its financial advisor. J. Christopher Shore, Esq., at White & Case, LLP, in New York, says the application seeks recovery of the actual reasonable fees and expenses incurred by Appaloosa in making a substantial contribution in Dana Corp. and its debtor-affiliates' Chapter 11 cases. Mr. Shore says payment of the fees and expenses will compensate Appaloosa for its critical role in bringing about what were unquestionably material enhancements to the plan investment agreement, which ultimately became the cornerstone of the Debtors' now-confirmed Plan of Reorganization. He contends that without Appaloosa's willingness to incur the material costs of retaining attorneys and financial advisors who challenged the material shortcomings of the sequential proposals made by Centerbridge Capital Partners L.P., the creditors of the Debtors would have received significantly less in the Chapter 11 cases. Objections (1) U.S. Trustee Diana G. Adams, the United States Trustee for Region 2, says Appaloosa has not met its burden of proof or persuasion for receipt of a "substantial contribution" award. "Appaloosa is, in essence, a losing bidder in an equity investment of the Debtors who stands in sharp contrast to Centerbridge," she says. After an openly protracted involvement, Appaloosa did not end up entering into an investment agreement with the Debtors, which the Debtors eventually entered into with Centerbridge. The U.S. Trustee adds that Appaloosa, which pursued membership on the Official Committee of Equity Security Holders only to resign six months later and then unsuccessfully pursue an investment opportunity in the Reorganized Debtors, has not overcome the presumption that it acted for its own interest. Furthermore, even if the Court were to find that Appaloosa has made a substantial contribution, Appaloosa cannot be reimbursed for the financial advisory fees and expenses incurred by Blackstone Advisory Services, L.P., its financial advisors, as there is no statutory basis under Sections 503(b)(3)(D) and (b)(4) of the Bankruptcy Code, which expressly limit their benefits to only "attorneys and accountants," Ms. Adams avers. (2) Ad Hoc Committee The Ad Hoc Committee of Noteholders opposes assertions by Appaloosa that it has made a substantial contribution to the Debtors' bankruptcy cases because: * Appaloosa's actions did not result in a direct monetary benefit to the Debtors' estate; * Appaloosa's actions did not cause the significant improvements to the Centerbridge Investment, which it claims to have been a response to its proposals; and * Appaloosa's actions did not result in an increased recovery for unsecured creditors. The Ad Hoc Committee further asserts that Appaloosa is not entitled to a substantial contribution award for acting in its own interest as an unsuccessful bidder. Courts have consistently held that a prospective bidder, by definition, acts in its own economic interest and any incidental benefit to the estate resulting from its bids does not rise to the level of a "substantial contribution" within the meaning of Section 503(b), the Ad Hoc Committee notes. About Dana Corp. Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of Jan. 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News, Issue No. 74; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. The outlook is negative. At the same time, Standard & Poor's assigned Dana's US$650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating (two notches higher than the corporate credit rating) with a recovery rating of '1', indicating an expectation of very high recovery in the event of a payment default. In addition, S&P assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. DESTINO SUR: Proofs of Claim Verification Deadline Is Aug. 12 ------------------------------------------------------------- The court-appointed trustee for Destino Sur S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until Aug. 12, 2008. The trustee will present the validated claims in court as individual reports on Sept. 23, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Destino Sur 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 Destino Sur's accounting and banking records will be submitted in court on Nov. 5, 2008. The trustee is also in charge of administering Destino Sur's assets under court supervision and will take part in their disposal to the extent established by law. EMPRESA DISTRIBUIDORA: Books ARS19MM Net Income in 1st Qtr. 2008 ---------------------------------------------------------------- Empresa Distribuidora y Comercializadora Norte S.A. reported its results for the three month period ended March 31, 2008 (first quarter of 2008). All figures are stated in Argentine Pesos and have been prepared in accordance with Argentine GAAP. Solely for the convenience of the reader, peso amounts as of and for the period ended March 31, 2008, have been translated into U.S. dollars at the buying rate for U.S. dollars quoted by Banco de la Nacion Argentina on March 31, 2008, of ARS3.168. First Quarter 2008 Highlights Net Sales decreased 27.5% to ARS455.7 million in the three months ended March 31, 2008 from ARS628.4 million in the three month ended March 31, 2007. Excluding the effect of the full recognition of the retroactive VAD increase in 2007 (ARS218.6 million), the company's net sales increased 11.2% from ARS409.8 million in the first quarter of 2007, to ARS455.7 million in the first quarter of 2008. This increase is mainly due to the application of the 9.63% Cost Monitoring Mechanism (CMM) adjustments to its VAD starting in the second half of 2007, the recording of only two months of sales following the February 2007 VAD increase in the first quarter of 2007 -- compared to three months registered in the first quarter of 2008 -- and an increase in the volume of energy sold. The impact of the 9.63% CMM adjustment in net sales for the three month period ended March 31, 2008, amounted to ARS19.7 million. This increase is being collected through the PUREE funds. Volume of Energy Sold, increased by 4.4% to 4,589 GWh in the three months ended March 31, 2008 from 4,395 GWh in the three months ended March 31, 2007. The increase in volume is attributable to a 2.7% increase in the average GWh consumption per customer and a 1.7% increase in the number of customers. Gross Margin decreased 41.8% to ARS240.8 million in the three months ended March 31, 2008 from ARS414 million in the three months ended March 31, 2007. This decrease is exclusively due to the recording in the first quarter of 2007 of the full amount of the retroactive portion of the VAD increase (including CMM) for the period from Nov. 1, 2005 to Jan. 31, 2007. The retroactive portion of this VAD increase resulted in a positive impact of ARS218.6 million in the first quarter of 2007. Excluding the effect of the retroactive VAD adjustment, gross margin increased 23.2% from ARS195.4 million in the three months ended March 31, 2007 to ARS240.8 million in the three months ended March 31, 2008. Net Operating Income decreased from ARS268.4 million in the three months ended March 31, 2007, to ARS64.2 million in the three months ended March 31, 2008, mainly due to the recording in the year ended Dec. 31, 2007 of the retroactive portion of the VAD increase (including CMM). Net Operating Income (Excluding Retroactive) increased from ARS49.8 million in the three months ended March 31, 2007, to ARS64.2 million in the three months ended March 31, 2008 Net Income reached ARS19 million in the three months ended March 31, 2008, compared to ARS106.8 million in the three months ended March 31, 2007. As described above, net income decreased mainly as a consequence of the recording in 2007 of the full amount of the retroactive portion of the VAD increase charged to the company's non-residential customers (including all CMM adjustments). Absorption of Accumulated Deficit The Ordinary and Extraordinary Shareholders' Meeting held on April 14, 2008 decided to absorb the accumulated deficit existing as of Dec. 31, 2007 for ARS88.6 million. Taking into account the order of preference established by the regulations of the National Securities Commission, the company absorbed the accumulated deficit with the Additional paid-in capital, which as of Dec. 31, 2007 amounted to ARS106.9 million. Based in Buenos Aires, Argentina, Empresa Distribuidora y Comercializadora Norte S.A. aka Edenor is the largest electricity distribution company in Argentina in terms of number of customers and volume of energy sold. The company commenced operations in 1992, as a result of the privatization of the previously state-owned SEGBA. At that time, it was granted a 95-year concession to distribute electricity on an exclusive basis in its concession area, the greater Buenos Aires metropolitan area and northern portion of the City of Buenos Aires. EASA, which is controlled by Dolphin Energia S.A., is Edenor's holding company. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 1, 2007, Standard and Poor's Argentina assigned its 'B' Rating on US$220 Million Bond issued by Empresa Distribuidora y Comercializadora Norte S.A with annual fixed interest rate of 10.5% Notes due 2017. S&P said the outlook is positive. EXXOL SA: Proofs of Claim Verification Deadline Is Aug. 22 ---------------------------------------------------------- Ramon Fernandez, the court-appointed trustee for Exxol SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until Aug. 22, 2008. Mr. Fernandez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 41, 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 Exxol 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 Exxol's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Fernandez is also in charge of administering Exxol's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Exxol SA Juan Ramirez de Velazco 813 Buenos Aires, Argentina The trustee can be reached at: Ramon Fernandez Vedia 1624 Buenos Aires, Argentina FARMACEUTICA INTERNACIONAL: Claims Verification Ends on June 24 --------------------------------------------------------------- The court-appointed trustee for Farmaceutica Internacional de Flores S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 24, 2008. The trustee will present the validated claims in court as individual reports on Aug. 20, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Farmaceutica Internacional 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 Farmaceutica Internacional's accounting and banking records will be submitted in court on Oct. 1, 2008. The trustee is also in charge of administering Farmaceutica Internacional's assets under court supervision and will take part in their disposal to the extent established by law. GEOTEG SA: Trustee Verifies Proofs of Claim Until Aug. 22 --------------------------------------------------------- Monica Rajo, the court-appointed trustee for Geoteg SA's reorganization proceeding, will be verifying creditors' proofs of claim until Aug. 22, 2008. Ms. Rajo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 41, 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 Geoteg 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 Geoteg's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Creditors will vote to ratify the completed settlement plan during the assembly on May 27, 2009. The debtor can be reached at: Geoteg SA Tucuman 540 Buenos Aires, Argentina The trustee can be reached at: Monica Rajo Viamonte 2359 Buenos Aires, Argentina LA CASONA: Proofs of Claim Verification Deadline Is June 13 ----------------------------------------------------------- Gustavo Fiszman, the court-appointed trustee for La Casona de Maria SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 13, 2008. Mr. Fiszman will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 38, 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 La Casona 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 La Casona's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Fiszman is also in charge of administering La Casona's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: La Casona de Maria SRL Jeronimo Salguero 3066 Buenos Aires, Argentina The trustee can be reached at: Gustavo Fiszman Emilio Mitre 435 Buenos Aires, Argentina * ARGENTINA: Moody's B3 Rating Reflects B Rank Fiscal Weakness -------------------------------------------------------------- Despite growing economic and policy concerns in recent months, Argentina's ratings remain well positioned in the lower half of the 'B' category, according to Moody's Investors Service. "A combination of rising inflation, internal conflicts and government policies certainly raise concerns about the economy's medium-term prospects, but these developments do not warrant a rating downgrade," said Moody's lead analyst for Argentina, Vice President Gabriel Torres. Mr. Torres said the country's B3 local- and foreign-currency bond ratings, among the lowest of the 110 countries rated by Moody's, fully incorporate such risks. Moody's views countries in the B category as susceptible to high default risk -- even from just a single, major shock -- because of substantial political, economic, or fiscal weaknesses. "Argentina clearly belongs in this category," Mr. Torres added. "A rating above the low- to mid-range of the B category would be inconsistent with Argentina's combination of debt metrics and policy stance." Mr. Torres said a downgrade would only be required if the government defaulted or if there were an imminent risk of it doing so, and neither is currently likely. "The ratings carry a positive outlook, signaling that we believe that the current ratings could rise marginally from their very low levels because of the dramatic improvement in most debt metrics in recent years." Mr. Torres explained that Argentina's ratings are the same as those of Bolivia, Ecuador, and Paraguay -- much poorer countries with social and ethnic divisions that in certain instances are severe. "Argentina's wealthier economy provides a greater ability to withstand shocks, and the positive rating outlook reflects our view that further improvements in Argentina's creditworthiness could warrant a rating higher than these other countries," noted Mr. Torres. "But Argentina also has a long history of policy disarray, which is a major ratings constraint, and concerns about recent developments, particularly high and rising inflation, have once again brought the issue of policy credibility to the fore." Official figures gauge Argentina's current annualized inflation rate at close to 9%, but Moody's agrees with the widespread consensus outside the government that the actual annualized inflation rate is closer to 25%. "Compounding the concern about inflation itself is the government's response. Price controls that have been adopted have only created supply problems. And the lower reported inflation generates significant savings for the government by reducing interest payments on its inflation-indexed bonds, raising questions about the country's willingness to pay -- a major ratings concern given the country's repeated history of defaults," Mr. Torres concluded. ============= B E R M U D A ============= FOSTER WHEELER: Reports Additional Details on Global Power Group ---------------------------------------------------------------- Foster Wheeler Ltd. Has provided additional context for its view of the North American solid-fuel boiler market. In its earnings release of May 7, 2008, the company stated that it was beginning to see instances of delays in certain of its Global Power Group's (GPG) North American projects that it views as prospects. The company noted the following: * The delays the company noted in its earnings release refer to two CFB (circulating fluidized bed) boiler projects, one of which the company expected to book in its second fiscal quarter of 2008 and the other the company expected to book in its fourth fiscal quarter of 2008. * Capitalizing on the strength of the global markets for solid-fuel boilers and leveraging its global reach, GPG has identified three prospects, one of which it believes it has a high probability to win and if won, would replace the delayed project originally expected to be booked in the second fiscal quarter of 2008. * The company believes there is no basis to conclude at this time that the delayed projects described above will materially impact GPG's business in fiscal 2008 or 2009. * The solid-fuel new boiler market in North America accounted for less than 5% of the company's consolidated EBITDA in each of fiscal 2007 and the first quarter of fiscal 2008. * Despite the delays in the two North American CFB projects, the company believes that economic growth in China, India, Vietnam, Indonesia, Philippines, Russia, South Africa, Turkey and parts of South America and the Middle East will continue to drive strong boiler demand. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter-Latin America on April 28, 2008, Moody's Investors Service upgraded Foster Wheeler LLC's corporate family rating to Ba2 from Ba3, and raised its probability of default Rating to Ba2 from Ba3. The outlook continues to be positive. As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. SECURITY CAPITAL: Moody's Continues Review Over Net Loss Release ---------------------------------------------------------------- Moody's Investors Service has continued to review the ratings of Security Capital Assurance Ltd and its subsidiaries, including the A3 insurance financial strength ratings of XL Capital Assurance Inc. and XL Financial Assurance Ltd., for possible downgrade following the release of Secutiry Capital's first quarter 2008 earnings. During the quarter, the company recorded a GAAP net loss of US$97 million, which included unrealized mark to market losses on credit derivatives of approximately US$187 million. Loss reserve activity during the quarter included US$38 million in provisions for recent vintage second lien RMBS transactions. Security Capital did not record new credit impairment charges on its ABS CDO portfolio during the quarter, but did accrue US$22 million in charges to account for the accretion of the present value of credit impairments taken to date. Moody's stated that Security Capital's incurred losses in its direct RMBS portfolio remain slightly below the rating agency's prior expected-case loss estimate, while incurred losses in the ABS CDO portfolio exceed Moody's prior expected-case loss estimates. In Moody's view, there remains significant volatility in the company's mortgage-related risk exposures, which makes estimating the losses that will ultimately develop from this portfolio over time challenging. Moody's will continue to evaluate Security Capital's mortgage-related exposures in the context of actual performance as well as its developing view of the depth of the housing market's decline. In the event that Moody's ongoing evaluation of United States mortgage market dynamics leads the rating agency's to revise upward the stress case assumptions used to evaluate the company's capitalization, the insurance financial strength ratings of XL Capital Assurance Inc. and XL Financial Assurance Ltd. would likely be downgraded. In addition to its mortgage-related exposures, Security Capital also has material exposure to bonds issued by Jefferson County Alabama Sewer System, which is currently experiencing significant financial stress. While the company is working with Jefferson County and its advisors to potentially restructure the county's debt, it is possible that losses could result from this exposure during 2008, placing additional pressure on its capital adequacy position. As calculated by Moody's, Security Capital's claims-paying resources approximated US$3.5 billion at first quarter 2008. Given the lack of new business production at the company, which totaled just US$461 million in net par written during the quarter, Moody's expects a meaningful amount of portfolio amortization to occur during 2008. Finally, Moody's stated that its continuing review of Security Capital's ratings would focus on the company's capital adequacy in light of its significant mortgage-related exposures and other stressed credits, including Jefferson County Alabama, the company's significantly constrained financial flexibility, as well as developments regarding the company's restructuring plans, which have been slow to progress. Moody's further notes that any upward revision in Moody's projected cumulative loss assumptions for subprime RMBS could have a significant impact on the company's estimated stress case losses due to the leverage inherent in its ABS CDO exposures. Moody's said its review of Security Capital's ratings would likely be concluded within the next 30 days. Based in Hamilton, Bermuda, Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. For the three months ended March 31, 2008, Security Capital reported a net loss available to common shareholders of US$97 million. WARNER CHILCOTT: Earns US$33.7 Mil. in Quarter Ended March 31 ------------------------------------------------------------- Warner Chilcott Limited released its results for the quarter ended March 31, 2008. Revenue in the quarter ended March 31, 2008, totaled US$229.5 million, an increase of 5.1%, over the prior year quarter. The primary drivers of the increase in revenue were the net sales of the company's promoted products LOESTRIN 24 FE, DORYX, TACLONEX and FEMCON FE, which together contributed US$34.4 million of revenue growth for the quarter ended March 31, 2008, compared to the prior year quarter. The growth delivered by these products was offset primarily by a significant decline in ESTROSTEP FE revenue due to generic competition. The company reported net income of US$33.7 million in the quarter ended March 31, 2008, compared with a net loss of US$4.5 million in the prior year quarter. Cash net income in the quarter ended March 31, 2008 was US$82.9 million, an increase of US$31.9 million, compared to US$51 million in the prior year quarter. Revenue Revenue in the quarter ended March 31, 2008 was US$229.5 million, an increase of US$11.1 million, or 5.1%, over the prior year quarter. The primary drivers of the increase in revenue were the net sales of Warner Chilcott's promoted products LOESTRIN 24 FE, DORYX, TACLONEX and FEMCON FE, which together contributed US$34.4 million of revenue growth for the quarter ended March 31, 2008, compared to the same quarter last year. Changes in the net sales of the company's products are a function of a number of factors including changes in: market demand, gross selling prices, sales-related deductions from gross sales to arrive at net sales and the levels of inventories of the products held by its customers. Warner Chilcott uses IMS estimates of filled prescriptions for its products as a proxy for market demand. Sales of Warner Chilcott's oral contraceptive products decreased US$0.9 million, or 1.5%, in the quarter ended March 31, 2008, compared with the prior year quarter. LOESTRIN 24 FE generated revenues of US$46.9 million in the quarter ended March 31, 2008, an increase of 36.2% compared with US$34.4 million in the prior year quarter. The increase in LOESTRIN 24 FE net sales was primarily due to an increase in filled prescriptions of 53.3% over the prior year quarter and, to a lesser extent, higher average selling prices. The impact of such increases was partially offset by a contraction of pipeline inventories of LOESTRIN 24 FE relative to the first quarter of last year. The company introduced and began commercial sales of FEMCON FE in the second half of 2006, but did not initiate promotional efforts in support of the product until April 2007. The product generated revenues of US$10.8 million in the quarter ended March 31, 2008 compared to US$5 million in the prior year quarter. The increase in FEMCON FE net sales was primarily due to an increase in filled prescriptions of 122.3% over the prior year quarter and, to a lesser extent, higher average selling prices. ESTROSTEP FE net sales decreased US$17.3 million, or 78.7%, in the quarter ended March 31, 2008, compared to the same quarter last year. The decrease in ESTROSTEP FE net sales was primarily due to a 78.5% decline in filled prescriptions in the first quarter as a result of the introduction of generic versions of ESTROSTEP FE in the fourth quarter of 2007, including the company's authorized generic Tilia(TM) FE. Its revenue from sales of Tilia(TM) FE partially offset the revenue decline in ESTROSTEP FE. Sales of Warner Chilcott's dermatology products increased US$7.4 million, or 7.5%, in the quarter ended March 31, 2008, compared to the prior year quarter. Sales of DORYX increased US$8.4 million, or 31.4%, in the quarter ended March 31, 2008, primarily due to higher average selling prices compared to the prior year quarter and, to a lesser extent, a 2.6% increase in filled prescriptions and an expansion of pipeline inventories of DORYX relative to the prior year quarter. Sales of TACLONEX increased US$7.7 million, or 26.4%, to US$36.9 million in the quarter ended March 31, 2008, compared to US$29.2 million in the prior year quarter. Sales of TACLONEX, increased primarily due to a 16.5% increase in filled prescriptions in the quarter ended March 31, 2008, compared to the prior year quarter. Sales of DOVONEX decreased by US$8.7 million, or 20.9%, in the quarter ended March 31, 2008, compared with the prior year quarter. The decline was due to a decrease in filled prescriptions of 22.2% and a contraction of pipeline inventories, offset partially by higher selling prices, compared with the prior year quarter. Sales of Warner Chilcott's hormone therapy products increased US$5.2 million, or 14.6%, in the quarter ended March 31, 2008, compared with the prior year quarter. Sales of ESTRACE CREAM increased US$3.5 million, or 22.5%, in the quarter ended March 31, 2008 compared to the prior year quarter primarily due to higher average selling prices. Filled prescriptions for ESTRACE CREAM were flat in the quarter ended March 31, 2008, compared with the prior year quarter. Sales of FEMHRT increased US$2.8 million, or 21.3%, in the quarter ended March 31, 2008, compared to the prior year quarter due to higher average selling prices and an expansion of pipeline inventories, offset partially by an 11.9% decrease in filled prescriptions. Cost of Sales (Excluding Amortization of Intangible Assets) Cost of sales decreased US$2.8 million, or 5.6%, in the quarter ended March 31, 2008, compared with the prior year quarter. The quarter ended March 31, 2007 included a US$3.6 million expense relating to the write-off of inventories of certain DOVONEX products which were not sold due to a shift in the company's marketing strategies relating to DOVONEX. Excluding this expense in the quarter ended March 31, 2007, cost of sales increased US$0.8 million, or 1.7%, compared to the prior year quarter. Warner Chilcott's gross profit margin, as a percentage of total revenue, excluding the expense related to certain DOVONEX products in the quarter ended March 31, 2007, increased to 79.2% in the current year quarter from 78.5% in the prior year quarter. Its gross profit margins, as a percentage of total revenue, fluctuate due to a number of factors, primarily the mix of products sold. Selling, General and Administrative Expenses SG&A expenses for the quarter ended March 31, 2008, were US$55.2 million, a decrease of US$22.7 million, or 29.1%, from US$77.9 million in the prior year quarter. Advertising and promotion expenses for the quarter ended March 31, 2008, decreased US$14.1 million, or 44.9%, compared with the prior year quarter primarily due to a US$7.3 million decrease in direct-to-consumer advertising and an overall decrease in promotional spending. Selling and distribution expenses for the quarter ended March 31, 2008, increased US$1.9 million, or 8.6%, over the prior year quarter primarily due to the expansion of the company's field sales forces in the first half of 2007 to support the initiation of promotional activities for FEMCON FE. General, administrative and other (G&A) expenses in the quarter ended March 31, 2008, decreased US$10.5 million, or 42.2%, over the prior year quarter. The decrease in G&A is primarily due to a reduction in legal expenses of US$9.8 million in the quarter ended March 31, 2008, as compared to the prior year quarter. The quarter ended March 31, 2007, included a US$7.5 million expense related to the settlement of a class action lawsuit in connection with the company's OVCON 35 litigation. Research and Development Warner Chilcott's investment in R&D for the quarter ended March 31, 2008, was US$12.2 million, an increase of US$4.8 million, or 63.9%, compared with the prior year quarter. The increase in R&D activities was mainly due to costs incurred for clinical studies relating to two oral contraceptives as well as new projects which were initiated towards the end of 2007. The company completed the enrollment of the clinical study for a new low-dose oral contraceptive in July 2007 and completed the enrollment for another clinical study for a second new oral contraceptive in December 2007. Its product development activities are mainly focused on improvements to the existing products, new and enhanced dosage forms and new products delivering compounds which have been previously shown to be safe and effective. Net Interest Expense Net interest expense for the quarter ended March 31, 2008, was US$24 million, a decrease of US$6.9 million, or 22.4%, from US$30.9 million in the prior year quarter. Included in net interest expense in the quarter ended March 31, 2007, was US$1.3 million relating to the write-off of deferred loan costs associated with the optional prepayment of US$60 million of the company's senior secured credit facility. Warner Chilcott did not make any optional prepayments of debt during the quarter ended March 31, 2008. The decrease in net interest expense in the 2008 period was primarily the result of cumulative reductions in outstanding debt during 2007 which reduced the average debt balance outstanding from US$1,550.8 million in the quarter ended March 31, 2007 to US$1,200.2 million in the quarter ended March 31, 2008. The cumulative reduction in the average debt level is the result of optional prepayments made using cash flows from operations and cash on hand, net of investing activities. Income Taxes Warner Chilcott's effective tax rate for the quarter ended March 31, 2008, was 10.7%. In February 2008, the company's United States operating entities entered into an Advanced Pricing Agreement with the Internal Revenue Service covering the calendar years 2006 through 2010. The Advanced Pricing Agreement is an agreement with the IRS that specifies the agreed upon terms under which the company's U.S. entities are compensated for services provided on behalf of its non-U.S. entities. The Advanced Pricing Agreement provides the company with greater certainty with respect to the mix of its pre-tax income in the various tax jurisdictions in which it operates. Net Income and Cash Net Income For the quarter ended March 31, 2008, reported net income was US$33.7 million and cash net income was US$82.9 million based on 250.6 million diluted Class A common shares outstanding. In calculating cash net income, Warner Chilcott add back the after- tax impact of the amortization of intangible assets and the amortization and write-off of deferred financing costs. These items are tax-effected at the estimated marginal rates attributable to them. In the quarter ended March 31, 2008, the marginal tax rate associated with the amortization of intangible assets was 8.9% and the marginal tax rate for amortization and write-off of deferred financing costs was 16.5%. Liquidity, Balance Sheet and Cash Flows As of March 31, 2008, Warner Chilcott's cash and cash equivalents totaled US$16.2 million and its total debt outstanding was US$1,198.2 million. There were no borrowings outstanding under the revolving portion of its senior secured credit facility. Warner Chilcott used US$2.7 million of cash from operating activities in the quarter ended March 31, 2008, compared with US$58 million of cash provided by operating activities in the prior year quarter, a decrease of US$60.7 million. During the quarter ended March 31, 2008, the company made payments in respect of income taxes totaling US$69.3 million as compared to US$0.2 million in the prior year quarter. The payments made during the quarter ended March 31, 2008 were made primarily based upon: (1) estimates of the amounts payable in connection with the anticipated final settlement of U.S. federal tax audits for prior periods, (2) estimates of U.S. federal income taxes for the 2007 and 2008 tax years and (3) amended income tax returns for the 2006 tax year resulting from the Advanced Pricing Agreement signed with the IRS. 2008 Financial Guidance Update Based on the first quarter results and current outlook for the remainder of 2008, the company is updating its full year 2008 financial guidance. For 2008, the company continues to anticipate revenue to be in the range of US$935 to US$945 million. Total SG&A expenses are now expected to be in the range of US$223 to US$232 million, a decrease of US$5 million from the original guidance given in January 2008. This reflects a decrease in estimated advertising and promotional expenses. In addition, the company now anticipates that its income tax provision in 2008 will be in the range of 5.5% to 6.5% of earnings before taxes and book amortization (EBTA). The guidance includes the company's latest estimate of pretax income by tax jurisdiction, as well as the impact of the company's recently signed Advanced Pricing Agreement with the IRS. Based on the revised guidance, GAAP net income is expected to be in the range of US$129 to US$142 million. Cash net income, which adds back the after tax impact of book amortization of intangible assets and the amortization and write off of deferred financing costs, is expected to be in the range of US$326 to US$339 million. Using 251 million Class A common shares, the company expects cash net income per share to be in the range of US$1.30 to US$1.35 for the full year 2008. About Warnet Chilcott Ltd. Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. -- http://www.warnerchilcott.com/-- is the holding company for a host of pharmaceutical makers. Women's health care products, including hormone therapies (femhrt and Estrace Cream) and contraceptives (Estrostep, Loestrin, and OvCon), are the company's largest segment. Other products include dermatology treatments for acne (Doryx) and psoriasis (Dovonex and Taclonex). United States subsidiary Warner Chilcott Inc. makes prescription drugs for dermatology and women's health; other subsidiaries provide services in data management systems, pharmaceutical development, manufacturing, and chemical development. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 8, 2008, Standard & Poor's Ratings Services revised its outlook on specialty drug manufacturer Warner Chilcott Corp., Warner Chilcott Limited's subsidiary, to positive from stable. The ratings, including B+ corporate credit rating, were affirmed. "The outlook revision on the company reflects its solid operational track record and improving financial profile over the past two years," said S&P's credit analyst Arthur Wong. ============= B O L I V I A ============= COEUR D'ALENE: Gets Environmental Assessment for Kensington Mine ---------------------------------------------------------------- Coeur d'Alene Mines Corporation said that the U.S. Forest Service has evaluated public and agency comments submitted on the Draft Supplemental Information Report for the Kensington Gold Mine in Alaska. Based on the responses and agency input, the Forest Service has announced that an Environmental Assessment (EA) is the preferred level of review, which could allow for a conclusion of permitting for an alternative tailings facility later this year. Construction of the mine and mill is essentially completed except for the tailings facility. "We appreciate the timely review of the Modified Plan of Operations by the Forest Service. The EA process will provide a well-defined and timely permitting pathway for the paste tailings plan," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur. "Coeur is now confident the environmental review process can be completed in 2008, allowing Kensington to be brought into production in 2009." The draft Supplemental Information Report (SIR) prepared by the Forest Service supported the technical soundness of the paste tailings plan. The site selected for constructing the paste tailings facility in the Modified Plan of Operation is the same site as was studied for locating the dry tailings facility earlier, but is smaller and involves less area disturbance. It also requires less energy than the dry tailings facility. A Supplemental Environmental Impact Statement was prepared for a dry tailings facility at the same site in 1997. In a separate press release issued last week, the Southeast Alaska Conservation Council indicated their support for the paste tailings plan as a preferred alternative over the dry tailings facility. Coeur and SEACC collaborated in developing the new plan. The plan, supported by over 900 studies, includes an environmental monitoring component and extensive reclamation requirements. Kensington is a major gold project located about 45 miles northwest of Juneau with an estimated annual production profile of approximately 140,000 ounces of gold. Construction of all surface facilities, except for the tailings facility, is essentially completed. In addition, the almost 3-mile horizontal access tunnel has been constructed. The tunnel connects the Jualin mine site, where the plant and mill are located, and the Kensington ore body. Proven and probable reserves measure approximately 1.4 million ounces of gold. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's Ratings Services B- rating. =========== B R A Z I L =========== ATARI INC: To Seek Review of Nasdaq's Move to Delist Securities --------------------------------------------------------------- Atari Inc. plans to request a review from the Nasdaq Listing and Hearing Review Council, which could alter or dismiss the Nasdaq Listing Qualifications Panel's determination to delist Atari Inc.'s securities from the Nasdaq Global Market and to suspend trading of Atari Inc.'s shares effective May 9, 2008. On May 7, 2008, Atari Inc. received a letter from The Nasdaq Stock Market stating the Panel's action on Atari Inc.'s securities. The request for review will not delay the suspension of trading. Atari Inc. expects to be quoted on the Pink Sheets, an electronic quotation service maintained by Pink Sheets LLC. The Pink Sheets allow continued trading of securities of delisted companies. Atari Inc. expects its common stock to be traded on the Pink Sheets under the symbol "ATAR" or "ATAR.PK". Atari Inc.'s common stock may also be quoted on the OTC Bulletin Board(R), a regulated quotation service for over-the-counter securities, provided one or more market makers apply to quote Atari Inc.'s securities. On Dec. 21, 2007, the Nasdaq Listing Qualifications Department notified Atari Inc. that, pursuant to Nasdaq Marketplace Rule 4450(e)(1), unless the market value of Atari Inc.'s publicly held shares maintained an aggregate market value of US$15 million or more for a minimum of 10 consecutive business days prior to March 20, 2008, Atari Inc.'s securities would be subject to delisting. The value of Atari Inc.'s publicly held shares did not reach that level within the required period, and on March 24, 2008, the Nasdaq Listing notified Atari Inc. that the Nasdaq Staff had determined that Atari Inc.'s securities were subject to delisting unless Atari Inc. requested a hearing before a Nasdaq Listing Qualifications Panel. Atari Inc. requested a hearing on March 27, 2008, which stayed the delisting process until the hearing was held and the hearings panel delivered a decision. The hearing was held on May 1, 2008. The Nasdaq hearings panel thereafter ruled to proceed with the delisting process and, effective May 9, 2008, Atari Inc.'s common stock will no longer trade on The Nasdaq Global Market. Atari Inc. plans to request that the Nasdaq Listing and Hearing Review Council review the Nasdaq hearings panel decision. Atari Inc. relates that its delisting from The Nasdaq Stock Market will not affect the pending merger transaction with its majority shareholder Infogrames Entertainment S.A. Infogrames holds approximately 51.4% of Atari Inc.'s common shares. About Atari Inc. Headquartered in New York, Atari Incorporated, (NASDAQ: ATAR) -- http://www.atari.com/-- publishes and distributes interactive entertainment software in the U.S. The company's 1,000+ published titles distributed by the company include hard-core, genre-defining franchises such as Test Drive(R); and mass-market and children's franchises such Dragon Ball Z(R). Atari Inc. is a majority-owned subsidiary of France- based Infogrames Entertainment SA, an interactive games publisher in Europe. Atari has offices in Brazil, the United Kingdom and Japan. Atari Inc.'s consolidated balance sheet at Dec. 31, 2007, showed US$43.5 million in total assets and US$60.3 million in total liabilities, resulting in a US$16.8 million total stockholders' deficit. Going Concern Doubt New York-based Deloitte & Touche LLP expressed substantial doubt about Atari's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's significant operating losses. As disclosed on March 21, 2008, the forbearance period granted by BlueBay High Yield Investments (Luxembourg) S.A.R.L., the lender under Atari's senior secured credit facility, has expired and Atari is currently in discussions with BlueBay with respect to, among other things, an extension of the forbearance period. ATARI INC: Gets US$20 Million Loan from Infogrames Entertainment ---------------------------------------------------------------- Atari Inc. and Infogrames Entertainment, S.A., entered into a credit agreement, under which IESA committed to provide up to US$20 million in loan availability at an interest rate equal to the applicable LIBOR rate plus 7% per year, subject to the terms and conditions of the IESA Credit Agreement, in connection with both parties' proposed US$11 billion merger agreement reported in the Troubled Company Reporter-Latin America on May 7, 2008. Atari will use borrowings under the New Financing Facility to fund its operational cash requirements during the period between the date of the Merger Agreement and the closing of the merger. The obligations under the New Financing Facility are secured by liens on substantially all of our present and future assets, including accounts receivable, inventory, general intangibles, fixtures, and equipment. Atari has agreed that it will make monthly prepayments on amounts borrowed under the New Financing Facility of its excess cash. Atari will not be able to reborrow any loan amounts paid back under the New Financing Facility other than loan amounts prepaid from excess cash. Also, the Company is required to deliver to IESA a budget, which is subject to approval by IESA in its commercially reasonable discretion, and which shall be supplemented from time to time. A full-text copy of the IESA Credit Agreement is available for free at http://ResearchArchives.com/t/s?2bb6 Intercreditor Agreement Under an intercreditor agreement among IESA, BlueBay High Yield Investments (Luxembourg) S.A.R.L. and Atari, IESA has agreed that for so long as obligations under the Existing Credit Facility are not discharged, it will: (i) not seek to exercise any rights or remedies with respect to the shared collateral for a period of 270 days (provided that, in any event, IESA may not exercise such rights or remedies while BlueBay is exercising its rights and remedies as to the collateral), (ii) not take action to hinder the exercise of remedies under the BlueBay Credit Facility, and (iii) waive any rights as a junior lien creditor to object to the manner in which BlueBay may enforce or collect obligations under the BlueBay Credit Facility. A full-text copy of the Intercreditor Agreement is available for free at http://ResearchArchives.com/t/s?2bb7 Waiver, Consent and Fourth Amendment The company is party to a credit agreement, dated as of Nov. 3, 2006, and amended on Oct. 23, 2007, further amended on Nov. 6, 2007, and further amended on Dec. 4, 2007, with its lenders, relating to an asset-based secured credit facility consisting of a revolving line of credit in an amount up to US$14 million. In order to permit the signing of the merger agreement and the establishment of the new financing facility with IESA, the company entered into a waiver, consent and fourth amendment to the existing credit facility under which, among other things: (i) BlueBay agreed to waive the company's non-compliance with certain representations and covenants under the credit agreement, (ii) BlueBay agreed to consent to the company's entering into the new credit facility with IESA, (iii) BlueBay agreed to consent to the Company's entering into the Merger Agreement with IESA, and (iv) BlueBay and the company agreed to certain amendments to the existing credit facility with respect to the intercreditor agreement referenced above regarding the parties' respective security interests in the company's assets, the company's operational covenants and events of default. A full-text copy of the Waiver, Consent and Fourth Amendment to credit Agreement is available for free at http://ResearchArchives.com/t/s?2bb8 About Atari Inc. Headquartered in New York, Atari Incorporated, (NASDAQ: ATAR) -- http://www.atari.com/-- publishes and distributes interactive entertainment software in the U.S. The company's 1,000+ published titles distributed by the company include hard-core, genre-defining franchises such as Test Drive(R); and mass-market and children's franchises such Dragon Ball Z(R). Atari Inc. is a majority-owned subsidiary of France- based Infogrames Entertainment SA, an interactive games publisher in Europe. Atari has offices in Brazil, the United Kingdom and Japan. Atari Inc.'s consolidated balance sheet at Dec. 31, 2007, showed US$43.5 million in total assets and US$60.3 million in total liabilities, resulting in a US$16.8 million total stockholders' deficit. Going Concern Doubt New York-based Deloitte & Touche LLP expressed substantial doubt about Atari's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's significant operating losses. TCR reported on March 28, 2008, that Atari Inc. received a Staff Determination Letter from the Nasdaq Listing Qualifications Department stating that Atari Inc. has not gained compliance with the requirements of Nasdaq Marketplace Rule 4450(b)(3), and that its securities are therefore subject to delisting from The Nasdaq Global Market. On Dec. 21, 2007, the Nasdaq Listing Qualifications Department notified Atari Inc. that, pursuant to Nasdaq Marketplace Rule 4450(e)(1), unless the market value of Atari Inc.'s publicly held shares, which is calculated by reference to Atari Inc.'s total shares outstanding, less any shares held by officers, directors or beneficial owners of 10% or more, maintains an aggregate market value of US$15 million or more for a minimum of 10 consecutive business days prior to March 20, 2008, Atari Inc.'s securities would be subject to delisting. BANCO BRADESCO: Insurance Unit Sells Shares in Aurea Seguradora --------------------------------------------------------------- Brazilian financial daily Valor Economico reports that Banco Bradesco SA's insurance division Bradesco Seguros has sold its shares in surety bond and domestic credit insurer Aurea Seguradora de Credito e Garantias and export credit insurer Seguradora Brasileira de Credito A Exportacao. Bradesco Seguros' Chief Financial Officer Samuel Monteiro commented to Business News Americas, "We're going to dedicate ourselves to our core business." BNamericas relates that Banco Bradesco sold its 27.5% stake in Aurea Seguradora to international insurance firm Ciac, which assumed control of Aurea Seguradora in February 2008 after buying out insurance services provider Delphos, CEEK Investments, and two other shareholders. French insurer Coface purchased Banco Bradesco's 12% stake in Seguradora Brasileira, along with shares of local insurers Unibanco AIG, SulAmerica, and Minas Brasil, to take control of 75% of the company. Banco do Brasil and national development bank BNDES control 25% of Seguradora Brasileira, BNamericas states. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO DO BRASIL: To Launch Futures Hedge Loans for Agribusiness --------------------------------------------------------------- Banco do Brasil SA's Agribusiness Director Jose Carlos Vaz said the bank will launch futures hedge loans for agribusinesses in July 2008 to lessen risks from changes in commodity prices. Mr. Vaz told Business News Americas that Banco do Brasil would initially offer the new line of credit to soy, coffee, and beef producers as those are the markets with the most liquidity. Banco do Brasil will eventually extend futures hedge loans for agribusinesses as much as it did with loans tied to crop insurance. "Nowadays all soy and maize farming financed by BB [Banco do Brasil] are linked to crop insurance," Mr. Vaz added. BNamericas relates that Brazil's agricultural sector underwent a crisis from 2005 to 2007. These led to severe losses: -- bad weather, -- lower commodity prices, and -- a rising Brazilian Real against the US dollar. BNamericas notes that Banco do Brasil rolled over agricultural loans during the crisis. Mr. Vaz told BNamericas that the recovery in commodity prices would compensate for higher production costs during the 2008-09 harvest. It would also boost revenues for most soy, maize, wheat, and cotton producers, he added. The report says that the high level of debt among agribusinesses in Mato Grosso and Goias and continuing bad weather in Rio Grande do Sul will likely lead Banco do Brasil to roll over more loans in those states in 2008. Banco do Brasil's Credit Director Luiz Gustavo Braz Lage told BNamericas that the bank has rolled over some BRL15.1 billion, or 28.8% of agribusiness loans. Banco do Brasil's agribusiness loans increased 20.8% to BRL56.5 billion in March 2008, compared to March 2007, BNamericas states. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Feb. 29, 2008, Moody's Investors Rating Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. BANCO NACIONAL: Will Sell Companhia Brasiliana Stake, AES Says -------------------------------------------------------------- AES Corp.'s Chief Operating Officer and Executive President Andres Gluski said in a Web cast that the firm expects Banco Nacional de Desenvolvimento Economico e Social SA to sell its 49.99% stake in power holding firm Companhia Brasiliana de Energia SA in the second or third quarter. Market Watch relates that Companhia Brasiliana is a holding company jointly owned by Banco Nacional and AES. Banco Nacional's equity arm BNDES Participacoes aka BNDESPar holds a 49.99% stake and AES holds a 50.01% majority stake in Companhia Brasiliana. BNDESPar plans to sell shares of three companies under Companhia Brasiliana, including Brazil's largest electric power distributor Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, AES Tiete, and AES Elpa. As reported in the Troubled Company Reporter-Latin America on March 20, 2008, AES Corp. is considering the purchase of Banco Nacional's 49.99% stake in Companhia Brasiliana. BNamericas states that AES has the right to the remaining stake under a 1998 deal to privatize Companhia Brasiliana. "We are very interested in exercising our first refusal right, and in order to do so we have local financing in place and interest from local partners as well," Mr. Gluski told BNamericas. Brazilian firms like Cemig and CPFL Energia have also expressed interests in purchasing the 49.99% stake, BNamericas states. About AES Corp. The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a power company with operations in South America, Europe, Africa, Asia and the Caribbean. The Company generates 44,000 megawatts of electricity through 124 power facilities, and delivers electricity through 15 distribution companies. AES has been in Eastern Europe for over ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. The company has Latin America operations in Argentina, Brazil, Chile, Dominican Republic, El Salvador and Panama. AES's business group in Asia & Middle East is comprised of electric utilities and generation plants in China, India, Kazakhstan, Oman, Qatar, Pakistan and Sri Lanka. Fuels include coal, diesel, hydro, gas and oil. AES has been in the region since 1994, when it acquired the Cili generation plant in China. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BANCO PINE: Net Profit Increased to BRL41.2MM in First Quarter -------------------------------------------------------------- Banco Pine SA's net profit increased 92.7% to BRL41.2 million in the first quarter 2008, compared to the first quarter 2007, Business News Americas reports. BNamericas relates that Banco Pine's operating income grew 55.8% to BRL60.1 million in this year's first quarter, from last year's first quarter. The bank's return on equity declined to 22.0% from 27.5%. Its shareholders' equity increased 15.8% to BRL815 million. According to BNamericas, higher lending in the first quarter 2008 allowed Banco Pine to boost net interest income by 66.8% to BRL148 million, compared to the same period last year. Its service fee income rose 170% to BRL5.22 million. BNamericas notes that Banco Pine's non-performing loan ratio of loans overdue by over 15 days was 0.90% as of March 2008, compared to 0.80% in March 2007. Banco Pine's assets rose 81.2% to BRL5.91 billion in the first quarter 2008, compared to the first quarter 2007. Banco Pine SA's Chief Executive Officer Noberto Nogueira Pinheiro Junior told journalists that the bank will increase total lending by 40% in 2008, compared to 2007. Banco Pine's loans to businesses will increase over 50% in 2008, from 2007, and loans to individuals below 35%, the reporters say, citing Mr. Pinheiro Junior. BNamericas relates that Emilio Carazzai, former Banco Pine chief executive officer, said in January 2008 during the presentation of the year-end results for 2007 that the bank wanted to increase lending at least 60% this year. Mr. Carazzai is now a board member at the bank. BNamericas notes that Banco Pine increased its loan book by 98.2% to BRL4.64 billion at the end of the first quarter in 2008, compared to the first quarter 2007. The bank's commercial loans increased 122% to BRL3.07 billion in the first quarter 2008, from the first quarter 2007. Its loans to mid-sized companies rose 133% to BRL2.33 billion and loans to large companies grew 92.1% to BRL737 million. Corporate loans represented 66% of Banco Pine's portfolio in the first quarter 2008, compared to 59% in the same period last year. Mid-sized companies with yearly revenues above BRL30 million accounted for 50% of borrowers. Banco Pine's loans to individuals, entirely payroll and retirement loans, increased 64.4% to BRL1.57 billion. Mr. Pinheiro Junior told BNamericas that Banco Pine's new loans declined 16% to BRL253 million in the first quarter 2008, compared to the first quarter 2007. The decrease is due to new regulations on loans to pensioners in federal social security system Instituto Nacional de la Seguridad Social, which limit monthly repayments to 20% of monthly benefits. INSS pensioners accounted for 16% of new payroll loans in the first quarter 2008, compared to 38% in the same period in 2007, with the remainder coming from city, state, and military workers, Mr. Pinheiro Junior added. Banco Pine will launch a credit card for INSS pensioners in the second quarter 2008, according to BNamericas. The report says that Banco Pine increased financing by 72.8% to BRL3.83 billion in March 2008, compared to March 2007. Deposits rose 104% to BRL2.10 billion. Banco Pine's trade finance increased 119% to BRL211 million. Funds from securities grew 43.5% to BRL311 million. "Funding costs went up but we were well in line with the rest of the financial sector," Mr. Pinheiro told BNamericas. Headquartered in Sao Paulo, Banco Pine SA was established in 1997 by the brothers Nelson and Noberto Pinheiro after the sale in 1996 of their participation in another family institution. A comprehensive corporate and operational restructuring was implemented and in the first half of 2005 Noberto Pinheiro became the bank's majority shareholder. In April 2007, Banco Pine went public by placing non-voting preferred shares at the Bovespa Level 1 on the New Brazilian Stock Market. These shares enjoy a tag-along privilege, giving minority shareholders 100% of the value of the block of controlling shares in the event of the sale of the institution. * * * As reported in the Troubled Company Reporter-Latin America on April 18, 2008, Fitch Ratings affirmed Banco Pine S.A.'s 'B+' long-term foreign and local currency issuer default rating. It also affirmed the bank's 'B' short-term foreign and local currency issuer default rating. Fitch said the outlook remaines positive. CENTRAIS ELETRICAS: Inks US$430MM Loan Pact for Candiota Unit ------------------------------------------------------------- Centrais Eletricas Brasileiras SA's subsidiary Companhia de Geracao Termica de Energia Eletrica reported that its parent firm has signed a US$430 million loan deal with China Development Bank and France's BNP Paribas for the construction of the 350-megawatt Candiota coal-fired plant's third unit. CGTEE told Business News Americas that the unit will be launched in December 2009. The unit will begin production in January 2010, CGTEE added. BNamericas relates that CGTEE will run the plant, which is in Rio Grande do Sul. "We will deliver the power sold in the auction in January 2010. The construction is going well and with the bank support, we will respect our commitment," CGTEE President Sereno Chaise told BNamericas. Centrais Eletricas Brasileiras SA aka Eletrobras operates in the electric power sector in Brazil. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations arising therefrom. Eletrobras is tasked with the preparation of studies and with drawing up construction projects for hydroelectric generation, transmission lines and substations to supply Brazil. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked to the generation, transmission and distribution of electric power. * * * As reported in the Troubled Company Reporter-Latin America on May 22, 2007, Standard & Poor's Ratings Services raised its long-term foreign currency counterparty credit rating on Centrais Eletricas Brasileiras S.A. aka Eletrobras to 'BB+' from 'BB'. S&P said that outlook is positive. COMPANHIA ENERGETICA: Net Profit Rises to BRL490MM in 1Q 2008 ------------------------------------------------------------- Companhia Energetica de Minas Gerais's net profit increased 20% to BRL490 million in the first quarter 2008, compared to BRL407 million in first quarter 2007. Business News Americas relates that Companhia Energetica's net revenue rose 20% to BRL2.75 billion in the first quarter 2008, from the first quarter 2007. Its operating profit increased 25% to BRL807 million and EBITDA grew 22% to BRL1.08 billion. Companhia Energetica's Chief Financial Officer Luiz Fernando Rolla said in a Web cast, "This is the fourth quarter in a row where we posted EBITDA above BRL1 billion." The increase was due to discipline in investment decisions and a steady improvement in operating efficiency and power trading policies, Mr. Rolla told BNamericas. BNamericas notes that Companhia Energetica's power sales declined to 13.8 terrawatt-hours in the first quarter 2008, compared to 14.2 terrawatt-hours in last year's first quarter. Companhia Energetica's sales decreased mainly due to a mild summer in Rio de Janeiro, where the firm owns the controlling stake in distributor Light Servicos. Companhia Energetica's power sales would have been stable excluding figures from Light Servicos. According to BNamericas, Companhia Energetica invested BRL97 million in this year's first quarter. Of the investment, about BRL60 million went to distribution and some BRL30 million was allocated to generation. BNamericas notes that Companhia Energetica's yearly investment forecast is BRL1.56 billion. Companhia Energetica said, "Low investment figures in the quarter were due to our process of hiring new power projects." "Our investment program will be met, as we will invest the rest of the money in the remainder of the year," Mr. Rolla told BNamericas. Companhia Energetica de Minas Gerais aka Cemig -- http://www.cemig.com.br/-- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * As reported on March 8, 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. COMPANHIA ENERGETICA: Won't Sell Power From Jirau in Advance ------------------------------------------------------------ Companhia Energetica de Minas Gerais's Chief Financial Officer Luiz Fernando Rolla said in a Web cast that the firm won't sell power from the 3.3-gigawatt Jirau hydro to free market customers in advance. Business News Americas relates that Brazilian power regulator Aneel will start the auction for the construction and operation of Jirau on the Madeira river on May 19, 2008. France's Suez SA and its partners planned to sell in advance power from Jirau. Mr. Rolla commented to BNamericas, "Each competing group has its strategy and Suez's strategy is probably to sell a stake of Jirau's installed capacity beforehand. However, our strategy is a little different." Companhia Energetica de Minas Gerais aka Cemig -- http://www.cemig.com.br/-- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * As reported on March 8, 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. DELPHI CORP: March 31 Balance Sheet Upside-Down by US$14 Billion ---------------------------------------------------------------- Delphi Corp. and its debtor-affiliates reported first quarter 2008 financial results ended March 31, 2008. At March 31, 2008, the company's balance sheet showed total assets of US$14.2 billion, and total liabilities of US$28.1 billion, resulting in a US$14.0 billion stockholders' deficit. The company reported revenues of US$5.3 billion, and a net loss of US$589 million. First Quarter Financial Results * Global Revenue: Revenue of US$5.3 billion, down from US$5.7 billion in Q1 2007. * Non-GM Revenue: Non-GM revenue for the quarter was US$3.6 billion, up from US$3.5 billion in Q1 2007, primarily attributable to the favorable impact of foreign currency exchange rates. Excluding the impact of foreign currency exchange rates, non-GM revenue decreased 4%. Non-GM business represented 69 percent of Q1 revenues, compared to year-ago levels of 62 percent, primarily due to decreases in GM North America volume of 18 percent, which includes the impact related to a work stoppage at a Tier 1 supplier to GM, and contractual price reductions. * Cash Flow: Cash flow used in operating activities was US$290 million, as compared to US$414 million used in operating activities for Q1 2007. Cash used in operations was improved in Q1 2008 compared to Q1 2007 due to a net reduction in U.S. employee workforce transition program payments of US$146 million. * Net Loss: Net loss of US$589 million, or US$1.04 per share compared to Q1 2007 net loss of US$533 million, or US$0.95 per share. Included in the Q1 2008 net loss is US$79 million of reorganization expenses for previously capitalized Equity Purchase and Commitment Agreement fees expensed as a result of the EPCA termination. Additionally, Delphi's financial results were further impacted by increased workforce transition program charges of approximately US$42 million. * Liquidity: With the extension and refinancing of the DIP Credit Facility and availability of advances from GM, Delphi believes it will continue to have adequate access to liquidity throughout 2008. As of March 31, 2008, Delphi had liquidity of US$1.8 billion, comprised of cash, cash equivalents and available liquidity under the prior DIP credit facility. Pension Funding Matters Delphi reaffirmed its commitment to funding and freezing at emergence its U.S. Hourly and Salaried Pension Plans. Delphi expects to be able to meet its pension funding strategy through a combination of cash contributions and transfers of certain unfunded pension liabilities to a plan sponsored by GM, without the benefit of the previously issued pension funding waivers. Accordingly, Delphi has not applied to the IRS or PBGC to extend such waivers. "The relatively favorable funded position of the Delphi plans as of the Oct. 1, 2007 valuation date triggered a technical ERISA contribution limit that determines the required emergence contribution for the current plan year," John Sheehan, Delphi vice president and chief restructuring officer, said. "Achieving this limit means we no longer need the waivers to efficiently effect the transfer of certain liabilities to GM," he said. "We appreciate the constructive support of the IRS and PBGC that we have received throughout our Chapter 11 proceedings and look forward to the continued support of these agencies as Delphi seeks to meet its commitment to fund its pension plans at emergence," added Mr. Sheehan. DIP Facility Refinancing and Extension Delphi also disclosed the refinancing and extension of the terms of its Debtor-In-Possession Credit Facility to Dec. 31, 2008. Based on positive DIP lender participation and subject to approval by the U.S. Bankruptcy Court for the Southern District of New York, Delphi will increase the requested capacity of its DIP Credit Facility from the previously announced US$4.1 billion to US$4.35 billion, providing the company with US$250 million in additional liquidity. In addition, Delphi stated that GM has agreed to advance amounts anticipated to be paid to Delphi upon the effectiveness of the GM settlement and restructuring agreements. These actions provide the company with sufficient liquidity to support the ongoing implementation of Delphi's transformation plan. Delphi Corporation, et al. Unaudited Consolidated Balance Sheet As of March 31, 2008 (In Millions) ASSETS Current assets: Cash and cash equivalents US$1,310 Restricted cash 175 Accounts receivable, net: General Motors and affiliates 1,226 Other third parties 2,991 Inventories, net: Productive material 1,341 Finished goods 503 Other current assets 592 Assets held for sale 655 -------- Total current assets 8,793 Long-term assets: Property, net 3,820 Investments in affiliates 387 Goodwill 406 Other 798 -------- Total long-term assets 5,411 -------- Total assets US$14,204 ======== LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities not subject to compromise: Current portion of long-term debt US$4,212 Accounts payable 2,960 Accrued liabilities 2,401 Liabilities held for sale 426 -------- Total current liabilities not subject to compromise 9,999 -------- Long-term liabilities not subject to compromise: Other long-term debt 62 Employee benefit plan obligations and other 475 Other 1,201 Liabilities subject to compromise 16,363 -------- Total liabilities 28,100 -------- Commitments and comtingencies 164 Stockholders' deficit: Total stockholders' deficit (14,060) -------- Total liabilities and stockholders' deficit US$14,204 ======== Delphi Corporation, et al.