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 Thursday, May 15, 2008, Vol. 9, No. 96 Headlines A R G E N T I N A BANCO SANTANDER: Net Profit Increases to ARS179MM in 1st Quarter COLEGIO SAINT JEAN: Trustee Verifies Claims Until May 30 FORD MOTOR: Urges Shareholders to Take No Action on Tender Offer GRAN TIERRA: To Restate Financial Statements in 10-K Form Filing OR MAZAL: Trustee Verifies Proofs of Claim Until July 1 ROSAC SA: Trustee to File Individual Reports in Court on Sept. 3 SOLVING SRL: Proofs of Claim Verification Deadline Is July 10 THOMAS 1151: Proofs of Claim Verification Deadline Is July 8 B E R M U D A INTELSAT LTD: Inks Deal With Romantis to Expand Ku-band Services REFCO INC: Refco Commodity Management Files Liquidation Plan REFCO INC: June 12 Confirmation Hearing on Refco Commodity Plan REFCO INC: RCMI to Assign Partnership Stake to IDS Futures REFCO INC: Credit Suisse et al. Also Want Classified Documents B O L I V I A COEUR D'ALENE: RBC Capital Keeps Sector Perform Rating on Firm B R A Z I L AMBAC FINC'L: May Be Hit by Sinking 2nd Lien RMBS, Moody's Says AMERICA LATINA: Consolidated EBITDAR Up to BRL240.2MM in 1Q 2008 BANCO NACIONAL: Reduces Production Development Policy Financing BANCO PANAMERICANO: Net Profit Rises to BRL70.3MM in 1st Quarter CAMARGO CORREA: Registers to Bid for Jirau Hydro Plant CENTRAIS ELECTRICAS: S&P Ups B- Corporate Credit Rating to B CIA. ENERGETICA: Net Profit Increases to BRL56.5MM in 1st Qtr. GENERAL MOTORS: May Use US$7 Bln Undrawn Loans Upon Biz Downturn GOL LINHAS: VRG Inks Interline Agreement With Copa Airlines TELEMIG CELULAR: Vivo Buys Firm's Preferred Shares for US$315MM USINAS SIDERURGICAS: Says U.S. Economic Lag Won't Affect Brazil C A Y M A N I S L A N D S ANN FUNDING: Will Hold Final Shareholders Meeting on May 16 ARSAGO QUANT: Deadline for Proofs of Claim Filing Is May 16 ARSAGO QUANT: Will Hold Final Shareholders Meeting on May 16 ARSAGO GLOBAL: Proofs of Claim Filing Deadline Is Until May 16 ARSAGO GLOBAL: To Hold Final Shareholders Meeting on May 16 CONSOLIDATED FINANCIAL: Final Shareholders Meeting Is on May 16 EASTERN PROMISE: To Hold Final Shareholders Meeting on May 16 GLOBAL ALPHA: Will Hold Final Shareholders Meeting on May 16 HONG KONG PROPERTY: To Hold Final Shareholders Meeting on May 16 MUTSUKI GLOBAL: Will Hold Final Shareholders Meeting on May 16 MACQUARIE INTERNATIONAL: Final Shareholders Meeting is on May 16 MERLIN BIOMED: Will Hold Final Shareholders Meeting on May 16 MERLIN BIOMED OFFSHORE: Final Shareholders Meeting Is on May 16 MERLIN BIOMED ROUND: Final Shareholders Meeting Is on May 16 REX FUNDING: Proofs of Claim Filing Deadline Is Until May 16 SAGAMINO GLOBAL: Sets Final Shareholders Meeting for May 16 WESKAT LTD: Will Hold Final Shareholders Meeting on May 16 C H I L E CODELCO: Supreme Court Ruling May Give Rise to Another Strike LOUISIANA-PACIFIC: Masisa Sells 75% of Brazilian Plant To Unit C O L O M B I A BRIGHTPOINT INC: Okays Proposals During Shareholders' Meeting CHIQUITA BRANDS: Paid Terrorists to Save Workers, CEO Says ECOPETROL SA: Expects to Finish ADR Listing on NYSE in 4th Qtr. C O S T A R I C A SIRVA INC: Emerges from Chapter 11 Protection in New York SIRVA INC: Will No Longer Proceed with Public Offering Plan SIRVA INC: 360networks Panel May Get $1.5MM in Preference Action D O M I N I C A N R E P U B L I C PRC LLC: Committee Can Employ Halperin Battaglia as Counsel E C U A D O R PETROECUADOR: To Build Refinery in Petroleos de Venezuela JV J A M A I C A CASH PLUS: Keven Bandoian Presents Firm's Status Report NATIONAL COMMERCIAL: In Danger of Prosecution Because of Olint SUGAR COMPANY: Unions Want to Hold Meeting for Divestment Update M E X I C O BLUE WATER: Files Chapter 11 Plan, Mulls Sale of Business BLUE WATER: Classification and Treatment of Claims Under Plan BLUE WATER: Court Sets Plan Confirmation Hearing on June 18 BLUE WATER: Clarifies Objections to Proposed Incentive Payments CABLEMAS SA: COFECO Approves Televisa Long-Term Notes Conversion CLEAR CHANNEL: Buyer & Banks Settle Funding Dispute, Report Says FRONTIER AIRLINES: Allowed to Hire Epiq Bankr. as Claims Agent FRONTIER AIRLINES: Can Hire Faegre & Benson as Special Counsel HIGH ARCTIC: Gets May 30 Extension to Meet Loan Covenants N I C A R A G U A INFINITY ENERGY: Has Until May 31 to Cure Loan Pact Defaults P A N A M A CHIQUITA BRANDS: To Sell Atlanta AG to UNIVEG for US$85 Million P A R A G U A Y * PARAGUAY: Moody's B3 Currency Rtngs Constrained By Low Economy P U E R T O R I C O COLEGIO CORAZON: Case Summary & Nine Largest Unsecured Creditors DORAL FINANCIAL: Incurs US$2.3 Million in Quarter Ended March 31 HOME INTERIORS: Taps Hunton & Williams as Lead Counsel HOME INTERIORS: Wants to Hire Rochelle Hutcheson as Counsel HOME INTERIORS: Wants to Hire Boulder as Biz Consultant & CRO V E N E Z U E L A PETROLEOS DE VENEZUELA: Signs 5 Energy Deals With Galp Entergia PETROLEOS DE VENEZUELA: Forms Joint Venture With Petroecuador PETROLEOS DE VENEZUELA: JV With CNPC to Boost Output in 3 Mos. - - - - - ================= A R G E N T I N A ================= BANCO SANTANDER: Net Profit Increases to ARS179MM in 1st Quarter ---------------------------------------------------------------- Banco Santander Rio S.A.'s net profit increased 87% to ARS179 million in the first quarter 2008, compared to the first quarter 2007. Business News Americas relates that Banco Santander's first quarter 2008 result was the first in a long time not to be negatively affected by legal injunctions, know as amparos in Brazil. Banco Santander finished amortizing those in December 2007. BNamericas notes that Banco Santander's operating profit rose 20% to ARS271 million in this year's first quarter, compared to last year's first quarter. Banco Santander increased lending and other financing to the private sector by 37.8% to ARS12.1 billion in the 12 months ended March 2008, from the previous period. Its non-performing loan ratio was 0.88%. Financing for small and medium-sized enterprises increased 49.8%. Consumer, auto, and mortgage lending to individuals rose a combined 39.4%. According to BNamericas, demand and time deposits totaled ARS9.54 billion and ARS6.07 billion respectively in March 2008, from ARS6.59 billion and ARS6.41 billion in March 2007. Banco Santander had ARS22.6 billion in assets and ARS1.96 billion in equity, BNamericas states. Banco Santander Rio S.A. is headquartered in Buenos Aires, Argentina. The bank had ARS$16.2 billion (US$5.3 billion) in total assets and ARS$12.6 billion (US$4.1 billion) in deposits as of December 2006. * * * On Nov. 13, 2007, Moody's said that Banco Santander Rio S.A.'s long term foreign currency deposit rating of Caa1 is limited by the country ceiling for foreign currency deposits. Banco Santander Rio's B2 foreign currency debt program is based on the bank's Ba1 global local currency deposit rating. COLEGIO SAINT JEAN: Trustee Verifies Claims Until May 30 -------------------------------------------------------- Estudio Tacsir, Goldemberg, Eidelman y Asociados -- the court- appointed trustee for Colegio Saint Jean Asociacion Civil's reorganization proceeding -- will be verifying creditors' proofs of claim until May 30, 2008. Estudio Tacsir 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. 37, 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 Colegio Saint Jean 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 Colegio Saint Jean'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 March 17, 2009. The debtor can be reached at: Colegio Saint Jean Asociacion Civil Monroe 5352 Buenos Aires, Argentina The trustee can be reached at: Estudio Tacsir, Goldemberg, Eidelman y Asociados Corrientes 524 Buenos Aires, Argentina FORD MOTOR: Urges Shareholders to Take No Action on Tender Offer ---------------------------------------------------------------- The Board of Directors of Ford Motor Company recommended that its stockholders take no action at this time in response to the announcement by Tracinda Corporation that it has commenced a tender offer to acquire up to 20 million shares of Ford's common stock at a price of US$8.50 per share. As reported in the Troubled Company Reporter on April 29, 2008, Tracinda disclosed that it will make a cash tender offer for up to 20 million shares of common stock of Ford at a price of US$8.50 per share. The offer price represents a 13.3% premium over Ford's closing stock price of US$7.50 on April 25, 2008 and a 38.7% premium over Ford's closing stock price on April 2, 2008, the day upon which Tracinda began accumulating shares in the company. The shares to be purchased pursuant to the offer represent approximately 1% of the outstanding shares of Ford common stock. Tracinda Corporation, of which Kirk Kerkorian is the sole shareholder, currently owns 100 million shares of Ford common stock, which represents approximately 4.7% of the outstanding shares. Tracinda's average cost for such shares is approximately US$6.91 per share. Upon completion of the offer, Tracinda would beneficially own 120 million shares of Ford common stock, or approximately 5.6% of the outstanding shares. The company's Board said it will review and consider Tracinda's offer and will advise stockholders of the Board's position regarding the offer by May 22, 2008, as required under applicable securities law. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on March 31, 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) for US$2.3 billion (before US$600 million of pension contributions by Ford for Jaguar-Land Rover). As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. In November 2007, Moody's Investors Service affirmed the long- term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the United Auto Workers. GRAN TIERRA: To Restate Financial Statements in 10-K Form Filing ---------------------------------------------------------------- Gran Tierra Energy Inc. will restate the company's financial statements for previously reported quarters ended March 31, 2007, June 30, 2007, and Sept. 30, 2007, and the years ended Dec. 31, 2007 and 2006. The company discovered a misclassification of accounts payable and accrued liabilities resulting in a misstatement of cash flows from operating activities, with a corresponding offset to cash flows from investing activities. The restatement will have no effect on the previously reported net change in cash and cash equivalents and no impact on previously reported consolidated balance sheets or consolidated statements of operations and accumulated deficit. The company will file an amendment to its annual report on Form 10-K for the year ended Dec. 31, 2007, to reflect the restatement. In the course of preparing its interim financial statements for its quarterly report on Form 10-Q to be filed with the Securities and Exchange Commission for the quarter ended March 31, 2008, the company discovered the misclassification in its 2007 interim financial statements for the previously reported quarters ended March 31, 2007, June 30, 2007, and Sept. 30, 2007, and annual financial statements for the years ended Dec. 31, 2007 and 2006. The company is in the process of completing its assessment of this matter. As a result, management and the audit committee have concluded that the company's previously-filed financial statements for the corresponding periods should not be relied upon. The company plans to file its Form 10-K/A containing its restated 2007 and 2006 financial statements, and reflecting the corrections to the financial statements for the interim periods in 2007, on May 12, 2008. About Gran Tierra Energy Headquartered in Calgary, Alberta, Canada, Gran Tierra Energy Inc. (OTC BB: GTRE.OB) -- http://www.grantierra.com/-- is an international oil and gas exploration and production company, incorporated and traded in the United States and operating in South America. The company holds interests in producing and prospective properties in Argentina, Colombia and Peru. At Dec. 31, 2007, the company's balance sheet showed total assets of US$112.79 million, total long term liabilities of US$36 million and total shareholders' equity of US$76.79 million. Successive Net Losses As reported in the Troubled Company Reporter on Jan. 4, 2008, the company disclosed in the regulatory filing that it "has a history of net losses." The company said it expects to incur substantial expenditures to further its capital investment programs and the company's existing cash balance and cash flow from operating activities may not be sufficient to satisfy its current obligations and meet its capital investment commitments. According to the company, its ability to continue as a going concern is dependent upon obtaining the necessary financing to acquire, explore and develop oil and natural gas interests and generate profitable operations from its oil and natural gas interests in the future. OR MAZAL: Trustee Verifies Proofs of Claim Until July 1 ------------------------------------------------------- Cesar Stock, the court-appointed trustee for Or Mazal S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until July 1, 2008. Mr. Stock will present the validated claims in court as individual reports on Aug. 27, 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 Or Mazal and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Or Mazal's accounting and banking records will be submitted in court on Oct. 8, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on May 29, 2009. The debtor can be reached at: Or Mazal S.A. Catamarca 221 Buenos Aires, Argentina The trustee can be reached at: Cesar Stock Corrientes 4149 Buenos Aires, Argentina ROSAC SA: Trustee to File Individual Reports in Court on Sept. 3 ---------------------------------------------------------------- Carlos Grela, the court-appointed trustee for Rosac S.A. Servicios Empresarios' reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Sept. 3, 2008. Mr. Grela will be verifying creditors' proofs of claim until July 8, 2008. He will submit to court a general report containing an audit of Rosac's accounting and banking records on Oct. 15, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on April 21, 2009. The debtor can be reached at: Rosac SA Presidente Roque S. Pena 726 Buenos Aires, Argentina The trustee can be reached at: Carlos Grela Nunez 2395 Buenos Aires, Argentina SOLVING SRL: Proofs of Claim Verification Deadline Is July 10 ------------------------------------------------------------- The court-appointed trustee for Solving S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until July 10, 2008. The trustee will present the validated claims in court as individual reports on Aug. 16, 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 Solving 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 Solving's accounting and banking records will be submitted in court on Oct. 10, 2008. The trustee is also in charge of administering Solving's assets under court supervision and will take part in their disposal to the extent established by law. THOMAS 1151: Proofs of Claim Verification Deadline Is July 8 ------------------------------------------------------------ Norberto Bonesi, the court-appointed trustee for Thomas 1151 SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 8, 2008. Mr. Bonesi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 23, 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 Thomas 1151 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 Thomas 1151's accounting and banking records will be submitted in court. Infobae didn't state the submission dates for the reports. The trustee is also in charge of administering Thomas 1151's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Thomas 1151 SA Alvarez Thomas 1151 Buenos Aires, Argentina The trustee can be reached at: Norberto Bonesi J.B. Justo 5096 Buenos Aires, Argentina ============= B E R M U D A ============= INTELSAT LTD: Inks Deal With Romantis to Expand Ku-band Services ---------------------------------------------------------------- Romantis GmbH, a European satellite capacity trader providing satellite transmission services for European, African and Asian markets, signed another multi-year, multi-transponder contract for capacity on Intelsat Ltd.'s system to expand its service offering into the CIS, EU and the Middle East. Under the agreement, Romantis will receive Ku-band transponder services on the Intelsat 15 satellite which will be located at 85 degrees East once launched in 2009. Through its contract on Intelsat 15, Romantis expects to set up a universal satellite multimedia platform that will support a variety of applications, including DTH broadcasting, IPTV service platforms, DVB-S2 SD and HD distribution networks, as well as broadband services. "The Intelsat 15 Ku-band coverage is perfectly designed to serve the regions we operate in with a single uniform high-power beam," said Kai Lauterujng, Managing Director of Romantis. "Through this agreement we have secured capacity that will enable us to substantially expand our services and respond to our customers� strong demand for premium broadcast and broadband services." "Intelsat provides content service providers an infrastructure allowing them to go into immediate operations and quickly expand," said Jean Philippe Gillet, Intelsat�s Regional Vice President, Europe & Middle East. "Our Intelsat 15 satellite will be a vital spacecraft within our fleet, providing content providers video and data services for the Middle East, Indian Ocean Regions and Russia." About Romantis Romantis specializes in providing full-time C- and Ku-band satellite transmission services for European, African, the Middle East and Asian markets. Featuring the most advanced satellite technology for audio, video and data transmission technologies, Romantis offers various services ranging from professional consultancy in network design up to complete service provision including space and ground segments provision, installation and maintenance of satellite networks. Being a European company and a universal satellite capacity trader, Romantis is well positioned to have well established relations with the major North American, European and Russian satellite operators. About Intelsat Ltd. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. Intelsat, Ltd.'s December 31 balance sheet showed total assets of US$12,053,332, total liabilities of US$12,775,716 and stockholders' deficit of US$722,384. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. REFCO INC: Refco Commodity Management Files Liquidation Plan ------------------------------------------------------------ On May 9, 2008, Refco Commodity Management, Inc., delivered to the U.S. Bankruptcy Court for the Southern District of New York its Chapter 11 Plan of Liquidation. The RCMI Plan does not require the solicitation of votes from claimants, as the claims against it have been resolved pursuant to the terms of the already effective Chapter 11 Plan of Refco, Inc. RCMI is a wholly-owned subsidiary of Westminster-Refco Management, LLC, an indirect, wholly-owned subsidiary of Refco, Inc. RCMI, formerly known as CIS Investments, Inc., currently has no ongoing business operations and no employees, and does not lease or own real property. Its assets include cash on hand as of the RCMI Petition Date on October 16, 2006, and US$4,300,000 cash received from the liquidation of its assets. It owns no other property and holds no other interests. RCMI was a commodity pool operator, registered with the the Commodity Futures Trading Commission under the Commodity Exchange Act, and was a member of the National Futures Association. RCMI's primary businesses as of the Petition Date were serving as the managing owner of the JWH Global Trust. It was also co- general partner of two public commodity pools, IDS Managed Futures, L.P. and IDS Managed Futures II, L.P., along with IDS Futures Corporation. After the Petition Date, RCMI reviewed and analyzed, among other things, (a) RCMI's equitable and financial interests in the Trust and the IDS Pools, (b) RCMI's rights, duties and obligations in connection with the Trust and the IDS Pools, (c) the potential outcomes in the Debtors' Chapter 11 cases, and (d) the best interests of the unit holders, the limited partners, the Trust, and the IDS Pools. RCMI determined it is its best interests to sell its interests in the Trust and the IDS Pools, and assign its duties and obligations as Managing Owner and as co-general partner, to a qualified third party. On October 12, 2006, RCMI, R.J. O'Brien & Associates and R.J. O'Brien Fund Management, Inc. entered into an Asset Purchase Agreement providing for the purchase of RCMI's interest as Managing Owner of the Trust. RCMI received approximately US$2,520,964 in cash at the closing of the sale. After the sale was consummated, RCMI redeemed its remaining Units in the Trust and received approximately US$416,510 as a result of the redemption. RCMI continues to hold interests in the IDS Pools, and currently holds 358.70 units in IDS I and 54.35 units in IDS II. The IDS Pools maintain a cash reserve with respect to the general partner units and are holding approximately US$109,726 and US$27,674 in cash with respect to RCMI's units IDS I and IDS II. RCMI previously acknowledged that it owed IDS I approximately us$19,137 with respect to a redemption error made by RCMI in its capacity as general partner of IDS I. RCMI Plan Provisions On the effective date of RCMI's Plan, (a) RCMI will be merged with and into Refco Inc., with Refco Inc. as the surviving entity, and (b) RCMI's Chapter 11 Case will be closed. RCMI's Plan is based in large part on specific provisions set forth in the Modified Joint Chapter 11 Plan of Refco Inc. and Certain of its Direct and Indirect Subsidiaries, confirmed by the Court on December 15, 2006. There are four creditors that asserted five claims against RCMI. One creditor holds an Allowed Impaired Claim under the Refco Plan against RCM and has already received a Distribution under the Refco Plan with respect to the claim, and another creditor has settled and waived its claims in the Prior Debtors' and RCMI's Chapter 11 cases. The other two creditors do not have direct claims against RCMI, but have asserted: (a) direct claims against the Prior Debtors, which claims are subject to pending claims objections filed by the Prior Debtors, and (b) indirect claims against RCMI to the extent that RCMI could be jointly and severally liable for the direct claims asserted against the Prior Debtors. If any direct claim is ultimately allowed, however, the creditor holding that claim would receive a Distribution under the Refco Plan with respect to an Impaired Claim under the Refco Plan against the Prior Debtors. Accordingly, pursuant to the Refco Plan, each of the claims currently asserted against RCMI -- excluding the settled and waived claims -- either already is or would be deemed to be subordinated to all other claims against or equity interests in RCMI on the Contributing Non-Debtor Affiliate Trigger Date for RCMI. Moreover, all currently asserted claims could be deemed to be released pursuant to the Refco Plan on the Contributing Non-Debtor Affiliate Trigger Date for RCMI if the RCM Trustee, with the consent of the Plan Committee, deems any subordination to be a release. The RCM Plan Administrator has advised RCMI that, if the Bankruptcy Court approves the Disclosure Statement, the Plan Committee has previously consented and the RCM Plan Administrator would designate the Contributing Non-Debtor Affiliate Trigger Date for RCMI to be the Effective Date of the Plan and, to the extent necessary to ensure that RCMI winds up its affairs and distribute its remaining property to Reorganized Refco, deem the subordination of the claims currently asserted against RCMI to be a release of the claims. Classification and Treatment of Claims Robert I. Shapiro, RCMI's president, sole officer and director, relates that the RCMI Plan provides for the classification and treatment of claims and interests against RCMI: Estimated Estimated Class Amount Treatment Recovery ----- --------- --------- --------- Administrative Claims US$0 Unimpaired 100% Priority Tax Claims US$0 Unimpaired 100% Class 1 US$0 Unimpaired 100% Non-Tax Priority Claims Class 2 US$0 Unimpaired 100% Secured Claims Class 3 US$0 Unimpaired 100% General Unsecured Claims Class 4 US$4,300,000 Unimpaired 100% Old Equity Interests Class 5 US$0 Unimpaired 0% Subordinated Claims On the Effective Date, each Holder of an Allowed Class 4 Old Equity Interest will receive its Pro Rata share of the Remaining Equity Distribution, in final satisfaction of that interest. Holders of Class 5 Subordinated Claim will not be entitled to any property or interest on account of their claims. On the Effective Date, all Subordinated Claims will be expunged. RCMI believes that there are no Allowed Administrative Claims, Allowed Priority Tax Claims, Allowed Non-Tax Priority Claims, Allowed Secured Claims, and Allowed General Unsecured Claims in their Chapter 11 cases. However, on the Effective Date, each holder of those claims, if any, will receive cash equal to the unpaid portion of their claims. No Solicitation and Presumed Acceptances RCMI is not soliciting acceptances of the Plan from any Holders of Claims or Interests because there are no Impaired classes of Claims or Interests in the Plan. All Classes of Claims and Interests are all Unimpaired by the Plan and, pursuant to Section 1126(f) of the Bankruptcy Code, are presumed to have accepted the Plan. Specifically, although the Holders of Class 5 Subordinated Claims will not receive any Distribution under the Plan, their treatment is dictated by the Refco Plan. Accordingly, the Holders of Class 5 Subordinated Claims are not Impaired by the Plan, and no solicitation of votes to accept or reject the Plan is necessary under the circumstances. Motion to Approve Disclosure Statement RCMI asks the Court to consider adequacy of the Disclosure Statement accompanying the Plan. Mr. Shapiro submits that the Disclosure Statement is extensive and comprehensive. It contains descriptions and summaries of: (a) the Plan, (b) key events preceding RCMI's Chapter 11 cases, (c) claims asserted against RCMI's estate, (d) risk factors affecting the Plan, (e) a liquidation analysis regarding returns under Chapter 7, (f) financial information relevant to the Plan, and (g) federal tax law consequences of the Plan. In addition, the Disclosure Statement was the subject of review and comment by counsel for the Refco Plan Administrator and the Plan Administrator for Refco Capital Markets, Ltd., and was revised in response to their comments. Accordingly, RCMI submits that the Disclosure Statement contains adequate information within the meaning of Section 1125, and should be approved. A full-text copy of RCMI's Plan of Liquidation is available at no charge at: http://bankrupt.com/misc/RCMILiquidationPlan.pdf A full-text copy of the Disclosure Statement to RCMI's Plan of Liquidation is available at no charge at: http://bankrupt.com/misc/RCMILiquidationPlanDS.pdf About Refco Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company has operations in Bermuda. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. (Refco Bankruptcy News, Issue No. 81, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: June 12 Confirmation Hearing on Refco Commodity Plan --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will hold a combined hearing on June 12, 2008, at 10:00 a.m., to consider the approval of the disclosure statement and the confirmation of the Chapter 11 Plan of Liquidation of Refco Commodity Management, Inc. Objections to the approval of the Disclosure Statement and the confirmation of the Plan, are due on June 7, 2008, at 4:00 p.m. Refco Commodity Management filed a Plan of Liquidation on May 9, 2008. The RCMI Plan does not require the solicitation of votes from claimants, as the claims against it have been resolved pursuant to the terms of the already effective Chapter 11 Plan of Refco, Inc. RCMI is a wholly-owned subsidiary of Westminster-Refco Management, LLC, an indirect, wholly-owned subsidiary of Refco, Inc. RCMI, formerly known as CIS Investments, Inc., currently has no ongoing business operations and no employees, and does not lease or own real property. Its assets include cash on hand as of the RCMI Petition Date on October 16, 2006, and US$4,300,000 cash received from the liquidation of its assets. It owns no other property and holds no other interests. RCMI was a commodity pool operator, registered with the the Commodity Futures Trading Commission under the Commodity Exchange Act, and was a member of the National Futures Association. RCMI's primary businesses as of the Petition Date were serving as the managing owner of the JWH Global Trust. It was also co-general partner of two public commodity pools, IDS Managed Futures, L.P. and IDS Managed Futures II, L.P., along with IDS Futures Corporation. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company has operations in Bermuda. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. (Refco Bankruptcy News, Issue No. 81, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: RCMI to Assign Partnership Stake to IDS Futures ---------------------------------------------------------- The Chapter 11 Plan of Liquidation of Refco Commodity Management, Inc., incorporates a settlement agreement dated April 25, 2008, among IDS Managed Futures, L.P., IDS Managed Futures II, L.P., IDS Futures Corporation, Ameriprise Financial Services, Inc., and Refco Commodity Management, Inc. IDS Managed Futures, L.P. and IDS Managed Futures II, L.P., are Delaware limited partnerships formed to trade a wide range of U.S. and international futures and forward contracts and related options pursuant to the trading instructions of professional trading advisors. IDS Futures Corporation and RCMI acted as co-general partners of the IDS Partnerships through December 31, 2006, pursuant to certain partnership agreements. In their capacities as co- general partners, IDS Futures and RCMI managed and controlled all aspects of the business of the Partnerships under and pursuant to the terms of the Act and the Partnership Agreements. As a result of the Refco, Inc., et al., bankruptcy cases, on June 1, 2006, Gary L. Franzen, as trustee of the Gary L. Franzen Declaration of Trust, individually and on behalf of a putative class that included the Partnerships' limited partners, filed a complaint against IDS Futures and RCMI, as general partners, in the United States District Court for the Northern District of Illinois, Eastern Division, as amended on September 15, 2006. RCMI's bankruptcy petition on October 16, 2006 constituted a notice of withdrawal as a general partner of the Partnerships. As part of its bankruptcy case, RCMI sold and assigned substantially all of its assets to R.J. O'Brien Fund Management, Inc. The Partnership Agreements do not prescribe a process for winding down the activities of the Partnerships. Accordingly, on Sept. 27, 2006, IDS Futures filed applications for dissolution of the Partnerships, as amended and supplemented on Jan. 26, 2007, in the Court of Chancery of the State of Delaware in and for New Castle County. Pursuant to the Applications, IDS Futures sought an order and direction from the Court of Chancery to dissolve the Partnerships and to distribute the Partnerships' remaining assets for the benefit of its partners. Prior to the hearing on the Applications, and as an accommodation to its clients and to resolve the Franzen Litigation, Ameriprise Financial Services, Inc., the Partnerships' selling agent and introducing broker and an affiliate of IDS Futures, offered to purchase the remaining interests of limited partners in the Partnerships. Notwithstanding the fact that the Partnerships will not recover full payment from the Refco Debtors, the net asset value paid by Ameriprise Financial pursuant to the Ameriprise Purchase Offer assumed a 100% recovery from the Refco Debtors. The Court of Chancery approved the Applications on Feb. 20, 2007. Pursuant to the Orders, the Court of Chancery approved the Ameriprise Purchase Offer, and authorized and instructed IDS Futures to continue to act as sole general partner for the purpose of winding down the Partnerships' affairs. The Orders deem the Partnerships dissolved, effective as of Dec. 31, 2006. In March 2007, Ameriprise Financial began purchasing the remaining interests of limited partners pursuant to the Ameriprise Purchase Offer. A significant portion of the limited partners participated in the Ameriprise Purchase Offer, effectively resolving the Franzen Litigation and any alleged claims the Partnerships or their limited partners may have had as a result of the Refco Bankruptcy Cases, and settling the action as against IDS Futures. On November 13, 2007, IDS Futures filed final applications in the Court of Chancery. Pursuant to the Final Applications, IDS Futures sought an order and direction from the Court of Chancery to cancel the Partnerships' certificates of limited partnership and for certain other relief to complete the wind up process. The Court of Chancery approved the Final Applications on Dec. 4, 2007, under which Ameriprise Financial was authorized to pay the remaining, non-participating limited partners the purchase price under the Ameriprise Purchase Offer. Absent payment by Ameriprise Financial, the remaining limited partners would have received their pro rata share of the Partnerships' remaining net assets, which recovery would have been less than they received from Ameriprise Financial. RCMI continues to hold an interest in each of the Partnerships. These interests, which were not purchased by Ameriprise Financial pursuant to the Ameriprise Purchase Offer, are currently being held in a reserve account. Pursuant to the Final Orders, the Chancery Court authorized IDS Futures to withhold RCMI's interest in the General Partner Reserve until the Partnerships' and IDS Futures' claims against RCMI were resolved. The U.S. Bankruptcy Court for the Southern District of New York established May 11, 2007, as the deadline for creditors to file proofs of claim in RCMI's bankruptcy case. The deadline was extended by agreement of the Parties pending settlement discussions. None of the Partnerships, IDS Futures or Ameriprise Financial have filed proofs of claim against RCMI, but such parties assert that they would have filed proofs of claims against RCMI absent the settlement of claims set forth in this Agreement. The claims would have included, without limitation, claims for reimbursement as a result of a redemption error made by RCMI and for contribution in connection with the Ameriprise Purchase Offer. In recognition of the time and expense associated with resolving any claims or interests by and among themselves, the Parties have reached an agreement to settle their mutual claims or interests. Pursuant to the Settlement Agreement, the parties agree that: 1. In full and final settlement of any claims of the Partnerships, IDS Futures or Ameriprise Financial against RCMI, RCMI agrees to assign to IDS Futures all of its right, title and interest in and to the Partnerships, including, without limitation, those interests of RCMI currently held in the General Partner Reserve. 2. The Agreement will be subject to Bankruptcy Court approval and will not be effective until the date upon which the Bankruptcy Court enters an order approving the Agreement. 3. Within 30 days of the Agreement Effective Date, IDS Futures will pay US$10,000 from the General Partner Reserve to RCMI, which payment will be in full and final satisfaction of RCMI's interest in the General Partner Reserve and its investment in the Partnerships. 4. Effective as of the Agreement Effective Date, (a) IDS Futures, Ameriprise Financial and the Partnerships and (b) RCMI, on behalf of itself and its estate, release and discharge each other from any and all claims and liabilities arising from or related to the Partnerships. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company has operations in Bermuda. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity Management, Inc., filed its Chapter 11 Plan of Liquidation on May 9, 2008. The Court will hold a combined hearing on June 12, 2008, at 10:00 a.m., to consider the approval of the disclosure statement and the confirmation of the Plan. The RCMI Plan does not require the solicitation of votes from claimants, as the claims against it have been resolved pursuant to the terms of the already effective Chapter 11 Plan of Refco, Inc. (Refco Bankruptcy News, Issue No. 81, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: Credit Suisse et al. Also Want Classified Documents -------------------------------------------------------------- Several financial institutions join the request of Thomas H. Lee Partners L.P., Grant Thornton LLP, and Mayer Brown LLP, to the extent that they seek to obtain access to documents and transcripts that have been made available to Litigation Trustee, and that have been withheld by reason of the Protective Order. The financial institutions are: -- Credit Suisse Securities (USA) LLC, -- Banc of America Securities LLC, -- Deutsche Bank Securities Inc., -- Goldman, Sachs & Co., -- Merrill Lynch, Pierce, Fenner & Smith Incorporated, -- J.P. Morgan Securities Inc., -- Sandler O'Neill & Partners, L.P., -- HSBC Securities (USA) Inc., -- William Blair & Company, L.L.C., -- BMO Capital Markets Corp., -- CMG Institutional Trading LLC, -- Samuel A. Ramirez & Company, Inc., -- Muriel Siebert & Co., Inc., -- The Williams Capital Group, L.P., and -- Utendahl Capital Partners, L.P. Philip D. Anker, Esq., at Wilmer Cutler Pickering Hale and Dorr LLP, in New York, tells the U.S. Bankruptcy Court for the Southern District of New York that the documents should be made available to the Underwriters in connection with the pending litigation styled In re: Refco Securities Litigation, 07 MDL 1902 (S.D.N.Y) (Lynch, J.), and subject to the terms of the Confidentiality Order. Dennis A. Klejna also supports T.H. Lee, et al.'s motion, for the same reasons stated by the Underwriters. As reported by the Troubled Company Reporter on May 9, Thomas H. Lee Partners L.P., Grant Thornton LLP, and Mayer Brown LLP seek access to documents and transcripts that have been made available to Marc S. Kirschner, the Trustee for the Litigation Trust and Private Actions Trust of Refco, Inc., and its affiliates and subsidiaries. T.H. Lee, et al., asked the Bankruptcy Court for relief from the first amended protective order governing the production and use of confidential material, dated March 19, 2007. T.H. Lee, et al., are parties to several litigations commenced by the Litigation Trustee, that are presently pending before the Judge Gerard E. Lynch in the United States District Court for the Southern District of New York. BAWAG's Objects Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaf objects to the motion of T.H. Lee, et al., stating that there is no compelling need or extraordinary circumstance supporting the request. Furthermore, the Motion is all the more problematic to the extent that it implicates Austrian Bank Secrecy laws, potentially exposing BAWAG, a non- party, to severe prejudice. Nicolle L. Jacoby, Esq., at Dechert LP, in New York, maintains that BAWAG has reasonably relied on the Protective Order in producing materials to Refco's estate fiduciaries. The entry of the Protective Order was a necessary condition to BAWAG's production. The Protective Order provides that BAWAG's documents will be returned or destroyed upon final resolution of the Debtors' cases. BAWAG believed that the materials that it produced will be in accordance with the explicit terms of the Protective Order, which provides that all confidential materials will be used only by the Committee and the Litigation Trustee. The Protective Order does not provide for the wholesale production of all those documents to defendants in the related actions, Ms. Jacoby insists. Furthermore, BAWAG obtained waivers of Austrian Bank Secrecy laws from the Debtors and their non-Debtor affiliates, in connection with its prior production of documents, but those waivers arguably do not extend to any further dissemination of its documents to third parties, regardless of whether those third parties agree to be bound by the Protective Order. Ms. Jacoby states that T.H. Lee, et al., are required to show a compelling need or extraordinary circumstance for the documents, on the particular terms that they propose. At a minimum, they should be required to submit a more specific request to the Litigation Trustee, and BAWAG should have the opportunity to review those requests, and make objections if appropriate, he asserts. McDermott Will & Emery LLP joins BAWAG's opposition and asks the Court to deny T.H. Lee, et al.'s request. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company has operations in Bermuda. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity Management, Inc., filed its Chapter 11 Plan of Liquidation on May 9, 2008. The Court will hold a combined hearing on June 12, 2008, at 10:00 a.m., to consider the approval of the disclosure statement and the confirmation of the Plan. The RCMI Plan does not require the solicitation of votes from claimants, as the claims against it have been resolved pursuant to the terms of the already effective Chapter 11 Plan of Refco, Inc. (Refco Bankruptcy News, Issue No. 81, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= B O L I V I A ============= COEUR D'ALENE: RBC Capital Keeps Sector Perform Rating on Firm -------------------------------------------------------------- Newratings.com reports that RBC Capital Markets analysts have kept their "sector perform" rating on Coeur d'Alene Mines Corp. According to Newratings.com, RBC Capital analysts decreased the target price for Coeur d'Alene's shares to US$5.00 from US$5.50. RBC Capital said in a research note that Coeur d'Alene's first quarter 2008 results were in-line with the expectations. The analysts told Newratings.com that there are continued execution risks for Coeur d'Alene in the short term. Almost 70% of the net asset value estimate represented projects where production "is not as yet underway," the analysts added. Earnings per share estimates for 2008 and 2009 were decreased to US$0.10 from US$0.13 and to US$0.39 from US$0.49, respectively, Newratings states. 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 =========== AMBAC FINC'L: May Be Hit by Sinking 2nd Lien RMBS, Moody's Says --------------------------------------------------------------- Moody's Investors Service has published a special comment entitled "U.S. Subprime Second Lien RMBS Rating Actions Update", which highlights the persistent poor performance and continued downward rating migration among 2005-2007 vintage second lien mortgage securities. Moody's notes that financial guarantors have significant exposure to second lien RMBS, primarily through guaranties on direct RMBS transactions, and to a lesser extent, through exposure to ABS CDOs, where second lien RMBS securities typically constitute less than 5% of collateral within such CDOs. Moody's loss expectations for this asset class are higher than previously anticipated, owing to worse-than-expected performance trends. This could have material implications for the estimated capital adequacy of financial guarantors most exposed to this risk. In recent announcements of first-quarter 2008 earnings, MBIA and Ambac both reported material credit impairment losses on ABS CDOs and loss reserve charges on direct RMBS exposures, including second lien securitizations. Moody's said that incurred losses within both firms' direct RMBS and ABS CDO portfolios are now meaningfully higher than the rating agency's prior expected-case loss estimates, elevating existing concerns about capitalization levels relative to the Aaa benchmark. Moody's intends, in the short term, to assess whether worsening performance in this sector is likely to be material for exposed financial guarantors, and will update the market as appropriate. In its report published earlier, Moody's notes that based on losses to date, the level of serious delinquency, and the remaining unpaid pool balances on rated second lien transactions, the rating agency has increased its loss projections on loan pools backing subprime second lien RMBS. Moody's now expects 2005 vintage subprime second lien pools to lose 17% on average, 2006 vintage pools to lose 42% on average, and 2007 pools to lose 45% on average. However, Moody's expectations on individual transactions can vary significantly around these average loss estimates, based on the quarter of origination and deal- and issuer specific characteristics, with the worst performing deals issued in 2006/2007 now expected to lose more than 60% of their original pool balance. Based in New York City, Ambac Financial Group, Inc. is a holding company whose affiliates provide financial guarantees and financial services to clients in both the public and private sectors around the world. The company has operations in Brazil. AMERICA LATINA: Consolidated EBITDAR Up to BRL240.2MM in 1Q 2008 ---------------------------------------------------------------- America Latina Logistica S.A. released its results for the first quarter of 2008. -- Consolidated EBITDAR increased 23% to BRL240.2 million in first quarter 2008 and EBITDAR margins expanded 1.3 percentage point, from 45.6% to 47%. Year-over-year EBITDAR and EBITDAR margin growth were mainly driven by higher volumes and revenues in Brazil, partially offset by margins reductions in America Latina Argentina. -- Consolidated volume increased 14.1% in first quarter 2008 to 7,911 million RTK. America Latina Brasil rail volume increased 17.7% in first quarter 2008 to 7.028 million RTK, reflecting significant gains in asset productivity and safety in the company's rail network. Volume growth was driven by a 19.3% increase in agricultural commodities and 14.5% increase in industrial products, partially offset by a 8.3% volume decrease in America Latina Argentina. -- Average yield increased 4.4% and consolidated revenues increased 18.8% in first quarter 2008 to BRL579.8 million. The yield increase reflects higher tariffs on negotiated agreements roughly in line with expected inflation. In Brazil, revenues increased 22.2% in first quarter 2008 and gross yield grew 4.3% while in Argentina yield increased 2.9%. -- America Latina Argentina had a difficult quarter impacted by the farmers' strike. During the month of March, farmers went on a three-week strike blocking the railroads and highways in the country protesting against increases in export taxes. -- Current estimates for the 2008 crop indicate a positive scenario. Expected crop should increase over 5% year- over-year, with soybean increasing 4%, sugar and corn growing above 8%. This positive market environment and the company's improved operational performance in first quarter 2008 should sustain a solid 12% to 14% volume growth throughout 2008. Full information is available on the company's web site at http://www.all-logistica.com/ir Headquartered in Curitiba, Brazil, America Latina Logistica SA aka ALL is holding company engaged in transport services, like as logistics, intermodal transport, port operations, movement and storage of merchandise, administration of storage facilities and general storage. The company is further active in the acquisition and lease of locomotives, wagons and other railroad equipment to third parties. ALL operates in the railroad sector in South Brazil through ALL Brazil and in Argentina through ALL Argentina, with further interests in ALL -- America Latina Logistica-Central SA, ALL-America Latina Logistica-Mesopotamica SA and Boswells SA. In addition, the company offers road transport services in Brazil through America Latina Logistica Intermodal SA. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 10, 2007, Fitch affirms America Latina Logistica SA's local and foreign currency Issuer Default Ratings of B+ with a stable outlook: BANCO NACIONAL: Reduces Production Development Policy Financing --------------------------------------------------------------- President Luiz Inacio Lula da Silva launched the Production Development Policy, on May 12, together with the Ministry of Development, Industry and Commerce, Miguel Jorge, and Banco Nacional de Desenvolvimento Economico e Social President, Luciano Coutinho, in a ceremony with State ministries, governors, political leaders, businessmen and workers. BNDES adopted several actions to support productive investments and exports and incentive to innovation, research and development. BNDES spreads have been cut down, capital goods financing were slashed, and the maturities for the Finame program of capital goods for the industry were increased by twofold, from five to ten years. BNDES will be main player in the new industrial policy, with loans expected to reach BRL210 billion between 2008 and 2010, in industry and services alone. This amount may surpass BRL300 billion if the bank considers financing to infrastructure investments provided by the Growth Acceleration Program -- "the current PAC portfolio in BNDES accounts for 190 projects", Luciano Coutinho said -� and a portion of innovation program funds of the Ministry of Science and Technology that will be transferred by BNDES. According to the Federal Government goals, the new program will raise the economy�s fixed investment rate from 17.6% to 21% of the Brazilian GDP up to 2010. The share of Brazilian exports in the world trade will jump from 1.18% to 1.25%, with expected external sales of US$208.8 billion in three years; a 10% increase must take place in the number of micro and small exporters; and the private sector expenditure in R&D must get to BRL18.2 billion in 2010, corresponding to 0.65% of the GDP, above the current rate of 0.51%. BNDES financial and credit policies have been reviewed, resulting in a cut down of the bank's average basic spread and also the financial intermediation rate. Also, the need to address the increasing financing demand will require changes to BNDES share level, which will allow raising the investments multiplying effect. Main actions taken by BNDES: * Cut down of average basic spread from 1.4% to 1.1% * Cut down on the financial intermediation from 0.8% to 0.5% * Cut down on the capital goods financing cost, of which basic spread drops from 1.5% to 0.9% per annum, with 100% of financing in Long-Term Interest Rate (TJLP) * The maturities of Finame loans for machines and equipment for the industry increased by twofold, from five to 20 years. In order to support the investments in innovation, BNDES will provide BRL6 billion financing to the sector between 2008 and 2010. To do that, credits to technology innovation will have a fixed rate of 4.5% per annum. Credits to engineering and business innovation will be charged at the TJLP only. And the Funtec budget jumps from BRL100 million to BRL300 million. BNDES Capital Market segment was boosted, with the setup of a specific variable income area for investments and interest in innovative companies. BNDES also adopted specific measures for the Northeast by setting up the Fundo de Investimento em Participacoes (Investment Fund for Business Interests) to capitalize local companies. The Fund will have a BRL300 million equity constituted by BNDES, Banco do Brasil and Banco do Nordeste. 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 PANAMERICANO: Net Profit Rises to BRL70.3MM in 1st Quarter ---------------------------------------------------------------- Banco Panamericano SA's net profit increased 126% to BRL70.3 million in the first quarter 2008, from the same period in 2007. Business News Americas relates that Banco Panamericano's return on equity declined to 22.7% in the first quarter 2008, compared to 28.1% in the first quarter 2007. Its net equity rose 174% to BRL1.37 billion. According to BNamericas, Banco Panamericano's net interest income grew 32.1% to BRL396 million in the first quarter 2008, from the first quarter 2007. The bank increased lending, including assignments of loans, by 41.0% to BRL7.77 billion. Banco Panamericano's new loans rose 37.6% to an average of BRL780 million per month. The bank had BRL5.87 billion on its own loan book as of March 31, 2008, about 77.4% compared to March 31, 2007. BNamericas notes that Banco Panamericano's vehicle funding increased 50.7% to BRL4.13 billion "on and off the balance sheet" in the first quarter 2008, from the same period last year. Its payroll loans grew 42.0% to BRL1.70 billion. Its leasing operations rose 43.5% to BRL609 million. According to the report Banco Panamericano's Chief Financial Officer and Investor Relations Officer Wilson Roberto de Aro said that the bank's car loans represented 53.1% and payroll loans accounted for 21.9% of all lending in the first quarter 2008. This indicated Banco Panamericano's strategy to boost credit lines backed by better collateral, Mr. de Aro added. BNamericas relates that Banco Panamericano increased provisions for loan losses by 24.3% to BRL406 million in the first quarter 2008, compared to the first quarter 2007. It improved its non- performing loan ratio to 2.60% from 5.70%. Banco Panamericano's total funding, the report adds, increased 20.3% to BRL6.84 billion in the first quarter 2008, from the first quarter 2007. Its time deposits rose 47.7% to BRL2.06 billion. Assignments of loans to other financial institutions decreased by 13.7% to BRL1.90 billion. BNamericas states that Banco Panamericano issued BRL295 million in debentures in the first quarter 2008, about 103% greater than the first quarter of last year. Mr. de Aro told BNamericas that the bank will issue a new tranche of securities in 2008 as part of a medium-term note program, which was raised to US$500 million from US$300 million. Banco Panamericano's total assets increased 52.2% to BRL7.36 billion in March 2008, from March 2007, BNamericas reports. According to Banco Panamericano, its insurance division Panamericana de Seguros' net income declined 33.2% to BRL3.57 million in the first quarter 2008, from the same period 2007. BNamericas says that Panamericana de Seguros' operating income decreased by 12.8% to BRL5.24 million in the first quarter 2008, from the first quarter 2007. Its earned premiums declined 2.79% to BRL25.2 million. Claims paid rose 47.2% to BRL15.5 million and technical provisions for insurance increased 52.2% to BRL88.7 million. Technical provisions for private pension plans stayed flat at BRL119 million. The insurance unit had BRL204 million in total assets as of March 2008/ Banco PanAmericano is headquartered in Sao Paulo, Brazil and had total assets of BRL2.54 billion and equity of BRL413 million in March 2006. * * * In March 2008, Moody's Investors Service assigned a Ba2 global local-currency deposit rating on Banco Panamericano S.A. Moody's also assigned a Ba2 foreign currency deposit rating on the bank. CAMARGO CORREA: Registers to Bid for Jirau Hydro Plant ------------------------------------------------------ Business News Americas reports that Camargo Correa SA has registered to join the May 19 auction for the construction and operation of the 3.3-gigawatt Jirau hydro plant on the Madeira river. According to BNamericas, Camargo Correa has joined the consortium Energia Sustentavel do Brasil to bid for Jirau. Other firms comprising this group are Suez, Eletrosul, and Chesf. BNamericas notes that the other group bidding for the project, Jirau Energia, includes: -- Furnas, -- Odebrecht, -- Andrade Gutierrez, -- Cemig, and -- Amazonia Energia. BNamericas relates that the Brazilian government expects the Jirau project to be completed in January 2013. Investments in the plant will total BRL8.7 billion, federal energy planning company Empresa de Pesquisa Energetica told BNamericas. Camargo Correa SA is one of the largest private industrial conglomerates in Brazil. The company is a holding company with interests in cement, engineering and construction, textiles, footwear and sportswear manufacturing. It also owns non- controlling equity interests in the energy, transportation (highway concessions) and steel businesses. During the last 12 months through June 2007, Camargo Correa had net sales of BRL9.2 billion and EBITDA of BRL1.4 billion. As reported in the Troubled Company Reported-Latin America on Nov. 27, 2007, Fitch Ratings affirmed the foreign currency and local currency Issuer Default Ratings of Camargo Correa S.A. at 'BB'. Fitch also affirmed the 'BB' rating on the US$250 million senior unsecured bonds due 2016 issued by CCSA Finance Limited (a special-purpose vehicle wholly-owned by Camargo and incorporated in the Cayman Islands), which is unconditionally guaranteed by Camargo Correa. In addition, Fitch has also upgraded Camargo's national debt rating to 'AA-(bra)' from 'A+(bra)'. Fitch said the rating outlook is stable. CENTRAIS ELECTRICAS: S&P Ups B- Corporate Credit Rating to B ------------------------------------------------------------ Standard & Poor's Ratings Services has raised its corporate credit ratings by one notch in the global scale on three Brazilian electric power distribution companies: -- Centrais Eletricas Matogrossenses S.A. (to 'B' from 'B-'), -- Centrais Eletricas do Para S.A. (to 'B' from 'B-'), and -- Companhia de Energia Electrica do Estado do Tocantins (to 'B+' from 'B'). S&P also upgraded Centrais Eletricas do Para SA and Centrais Eletricas Matogrossenses SA's jointly owned US$38 million outstanding unsecured senior notes units to 'B' from 'B-'. The rating actions mirror significant improvements in the companies' financial risk profile, marked by the development in the companies' financial flexibility and liquidity position. The three companies have concentrated efforts in liability management, mainly focusing on extending debt maturities. The companies have also benefited from capturing part of the resources from the perpetual notes issued by the main shareholder Rede Empresas de Energia S.A. (not rated). The positive outlook for Centrais Eletricas Matogrossenses and Companhia de Energia Electrica do Estado do Tocantins reflects S&P's expectations that the companies' financial performances will continue to evolve positively, even considering the second cycle of the tariff revision process that was recently established for the companies. The companies' current liquidity cushion provides additional comfort and the belief that they will present credit metrics according to their ratings. S&P may upgrade the global scale corporate credit ratings for Companhia de Energia Electrica do Estado do Tocantins and Centrais Eletricas Matogrossenses by one notch, if the companies continue to work on liability management in their quality and efficiency indicators, thus resulting in improved financial profiles. The stable outlook on Centrais Eletricas do Para reflects S&P's expectation that the company can adequately manage its maturity schedule, maintain its current credit fundamentals, and gradually improve its cash flow protection measures. S&P could revise the outlook to positive if financial metrics are higher than the rating agency's expectations. "We could downgrade all of the company ratings if a more aggressive financial policy, resulting from an imprudent debt increase from a more aggressive dividend distribution, potentially pressures ratings," said S&P's credit analyst Juliana Gallo. Headquartered in Cuiaba, Brazil, Centrais Eletricas Matogrossenses SA (aka Cemat) -- http://www.cemat.com.br-- is engaged in electricity distribution, transmission, generation and trading activities. The company generates, stores and distributes hydroelectric energy to the Mato Grosso State in Brazil. It serves 141 cities and operates a concession of 903,358 square kilometers, with an estimated population of 2.8 million and 827,762 consumers. The company provides electric power for residential, industrial, commercial, rural, public power, public lighting, and public service consumers. Centrais Eletricas Matogrossenses belongs to REDE Empresas de Energia Electrica SA and its electricity sales represent 32% of the group�s energy distribution market. CIA. ENERGETICA: Net Profit Increases to BRL56.5MM in 1st Qtr. -------------------------------------------------------------- Companhia Energetica de Sao Paulo's net profit increased to BRL56.5 million in the first quarter of 2008, from BRL28.2 million in the first quarter 2007. Business News Americas relates that Companhia Energetica's net revenue grew 20% to BRL589 million in the first quarter 2008, compared to the first quarter 2007. Its EBITDA decreased 7% to BRL268 million. Its power sales increased 21.1% to BRL710 million and volume rose 6% to 8.31 terra-watt hours. Companhia Energetica told BNamericas that its operating expenses increased 37% to BRL442 million in the first quarter 2008, from the first quarter 2007, due to the "high cost of purchasing power in the spot market." Companhia Energetica's net debt declined 5% to BRL6.32 billion in the first quarter 2008, from the the end of 2007, BNamericas states. Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2007, Standard & Poor's Ratings Services raised its ratings on electricity generator Companhia Energetica de Sao Paulo, including its corporate credit rating to 'B' from 'B-'. At the same time, S&P raised its Brazil national scale ratings on CESP to 'brBBB-' from 'brBB'. S&P said the outlook remains positive on both scales. GENERAL MOTORS: May Use US$7 Bln Undrawn Loans Upon Biz Downturn ---------------------------------------------------------------- Although General Motors Corp. is confident of a liquidity cushion that would sustain global automotive operations in 2008, it intends to manage liquidity in a U.S. industry downturn by accessing roughly US$7 billion of undrawn U.S. commited credit facilities, according to a Securities and Exchange Commission filing. If current adverse economic conditions persist or deteriorate further, GM would consider a wide range of possible actions to reduce its funding needs and to obtain additional liquidity. As reported in the Troubled Company Reporter on May 9, 2008, the work stoppage at supplier American Axle & Manufacturing Holdings Inc. has negatively impacted GM's liquidity by US$2.1 billion for the three months ended March 31, 2008. Approximately 30 of GM's plants in North America have been fully or partially idled by the work stoppage. GM, however, said the work stoppage has not negatively impacted the company's ability to meet customer demand due to the high levels of inventory at its dealers. GM North America's results were negatively impacted by US$800 million as a result of the loss of approximately 100,000 production units in the three months ended March 31, 2008. The automaker anticipates that this lost production will not be fully recovered after this work stoppage is resolved, due to the current economic environment in the United States and to the market shift away from the types of vehicles that have been most strongly affected by the action at American Axle. At March 31, 2008, GM's balance sheet showed total assets of US$145,741,000,000 and total debts of US$186,784,000,000, resulting in a stockholders' deficit of US$41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was US$37,094,000,000 and US$4,558,000,000, respectively. For three months ended March 31, 2008, GM reported a net loss of US$3,251,000,000 on US$42,670,000,000 total net sales and revenue, compared to a net income of US$62,000,000 on US$43,387,000,000 total net sales and revenue for same period last year. According to the regulatory filing, the company has long-term plans to cut U.S. hourly people costs by $5 billion in 2010 or 2011. GM's mid-term outlook includes pricing for stronger brands, materil cost reductions, improved GMAC LLC performance, and further growth of emerging markets. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on May 7, 2008, Standard & Poor's Ratings Services said its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. remain on CreditWatch with negative implications, where they were placed March 17, 2008. The update follows the announcement by Residential Capital LLC (CC/Watch Neg/C) that it is launching an exchange offer for unsecured bonds, which S&P interpret to be a distressed debt exchange. (Residential Capital is a unit of 49%-owned unit GMAC LLC [B/Negative/C]. GOL LINHAS: VRG Inks Interline Agreement With Copa Airlines ----------------------------------------------------------- GOL Linhas Aereas Inteligentes S.A., the parent company of Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas Aereas S.A., reported an interline agreement between VRG Linhas and Panama-based Copa Airlines. Effective immediately, travel agencies can issue e-tickets for VRG Linhas' domestic flights in conjunction with Copa Airlines' international destinations. The agreement will offer additional benefits for VRG Linhas passengers in Belo Horizonte, Brasilia, Curitiba, Florianopolis, Fortaleza, Porto Alegre, Recife or Salvador. From these cities, customers traveling to Central America, the Caribbean, the United States, Colombia, Ecuador and Venezuela can now connect to Copa flights with just one ticket. Additionally, passengers will have the added convenience of checking their luggage through to their final destination. Since September 2007, VRG Linhas has participated in Multilateral Interline Traffic Agreement (MITA), an IATA network of airlines from around the world. All MITA members have the option to enter interline agreements with other member airlines. In addition to these new partnerships, VRG Linhas maintains interline agreements with Brazil's GOL, France's Air France, Germany's Hahn Air, Greece's Aegean, Holand's KLM, Hungary's Malev, Israel's El Al, Italy's Air One, Japan Airlines (JAL), Mexico's Mexicana, Air Moldova, Poland's LOT Polish Airlines, TAP Portugal, South Korea's Korean Air, Spain's Iberia and Air Comet, Qatar Airways, Taiwan's China Airlines, the Czech Republic's CSA Czech Airlines, the Ukraine International Airlines, the United Arab Emirates' Etihad Airways, the United States' Delta Air Lines and Turkey's Turkish Airlines. Passengers traveling under the Smiles frequent flier program can only accumulate miles on flights operated by VRG Linhas. Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) -- http://www.voegol.com.br-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Gol Linhas Aereas Inteligentes S.A. Fitch also affirmed the outstanding US$200 million perpetual bonds and US$200 million of senior notes due 2017 at 'BB+' as well as the company's 'AA-' (bra) national scale rating. Fitch said the rating outlook is stable. As reported in the Troubled Company Reporter-Latin America on May 2, 2008, the company had BRL3.5 million consolidated net loss for the quarter. TELEMIG CELULAR: Vivo Buys Firm's Preferred Shares for US$315MM --------------------------------------------------------------- Telemig Celular and its parent, Telemig Celular Participacoes S.A., has been acquired by Vivo Participacoes for BRL522 million (US$315 million), Business News Americas reports, citing the Brazilian stock exchange Bovespa. As reported in the Troubled Company Reporter-Latin America April 10, 2008, Vivo launched a voluntary public tender offer for up to one-third of the companies' preferred shares on the Bovespa stock exchange. Last month, Vivo, a joint venture between Spain's Telefonica and Portugal Telecom closed the purchase of Telemig Celular's controlling stake, BNamericas relates. Report shows that Telemig Celular has received BRL654.72 per share while the parent firm has received BRL63.90 per share during the public offering of the Telemig stock on May 12. About Vivo Officially launched in the first quarter of 2003, Vivo Participacoes is the joint venture of the wireless operations owned by Portugal Telecom and Telefonica Moviles in Brazil. Operating under the brand name Vivo, it consolidates the wireless operations of Telesp Celular (Sao Paulo state), Global Telecom (Parana and Santa Catarina states), Tele Sudeste Celular (Rio de Janeiro and Espirito Santo states), CRT Celular (Rio Grande do Sul state), Tele Leste Celular (Bahia and Sergipe states) and Tele Centro Oeste Celular (Acre, Rondonia, Mato Grosso, Mato Grosso do Sul, Goias and Tocantins states, and the Districto Federal). About Telemig Celular Headquartered in Belo Horizonte, Brazil, Telemig Celular is the leading provider of mobile communications services in the state of Minas Gerais, Brazil. As of November 2007, Telemig Celular had 3.5 million customers, with a market share of 30% in its concession area. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services disclosed that its 'BB-' long-term corporate credit rating on Telemig Celular S.A. and its 'B+' long-term corporate credit rating on Amazonia Celular S.A. remain on CreditWatch with positive implications, where they were placed on Aug. 6, 2007. USINAS SIDERURGICAS: Says U.S. Economic Lag Won't Affect Brazil --------------------------------------------------------------- Usinas Siderurgicas de Minas Gerais SA's Director of Sales to External Markets Renato Vallerini told Business News Americas that the economic slowdown in the U.S. won't affect the global or Brazilian steel market. According to BNamericas, Mr. Vallerini said during a presentation at the Coaltrans 2008 conference in Rio de Janeiro that risks in the U.S. economy wouldn't inhibit new investments worldwide. "The short to medium-term scenario looks very favorable for investments in steel mills around the world," Mr. Vallerini added. BNamericas notes that Mr. Vallerini praised China for giving the industry a much needed increase in 2002. Mr. Vallerini commented, "China rescued the steel industry from stagnation six years ago. If it weren't for China and other Asian countries, steel production in the rest of the world would have been insignificant. China should continue to drive growth in the global industry." China currently consumes 34% of the world's steel production, Mr. Vallerini added. Global steel output should continue to increase, BNamericas says, citing Mr. Vallerini. Yearly growth rates will gradually declined in the coming years. "Production should go up 6% in 2008, 5.5% in 2009, 5% in 2010 and also 5% in 2011," Mr. Vallerini said. Mr. Vallerini commented to BNamericas, "Iron ore ... should reach US$100 per ton in 2008 compared to US$80 per ton in 2007 and US$70 per ton in 2006." Shipping prices rose 71% to US$84 per ton in May 2008, from US$49 per ton in January 2008, BNamericas notes. Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de Minas Gerais SA -- http://www.usiminas.com.br-- is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. The company also sells in China and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local currency rating and an Aa1.br rating on its Brazilian national scale to the BRL500 million non-guaranteed subordinated debentures due 2013 to be issued by Usinas Siderurgicas de Minas Gerais S.A. (aka Usiminas). Net proceeds from the debentures issuance will be used to partially fund the company's capex program. Moody's said the rating outlook is stable. ========================== C A Y M A N I S L A N D S ========================== ANN FUNDING: Will Hold Final Shareholders Meeting on May 16 ----------------------------------------------------------- Ann Funding Four Co. Ltd. will hold its final shareholders meeting on May 16, 2008, at 12:00 p.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) authorizing the liquidator of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Ann Funding's shareholder agreed on April 4, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands ARSAGO QUANT: Deadline for Proofs of Claim Filing Is May 16 ----------------------------------------------------------- Arsago Quant Strategies Fund Ltd.'s creditors have until May 16, 2008, to prove their claims to Richard L. Finlay, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Arsago Quant's shareholder decided on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay Attn: Krysten Lumsden c/o Conyers Dill & Pearman, P.O. Box 2681, Cricket Square, Hutchins Drive, George Town, Grand Cayman, Cayman Islands, Telephone: (345) 945 3901 Fax: (345) 945 3902 ARSAGO QUANT: Will Hold Final Shareholders Meeting on May 16 ------------------------------------------------------------ Arsago Quant Strategies Fund Ltd. will hold its final shareholders meeting on May 16, 2008, at 9:00 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) authorizing the liquidator of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Arsago Quant's shareholder agreed on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay Attn: Krysten Lumsden c/o Conyers Dill & Pearman, P.O. Box 2681, Cricket Square, Hutchins Drive, George Town, Grand Cayman, Cayman Islands, Telephone: (345) 945 3901 Fax: (345) 945 3902 ARSAGO GLOBAL: Proofs of Claim Filing Deadline Is Until May 16 -------------------------------------------------------------- Arsago Global Hedge Fund Ltd.'s creditors have until May 16, 2008, to prove their claims to Richard L. Finlay, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Arsago Global's shareholder decided on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay Attn: Krysten Lumsden c/o Conyers Dill & Pearman, P.O. Box 2681, Cricket Square, Hutchins Drive, George Town, Grand Cayman, Cayman Islands, Telephone: (345) 945 3901 Fax: (345) 945 3902 ARSAGO GLOBAL: To Hold Final Shareholders Meeting on May 16 ----------------------------------------------------------- Arsago Global Hedge Fund Ltd. will hold its final shareholders meeting on May 16, 2008, at 9:00 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) authorizing the liquidator of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Arsago Quant's shareholder agreed on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay Attn: Krysten Lumsden c/o Conyers Dill & Pearman, P.O. Box 2681, Cricket Square, Hutchins Drive, George Town, Grand Cayman, Cayman Islands, Telephone: (345) 945 3901 Fax: (345) 945 3902 CONSOLIDATED FINANCIAL: Final Shareholders Meeting Is on May 16 --------------------------------------------------------------- Consolidated Financial Holdings Ltd. will hold its final shareholders meeting on May 16, 2008, at 11:30 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) authorizing the liquidator of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Consolidated Financial's shareholder agreed on April 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands EASTERN PROMISE: To Hold Final Shareholders Meeting on May 16 ------------------------------------------------------------- Eastern Promise Ltd. will hold its final shareholders meeting on May 16, 2008, at UMS, 22 rue de Villereuse, 1207 Geneva, Switzerland. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) giving explanation thereof. Eastern Promise's shareholder agreed on March 17, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Alain Andrey c/o Maples and Calder P.O. Box 309GT Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands GLOBAL ALPHA: Will Hold Final Shareholders Meeting on May 16 ------------------------------------------------------------ Global Alpha Alliance Ltd. will hold its final shareholders meeting on May 16, 2008, at 11:00 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) authorizing the liquidator of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Global Alpha's shareholder agreed on March 28, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands HONG KONG PROPERTY: To Hold Final Shareholders Meeting on May 16 ---------------------------------------------------------------- Hong Kong Property Co. Ltd. will hold its final shareholders meeting on May 16, 2008, at 3:00 p.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) authorizing the liquidator of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Hong Kong Property's shareholder agreed on April 4, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Rainier Hok Chung Lam and John James Toohey Attn: Jodi Jones P.O. Box 258, Grand Cayman, Cayman Islands Telephone: (345) 914 8694 Fax: (345) 949 4590 MUTSUKI GLOBAL: Will Hold Final Shareholders Meeting on May 16 -------------------------------------------------------------- Mutsuki Global Investment Ltd. will hold its final shareholders meeting on May 16, 2008, at 9:00 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) authorizing the liquidator of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Mutsuki Global's shareholder agreed on April 1, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands MACQUARIE INTERNATIONAL: Final Shareholders Meeting is on May 16 ---------------------------------------------------------------- Macquarie International Small Cap Roads Co. will hold its final shareholders meeting on May 16, 2008, at Level 10, 125 West 55th Street, New York, New York 10019 USA. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) giving explanation thereof. Macquarie International's shareholder agreed on March 27, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Christine Rivera Level 10, 125 West 55th Street New York, New York 10019 USA MERLIN BIOMED: Will Hold Final Shareholders Meeting on May 16 ------------------------------------------------------------- Merlin Biomed International Ltd. will hold its final shareholders meeting on May 16, 2008, at 10:00 a.m. at the offices of Ogier, Attorneys, Queensgate House, South Church Street, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process; and 2) authorizing the liquidator of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Merlin Biomed's share