/raid1/www/Hosts/bankrupt/TCRLA_Public/080516.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, May 16, 2008, Vol. 9, No. 97
Headlines
A R G E N T I N A
ALITALIA SPA: EC Gives Italy Until May 30 to Explain Loan
ALITALIA SPA: Rome Prosecutor Probing Baldassare's Offer
ESTABLECIMIENTO AVICOLA: To Hold Informative Assembly Next Year
FORESTAL PORTENA: Proofs of Claim Verification Is Until July 18
GRAN FARMACIA: Proofs of Claim Verification Deadline Is July 11
INVERSIONES Y REPRESENTACIONES: Earns ARS22.9 Mil. in Nine Mos.
MENDOAJO SRL: Proofs of Claim Verification Deadline Is Aug. 11
PETROBRAS ENERGIA: Net Income Rose 5% to ARS192 Mil. in 1Q 2008
QUIMICA WARNES: Court Appoints Gisela Bertolino as Trustee
RIENTE HNOS: Trustee Verifies Proofs of Claim Until May 28
RUBROS SA: Trustee to File General Report in Court on Oct. 10
* FORMOSA PROVINCE: Moody's Lifts Junk Global Scale Rating to B3
B A H A M A S
CREATOR CAPITAL: March 31 Balance Sheet Upside Down by US$4.3MM
TEEKAY CORP: Net Income Slides by 80% to US$15.2 Mil. in 1Q 2008
B E R M U D A
ASPEN INSURANCE: Buys Back Shares From Candover for US$100 Mil.
DSG TRADING: Sets Final Shareholders Meeting for June 16
DUAL-STRATEGY GUARANTEED: Final Shareholders Meeting on June 17
PRIMUS LIMITED: Proofs of Claim Filing Deadline Is May 30
SULA AVIATION: Proofs of Claim Filing Deadline Is May 28
SULA AVIATION: Sets Final Shareholders Meeting for June 19
TWENTY FIRST: Court to Hear Wind-Up Petition on June 20
TYCO INTERNATIONAL: Extends Consent & Exchange Offer Expiration
TYCO INTERNATIONAL: CEO Will Present at Electrical Conference
B R A Z I L
BANCO DO BRASIL: Net Profit Increases to BRL2.35 Bil. in 1Q 2008
BANCO DO BRASIL: May Issue Bonds in Int'l Capital Markets
BANCO DO BRASIL: Units' Net Profit Drops to BRL133MM in 1st Qtr.
BANCO DO BRASIL: Wants to Boost Car Loans by Up to BRL7 Billion
BR MALLS: 1Q 2008 Adjusted EBITDA Up 112% to RBRL47.4 Million
BANCO NACIONAL: Will Lend BRL210 Billion to Industry & Services
EMI GROUP: Plans to Slash Recorded Music Employees to 2,000
JBS SA: Incurs BRL6.6 Million Net Loss in Quarter Ended March 31
MARFRIG FRIGORIFICOS: Net Income Down to BRL25.1 Mil. in 1Q 2008
NIELSEN COMPANY: Posts US$82 Million Net Loss in 1st Qtr. 2008
NIELSEN COMPANY: Integrates Nielsen NRG with BASES Organization
NIELSEN COMPANY: Product Placements Up 6% in First Quarter 2008
ULTRAPAR PARTICIPACOES: Earnings Grow to BRL90 Mil. in 1Q 2008
C A Y M A N I S L A N D S
BANCO INDUSTRIAL: Moody's Rates Cayman Unit's US$50MM Notes Ba1
CARLYLE CAPITAL: Proofs of Claim Filing Deadline Is May 19
CARLYLE CAPITAL CAYMAN: Claims Filing Deadline Is Until May 19
EFFJOHN INTERNATIONAL: Claims Filing Deadline Is Until May 18
EFFJOHN INTERNATIONAL: Sets Final Shareholders Meeting on May 19
EMPIRE SQUARE: Deadline for Proofs of Claim Filing Is May 17
IDA INVESTMENT: Proofs of Claim Filing Deadline Is May 17
MADISON RIDGE: Will Hold Final Shareholders Meeting on May 19
PHYLON FUND: Deadline for Proofs of Claim Filing Is May 19
QUANT TRADING: Deadline for Proofs of Claim Filing Is May 19
QUANT TRADING: To Hold Final Shareholders Meeting on May 19
SEINE AIRCRAFT: Proofs of Claim Filing Deadline Is Until May 17
WALKERS COMPLIANCE: Proofs of Claim Filing Deadline Is May 18
C H I L E
AES CORP: Commences Tender Offer for US$377 Million Senior Notes
AES CORP: Moody's Rates Proposed US$600 Mln Sr. Notes at B1
EASTMAN KODAK: Posts US$115 Million Net loss in First Quarter
C O L O M B I A
GRAN TIERRA: Security Situation in Colombia Is Greatest Threat
GRAN TIERRA: Says Rig Market in Colombia Must Get Tighter
D O M I N I C A N R E P U B L I C
CERVECERIA NACIONAL: S&P Holds B+ Credit & Senior Debt Ratings
J A M A I C A
AIR JAMAICA: Unions Urge Workers to Continue Protests
CABLE & WIRELESS: Launches Bundled Services for Mobile Phone
CASH PLUS: Court Extends Carlos Hill's Bail
DIGICEL LTD: Hires Junaid Munshi as Commercial Director-Jamaica
NAT'L COMMERCIAL: Court to Inform Attorneys for Ruling Schedule
NATIONAL COMMERCIAL: Courtney Campbell Resigns as Division Chief
M E X I C O
CABLEMAS SA: Swings to MXN30.3 Mil. Net Income in 4Q 2007
CABLEMAS SA: Net Income Up 220% to MXN226.2 Million in 2008
THERMADYNE HOLDINGS: Earns US$4.5 Mln in Quarter Ended March 31
TIMKEN CO: Will Provide Bearing Services to America Latina
XERIUM TECH: Posts US$4.7 Million Net Loss in First Quarter
P A N A M A
AES CORP: To Offer US$600 Mil. Unsecured Senior Notes Due 2020
P E R U
GRAN TIERRA: To Shoot 2D Seismic on Two Blocks in Peru Next Year
P U E R T O R I C O
DIRECTV GROUP: Subsidiaries Close US$2.5 Billion Debt Financing
PATHEON INC: Eric Evans Named Chief Financial Officer
V E N E Z U E L A
PRIDE INTERNATIONAL: Earns US$240.7 Million in 1st Quarter 2008
PETROLEOS DE VENEZUELA: Will Launch Gas Exports From New Trains
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A R G E N T I N A
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ALITALIA SPA: EC Gives Italy Until May 30 to Explain Loan
---------------------------------------------------------
The European Commission has extended to May 30, 2008, the
deadline for the Italian government to provide details on its
EUR300-million loan to Alitalia S.p.A., Reuters reports citing a
commission spokesman.
The Commission is reviewing the loan for possible violation of
the European Union rule on state aid. Italy needs to prove that
the loan was offered on commercial terms to gain approval from
the Commission.
European Union Transport Commissioner Jacques Barrot, however,
said Alitalia's weak coffers have raised doubts on the legality
of the loan.
Alitalia may face months-long probe over the legality of the
loan, which may further cramp Italy's efforts to sell its 49.9%
stake in the national carrier.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes, including United States, Canada,
Japan and Argentina. The Italian government owns 49.9% of
Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
ALITALIA SPA: Rome Prosecutor Probing Baldassare's Offer
--------------------------------------------------------
The Prosecutor of Rome has commenced investigation into the
financial transactions of the consortium led by Antonio
Baldassare relating to its offer for the Italian government's
49.9% stake in Alitalia S.p.A., Agenzia Giornalistica Italia
reports.
The prosecutors -- Stefano Pesci, Maria Francesca Loy, Gustavo
De Marinis, and Nello Rossi -- are probing whether the dealings
resulted to manipulation of Alitalia's stock price, AGI relates.
According to AGI, the prosecutors will send a formal request to
foreign courts for judicial assistance to find out the type of
financial packages offered to the Baldassare consortium.
In November 2007, Alitalia's board of directors concluded that
Mr. Baldassarre's consortium lack necessary requisites to take
part in the auction for the government's stake.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes, including United States, Canada,
Japan and Argentina. The Italian government owns 49.9% of
Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
ESTABLECIMIENTO AVICOLA: To Hold Informative Assembly Next Year
---------------------------------------------------------------
Establecimiento Avicola La Campesina SA's creditors will vote on
the completed settlement plan during an informative assembly on
April 30, 2009.
Estudio Castro, Danovara y Asociados -- the court-appointed
trustee for Establecimiento Avicola's reorganization proceeding
-- will be verifying creditors' proofs of claim until
July 17, 2008.
Estudio Castro will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 3 in Buenos Aires, with the assistance of Clerk
No. 6, 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 Establecimiento Avicola
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 Establecimiento
Avicola's accounting and banking records will be submitted in
court.
La Nacion didn't state the submission dates for the reports.
The debtor can be reached at:
Establecimiento Avicola La Campesina SA
Emilio Castro 7440
Buenos Aires, Argentina
The trustee can be reached at:
Estudio Castro, Danovara y Asociados
Jeronimo Salguero 2533
Buenos Aires, Argentina
FORESTAL PORTENA: Proofs of Claim Verification Is Until July 18
---------------------------------------------------------------
The court-appointed trustee for Forestal Portena S.R.L.'s
bankruptcy proceeding, will be verifying creditors' proofs of
claim until July 18, 2008.
The trustee will present the validated claims in court as
individual reports on Sept. 12, 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 Forestal Portena 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 Forestal Portena's
accounting and banking records will be submitted in court on
Oct. 24, 2008.
The trustee is also in charge of administering Forestal
Portena's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Forestal Portena S.R.L.
Ruta Nac 14 Zona Industrial 3352
San Pedro, Argentina
Telephone: (03751) 47-0287
Fax: (03751) 47-0287
GRAN FARMACIA: Proofs of Claim Verification Deadline Is July 11
---------------------------------------------------------------
Jose Fernandez, the court-appointed trustee for Gran Farmacia
SCS's bankruptcy proceeding, will be verifying creditors' proofs
of claim until July 11, 2008.
Mr. Fernandez will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 51, 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 Gran Farmacia 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 Gran Farmacia's
accounting and banking records will be submitted in court.
La Nacion didn't state the submission dates for the reports.
Mr. Fernandez is also in charge of administering Gran Farmacia's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Gran Farmacia SCS
Bermudez 2400
Buenos Aires, Argentina
INVERSIONES Y REPRESENTACIONES: Earns ARS22.9 Mil. in Nine Mos.
---------------------------------------------------------------
Inversiones y Representaciones Sociedad Anonima reported its
results for the nine-month period ended March 31, 2008.
Consolidated sales rose by 58.7%, up from ARS521.9 million as of
March 31, 2007, to ARS828.5 million as of March 31, 2008.
The share of the company's various segments in net revenues was
as follows: sales and developments, ARS175.2 million; offices
and other rental properties, ARS73 million; shopping centers,
ARS252 million; hotels, ARS115.1 million; credit cards, ARS212.7
million; and financial operations and others, ARS0.5 million.
Highlights:
-- Operating income improved considerably, reaching ARS223.7
million for the nine months ended March 31, 2008, 40%
higher than in the same quarter of the previous fiscal
year. Operating income of the Sales and Developments,
Office and Shopping Center segments increased at a higher
pace than their related revenues.
-- Net income was ARS22.9 million compared to ARS113.9
million as of March 2007, due to lower financial results
and losses from the company's interest in Banco
Hipotecario, attributable mainly to the valuation of long-
term government securities at market values. Business
indicators and operating results of Banco Hipotecario have
shown year-on-year improvements.
-- Shopping Center Segment: Occupancy levels in its Shopping
Centers remains high, at 98.5%. Revenues grew by 27%
compared to the same period of the previous fiscal year.
The company is making progress in the development of its
project through Panamerican Mall S.A. and it has filed the
blueprints for approval of its project in Neuquen.
-- Office Segment: Occupancy rates remain at high levels
(98.3%), and the monthly rental price per square meter of
the company's portfolio increased from US$19 to US$22 from
December 2007 to the close of March 2008 as a result of
the adjustment of lease agreements. On April 2008, the
company exercised the purchase option for Edificio
Republica for US$70.3 million, which added approximately
20,000 square meters of gross leaseable area to its
premium office portfolio. As concerns new construction
projects, the company expects to complete works at the
Dique IV project towards December 2008.
-- Sales and Developments: The Horizons project was launched
in the district of Vicente Lopez. This is the company's
first project in partnership with Cyrela in the local
market. The launching was a total success, as all units
were reserved and there is a waiting list should any
reserves be cancelled.
-- Sales and Developments: Revenues have increased as a
result of the sales made in the nine-month period,
including 29.9% of Edificio La Nacion, the rights over the
Torre Renoir II project and the execution of preliminary
agreements for units sold in Renoir I and Abril.
-- Solares de Santa Maria: the company intends to make
progress in the steps towards launching the project, which
was approved by the Chief of Government of the City of
Buenos Aires last November and later challenged at the
court.
-- Hotels: Average occupancy for the nine months stood at
levels higher than 75% despite the increase recorded in
average room rates, which rose from ARS481 to ARS619.
To view the longer version of this press release, visit the
company's Web site at http://www.irsa.com.ar
Created in 1943, Inversiones y Representaciones S.A. aka IRSA
(NYSE: IRS) (BCBA: IRSA) is a leading company with activities in
the business of offices, commercial centers and hotels. It is
the only company in the industry whose shares are listed on the
Bolsa de Comercio de Buenos Aires and The New York Stock
Exchange. Through its subsidiaries, IRSA manages an expanding
top portfolio of shopping centers and office buildings,
primarily in Buenos Aires. The company also develops
residential subdivisions and apartments (specializing in high-
rises and loft-style conversions) and owns three luxury hotels.
Additionally, IRSA owns a 11.8% stake in Banco Hipotecario,
Argentina's largest mortgage supplier in the country which
shareholder's equity amounted to ARS2,247.6 million.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Fitch Ratings upgraded Inversiones y
Representaciones S.A.'s ratings including its Foreign currency
Issuer Default Rating to 'B+' from 'B', Local currency IDR to
'B+' from 'B', US$150 million notes due in 2017 to 'B+/RR4' from
'B'. Fitch said all ratings have stable outlooks.
MENDOAJO SRL: Proofs of Claim Verification Deadline Is Aug. 11
--------------------------------------------------------------
The court-appointed trustee for Mendoajo S.R.L.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
Aug. 11, 2008.
The trustee will present the validated claims in court as
individual reports on Sept. 24, 2008. The National Commercial
Court of First Instance in Mendoza 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 Mendoajo 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 Mendoajo's accounting
and banking records will be submitted in court on Nov. 5, 2008.
The trustee is also in charge of administering Mendoajo's assets
under court supervision and will take part in their disposal to
the extent established by law.
PETROBRAS ENERGIA: Net Income Rose 5% to ARS192 Mil. in 1Q 2008
---------------------------------------------------------------
For the first quarter ended March 31, 2008, Petrobras Energia
Participaciones S.A. reported consolidated net income of
ARS192 million, up 5% from the ARS182 million booked in the same
period in 2007. The company attributed the improvement to its
75.82% interest in Petrobras Energia S.A., whose net income for
2008 quarter was ARS261 million.
Petrobras Participaciones' first quarter net sales rose 12% in
2008 to ARS3.21 billion, from the ARS2.86 billion earned in
2007. With cost of sales of ARS2.34 billion, administrative and
selling expenses of ARS365 million, exploration expenses of
ARS49 million, and ARS29 million in other operating expenses,
the company booked an operating income of ARS426 million in 2008
first quarter.
As of March 31, 2008, the company has total assets of
ARS21.43 billion, total liabilities of ARS11.97 billion, and
shareholders equity of ARS6.86 billion.
Argentina-based Petrobras Energia Participaciones S.A. (Buenos
Aires: PBE, NYSE:PZE) a holding company that operates through
its subsidiaries. The company's principal assets is 75.8% of
the equity interest of Petrobras Energia S.A., an integrated
energy company, focused in oil and gas exploration and
production, refining, petrochemical activities, generation,
transmission and distribution of electricity and sale and
transmission of hydrocarbons.
* * *
Petrobras Energia Participaciones S.A. presently carries a 'B'
Long-Term Issuer Default Rating placed by Fitch Ratings on
Oct. 14, 2004.
QUIMICA WARNES: Court Appoints Gisela Bertolino as Trustee
----------------------------------------------------------
The National Commercial Court of First Instance in Rosario,
Santa Fe, has appointed Gisela Bertolino as trustee for Quimica
Warnes S.R.L.'s bankruptcy proceeding.
Ms. Bertolino will be verifying creditors' proofs of claim and
present the validated claims in court as individual reports.
The court 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 Quimica Warnes 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 Quimica Warnes'
accounting and banking records will be submitted in court.
Ms. Bertolino will be in charge of administering Quimica Warnes'
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Quimica Warnes S.R.L.
PL Gallo 1771, Rosario
Santa Fe, Argentina
Telephone: (0341) 455-0615
RIENTE HNOS: Trustee Verifies Proofs of Claim Until May 28
----------------------------------------------------------
The court-appointed trustee for Riente Hnos. S.A.C.I.'s
reorganization proceeding will be verifying creditors' proofs of
claim until May 28, 2008.
The trustee will present the validated claims in court as
individual reports on July 10, 2008. The National Commercial
Court of First Instance in San Isidro, 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 Riente Hnos. 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 Riente Hnos.'s
accounting and banking records will be submitted in court on
Sept. 12, 2008.
The debtor can be reached at:
Riente Hnos. S.A.C.I.
Vieytes 1039
Florida - (1602)
Gran Buenos Aires, Argentina
Telephone: (011) 4709-0088
Fax: (011) 4709-0740
RUBROS SA: Trustee to File General Report in Court on Oct. 10
-------------------------------------------------------------
The court-appointed trustee for Rubros S.A.'s bankruptcy
proceeding, will submit a general report containing an audit of
the firm's accounting and banking records in the National
Commercial Court of First Instance in Buenos Aires on
Oct. 10, 2008.
The trustee verified creditors' proofs of claim and presented
the validated claims in court as individual reports.
The trustee is also in charge of administering Rubros' assets
under court supervision and will take part in their disposal to
the extent established by law.
* FORMOSA PROVINCE: Moody's Lifts Junk Global Scale Rating to B3
----------------------------------------------------------------
Moody's Investors Service has raised the issuer ratings of the
Province of Formosa to B3 (global scale) and A3.ar (Argentina
national scale), from Ca and D.ar, respectively. The rating
outlook is stable. At the same time, Moody's assigned ratings
of B3 and A3.ar to the Province's 5% coupon U.S. dollars Co-
participation Tax Revenue Secured Notes due 2022. The newly
rated bonds are being issued as a restructuring of the bonds due
in 2005, which have been in default since 2003.
The issuer rating upgrade reflects the province's emergence from
default with acceptance by bondholders of its restructuring
proposal. In addition, the upgrade is based on the positive and
increasing operating balances reported by the province since
2003, with a similar trend in financing surpluses (before
principal payments). These surpluses have been achieved with
the aid of strong revenue growth, particularly in federal
transfers. Recent years' financial performance stands in marked
contrast to the substantial deficits and shrinking revenues
recorded in the years leading up to the 2001 crisis. The
upgrade also recognizes Formosa's high reliance on federal
revenue transfers and limited financial flexibility resulting
from the large share of personnel costs in its current
expenditures.
The ratings also reflect the application of Moody's Joint
Default Analysis rating methodology for regional and local
governments, and rely on two principal inputs: a baseline credit
assessment of 16 on a scale of 1 to 21, in which 1 represents
the lowest credit risk, and a low likelihood that the national
government would provide extraordinary support to prevent an
imminent default by the province.
"The assigned ratings reflect the province's agreement with
bondholders on a restructuring of the bonds that have been in
default," said Moody's Associate Analyst Patricio Esnaola. "The
terms and conditions of the new bonds, with a lower interest
rate, reduced principal amount and an extended maturity, reflect
a more affordable repayment program for the province. However,
there is exchange rate risk as interest and principal payments
will be paid in U.S. dollars."
Bondholders in possession of over 98% of the Series I and Series
II notes accepted the exchange program and the province
announced this result by means of a publication in the bulletin
of the Buenos Aires Stock Exchange.
Even though the province's debt burden has been decreasing since
2002 when related to total revenues, reported Mr. Esnaola, it is
still very high. In 2007, the province's debt rose to ARS3.43
billion, according to preliminary data, representing 151.5% of
operating revenues and 147.2% of total revenues.
In 2007, the national government assisted with ARS170 million in
the form of loans to Formosa under the Programa de Asistencia
Financiera (PAF), with a 6% fixed interest rate and a maturity
of 8 years, including a one-year grace period. This financial
aid represented nearly 60% of the principal payments the
province amortized that year.
"Under the PAF program the national government stands ready to
aid Argentina's provincial and local governments by refinancing
their debt as it matures, and the province of Formosa is a
member of this program," said Mr. Esnaola. The loans help the
provinces to cover their financial deficits and principal
payments.
The ratings are constrained by the operating environment for
regional and local governments in Argentina, which is
characterized by a GDP per capita that is high for a developing
country, very high GDP volatility, and a very low ranking on the
World Bank's Government Effectiveness Index, indicating a high
level of systemic risk. This environment is joined to an
institutional framework under which regional and local
governments carry significant responsibility for public services
while nearly all rely heavily on federal transfers, suggesting a
low level of fiscal flexibility in relation to revenue.
Moody's Argentina National Scale ratings are opinions of the
relative creditworthiness of issuers and issues within Argentina
and are not globally comparable. The Moody's Global Scale
rating allows investors to compare the province's
creditworthiness to all other issuers in the world. It
incorporates all Argentina-related risks, including the
potential volatility of the Argentine economy.
=============
B A H A M A S
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CREATOR CAPITAL: March 31 Balance Sheet Upside Down by US$4.3MM
---------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission, Creator Capital Limited's balance sheet as of
March 31, 2008, showed total assets of US$21,678 and total
liabilities of US$4,454,740, resulting in a shareholders deficit
of US$4,433,062.
For the three months ended March 31, 2008, Creator Capital
booked a net loss of US$27,432, widening by 16% the US$23,741
loss incurred in the same quarter in 2008. Revenue for the
first quarter of 2008 aggregated US$13,895, just about the same
compared to the US$13,365 earned in the same three-month period
last year.
Creator Capital says its revenue consists of fees generated from
the licensing of the Sky Play(R) PC-based amusement games to the
airline industry. Airline clients install the games on their
in-flight systems as part of the entertainment offered to
passengers.
The company admits that as at March 31, 2008, it had not yet
achieved profitable operations, with accumulated losses of
US$68,990,894 since its inception; it expects to incur further
losses in the development of its business, casting substantial
doubt about its ability to continue as a going concern.
According to Creator Capital, the company's ability to continue
as a going concern is dependent upon its ability to generate
future profitable operations and obtain necessary financing to
meet its obligations and repay its liabilities arising from
normal business operations when they come due. Management has
no formal plan in place to address this concern but considers
that the company will be able to obtain additional funds by
equity financing or related party advances, however there is no
assurance of additional funding being available, the SEC filing
states.
Creator Capital Limited is a Bermuda exempted company, which in
June 1997, changed its name from Sky Games International Ltd. to
Interactive Entertainment Limited and on Sept. 27, 2000, changed
its name to Creator Capital Limited. The company is publicly
listed in the United States of America on the Pink Sheets.
Creator Capital is engaged in providing in-flight gaming and
entertainment software and services by developing, implementing
and operating or licensing computerized video gaming and other
entertainment software on, but not limited to the aircraft of
international commercial air carriers. Gaming software is
marketed using the name Sky Games(R) and the entertainment
software is marketed using the name Sky Play(R).
TEEKAY CORP: Net Income Slides by 80% to US$15.2 Mil. in 1Q 2008
----------------------------------------------------------------
Teekay Corporation reported net income of US$15.2 million for
the quarter ended March 31, 2008, compared to net income of
US$76.4 million the same period of 2007.
The results for the quarters ended March 31, 2008, and 2007
included a number of specific items (predominantly unrealized
losses relating to foreign exchange translation and interest
rate swaps) that had the net effect of decreasing net income by
US$45.6 million and by US$7.4 million, respectively.
Net revenues for the first quarter of 2008 increased to
US$567.7 million from US$459.5 million for the same period in
2007, and income from vessel operations decreased to
US$110.9 million from US$125.5 million.
Teekay LNG Equity Offering
On April 23, 2008, Teekay LNG Partners L.P. (Teekay LNG)
completed a follow-on public offering of 5.0 million common
units at a price of US$28.75 per unit, for gross proceeds of
US$143.75 million. Subsequently, on May 8, 2008, the
underwriters exercised 50 percent, or 375,000 common units, of
their 30-day over-allotment option resulting in an additional
US$10.8 million in gross proceeds to Teekay LNG. The
underwriters can exercise the remaining amount of their over-
allotment option until May 23, 2008.
Concurrent with the public offering, Teekay acquired 1.74
million common units of Teekay LNG at the same public offering
price for a total cost of US$50.0 million. As a result of the
above transactions, Teekay LNG has raised gross equity proceeds
of US$208.7 million (including the general partner's
proportionate capital contribution), and Teekay's ownership of
Teekay LNG has been reduced from 63.7 percent to 57.7 percent
(including its 2 percent general partner interest).
The total net proceeds from the offering of approximately
US$202.5 million will be used to reduce amounts outstanding
under Teekay LNG's revolving credit facilities which were, and
will be used to fund the acquisitions of the Kenai and RasGas 3
LNG vessels.
Share Repurchase Program
Since Feb. 27, 2008, the previous date the Company reported the
status of its share repurchase program, the company has
repurchased 499,200 shares of its common stock at an average
price of US$41.09 per share, resulting in the completion of its
existing share repurchase authorization.
At March 31, 2008, the company had 72.3 million common shares
outstanding.
About Teekay Corp.
Headquartered in Nassau, Bahamas, Teekay Corporation (NYSE: TK)
-- http://www.teekay.com/-- transports more than 10 percent of
the world's seaborne oil, has built a significant presence in
the liquefied natural gas shipping sector through its publicly-
listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), and is
further growing its operations in the offshore production,
storage and transportation sector through its publicly-listed
subsidiaries, Teekay Offshore Partners L.P. (NYSE: TOO) and
Teekay Petrojarl ASA (OSE: TPO). With a fleet of over 185
vessels, offices in 17 countries and 6,300 seagoing and shore-
based employees, Teekay provides a comprehensive set of marine
services to the world's leading oil and gas companies, helping
them seamlessly link their upstream energy production to their
downstream processing operations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Moody's Investors Service affirmed its debt
ratings of Teekay Corporation -- Corporate Family of Ba2, senior
unsecured of Ba3 and speculative grade liquidity rating of
SGL-2. Moody's changed the rating outlook to stable from
negative.
=============
B E R M U D A
=============
ASPEN INSURANCE: Buys Back Shares From Candover for US$100 Mil.
---------------------------------------------------------------
Aspen Insurance Holdings Ltd. has agreed to repurchase
approximately 4.1 million of its ordinary shares from Candover
Partners Limited, one of its founding shareholders, and a
trustee to a Candover employee trust. The ordinary shares are
to be repurchased by Aspen Insurance for approximately
US$100 million.
The repurchase was executed as part of the insurance company's
US$300 million share repurchase program. The ordinary shares
will be retired once purchased.
In a separate transaction, the company also announced that
Candover Partners Limited has agreed to sell approximately
2,000,000 ordinary shares of Aspen Insurance in an underwritten
public offering. Following the completion of the offering and
the share repurchase, Candover Partners Limited will no longer
own any shares of the company.
Credit Suisse is acting as the sole book-running manager for the
public offering. Credit Suisse proposes to offer Aspen's
ordinary shares from time to time for sale in one or more
transactions on the NYSE, in the over-the-counter market,
through negotiated transactions or otherwise at market prices
prevailing at the time of sale, at prices related to prevailing
market prices or at negotiated prices.
Aspen Insurance will not receive any proceeds from the sale of
ordinary shares by Candover Partners Limited in the public
offering. The public offering and the share repurchase are not
conditional on one another.
"We are pleased to repurchase US$100 million in Aspen stock from
Candover, demonstrating our commitment to active capital
management which includes buying back shares" said Aspen
Insurance Chief Executive Officer, Chris O'Kane. "Candover has
been a great owner and I appreciate the support they have given
us since our inception."
The ordinary shares in the public offering are being sold
pursuant to Aspen's effective shelf registration statement
previously filed with the Securities and Exchange Commission.
A prospectus supplement relating to the ordinary shares offering
will be filed with the Securities Exchange Commission. When
available, a written prospectus for the offering meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended, may be obtained:
Credit Suisse Securities (USA) LLC
Prospectus Department,
1 Madison Avenue, New York, New York 10010
Tel. Number: (800) 221-1037
Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings
Limited (NYSE: AHL) -- http://www.aspen.bm-- conducts insurance
and reinsurance business through its wholly owned subsidiaries
in various domestic and global markets including Bermuda,
France, Ireland, the United States, the United Kingdom, and
Switzerland. As of year ended Dec. 31, 2007, the company wrote
US$1,818.5 million in gross premiums.
* * *
Aspen Insurance Holdings Limited still carries Moody's Investors
Services 'Ba1' Preferred Stock rating with a stable outlook
assigned on Dec. 21, 2005.
DSG TRADING: Sets Final Shareholders Meeting for June 16
--------------------------------------------------------
DSG Trading Limited will hold its final shareholders meeting on
June 16, 2008, at 9:30 a.m. at Argonaut Limited, Argonaut House,
5 Park Road, Hamilton HM O9, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
DSG Trading's shareholders agreed to place the company into
voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
DUAL-STRATEGY GUARANTEED: Final Shareholders Meeting on June 17
---------------------------------------------------------------
Dual-Strategy Guaranteed Fund Limited will hold its final
general meeting on June 17, 2008, at 9:30 a.m. at Argonaut
Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
Dual-Strategy Guaranteed's shareholders agreed to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
PRIMUS LIMITED: Proofs of Claim Filing Deadline Is May 30
---------------------------------------------------------
Primus Limited's creditors are given until May 30, 2008, to
prove their claims to Nigel J.S. Chatterjee, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Primus's shareholders agreed on May 9, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Nigel J.S. Chatterjee
PricewaterhouseCoopers Advisory Limited
P.O. Box HM 1171, Hamilton HM EX
Bermuda
SULA AVIATION: Proofs of Claim Filing Deadline Is May 28
--------------------------------------------------------
Sula Aviation Limited's creditors are given until May 28, 2008,
to prove their claims to Robin J. Mayor, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Sula Aviation's shareholders agreed on May 13, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
SULA AVIATION: Sets Final Shareholders Meeting for June 19
----------------------------------------------------------
Sula Aviation Limited will hold its final general meeting on
June 19, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
Sula Aviation's shareholders agreed on May 13, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
TWENTY FIRST: Court to Hear Wind-Up Petition on June 20
-------------------------------------------------------
The Supreme Court of Bermuda will hear a wind-up petition for
Twenty First Century Holdings Ltd. on June 20, 2008, at 2:30
p.m.
Twenty First and Aaliya Mubarak filed the petition for the
winding up on April 30, 2008.
Any creditor or contributory of Twenty First who want to support
or oppose the making of an order on the petition may appear
during the hearing. He or she may let a counsel represent him
at the hearing. Those interested must send by post a notice in
writing of their intention to attend the meeting to the
attorneys to the petitioners:
Attride-Stirling & Woloniecki
Crawford House
50 Cedar Avenue
Hamilton HM11
Bermuda
Fax No: 441 295 6566:
The notice must state the name and address of the person, or, if
a firm, the name and address of the firm, and must be signed by
the person or firm, or his or their attorney (if any), and must
be served, or if posted, must be sent by post in sufficient time
to reach the above-named attorneys not later than 4:00 p.m. on
June 19, 2008.
A copy of the petition will be furnished to any creditor or
contributory on the payment of the regulated charge for the
copy, which is available at Attride-Stirling & Woloniecki.
TYCO INTERNATIONAL: Extends Consent & Exchange Offer Expiration
---------------------------------------------------------------
Tyco International Ltd. will extend the previously announced
consent solicitations and exchange offers for each series of
outstanding notes issued under the company's 1998 and 2003
indentures. The company previously announced that it had
received consents from the holders of a majority in principal
amount of each such series of notes.
As a result of the receipt of the requisite consents, and based
on the waiver of any alleged defaults or events of default that
may have arisen prior to April 11, 2008 contained therein, the
company has taken the necessary steps to dismiss the proceeding
entitled The Bank of New York vs. Tyco International Group S.A.
pending in the United States District Court for the Southern
District of New York. On April 30, 2008, the Court entered an
order dismissing that action with prejudice. As a result, the
company expects to complete the consent solicitations and
exchange offers in early June 2008.
In accordance with the terms of the Offer Documents, delivered
consents may no longer be revoked and tendered notes may no
longer be withdrawn, unless the exchange offers and the consent
solicitations are terminated in accordance with the Offer
Documents. As the company expects all conditions to the
consummation of the transactions to be met at the end of May
2008, the company and TIFSA are extending the Consent Date and
Expiration Date for noteholders to submit consents and tender
applicable notes for exchange. The new Consent Date and the new
Expiration Date are 5:00 p.m. New York City time, on June 2,
2008, subject to further extensions.
Consent Solicitation Results as of 2:00 p.m. New York time,
May 12, 2008:
Consents Received Notes for Exchange
--------------------- ----------------- --------------
7.0% notes due 2028 99% 96%
6.875% notes due 2029 98% 97%
6.0% notes due 2013 98% Not Applicable
6.375% notes due 2011 98% Not Applicable
6.75% notes due 2011 97% Not Applicable
6.125% notes due 2009 95% Not Applicable
6.125% notes due 2008 89% Not Applicable
Headquartered in Sao Paulo, Brazil, Marfrig Frigorificos e
Comercio de Alimentos SA (Bovespa's Novo Mercado: MRFG3) --
http://www.marfrig.com.br/ir-- is one of the largest beef
processing companies in Brazil. With processing plants in
Brazil, Argentina and Uruguay, Marfrig processes, prepares
packages and delivers fresh, chilled and processed beef products
to customers in Brazil and abroad, with approximately 50% of its
sales derived from exports. Along with its beef products, the
company also delivers additional food products that it imports
or acquires in the local market.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 19, 2007, Standard & Poor's Ratings Services has revised
the outlook on Brazil-based meat processing company Marfrig
Frigorificos e Comercio de Alimentos S.A. to negative from
stable. At the same time, S&P affirmed its 'B+' corporate
credit rating on the company and its US$375 million notes due
2016. Pro forma fiscal 2007, S&P expects the company to report
about US$800 million of total debt.
TYCO INTERNATIONAL: CEO Will Present at Electrical Conference
-------------------------------------------------------------
Tyco International Ltd. Chairperson and Chief Executive Officer,
Ed Breen will speak at the Electrical Products Group Annual
Conference in Longboat Key, Florida on May 21, 2008, at
10:00 a.m. EDT.
A live webcast of the presentation and supporting materials
will be available on the company's Web site at
http://investors.tyco.com
Based in Pembroke, Bermuda, Tyco International Ltd. (NYSE: TYC)
-- http://www.tyco.com/-- provides security, fire protection
and detection, valves and controls, and other industrial
products and services to customers in four business segments:
Electronics, Fire & Security, Healthcare, and Engineered
Products & Services. With 2007 revenue of US$18 billion, Tyco
employs approximately 118,000 people worldwide. In Latin
America, Tyco has presence in Argentina, Brazil, Chile, Costa
Rica, Ecuador, Honduras, and the Bahamas.
Effective June 29, 2007, Tyco International Ltd. completed the
spin-offs of Covidien and Tyco Electronics, formerly its
Healthcare and Electronics businesses, respectively, into
separate, publicly traded companies in the form of a
distribution to Tyco shareholders.
* * *
As reported in the Troubled Company Reporter on Dec. 21, 2007,
in its annual report for the year ended Sept. 28, 2007, Tyco
said that on Nov. 8, 2007, The Bank of New York delivered to the
company a notice of events of default. The notice claims that
the actions taken by the company in connection with its
separation into three public entities constitute events of
default under certain indentures.
===========
B R A Z I L
===========
BANCO DO BRASIL: Net Profit Increases to BRL2.35 Bil. in 1Q 2008
----------------------------------------------------------------
Banco do Brasil SA's net profit increased 66.6% to BRL2.35
billion in the first quarter 2008, compared to the first quarter
2007, Business News Americas reports.
According to BNamericas, BRL789 million in one-time gains helped
Banco do Brasil to increase its net profit in the first quarter
2008.
Banco do Brasil's Chief Financial Officer Aldo Luiz Mendes told
BNamericas that the bank earned:
-- BRL305 million from the sale of shares in Visa,
-- BRL302 million from tax deductions,
-- BRL241 million from revaluation of consolidated
shares, and
-- BRL67.0 million from assignment of loans.
Banco do Brasil had one-time costs of BRL82.0 million in legal
provisions for court cases against past government economic
plans, BNamericas says, citing Mr. Mendes. The bank had BRL45.0
million in non-recurring taxes, Mr. Mendes added.
BNamericas relates that Banco do Brasil's return on equity
increased to 43.5% in first quarter 2008, from 29.4% in the same
quarter last year. Its recurring return on equity decreased to
27.6% from 30.7%. Banco do Brasil previously projected return
on equity of around 25% for 2008.
Banco do Brasil's net interest income increased 10.2% to
BRL5.49 billion in the first quarter 2008, from the first
quarter 2007, BNamericas notes. The bank's service fee income
rose 8.04% to BRL2.57 billion. Banco do Brasil expects service
fee income to increase 8% in 2008, compared to 2007, with more
fees collected from credit cards, asset management, and
insurance offsetting restrictions placed by the central bank.
Banco do Brasil's assets increased 22.0% to BRL393 billion in
the first quarter 2008, compared to the first quarter 2007,
BNamericas states.
Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.
BANCO DO BRASIL: May Issue Bonds in Int'l Capital Markets
---------------------------------------------------------
Banco do Brasil SA's Chief Financial Officer Aldo Luiz Mendes
told the press that the bank could issue bonds in international
capital markets in the coming months.
Banco do Brasil was "buoyed by the recent investment grade
rating from Standard & Poor's," reporters say, citing Mr.
Mendes. He told Business News Americas, "Right now is a good
time with the investment grade rating."
BNamericas relates that S&P upgraded Brazil's debt rating to
investment grade BBB- with a stable outlook this month. The
ratings agency assigned Banco do Brasil the same rating.
With the investment grade rating, Banco do Brasil could reissue
older debts at a lower cost, Mr. Mendes told BNamericas.
Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.
BANCO DO BRASIL: Units' Net Profit Drops to BRL133MM in 1st Qtr.
----------------------------------------------------------------
Net profit Banco do Brasil SA's insurance, private pension, and
savings bond businesses declined 5.62% to BRL133 million in the
first quarter 2008, compared to the first quarter 2007.
Business News Americas relates that Banco do Brasil's insurance,
private pension, and savings bond businesses -- including
service revenues from commissions, fees and asset management --
added over BRL281 million to the bank's "bottom line," which
increased 66.6% to BRL2.35 billion, including BRL789 million in
one-time gains, in the first quarter 2008, from the first
quarter 2007.
According to BNamericas, Banco do Brasil's consolidated
operating income from insurance, private pensions and savings
bonds decreased 9.00% to BRL190 million in the first quarter
2008, from the first quarter 2007. Financial income rose 3.04%
to BRL140 million.
BNamericas notes that consolidated combined ratio improved to
89.0% in this year's first quarter, compared to 89.9% in last
year's first quarter. Combined ratio for life and production
and consumption insurance went to 82.6% from 88.8%. Combined
ratio for auto declined to 98.3% from 84.8% on higher claims and
the combined ratio for health rose to 92.6% from 85.4%.
The report says that Banco do Brasil's first quarter 2008
profits from insurance -- including auto, health and life --
increased 6.45% to BRL70.1 million in the first quarter 2008,
compared to the same period last year. Profits from private
pension plans declined 13.7% to BRL41.2 million. Profits from
savings bonds decreased by 20.3% to BRL22.3 million.
BNamericas states that claims paid increased 4.25% to
BRL266 million in the first quarter 2008, from the first quarter
2007. Technical provisions rose 29.4% to BRL1.07 billion in
March 2008, compared to March 2007.
According to the report, insurance premiums rose 0.90% to
BRL566 million in the first quarter 2008, from the first quarter
2007. Banco do Brasil's car insurer Brasilveaculos increased
premiums by 4.27% to BRL219 million and increased the number of
vehicles insured by 6.99% to 750,000 by March 2008, compared to
March 2007. The bank's health insurer Brasilsaude increased
premiums by 11.0% to BRL34.5 million. Life and production and
consumption insurer Alianca do Brasil;s premiums declined 2.28%
to BRL313 million. Contributions to private pension provider
Brasilprev increased 24.5% to BRL862 mllion as clients grew
17.0% to 2.14 million. Assets under management at Brasilprev
rose 29.1% to BRL17.0 billion. Contributions to savings bond
firm Brasilcap rose 7.07% to BRL478 million. The firm held its
position as market leader with a 22.6% share.
Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.
BANCO DO BRASIL: Wants to Boost Car Loans by Up to BRL7 Billion
---------------------------------------------------------------
According to Banco do Brasil SA's Chief Financial Officer Aldo
Luiz Mendes, the bank is aiming to have up to BRL7 billion in
its car loan portfolio by year-end, compared to 2007.
Mr. Mendes commented to Business News Americas, "It's an
aggressive goal, doubling the portfolio over the course of the
year. Car loans are one of our focuses because our market share
is still small."
BNamericas relates that Banco do Brasil increased car loans by
175% to BRL3.54 billion in the first quarter 2008, from the
first quarter 2007. Its total loans to individuals grew 47.5%
to BRL38.5 billion. In the retail loan portfolio, credit card
loans rose 101% to BRL6.43 billion and payroll loans increased
36.8% to BRL12.8 billion.
Mr. Mendes told BNamericas that Banco do Brasil's entire loan
book increased 23.1% to BRL173 billion in March 2008, from March
2007. Banco do Brasil's guidance is for 25% lending growth this
year, Mr. Mendes added.
Banco do Brasil's consumer loans could increase up to 35%,
BNamericas says, citing the bank's Investor Relations Officer
Marco Geovanne. Loans to businesses will rise up to 30% and
loans to agribusinesses will grow 20%, Mr. Geovanne added.
Mr. Mendes told BNamericas that Banco do Brasil will launch
housing loans in June 2008. The bank will build a portfolio of
at least BRL1 billion by year-end, Mr. Mendes added.
BNamericas relates that Banco do Brasil's commercial loans rose
21.8% to BRL67.2 billion in the 12 months ended March 2008,
compared to the previous period. Its loans to small and medium-
sized enterprises increased 32.0% to BRL25.7 billion. Its
wholesale loans grew 16.2% to BRL41.5 billion. Its loans to
agribusinesses increased 20.8% to BRL56.5 billion in the first
quarter 2008, compared to the same period last year.
Banco do Brasil's allowances for loan losses roe 7.20% to
BRL1.53 billion in March 2008, compared to March 2007. It
decreased as a percentage of total lending to 3.60% from 4.80%.
The bank's non-performing loan ratio improved to 4.40% from
4.30%, BNamericas states.
Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.
BR MALLS: 1Q 2008 Adjusted EBITDA Up 112% to RBRL47.4 Million
-------------------------------------------------------------
BR Malls Participacoes S.A. has released its first quarter 2008
results.
Highlights:
-- In the first quarter of 2008, gross revenue increased
117.6% year-on-year to RBRL71.8 million, while the six
malls originally in the portfolio on Jan. 1, 2007,
recorded organic gross revenue growth of 18.1%;
-- Consolidated NOI of the 31 malls in BR Malls Participacoes
portfolio totaled RBRL56 million in the first three months
of 2008, 147.5% higher than recorded in first quarter
2007, while the NOI margin improved from 83.7% to 85.8% in
the same period;
-- Also in the first quarter, Same Property NOI increased
28.2% year-on-year, primarily fueled by growth in the
acquired malls, which totaled 37%. Growth of the original
malls reached 18.2%;
-- Adjusted first quarter 2008 EBITDA stood at RBRL47.4
million, an increase of 111.8% over the same three months
in 2007. The adjusted EBITDA margin also improved
substantially, climbing from 68.2% to 71.2% in the same
period;
-- Funds from Operations (FFO) totaled RBRL19.4 million in
first quarter 2008, year-on-year growth of 160.7%. The
FFO margin increased from 24% to 29.2%;
-- In the first quarter 2008, BR Malls acquired an additional
0.4% of Shopping Mueller, increasing BR Malls' stake in
this mall to 10.4%. The company also acquired an initial
35% interest in Shopping Osasco;
-- In February, the company signed a management agreement
with Villa Daslu, in Sao Paulo, which includes more than
70 stores and several renowned international brands such
as Gucci, Prada, Dior and others;
-- BR Malls also rolled out the Oracle system in Villa Daslu.
Currently, two malls and its headquarters are totally
integrated and the company continues to roll-out the
system in its other malls;
-- Also in first quarter 2008, the company began providing
management and leasing services for Shopping Recreio, in
Rio de Janeiro;
-- In March, BR Malls raised RBRL470 million from a CRI issue
(receivable certificates) with Banco Itau;
-- The company continues with a substantial cash position
reaching RBRL993.6 million and a comfortable debt profile
in which 98.5% of its total debt matures in more than five
years;
-- During the quarter, the company's commercial team
negotiated around 80 leasing contracts in shopping malls
currently in its portfolio and 40 in the company's
expansions/greenfield projects, which encompasses
approximately 14,000 square meters of Gross Leasable Area.
To read the full earnings release, access the company's Web site
at http://www.brmalls.com.br/ir
Headquartered in Rio de Janeiro, Brazil, BR Malls is the largest
integrated shopping mall company in Brazil with a portfolio of
30 malls, representing 894.3 thousand m2 in total Gross Leasable
Area (GLA) and 372.6 thousand square meters in owned GLA. BR
Malls is also Brazil's largest shopping mall service provider,
managing and leasing 29 malls.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Standard & Poor's Ratings Services assigned its
'BB-' rating to BR Malls International Finance Ltd.'s
forthcoming perpetual notes. It is a wholly owned subsidiary of
Brazil-based shopping mall company BR Malls Participacoes S.A.
(BR Malls; BB-/Stable/--). BR Malls and its direct subsidiaries
unconditionally guarantee the perpetual notes.
BANCO NACIONAL: Will Lend BRL210 Billion to Industry & Services
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA will
lend BRL210 billion to industry and services from 2008-10 to
support the Brazilian government's new production development
policy.
Business News Americas relates that the total amount could go
beyond BRL300 billion when added up with financing for
infrastructure projects under the federal government's growth
acceleration plan and resources for the science and technology
ministry's innovation program. Banco Nacional's President
Luciano Coutinho commented, "The current PAC [growth
acceleration plan] portfolio in BNDES [Banco Nacional] comprises
190 projects."
According to BNamericas, Banco Nacional will be the main agent
of the production development policy. The bank has adopted a
series of measures to support it. Spreads have been lessened,
as well as the cost of funds for buying capital equipment. The
deadlines of Finame credit lines for industries have been
extended to 10 years from five years. Under Finame, Banco
Nacional channels funding through government-run and private
sector banks for the production and sale of machinery and
equipment that are made in Brazil.
BNamericas notes that Banco Nacional decreased the average basic
spread to 1.1% from 1.4%. Lending charges will be cut to 0.5%
from 0.8%.
The report says that the cost of funding capital goods, with a
current basic spread of 1.5% a year, will be decreased to 0.9% a
year, with 100% financing.
To support investment in innovation, Banco Nacional will allot
BRL6 billion in funding to the the sector from 2008-10. Loans
for technological innovation will have a fixed rate of 4.5% a
year. Banco Nacional also "adopted specific measures for the
northeast, with the structuring of an equity investment fund for
companies in the region." The fund will have assets of
BRL300 million from Banco Nacional, Banco do Brasil, and Banco
do Nordeste, BNamericas states.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and May
2007.
EMI GROUP: Plans to Slash Recorded Music Employees to 2,000
-----------------------------------------------------------
EMI Group Ltd. Chairman Guy Hands told EMI senior directors
that they need to decrease the number of recorded music division
employees to around 2,000 from 4,500, Ben Harrington writes for
the Telegraph.
As reported in the TCR-Europe on January 16, 2008, EMI disclosed
that its restructuring is expected to lead a worldwide headcount
reduction within the group of between 1,500 and 2,000.
According to people familiar with the situation, Mr. Hands is
planning to cut more jobs at EMI because the company still has
more workers but generate less revenues than Warner Music and
Universal Records, the Telegraph relates.
About EMI Group plc
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries, with
licensees in a further 20 and employs around 5,500 people. The
group has operations in Brazil and China among others. In
August 2007 EMI was acquired by private equity firm Terra Firma.
At March 31, 2007, EMI Group's consolidated balance sheet
revealed GBP1.5 billion in total assets, GBP2.65 billion in
total liabilities resulting to GBP1.15 billion in shareholders'
deficit.
JBS SA: Incurs BRL6.6 Million Net Loss in Quarter Ended March 31
----------------------------------------------------------------
JBS S.A. has posted a net loss of BRL6.6 million on net revenues
of BRL1.10 billion for the three months ended March 31, 2008,
compared to net income of BRL10.6 million on net revenues of
BRL1.02 billion for the same period in 2007.
Tasman Group Acquisition
On May 2, 2008, JBS confirmed acquisition and purchase of the
Tasman Group in Australia. With the addition of this
acquisition, JBS's Australian operations now have more than
5,000 employees and 15 facilities, including slaughtering
facilities for cattle and small animals (sheep and calves) with
a capacity of 8,500 head/day and 16,500 small animals/day.
American Beef Reopening Tto South Korea
On April 18, 2008, South Korea announced that it would again
begin to accept beef imports from the United States. With its
strong production base it the U.S., JBS is in a good position to
supply this market. Up until 2003, South Korea was one of the
principal strategic markets for American beef exports.
JBS Share Capital Increase
As approved at the General Shareholders' Meeting held April 11,
2008, JBS will increase its share capital from BRL$1.95 billion
to BRL$4.49 billion. The period from April 11 through May 13,
2008, was set aside to exercise preferential buying rights. The
details concerning this operation can be found in the
Subscription of New Shares document, published April, 11, 2008,
on the Company's IR website.
Ibovespa & The IBrX-50 Listing
After just one year as a listed company, JBS has been included
in the Ibovespa index, considered the Brazilian stock market's
most important average performance indicator. The company has
also been included in the IBrX-50 index, which measures the
total return on a theoretical portfolio comprising 50 stocks
selected from among the Bovespa's most actively traded
securities in terms of liquidity. Both portfolios are in force
between May and August of 2008.
About JBS
Headquartered in Sao Paulo, Brazil, JBS SA --
http://www.jbs.com.br/ir/-- is a public company with its shares
listed on Bovespa's Novo Mercado under the symbol JBSS3. The
company operates 23 plants in Brazil and six plants in Argentina
in addition to its operations in Australia and the United States
resulting from last year's purchase of Swift & Company. In the
12 months ending September 2007, JBS generated pro forma net
revenue of US$11.9 billion and processed nine million head of
cattle.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 7, 2008,
Moody's Investors Service's ratings for JBS S.A., including its
B1 local currency corporate family rating and B1 senior
unsecured bond rating, remained under review for possible
downgrade following the company's announced agreement to acquire
National Beef Packing Company, LLC; Smithfield Beef Group Inc.,
including full ownership of its subsidiary, Five Rivers Ranch
Cattle Feeding; and Tasman Group for a total consideration of
approximately US$1.8 billion.
MARFRIG FRIGORIFICOS: Net Income Down to BRL25.1 Mil. in 1Q 2008
----------------------------------------------------------------
Marfrig Frigorificos e Comercio de Alimentos S.A. released its
results for the first quarter of 2008.
Highlights of the Period:
-- Gross revenue totaled BRL1,181 million, 60.7% up on first
quarter 2007 (BRL734.7 million) and 2.2% down on fourth
quarter 2007 (BRL1,207.8 million).
-- Net revenue reached BRL1,067.1 million, 60.9% up on the
same period the year before (BRL663.2 million) and 2.1%
down on the previous quarter. Marfrig exports to Europe
kept its normal level through units in Uruguay and
Argentina.
-- Gross profit totaled BRL215.2 million (gross margin of
20.2%), 52.4% up on the BRL141.3 million recorded in
first quarter 2007 (gross margin of 21.3%) and 0.7% up on
the BRL213.7 million recorded in fourth quarter 2007
(gross margin of 19.6%).
-- Operating expenses (selling, general and administrative
expenses) came to BRL103.4 million, 37.9% and 2.5% up
on first quarter 2007 (BRL74.9 million) and fourth quarter
2007 (BRL100.9 million), respectively. Operating expenses
as a percentage of net revenue stood at 9.7% in first
quarter 2008, versus 9.3% in fourth quarter 2007 and 11.3%
in first quarter 2007.
-- EBITDA totaled BRL127.3 million, 71.8% up on the BRL74.1
million recorded in first quarter 2007 and 3.2% up on the
BRL123.3 million in fourth quarter 2007.
-- EBITDA margin reached 11.9%, versus 11.2% in first quarter
2007 and 11.3% in fourth quarter 2007.
-- Pro-forma net income came to BRL52.9 million, 172.6% higher
than in first quarter 2007 (BRL19.4 million) and 21.4%
lower than in fourth quarter 2007 (BRL67.3 million).
-- Net income totaled BRL25.1 million, 29.1% up on first
quarter 2007 (BRL19.4 million) and 4.8% down on fourth
quarter 2007 (BRL26.3 million).
The complete version of the release is available at the
company's Web site at http://www.marfrig.com.br/ir
Headquartered in Sao Paulo, Brazil, Marfrig Frigorificos e
Comercio de Alimentos SA (Bovespa's Novo Mercado: MRFG3) --
http://www.marfrig.com.br/ir-- is one of the largest beef
processing companies in Brazil. With processing plants in
Brazil, Argentina and Uruguay, Marfrig processes, prepares
packages and delivers fresh, chilled and processed beef products
to customers in Brazil and abroad, with approximately 50% of its
sales derived from exports. Along with its beef products, the
company also delivers additional food products that it imports
or acquires in the local market.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 19, 2007, Standard & Poor's Ratings Services has revised
the outlook on Brazil-based meat processing company Marfrig
Frigorificos e Comercio de Alimentos S.A. to negative from
stable. At the same time, S&P affirmed its 'B+' corporate
credit rating on the company and its US$375 million notes due
2016. Pro forma fiscal 2007, S&P expects the company to report
about US$800 million of total debt.
NIELSEN COMPANY: Posts US$82 Million Net Loss in 1st Qtr. 2008
--------------------------------------------------------------
The Nielsen Company B.V. reported financial results for the
quarter ended March 31, 2008.
Reported revenues for the three months ended March 31, 2008,
were US$1,214 million, an increase of 13% over the revenues of
US$1,072 million for the three months ended March 31, 2007.
Excluding the impact of currency fluctuations, revenues for the
quarter increased 8%. For the quarter ended March 31, 2008, the
company reported a net loss US$82 million compared to net loss
of US$74 million for the quarter ended March 31, 2007.
Reported operating income for the three months ended March 31,
2008 was US$115 million compared to US$56 million for the three
months ended March 31, 2007. The quarterly results were
negatively impacted by US$7 million, and US$27 million,
respectively, for certain items such as restructuring costs and
compensation agreements. Adjusting for these items, operating
income, on a constant currency basis, increased 41%.
As of March 31, 2008, total debt was US$8,527 million, and cash
balances were US$354 million. Capital expenditures were US$69
million for the three months ended March 31, 2008, compared with
US$49 million for the three months period ended March 31, 2007.
About The Nielsen Company
The Nielsen Company B.V. -- http://www.nielsen.com/-- is a
global information and media company with recognized brands in
marketing information (ACNielsen), media information (Nielsen
Media Research), online intelligence (NetRatings and
BuzzMetrics), trade shows and business publications (Billboard,
The Hollywood Reporter, Adweek). The privately held company is
active in more than 100 countries, with headquarters in Haarlem,
the Netherlands, and New York, USA. The company has operations
in Brazil.
* * *
The TCR reported on May 5, 2008, that Standard & Poor's Ratings
Services revised its outlook on the 'B' corporate credit rating
of The Nielsen Co. B.V. to stable from negative. According to
Standard & Poor's credit analyst Tulip Lim, "[t]he outlook
change reflects the company's good operating performance and
progress in its cost-cutting initiatives."
As reported on April 25, 2008, Fitch Ratings assigned The
Nielsen Company a Long-term Issuer Default rating of 'B' with a
Stable Outlook, and a Short-term IDR of 'B.' Fitch has also
assigned the group's senior secured bank debt a 'BB-' rating.
NIELSEN COMPANY: Integrates Nielsen NRG with BASES Organization
---------------------------------------------------------------
As part of its ongoing "one Nielsen" initiative to provide
clients with integrated solutions, The Nielsen Company disclosed
Tuesday announced that Nielsen NRG, the leading market research
and strategic consulting firm serving the film and home
entertainment industries, has become part of Nielsen's BASES
organization.
"This initiative once again underscores Nielsen's distinct
ability to reach across the entire organization to effectively
serve clients' changing needs," said Bruce Dennler, President of
Nielsen Entertainment. "By combining NRG's unique vertical
industry knowledge with BASES' innovative techniques and
approaches, we will help Film and Home Entertainment clients
better identify, understand and capitalize on future
opportunities."
BASES is the world's leading provider of services designed to
help clients grow through innovation. These services include
new product optimization, marketing plan simulation capabilities
and sales forecasting. These services are designed to help
clients make intelligent decisions about launching new products
in a number of industries, including consumer packaged goods,
pharmaceuticals, durable goods and consumer services.
"As a part of BASES, Nielsen NRG will now be able to tap into
BASES' expertise in global product development, operations and
analytics to help drive future innovation," said Tim Willke,
President of BASES. "Many of BASES analytical tools have direct
application to NRG's business, and BASES' general expertise in
analytically based consulting will help NRG create new services
to address unmet and emerging client needs within the
entertainment industry."
NRG also will take advantage of Nielsen's anticipated
acquisition of IAG Research, which offers insight into how
engaged viewers are with commercials and promos.
As part of the transition, Marc Lagrois will assume the new
leadership role at NRG. Howard Ballon, President of Nielsen
Film and Home Entertainment, will work with Lagrois on the
transition before leaving the company to pursue other
opportunities.
Lagrois is currently Senior Vice President, Product and Business
Development for NRG. Prior to joining NRG in 2007, Marc led the
BASES Asia-Pacific region, where he successfully expanded the
business over a five year period beginning in 2002.
Lagrois will report to Tim Willke, Global President of BASES,
effective immediately. Although part of the BASES organization,
NRG will also continue to collaborate closely with the rest of
the Nielsen Entertainment group, including EDI, TV/CPG,
VideoScan and other measurement services.
About The Nielsen Company
The Nielsen Company B.V. -- http://www.nielsen.com/-- is a
global information and media company with recognized brands in
marketing information (ACNielsen), media information (Nielsen
Media Research), online intelligence (NetRatings and
BuzzMetrics), trade shows and business publications (Billboard,
The Hollywood Reporter, Adweek). The privately held company is
active in more than 100 countries, with headquarters in Haarlem,
the Netherlands, and New York, USA. The company has operations
in Brazil.
* * *
The TCR reported on May 5, 2008, that Standard & Poor's Ratings
Services revised its outlook on the 'B' corporate credit rating
of The Nielsen Co. B.V. to stable from negative. According to
Standard & Poor's credit analyst Tulip Lim, "[t]he outlook
change reflects the company's good operating performance and
progress in its cost-cutting initiatives."
As reported on April 25, 2008, Fitch Ratings assigned The
Nielsen Company a Long-term Issuer Default rating of 'B' with a
Stable Outlook, and a Short-term IDR of 'B.' Fitch has also
assigned the group's senior secured bank debt a 'BB-' rating.
NIELSEN COMPANY: Product Placements Up 6% in First Quarter 2008
---------------------------------------------------------------
The Nielsen Company reported that product placements for the
first quarter of 2008 rose 6% on primetime programming for the
11 measured networks on broadcast (ABC, CBS, CW, FOX, MNT, NBC)
and cable television (A&E, Bravo, HGTV, MTV, TLC). Broadcast
television placements rose 39%, while cable television was
essentially flat at -1%.
There were 117,976 brand occurrences on cable and broadcast
networks in the first three months of the year, according to
Nielsen Product Placement Service. The most prevalent placement
type on broadcast television was "foreground," which represented
35% of all product placements. On cable television, "wardrobe"
placements were most common, accounting for 32% of all
placements.
Broadcast Television Product Placements
Top Broadcast Television Programs
Prime-time product placement occurrences on broadcast networks
increased overall by 39% during the first quarter of 2008. The
top 10 programs featured 15,404 occurrences in the first three
months of this year—compared to 8,893 occurrences in the same
time period in 2007. "The Biggest Loser," with 3,977
occurrences, was the top program, in terms of the number of
placements. Four of the top 10 programs aired on CW, and six
programs had over 1,000 placements.
Because of the recent writers' strike, many programs were
shifted from their standard airing times. "Big Brother," which
usually airs during the summer months, was moved up to the first
quarter to fill in empty slots. "The Apprentice" also altered
its normal schedule of episodes, airing the same number of
episodes between January and March of 2008 as were run from
January through April of 2007.
In addition, "Deal Or No Deal" featured a special NFL-themed
episode, originally aired in September 2007 and re-run in the
first quarter 2008, which featured an NFL logo on the stage, NFL
helmets throughout the set, and models and contestants clad in
NFL apparel. That episode alone had 1,372 product placements.
All other "Deal or No Deal" episodes during the first quarter of
2008 had less than 100 occurrences.
Top Broadcast Television Brands
The top 10 featured brands on prime-time broadcast network
television increased by 52% in the first quarter this year, from
4,253 occurrences in 2007 to 6,453 during the first three months
of 2008. Coca-Cola, primarily through its association with
"American Idol," was again the top brand, with 2,380 occurrences
for this time period. The February 21st episode of "American
Idol" with Coca-Cola was especially well received by the viewing
audience—nearly 60% recognized the brand and responded
positively to it.
24 Hour Fitness Centers (1,545 occurrences) and Pussycat Dolls
Lounge Nightclubs (479 occurrences) rounded out the top three
brands on Broadcast television. Notably, six of the top 10
brands are associated with sports/exercise.
Top Broadcast Television Product Categories
The top five product categories on broadcast network television
had more than 1,000 placements each. Among these, Soft Drinks
ranked first, with 2,502 placements. Of these, Coca-Cola
accounted for 2,380. The Apparel, Fitness Centers/Clubs,
Football Team, and Exercise Equipment also made the top five.
Cable Television Product Placements
Top Cable Television Programs
The top 10 cable programs that featured product placements
accounted for 59,308 occurrences in the first quarter of 2008—an
increase of 16% from 50,940 during the first quarter of 2007.
"American Chopper" on TLC was again the top program, with 16,164
placements. Half of the programs in the Top 10 air on MTV, and
another three air on BRAVO.
Top Cable Television Brands
The top 10 featured brands on prime-time cable network
television in this year's first quarter accounted for 17,356
occurrences—a 28% increase from 13,501 occurrences in 2007.
Under Armour Apparel was the top brand, with 2,960 occurrences
for this time period—mainly through its association with the
program "Real World Road Rules Challenge." Each brand in the
top 10 placed more than 1,000 placements.
Notably, the top performing placements were not heavy weights in
terms of activity; these included Home Depot on the February
10th episode of HGTV's "Color Splash," Flow Power Tools on TLC's
"American Chopper," and Hershey's integration on BRAVO's
"Project Runway." Each impacted more than half the viewing
audience in terms of brand recognition and positive feeling.
Top Cable Television Product Categories
With 18,307 placements Apparel was easily the number one product
placement category on cable television during the first quarter
of 2008. The top three apparel brands each had more than 1,000
placements during the first quarter: Under Armour Apparel (2,960
occurrences), Orange County Choppers Apparel (2,264
occurrences), and Big Black Apparel (1,149 occurrences). Nike
Apparel and Sean John Apparel also ranked among the top five
apparel brands.
About The Nielsen Company
The Nielsen Company B.V. -- http://www.nielsen.com/-- is a
global information and media company with recognized brands in
marketing information (ACNielsen), media information (Nielsen
Media Research), online intelligence (NetRatings and
BuzzMetrics), trade shows and business publications (Billboard,
The Hollywood Reporter, Adweek). The privately held company is
active in more than 100 countries, with headquarters in Haarlem,
the Netherlands, and New York, USA. The company has operation
in Brazil.
* * *
The TCR reported on May 5, 2008, that Standard & Poor's Ratings
Services revised its outlook on the 'B' corporate credit rating
of The Nielsen Co. B.V. to stable from negative. According to
Standard & Poor's credit analyst Tulip Lim, "[t]he outlook
change reflects the company's good operating performance and
progress in its cost-cutting initiatives."
As reported on April 25, 2008, Fitch Ratings assigned The
Nielsen Company a Long-term Issuer Default rating of 'B' with a
Stable Outlook, and a Short-term IDR of 'B.' Fitch has also
assigned the group's senior secured bank debt a 'BB-' rating.
ULTRAPAR PARTICIPACOES: Earnings Grow to BRL90 Mil. in 1Q 2008
--------------------------------------------------------------
Ultrapar Participacoes S.A. reported its results for the first
quarter of 2008.
In the beginning of this year, the company have carried out the
segregation and handover of the Petrochemical and Northern
Distribution assets to Braskem and Petrobras. Concurrently, the
company has continued its investments in the expansion of the
company and in the implementation of its business plan at
Ipiranga, aiming at obtaining benefits through increased volume
and economies of scale.
-- Ipiranga sales volume increased 5.5%, Oxiteno's specialty
chemicals sales volume increased 11.8%, average storage
volumes at Ultracargo increased 14.1% comparing to first
quarter 2007.
-- Ultrapar's EBITDA amounted to BRL223 million in first
quarter 2008, up 93% on first quarter 2007.
-- Net earnings at Ultrapar amounted to BRL90 million in
first quarter 2008, up 142% on first quarter 2007.
-- Average daily trading volume in Ultrapar's shares amounted
to BRL32 million in first quarter 2008, a 218% increase on
first quarter 2007.
"A year on from the acquisition of the control of Ipiranga, we
have successfully concluded the segregation and handover of the
Petrochemical and Northern Distribution Assets with the receipt
of respective payments from Braskem and Petrobras. In parallel,
we have continued our work on the expansion of the company
through the investment in additional production capacity,
particularly at Oxiteno. Having re-established the financial
position we had before the acquisition, we will continue to
focus on the sustainable growth of all our businesses, also
seeking to exploit opportunities arising from the favourable
moment of the Brazilian economy." said Chief Executive Officer,
Pedro Wongtschowski.
Ultrapar Participacoes S.A. (NYSE: UGP) (BOVESPA: UGPA4) is a
company with two main operations: LPG distribution (through its
fully-owned subsidiary Ultragaz Participacoes Ltda.) and
chemical production (through its also fully-owned subsidiary
Oxiteno S.A.). A third smaller but growing business is the
transportation and storage of chemicals and fuels, Ultracargo
Operacoes Logisticas e Participacoes Ltda., which completes
Ultrapar's business portfolio and reinforces the trend for
further business diversity in the long run.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 22, 2007, Standard & Poor's Ratings Services affirmed the
rating on Ultrapar Participacoes S.A. (Ultrapar; BB+/Stable/--)
following the announcement that the company, together with two
other companies, has jointly acquired the control of Grupo
Ipiranga (unrated) in Brazil.
In November 2005, Standard & Poor's Ratings Services assigned
its 'BB+' senior unsecured debt rating to the 10-year notes
issuance by LPG International Inc., a wholly owned subsidiary of
Ultrapar Participacoes S.A., in the amount of US$250 million.
At the same time, the 'BB+' long-term corporate credit ratings
on Ultrapar, a Brazilian company with operations in liquefied
petroleum gas (LPG) distribution, chemical production, and
integrated logistics, were affirmed. S&P said the outlook is
stable.
==========================
C A Y M A N I S L A N D S
==========================
BANCO INDUSTRIAL: Moody's Rates Cayman Unit's US$50MM Notes Ba1
---------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 foreign currency
rating to Banco Industrial e Comercial S.A. Cayman Islands'
US$50 million senior unsecured notes due in April 2010, issued
under the bank's existing US$1 billion Global Euro Medium-term
Note Program. The rating outlook is stable.
Moody's noted that Banco Industrial's foreign currency debt
ratings remain unconstrained by Brazil's foreign currency
country ceiling for bonds and notes.
This rating was assigned to BicBanco Cayman Islands' US$50
million senior notes due 2010:
-- Ba1 long-term foreign currency debt, with a stable outlook.
Banco Industrial e Comercial S.A. is headquartered in Sao Paulo,
Brazil with BRL10,937 million in total assets and BRL1,630
million in equity as of March 31, 2008.
CARLYLE CAPITAL: Proofs of Claim Filing Deadline Is May 19
----------------------------------------------------------
Carlyle Capital Investment Ltd.'s creditors have until May 19,
2008, to prove their claims to Christopher D. Johnson and
Russell Smith, 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.
Carlyle Capital's shareholder decided on April 14, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Christopher D. Johnson and Russell Smith
Attn: Sumitra Devi
c/o Chris Johnson Associates Ltd.
P.O. Box 2499, Elizabethan Square,
George Town, Grand Cayman,
Cayman Islands
Telephone: (345) 946 0820
Fax: (345) 946 0864
CARLYLE CAPITAL CAYMAN: Claims Filing Deadline Is Until May 19
--------------------------------------------------------------
Carlyle Capital Cayman Ltd.'s creditors have until May 19, 2008,
to prove their claims to Christopher D. Johnson and Russell
Smith, 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.
Carlyle Capital Cayman's shareholder decided on April 14, 2008,
to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Christopher D. Johnson and Russell Smith
Attn: Sumitra Devi
c/o Chris Johnson Associates Ltd.
P.O. Box 2499, Elizabethan Square,
George Town, Grand Cayman,
Cayman Islands
Telephone: (345) 946 0820
Fax: (345) 946 0864
EFFJOHN INTERNATIONAL: Claims Filing Deadline Is Until May 18
-------------------------------------------------------------
Effjohn International Cruise Holdings Inc.'s creditors have
until May 18, 2008, to prove their claims to Per Arvid Skult,
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.
Effjohn International's shareholder decided on March 18, 2008,
to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Per Arvid Skult
c/o Neptun Juridica Co. Ltd
Keilaranta 9, FI-02150 Espoo,
Finland
EFFJOHN INTERNATIONAL: Sets Final Shareholders Meeting on May 19
----------------------------------------------------------------
Effjohn International Cruise Holdings Inc. will hold its final
shareholders meeting on May 19, 2008, at 9:00 a.m. at the
offices of Neptun Juridica Co. Ltd., Keilaranta 9, Fl-02150
Espoo, Finland.
These matters will be taken up during the meeting:
1) accounting of the wind-up process.
Effjohn International's shareholder agreed on March 18, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Per Arvid Skult
c/o Neptun Juridica Co. Ltd
Keilaranta 9, FI-02150 Espoo,
Finland
EMPIRE SQUARE: Deadline for Proofs of Claim Filing Is May 17
-----------------------------------------------------------
Empire Square CDO Ltd.'s creditors have until May 17, 2008, to
prove their claims to Walkers SPV Limited, 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.
Empire Square's shareholder decided on April 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:
Walkers SPV Limited
Attn: Anthony Johnson
c/o Walker House,
87 Mary Street, George Town,
Grand Cayman, Cayman Islands
Telephone: (345) 914-6314
IDA INVESTMENT: Proofs of Claim Filing Deadline Is May 17
---------------------------------------------------------
Ida Investment Fund's creditors have until May 17, 2008, to
prove their claims to Walkers SPV Limited, 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.
Ida Investment's shareholder decided on April 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:
Walkers SPV Limited
Attn: Anthony Johnson
c/o Walker House,
87 Mary Street, George Town,
Grand Cayman, Cayman Islands
Telephone: (345) 914-6314
MADISON RIDGE: Will Hold Final Shareholders Meeting on May 19
-------------------------------------------------------------
Madison Ridge Master Fund Ltd. will hold its final shareholders
meeting on May 19, 2008, at 11:00 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.
Madison Ridge's shareholder agreed on March 27, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
Contact for inquiries:
Shameer Jasani
c/o Ogier
Queensgate House, South Church Street
P.O. Box 1234, Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 815-1702
Fax: (345) 949 1986
PHYLON FUND: Deadline for Proofs of Claim Filing Is May 19
----------------------------------------------------------
Phylon Fund Ltd.'s creditors have until May 19, 2008, to prove
their claims to Christopher D. Johnson and Russell Smith, 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.
Phylon Fund's shareholders decided on April 7, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Christopher D. Johnson and Russell Smith
Attn: Sumitra Devi
c/o Chris Johnson Associates Ltd.
P.O. Box 2499, Elizabethan Square,
George Town, Grand Cayman,
Cayman Islands
Telephone: (345) 946 0820
Fax: (345) 946 0864
QUANT TRADING: Deadline for Proofs of Claim Filing Is May 19
------------------------------------------------------------
The Quant Trading Co. Ltd.'s creditors have until May 19, 2008,
to prove their claims to CDL Company Ltd., 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.
Quant Trading's shareholder decided on Feb. 25, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
CDL Company Ltd.
P.O. Box 31106SMB,
Grand Cayman, Cayman Islands
QUANT TRADING: To Hold Final Shareholders Meeting on May 19
-----------------------------------------------------------
The Quant Trading Co. Ltd. will hold its final shareholders
meeting on May 19, 2008, at Citco Trustees (Cayman) Limited,
Regatta Office Park, West Bay Road, Windward One, Grand Cayman,
Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
Quant Trading's shareholder agreed on Feb. 25, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
CDL Company Ltd.
P.O. Box 31106SMB,
Grand Cayman, Cayman Islands
SEINE AIRCRAFT: Proofs of Claim Filing Deadline Is Until May 17
---------------------------------------------------------------
Seine Aircraft Leasing Ltd.'s creditors have until May 17, 2008,
to prove their claims to Walkers SPV Limited, 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.
Ida Investment's shareholder decided on April 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:
Walkers SPV Limited
Attn: Anthony Johnson
c/o Walker House,
87 Mary Street, George Town,
Grand Cayman, Cayman Islands
Telephone: (345) 914-6314
WALKERS COMPLIANCE: Proofs of Claim Filing Deadline Is May 18
-------------------------------------------------------------
Walkers Compliance Ltd.'s creditors have until May 18, 2008, to
prove their claims to Walkers SPV Limited, 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.
Walkers Compliance's shareholders decided on April 18, 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
Attn: Anthony Johnson
c/o Walker House,
87 Mary Street, George Town,
Grand Cayman, Cayman Islands
Telephone: (345) 914-6314
=========
C H I L E
=========
AES CORP: Commences Tender Offer for US$377 Million Senior Notes
----------------------------------------------------------------
The AES Corporation, on May 14, 2008, commenced a cash tender
offer for up to US$377,030,000 aggregate principal amount of its
outstanding senior notes.
The tender offer will expire at 12:00 midnight, New York City
time, on June 11, 2008, unless extended or earlier terminated.
Concurrently with the tender offer, AES is also soliciting
consents from holders of its outstanding 8.75% Second Priority
Senior Secured Notes due 2013 to certain proposed amendments to
the indenture governing the Secured Notes, which will eliminate
many of the restrictive covenants in the indenture. Adoption of
the proposed amendments requires the consent of at least a
majority of the outstanding principal amount of Secured Notes.
The consent solicitation for the Secured Notes will expire at
5:00 p.m., New York City time, on May 28, 2008, unless extended
or earlier terminated.
Holders of Secured Notes may deliver their consents without
tendering the related Secured Notes and holders that tender
their Secured Notes pursuant to the tender offer will be deemed
to have consented to the proposed amendments.
List of Notes
8.75% Second Priority Senior Secured Notes due 2013
CUSIP/ISIN Numbers: 00130HBA2/U0080RAF7
Aggregate Principal Amount Outstanding: US$752,553,000
Series Tender Cap: US$377,030,000 less Untendered Note Consents
Acceptance Priority Level: 1
Tender Offer Consideration: US$1,020.00
Early Tender Premium: US$20.00
Consent Fee: US$3.75
Total Consideration: US$1,043.75
9.50% Senior Notes due 2009
CUSIP/ISIN Numbers: 00130HAQ8
Aggregate Principal Amount Outstanding: US$467,308,000
Series Tender Cap: $240,000,000
Acceptance Priority Level: 2
Tender Offer Consideration: US$1,035.00
Early Tender Premium: US$20.00
Consent Fee: N/A
Total Consideration: US$1,055.00
9.375% Senior Notes due 2010
CUSIP/ISIN Numbers: 00104CAA6
Aggregate Principal Amount Outstanding: US$422,665,000
Series Tender Cap: US$180,000,000
Acceptance Priority Level: 3
Tender Offer Consideration: US$1,057.50
Early Tender Premium: US$20.00
Consent Fee: N/A
Total Consideration: US$1,077.50
8.875% Senior Notes due 2011
CUSIP/ISIN Numbers: 00130HAU9
Aggregate Principal Amount Outstanding: US$306,805,000
Series Tender Cap: US$120,000,000
Acceptance Priority Level: 4
Tender Offer Consideration: US$1,045.00
Early Tender Premium: US$20.00
Consent Fee: N/A
Total Consideration: US$1,065.00
For each series of Notes, AES is offering to purchase (subject
to the Maximum Tender Cap for all Notes combined) an aggregate
principal amount up to the Series Tender Cap for such series of
Notes.
The amount of each series of Notes that will be purchased in the
tender offer will be based on the Maximum Tender Cap, the Series
Tender Cap and the order of priority for such series of Notes.
All Notes validly tendered in the tender offer having a higher
Acceptance Priority Level (with "1" being the highest) will be
accepted for purchase up to the Series Tender Cap for such
series of Notes before any tendered Notes having a lower
Acceptance Priority Level are accepted for purchase, up to the
Maximum Tender Cap for all Notes in the aggregate. In the event
that the aggregate principal amount of Notes of any series that
are validly tendered and not withdrawn prior to the Expiration
Time exceeds the Series Tender Cap for such series of Notes, AES
(subject to the terms and conditions of the tender offer) will
purchase an amount of Notes up to the Series Tender Cap for such
series on a pro rata basis.
The "Total Consideration" for each US$1,000 principal amount of
Notes tendered and accepted for payment pursuant to the tender
offer will be the applicable total consideration set forth in
the table above. The Total Consideration includes an Early
Tender Premium of US$20.00 per US$1,000 principal amount of
Notes (and in the case of the Secured Notes, if the Requisite
Consents are received and the proposed amendments become
operative, also includes the Consent Fee).
Holders must validly tender and not validly withdraw their Notes
prior to 5:00 p.m., New York City time, on May 28, 2008, unless
extended or earlier terminated in order to be eligible to
receive the Total Consideration. Holders validly tendering
their Notes after the Early Tender/Consent Time and prior to the
Expiration Time will only be eligible to receive the Tender
Offer Consideration, which is the Total Consideration minus the
Early Tender Premium (and in the case of the Secured Notes also
minus the Consent Fee). Subject to receipt of the Requisite
Consents and the other terms and conditions of the Consent
Solicitation, AES will pay to each holder of Secured Notes who
consents to the proposed amendments prior to the Consent Time a
Consent Fee in cash equal to US$3.75 per US$1,000 principal
amount of Secured Notes to which the consent relates, which
payment in the case of Secured Notes that are tendered prior to
the Early Tender/Consent Time and are accepted for purchase by
AES pursuant to the tender offer will be included as part of the
Total Consideration.
Tenders of Notes may be withdrawn and delivery of consents may
be revoked at any time prior to 5:00 p.m., New York City time,
on May 28, 2008, unless extended, but not thereafter unless
required by law.
Consummation of the tender offer for all series of Notes and the
consent solicitation is subject to the satisfaction or waiver of
certain conditions, including but not limited to a financing
condition and the receipt of the Requisite Consents to the
proposed amendments. AES reserves the right, in its sole
discretion, to waive or modify any one or more of the conditions
to the tender offer and the consent solicitation, in whole or in
part at any time, or to terminate or amend the tender offer and
consent solicitation for any reason.
Citi and Lehman Brothers are the Dealer Managers for the tender
offer and the consent solicitation. Global Bondholder Services
Corporation is acting as the Information Agent and the
Depositary.
Persons with questions regarding the tender offer or the consent
solicitation should contact Citi at 800-558-3745 (toll free) or
212-723-6106 (collect) and Lehman Brothers at 800-438-3242 (toll
free) or at 212-528-7581 (collect). Requests for copies of
Offer to Purchase and the Letter of Transmittal may be directed
to Global Bondholder Services Corporation at (866) 873-7700
(toll free) or (212) 430-3774.
About AES Corp.
AES Corp. (NYSE:AES) -- http://www.aes.com/-- is a global power
company, with 2007 revenues of US$13.6 billion. The company has
operations in 29 countries on five continents and has a
workforce of 28,000 people. The company's 13 regulated
utilities amass annual sales of over 78,000 GWh and its 123
generation facilities have the capacity to generate more than
43,000 megawatts.
In Europe, the company has operations in Ukraine, Ireland,
Spain, Kazakhstan and Bulgaria, among others. The company also
has subsidiaries in Europe that includes the Netherlands and
United Kingdom. Aside from China, AES also has operations in
India and the Philippines. Latin America operations include
Brazil, Argentina and Chile.
AES CORP: Moody's Rates Proposed US$600 Mln Sr. Notes at B1
-----------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to The AES
Corporation's proposed issuance of US$600 million senior
unsecured notes due 2020.
In addition, Moody's has affirmed the ratings of AES, including
the company's Corporate Family Rating at B1, its Probability of
Default Rating at B1, its senior secured credit facilities at
Ba1, its second priority senior secured notes at Ba3, its senior
unsecured notes at B1 and its trust preferred securities at B3.
The rating outlook for AES is stable.
The rating affirmation reflects an expectation that AES will use
the proceeds from the proposed offering to refinance a similar
amount of recourse debt. The rating affirmation also takes into
account the company's concurrent effort to eliminate the
financial covenants contained in its second priority senior
secured notes.
AES's ratings consider the company's high leverage and the
structural subordination of its recourse debt to the significant
level of non-recourse debt in its consolidated capital
structure. Structural constraints are somewhat mitigated by the
diversification provided by AES's large number of subsidiaries,
their wide geographic distribution and balanced fuel mix, and
the significant proportion of the company's cash flows that are
subject to stable regulation or long-term contracts.
Subsidiary distributions to AES are expected to be approximately
US$1.1 billion in 2008, similar to 2007 results. Recourse debt
however increased approximately 16% or US$760 million to US$5.6
billion during 2007 as AES borrowed to finance growth. This
increase in leverage constrains upward movement in AES's current
rating levels over the near-term. The commercial operation of
various generating stations currently under construction that
are expected to achieve operation in the 2009/2010 timeframe is
expected to improve the scale of subsidiary distributions and
financial metrics and may be a trigger for upward ratings
pressure.
Ratings affirmed/LGD assessments revised:
The AES Corporation
-- Corporate Family Rating -- B1
-- Probability of Default Rating -- B1
-- Senior secured credit facilities -- Ba1 (LGD1, 5%) from
(LGD1, 2%)
-- Second priority senior secured note -- Ba3 (LGD3, 41%)
from (LGD3, 38%)
-- Senior unsecured notes -- B1 (LGD4, 56%) from (LGD4, 53%)
AES Trust III
-- Convertible trust preferred securities -- B3 (LGD6, 95%)
from (LGD6, 94%)
Rating assigned:
The AES Corporation
-- US$600 million of new senior unsecured notes, B1 (LGD4,
56%)
AES Corp. (NYSE:AES) -- http://www.aes.com/-- is a global power
company, with 2007 revenues of US$13.6 billion. The company has
operations in 29 countries on five continents and has a
workforce of 28,000 people. The company's 13 regulated
utilities amass annual sales of over 78,000 GWh and its 123
generation facilities have the capacity to generate more than
43,000 megawatts. Its consolidated revenues totaled
US$13.6 billion during fiscal year 2007.
In Europe, the company has operations in Ukraine, Ireland,
Spain, Kazakhstan and Bulgaria, among others. The company also
has subsidiaries in Europe that includes the Netherlands and
United Kingdom. Aside from China, AES also has operations in
India and the Philippines. Latin America operations include
Brazil, Argentina and Chile.
EASTMAN KODAK: Posts US$115 Million Net loss in First Quarter
-------------------------------------------------------------
Eastman Kodak Company reported a 35%, or US$61 million, year-
over-year improvement in its first-quarter loss from continuing
operations on sales of US$2.093 billion. Kodak's revenue from
digital businesses rose 10% to US$1.366 billion, driven by
strong year-over-year increases in most of its digital
businesses.
"Our first-quarter results are very much in line with our
expectations, which included forecasted seasonality, and provide
an early indication that Kodak is on a growth track," said
Antonio M. Perez, Chairman and Chief Executive Officer, Eastman
Kodak Company. "We delivered strong performance across our
major digital businesses, reinforcing our confidence in
achieving our revenue, earnings and cash goals for the year."
Net loss for the first quarter of 2008 was US$115 million
compared to a US$151 million net loss for the first quarter of
2007.
Sales totaled US$2.093 billion, an increase of 1% from US$2.080
billion in the first quarter of 2007. Revenue from digital
businesses totaled US$1.366 billion, a 10% increase from
US$1.245 billion in the prior-year quarter. Traditional revenue
totaled US$724 million, a 13% decline from US$830 million in the
first quarter of 2007.
The company's first-quarter loss from continuing operations,
before interest, other income (charges), net, and income taxes
was US$81 million, compared with a loss of US$186 million in the
year-ago quarter.
On the basis of generally accepted accounting principles, the
company reported a first-quarter loss from continuing operations
of US$114 million, or US$0.40 per share, compared with a loss of
US$175 million, or US$0.61 per share, in the year-ago period.
Items of net expense that impacted comparability in the first
quarter of 2008 totaled US$2 million after tax, or US$0.01 per
share. The most significant items included curtailment gains
resulting from previous restructuring actions of US$0.03 per
share and gains on asset sales of US$0.03 per share, offset by
discrete tax provision items and a legal settlement charge,
together totaling US$0.07 per share. Items of net expense that
impacted comparability in the prior-year quarter totaled US$95
million after tax, or US$0.33 per share, primarily due to
restructuring charges, partially offset by a foreign tax reserve
reversal.
Gross Profit margin was 20.3% for the quarter, down slightly
from 20.6% in the year-ago period, primarily attributable to
significant year-over-year increases in silver, aluminum and
other raw material costs, and continued investment in the
consumer inkjet business.
Selling, General and Administrative expenses decreased US$9
million from first-quarter 2007, primarily reflecting the
company's continued focus on controlling costs. As a percentage
of revenue, SG&A was 18.4%, compared with 18.9% in the year-ago
quarter.
First-quarter net cash generation was a use of US$764 million, a
US$311 million increase in cash used from the year-ago period.
This corresponds to net cash used in operating activities from
continuing operations on a GAAP basis of US$767 million in the
first quarter, compared with US$397 million in the first quarter
2007. This increase in cash usage is due primarily to higher
working capital, including inventory build associated with
projected revenue growth, and higher payments to suppliers
related to revenue growth in the prior year's fourth quarter.
The company also made increased payments for performance-based
compensation and for various tax items, contractual obligations
and legal settlements.
The company's debt level stood at US$1.606 billion as of
March 31, 2008, comparable to the year-end 2007 debt level of
US$1.597 billion.
Kodak held US$2.203 billion in cash and cash equivalents as of
March 31, 2008, compared to the year-end 2007 level of
US$2.947 billion.
2008 Outlook
For 2008, on a continuing operations basis, Kodak re-affirms
guidance provided in the company's February investor meeting,
including:
-- Total company revenue growth in the range of 0% to 2%;
digital revenue growth in the range of 7% to 10%;
-- 2008 GAAP earnings from continuing operations in the
range of US$250 million to US$275 million, including
pre-tax charges in the range of US$60 million to
US$80 million for rationalization and carryover
restructuring costs;
-- On a GAAP basis, cash provided by operating activities
from continuing operations in the range of
US$575 million to US$625 million;
-- Cash generation in the range of US$400 million to
US$500 million before dividend payments and after taking
into account payments for carryover restructuring and
other rationalization costs of approximately
US$150 million.
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.
The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 25, 2008, Standard & Poor's Ratings Services revised its
outlook on Eastman Kodak Co. to stable from negative. At the
same time, S&P affirmed the ratings, including the 'B+'
corporate credit rating. S&P credit analyst Tulip Lim
explained that "[t]he outlook change reflects [S&P's] opinion
that a near-term downgrade is unlikely."
As reported in the Troubled Company Reporter-Latin America on
Feb. 28, 2008, Fitch Ratings revised Eastman Kodak Company's
rating outlook to stable from negative and affirmed issuer
default rating at 'B', senior secured revolving credit facility
at 'BB/RR1', and Senior unsecured debt at 'B/RR4'.
===============
C O L O M B I A
===============
GRAN TIERRA: Security Situation in Colombia Is Greatest Threat
--------------------------------------------------------------
Gran Tierra Energy Inc.'s Chief Executive Officer Dana Coffield
said in a conference call with investors that the security
situation in Colombia is the greatest threat to investment in
the country, Business News Americas reports.
BNamericas relates that security concerns in Colombia are due to
armed conflicts between the government, guerilla groups FARC and
ELN, and paramilitaries.
Mr. Coffield commented to BNamericas, "The legal and contract
stability risk in Colombia is extremely low and certainly lower
than in the U.S. and Canada. But the security risk remains."
Colombia's security situation has improved "over historical
levels" and the government provides on-site security for oil
installations, BNamericas says, citing Mr. Coffield. "The
security risk can be managed. It's part of the operating cost.
The government provides security and we also have our own
internal procedures," Mr. Coffield added.
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.
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." In 2007, the company booked a net loss
of US$8.5 million widening the US$5.8 million loss incurred in
2006.
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.
GRAN TIERRA: Says Rig Market in Colombia Must Get Tighter
---------------------------------------------------------
Gran Tierra Energy Inc.'s Chief Executive Officer Dana Coffield
said in a conference call with investors that the Colombian rig
market is tight and should become even tighter, Business News
Americas reports.
Mr. Coffield commented to BNamericas, "As you know there has
been a huge land rush during the last year, and I think you will
see an increase in both seismic and drilling activity in the
country in the coming years. Access to rigs will become tighter
as a result. We're in reasonably good shape for our development
drilling program, it will be competitive for exploration
drilling in the coming years."
To meet increasing demand, drilling contractors are trying to
bring more rigs into Colombia, BNamericas says, citing Mr.
Coffield.
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.
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." In 2007, the company booked a net loss
of US$8.5 million widening the US$5.8 million loss incurred in
2006.
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.
===================================
D O M I N I C A N R E P U B L I C
===================================
CERVECERIA NACIONAL: S&P Holds B+ Credit & Senior Debt Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B+' long-
term corporate credit and senior unsecured debt ratings on
Cerveceria Nacional Dominicana C. por A. The outlook is stable.
"Our ratings on CND reflect the shift in its financial policy
toward using debt aggressively to finance its corporate
restructuring. There is also uncertainty about the company
achieving its targeted deleveraging path, which is a total debt-
to-EBITDA ratio of 2.2, given the weaker-than-expected results
in 2007," said S&P's credit analyst Marcela Duenas. The rating
also incorporates Cerveceria Nacional's exposure to currency
depreciation risk associated with the mismatch between the
substantial proportion of Dominican peso-denominated sales and
its U.S. dollar-denominated debt obligations.
In addition, the ratings consider the challenges that Cerveceria
Nacional faces operating in the Dominican Republic; the exposure
to the nation's economic cycles; and the vulnerability to
external shocks. The rating also incorporates business
constraints associated with the company's geographic
concentration, as well as intense industry competition
throughout the region that could limit the company's ability to
expand its business in the international markets.
These challenges are partially offset by Cerveceria Nacional's
leading position in the Dominican Republic beer and malt
markets, with market shares of approximately 92% and 64%,
respectively. In addition, the rating considers S&P's
expectations that the company's growth strategy and capital
investment plans will continue to be funded through internally
generated cash, with an annual budget of approximately
US$40 million. The company benefits from its strong
distribution capabilities in a fragmented retailer system, solid
and long-standing brand recognition, and the improving
acceptance of its products in the international markets. The
rating also incorporates S&P's expectations that the Dominican
economy will remain stable and will contribute to the domestic
beer industry's sustained growth.
Following the fiscal reform that the Dominican government
implemented beginning on Jan. 1, 2007, which increased certain
excise taxes and introduced an ad-valorem tax on alcohol, volume
sales significantly lessened during last year. However, S&P
believes the company's volumes will recover somewhat during
2008. In recent years, the company has been able to post
adequate EBITDA margins based on strong domestic sales and the
positive dynamics of the beer industry in the region. S&P
expects margins to remain above 30%, as the company continues
focusing on improving the segmentation and distribution of its
products. Additional support from exports could occur while the
company improves its presence in the United States and
consolidates its operations in the Caribbean, Europe, and
Central America.
The stable outlook reflects S&P's expectations that Cerveceria
Nacional will be able to maintain its solid business profile by
consolidating its leading position in the Dominican Republic and
increasing its participation in the international markets while
improving its financial profile. A negative rating action could
result from a greater-than-expected cyclical downturn or a
departure from the company's expected financial policies,
including the strategy to deleverage its capital structure.
Competitive and efficient operating activities that support
stable margins, along with the dominant market position, reduce
the risk of a negative rating action, although the potential to
raise the ratings is limited because of the company's high
geographic concentration and exposure to a highly vulnerable
economy.
Headquartered in Santo Domino, Dominican Republic, Cerveceria
Nacional Dominicana, C. por A. is the leading beer and malt
producer and distributor in the Dominican Republic. Cerveceria
Nacional's main beer brands are Presidente, Presidente Light and
Bohemia, which account for about 95% of revenues. The company
also is the leader in the Dominican non-alcoholic malts market
and has a growing export business, which serves the U.S. East
Coast, the Caribbean and various other regions including Europe.
Cerveceria Nacional is the main operating subsidiary of E. Leon
Jimenes, a family-controlled holding company.
=============
J A M A I C A
=============
AIR JAMAICA: Unions Urge Workers to Continue Protests
-----------------------------------------------------
The Jamaica Observer reports that the National Workers Union and
Bustamante Industrial Trade Union are urging Air Jamaica's
employees to continue with their protests, which started last
Friday.
According to The Observer, the unions are demanding a 15% wage
increase. Bustamante Industrial's President Kavan Gayle sent a
letter to Don Wehby, the Minister Without Portfolio in the
Ministry of Finance & Public Service, outlining the union's
rationale for its claims. The unions are asking the government
to proceed with negotiations.
Mr. Gayle said in his letter, "The Bustamante Industrial Trade
Union wishes to once again raise concern relating to the undue
delay in commencing wage and fringe benefits negotiations on
behalf of certain categories of employees attached to Air
Jamaica. We have submitted wage claims on behalf of certain
ground staff and inflight employees. These claims sought to
amend contracts that expired in December of 2006 and May of 2007
respectively. Whilst we understand that the Ministry of Finance
gives directives and parameters to Air Jamaica to facilitate
their pursuance of these negotiations the Ministry must
understand and appreciate the difficulties that these workers
face. The Air Jamaica employees have been undergoing harsh
economic conditions over a sustained period and are currently
overextended financially. This union will hasten to point out,
that in the past even during times such as these the workers
were accustomed to attaining at least a cost of living
adjustment to alleviate the pressures."
A source commented to The Observer, "Why would the unions urge
Air Jamaica workers to go on strike at this time when they seek
to amend contracts going back to well over a year ago. Can't
they see that their efforts at this time will only serve to
cripple the airline? How can you negotiate for astronomical pay
rises when the airline is bleeding red ink. It just doesn't
make sense."
Government officials told The Observer that the unions gave no
warning about the protests.
According to reports, Mr.Wehby responded to Mr. Gayle's letter,
saying, "I wish to assure you that your concern as expressed in
your letter, dated May 2,2008, that the employees of Air Jamaica
are having difficulties given the prevailing economic
circumstances, has not been lost on the Government of Jamaica,
indeed we are concerned for all of our citizens. We must,
however again reiterate the dire financial problems that the
airline is now facing. For the twelve months ended
Dec. 31, 2007 Air Jamaica sustained a net loss from operations
that is before Government of Jamaica subsidies of
US$173.93 million. The preliminary figures for the first
quarter of 2008 are no better. As you are no doubt aware the
global environment, with skyrocketing fuel costs, has been less
than ideal for the aviation industry. In fact a number of
smaller airlines have had to shut down operations completely
over the past three months. The Ministry of Finance is
presently pursuing a number of strategies towards creating a
more efficient and financially viable airline. As such I am
seeking your restraint and patience while we navigate these
times. Any industrial action at this time would aggravate these
losses, making the situation worse for all stakeholders."
Wage increases for workers, temporary or otherwise, can only be
determined by Air Jamaica's ability to pay, The Observer states,
citing Mr. Wehby.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to own Air Jamaica
permanently.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
On July 21, 2006, Standard & Poor's Rating Services assigned a
"B" long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, based on the government's
unconditional guarantee of both principal and interest payments.
CABLE & WIRELESS: Launches Bundled Services for Mobile Phone
------------------------------------------------------------
The Jamaica Gleaner reports that Cable and Wireless PLC's
Jamaica unit has launched a suite of bundled services for post-
and pre-paid subscribers who want predictability in their
spending on mobile phone services.
The Gleaner relates that bmobile clients can purchase packages
of up to 3,800 minutes and 1,000 texts from among eight
structured plans "for one flat rate per month (for up to
J$7,499), for on-network, off-network, and international calls
and SMS texting".
Cable & Wireless Jamaica's Chief Commercial Officer Mariano
Doble commented to The Gleaner, "It's the first time that we're
putting together comprehensive bundles."
The Gleaner says Cable & Wireless Jamaica considers it as an
opportunity to seize market share. Mr. Doble said the plan
could add up to 20% more to our client base. The Gleaner notes
that Cable & Wireless Jamaica has just under 600,000 active
mobile clients. The firm wants to increase its base to 700,000
or more. According to Mr. Doble, over 90% of the firm's clients
are on pre-paid plans.
Headquartered in London, Cable & Wireless Plc --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, India,
China, Japan, the Cayman Islands and the Middle East.
* * *
In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Telecommunications, Media and
technology sector, Moody's Investors Service confirmed its Ba3
Corporate Family Rating for Cable & Wireless Plc.
Moody's also assigned a Ba3 Probability-of-Default rating to the
company.
* Issuer: Cable & Wireless Plc
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
4% Senior Unsecured
Conv./Exch.
Bond/Debenture
Due 2010 B1 LGD4 60%
GBP200 million
8.75% Senior
Unsecured Regular
Bond/Debenture
Due 2012 B1 LGD4 60%
CASH PLUS: Court Extends Carlos Hill's Bail
-------------------------------------------
The Half Way Tree Criminal Court of Jamaica has extended the
J$15 million bail bond of Cash Plus Limited's President Carlos
Hill, Radio Jamaica reports.
Radio Jamaica relates that Mr. Hill, his brother Bertram, Cash
Plus' Chief Financial Officer Peter Wilson appeared before the
court last Wednesday on fraud charges. Mr. Hill's defense
lawyer K. Churchill Neita asked Senior Magistrate Glen Brown to
reduce the daily reporting condition imposed on his client. Mr.
Neita's application was refused. Mr. Brown told the attorney
that he would not disturb the conditions imposed by High Court
Judge Bertram Morris. Mr. Neita said "it was too onerous for
his client to be reporting to the Fraud Squad office everyday."
The Director of Public Prosecution hasn't provided any statement
over a month after charges were laid against the accused, Radio
Jamaica says, citing Mr. Hill's defense lawyers. They asked the
Magistrate to instruct the DPP and the police to return items
taken from Mr Hill's residence. Items like cellular phones and
personal documents not related to the case were removed from Mr.
Hill's residence, Mr. Neita alleged. According to him, a letter
has been sent to the DPP but they are yet to get a response.
The Magistrate urged the DPP to respond to the request.
Mr. Hill, his brother, and Mr. Wilson will return to court on
July 17, 2008, Radio Jamaica notes.
Radio Jamaica says that some Cash Plus depositors showed up at
the courthouse to speak with Mr. Hill. They demanded answers as
to when they will be refunded their money. They didn't get an
answer as Mr. Hill and his bodyguards exited the courthouse
through a back entrance.
Cash Plus Limited is an investment club in Jamaica. It
collapsed in 2007 after the Financial Services Commission moved
to regulate its operations. The company is a financial arm of
the Cash Plus Group of Companies, a business conglomerate
established in 2002 by mortgage banker Carlos Hill. The company
offers its participants the opportunity to participate in the
group's ventures which include mergers and numerous
acquisitions.
In April this year, the Supreme Court of Jamaica placed Cash
Plus into receivership. Cash Plus admitted that it wouldn't be
able to pay its lenders until April 14. The firm has 40,000
lenders with loans totaling J$4 billion. Cash Plus was unable
to repay its investors. The Financial Services Commission said
it was informed by the attorney acting on behalf of Cash Plus
that the investment club lacked the funds to start the repayment
of the principal and interest owing to its investors.
PricewaterhouseCoopers' accountant Kevin Bandoian was appointed
as joint receiver-manager for Cash Plus.
DIGICEL LTD: Hires Junaid Munshi as Commercial Director-Jamaica
---------------------------------------------------------------
Digicel Ltd. has appointed 15-year telecommunications expert,
Junaid Munshi, to the position of Commercial Director for
Digicel Jamaica. Reporting to David Hunter, CEO of Digicel
Jamaica, Junaid is responsible for marketing, consumer sales and
Digicel's extensive distribution network, as well as supporting
the company's rollout into wireless broadband services for the
consumer market.
"Junaid is a strong addition to our team," said David Hunter,
CEO of Digicel Jamaica. "We are confident that given his
excellent track record in delivering results and his inherent
customer centric focus, Junaid will ensure Digicel maintains its
competitive edge by continuing to deliver to its customers the
best valued and best quality services amongst the competition."
Digicel Jamaica changed the face of mobile telecommunications
for the people of Jamaica when it launched in 2001 and now has
1.9 million customers in Jamaica and investments of more than
US$700 million. The company has already earmarked an additional
US$100 million investment for the next twelve months, focused on
further strengthening its network in Jamaica.
Junaid Munshi has a proven track record of delivering results in
telecommunication operations from fixed line, private network
operators and mobile across three diverse markets – South
Africa, Tanzania and Mozambique. He joins Digicel from Vodacom
Mozambique where he held the position of Managing Executive -
Marketing for two years. Prior to moving to Vodacom Mozambique,
Junaid was Marketing Director for Vodacom Tanzania. He has also
held senior management positions with CELL C – South Africa and
with Eskom Telecommunications South Africa.
A South African national, Junaid is a graduate of the Wits
Business School, Johannesburg, South Africa, from which he
received a Master of Business Administration (MBA). He also
holds a Graduate Diploma in Engineering Management from the
University of the Witwatersrand, Johannesburg, South Africa and
a Bachelor of Science (Electrical Engineering) from University
of Cape Town, Cape Town, South Africa.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao. Digicel finished FY2005 with
1.722 million total subscribers -- 97% pre-paid -- estimated
market share of 67% and revenues and EBITDA of US$478 million
and US$155 million, respectively.
* * *
In February 2007, Moody's Investors Service affirmed Caa2 senior
unsecured rating to Digicel Group Limited's US$1.4 billion
senior unsecured notes offering.
NAT'L COMMERCIAL: Court to Inform Attorneys for Ruling Schedule
---------------------------------------------------------------
Radio Jamaica reports that the three-member panel of judges at
the Appeal Court have reserved judgment in the legal battle
between the National Commercial Bank Jamaica Ltd. and Olint
Limited, saying it will inform attorneys next Wednesday when it
will rule on the case.
Radio Jamaica relates that the legal representatives of the bank
and Olint have "wrapped up their submissions." The two parties
have been presenting their arguments before the court this week.
As reported in the Troubled Company Reporter-Latin America on
May 15, 2008, the National Commercial's lead attorney Michael
Hylton said that the bank is in danger of prosecution under the
Money Laundering Act, Terrorism Prevention Act, and regulatory
action by the Bank of Jamaica, because of doing business and
maintaining a banking relationship with Olint. Olint's lead
attorney Gordon Robinson questioned the National Commercial's
haste to close the firm's accounts. Mr. Gordon claimed that the
tough stance taken by National Commercial "borders on contempt
of court." However, Mr. Gordon argued that there is no evidence
that the Bank of Jamaica or any overseas institution threatened
to sever ties with the National Commercial if it doesn't close
Olint's accounts. Mr. Gordon said that the National Commercial
hadn't charged Olint of being involved in any suspicious
transactions.
According to Radio Jamaica, Olint said it needs the protection
of the injunction pending the hearing of its lawsuit against the
National Commercial. The injunction prevents the National
Commercial from closing Olint's accounts. Olint went to the
Appeal Court after Supreme Court judge Roy Jones refused the
injunction and allowed the National Commercial to close the
accounts.
Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services. The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services. Founded in
1977, the bank primarily operates in West Indies and the UK.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
As reported in the Troubled Company Reporter-Latin America on
May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica-
based National Commercial Bank Jamaica Limited: long-term
foreign and local currency Issuer Default at 'B+'; short-term
foreign and local currency rating at 'B'; individual at 'D'; and
support at 4. The rating outlook on the bank's ratings is
stable, in line with Fitch's view of the sovereign's
creditworthiness.
NATIONAL COMMERCIAL: Courtney Campbell Resigns as Division Chief
----------------------------------------------------------------
Sabrina N. Gordon at The Jamaica Gleaner reports that the
National Commercial Bank Jamaica Ltd.'s Retail Banking Division
General Manager Courtney Campbell will leave the bank on
July 20, 2008.
The Gleaner relates that Mr. Campbell is the director
responsible for building out a strong retail-banking operation.
He supervises the development and distribution of products and
services across the National Commercial's 47-branch network and
through its electronic channels, like automated banking systems,
Internet, tele-banking and point-of-sales machines. His
division is responsible for credit-card services. He was
"handed a stronger portfolio under a reorganization that gave
new responsibilities to top performers in the group."
The report says that Mr. Campbell spent five years in charge of
retail banking and 23 years with the National Commercial.
According to Mr. Campbell, he received the chance at a new
venture that he couldn't refuse. "I am leaving because I have
decided to pursue an interesting and exciting new opportunity.
I am privileged to have worked with such a great team, but I
believe that it is the right time to take on this new
challenge," Mr. Campbell added.
According to The Gleaner, retail-banking division was the
National Commercial's top revenue earner last year. Its revenue
increased to J$15 billion in 2007, from J$12 billion in 2006.
The unit had managed to increase earnings in a year, to
J$1.9 billion from J$935 million. Segment assets rose to
J$114 billion, from J$92 billion.
Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services. The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services. Founded in
1977, the bank primarily operates in West Indies and the UK.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
As reported in the Troubled Company Reporter-Latin America on
May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica-
based National Commercial Bank Jamaica Limited: long-term
foreign and local currency Issuer Default at 'B+'; short-term
foreign and local currency rating at 'B'; individual at 'D'; and
support at 4. The rating outlook on the bank's ratings is
stable, in line with Fitch's view of the sovereign's
creditworthiness.
===========
M E X I C O
===========
CABLEMAS SA: Swings to MXN30.3 Mil. Net Income in 4Q 2007
---------------------------------------------------------
Cablemas, S.A. de C.V. reported its results for the four-month
period ending Dec. 31, 2007.
Cablemas Chief Executive Officer, Carlos M. Alvarez Figueroa
commented, "We closed the year with another strong quarter.
Revenue rose 15.7% with EBITDA up 8%. We continued to increase
market penetration across all services. On a year-on-year
comparison, Cable television subscribers rose 12.4%, high speed
internet 25.1% and IP telephony 63.7%."
Mr. Alvarez Figueroa added, "As expected, adjusted EBITDA margin
declined to 34.8% from 37.3% in fourth quarter 2006, as we
continued to rollout our IP Telephony services. For the full
year, adjusted EBITDA margin reached 37.5%, in line with our
expectations."
"We continued making progress with the roll out of IP telephony
and at year-end 2007 we were providing this service in nine
cities." closed Mr. Alvarez Figueroa.
Fourth Quarter 2007 Consolidated Results:
-- Net revenues increased 15.7%, or MXN94.7 million, during
the fourth quarter 2007 to MXN699.5 million.
-- Cable Television: The 7.3% growth in cable television
revenues, from MXN481.2 to MXN516.1 was principally due to
a 12.4% year-over-year increase in the number of
subscribers to 797,018 with a penetration rate of 35.4%.
Average monthly cable television revenues per subscriber
(ARPU) declined year-over-year to MXN219.6 from MXN227.2,
as a result of the 34% increase in Minibasic subscribers,
who pay lower monthly fees, while Basic subscribers
increased 4.8%. The average monthly net churn rates for
cable television increased 30 bps to 2.4%, but declined
from 2.5% in 3Q07.
-- High Speed Internet: The 27.6%, or Ps28.4 million, rise in
high-speed Internet revenues to MXN131.2 million resulted
mainly from a 25.1% increase in the number of subscribers
to 220,446, with a penetration rate of 12%. High-speed
Internet ARPU declined to MXN201.7 from MXN204.7 in fourth
quarter 2006 reflecting increased competition. Average
monthly net churn rates for high-speed Internet rose 40
bps to 4.5% in fourth quarter 2007, due to high
competition.
-- IP Telephony: IP telephony revenues for the quarter rose
by MXN35.4 million, to MXN33 million. As of Dec. 31,
2007, there were 41,062 IP telephony lines in service, up
from 25,089 as of Dec. 31, 2006. IP telephony ARPU for
fourth quarter 2007 was MXN264.9. This does not include
migration fees paid to Cablemas by Axtel for new
subscribers which, if included, would increase IP
telephony ARPU to MXN282.9 for fourth quarter 2007.
During the first nine months of 2006 IP telephony revenues
included costs and expenses charged to Axtel that were
reclassified and netted in IP telephony cost and expenses
as of fourth quarter 2006. This adjustment had no impact
on EBITDA.
Operating Profit
Operating profit for fourth quarter 2007 declined by 4.4%, or
MXN6.6 million, to MXN142.7 million, driven mainly by a 13.1%
increase in SG&A, which more than offset the 5.6% increase in
gross profit. Operating margin fell 430 bps to 20.4% from 24.7%
in fourth quarter 2006.
Cost of Services
Cost of Services for fourth quarter 2007 rose 29.5%, or MXN75
million.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses or SG&A, increased
MXN26.4 million, or 13.1% year-over-year to MXN227.3 million. As
a percentage of sales, however, SG&A declined 73 basis points to
32.5%, from 33.2% in fourth quarter 2006.
These increases were partially offset by a 1.9%, or MXN1.3
million, decline in selling expenses to MXN67.9 million,
principally due to lower fees and advertising expenses. The
company employed 1,215 salespersons as of Dec. 31, 2007 compared
to 1,000 as of Dec. 31, 2006.
Adjusted EBITDA
Adjusted EBITDA for fourth quarter 2007 increased 8%, or MXN17.9
million, to MXN243.5 million. The adjusted EBITDA margin fell
250 bps to 34.8%. The following table sets forth the
reconciliation between net income and adjusted EBITDA:
Comprehensive Financial Results, Net
Net comprehensive financial results were an expense of MXN93
million for the three-months ended Dec. 31, 2007, an increase of
MXN70.5 million over an expense of MXN22.5 million for fourth
quarter 2006. The increase primarily reflected a MXN43.5
million financial instrument loss in fourth quarter 2007
compared with a MXN8.7 million gain in fourth quarter 2006, and
a lower monetary position gain in fourth quarter 2007. The
financial instruments and foreign exchange non-monetary losses
were the result of the company's hedging strategy. This was due
to a depreciation of the Mexican peso against the U.S. dollar
and a decline in interest rates in Mexico, compared with 2006
levels.
Net Income
For fourth quarter 2007, Cablemas posted a net gain
MXN30.3 million, a MXN58.3 million gain, from a net loss of
MXN28 million in fourth quarter 2006. Net income margin rose to
4.3% from negative 4.6% for fourth quarter 2006.
About Cablemas SA
Headquartered in Mexico City, Cablemas SA de CV --
http://www.cablemas.com-- is the second largest Cable TV
service providers in Mexico servicing over 797,018 cable tv
subscribers and 220,446 high-speed Internet subscribers as well
as 41,062 IP telephony lines with 2,204,603 homes passed.
Cablemas is the concessionaire with the broadest coverage in
Mexico, operating in 46 cities throughout the country's oil,
maquiladora and tourist regions as of Dec. 31, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 6, 2008, Moody's Investors Service has placed Cablemas,
S.A. de C.V.'s B1 corporate family rating under review for
possible upgrade pending regulatory approval for Televisa (rated
Baa1 stable) to acquire a 49% equity stake of Cablemas.
TCR-LA reported on Aug. 6, 2007, Standard & Poor's Ratings
Services affirmed its 'BB-' long-term corporate credit rating
and its 'mxA-' long-term National Scale rating on Cablemas S.A.
de C.V. At the same time, S&P affirmed its 'BB-' rating on
Cablemas' US$175 million senior notes due 2015, with a stable
outlook.
In February 2007, Fitch Ratings has affirmed these ratings for
Cablemas with a Stable Rating Outlook:
-- Foreign Currency Issuer Default Rating 'BB-';
-- Local Currency Issuer Default Rating 'BB-';
-- US$175 million senior notes due 2015 'BB-'; and
-- National scale 'A(mex)'.
CABLEMAS SA: Net Income Up 220% to MXN226.2 Million in 2008
-----------------------------------------------------------
Cablemas, S.A. de C.V. reported its results for the 12-month
period ending Dec. 31, 2007.
Full Year 2007 Consolidated Results:
Net revenues increased 13.4%, or MXN320.4 million, during fiscal
year 2007 to MXN2,703.6 million.
-- Cable Television: The 9.2%, or MXN171.5 million, growth in
cable television revenues was principally due to a 12.4%
year-over-year increase in the number of subscribers to
797,018, with a penetration rate of 35.4%. This was
achieved despite a 2.6% decline in average monthly cable
television revenues per subscriber (ARPU) to MXN204. This
decline in ARPU was primarily the result of a 34% increase
in Minibasic subscribers, who pay lower monthly fees,
while Basic subscribers increased 4.8%. The average
monthly net churn rates for cable television declined 10
bps to 4.5% for year 2007 from 2.5% in 2006.
-- High Speed Internet: Revenues rose 31.2%, or MXN115.4
million, to MXN485.5 million. The rise in high-speed
Internet revenues resulted mainly from a 25.1% increase in
the number of subscribers to 220,446, with a penetration
rate of 12%. This was partially offset by an 8% decline
in high-speed Internet ARPU to MXN204 as a result of the
lower price/ lower-speed Internet (128 Kbps) subscriptions
increased at a faster rate than those of higher-speed
Internet (512 Kbps) and increased competition. Average
monthly net churn rates for high-speed Internet rose to
4.5% for full year 2007 from 3.9% in 2006 due to high
competition, service quality limitations in the Mayan
Riviera during the reconstruction of the network damaged
by Hurricane Wilma, and a slow client recovery following
the hurricane.
-- IP Telephony: IP telephony revenues for the period rose
63.1%, or MXN45.8 million, to MXN118.4 million. As of
Dec. 31, 2007, there were 41,062 IP telephony lines in
service, up from 25,089 as of Dec. 31, 2006. IP telephony
ARPU for full year 2007 fell 14.3% to MXN247.7. This does
not include migration fees paid to Cablemas by Axtel for
new subscribers which, if included, would increase IP
telephony ARPU to MXN270.7 for full year 2007.
Operating Profit
Operating profit for full year 2007 declined by 1.1%, or MXN6.4
million, to MXN550.1 million, driven mainly by a 12.5% increase
in SG&A, that more than offset the 6.6% rise in gross profit.
Operating margin declined to 20.3% from 23.3% in full year 2007,
principally due to higher cost of services as a percentage of
sales.
Cost of Services
Cost of Services for full year 2007 increased by 21.5%, or
MXN235.1 million.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses or SG&A, increased
MXN91.6 million, or 12.5% year-over-year to MXN826.8 million.
As a percentage of sales, SG&A declined 20 basis points to
30.6%. The absolute increase in SG&A principally reflected the
following factors:
Adjusted EBITDA
Adjusted EBITDA for full year 2007 increased 6.2%, or MXN59
million, to MXN1,012.6 million. The adjusted EBITDA margin
declined 250 bps to 37.5% from 40%. The following table sets
forth the reconciliation between net income and adjusted EBITDA:
Comprehensive Financial Results, Net
Net comprehensive financial results was an expense of MXN231.3
million for full year 2007, an increase of MXN89.1 million from
an expense of MXN142.2 million for full year 2006. The increase
mainly reflected a decline in interest income, higher interest
expenses as a result of the MXN834.5 million increase in gross
debt, a financial instruments gain in 2006 compared with a loss
in 2007 and a foreign exchange loss compared with a gain in
2006. The financial instruments and foreign exchange non-
monetary losses were the result of the company's hedging
strategy. This was due to a depreciation of the Mexican peso
against the US dollar and a decline in interest rates in Mexico,
compared with 2006 levels.
Net Income
For full year 2007, Cablemas posted a net gain MXN226.2 million,
a 220.1%, or MXN155.6 million, improvement compared to a
MXN70.7 million gain in full year 2006. Net income margin
improved to 8.4% from 3% for 2006.
Capex
Capital expenditures for full year 2007 declined 13.4%, or
MXN174.6 million, to MXN1,133.1 million from MXN1,307.7 million
in 2006. Capital expenditures principally related to
investments incurred in connection with the roll out of IP
telephony and to expand and upgrade Cablemas' network.
As of Dec. 31, 2007, Cablemas had a network of 13,964 km, of
which 83% was bidirectional, 88% was operating at or greater
than 550 MHz and 76% was operating at or greater than 750 MHz.
Debt Structure and Cash Flow
Consolidated gross debt as of Dec. 31, 2007, totaled MXN2,897.1
million, of which MXN2,576.9 million was long-term and MXN320.2
million was short term. Consolidated gross debt rose year-over-
year by 40.5%, from MXN2,062.6 million as of Dec. 31, 2006. This
was mainly the result of the 5-year term syndicated loan
facility for US$50 million entered with JP Morgan on Dec. 21,
2007 in connection with the financing of the acquisition of a
15% of the assets of Bestel, S.A. de C.V.
Net debt, which is calculated as total debt minus cash and cash
equivalents, increased year-over-year by 41.7% to MXN2,842.6
million, from 2,006.6 million as of Dec. 31, 2006. As of Dec.
31, 2007, Cablemas had a cash balance of MXN54.5 million.
Key Events
Cablemas Received Financing for Acquisition of in Bestel:
-- On Dec. 21, 2007, Cablemas entered into a five-year term
syndicated loan facility for US$50 million in connection
with the financing of the acquisition of 15% of the assets
of Bestel, S.A. de C.V.
-- Cablemas Completes Acquisition of 15% Stake in Bestel
-- On Dec. 13, 2007, Cablestar, S.A. de C.V. closed the
acquisition of the majority of the assets of Bestel.
Cablestar is owned 70% by Empresas Cablevision, S.A.B., in
which Televisa owns a 51% stake; 15% by Television
Internacional, S.A. de C.V., which is based in Monterrey;
and 15% by Cablemas, S.A. de C.V.
About Cablemas SA
Headquartered in Mexico City, Cablemas SA de CV --
http://www.cablemas.com-- is the second largest Cable TV
service providers in Mexico servicing over 797,018 cable tv
subscribers and 220,446 high-speed Internet subscribers as well
as 41,062 IP telephony lines with 2,204,603 homes passed.
Cablemas is the concessionaire with the broadest coverage in
Mexico, operating in 46 cities throughout the country's oil,
maquiladora and tourist regions as of Dec. 31, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 6, 2008, Moody's Investors Service has placed Cablemas,
S.A. de C.V.'s B1 corporate family rating under review for
possible upgrade pending regulatory approval for Televisa (rated
Baa1 stable) to acquire a 49% equity stake of Cablemas.
As reported in the TCR-LA on Aug. 6, 2007, Standard & Poor's
Ratings Services affirmed its 'BB-' long-term corporate credit
rating and its 'mxA-' long-term National Scale rating on
Cablemas S.A. de C.V. At the same time, S&P affirmed its 'BB-'
rating on Cablemas' US$175 million senior notes due 2015, with a
stable outlook.
In February 2007, Fitch Ratings has affirmed these ratings for
Cablemas with a Stable Rating Outlook:
-- Foreign Currency Issuer Default Rating 'BB-';
-- Local Currency Issuer Default Rating 'BB-';
-- US$175 million senior notes due 2015 'BB-'; and
-- National scale 'A(mex)'.
THERMADYNE HOLDINGS: Earns US$4.5 Mln in Quarter Ended March 31
---------------------------------------------------------------
Thermadyne Holdings Corporation reported results for the three
months ended March 31, 2008.
Net sales in the first quarter of 2008 increased 12.7% to
US$130.8 million, compared to the 2007 first quarter. Excluding
the impact of foreign currency translations, net sales increased
7.9%. International sales increased 23.6% (11.2% in local
currency) led by the Asia Pacific region with a 13.7% increase
on a local currency basis. Sales of all product lines increased
with demand continuing to be particularly strong for the
company's new Cutmaster manual plasma cutting units and
specialty hard facing products. Sales of both the Company's
plasma cutting and filler metal product lines increased
approximately 20%.
Gross margin in the first quarter of 2008 was 32.3% of net
sales, compared to 32.6% of net sales in the prior-year first-
quarter period. The decline from the prior-year's first quarter
was due to the ongoing effects of commodity cost increases over
the twelve-month time period. This result was better than the
gross margin of 31.2% the company recorded for the year 2007,
and reflects a continuation of the longer-term progress the
Company is making to control costs.
Paul D. Melnuk, Thermadyne's Chairman and Chief Executive
Officer commented: "The better-than-expected sales growth is
attributable to our improved customer service, more effective
new product introductions and strong market demand. Gross
margins also continued to build on the improving trend that
began in 2007. Our continuous improvement (TCP) process cost
savings, the benefits of more effective procurement practices
and the value from operating leverage in the 2008 first-quarter
period largely offset the double-digit material inflation that
occurred across most commodities we purchase. Further, the
April 1, 2008 price increase will help offset the trend of
rising commodity prices in the second quarter and beyond."
Selling, general and administrative costs were US$27.5 million,
or 21.0% of sales, in the first quarter of 2008, compared to
US$26.0 million, or 22.4% of sales, in last year's first
quarter. New product launches and expanded new product
development activities, as well as expansion of the
international sales and global operations capabilities,
contributed to the 2008 first quarter increase in expenses,
compared to the 2007 first quarter.
Other Income and Expense Items in the First Quarter of 2008
Interest costs of US$5.3 million were US$1.7 million less than
the prior-year's first quarter. The average indebtedness was
11% less than in the prior-year's first quarter and the
effective interest rate declined 170 basis points. This decline
in the effective interest rate reflects the combined benefit of
the lower Libor rates which impact approximately 40% of the
Company's total debt and the reduced interest rate grids for the
Working Capital and the Second Lien Facilities, as a result of
the amendments to the Agreements in June 2007. The effective
interest rate in the first quarter of 2008 includes the 1.25%
Special Interest payment adjustment applicable to the Company's
US$175 million Senior Subordinated Notes. This interest payment
adjustment declined to 0.75% effective April 1, 2008, as a
result of the company's reduced leverage ratio.
For the 2008 first quarter, the effective income tax rate was
44% due to the inclusion of certain foreign earnings without the
recognition of the related benefit of foreign tax credits that
are carried forward. In the prior-year first quarter, the
effective income tax rate was 64% also as a result of the
inclusion of certain foreign earnings without the recognition of
the related benefit of foreign tax credits that are carried
forward. Due to the use of net operating loss carryovers
available to offset U.S. taxable income, the Company estimates
it will pay income taxes in 2008 at the rate of approximately
22%.
For the first quarter of 2008, net income from continuing
operations was US$4.7 million, or US$0.35 per diluted share. In
comparison, for the first quarter of 2007 net income from
continuing operations was US$1.3 million, or US$0.10 per diluted
share. Included in net income in the 2008 first quarter were
losses from discontinued operations of US$0.2 million, or
US$0.01 net loss per diluted share. This compares to income of
US$0.1 million, or US$0.01 net income per diluted share, in the
2007 first quarter.
For the first quarter of 2008, net income was US$4.5 million, or
US$0.34 per diluted share, compared to a net income of US$1.4
million, or US$0.11 net income per diluted share, in the 2007
first quarter.
Operating activities of the company provided US$2.9 million of
cash in the first quarter of 2008, while in the first quarter of
2007, the company used US$20.3 million for operating activities.
The first quarter is traditionally a period of high cash
requirements for accounts receivable and inventory builds. The
significantly improved cash flows during the first quarter of
2008 are due to improvement in all components of working capital
management. In particular, inventories declined US$11 million
from the prior-year quarter despite the growth in the business.
Inventory turns improved to 3.9 times per year versus 3.1 times
in the prior-year first quarter.
During the quarter, the company repaid US$7 million of the
Second Lien Facility to satisfy the "Excess Cash Flow"
requirement of the Senior Subordinated Notes Indenture. As of
March 31, 2008, the company had combined cash and availability
under its revolver of US$67 million.
In the first quarter of 2008, Operating EBITDA from continuing
operations improved 18% to US$17.7 million, or 13.5% of net
sales, compared to US$15.0 million, or 12.9% of net sales, in
the first quarter of 2007. Including our discontinued
operations for the first quarter of 2008, Operating EBITDA, as
adjusted, was US$17.5 million.
Mr. Melnuk stated: "In the first quarter of 2008, sales,
profitability and cash flow comparisons all improved, building
on the momentum realized throughout 2007. Our efforts to
achieve better performance levels in production, customer
service and new product introductions are generating positive
customer feedback and contributing to the improved results. The
broad-based global demand for our products is continuing to
drive sales in the second quarter and we anticipate total
Company sales growth of 8-10% in the quarter over last year's
second-quarter levels. From what we can determine, the growth
in demand is a result of major infrastructure spending,
particularly in mining, energy, agriculture, transportation and
defense.
"We are pleased with the many positive comments we have received
from our customers relating to our level of service. In an
effort to further enhance this high level of service, we are
striving to instill a customer-focused mindset throughout the
Company. In addition to our ongoing emphasis on improved
customer service, we are beginning to work on a number of
longer-term initiatives to build our core brand and product
strength further. Specifically, we are expanding our
international sales capabilities to help pursue the growth
opportunities in several markets, and are working on a number of
product innovations and redesigns that offer very promising
market potential. These strategies, combined with our efforts
in cost reduction, working capital efficiency and debt
reduction, should contribute to both near-term and-longer term
profitability and cash flow growth, enhancing value for our
shareholders," commented Mr. Melnuk.
About Thermadyne
Headquartered in St. Louis, Missouri, Thermadyne Holdings Corp.
(NASDAQ: THMD) -- http://www.Thermadyne.com/-- manufactures and
markets metal cutting and welding products and accessories under
a variety of leading premium brand names including Victor(R),
Tweco(R) / Arcair(R), Thermal Dynamics(R), Thermal Arc(R),
Stoody(R), TurboTorch(R), Firepower(R) and Cigweld(R).
Thermadyne has subsidiaries outside the United States which
inlucdes, among others, Australia, Philippines, Malaysia,
Indonesia, England, Italy, Japan, Mexico and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 5, 2008, Standard & Poor's Ratings Services raised its
corporate credit rating on Thermadyne Holdings Corp. to 'B-'
from 'CCC+'. At the same time, S&P raised the ratings on the
subordinated notes to 'CCC' from 'CCC-'.
TIMKEN CO: Will Provide Bearing Services to America Latina
----------------------------------------------------------
The Timken Company has signed a long-term agreement to operate a
rail bearing reconditioning unit for America Latina Logistica
S.A. (ALL), the largest independent railroad operation in
Brazil. The reconditioning will be housed on site at ALL's
plant in Sorocaba.
Timken's bearing engineers will operate the unit, providing the
equipment and technical knowledge required to return ALL's used
bearings to like-new condition. Timken will utilize its
proprietary software to analyze damaged bearings, measuring
variables such as bearing end-play and loads. The software
will also help ensure proper remanufacture and installation.
The result is a reconditioned bearing that performs like a new
bearing but at a considerable cost savings.
"Having Timken engineers and their bearing service capabilities
on site will contribute to increased productivity for ALL and
longer intervals between maintenance cycles," said Roberto
Monteiro, director of operations for ALL.
"Timken's rail reconditioning business has helped logistics and
transportation companies around the world maximize their
investment in rail bearings. These operators not only save
money by having our engineers recondition their bearings, but
they also benefit from immediate service on site as well as
enhanced maintenance practices," said Hans Landin, Timken's
director of rail.
About America Latina
America Latina Logistica S.A. is the largest independent
railroad operation in Brazil and in Latin America with almost
21,000 km (13,020 miles) of tracks. ALL has invested in
technology, safety, track repair, constructions of crossing
areas and recovery and acquisition of assets. The company has
nearly 1,000 locomotives, 29,500 freight cars and 1,300 road
vehicles.
About Timken Co.
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR)
-- http://www.timken.com/-- is a manufacturer of highly
engineered bearings and alloy steels. It also provides related
components and services such as bearing refurbishment for the
aerospace, medical, industrial and railroad industries. The
company has operations in Argentina, Australia, Belgium, Brazil,
Canada, China, Czech Republic, England, France, Germany,
Hungary, India, Italy, Japan, Korea, Mexico, Netherlands,
Poland, Romania, Russia, Singapore, South America, Spain,
Taiwan, Turkey, United States, and Venezuela and employs 27,000
employees.
* * *
The Timken Company still carries Moody's Investors Service's Ba1
senior unsecured deb rating on US$300 million Medium Term Notes,
Series A.
XERIUM TECH: Posts US$4.7 Million Net Loss in First Quarter
-----------------------------------------------------------
Xerium Technologies, Inc. reported results for the first quarter
ended March 31, 2008.
Highlights for the quarter include:
-- Net sales for the first quarter of 2008 were
US$159.0 million, a 10.4% increase from net sales of
US$144.0 million for the first quarter of 2007.
Excluding currency effects, first quarter 2008 net sales
increased 2.4% from the first quarter of 2007, with
growth of 2.7% and 1.6% in the clothing and roll covers
segments, respectively.
-- Income from operations increased by 21.2% to
US$20.6 million in the first quarter of 2008 from
US$17.0 million in the first quarter of 2007.
Restructuring and impairment expenses in the first
quarter of 2008 were US$0.5 million, as compared to
US$4.1 million in the first quarter of 2007.
-- Xerium recorded a net loss of US$4.7 million, or US$0.10
per diluted share, for the first quarter of 2008.
Significant items contributing to the net loss were a
US$12.2 million pre-tax, non-cash charge to interest
expense reflecting the mark-to-market decrease in the
fair value of the company's interest rate swaps in the
first quarter of 2008, compared to a US$1.6 million
charge in the first quarter of 2007 and a provision for
income taxes of US$3.6 million in the first quarter of
2008, compared to US$1.4 million in the first quarter of
2007. Net income for the first quarter 2007 was
US$3.0 million, or US$0.07 per diluted share.
-- Net cash generated by operating activities was
US$29.8 million for the first quarter of 2008, compared
to US$15.3 million in the same quarter last year,
resulting primarily from improvements in working
capital.
-- Adjusted EBITDA (as defined in the Company's credit
facility) was US$34.8 million for the first quarter of
2008, compared to US$32.8 million for the first quarter
of 2007.
-- Cash on hand at March 31, 2008 was US$31.0 million
compared to cash on hand of US$17.7 million at March 31,
2007. Cash on hand at December 31, 2007 was
US$24.2 million. Total debt principal and interest
payments amounted to US$24.8 million during the first
quarter of 2008 as compared with US$13.7 million during
the first quarter of 2007.
-- As a result of the Company's credit facility issues,
company's balance sheet as of March 31, 2008 includes a
reclassification to current debt of US$658.8 million,
the portion of the long-term debt under the senior
credit facility that would have been in default of the
credit agreement had the Company not obtained the
temporary waiver. Additionally, because this debt is
potentially payable prior to the expiration of the
underlying interest rate swaps, hedge accounting under
SFAS No. 133 was no longer applicable for the Company's
interest rate swaps and the mark-to-market decrease in
their fair value of US$12.2 million was recorded as a
non-cash charge to interest expense during the first
quarter of 2008.
Credit Facility Update
Xerium's credit facility requires the company to meet certain
operating requirements and financial ratios in order to avoid a
default or event of default under the facility. Although the
Company expects it would generate cash flow from operations
sufficient to service the debt under the credit facility prior
to the stated maturity of the debt if there is not otherwise an
event of default and acceleration of the maturity of the debt,
the Company did not satisfy the leverage ratio covenant for the
period ended March 31, 2008. Failure to satisfy the covenant
would constitute a default under its credit facility absent a
waiver from its lenders.
Going Concern Statement
As previously reported, Xerium's independent registered public
accounting firm included an explanatory paragraph in its report
on the 2007 consolidated financial statements related to the
uncertainty in the Company's ability to continue as a going
concern. The going concern notation also constitutes a default
under the Company's credit facility absent a waiver.
Waiver
On April 8, 2008, the company obtained a temporary waiver from
the lenders for these defaults. The waiver is in effect until
May 31, 2008. Because the existing financial ratio covenants
become more restrictive over time, the company does not expect
to be in compliance with certain financial ratio covenants for
future periods as well. The company is currently seeking to
secure a permanent waiver and to amend the financial covenants
and other parameters in its credit facility.
As disclosed on March 18, 2008, the Company determined not to
declare a cash dividend on its common stock for the first
quarter of 2008. The credit facility waiver described above
amends the credit facility to prohibit the payment of dividends
on the Company's common stock.
Stephen Light, President and Chief Executive Officer of Xerium
Technologies, said, "Our operating results for the first quarter
were solid, despite ongoing challenges in portions of the paper
industry. Importantly, net cash generated by operating
activities improved significantly as our initial efforts to
enhance working capital began to take hold."
He added, "We remain in active discussions with our lending
group to secure amendments to the Company's credit facility to
avoid default and allow Xerium greater financial and operating
flexibility going forward. In concert with these discussions,
we are finalizing a revised, long-range business plan designed
to increase cash generation over the next few years through
improved operating efficiencies and working capital reductions,
and to apply that cash to the repayment of debt. We believe the
achievement of these measures will significantly enhance the
Company's operations and results in the future."
Additional Quarterly Financial Highlights
-- Capital expenditures for the first quarter of 2008 were
US$12.1 million, compared to US$7.1 million for the first
quarter of 2007. Approximately US$9.8 million of capital
expenditures in this year's quarter were directed toward
projects designed to support the company's growth
objectives, with the remaining US$2.3 million used to
sustain the company's existing operations and facilities.
Less than US$1 million of new capital expenditures was
committed during the quarter.
-- The company recorded a foreign exchange gain in the first
quarter of 2008 of US$3.5 million, compared to a foreign
exchange loss of US$0.4 million in the first quarter of
2007. Foreign exchange gains and losses are primarily the
result of intercompany activity and hedging thereon.
-- The company recorded a provision for income taxes of
US$3.6 million in the first quarter of 2008 resulting
primarily from tax liability in countries outside of the
United States, compared to US$1.4 million in the first
quarter of 2007.
-- During the first quarter of 2008, Xerium made total debt
principal repayments of US$12.0 million, compared to
US$6.0 million in the first quarter 2007.
About Xerium
Headquartered in Youngsville, North Carolina, Xerium
Technologies Inc. (NYSE: XRM) -- http://xerium.com/--
manufactures and supplies two types of consumable products used
primarily in the production of paper: clothing and roll covers.
The company, which operates around the world under a variety of
brand names, utilizes a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products integral to production, all designed to
optimize performance and reduce operational costs. With 35
manufacturing facilities in 15 countries around the world,
Xerium has approximately 3,700 employees.
In Europe the company has subsidiaries in Austria, Italy,
Germany, Sweden, Spain, the United Kingdom, Finland, France,
Switzerland and Ireland. Xerium also has subsidiaries in Asia,
particularly in China, Hong Kong, Australia, Japan and Vietnam.
Three subsidiaries are meanwhile located in Central and South
America, specifically Brazil, Mexico and Argentina.
As reported in the Troubled Company Reporter-Latin America on
April 23, 2008, Ernst & Young LLP raised substantial doubt on
the ability of Xerium Technologies, Inc., to continue as a going
concern after it audited the company's financial statements for
the year ended Dec. 31, 2007.
===========
P A N A M A
===========
AES CORP: To Offer US$600 Mil. Unsecured Senior Notes Due 2020
--------------------------------------------------------------
The AES Corporation is planning to offer approximately
US$600 million aggregate principal amount of senior unsecured
notes due 2020 in a private placement. The senior notes will
not be registered under the Securities Act of 1933, or any state
securities laws. Therefore, the senior notes may not be offered
or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act of 1933 and any applicable securities laws. This
announcement is neither an offer to sell nor a solicitation of
an offer to buy the senior notes.
The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a
power company with operations in South America, Europe, Africa,
Asia and the Caribbean. The Company generates 44,000 megawatts
of electricity through 124 power facilities, and delivers
electricity through 15 distribution companies.
AES has been in Eastern Europe for over ten years, since it
acquired three power plants in Hungary in 1996. Currently, AES
has two distribution companies in Ukraine, which serve
1.2 million customers and generation plants in the Czech
Republic and Hungary. AES is also the leading company in biomass
conversion in Hungary, generating 37% of the nation's total
renewable generation in 2004. The company has Latin America
operations in Argentina, Brazil, Chile, Dominican Republic, El
Salvador and Panama.
AES's business group in Asia & Middle East is comprised of
electric utilities and generation plants in China, India,
Kazakhstan, Oman, Qatar, Pakistan and Sri Lanka. Fuels include
coal, diesel, hydro, gas and oil. AES has been in the region
since 1994, when it acquired the Cili generation plant in China.
* * *
The AES Corporation still carries Moody's Investors Service's
Corporate Family Rating and the senior unsecured rating assigned
at B1. The company also carries Fitch Ratings' 'BB/RR1' rating
on US$500 million issue of senior unsecured notes due 2017.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2008, AES Corporation is in default under its senior
secured credit facility and its senior unsecured credit facility
due to a breach of representation related to its financial
statements as set forth in the credit agreements. As a result,
US$200 million of the debt under the company's senior secured
credit facility will be classified as current on the balance
sheet as of Dec. 31, 2007. There are no outstanding borrowings
under the senior unsecured facility.
=======
P E R U
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GRAN TIERRA: To Shoot 2D Seismic on Two Blocks in Peru Next Year
----------------------------------------------------------------
Gran Tierra Energy Inc's Chief Executive Officer Dana Coffield
said in a Web cast that the firm will shoot 2D seismic on blocks
122 and 128 in Peru in 2009, Business News Americas reports.
Mr. Coffield commented to BNamericas, "There's a very long
environmental impact assessment process we have to go through.
We have to evaluate the environment both in a dry season and a
wet season and this process is expected to take 18 months." ran
Tierra would start the drilling in 2010, Mr. Dana added.
The two blocks are in the Maranon basin. Block 122 covers 1.2
million acres and block 128 some 2.2 million acres. Gran Tierra
operates that blocks and holds a 100% working interest in these
blocks, BNamericas states.
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.
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." In 2007, the company booked a net loss
of US$8.5 million widening the US$5.8 million loss incurred in
2006.
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.
====================
P U E R T O R I C O
====================
DIRECTV GROUP: Subsidiaries Close US$2.5 Billion Debt Financing
---------------------------------------------------------------
The DIRECTV Group, Inc.'s subsidiaries, DIRECTV Holdings LLC and
DIRECTV Financing Co., Inc., have completed their previously
announced US$2.5 billion debt financing.
This financing consists of US$1.5 billion in 7-5/8% senior notes
due 2016 and US$1.0 billion of incremental floating rate term
loans under their existing senior secured credit facility. The
net proceeds of these financings are available for general
corporate purposes, including payment of a dividend to DIRECTV
Group, to be used by it to fund purchases of its stock under its
recently announced US$3 billion share repurchase program. The
senior notes were sold pursuant to Rule 144A and Regulation S
under the Securities Act and have not been registered in the
United States under the Securities Act or in any other
jurisdiction and may not be offered or sold in the United States
absent registration on an applicable exemption from the
registration requirements.
Headquartered in El Segundo, California, The DirecTV Group Inc.
(NASDAQ:DTV) -- http://www.DirecTV.com/-- provides digital
television entertainment in the United States and Latin America.
The company's two business segments, DirecTV U.S. and DirecTV
Latin America, are engaged in acquiring, promoting, selling
and/or distributing digital entertainment programming via
satellite to residential and commercial subscribers. DirecTV
Holdings LLC and its subsidiaries are a provider of direct-to-
home digital television services and a provider in the multi-
channel video programming distribution industry in the United
States. DTVLA is a provider of DTH digital television services
throughout Latin America. In January 2007, the company acquired
Darlene Investments LLC's 14.1% equity interest in DirecTV Latin
America, LLC. DirecTV Latin America LLC is a multinational
company, which, as a result of this transaction, became a wholly
owned subsidiary of the company. The DIRECTV Latin America
segment provides digital direct-to-home digital television
services to approximately 1.6 million subscribers in 27
countries, including Brazil, Argentina, Venezuela, and Puerto
Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 9, 2008, Moody's Investors Service assigned DIRECTV
Holdings, LLC's proposed new US$1 billion senior secured Term
Loan C maturing in 2013, and US$1.35 billion senior unsecured
notes maturing in 2016, which may increase to US$1.5 billion,
Baa3 (LGD2-19%) and Ba3 (LGD5-73%) ratings, respectively, and
affirmed all existing ratings for the company. Moody's also
assigned the company an SGL-1 speculative grade liquidity
rating and changed its ratings outlook from negative to stable.
As of Feb. 9, 2008, The DIRECTV Group Inc. still carries
Standard & Poor's Ratings Services' 'BB' corporate credit and
'BB-' senior unsecured debt rating given on April 3, 2007. The
outlook remains stable.
PATHEON INC: Eric Evans Named Chief Financial Officer
-----------------------------------------------------
Patheon Inc. yesterday disclosed these executive management
appointments:
-- Eric W. Evans as Chief Financial Officer of Patheon Inc.,
-- Paul M. Garofolo as Senior Vice President and Chief
Information Officer,
-- Warren A. Horton as Vice President Global Quality
Operations, and
-- Doaa A. Fathallah as Senior Vice President, General
Counsel Europe and Global Pharmaceutical Development
Services.
Wes Wheeler, Patheon's Chief Executive Officer and President,
provided a brief explanation of the changes:
"Eric Evans will be responsible for managing the company's
financial function, and will work with me and our executive team
as we create strategic and operational improvements in the
business."
Eric brings over 24 years experience in various financial
leadership roles in the pharmaceutical industry following a
significant career in the steel industry. He joins Patheon most
recently from Novartis AG. a provider of healthcare solutions
including medicines, generic pharmaceuticals, preventative
vaccines and diagnostic tools, and consumer health products. He
has experience in all aspects of finance as well as extensive
operating, analytical, leadership, and business development
experience.
John H. Bell, Chief Financial Officer, will leave Patheon at the
end of the month to pursue new opportunities. "The company owes
John Bell a great deal for his stewardship of our finance
organization through a difficult period at Patheon. We wish him
the best" said Wheeler.
"Paul Garofolo is a proven leader with a track record of
developing and stewarding long-term global Information
Technology strategies and implementing new applications and
processes. I am confident he will lead Patheon to cost
effective global IT platforms. Paul will have responsibility
for Information Technology globally including the development
and implementation of a five year global IT Master Plan for
Patheon. In addition he will assume responsibility for ‘The
Patheon Advantage', Patheon's lean six sigma excellence program"
said Wheeler.
Paul has an extensive 14 year background in information
technology and management consulting most recently with Valeant
Pharmaceuticals where he was the Chief Information Officer. He
has led all aspects of global IT organizations including
development and implementation of long-term IT strategies as
well as implementation of new applications and processes.
"Doaa Fathallah will be responsible for all legal matters for
Europe and Global Pharmaceutical Development Services" Wheeler
continued.
Doaa joins Patheon from Valeant Pharmaceuticals International
where she was General Counsel Europe, Middle East & Africa
(EMEA) and was responsible for all legal matters in the EMEA
region. In addition to her corporate experience Doaa has
extensive experience in all aspects of corporate and business
law from her time in private practise where she represented
privately held and publically traded companies.
"Warren Horton will be responsible for establishing a new
Quality System to be consistently applied at all Patheon sites.
He will also ensure that the company meets all regulatory
requirements for quality and compliance."
Warren brings over 10 years experience in the pharmaceutical
industry to Patheon most recently from DSM Pharmaceuticals Inc.
where he was responsible for quality assurance and regulatory
affairs. In addition he has experience dealing with a large
variety of dosage forms, efficient production and quality
control and assurance in a variety of liquid and semi solid
topical products.
"I am delighted to welcome these executives to the Patheon
leadership team. One of my near-term priorities has been to
strengthen and rebuild the executive team for Patheon. These
individuals bring proven track records, expertise and strong
leadership" Wheeler concluded.
About Patheon Inc.
Headquartered in Mississauga, Ontario, Patheon Inc. (TSX: PTI)
-- http://www.patheon.com/-- provides drug development and
manufacturing services to the international pharmaceutical
industry. Patheon operates a network of 10 manufacturing and
six development facilities in the United States, Canada and
Europe, employing more than 4,700 people and serving a customer
base of 270 pharmaceutical and biotechnology companies. The
company has operations is France, Italy, the United Kingdom and
Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 25, 2008, Moody's Investors Service affirmed the B2
Corporate Family Rating of Patheon Inc. and changed the ratings
outlook to negative from stable. Moody's also revised the
rating on the US$75 million secured asset based revolver to Ba3
from B1 in accordance with Moody's Asset-Based Loan Rating
Methodology and reflecting Moody's belief that the instrument
would have very good recovery in a distressed scenario. The B1
rating on the US$150 million senior secured term loan B remains
unchanged.
=================
V E N E Z U E L A
=================
PRIDE INTERNATIONAL: Earns US$240.7 Million in 1st Quarter 2008
---------------------------------------------------------------
Pride International, Inc. reported financial results for the
three months ended March 31, 2008, achieving record revenues and
income from continuing operations, which increased 85% when
compared to the same three months in 2007.
Income from continuing operations totaled US$136.1 million, or
US$0.77 per diluted share, on revenues of US$557.4 million
during the first quarter of 2008. The results compared to
income from continuing operations of US$73.7 million, or US$0.42
per diluted share, on revenues of US$471.0 million, during the
three months ended March 31, 2007. Results for the first
quarter of 2008 included an after-tax gain of US$11.2 million,
or US$0.06 per diluted share, relating to the sale of the
Company's 30% interest in an Eastern Hemisphere-based land
drilling joint venture.
The company's net income for the three months ended
March 31, 2008, was US$240.7 million, or US$1.35 per diluted
share, compared to net income of US$101.7 million, or US$0.58
per diluted share, for the corresponding three months in 2007.
Results for the first quarter of 2008 included income from
discontinued operations of US$104.6 million, or US$0.58 per
diluted share, principally relating to the gain from the sale of
our three tender-assist rigs in the first quarter of 2008.
The transaction resulted in an after-tax gain of US$116.2
million, of which US$102.0 million was recognized during the
current quarter with the balance deferred. By agreement with
the new owner, the company will continue to operate one of the
three tender-assist rigs through December 2008, over which time
the deferred gain will be recognized.
Cash flows from operating activities totaled US$94.2 million
during the three months ended March 31, 2008 while proceeds from
the sale of non-strategic assets were US$225.8 million. Capital
expenditures in the quarter were US$318.8 million, primarily due
to the construction of three ultra-deepwater drillships and the
completion of the upgrade project for the semisubmersible rig
Pride Mexico.
Total debt at March 31, 2008 was US$1,045.7 million, down
US$145.8 million from total debt of US$1,191.5 million at
Dec. 31, 2007. The decrease was due primarily to the repayment
of the outstanding principal due under the drillship loan
facility collateralized by the drillships Pride Africa and Pride
Angola. Net debt (total debt less cash and cash equivalents of
US$752.7 million) was US$293.0 million at March 31, 2008.
Louis A. Raspino, President and Chief Executive Officer of Pride
International, Inc., stated, "Our performance during early 2008
is noteworthy in several respects. Our operations execution
remained excellent, supporting the continuation of strong
financial results in the first quarter of 2008 following a
record year in 2007. Our engineering and technical team, one of
the most experienced in the industry, successfully completed
four projects in the first quarter, including the upgrade of the
semisubmersible rig Pride Mexico, which is currently transiting
to Brazil to commence a five-year contract with Petrobras.
During 2008, our marketing efforts have captured contracts
valued at approximately US$5.2 billion, inclusive of bonus
opportunities and contract awards for all three of our ultra-
deepwater drillships under construction. Finally, the
divestiture of non-strategic assets continued to progress with
the first quarter 2008 closing of the sale of three tender-
assist rigs.
"These accomplishments have been critical in supporting our
strategic transformation to a contract driller focused entirely
offshore, with an emphasis on the deepwater sector. With the
transition of Pride largely complete, we remain committed to
expanding our ownership of deepwater assets and to delivering
sustainable long-term shareholder value."
About Pride International
Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 64 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 10 platform rigs, five managed deepwater rigs
and seven Eastern Hemisphere-based land rigs. The company has
subsidiaries in France, Netherlands, Venezuela, Bahamas, Mexico,
Malaysia and Singapore, among others.
* * *
To date, Pride International carries Standard & Poor's Ratings
Service's BB+ corporate credit rating. The company's unsecured
debt is also rated BB+ by S&P. The outlook on the ratings is
stable.
PETROLEOS DE VENEZUELA: Will Launch Gas Exports From New Trains
---------------------------------------------------------------
Petroleos de Venezuela SA's Offshore Joint Venture General
Manager Ruben Figuera told Business News Americas that the firm
will start liquefied natural gas exports from two new trains by
2014.
The exports are part of the Delta Caribe Oriental project,
BNamericas says, citing Mr. Figuera. Each train in the Cigma
liquefaction facility will have 4.7 million tons per year
capacity. Each will be developed with pipelines to connect them
to the production fields, Mr. Figuera said at the Institute of
the Americas' XVII Latin America energy conference in La Jolla,
California.
BNamericas notes that the Mariscal Sucre field will supply the
first train, which will require two full containment tanks with
160,000 cubic meter capacity each. Petroleos de Venezuela will
run the field.
Mr. Figuera told BNamericas that 50% of Mariscal Sucre's total
14.7 trillion cubic feet proven reserves will be committed to
the domestic market. The other 50% will go to the liquefaction
terminal, Mr. Figuera added.
According to BNamericas, the second train will get its gas from
the Deltana platform's block 2. Deltana will be run in a joint
venture. It has 6.4 trillion cubic feet of proven reserves,
with block 2 responsible for 5.7 trillion cubic feet.
Petroleos de Venezuela is considering a third train for the
project, BNamericas adds.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.
Also in March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.
On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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Maryland USA. Tara Eliza E. Tecarro, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
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