T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, May 19, 2008, Vol. 9, No. 98 Headlines A R G E N T I N A AGROPECUARIA MONTECARLO: Files for Reorganization in Court ALITALIA SPA: Posts EUR21483 Mln in Pretax Loss for Q1 2008 ALITALIA SPA: Berlusconi Vows to Save Firm Sans Nationalization ALITALIA SPA: Giovanni Sabatini Quits from Board CHRYSLER LLC: Reaches Tentative Settlements With CAW Officials MERCADEO SA: Files for Reorganization in Buenos Aires Court NORGAS Y AMERICAN: Proofs of Claim Verification Is Until July 7 PETROBRAS ENERGIA: Earns ARS261 Mln in First Qtr. Ended March 31 SABATINO TONELO: Trustee Verifies Proofs of Claim Until June 24 SERTEX SRL: Trustee Verifies Proofs of Claim Until June 11 SDCOM SA: Proofs of Claim Verification Deadline Is June 4 TALLER GOWSIL: Proofs of Claim Verification Is Until June 23 TELECOM ARGENTINA: Telecom Italia To Keep Local Partner for Firm VISTEON CORP: Names Donald Stebbins as Chief Executive Officer A R U B A VALERO ENERGY: El Paso Note Assumption Cues S&P to Cut Rating VALERO ENERGY: Petrobras Postpones Acquisition of Firm's Plant B A H A M A S GLOBAL ENVIRONMENTAL: Will Supply Chinese Coking Coal to WASP B E R M U D A ARCH CAPITAL: M. Lyons Replaces R. Jones as CEO for U.S. Unit INTELSAT LTD: March 31 Balance Sheet Upside-Down by US$722 Mil. XL CAPITAL: Executive to Present at Lehman Brothers Conference B R A Z I L ACXIOM CORP: Posts US$58.2 Mil. Net Loss in First Quarter 2008 AES CORP: Fitch Rates Senior Unsecured Notes 'BB/RR1' BANCO DAYCOVAL: Improved Capital Triggers S&P's Positive Outlook BANCO DO BRASIL: Will Incorporate Banco Popular do Brasil CAIXA ECONOMICA: Buys 9,600 Diebold ATMs for Brazilian Banks CAIXA ECONOMICA: Ties Up With Tecnisa S.A. in Providing Loans COMPANHIA SIDERURGICA: IRB-Brasil Must Provide Reinsurance COMPANHIA ENERGETICA: Suspends Privatization FERRO CORP: To Increase Price of Advanced Polymer Alloys FERRO CORP: Sales Up 15% to US$607.2 Million in First Quarter GENERAL MOTORS: Reaches Tentative Settlements With CAW Officials GENERAL MOTORS: CAW Balks at Notice of Windsor Plant Closure HEXION SPECIALTY: March 31 Balance Sheet Upside Down by US$1.3BB GRAFTECH INT'L: Good Performance Cues S&P to Lift Rating to BB- JABIL CIRCUIT: Moody's Rtg. Unmoved by US$150 Mil. Notes Add-On JBS SA: May Pare Beef Output & Fire Argentine Workers POLYPORE INTERNATIONAL: To Buy Yurie-Wide Shares for US$23 Mil. SHARPER IMAGE: Hilco Joint Venture Named Stalking Horse Bidder SUN MICROSYSTEMS: Will Launch Sun Equity in Latin America UAL CORP: Sets Pricing Alliance With Continental Airlines UAL CORP: Name & Chicago HG Likely to Remain After USAir Merger C A Y M A N I S L A N D S GREENFORD LTD: Deadline for Proofs of Claim Filing Is May 21 PARMALAT SPA: 1st Qtr Profit Down on Lesser Legal Settlements PARMALAT SPA: Gives Updates on Legal Actions Against Citigroup PEQUOT GLOBAL: Deadline for Proofs of Claim Filing Is May 22 PEQUOT GLOBAL: Proofs of Claim Filing Deadline Is Until May 22 QI CAPITAL: Will Hold Final Shareholders Meeting on May 22 C O L O M B I A BANCOLOMBIA SA: S.C. Labor Chamber Revokes Civil Chamber Ruling ECOPETROL SA: Will Boost Petrochemical Sales to 2.7 Million Tons C O S T A R I C A TERADYNE INC: Annual Shareholders Meeting set for May 22 D O M I N I C A N R E P U B L I C AES DOMINICANA: S&P Affirms B- Rating on US$160 Million Notes BASIC ENERGY: To Install 50 Megawatts of Wind Generation Project EMPRESA GENERADORA: S&P Affirms B Long-Term Corp. Credit Rating EMPRESA GENERADORA: S&P Holds Long-Term Corp. Credit Rating at B E C U A D O R BANCO PICHINCHA: Secures US$50MM Loan from Inter-American Dev't J A M A I C A CABLE & WIRELESS: To Take Down Illegally Constructed Towers CASH PLUS: Lawyers Challenge Takeover by Authorities in Court DIGICEL GROUP: To Take Down Illegally Constructed Towers M E X I C O BERRY PLASTICS: Posts US$29.3MM Net Loss in Qtr. Ended March 29 BLOCKBUSTER INC: Comments on Circuit City Due Diligence Pact BLUE WATER: Files Liquidation Analysis Under Chapter 11 Plan BLUE WATER: Gets Permission to Pay Incentives to Employees CLEAR CHANNEL: Inks Settlement Pact With CC Media and Lenders CONTINENTAL AIR: Sets Alliance With UAL After Failed Merger GAP INC: April Sales Up 1% to US$1.10 Billion INTERTAPE POLYMER: Posts US$2MM Net Loss in Qtr. ended March 31 JETBLUE AIRWAYS: Fitch Cuts Sr. Unsec. Notes' Rating to CCC-/RR6 PILGRIM'S PRIDE: Equity Issuance Won't Affect Moody's Ratings V E N E Z U E L A AUDIOVOX CORP: Books US$1.8 Mil. Net Loss in Qtr. Ended Feb. 29 NORTHWEST AIRLINES: EVP Neal Cohen to Leave June 16 PETROLEOS DE VENEZUELA: Says JV With PetroChina to Cost US$12BB PETROLEOS DE VENEZUELA: Refinery Uses Tech to Boost Production PETROLEOS DE VENEZUELA: Starts Drilling on Boyaca 6 Block * BOND PRICING: For the Week May 12 - May 16, 2008 - - - - - ================= A R G E N T I N A ================= AGROPECUARIA MONTECARLO: Files for Reorganization in Court ---------------------------------------------------------- Agropecuaria Montecarlo S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Agropecuaria Montecarlo to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 17 in Buenos Aires. Clerk No. 34 assists the court in this case. The debtor can be reached at: Agropecuaria Montecarlo SA Esmeralda 736 Buenos Aires, Argentina ALITALIA SPA: Posts EUR21483 Mln in Pretax Loss for Q1 2008 ----------------------------------------------------------- Alitalia S.p.A. posted EUR214.83 million in pretax losses on EUR1.057 billion in net revenues for the first quarter ended March 31, 2008, compared with EUR152.34 million in pretax losses on EUR1.06 billion in net revenues for the same period in 2007. Alitalia notes that period in review is low season, leading to typically negative results. The results for first quarter 2008 was mainly influenced by several factors: * the sharp increase in fuel costs; * a reduction in activities coupled with the effects of the new marketing strategy, which focuses on improving route performance in terms of unit revenues (yield) rather than encouraging increases in traffic volumes; * the continuing erosion of the Company's commercial credibility with marked effect on sales growth; * the reduction in traffic caused by the announcement of changes in the network, carried out on March 30, 2008. As of March 31, 2008, the level of the Group's net equity amounted to about EUR96 million -- EUR169 million for the parent company Alitalia -- before taxes which should bear on the period. Regarding the financial year 2007, it should be noted that the main changes, with respect to the economic situation shown in the fourth quarter report 2007, regard the expected devaluation, referring to the balance sheet on Dec. 31, 2007, of fleet aircraft for about EUR97 million, as well as tax commitments. As of March 31, 2008, the net debt amounted to EUR1.351 billion showing a worsening of EUR191 million compared to Dec. 31, 2007. The Group's workforce on March 31, 2008, was 10,952 people showing a decrease of 226 compared to March 31, 2007. The Group's operating fleet on March 31, 2008, consisted of 173 aircraft, of which: * 145 for short/medium-haul; and * 28 for long-haul. Regarding the evolution of traffic and the network in the passenger sector, during the first quarter 2008 there was an overall reduction in capacity offered of 5.2% -- 1.184 billion ton kilometers compared to 1.248 billion in 2007 -- with the aim of improving route performance. The overall reduction in the capacity offered was matched by a more than proportional traffic reduction, amounting to -10% -- 786 million ton kilometers carried compared to 873 million in 2007. In overall terms, the load factor reached 66.4%, down by 3.5 percentage points compared to the previous period. This traffic performance led to an upswing in unit revenue (yield) of 4.6%. The absolute value of revenues from passenger traffic -- including those relating to the subsidiary Volare -- showed a downturn of 4.8% from EUR825 million to EUR785 million. 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: Berlusconi Vows to Save Firm Sans Nationalization --------------------------------------------------------------- Italian Prime Minister Silvio Berlusconi vowed to prevent the financial collapse of Alitalia S.p.A. without nationalizing it, Steve Scherer writes for Bloomberg News. Mr. Berlusconi said Italy will resolve Alitalia's situation positively while balancing national interest with market rules, Bloomberg News relates. He added that Alitalia's future relies on contribution from local business and banks. As reported in the TCR-Europe on April 30, 2008, Mr. Berlusconi threatened to nationalize Alitalia if the European Commission starts "harassing him" over the EUR300-million loan to the national carrier. The Commission reacted that though it is not concerned whether Italy nationalize Alitalia, since in the process itself there is a transfer of state resources to the company. The Commission gave the Italian government until May 30, 2008, to explain the details of the loan. Italy needs to prove that the loan was offered on commercial terms to gain approval from the Commission. 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. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. ALITALIA SPA: Giovanni Sabatini Quits from Board ------------------------------------------------ Giovanni Sabatini has resigned from his post on the Board of Directors of Alitalia S.p.A. with immediate effect, following the request to return to service presented to the National Commission for Companies and the Stock Exchange. According to the provisions set out in the Stock Exchange Regulations, "Istruzioni al Regolamento dei Mercati Organizzati e Gestiti da Borsa Italiana S.p.A.," it should be pointed out that Mr. Sabatini, also a member of the Internal Control Committee, was a non-executive and non-independent director. On the basis of all available information, there is no indication that he held shares in the Company capital. 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. CHRYSLER LLC: Reaches Tentative Settlements With CAW Officials -------------------------------------------------------------- The Canadian Auto Workers union reached tentative settlements with both General Motors Corp. and Chrysler LLC that meet the pattern established with Ford Motor Co. The CAW represents close to 13,000 GM workers and 8,000 Chrysler workers in Canada. TCR reported on May 7, 2008, that for the first time in its history, Ford Motor Company of Canada, Limited reached a collective bargaining agreement with CAW more than four months before the current contract expires. Ford employees represented by the CAW ratified the new deal in a vote held May 4, 2008. The early settlement brings stability to Ford's operations as it prepares to launch the new Ford Flex crossover vehicle at the Oakville Assembly Complex, which also builds the Ford Edge and Lincoln MKX. Ford disclosed plans to add 500 positions to increase production at the Oakville plant due to high demand for the Ford Edge and Lincoln MKX, and to prepare for the start of production of the Ford Flex. According to a CAW press statement, both settlements were unanimously endorsed by the CAW/GM and CAW/Chrysler Master Bargaining committees, respectively and later overwhelmingly supported by local union leadership. The three-year agreements resist two-tier wages and provide productivity and quality bonuses, improved restructuring incentives, benefit improvements, COLA increases in both second and third years and improved language on health and safety issues among other gains. The union negotiated new product commitments for both Oshawa car and St. Catharines facilities as well as a strong close-out agreement for members at the GM Windsor Transmission plant. During bargaining the company announced that the Windsor plant will close in 2010. The union also extended the operating life of the Chrysler Casting plant in Etobicoke, Ontario, at least until 2011. The tentative settlements are subject to ratification by CAW members. Ratification meetings will be held at various GM and Chrysler locations on Friday, May 16 and Saturday, May 17, 2008. CAW media advisories will be issued after the ratification votes are counted at each company providing details of the results. Ratification meeting dates, times and locations are: * CAW General Motors units -- Friday, May 16 1) Local 1973 Ciociaro Club, Salons A,B,C 3745 N. Talbot Road Windsor, ON 9:00am 2) Local 199 Brock University Bob Davis Gym 500 Glenridge Ave St. Catharines, ON 12:00 noon 3) Local 222 General Motors Centre 99 Athol Street E., Oshawa, ON 3:00pm -- Saturday, May 17 1) Local 636 Local 636 Union Hall 126 Beale Street Woodstock, ON 9:30am * CAW Chrysler units -- Saturday, May 17 1) Local 195 CAW Local 195 Hall 3400 Somme Avenue Windsor, ON 7:00am, 1:00pm, 3:00pm 2) Local 1459 SCA Oplenac 895 Rangeview Road Mississauga, ON (S. of Lakeshore, between Cawthra & Dixie) 8:00am 3) Local 1498 CAW Local 444 union hall 1855 Turner Road Windsor, ON 10:00am 4) Local 1285 International Centre, Hall #1 6900 Airport Road (Airport & Derry Road) Mississauga, ON 10:30am 5) Local 444 University of Windsor 401 Sunset Avenue St. Denis Hall Windsor, ON 2:00pm About Ford Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Chrysler Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on May 9, 2008, Fitch Ratings downgraded the Issuer Default Rating of Chrysler LLC to 'B' from 'B+', with a Negative Rating Outlook. Fitch has also downgraded the senior secured bank facilities, including senior secured first-lien bank loan to 'BB/RR1' from 'BB+/RR1'; and senior secured second-lien bank loan to 'CCC+/RR6' from 'BB+/RR1'. The recovery rating on the second lien was also downgraded from 'BB+/RR1' to 'CCC+/RR6' based on lower asset value assumptions and associated recoveries in the event of a stress scenario. MERCADEO SA: Files for Reorganization in Buenos Aires Court ----------------------------------------------------------- Mercadeo S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Mercadeo to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 11 in Buenos Aires. Clerk No. 22 assists the court in this case. NORGAS Y AMERICAN: Proofs of Claim Verification Is Until July 7 --------------------------------------------------------------- Juan Flores, the court-appointed trustee for Norgas y American Gas SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 7, 2008. Mr. Flores will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 34, 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 Norgas y American 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 Norgas y American's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Flores is also in charge of administering Norgas y American's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Norgas y American Gas SRL Hidalgo 1512 Buenos Aires, Argentina The trustee can be reached at: Juan Flores Junin 55 Buenos Aires, Argentina PETROBRAS ENERGIA: Earns ARS261 Mln in First Qtr. Ended March 31 ---------------------------------------------------------------- Petrobras Energia S.A. has reported the financial results for the first quarter ended March 31, 2008. Net income for 2008 first quarter was ARS261 million, accounting for a 7.4% increase compared to ARS243 million in 2007 first quarter. For the three months ended March 31, 2008, the company's net sales decreased ARS39 million to ARS985 million, basically due to a decline in oil sales volumes. Sales volumes of oil equivalent dropped 19.2% to 104.2 thousand barrels, mainly as a result of reduced sales in Ecuador and, to a lesser extent, lower production volumes in fields located in Argentina and Bolivia. In addition, operations in Peru also recorded lower volumes in line with the sale of the 40% interest in Lote X in December 2007, which interest accounted for an average of 5.5 thousand barrels of oil equivalent in 2007 quarter. The reduction in volumes in Ecuador is attributable to the postponement of crude oil shipments, with opposing effects in both quarters. Crude oil sales decreased 6.6% to ARS811 million in 2008 as a consequence of a 31.3% reduction in sales volumes, partially offset by a 36% increase in average sales prices, mainly in Ecuador and Peru, in line with international reference prices. Reduced sales volumes in 2008 quarter are primarily attributable to: (i) postponement of crude oil shipments in Ecuador, (ii) lower production in Argentina, (iii) higher sales as a result of the reduction in crude oil stock levels in 2007 quarter in Argentina and (iv) sale of a 40% interest in Lote X in Peru. Gas sales rose 8.6% to ARS165 million in 2008 quarter, as a result of a 9% increase in average sales prices, mainly in Argentina, due to a change in the sales mix and the renegotiation of agreements with industrial clients and, to a lesser extent, in Bolivia, due to the rise in the price for fuel oil which is included in the formula for calculation of the sales price. Gross profit decreased ARS9 million to ARS516 million in 2008 quarter. Margin on sales was similar in both quarters, 52.4% in 2008 quarter and 51.3% in 2007 quarter. Administrative and selling expenses decreased to ARS67 million in 2008 quarter from ARS82 million in 2007 quarter, mainly due to reduced selling expenses in 2008 quarter as a result of changes in the allocation of sales of crude oil produced in Argentina which, as from the year 2008, is sold to third parties by the Refining and Distribution segment. Other operating income (expense), net accounted for ARS34 million and ARS75 million losses in 2008 and 2007 quarters, respectively. Petrobras Energia, S.A. is headquartered in Buenos Aires, Argentina. Its majority owner, Petrobras, is based in Rio de Janeiro, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on May 12, 2008, Fitch Ratings affirmed both the foreign currency and local currency issuer default ratings of Petrobras Energia S.A. at 'BB.' Fitch said the rating outlook for all issuer default ratings is stable. These issuances, senior unsecured notes due 2009; senior unsecured notes due 2010; senior unsecured notes due 2011; and senior unsecured notes due 2013, were affirmed at 'BB'. On October 2007, Moody's Investors Service assigned a Ba1 global local currency issuer rating to Petrobras Energia S.A., and affirmed its Ba2 foreign currency rating for bonds issued under the US$2.5 billion Obligaciones Negociables program, and the Baa1 FCBR for the Series S bonds based on a Petrobras standby purchase agreement. SABATINO TONELO: Trustee Verifies Proofs of Claim Until June 24 --------------------------------------------------------------- The court-appointed trustee for Sabatino Tonelo S.A.'s reorganization proceeding will be verifying creditors' proofs of claim until June 24, 2008. The trustee will present the validated claims in court as individual reports on Aug. 20, 2008. The National Commercial Court of First Instance in 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 Sabatino Tonelo 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 Sabatino Tonelo's accounting and banking records will be submitted in court on Oct. 1, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on April 6, 2009. The debtor can be reached at: Sabatino Tonelo S.A. Av. Eden 379, La Falda Cordoba, Argentina SERTEX SRL: Trustee Verifies Proofs of Claim Until June 11 ---------------------------------------------------------- The court-appointed trustee for Sertex S.R.L.'s reorganization proceeding will be verifying creditors' proofs of claim until June 11, 2008. The trustee will present the validated claims in court as individual reports on Aug. 13, 2008. The National Commercial Court of First Instance in Rosario, Santa Fe, 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 Sertex 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 Sertex's accounting and banking records will be submitted in court on Oct. 1, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Dec. 3, 2008. The debtor can be reached at: Sertex S.R.L. Jujuy 2727, Rosario Santa Fe, Argentina Phone: (0341) 430-4519 SDCOM SA: Proofs of Claim Verification Deadline Is June 4 --------------------------------------------------------- The court-appointed trustee for Sdcom S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 4, 2008. The trustee will present the validated claims in court as individual reports on Sept. 8, 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 Sdcom 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 Sdcom's accounting and banking records will be submitted in court on Oct. 20, 2008. TALLER GOWSIL: Proofs of Claim Verification Is Until June 23 ------------------------------------------------------------ The court-appointed trustee for Taller Gowsil S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 23, 2008. The trustee will present the validated claims in court as individual reports on Aug. 13, 2008. The National Commercial Court of First Instance in Mercedes, 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 Taller Gowsil 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 Taller Gowsil's accounting and banking records will be submitted in court on Sept. 25, 2008. TELECOM ARGENTINA: Telecom Italia To Keep Local Partner for Firm ---------------------------------------------------------------- Telecom Italia SpA's President Gabriele Galateri di Genola told Argentine news daily La Nacion that the firm would continue having a local partner in the control of Telecom Argentina SA. Mr. Galateri di Genola confirmed to Business News Americas that Telecom Italia will exercise a call option right next year for control of Sofora Telecomunicaciones, which controls Telecom Argentina and Telecom Personal through its 68% stake in Nortel Inversora SA. BNamericas notes that Telecom Italia already holds a 50% stake in Sofora Telecomunicaciones and the remainder is controlled by Argentine investment group Grupo Werthein. Telecom Italia wants to continue having a local partner after its exercises the call option in 2009, BNamericas says, citing Mr. Galateri di Genola. "We are open to local partners, including Grupo Werthein," Mr. Galateri di Genola commented to La Nacion. Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone-related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. As of Dec. 31, 2006, its telephone system included approximately 4.09 million lines in service. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program France Telecom sold its part of Telecom Argentina to the WertheinGroup, an Argentine agricultural concern owned in part by vice chairman Gerardo Werthein. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia group (50%) -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Fitch Ratings upgraded Telecom Argentina's foreign and local currency issuer default ratings to 'B+' from 'B'. Fitch said the outlook is positive. VISTEON CORP: Names Donald Stebbins as Chief Executive Officer -------------------------------------------------------------- The board of directors of Visteon Corporation elected Donald J. Stebbins as president and chief executive officer, effective June 1, 2008. Mr. Stebbins, who was president and chief operating officer, succeeds Michael F. Johnston in the CEO role. Mr. Johnston will continue as executive chairman of the global automotive supplier. Mr. Stebbins, 50, has been president and COO since joining Visteon in 2005, following 13 years in senior leadership positions with Lear Corp. Expanding Mr. Stebbins' leadership role is a timely and logical step in Visteon's long-term executive succession planning process, according to Mr. Johnston. "The three-year plan that we launched in 2006 is successfully positioning Visteon for sustainable success," Mr. Johnston said. "As we approach the conclusion of this phase of our transformation, it's a logical time for Don to assume a greater role in steering the organization into the future." As CEO, Mr. Stebbins will lead the development and execution of Visteon's long-term strategy while continuing to oversee the company's global operations, sales, manufacturing, product development, research and development, and customer relations. Mr. Stebbins has more than 20 years of leadership experience and a solid history of performance in managing a global manufacturing business. He has served on Visteon's board of directors since December 2006. Mr. Johnston, 60, has been chairman and CEO since June 1, 2005. He joined Visteon in September 2000 as chief operating officer and president, and has held the CEO post since June 2004. Mr. Johnston has guided Visteon from a North America-focused parts supplier that was heavily dependent on one automaker, to a global engineering and manufacturing company with a focused product portfolio and a diversified customer and geographic base. As executive chairman, Mr. Johnston will concentrate on ensuring company policies and investments align with corporate strategy, interfacing with the board of directors, and fostering relationships with key customers and financial stakeholders. In expanding Mr. Stebbins' responsibilities, Visteon's board cited his global and financial experience and his success restructuring, improving and growing Visteon's operations in a challenging market environment. "Don's appointment as CEO underscores his proven leadership and core strengths in global operations and finance, which have resulted in a more competitive cost structure and expanded capabilities in fast- growing markets such as the Asia Pacific region," Mr. Johnston said. Along with leading Visteon's long-term strategy, Stebbins said his immediate priorities include successfully completing the remaining restructuring actions identified in Visteon's three- year plan; continuing to improve quality, employee safety and efficiency; and generating profitable new business wins in Visteon's core product areas. "We have a tremendously talented and experienced leadership team," Mr. Stebbins said. "Their abilities and energy, coupled with the strong working relationship that Mike and I have developed, give me every confidence that Visteon will continue taking positive steps and delivering on our commitments." Reporting to Mr. Stebbins will be William G. Quigley III, executive vice president and chief financial officer; John Donofrio, senior vice president and general counsel; Robert Pallash, senior vice president and president, global customer group; Dorothy L. Stephenson, senior vice president, human resources; the vice presidents of the three major product groups: Joy Greenway climate, Terry Gohl interiors and lighting, and Steve Meszaros electronics; Asaf Farashuddin, vice president, strategy; Jim Sistek, vice president, information technology; and Julie Fream, vice president, North American customer group and global communications. Mr. Stebbins joined Visteon from Lear Corp., where he was president and chief operating officer of Lear's operations in Europe, Asia and Africa. Previously, he was president and COO of Lear's operations in the Americas. Mr. Stebbins joined Lear in 1992 as vice president and treasurer. He held various financial positions of increasing responsibility with Lear, including a 1997 promotion to senior vice president and chief financial officer. Previously, he held positions at Bankers Trust Company and Citibank. Mr. Stebbins holds a bachelor's degree in finance from Miami University in Oxford, Ohio, where he is also a member of its Business Advisory Council. He holds a master's degree in business administration from the University of Michigan. He has served on Visteon's board of directors since December 2006. Additionally, he is a member of the board of directors of WABCO Holdings Inc. Based in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic, and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company's other corporate offices are in Shanghai, China; and Kerpen, Germany. The company has Latin America offices in Argentina, Brazil and Mexico. The company has facilities in 26 countries and employs approximately 43,000 people. Visteon Corporation's balance sheet at March 31, 2008, showed total assets of US$7.2 billion and total liabilities of US$7.3 billion resulting in a total shareholders' deficit of about US$136 million. * * * Visteon Corp. holds Moody's Investors Service's Caa2 senior unsecured debt rating, and Fitch Ratings Services' CC senior unsecured debt rating and CCC long-term issuer default rating. ========= A R U B A ========= VALERO ENERGY: El Paso Note Assumption Cues S&P to Cut Rating ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on the US$15 million unsecured notes due 2012 of Valero Energy Corp. (BBB/Stable/--) to 'BB-' from 'BBB', reflecting the assumption of the notes by El Paso Corp. (BB/Positive/--). Ratings List Rating Lowered To From -- ---- Valero Energy Corp. Senior unsecured USUS$15 mil due 2012 BB- BBB Headquartered in San Antonio, Texas, Valero Energy Corporation is North America's largest independent refining and marketing company, currently owning 16 oil refineries with nameplate crude oil distillation capacity of 2.6 barrels per day (bpd) and, including intermediate feedstock, 3.1 million bpd. VLO has one of the largest deep conversion capacities in North America. Its current portfolio of refineries displays a somewhat above average Nelson Complexity Index of 11.1. Valero Energy is evaluating strategic alternatives for one to three refineries and each of the potential pro-forma scenarios would increase its current Nelson index. The pending major capital spending programs would further increase Valero Energy Corporation value adding capacity and complexity downstream from crude oil distillation. The company has operated an oil refinery in Aruba. VALERO ENERGY: Petrobras Postpones Acquisition of Firm's Plant -------------------------------------------------------------- Joe Carroll at Bloomberg News reports that Petroleo Brasileiro SA aka Petrobras has suspended a decision on whether to acquire a Valero Energy Corp. plant in Aruba. Bloomberg News relates that acquisition of the Aruban plant would increase Petrobras' refining capacity by 14%. Petrobras' Chief Executive Officer for U.S. Operations Alberto Guimaraes told Bloomberg that the firm's directors adjourned their meeting last week without making a decision on the proposed acquisition. No new date has been set for the board to consider the transaction, Mr. Guimaraes added. Valero Energy's Aruba plant can process some 275,000 barrels of oil per day. It includes two delayed coking units, which handle heavy crude similar to the grades in Brazil's offshore deposits, Bloomberg states. About Petrobras Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp- - was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. About Valero Energy Headquartered in San Antonio, Texas, Valero Energy Corporation is North America's largest independent refining and marketing company, currently owning 16 oil refineries with nameplate crude oil distillation capacity of 2.6 barrels per day and, including intermediate feedstock, 3.1 million bpd. VLO has one of the largest deep conversion capacities in North America. Its current portfolio of refineries displays a somewhat above average Nelson Complexity Index of 11.1 . Valero Energy Corporation is evaluating strategic alternatives for one to three refineries and each of the potential pro-forma scenarios would increase its current Nelson index. The pending major capital spending programs would further increase Valero Energy Corporation value adding capacity and complexity downstream from crude oil distillation. The company has operated an oil refinery in Aruba. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Moody's Investors Service placed Valero Energy Corporation's ratings on review for upgrade. Moody's previously confirmed Valero Energy Corporation's Ba1 rated subordinated debentures and Ba2 rated mandatory convertible preferred stock. The ratings still hold to date, subject to the conclusion of Moody's rating review for possible upgrade. Moody's said the outlook is still positive. ============= B A H A M A S ============= GLOBAL ENVIRONMENTAL: Will Supply Chinese Coking Coal to WASP ------------------------------------------------------------- Global Environmental Energy Corp. has received a Letter of Intent from U.S.-based WASP Energy LLC. for Global to supply WASP with 2-3 million tons of Chinese metallurgical coal (coking coal) per year on a multiyear contract. Global is a joint venture partner with the Yankuang Group of companies, engaged in the business of mining, processing and selling Chinese Coal. Yankuang and Global jointly own the Shenzhen YanFeng Coal Company Limited, which is owned (60%) by Yankuang Group Holding Co., Ltd., and (40%) Global. Yankuang Group of Companies (NYSE: YZC) is engaged in coal mining, coal chemistry, electrolytic aluminium, real estate development, electricity generation, construction materials, mechanical process, environmental remediation, trading etc. Yangzhou Coal Mining Company Limited, a subsidiary of Yankuang Group Holding Co., Ltd. is listed on New York Stock Exchange, Hong Kong Stock Exchange (Code number 1171) and Shanghai Stock Exchange (Code number 600188). WASP Energy LLC. -- http://www.waspenergy.com-- is a Khanjee company -- http://www.khanjeeholding.com-- and is licensed by the Federal Energy Regulatory Commission of the United States to trade in electric power and other energy commodities. The company will pre finance its ongoing coal purchase from Global through credit facilities acceptable to Global. Headquartered in Nassau, Bahamas, Global Environmental Energy Corp. (Deutsche Borse: GLI; OTC Bulletin Board: GEECF) -- http://www.geecf.ru-- is engaged in traditional oil and gas exploration and production, alternative energy sources, environmental infrastructure and electrical micro-power generation through its subsidiaries, Sahara Petroleum Exploration Corp. and Biosphere Development Corp. * * * As of May 31, 2007, Global Environmental Energy Corp. reported a total stockholders' deficit of US$71,549,591 compared to US$55,609,865 total stockholders' deficit on May 31, 2006. ============= B E R M U D A ============= ARCH CAPITAL: M. Lyons Replaces R. Jones as CEO for U.S. Unit ------------------------------------------------------------- Arch Capital Group Ltd. said that Mark Lyons has been promoted to the position of Chairman and Chief Executive Officer of Arch Worldwide Insurance Group, effective July 2, 2008. Mr. Lyons, who joined Arch in 2002 and currently serves as President and Chief Operating Officer of Arch's U.S.-based insurance group, will succeed Ralph Jones, who will be retiring at the end of his five-year employment term on July 1, 2008. Dinos Iordanou, President and Chief Executive Officer of Arch Capital Group Ltd., said, "With Ralph's guidance over the past five years, our insurance business has continued to establish itself as a significant participant in the worldwide insurance marketplace. We are very appreciative and thankful for Ralph's contributions and wish him well in his retirement. We are also confident that Mark will continue to provide the strong leadership necessary to sustain our insurance group's success. Our ability to promote from within Arch is another indication of the depth and strength of our management team. Under the continuing senior team led by Mark, the strategic direction of Arch Insurance will not change." Mr. Jones added, "It has been a pleasure to be part of the Arch success story during the past five years. After 30 years in the industry, it will be nice to hand over the reigns to my very capable successor, Mark Lyons." Mr. Lyons, age 51, has served as President and Chief Operating Officer of Arch Insurance Group since June 2006. Prior thereto, he served in various senior executive positions for Arch Insurance Group, including Senior Vice President of group operations and Chief Actuary. Prior to joining Arch, Mr. Lyons was Executive Vice President of product services at Zurich U.S. and Vice President and Actuary at Berkshire Hathaway Insurance Group. Mr. Lyons holds a B.S. degree from Elizabethtown College. He is also an Associate of the Casualty Actuarial Society and a member of the American Academy of Actuaries. Headquartered in Bermuda, Arch Capital Group Ltd. (NASDAQ: ACGL) -- http://www.archcapgroup.bm-- is a public limited liability company, which provides insurance and reinsurance on a worldwide basis through operations in Bermuda, the United States, Europe and Canada. It provides a range of property and casualty insurance and reinsurance lines, and focus on writing specialty lines of insurance and reinsurance. Arch Capital classifies its business into two underwriting segments: reinsurance and insurance. The company's reinsurance operations are conducted on a worldwide basis through its reinsurance subsidiaries, Arch Reinsurance Ltd. and Arch Reinsurance Company. The company's insurance operations in Bermuda are conducted through Arch Insurance (Bermuda), a division of Arch Re Bermuda, which has an office in Hamilton, Bermuda. * * * In December 2006, A.M. Best assigned these ratings on to Arch Capital's debts: -- "bb+" from "bb" on US$200 million 8% non-cumulative Series A preferred shares; and -- "bb+" from "bb" on US$125 million 7.875% non-cumulative Series B preferred shares. INTELSAT LTD: March 31 Balance Sheet Upside-Down by US$722 Mil. --------------------------------------------------------------- Intelsat Ltd.'s balance sheet showed total assets of US$12.05 billion, total debts of US$12.77 billion and stockholders' deficit of US$722.3 million as of March 31, 2008. The company reported revenue of US$572.7 million and a net loss of US$412.7 million for the three months ended March 31, 2008, which included US$313.1 million in restructuring and transaction costs incurred in connection with the February 4, 2008 acquisition of all of the equity ownership of its parent, Intelsat Holdings, Ltd., by Intelsat Global, Ltd. (formerly known as Serafina Holdings Limited), an entity controlled by funds advised by BC Partners Holdings Ltd., Silver Lake Partners and certain other equity investors. Intelsat CEO Dave McGlade commented, "Intelsat delivered a strong first quarter. We achieved broad-based revenue growth, with increases reported by each of our three primary customer sectors, Media, Network Services and Government. The powerful forces of globalization, technology � including mobility, IP networks and high definition television � and deregulation continue to drive demand for our global communications infrastructure, as illustrated by our record contract backlog at quarter end of $8.3 billion." "Operationally, we are performing to our plan. Costs are in line with our objectives and margins are expanding, even as we invest in new service introductions to capitalize on mobility and broadband opportunities. We are building value through disciplined management of our fleet, optimizing existing transponder capacity and strategically replacing satellites. We are pleased with our first quarter results, and remain focused on the continued successful execution of our business strategy." The company's revenue has increased by US$54.4 million, or 11 percent, for the three months ended March 31, 2008 as compared to US$518.2 million for the three months ended March 31, 2007. Growth trends included increased sales of transponder services and managed services to network services customers and customers of our Intelsat General government business. Favorable revenue trends also included strong renewals, expansions of existing contracts, new business and improved contract terms. All regions reported revenue increases, with North America, Europe, and Africa and the Middle East delivering the strongest gains. Free Cash Flow & Capital Expenditures Intelsat generated free cash flow from operationsii of US$119.7 million during the three months ended March 31, 2008. Free cash flow from operations is defined as net cash provided by operating activities, less payments for satellites and other property and equipment and associated capitalized interest. Payments for satellites and other property and equipment during the three months ended March 31, 2008 totaled US$106.5 million. In 2008, the company expects to launch two satellites, Galaxy 18 and Galaxy 19, in May 2008 and the third quarter of 2008, respectively. Its remaining three satellites on order are expected to be launched in 2009. The company expects its 2008 total capital expenditures to range from approximately US$460 million to US$500 million. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. XL CAPITAL: Executive to Present at Lehman Brothers Conference -------------------------------------------------------------- XL Capital Ltd. Chief Executive of Insurance Operations, David Duclos is scheduled to present at the Lehman Brothers Financial Services conference to be held at the Lehman Brothers European Headquarters, 25 Bank Street, Canary Wharf, London, England at 3:30 p.m. BST, on May 20, 2008. A live webcast of Mr. Duclos' presentation will be available at http://cc.talkpoint.com/LEHM002/052008a_jw/default.asp?entity=XL A replay of the presentation and accompanying slides will be available in the Investor Relations section of the company's website following the live webcast and will be archived there for approximately 21 days following the presentation date. Headquartered in Bermuda, XL Capital Ltd. -- http://www.xlcapital.com/-- writes liability insurance and reinsurance worldwide, specializing in low-frequency, high- severity risks from riots to natural disasters. The company writes policies through numerous subsidiaries, many of them offshore, and also manages a Lloyd's of London syndicate. XL's coverage includes general and executive liability, property, and political risk insurance. Its reinsurance covers property, aviation, energy, nuclear accident, and professional indemnity. * * * As reported in the Troubled Company Reporter-Latin America on April 3, 2008, Fitch Ratings downgraded XL Capital Ltd.'s Class A1 to 'BB' from 'A' and Class A2 to 'BB' from 'A' and removed it from Rating Watch Negative. Fitch also downgraded XLCA's Insurer Financial strength rating to 'BB' and removed the IFS from Rating Watch Negative. =========== B R A Z I L =========== ACXIOM CORP: Posts US$58.2 Mil. Net Loss in First Quarter 2008 -------------------------------------------------------------- Acxiom Corporation reported its financial results for the fourth quarter and fiscal year end ended March 31, 2008. The company will host an investor day June 17 in New York. Details will be made available on the Acxiom Web site. Revenue for the fourth quarter was US$349.8 million compared to US$356.4 million in the fourth quarter of fiscal 2007. Operating loss for the quarter was US$76.0 million and loss per diluted share was US$0.76. The results for the quarter include the impact of US$107.2 million of restructuring and other items (of which US$104.5 million are included in the loss from operations, with the remainder included in other expense), which contributed to the loss by the equivalent of US$0.91 per diluted share. For the 12-month period ended March 31, 2008, revenue totaled US$1.384 billion compared to US$1.391 billion in the prior year. Income from operations for the 12 month period was US$40.2 million compared to US$154.1 million a year ago. Loss per diluted share was US$0.10 compared to earnings per diluted share of US$0.80 in the prior year. The loss per diluted share includes the impact of US$84.2 million, or the equivalent of US$0.70 per diluted share, of expense from unusual items. For the first quarter of 2008, the company reported a net loss of US$58.2 million, compared with net income of US$5.7 million in the same period in 2007. As of March 31, 2008, the company's total stockholders' equity was US$500.5 million. According to John Meyer, Acxiom Corp. CEO and President, "During my first 90 days I have focused on meeting our customers and our people, rationalizing costs and gaining a deeper understanding of our offerings and value propositions. I have also made a number of leadership and role changes. "We are working to develop strategic and operational plans to help overcome the current challenges we are facing in some industry sectors and to provide a springboard for growth in future years. The initial focus will be on our customers and potential customers, leveraging our capabilities and assets across all industries we serve, and creating a winning market- facing culture. We already have a very strong foundation to do that. I believe in this opportunity now even more than when I was evaluating coming on board." Restatement, Restructuring and Other Items The Company is restating its financial statements for 2007, 2006, and prior years to correct its accounting related to accrued service revenue. The impact of this restatement will be a reduction in net income of US$2.4 million in 2006 and US$2.9 million in 2007. Accrued revenue, which is reflected in accounts receivable, will be reduced by a total of US$52.2 million. Fourth-quarter loss per diluted share of US$.76 includes US$107.2 million or the equivalent of US$0.91 per share in unusual expenses. The major components of the restructuring and other items are: * Gains, losses and other - US$74.5 million composed of: -- Restructuring charges - US$42.9 million related to headcount reduction, real estate closure, contract termination; -- Closing operations - US$13.5 million related to previously acquired operations and the flight department; -- Asset disposal/impairment - US$15.0 million, primarily software; -- Other US$3.1 million related to legal, international and other; * IT contract restructuring - US$34.0 million reflected as increase in cost of services; * Loss on investment - US$2.7 million reflected in Other, net; * Accrued revenue restatement - US$.4.0 million increase in revenue. Of the US$107.2 million in restructuring and other items, approximately US$59.2 million represents balance sheet assets written down that do not require cash outlays. Approximately US$48.0 million represents estimated cash payments to be made on obligations primarily related to headcount reductions, real estate and facilities lease terminations and an aircraft lease termination. The US$48 million includes obligations of approximately US$34 million to be paid in fiscal 2009, with the remainder in future periods. Details of Acxiom's fourth-quarter results include: * Revenue of US$349.8 million compared to US$356.4 million in the fourth quarter a year ago; * Loss from operations of US$76.0 million compared to income from operations of US$28.4 million in the fourth quarter last year; * Loss from operations this quarter included US$107.2 million of restructuring and other items; * Loss per diluted share of US$0.76 compared to earnings per share of US$0.07 in the fourth quarter of fiscal 2008; included in the loss per share of US$0.76 is the negative impact of restructuring and other items which was the equivalent of US$.91 per diluted share; * Operating cash flow of US$90.5 million compared to US$76.5 million in the fourth quarter a year ago; * Free cash flow available to equity of US$14.7 million compared to US$15.4 million a year ago; free cash flow available to equity is a non-GAAP financial measure. Details of Acxiom's fiscal year results include: * Revenue of US$1.38 billion compared to US$1.39 billion in the prior year; * Income from operations of US$40.2 million in 2008 compared to US$154.1 million in fiscal 2007; * Loss per diluted share of US$0.10 compared to earnings per diluted share of US$0.80 in fiscal 2007; net restructuring and other items for the year were US$84.2 million, or the equivalent of US$0.70 per diluted share; In addition to the restructuring and other items in the fourth quarter, the company had a benefit of a net gain of US$22.9 million comprised of: -- Gains from a merger termination payment and sale of assets of US$68.2 million; -- Restructuring costs, transaction costs, retirement and loss on sale of assets of US$30.0 million; -- Additional contract impairment in cost of services of US$10.0 million; -- Reduction in revenue related to accrued revenue restatement to previous quarters of US$5.2 million; * Operating cash flow of US$300.3 million compared to US$260.0 million in the prior year; * Free cash flow available to equity of US$77.5 million compared to US$55.2 million a year ago; free cash flow available to equity is a non-GAAP financial measure. Segment information: * Information Services Division: The division develops, sells and delivers industry-tailored solutions globally through the integration of products, services and consulting. Revenue for the quarter was US$189.7 million, up 0.8 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was US$741.3 million, up 1.8 percent from the previous year. Operating income for the quarter was US$24.1 million, down 7.7 percent from the third quarter of the previous year. For the 12 months just ended, operating income was US$97.2 million, down 22.0 percent from the previous 12-month period. * Information Products Division: The division develops and sells all global data products, including InfoBase-X and PersonicX, as well as fraud and risk mitigation products sold in the U.S., including InsightIdentify. It focuses on product development, product lifecycle management, data content management and innovation. Revenue for the quarter was US$115.2 million, up 5.2 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was US$431.3 million, up 3.8 percent from the previous year. Operating income for the quarter was US$13.1 million, up 45.9 percent from the fourth quarter of the previous year. For the 12 months just ended, operating income was US$23.8 million, up 25.7 percent from the previous 12-month period. * Infrastructure Management Division: The division develops and delivers information technology products and services that improve a company's ability to manage its information technology delivery platform with lower costs and higher efficiencies. Such offerings include traditional IT outsourcing and transformational solutions such as the Acxiom data factory. Revenue for the quarter was US$108.2 million, down 8.8 percent from the fourth quarter of the previous year. For the 12 months ended March 31, 2008, revenue was US$447.5 million, down 6.1 percent from the previous year. Operating income for the quarter was US$8.3 million, down 16.1 percent from the fourth quarter of the previous year. For the 12 months just ended, operating income was US$44.3 million, down 10.3 percent from the previous 12-month period. Investor Day The company will be hosting an investor day on June 17 and providing a forecast for fiscal 2009 at that time. Company management will also discuss operations and prospects at the investor day. The event will be held at the NASDAQ facilities in New York and will be web cast. Further information will be made available at http://www.acxiom.com/ Web Link to Financials http://www.acxiom.com/FY08_Q4_Financialsis a link to the detailed financial information. About Acxiom Corporation Headquartered in Little Rock, Arkansas, Acxiom Corporation, (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2007, Moody's Investors Service confirmed Acxiom's Ba2 corporate family rating and assigned a negative rating outlook, concluding a review for possible downgrade initiated on May 17, 2007, following the company's announcement that it had entered into a definitive agreement to be acquired by Silver Lake and ValueAct Capital for US$3 billion. AES CORP: Fitch Rates Senior Unsecured Notes 'BB/RR1' ----------------------------------------------------- Fitch Ratings has assigned a 'BB/RR1' rating to AES Corporation's (AES) US$600 million issuance of senior unsecured notes maturing 2020. AES' long-term Issuer Default Rating (IDR) is rated 'B+'. Fitch's rating is based on its expectation that AES will use the proceeds to pay down higher-cost debt. The Rating Outlook is Stable. The ratings of AES reflect the large amount of parent-company recourse debt, the structural subordination of that debt to subsidiary debt, and the reliance on distributions from its subsidiaries for parent company debt service. Offsetting, in part, the company's financial risk is the solid base of cash flow from utility businesses and contracted generation as well as the diversity of cash flow sources. The current Stable Rating Outlook reflects Fitch's expectation that credit metrics will stay within parameters for the current rating. 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. BANCO DAYCOVAL: Improved Capital Triggers S&P's Positive Outlook ---------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on Banco Daycoval S.A. to positive from stable. At the same time, S&P affirmed its 'BB-/B' counterparty credit and senior- unsecured bond ratings on the bank. S&P also affirmed its 'brA/brA-2' national scale rating. "The outlook revision reflects our opinion that Daycoval will continue to post solid results, while taking advantage of the potential for growth in Brazil's credit market," said S&P's credit analyst Marcelo Peixoto. Improved capitalization and a focused strategy have allowed the bank to increase its market share in the middle-market segment and diversify its product base, while improving its business and financial profiles gradually. The ratings on Banco Daycoval reflect the challenges the bank faces to further diversify its funding base and to continue growing its credit portfolio under adequate risk management procedures in a very competitive environment. The bank's positive track record in lending to small and midsize enterprises, strong profitability, and commitment to maintain adequate liquidity and capital levels offset those risks. S&P could raise the rating if the bank continues to expand its loan portfolio rapidly while maintaining previous financial performance. An upgrade would depend on the Banco Daycoval's ability to improve its market position, maintain adequate credit risk management, and keep the nonperforming assets-to-total loans ratio lower than 3% and profitability close to 4%. S&P also expects the bank to grow and diversify its funding base further while maintaining strong liquidity. On the other hand, S&P could revise the outlook to stable if the its asset quality ratios deteriorate -- reporting ratios closer to 5% of nonperforming loans to total loans -- indicating that the bank has lowered its risk management standards and financial targets, or if profitability or liquidity deteriorate significantly. Headquartered in Sao Paulo, Brazil, Banco Daycoval SA started its activities in 1968, with the creation of Daycoval DTVM and Valco Corretora de Valores. Brothers Ibrahim and Sasson Dayan control the bank. It is the core business of its shareholders and specializes in financing small- and medium-sized companies, backed by receivables. It also operates with consignment lending for payroll deduction and consumer financing. Since June 2007, the bank has had 29% of its shares traded at Bovespa on the New Brazilian Stock Market. These shares enjoy a tag- along privilege, giving minority shareholders 100% of the value of the block of controlling shares in the event of the sale of the institution. BANCO DO BRASIL: Will Incorporate Banco Popular do Brasil --------------------------------------------------------- Banco do Brasil SA will incorporate its microcredit unit Banco Popular do Brasil to create a low-income division for clients earning the national minimum wage of BRL415 per month. Business News Americas relates that Banco Popular was formed in 2004 to provide loans to low-income earners. It had BRL27.3 million in its loan portfolio in March 2008, about 37.1% lesser than March 2007. BNamericas notes that Banco do Brasil has about 8.30 million low-income account holders. Banco Popular has some 1.40 million low-income account holders. According to Banco do Brasil, about 15 million non-account holders who deal with Banco do Brasil earn up to the minimum wage. Banco do Brasil's Investor Relations Officer Marco Geovanne commented to the press, "We use BPB [Banco Popular] for the things that are difficult to do at BB [Banco do Brasil], such as reach the low-income bracket." 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. CAIXA ECONOMICA: Buys 9,600 Diebold ATMs for Brazilian Banks ------------------------------------------------------------ Diebold Inc. has partnered with Caixa Economica Federal in one of the largest automated teller machine sales agreements in history. Caixa Economica purchased the ATMs to help support its strategic self-service network expansion effort. To better serve its wide-spread customer-base in Brazil's current climate of rapid growth, Caixa will integrate more than 9,600 Diebold full-function ATMs into its existing fleet at its branches across the country. The new units will be powered by Diebold's reliable basic software platform, which increases the units' flexibility. Diebold's full-function model ATM 4500 units, designed for the Brazilian market, are expected to be well-received by Caixa Economica's customers, as Brazil's economic expansion is helping drive the integration of automated processes in many of the country's markets. Diebold's skilled engineers custom-designed the new units to feature biometric identification for customers as well as biometric identification with smart card capabilities for identification of ATM operators and service technicians. The ATMs also include such security features as anti-skimming technology with monitoring sensors for dip card reader, keyboard and LCD display, as well as electronic access control to open the upper cabinet door of the ATMs. Keeping pace with the country's growth, Caixa Economica's total ATM transactions have increased as well. Expanding its self- service fleet will help broaden the company's geographic presence to provide enhanced convenience and increased self- service functionality for new and existing customers. "By offering customers greater convenience and accessibility through Diebold's advanced-function ATMs, Caixa is strengthening its position as one of Brazil's financial industry leaders," said Caixa Economica Federal's director of market relations, Delfino Natal de Souza. "This partnership with Diebold is an important aspect of a well-planned strategy to grow our fleet to increase customer satisfaction and to continually provide new features and functionality as they become available." With a long history of providing turnkey financial services for the general public, business customers and institution's older models, and will offer many new customer-pleasing features. Additionally, Caixa Economica will be positioned to benefit from greater operational efficiencies and profitability while reducing the overall costs associated with owning and operating an ATM channel. "The Brazilian economic climate is ideal for Caixa to boost its self-service fleet through Diebold's advanced function ATMs," said Diebold Brazil president, Joao Abud, Jr. "As Brazil's economy and population continue to grow, this type of technology will play a key role in helping financial institutions keep pace with the population's needs, while offering reliability, convenience and high-level functionality, which ultimately strengthen customer loyalty." Caixa Economica currently operates 19,000 ATMs in Brazil and is taking part in a country-wide initiative to replace ATMs 10 years or older with models offering enhanced functionality and additional security and accessibility features. The new Diebold ATMs are fully compliant with Brazil's newest accessibility standards. About Diebold Headquartered in Canton, Ohio, Diebold Inc. (NYSE: DBD) -- http://www.diebold.com-- provides integrated self-service delivery and security systems and services. The company employs more than 17,000 associates with representation in nearly 90 countries worldwide. About Caixa Economica Federal Headquartered in Brasilia, Caixa Economica Federal -- http://www.caixa.gov.br-- is a Brazilian bank and one of the largest government-owned financial institutions in Latin America. Founded in Jan. 12, 1861, Caixa Economica is the second biggest Brazilian bank, second only to Banco do Brasil, and offers services in thousands of Brazilian towns, ranking third in Brazil in number of branches. The company has more than 32 million accounts and controls more than US$170 billion. It is responsible for executing policies in the areas of housing and basic sanitation, the administration of social funds and programs and federal lotteries. * * * In November 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Caixa Economica Federal. CAIXA ECONOMICA: Ties Up With Tecnisa S.A. in Providing Loans ------------------------------------------------------------- Tecnisa S.A. has entered into a partnership with Caixa Economica Federal to provide working capital loans and mortgage loans for buyers of residential properties, with total sales of around BRL1.5 billion. This financing option will cover all the income segments for projects launched by Tecnisa in any state in Brazil. With this agreement, Tecnisa has signed loan agreements totaling BRL2.7billion in 2008, which will substantially boost its growth capacity. In keeping with its policy of transparency, Tecnisa will always keep the market informed of further developments. About Tecnisa Tecnisa S.A. is one of the largest real estate companies in Brazil and among the five largest in the city of Sao Paulo. It is active in every segment of the business, from development through construction to sales, and its many distinguishing features include strong reputation, focus on exemplary client service and product quality, online sales and consistent profitability. Tecnisa is listed on the Bovespa's Novo Mercado segment under the ticker "TCSA3." About Caixa Economica Federal Headquartered in Brasilia, Caixa Economica Federal -- http://www.caixa.gov.br-- is a Brazilian bank and one of the largest government-owned financial institutions in Latin America. Founded in Jan. 12, 1861, Caixa Economica is the second biggest Brazilian bank, second only to Banco do Brasil, and offers services in thousands of Brazilian towns, ranking third in Brazil in number of branches. The company has more than 32 million accounts and controls more than US$170 billion. It is responsible for executing policies in the areas of housing and basic sanitation, the administration of social funds and programs and federal lotteries. * * * In November 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Caixa Economica Federal. COMPANHIA SIDERURGICA: IRB-Brasil Must Provide Reinsurance ---------------------------------------------------------- Brazilian financial daily Valor Economico reports that a civil court in Rio de Janeiro has ordered IRB-Brasil Re to provide reinsurance for a policy for Companhia Siderurgica Nacional SA from the local unit of Spain's Mapfre. Business News Americas relates that Companhia Siderurgica has been without insurance since Feb. 21, 2008. According to Valor Economico, IRB-Brasil Re and Companhia Siderurgica have gone back and forth in eight court rulings in less than a month. Valor Economico notes that Mapfre has arranged for several international reinsurers to back the Companhia Siderurgica policy. The reinsurers are led by Gen Re of Berkshire Hathaway. According to BNamericas, Mapfre will keep US$250 million, one- third of the US$750 million in maximum damages covered by the policy. BNamericas states that an accident at Companhia Siderurgica's blast furnace caused US$600 million in damages in January 2006. It shut down the furnace until June 2006. The furnace returned to full capacity in August 2006. Unibanco AIG provided coverage for Companhia Siderurgica at that time. It cost Unibanco BRL15 million in claims paid. IRB-Brasil reportedly paid nearly US$360 million in claims. Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal and the U.S. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Standard & Poor's Ratings Services revised its outlook on Brazil-based steel maker Companhia Siderurgica Nacional and related entity National Steel S.A. to positive from stable. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating on CSN and its 'B+' rating on NatSteel. COMPANHIA ENERGETICA: Suspends Privatization -------------------------------------------- Companhia Energetica de Sao Paulo's Chief Executive Officer Guilherme Cirne de Toledo said in a Web cast that the firm's privatization process won't proceed this year, Business News Americas reports. Mr. Toledo commented to BNamericas, "We don't know if or when the privatization process will be resumed." BNamericas relates that the Sao Paulo government controls Companhia Energetica. It called off the March 26 auction to privatize the firm. The state wanted to sell 7.0 million of its preferred and 85.9 million ordinary shares in Companhia Energetica. Sao Paulo Governor Jose Serra told the press that the auction failed because firms had trouble securing loans to bid for Companhia Energetica. According to BNamericas, power companies were concerned that there was no guarantee Companhia Energetica's Jupia and Ilha Solteira plants would secure concession renewals. The two have combined capacity of five gigawatts. The firms are trying to convince the Brazilian government to renew concessions earlier, BNamericas states, citing Mr. Toledo. Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2007, Standard & Poor's Ratings Services raised its ratings on electricity generator Companhia Energetica de Sao Paulo, including its corporate credit rating to 'B' from 'B-'. At the same time, S&P raised its Brazil national scale ratings on CESP to 'brBBB-' from 'brBB'. S&P said the outlook remains positive on both scales. FERRO CORP: To Increase Price of Advanced Polymer Alloys -------------------------------------------------------- Ferro Corporation's Engineered Polymer Products business is increasing prices for advanced polymer alloys and plastic colorants products, effective June 1 and June 15, 2008, respectively. Prices for advanced polymer alloy products, including Alcryn(R) and DuraGrip(TM), will increase by US$0.10 per pound. Price increases for plastic colorant products will be US$0.11 per pound for natural resin and additive compounds; US$0.15 per pound for specialty pre-color compounds and salt-and-pepper blends; and up to US$0.20 per pound for specialty color concentrates. James Kolenc, Business Director, Engineered Polymer Products, cited continuing escalation of costs for polymers and other raw materials, transportation, and energy. "We have worked diligently to mitigate these cost increases and minimize the impact on our customers, but are unable to absorb these increases any further," said Kolenc. "This pricing action supports our ability to continue to provide competitive, high- value products and services to our customers." Engineered Polymer Products manufactures engineered plastics composites, plastic color concentrates and advanced polymer alloys, and offers manufacturing of custom alloys. Its products are available globally from manufacturing facilities in the U.S. and Europe. About Ferro Corporation Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a supplier of technology-based performance materials for manufacturers. Ferro materials enhance the performance of products in a variety of end markets, including electronics, solar energy, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products. Headquartered in Cleveland, Ohio, the company has approximately 6,300 employees globally and reported 2007 sales of US$2.2 billion. The company has subsidiaries in Argentina, Australia, France, Germany, Brazil, China, Spain , Hong Kong and Korea, among others. * * * Ferro Corp. carries Moody's corporate family rating of B1 with a positive outlook. This rating was assigned on May 2007. FERRO CORP: Sales Up 15% to US$607.2 Million in First Quarter ------------------------------------------------------------- Ferro Corporation reported that sales for the three months ended March 31, 2008, were a record US$607.2 million, up 15% from the first quarter of 2007. Income from continuing operations for the first quarter of 2008 was US$9.2 million, or US$0.21 per diluted share, compared with income of US$6.2 million, or US$0.14 per share, in 2007. In the first three months of 2008, operating income included net pre- tax charges of US$4.0 million. These charges were primarily related to restructuring and other manufacturing rationalization activities. In 2007, operating income was reduced by pre-tax expenses of US$4.3 million primarily related to manufacturing rationalization activities and a write-off of unamortized fees associated with an unused portion of the Company's term loan arrangements. "We are pleased to see evidence that our profitability initiatives are gaining traction. Our improved performance is the result of hard work by the people of Ferro who are focused on executing our restructuring programs, improving our business processes and cutting costs across our worldwide operations," said James F. Kirsch, Chairman, President and Chief Executive Officer. "Our businesses delivered results better than we previously estimated in our fourth-quarter 2007 earnings release, and the improvements were achieved despite difficult economic conditions in many of the markets we serve, particularly in the United States. While we are pleased with our first-quarter results, we will continue to aggressively pursue our programs to achieve sustainable profitability improvements." Net sales increased in the Electronic Materials, Color and Glass Performance Materials, Performance Coatings, and Polymer Additives segments, compared with sales in the first three months of 2007. Sales declined in the Specialty Plastics and Other Businesses segments. Sales to customers outside the United States grew by 22% while sales within the United States increased by 6%. Increased product prices, including pass-throughs for precious metals, and favorable changes in foreign currency exchange rates were the primary drivers of the increased sales. Increased volume was a positive contributor to sales growth in the Performance Coatings and the Color and Glass Performance Materials segments. Lower volume in Specialty Plastics, porcelain enamel products in Performance Coatings, and Polymer Additives partially offset the sales increases. The volume declines in these businesses were largely the result of weak demand from U.S. automobile, appliance and residential housing industries. Gross margins were 18.7% of sales in the first quarter of 2008, compared with 20.2% of sales in the prior-year period. Gross profit during the 2008 first quarter was negatively impacted by higher raw material costs, including precious metals. While the Company was generally able to increase prices to offset higher raw material costs, it was not able to increase prices sufficiently to maintain gross margin as a percent of sales. Gross profit was also reduced by manufacturing costs during the 2008 first quarter that were consequences of a temporary production interruption at the Company's Bridgeport, New Jersey, facility beginning in December 2007. Total pre-tax costs of the interruption during the first quarter were approximately US$3.3 million. Charges related to the company's ongoing manufacturing rationalization programs reduced gross profit by US$0.2 million in the first quarter of 2008, compared with charges of US$2.2 million during the first quarter of 2007. Selling, general and administrative expense was US$78.7 million in the first quarter, or 13.0% of sales. Included in SG&A expense during the first three months of 2008 was a net benefit of US$0.4 million, primarily related to favorable litigation developments, partially offset by expenses related to corporate development activities. SG&A expense in the first quarter of 2007 was US$78.8 million, or 14.9% of sales, including charges of US$0.3 million primarily related to corporate development activities. Total segment income for the first three months of 2008 was US$41.7 million, flat with the prior-year level of US$41.8 million. The total segment income reflected higher income from the Electronic Materials segment, which benefited from strong demand for the company's metal pastes and powders that are used in applications such as solar cells and plasma displays. Income was also slightly higher in the Color and Glass Performance Materials and Other Businesses segments. Income declined in the Company's Specialty Plastics segment, primarily reflecting weak demand from U.S.-based customers in the automotive parts and residential construction markets, and in the Performance Coatings segment, due to the effects of weak customer demand for porcelain enamel products. Income declined slightly in the Polymer Additives segment as the positive effects of product price increases were more than offset by raw material cost increases and the cost associated with the December 2007 manufacturing interruption in Bridgeport, New Jersey. Restructuring charges of US$4.2 million were recorded in the first quarter, primarily resulting from rationalization programs in the company's European inorganic materials manufacturing facilities. Restructuring charges of US$1.5 million were recorded in the first quarter of 2007. Interest expense declined to US$14.0 million in the first three months of 2008 from US$17.4 million in 2007, as a result of lower borrowing levels and reduced interest rates on funds borrowed. Interest expense in the 2007 first quarter included a US$2.0 million write-off of unamortized fees and discounts associated with an unused portion of the company's term loans. Total debt on March 31, 2008 was US$537.8 million, an increase of US$11.7 million from the end of 2007. The increase in debt during the first quarter was due primarily to higher working capital requirements associated with increased sales. In addition, the company had net proceeds of US$67.3 million from its U.S. accounts receivable securitization program at the end of March, compared with US$54.6 million at the end of 2007. The company also had US$42.5 million in net proceeds from similar programs outside the U.S. at the end of the quarter compared with US$42.1 million at the end of 2007. Ferro generated US$10.9 million of net cash from operating activities during the first quarter of 2008. 2008 Second-Quarter Estimates Sales for the second quarter, ending June 30, 2008, are expected to be approximately US$600 million to US$625 million compared with sales of US$554 million in the second quarter of 2007, reflecting an ongoing mix of business conditions in different regions. Business conditions in the U.S. are expected to be difficult due to continued weak demand from customers in housing, appliance and automotive industries. Income from continuing operations for the second quarter is expected to be in the range of US$0.11 to US$0.16 per diluted share. This estimate includes anticipated charges of approximately US$0.17 per share, primarily from the continuation of manufacturing rationalization activities. The company reported income from continuing operations of US$0.10 per share in the second quarter of 2007, including charges of approximately US$0.16 per share. About Ferro Corporation Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a supplier of technology-based performance materials for manufacturers. Ferro materials enhance the performance of products in a variety of end markets, including electronics, solar energy, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products. Headquartered in Cleveland, Ohio, the company has approximately 6,300 employees globally and reported 2007 sales of US$2.2 billion. The company has subsidiaries in Argentina, Australia, France, Germany, Brazil, China, Spain , Hong Kong and Korea, among others. * * * Ferro Corp. carries Moody's corporate family rating of B1 with a positive outlook. This rating was assigned on May 2007. GENERAL MOTORS: Reaches Tentative Settlements With CAW Officials ---------------------------------------------------------------- The Canadian Auto Workers union reached tentative settlements with both General Motors Corp. and Chrysler LLC that meet the pattern established with Ford Motor Co. The CAW represents close to 13,000 GM workers and 8,000 Chrysler workers in Canada. As reported in the Troubled Company Reporter on May 7, 2008, for the first time in its history, Ford Motor Company of Canada, Limited reached a collective bargaining agreement with CAW more than four months before the current contract expires. Ford employees represented by the CAW ratified the new deal in a vote held May 4, 2008. The early settlement brings stability to Ford's operations as it prepares to launch the new Ford Flex crossover vehicle at the Oakville Assembly Complex, which also builds the Ford Edge and Lincoln MKX. Ford disclosed plans to add 500 positions to increase production at the Oakville plant due to high demand for the Ford Edge and Lincoln MKX, and to prepare for the start of production of the Ford Flex. According to a CAW press statement, both settlements were unanimously endorsed by the CAW/GM and CAW/Chrysler Master Bargaining committees, respectively and later overwhelmingly supported by local union leadership. The three-year agreements resist two-tier wages and provide productivity and quality bonuses, improved restructuring incentives, benefit improvements, COLA increases in both second and third years and improved language on health and safety issues among other gains. The union negotiated new product commitments for both Oshawa car and St. Catharines facilities as well as a strong close-out agreement for members at the GM Windsor Transmission plant. During bargaining the company announced that the Windsor plant will close in 2010. The union also extended the operating life of the Chrysler Casting plant in Etobicoke, Ontario, at least until 2011. The tentative settlements are subject to ratification by CAW members. Ratification meetings will be held at various GM and Chrysler locations on Friday, May 16 and Saturday, May 17, 2008. CAW media advisories will be issued after the ratification votes are counted at each company providing details of the results. Ratification meeting dates, times and locations are: * CAW General Motors units -- Friday, May 16 1) Local 1973 Ciociaro Club, Salons A,B,C 3745 N. Talbot Road Windsor, ON 9:00am 2) Local 199 Brock University Bob Davis Gym 500 Glenridge Ave St. Catharines, ON 12:00 noon 3) Local 222 General Motors Centre 99 Athol Street E., Oshawa, ON 3:00pm -- Saturday, May 17 1) Local 636 Local 636 Union Hall 126 Beale Street Woodstock, ON 9:30am * CAW Chrysler units -- Saturday, May 17 1) Local 195 CAW Local 195 Hall 3400 Somme Avenue Windsor, ON 7:00am, 1:00pm, 3:00pm 2) Local 1459 SCA Oplenac 895 Rangeview Road Mississauga, ON (S. of Lakeshore, between Cawthra & Dixie) 8:00am 3) Local 1498 CAW Local 444 union hall 1855 Turner Road Windsor, ON 10:00am 4) Local 1285 International Centre, Hall #1 6900 Airport Road (Airport & Derry Road) Mississauga, ON 10:30am 5) Local 444 University of Windsor 401 Sunset Avenue St. Denis Hall Windsor, ON 2:00pm About Ford Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. About Chrysler Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on May 7, 2008, Standard & Poor's Ratings Services said its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. remain on CreditWatch with negative implications, where they were placed March 17, 2008. The update follows the announcement by Residential Capital LLC (CC/Watch Neg/C) that it is launching an exchange offer for unsecured bonds, which S&P interpret to be a distressed debt exchange. (Residential Capital is a unit of 49%-owned unit GMAC LLC [B/Negative/C]. GENERAL MOTORS: CAW Balks at Notice of Windsor Plant Closure ------------------------------------------------------------ After General Motors Corp. disclosed that it will close its Windsor Transmission plant in 2010, eliminating 1,400 jobs, Canadian Auto Workers President Buzz Hargrove said he is both frustrated and angered by the news. "This decision came as an incredible shock," Mr. Hargrove said. "It will be devastating to our members, their families and the community of Windsor." The Windsor Transmission plant, which manufactures front-wheel- drive, automatic transmissions and transmission components, is the last of General Motors' operations in Windsor. The closure will mark the first time in decades that the company has not had a presence in the community. Mr. Hargrove said provincial politicians have expressed their concern, but he also blasted the federal government for having written off the auto industry, particularly Prime Minister Stephen Harper, Industry Minister Jim Prentice and Finance Minister Jim Flaherty. "Until the federal Conservative government addresses the issues of unfair trade, the ongoing loss of Big Three market share, the high dollar and provides new investment supports, there will be more layoffs and more plant closures," Mr. Hargrove said. The CAW is currently in negotiations with General Motors, with a final settlement depending largely on the company's commitment to new products as well as improved pensions and severance packages for the Windsor workforce. "Our members have done everything they possibly can to ensure the survival of the facility," plant chairperson Ken Bruner said. "It's up to our federal government to step in and support this industry and stop unfair trade before it's too late." Mr. Hargrove says that GM has an obligation to its Windsor Transmission plant workers, citing consistently high levels of quality and productivity. "You simply can't negotiate your way out of scarcity," Mr. Hargrove added. This news comes just weeks after GM announced it will drop the second production shift from the truck plant in Oshawa, Ontario, eliminating close to 1,000 jobs, as reported in the Troubled Company Reporter on April 30, 2008. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on May 7, 2008, Standard & Poor's Ratings Services said its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. remain on CreditWatch with negative implications, where they were placed March 17, 2008. The update follows the announcement by Residential Capital LLC (CC/Watch Neg/C) that it is launching an exchange offer for unsecured bonds, which S&P interpret to be a distressed debt exchange. (Residential Capital is a unit of 49%-owned unit GMAC LLC [B/Negative/C]. HEXION SPECIALTY: March 31 Balance Sheet Upside Down by US$1.3BB ---------------------------------------------------------------- Hexion Specialty Chemicals, Inc. reported its results for the first quarter ended March 31, 2008. Highlights for the first quarter of 2008 include: * Revenues of US$1.64 billion in 2008 compared to US$1.44 billion during the prior year period, an increase of 14 percent. * Operating income of US$82 million for the first quarter of 2008 versus US$104 million for the comparable prior year period. First quarter 2008 operating income was negatively impacted by US$17 million in increased raw materials costs and US$6 million from a Versatic Acids force majeure. * Net loss of US$6 million for the 2008 quarter versus net income of US$4 million in the first quarter of 2007. * Segment EBITDA (earnings before interest, taxes, depreciation and amortization) totaled US$154 million in the first quarter of 2008 compared to US$170 million during the prior year period, a 9 percent decrease. * Adjusted EBITDA was US$678 mi