/raid1/www/Hosts/bankrupt/TCRLA_Public/080708.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, July 8, 2008, Vol. 9, No. 134
Headlines
A R G E N T I N A
AGRARIA SEGUI: Trustee to File Individual Reports on Aug. 20
DANA CORP: Court Denies Appaloosa's US$2.5MM Fee Payment Plea
DANA CORP: Panel Removes USW's US$2.5MM Success Fee Payment Plea
DANA CORP: To Lay Off 484 Workers Due to Slump in Auto Sales
METDAM SA: Proofs of Claim Verification Deadline Is Sept. 15
PESQUERA SAN ISIDRO: Files for Reorganization in Court
RIENTE HNOS: Trustee Verifies Proofs of Claim Until Sept. 9
SONIC CHEMICAL: Proofs of Claim Verification Is Until Sept. 11
TELEFONICA DE ARGENTINA: Telefonica Moviles Buys 280,000 ADRs
VANTRADE SA: Trustee Verifies Proofs of Claim Por Via Incidental
B A H A M A S
HARRAH'S ENTERTAINMENT: S&P Holds B+ Corporate Credit Rating
B A R B A D O S
AMERICAN AIRLINES: Layoffs Won't Significantly Affect Barbados
CONEXANT SYSTEMS: Makes 1 for 10 Reverse Stock Split on June 27
B E R M U D A
UNOCAL BAOYUNTING: Proofs of Claim Filing Deadline Is July 18
UNOCAL BAOYUNTING: Sets Final Shareholders Meeting for Aug. 6
UNOCAL CHINA: Proofs of Claim Filing Deadline Is July 18
UNOCAL CHINA: Will Hold Final Shareholders Meeting on Aug. 6
UNOCAL CHINA EXPLORATION: Claims Filing Deadline Is July 18
UNOCAL CHINA EXPLORATION: Final Shareholders Meeting on Aug. 6
UNOCAL CHINA EXPLORATION AREA: Claims Filing Deadline Is July 18
UNOCAL CHINA NEW: Proofs of Claim Filing Deadline Is July 18
UNOCAL CHINA NEW: Sets Final Shareholders Meeting for Aug. 6
UNOCAL CHUNXIAO: Proofs of Claim Filing Deadline Is July 18
UNOCAL CHUNXIAO: Sets Final Shareholders Meeting for Aug. 6
B R A Z I L
BANCO DO BRASIL: Card Business Brings in BRL29BB in 1st 6 Months
CROWN HOLDINGS: Fitch Affirms 'B+' Issuer Default Rating
CYRELA BRAZIL: Fitch Holds BB Foreign & Local Currency IDRs
HAYES LEMMERZ: Fitch Holds Issuer Default & Debt Ratings
NAVISTAR INT'L: April 30 Balance Sheet Upside-Down by US$562MM
PROPEX INC: Court Okays Funding Payments Under Pension Plans
PROPEX INC: Court OKs Sale of Alto Biz to Lumite for US$3.1MM
SHARPER IMAGE: Objects to Customers' Request to Lift Stay
TELE NORTE: Comments on Relevant Fact Relating to Shares Buyout
TELE NORTE: Anatel Extends Consultation for Telecom Rule Change
C A Y M A N I S L A N D S
CITIGROUP ALTERNATIVE: Final Shareholders Meeting Is on July 10
DARLO LIMITED: Will Hold Final Shareholders Meeting on July 10
FCM JAPAN: Sets Final Shareholders Meeting for July 10
FCM JAPAN KACHI: Will Hold Final Shareholders Meeting on July 10
J-FUND II: Sets Final Shareholders Meeting for July 10
WHITEBEAM CREDIT: To Hold Final Shareholders Meeting on July 10
WILLOW FINANCE: Proofs of Claim Filing Deadline Is July 10
ZEPHYR CDO: Deadline for Proofs of Claim Filing Is July 10
C H I L E
CHEMTURA CORP: Opts to Remain Stand-Alone, Abandons Sale Talks
D O M I N I C A N R E P U B L I C
PRC LLC: Court OKs Deal to Sell Call Center Leasehold to DIRECTV
G U A T E M A L A
BRITISH AIRWAYS: Blames Economy for Passenger Traffic Decline
BRITISH AIRWAYS: Sept. 26 Hearing Set for Antitrust Suit Deal
J A M A I C A
AIR JAMAICA: Will Need Up to US$500MM to Stop Financial Problems
AIR JAMAICA: Choice of Directors Upsets Unions
CABLE & WIRELESS: To Invest J$6BB in Jamaican Mobile Network
SUGAR COMPANY: Minister Sees Next Three Months to be Critical
M E X I C O
CHRYSLER LLC: International Sales Up by 4% in First Half of 2008
CLEAR CHANNEL: Terminates Tender Offer for 7.65% Senior Notes
DURA AUTOMOTIVE: PBGC Director Hails Pension Plans Continuation
MOVIE GALLERY: Anonymous Party Objects to MovieBeam Sale
MOVIE GALLERY: Bo Loyd Quits, Sheriff Mityas to Assume Duties
GRAFTECH INT'L: Buys 8.9% Minority Interest in Seadrift Coke
SALTON INC: Proposed United Pet Deal Cues S&P to Put 'B+' Rating
UNITED RENTALS: Waives Tender Offer Terms on Share Price Mov't
X-RITE INC: Extends Maturity of Promissory Note to July 30
P U E R T O R I C O
NUTRITIONAL SOURCING: Exclusive Plan Filing Deferred
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Decreases Oil Exports to United States
PETROLEOS DE VENEZUELA: Workers Launch Strike Against Firm
PETROLEOS DE VENEZUELA: Will Appoint New Production Chief
* VENEZUELA: Recent Finance Ministry Mandate Get Banks Worried
* Large Companies With Insolvent Balance Sheet
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A R G E N T I N A
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AGRARIA SEGUI: Trustee to File Individual Reports on Aug. 20
------------------------------------------------------------
The court-appointed trustee for Agraria Segui S.C.A.'s
reorganization proceeding will present the validated claims as
individual reports in the National Commercial Court of First
Instance in La Matanza, Buenos Aires, on Aug. 20, 2008.
The trustee verified creditors' proofs of claim until June 23,
2008. The trustee will also submit to court a general report
containing an audit of Agraria Segui's accounting and banking
records on Oct. 1, 2008.
DANA CORP: Court Denies Appaloosa's US$2.5MM Fee Payment Plea
-------------------------------------------------------------
The Honorable Robert Lifland of the U.S. Bankruptcy Court for
the Southern District of New York denies Appaloosa Management,
L.P.'s request for payment of US$2,500,000 in fees and expenses
incurred by its counsel and financial advisor in the Debtors'
Chapter 11 cases, after finding that Appaloosa "undertook no
role in the stormy attempts to reach the Debtors' revenue
enhancement goals."
"Appaloosa has failed to meet its burden in establishing that it
has made a substantial contribution to the Debtors' Chapter 11
cases," Judge Lifland finds. The contribution that Appaloosa
claims to have made to the Debtors' bankruptcy cases was
primarily the result of negotiations among the parties to the
Global Settlement and the Official Committee of Unsecured
Creditors.
Judge Lifland adds that "as a prospective bidder, Appaloosa's
actions were hardly extraordinary and were taken essentially for
its own economic self interest with any incidental benefit to
the Debtors' estates from its actions" failing, as a matter of
law, to rise to the level of a substantial contribution within
the meaning of Section 503(b) of the Bankruptcy Code.
Judge Lifland finds that the substantial changes to the economic
terms of Centerbridge Capital Partners, L.P.'s investment in the
Debtors were principally achieved through negotiations between
Centerbridge and the Ad Hoc Committee of Dana Noteholders and
not in response to Appaloosa's proposals. He notes that
Appaloosa's proposals contained material conditions that never
made them viable, failed to address the fees that would be
payable to Centerbridge, and never carried the support of the
United Steeelworkers, the United Autoworkers, and the
International Machinists Workers.
Judge Lifland states that he agrees with the U.S. Trustee that
Appaloosa is, in essence, "nothing more than a losing bidder who
stands in sharp contrast to Centerbridge, which was intimately
involved in the plan process and completed a final investment
agreement with the Debtors." He further concurs with the U.S.
Trustee that Appaloosa has not overcome the presumption that it
acted only in its self-interest. Judge Lifland further opines
that Appaloosa signed the Plan Support Agreement to preserve its
option to participate in the Centerbridge investment should it
be unsuccessful in realizing its alternative investment
proposals.
"Rather than contributing to the Debtors' reorganization,
Appaloosa has cost the parties-in-interest in [the Debtors']
Chapter 11 cases considerable time and expense on nonviable
proposals and what could be considered a dilatory appeal despite
its having signed onto the Plan Support Agreement with its
preclusive appellate provisions," Judge Lifland points out.
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represens the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.
The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008. Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.
(Dana Corporation Bankruptcy News, Issue No. 78; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
In February 2008, Standard & Poor's Ratings Services assigned
its 'BB-' corporate credit rating to Dana Holding Corp.
following the company's emergence from Chapter 11 on Feb. 1,
2008. The outlook is negative. At the same time, Standard &
Poor's assigned Dana's US$650 million asset-based loan revolving
credit facility due 2013 a 'BB+' rating (two notches higher than
the corporate credit rating) with a recovery rating of '1',
indicating an expectation of very high recovery in the event of
a payment default. In addition, S&P assigned a 'BB' bank loan
rating to Dana's US$1.43 billion senior secured term loan with a
recovery rating of '2', indicating an expectation of average
recovery.
Moody's Investors Service affirmed the ratings of the
reorganized Dana Holding Corporation as: Corporate Family
Rating, B1; Probability of Default Rating, B1. In a related
action, Moody's affirmed the Ba3 rating on the senior secured
term loan and raised the rating on the senior secured asset
based revolving credit facility to Ba2 from Ba3. The outlook is
stable. The financing for the company's emergence from Chapter
11 bankruptcy protection has been funded in line with the
structure originally rated by Moody's in a press release dated
Jan. 7, 2008.
DANA CORP: Panel Removes USW's US$2.5MM Success Fee Payment Plea
----------------------------------------------------------------
The Ad Hoc Committee of Certain Equity Holders of Dana Corp. and
its debtor-affiliates withdrew an appeal from the U.S. District
Court for the Southern District of New York regarding an order
by the Hon. Robert Lifland of the U.S. Bankruptcy Court for the
Southern District of New York that allowed a US$1,750,000
success fee to the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union, for substantial contribution in the
Debtors' Chapter 11 case rendered by USW's financial advisor,
Potok & Co.
The Ad Hoc Committee didn't provide any explanation of its
withdrawal.
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represens the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.
The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008. Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.
(Dana Corporation Bankruptcy News, Issue No. 78; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
In February 2008, Standard & Poor's Ratings Services assigned
its 'BB-' corporate credit rating to Dana Holding Corp.
following the company's emergence from Chapter 11 on Feb. 1,
2008. The outlook is negative. At the same time, Standard &
Poor's assigned Dana's US$650 million asset-based loan revolving
credit facility due 2013 a 'BB+' rating (two notches higher than
the corporate credit rating) with a recovery rating of '1',
indicating an expectation of very high recovery in the event of
a payment default. In addition, S&P assigned a 'BB' bank loan
rating to Dana's US$1.43 billion senior secured term loan with a
recovery rating of '2', indicating an expectation of average
recovery.
Moody's Investors Service affirmed the ratings of the
reorganized Dana Holding Corporation as: Corporate Family
Rating, B1; Probability of Default Rating, B1. In a related
action, Moody's affirmed the Ba3 rating on the senior secured
term loan and raised the rating on the senior secured asset
based revolving credit facility to Ba2 from Ba3. The outlook is
stable. The financing for the company's emergence from Chapter
11 bankruptcy protection has been funded in line with the
structure originally rated by Moody's in a press release dated
Jan. 7, 2008.
DANA CORP: To Lay Off 484 Workers Due to Slump in Auto Sales
------------------------------------------------------------
Dana Corporation will lay off 484 employees at three of its
manufacturing facilities as a result of auto companies' recent
decisions to shut down plants and reduce production of vehicles.
Dana will temporarily lay off 95 workers at its Toledo, Ohio,
plant that puts together axles and driveshafts for Chrysler
LLC's Jeep Liberty and Dodge Nitro models, The Toledo Blade
reported. Chrysler will shut down production of the Liberty and
Nitro models for two months at its Toledo assembly plant
starting July 4.
The Associated Press related that Dana will cut 103 jobs in its
Owensboro, Kentucky, plant as the company eliminates its second
shift because of lower demand for Toyota Motor Corp.'s Tundra
and Sequoia models. The Owensboro plant makes frames for the
Tundra and Sequoia models. The report added that 286 workers at
Dana's Elizabethtown, Kentucky, plant will be laid off
indefinitely as a result of slow sales of Ford Motor Corp.'s
F150 and Expedition SUV models. The Elizabethtown manufactures
frames for the Ford models.
Previously, Dana said it will reduce its workforce in its
Longview, Texas, manufacturing plant by 10% after General Motors
Corp.'s decision to shut down its truck assembly plant starting
July 14. The Longview Plant manufactures truck frames for GM.
According to All Headline News, the worldwide automotive market
decline 18.3%. GM reported a sales slump for June 2008, while
Toyota reported a 21% decline. Nissan Motor Company reported a
drop in sales by nearly 18%, while sales at Ford, also dropped
to 28%. Chrysler plunged to 36%. Audodata Corp. attributed the
decrease in sales to soaring fuel prices, which hit record highs
from March to June 2008, AHN said.
According to AHN, citing analysts, automakers are shifting their
focus to producing hybrid cars or fuel-efficient models. In the
U.S., AHN said Asian automakers Honda Motor Corp. and Hyundai
Motor Company experienced increased in sales in June, outdoing
American car firms GM, Ford and Chrysler.
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represens the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.
The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008. Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.
(Dana Corporation Bankruptcy News, Issue No. 78; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
In February 2008, Standard & Poor's Ratings Services assigned
its 'BB-' corporate credit rating to Dana Holding Corp.
following the company's emergence from Chapter 11 on Feb. 1,
2008. The outlook is negative. At the same time, Standard &
Poor's assigned Dana's US$650 million asset-based loan revolving
credit facility due 2013 a 'BB+' rating (two notches higher than
the corporate credit rating) with a recovery rating of '1',
indicating an expectation of very high recovery in the event of
a payment default. In addition, S&P assigned a 'BB' bank loan
rating to Dana's US$1.43 billion senior secured term loan with a
recovery rating of '2', indicating an expectation of average
recovery.
Moody's Investors Service affirmed the ratings of the
reorganized Dana Holding Corporation as: Corporate Family
Rating, B1; Probability of Default Rating, B1. In a related
action, Moody's affirmed the Ba3 rating on the senior secured
term loan and raised the rating on the senior secured asset
based revolving credit facility to Ba2 from Ba3. The outlook is
stable. The financing for the company's emergence from Chapter
11 bankruptcy protection has been funded in line with the
structure originally rated by Moody's in a press release dated
Jan. 7, 2008.
METDAM SA: Proofs of Claim Verification Deadline Is Sept. 15
------------------------------------------------------------
Andrea Krikorian, the court-appointed trustee for Metdam SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until Sept. 15, 2008.
Ms. Krikorian 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. 33, 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 Metdam 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 Metdam's accounting
and banking records will be submitted in court.
La Nacion didn't state the submission deadlines for the reports.
Ms. Krikorian is also in charge of administering Metdam's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Metdam SA
Miller 4472
Buenos Aires, Argentina
The trustee can be reached at:
Andrea Krikorian
Montevideo 711
Buenos Aires, Argentina
PESQUERA SAN ISIDRO: Files for Reorganization in Court
------------------------------------------------------
Pesquera San Isidro S.A. has requested for reorganization
approval after failing to pay its liabilities since June 26,
2008.
The reorganization petition, once approved by the court, will
allow Pesquera San Isidro 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. 10 in Buenos Aires. Clerk No. 19 assists the court
in this case.
The debtor can be reached at:
Pesquera San Isidro S.A.
Tucuman 540
Buenos Aires, Argentina
RIENTE HNOS: Trustee Verifies Proofs of Claim Until Sept. 9
-----------------------------------------------------------
The court-appointed trustee for Riente Hnos. S.A.C.I.'s
reorganization proceeding will be verifying creditors' proofs of
claim until Sept. 9, 2008.
The trustee will present the validated claims in court as
individual reports on July 21, 2008. The National Commercial
Court of First Instance in San Isidro, Buenos Aires, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by Riente Hnos. and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Riente Hnos.'s
accounting and banking records will be submitted in court on
Dec. 2, 2008.
The debtor can be reached at:
Riente Hnos. S.A.C.I.
Vieytes 1039
Florida - (1602)
Gran Buenos Aires, Argentina
Telephone: (011) 4709-0088
Fax: (011) 4709-0740
SONIC CHEMICAL: Proofs of Claim Verification Is Until Sept. 11
--------------------------------------------------------------
Pedro Valle, the court-appointed trustee for Sonic Chemical's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until Sept. 11, 2008.
Mr. Valle will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 14 in Buenos Aires, with the assistance of Clerk
No. 27, 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 Sonic Chemical 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 Sonic Chemical's
accounting and banking records will be submitted in court.
La Nacion didn't state the submission deadlines for the reports.
Mr. Valle is also in charge of administering Sonic Chemical's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Sonic Chemical
Albarino 1315
Buenos Aires, Argentina
The trustee can be reached at:
Pedro Valle
Avenida de Mayo 1260
Buenos Aires, Argentina
TELEFONICA DE ARGENTINA: Telefonica Moviles Buys 280,000 ADRs
-------------------------------------------------------------
Telefonica de Argentina SA informed Bolsa de Comercio de Buenos
Aires (Buenos Aires Stock Exchange) that Telefonica Moviles
Argentina S.A. has purchased from a mutual fund 280,000 American
Depositary Receipts, each of them representing 40 Class B
registered common shares of par value US$0.10 each, entitled to
1 vote per share of Telefonica de Argentina, corresponding to
0.1604% of that company's capital stock.
This is in compliance with the provisions of section 23 of the
Listing Regulation.
The total transaction price amounted to US$3,556,000.
Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings upgraded its local currency issuer
default rating on Telefonica de Argentina to 'BB' from 'BB-'.
The ratings agency also affirmed its 'B+' foreign currency
issuer default rating on the telecom firm.
Telefonica de Argentina's foreign currency rating is rated B2 by
Moody's Latin America with a positive outlook.
VANTRADE SA: Trustee Verifies Proofs of Claim Por Via Incidental
----------------------------------------------------------------
The court-appointed trustee for Vantrade S.A.'s bankruptcy
proceeding will be verifying creditors' proofs of claim "por via
incidental".
The trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in San Isidro, Buenos Aires, will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Vantrade 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 Vantrade's accounting
and banking records will be submitted in court.
Infobae didn't state the submission dates for the reports.
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B A H A M A S
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HARRAH'S ENTERTAINMENT: S&P Holds B+ Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services has revised its rating
outlook on Las Vegas-based Harrah's Entertainment Inc. and its
wholly owned subsidiary, Harrah's Operating Co. Inc., to
negative from stable. At the same time, S&P affirmed the 'B+'
corporate credit rating on each entity.
"The outlook revision reflects our expectation that operating
performance for the remainder of 2008, and likely well into
2009, will remain pressured given weak economic conditions,"
said Standard & Poor's credit analyst Ben Bubeck.
Property-level EBITDA declined 7% in the quarter ended March 31,
2008, versus the same period in 2007. Recent monthly revenue
reported across gaming markets appears to show this trend is
continuing and may be accelerating, in some cases, as the year
progresses. S&P expect rising gasoline prices and increasing
unemployment rates to continue to impair consumer discretionary
spending in the near term. Therefore, the company's ability to
meet S&P's projections for property-level EBITDA in 2008, and
potentially 2009, now seems questionable.
The 'B+' corporate credit rating reflects Harrah's high debt
leverage and S&P's expectation that the company will not
generate positive free operating cash flow over the next few
years, given a relatively aggressive pipeline of development
activities and heightened debt service obligations. Still, the
company maintains a strong business profile, with a well-
diversified and good-quality portfolio of assets, a solid brand
identity, and an effective customer loyalty program.
Harrah's Entertainment, Inc. -- http://www.harrahs.com-- is the
world's largest provider of branded casino entertainment. Since
its beginning in Reno, Nevada, more than 70 years ago, Harrah's
has grown through development of new properties, expansions and
acquisitions, and now owns or manages casinos on four
continents. The company's properties operate primarily under the
Harrah's, Caesars and Horseshoe brand names; Harrah's also owns
the London Clubs International family of casinos and the World
Series of Poker. The company has operations in Bahamas.
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B A R B A D O S
===============
AMERICAN AIRLINES: Layoffs Won't Significantly Affect Barbados
--------------------------------------------------------------
The Caribbean Broadcasting Corp. reports that tourism officials
in Barbados believe that American Airlines Inc.'s staff cuts
won't significantly affect flights to Barbados.
Various reports say that American Airlines will be dismissing up
to 7,000 of its workers, or 8% of its staff by year-end. The
exact number will depend on how many older employees accept the
voluntary retirement packages, according to the Worker
Adjustment and Retraining Notification American Airlines sent to
the Association of Professional Flight Attendants. The group
said that American Airlines said in the notice it has a plan to
dismiss union members. The Times Online relates that the job
cuts could affect 900 of the airline's 18,000 cabin crew.
According to The Kansas City Star, Jeff Brundage, Human
Resources Senior Vice President of American Airline's parent AMR
Corp., said American Airlines' flight attendants have been
informed that they will lose 900 people beginning Aug. 31.
The layoffs won't lead to a drastic cut in American Airlines'
flights to Barbados, CBC notes, citing the Barbados Tourism
Authority. CBC relates that Barbados' President Stuart Layne
said the only loss would be American Airlines' American Eagle
Service out of Puerto Rico. The flight would be reduced to four
flights per week from being a daily service, President Layne
added.
Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia. The
airline flies to Belgium, Brazil, and Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 17, 2008, Fitch Ratings has affirmed AMR Corp.'s Issuer
default rating at 'B-' and Senior unsecured debt at 'CCC/RR6' as
well as its principal operating subsidiary, American Airlines,
Inc.'s Issuer default rating at 'B-' and Secured bank credit
facility at 'BB-/RR1'. Fitch's rating outlook for both AMR
Corp. and American Airlines has been revised to stable from
positive.
As reported in the Troubled Company Reporter-Latin America on
March 26, 2008, Standard & Poor's Ratings Services revised its
outlook on the long-term ratings on AMR Corp. (B/Negative/B-3)
and subsidiary American Airlines Inc. (B/Negative/--) to
negative from positive. S&P also lowered its short-term rating
on AMR to 'B- 3' from 'B-2' and affirmed all other ratings on
AMR and American.
CONEXANT SYSTEMS: Makes 1 for 10 Reverse Stock Split on June 27
---------------------------------------------------------------
Conexant Systems, Inc., effected a 1-for-10 reverse stock split
of its common stock after market close on June 27, 2008.
Conexant's common stock would trade on a split-adjusted basis
under the temporary NASDAQ ticker symbol CNXTD. On July 30,
2008, the stock will resume trading under the symbol CNXT.
The reverse split reduces the number of shares of Conexant's
outstanding common stock from approximately 495 million shares
to approximately 49.5 million shares. The exercise price and
number of common shares related to outstanding 4% convertible
subordinate notes and stock options have automatically been
proportionately adjusted to reflect the reverse split.
Under the terms of the reverse split, shareowners holding more
than 10 shares of Conexant common stock at the close of business
on June 27, 2008, will receive one new Conexant share for every
10 shares held. Shareowners holding fewer than 10 shares will
receive cash consideration in lieu of fractional shares.
Shareowners of record holding 10 shares or more at the end of
trading on June 27, 2008, will be sent instructions for
exchanging their existing stock certificates for new stock
certificates, and for receiving cash compensation in lieu of
fractional shares. Shareowners with shares in book entry at BNY
Mellon Shareowner Services, or who hold their stock with a
broker, will have their shares automatically converted into new
shares and receive cash compensation for fractional shares held.
About Conexant
Headquartered in Newport Beach, California, Conexant Systems,
Inc. (NASDAQ: CNXT) -- http://www.conexant.com/-- has a
comprehensive portfolio of innovative semiconductor solutions
includes products for Internet connectivity, digital imaging,
and media processing applications. Conexant is a fabless
semiconductor company that recorded revenues of US$809 million
in fiscal year 2007.
Outside the United States, the company has subsidiaries in
Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong,
France, Germany, the United Kingdom, Iceland, India, Israel,
Japan, Netherlands, Singapore and Israel.
* * *
Conexant currently carries Standard & Poor's Ratings Services'
B- rating with a negative outlook.
Moody's Investor Service placed Conexant Systems Inc.'s long
term corporate family and probability of default ratings at
'Caa1' in October 2006. The ratings still hold to date with a
stable outlook.
=============
B E R M U D A
=============
UNOCAL BAOYUNTING: Proofs of Claim Filing Deadline Is July 18
-------------------------------------------------------------
Unocal Baoyunting Development, Ltd.'s creditors are given until
July 18, 2008, to prove their claims to Gary R. Pitman, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Unocal Baoyunting's shareholders agreed on July 2, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL BAOYUNTING: Sets Final Shareholders Meeting for Aug. 6
-------------------------------------------------------------
Unocal Baoyunting Development, Ltd., will hold its final general
meeting on Aug. 6, 2008, at 9:30 a.m. at Chevron House, Church
Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that may
be given by the liquidator;
-- determination by resolution the manner in which the books,
accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
Unocal Baoyunting's shareholders agreed on July 2, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHINA: Proofs of Claim Filing Deadline Is July 18
--------------------------------------------------------
Unocal China Exploration Area 12-21, Ltd.'s creditors are given
until July 18, 2008, to prove their claims to Gary R. Pitman,
the company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Unocal China's shareholders agreed on July 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHINA: Will Hold Final Shareholders Meeting on Aug. 6
------------------------------------------------------------
Unocal China Exploration Area 12-21, Ltd., will hold its final
general meeting on Aug. 6, 2008, at 9:30 a.m. at Chevron House,
Church Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that may
be given by the liquidator;
-- determination by resolution the manner in which the books,
accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
Unocal China's shareholders agreed on July 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHINA EXPLORATION: Claims Filing Deadline Is July 18
-----------------------------------------------------------
Unocal China Exploration Area 20-14, Ltd.'s creditors are given
until July 18, 2008, to prove their claims to Gary R. Pitman,
the company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Unocal China's shareholders agreed on July 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHINA EXPLORATION: Final Shareholders Meeting on Aug. 6
--------------------------------------------------------------
Unocal China Exploration Area 20-14, Ltd., will hold its final
general meeting on Aug. 6, 2008, at 9:30 a.m. at Chevron House,
Church Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that may
be given by the liquidator;
-- determination by resolution the manner in which the books,
accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
Unocal China's shareholders agreed on July 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHINA EXPLORATION AREA: Claims Filing Deadline Is July 18
----------------------------------------------------------------
Unocal China Exploration Area 27-05, Ltd.'s creditors are given
until July 18, 2008, to prove their claims to Gary R. Pitman,
the company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Unocal China's shareholders agreed on July 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHINA NEW: Proofs of Claim Filing Deadline Is July 18
------------------------------------------------------------
Unocal China New Ventures, Ltd.'s creditors are given until
July 18, 2008, to prove their claims to Gary R. Pitman, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Unocal China's shareholders agreed on July 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHINA NEW: Sets Final Shareholders Meeting for Aug. 6
------------------------------------------------------------
Unocal China New Ventures, Ltd., will hold its final general
meeting on Aug. 6, 2008, at 9:30 a.m. at Chevron House, Church
Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that may
be given by the liquidator;
-- determination by resolution the manner in which the books,
accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
Unocal China's shareholders agreed on July 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHUNXIAO: Proofs of Claim Filing Deadline Is July 18
-----------------------------------------------------------
Unocal Chunxiao Development, Ltd.'s creditors are given until
July 18, 2008, to prove their claims to Gary R. Pitman, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Unocal Chunxiao's shareholder decided on July 2, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
UNOCAL CHUNXIAO: Sets Final Shareholders Meeting for Aug. 6
-----------------------------------------------------------
Unocal Chunxiao Development, Ltd., will hold its final general
meeting on Aug. 6, 2008, at 9:30 a.m. at Chevron House, Church
Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that may
be given by the liquidator;
-- determination by resolution the manner in which the books,
accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
Unocal Chunxiao's shareholders agreed on July 2, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Gary R. Pitman
Chevron House
11 Church Street, Hamilton
HM DX, Bermuda
===========
B R A Z I L
===========
BANCO DO BRASIL: Card Business Brings in BRL29BB in 1st 6 Months
----------------------------------------------------------------
Banco do Brasil SA's credit, debit, and private label cards have
brought in BRL29 billion in the first six months of 2008,
NoticiasFinancieras reports.
NoticiasFinancieras relates that the BRL29 billion Banco do
Brasil yielded in the first half of 2008 is about 28.3% higher
compared to the same period in 2007. Usage of the credit,
debit, and private label card in the Brazilian market rose 24%
to BRL176 billion in the first six months of this year, compared
to the same period last year, NoticiasFinancieras notes, citing
the Brazilian Association of Cards and Related Service
Companies.
Banco do Brasil's market share rose to 16.5% in the first six
months of 2008, from 15.9% in the first six months in 2007,
according to the report.
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.
CROWN HOLDINGS: Fitch Affirms 'B+' Issuer Default Rating
--------------------------------------------------------
Fitch Ratings has affirmed the ratings for Crown Holdings, Inc.,
and its subsidiaries Crown Cork & Seal Company, Inc., Crown
Americas, LLC., and Crown European Holdings, SA as:
Crown:
-- Issuer Default Rating 'B+'.
CCS:
-- IDR 'B+';
-- Senior unsecured notes 'B/RR5'.
CA:
-- IDR 'B+';
-- Senior secured dollar term facility 'BB+/RR1';
-- Senior secured dollar revolving facility 'BB+/RR1';
-- Senior unsecured notes 'B+/RR4'.
CEH:
-- IDR 'B+';
-- Senior secured euro term facility 'BB+/RR1';
-- Senior secured euro revolving facility 'BB+/RR1';
-- Senior secured euro 1st priority notes 'BB+/RR1'.
Approximately US$3.8 billion of debt is covered by the ratings.
The Rating Outlook is Stable.
The ratings reflect Crown's leading market share across its
product categories, balanced revenue mix, geographic
diversification, improving cash flow, good liquidity, modest
near-term debt maturities, and volume growth in emerging
markets. Rating concerns include escalating raw materials and
freight costs, intense competition in mature markets, increasing
cash deployment toward shareholders, and to a lesser extent,
asbestos liability.
The Stable Outlook reflects the relatively steady demand in
Crown's key end-markets, consistent operating performance, and
solid cash generation. The company's internationally balanced
asset portfolio is also a key factor lending stability to the
Outlook.
Crown has been challenged with substantially higher raw
materials costs over the past few years but continues to
successfully manage the cost structure through productivity
improvements and effective contractual price adjustments with
its customers. Despite the robust cost inflation, Crown has
maintained stable profitability over the past several quarters,
while improving free cash flow to US$353 million in 2007. The
company also repaid US$224 million of debt during the year.
Leverage declined to 3.9 times at fiscal year end 2007 from 4.4x
at FYE2006, largely achieved through earnings growth as debt
repayment was partially offset by higher debt balances due to
currency translation effects.
Leverage moved up to 4.2x at March 31, 2008 but is still down
from 4.5x over the same prior year period. Fitch expects credit
metrics to strengthen modestly over the course of 2008, driven
by earnings growth. The company must meet tightening financial
covenants which require 3.75x leverage and 3.1x EBITDA interest
coverage by Dec. 31, 2008.
While Crown continues to operate its business well, Fitch
remains somewhat cautious given the pronounced increase in
steel, aluminum, and energy prices in recent months. Crown's
cost structure is largely comprised of aluminum and steel, which
represent roughly 60% of the company's costs. Freight
distribution is also a large component of costs. The company's
contractual arrangements have historically been effective at
limiting Crown's raw materials risk, although a lag in pass-
through pricing can periodically distort profit margins.
Extreme run-ups in costs could present some challenge to the
conversion business model if customers become unwilling or
unable to fully absorb higher costs for their metal packaging
needs. However, the company's global sourcing and operations
should help to mitigate some of the cost pressures, particularly
those which are amplified by the declining value of the dollar
since a large proportion of Crown's costs and revenues are in
foreign currencies.
Crown maintains debt reduction as a financial priority, although
the company continues to increase its cash deployment toward
shareholders. In February 2008, the company announced a three-
year, US$500 million share repurchase authorization. Crown has
accelerated its repurchases in the past and could do so again.
Share repurchases could outpace debt reduction in 2008 as a
result. Fitch expects free cash flow to exceed US$300 million
in 2008. The company is typically a cash user in the first one
to two quarters as it builds inventory for the seasonally strong
summer and fall months.
However, first-quarter 2008 registered a larger than usual use
of cash (operating cash flow was negative US$443 million
compared to negative US$234 million in first-quarter 2007).
Management attributed the results to greater working capital
usage, receivables securitization funding shortfall, and
currency translation. The company still expects free cash flow
of between US$330 million to US$370 million for the full year,
but Fitch believes the high end of this range could prove
challenging.
Other cash obligations in 2008 include pension contributions
expected to be US$67 million; asbestos settlement payments of
about US$26 million; up to US$20 million to settle retiree
benefit litigation and costs associated with minor
restructuring; and dividends to minority interests which have
historically been US$30 million to US$40 million annually.
Modest debt maturities of US$38 million and US$33 million are
due in 2008 and 2009. As of March 31, 2008, Crown had US$282
million cash and US$398 million available under its revolver for
total liquidity of US$680 million.
Crown's recovery analysis has been updated to reflect fiscal
2007 and first-quarter 2008 results. Fitch made certain
adjustments to the analysis to more accurately reflect the
relative position of securities within Crown's complex capital
and corporate structure. The concession payments to senior
unsecured notes at both Crown Americas and Crown Cork and Seal
were eliminated. The allocation of distressed enterprise value
was adjusted accordingly, and the senior unsecured debt at CA
continues to show greater estimated recovery value due to the
structural subordination of debt at CCS.
The EBITDA discount used is 32% and the EBITDA valuation
multiple is 5.5x. The EBITDA discount is somewhat higher than
what is indicated based on the covenant thresholds (about 18%)
because Fitch believes that a deeper discount would be needed to
represent a distressed scenario for Crown. The updated analysis
maintains recovery estimates in line with Fitch's previous
analysis, with all senior secured debt rated 'RR1', senior
unsecured debt at CA rated 'RR4' and senior unsecured debt at
CCS rated 'RR5'.
Based in Philadelphia, Pennsylvania, Crown Holdings Inc. (NYSE:
CCK) -- http://www.crowncork.com/-- through its subsidiaries,
is a supplier of packaging products to consumer marketing
companies around the world. In Latin America, the company has
operations in Mexico and Brazil. The company also maintains
operations in the United Kingdom , France, Canada, and the
Middle East. In the Asia-Pacific region, the company has an
office in Singapore. Crown Holdings, Inc., through its
subsidiaries, is a leading supplier of packaging products to
consumer marketing companies around the world.
CYRELA BRAZIL: Fitch Holds BB Foreign & Local Currency IDRs
-----------------------------------------------------------
Fitch Ratings has affirmed Cyrela Brazil Realty S.A.
Empreendimentos e Participacoes Long-term foreign and local
currency IDRs at 'BB'. The outlooks are stable. Fitch has also
assigned Cyrela a National Long-term rating of 'AA-(bra)' with
Stable Outlook. At the same time, Fitch has affirmed and
withdrawn the 'BB' Long-term local currency IDR assigned on 13
July 2007 to Cyrela's real denominated senior unsecured notes.
Cyrela's ratings reflect the company's position as the largest
developer in Brazil's real estate industry, its solid land
inventory, the strength of Cyrela's franchise and its above
average sales speed. They also take into account the company's
consistent operational performance improvement over the last
four years and ample access to capital markets. The ratings
incorporate Cyrela's continued expansion in the highly
competitive and re-surging Brazilian real estate industry, which
has led to moderate but growing leverage, while preserving a
high liquidity level.
The ratings also incorporate the expectation for continuing
solid macro economical fundamentals necessary for sustainable
growth in the Brazilian homebuilding sector. The sector is
constrained by industry risk factors, such as its dependence on
domestic economic stability and growth, volatile income streams
and dependence on the steady availability of long-term funding
to off-set cash needs from the constant undertaking of projects.
Cyrela has consolidated its leading position in its traditional
markets of Sao Paulo and Rio de Janeiro over the last two years
and more recently has diversified its market presence by region
and income segment. The company has improved margins and sales
volumes in the face of a highly competitive environment, marked
by the capitalisation of around twenty homebuilders in 2006 and
2007. Cyrela has maintained the advantage of not being pressured
for land acquisition given its solid land bank. At end-March
2008, total land bank was BRL23.6 billion of potential sales
value, comprising 9.4 million of square meters, with Cyrela
owning 78% of the total or BRL18.4 billion, sufficient for three
years of project launches.
The expected increase in operations to the low-middle income
segment should be supported by lines of credit from the Housing
Financial System, which is disbursed in accordance with project
execution and repaid through the delivery of homebuyers
receivables at project completion, transferring the risk off the
builder's balance sheet. In addition, Cyrela will use long-term
funding to further extend its long-term debt maturity profile.
Fitch expects some decline in gross and EBITDA margins in 2008,
resulting from Cyrela's expansion in project launches for the
low-middle income segment, which carry lower margins than those
of the middle-to-high income segments, where Cyrela will
continue concentrating its operation. During the last twelve
months ending 31 March 2008, adjusted EBITDA increased 66%, to
BRL426 million, while adjusted EBITDA margin increased slightly
to 22.1%, from 21.8% in the prior comparable period. Net
revenues have grown 15 since 2003 compared to LTM ended 31 March
2008, from BRL131 million to BRL1.9 billion while EBITDA grew
9.7, from BRL44 million to BRL426 million over the same time
period
The company's leverage is expected to gradually increase during
2008-2011, but remain moderate, with an adequate debt and
maturity profile for the risks associated with its business, and
in line with the rating category. Cyrela's pro forma net debt-
to-EBITDA ratio at end-2008 is expected at around 1.2 versus 1.1
for the LTM ended 31 March 2008, and increasing to around 2.5 by
2011, as a result of additional debt to sustain the growth of
project launchings.
Going forward, Fitch expects Cyrela to maintain an adequate
liquidity cushion. As an internal policy, the company retains a
minimum cash reserve of around BRL500 million at all times. At
end-March 2008, total cash and marketable securities were
equivalent to 4.2 its short-term debt and 70% of its total-debt.
Cyrela was established in 1962 by the controlling shareholder
Elie Horn, and achieved a leading market share in the
metropolitan areas of Sao Paulo and Rio de Janeiro and has
quickly expanded its operations into other parts of Brazil. On
22 June 2008, Cyrela and Agra Empreendimentos Imobiliarios SA
announced a memorandum of understanding for the acquisition of
Agra by Cyrela through an exchange of shares, which is neutral
to the rating.
Headquartered in Sao Paulo, Brazil, Cyrela Brazil Realty S.A.
Empreendimentos e Participacoes --
http://www.brazilrealty.com.br/-- is the most complete company
of the Brazilian real estate market, acting as a residential
real estate developer in 14 Brazilian states and in Argentina;
it also operates in the construction and real estate brokerage
segments. The company is listed on the Bovespa's Novo Mercado
under the ticker CYRE3.
HAYES LEMMERZ: Fitch Holds Issuer Default & Debt Ratings
--------------------------------------------------------
Fitch Ratings has affirmed these Issuer Default Ratings and
outstanding debt ratings for Hayes Lemmerz International Inc.
and subsidiaries:
Hayes Lemmerz International, Inc.
-- IDR at 'B'.
HLI Operating Company, Inc. (HLI Opco)
-- IDR at 'B';
-- Senior secured revolving credit facility at 'BB/RR1'.
Hayes Lemmerz Finance - Luxembourg S.A. (European Holdco)
-- IDR at 'B';
-- Senior secured revolving credit facility at 'BB/RR1';
-- Senior secured Euro term loan at 'BB/RR1';
-- Senior secured Euro synthetic LOC facility at 'BB/RR1';
-- Senior unsecured Euro notes at 'B-/RR5'.
The Rating Outlook is Stable. Approximately US$646 million of
on balance sheet debt is covered by Fitch's ratings.
The ratings reflect HAYZ's leading position in the global wheel
market, geographic and customer diversity, significant progress
in restructuring operations, good credit metrics for the rating,
and solid liquidity position. Fitch's concerns include the
impact that extreme commodity cost increases could have on
working capital and margins, an expectation of negative free
cash flow in the current fiscal year including restructuring
costs, some exposure to the weak North American commercial and
light vehicle market, and the tightening of a leverage covenant
at the beginning of 2009.
The Stable Outlook rests on HAYZ' geographic diversity, which
helps to offset the decline of sales in the North American
market this year. In 2007, HAYZ generated 80% of its revenues
outside of the U.S. After the closure of HAYZ's Gainesville,
Georgia aluminum passenger car wheel facility this year, which
yields negative EBITDA and cash flow, the company will be even
less exposed to the U.S. market and operating results will be
favorably affected. Fitch also expects that Commercial truck
volume will rebound next year in North America, which should
further help results.
While HAYZ has a good history of recovering commodity cost
increases, the Outlook could be negatively affected by higher
commodity costs which require additional financing for working
capital and which could affect margins if the company is unable
to achieve full cost recovery. In contrast, HAYZ's Outlook
could be positively affected if higher free cash flow were to
materialize from consistent operating improvements and increased
volumes, leading to more significant debt reduction. HAYZ's
senior secured credit facility leverage covenant tightens from
4.0 times to 3.0x at the beginning of 2009, putting some
pressure on the company to reduce leverage. HAYZ has no
significant debt maturities until 2014, but it could reduce term
loan borrowings.
Going forward, HAYZ is expected to benefit from its steel wheel
technology, moves to lower cost countries and growth from non-
Detroit 3 customers, especially in regions of increasing vehicle
demand such as Eastern Europe, India, and Brazil. In 2007
fiscal year Eastern Europe made up a larger percent of HAYZ'
sales than the U.S.
The Recovery Ratings and notching in the debt structure reflect
Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to the various debt
classes. The analysis is based on a going concern scenario
rather than liquidation. Fitch estimates that in a distressed
scenario, HAYZ' enterprise value could significantly deteriorate
and secured debt holders would most likely still receive full
recovery. As a result, the senior secured facilities are rated
'RR1' (91% to 100% recovery). The senior unsecured Euro notes
are rated 'RR5' (11% to 30%) to reflect the junior position of
the senior unsecured debt holders' claim relative to the senior
secured debt holders.
Including the cash and marketable securities balance of
US$106.8 million, total liquidity at the end of HAYZ first
quarter on April 30, 2008 was US$249 million. At quarter-end,
HAYZ had no borrowing under its US$125 million secured revolver
and US$25 million available under its U.S. securitization
facility. As of April 30, Fitch calculates that HAYZ debt-to-
LTM EBITDA rose modestly to 4.0 times, from 3.8x at the end of
its fiscal year ending January 30. Fitch's calculated debt-to-
EBITDA metric is more conservative than the company's reported
debt-to-LTM adjusted EBITDA figure.
Based in Northville, Michigan, Hayes Lemmerz International Inc.
(Nasdaq: HAYZ) -- http://www.hayes-lemmerz.com/-- is a supplier
of automotive and commercial highway wheels, brakes and
powertrain components. The company has 30 facilities and
approximately 8,500 employees worldwide. The company has
operations in India, Brazil, and Germany. 96% of HAYZ 2007
fiscal year revenue came from global wheel sales and 80% of the
company's revenue came from outside the U.S.
NAVISTAR INT'L: April 30 Balance Sheet Upside-Down by US$562MM
--------------------------------------------------------------
Navistar International Corporation has filed its first and
second quarter 2008 form 10-Qs with the Securities and Exchange
Commission.
At April 30, 2008, the company's consolidated balance sheet
showed US$11.6 billion in total assets and US$12.2 billion in
total liabilities, resulting in a US$562.0 million total
stockholders' deficit.
The company reported net sales and revenue of US$6.9 billion for
the first half of fiscal 2008, a 13 percent increase over the
same period in 2007. Net income was US$162.0 million, an
improvement of US$175.0 million over the first half of fiscal
2007.
Manufacturing segment profit was US$424.0 million for the first
half of fiscal 2008 doubling 2007 performance of US$208.0
million. The Financial Services segment loss was US$6.0 million
for the six months ended April 30, 2008, compared with a profit
of US$84.0 million for the same period in 2007.
Cash Requirements
The company generates cash flow primarily from the sale of
trucks, diesel engines, and parts. In addition, the company
generates cash flow from product financing provided to the
company's dealers and retail customers by the Financial Services
segment. The company believes that, in the absence of
significant unanticipated cash demands, current and forecasted
cash flow from the company's manufacturing operations, financial
services operations, and financing capacity will provide
sufficient funds to meet anticipated operating requirements,
capital expenditures, equity investments, and strategic
acquisitions.
At April 30, 2008, the company's manufacturing operations had a
total of US$339.0 million available under committed credit
facilities that mature in 2012.
Full-text copies of the company's consolidated financial
statements for the second quarter ended April 30, 2008, are
available for free at http://researcharchives.com/t/s?2f19
Full-text copies of the company's consolidated financial
statements for the first quarter ended Jan. 31, 2008, are
available for free at http://researcharchives.com/t/s?2f1a
About Navistar International
Based in Warrenville, Illinois, Navistar International
Corporation (Other OTC: NAVZ) -- http://www.navistar.com/-- is
a holding company whose wholly owned subsidiaries produce
International(R) brand commercial and military trucks,
MaxxForce(TM) brand diesel engines, IC brand school and
commercial buses, and Workhorse brand chassis for motor homes
and step vans. It also is a private-label designer and
manufacturer of diesel engines for the pickup truck, van and SUV
markets. The company also provides truck and diesel engine
parts and service. Another affiliate offers financing services.
The company has operations in Mexico, Brazil, Iceland and India.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 3, 2008, Fitch affirmed Navistar International Corp.'s
'BB-' Issuer Default and 'BB-' Senior unsecured bank facility
ratings.
PROPEX INC: Court Okays Funding Payments Under Pension Plans
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Tennessee
authorized -- but did not direct -- Propex Inc. and its debtor-
affiliates to pay the minimum funding payments as they come due
under the Propex Inc. Cash Value Retirement Plan and a Propex
Inc. Balance Retirement Plan, as originally established by AMOCO
Fabrics and Fibers Company in 1993. However, the Hon. John Cook
made no determination as to the nature, amount, priority or lien
status of any claims related to the Pension Plans.
The Debtors are not required to seek further Court authority to
pay the minimum funding payments set forth in a schedule that
they provided to the Official Committee of Unsecured Creditors
BNP Paribas on May 29, 2008.
In the event that the Creditors Committee or BNP Paribas object
to any minimum funding payment, they must do so in writing, no
later than 30 days before the next scheduled funding date.
Objections must be set for hearing prior to the next scheduled
funding date.
In the event that either the Creditors Committee or BNP Paribas
file an objection, the Debtors will not be authorized to make
any payments that are the subject of the objection without
Court-order. In the event that the Court overrules the
objection, the Debtor will be authorized but not required to
make that Minimum Funding Payment.
Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber. It is produces
primary and secondary carpet backing. Propex operates in North
America, Europe, and Brazil.
The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249). The debtors' has selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them. As of Sept. 30, 2007, the
debtors' balance sheet showed total assets of US$585,700,000 and
total debts of US$527,400,000. The Debtors' exclusive period to
file a plan of reorganization expires on May 17, 2008.
(Propex Bankruptcy News, Issue No. 13; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
PROPEX INC: Court OKs Sale of Alto Biz to Lumite for US$3.1MM
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Tennessee,
Southern Division, authorized Propex Inc. and its debtor-
affiliates on June 25, 2008, to sell their manufacturing
facility in Alto, Georgia, free and clear of all liens and
claims to Lumite, Inc. for US$3,100,000, pursuant to the terms
of an amended Asset Purchase Agreement between the parties.
Propex manufactured fabrics for trampolines, swimming pool
covers, industrial filtration, D.E. filtration, and
miscellaneous government requirements at its Alto, Georgia
facility.
Lumite's purchase of the 226,200-square-foot facility is on an
"as is, where is" basis. As previously reported, Lumite is 50%
owned by Thrace Plastics Co. S.A., a Greek company engaged in
the production and trade of plastics, textiles and packaging
materials primarily throughout Europe.
The Debtors and Lumite amended the APA on June 23, 2008, to
incorporate certain changes in:
-- the list of contracts to be assumed by the Debtors and
assigned to Lumite was replaced with an updated list;
-- the list of excluded equipment that will not be transfered
to Lumite was deleted and updated; and
-- the list of purchased assets to be transferred to Lumite
was replaced with an updated list.
A full-text copy of the Amended Lumite APA is available for free
at http://bankrupt.com/misc/PROPEX_AmendedLumiteAPA.pdf
The Court held that Lumite will have sole responsibility for
paying any amounts due under Sections 365(b)(1)(A) and (B) of
the Bankruptcy Code, in connection with the assumption and
assignment of the Assumed Contracts, Licenses, Contracts and
Leases. Each non-debtor party to the Assumed Contracts,
Licenses, Contracts and Leases will be forever barred from
asserting any cure amounts against the Debtors.
The Hon. John Cook also authorized the Debtors to pay at, or
promptly following, the Closing, all real property taxes accrued
during the 2007 calendar year, and any unpaid real estate taxes
from prior calendar years, that encumber or otherwise constitute
a lien on the Alto Business.
All objections to the Alto Business Sale Motion, that have not
been withdrawn, waived, or settled are overruled on the merits,
Judge Cook stated.
The Internal Revenue Service objected to the sale on June 19,
2008, on the grounds that the Debtors may have a substantial
prepetition liability to the IRS relating to their pension
plans. The IRS also asserted that the Debtors must provide for
the resulting capital gains tax to be paid at closing to the
IRS.
Additional Provisions
On and after the Closing, Judge Cook authorized and directed
each of the Debtors' creditors to execute documents and take all
other actions as may be reasonably necessary to release its
Liens or Claims, if any, against the Alto Business.
The Court also directed the Debtors to pay the net proceeds from
the Sale to BNP Paribas, as administrative agent for the
Lenders. BNP Paribas will apply the Sale Proceeds in accordance
with the Superpriority Debtor-in-Possession Credit Agreement
approved by the Court on Feb. 13, 2008.
According to a report from Bloomberg News, a former manager of
the Debtors is one of the equity owners in Lumite. However,
Bloomberg did not identify the former manager.
"The acquisition of the [Alto Business] directly supports our
objectives to increase production capacity and to further expand
the company's US market," Ron Rooks, president of Lumite, told
Textile World. "The purchase is in perfect accordance with
Lumite's and Thrace Plastics' mutually ambitious pursuit of an
evolving geosynthetics industry. This is an excellent example
of how we plan to meet the evolving global market demand with a
unified, aggressive approach."
The Court will convene a hearing on objections filed by any non-
debtor counter-party to an executory contract added to the APA
by virtue of the Amendment, at a later date.
About Propex Inc.
Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber. It is produces
primary and secondary carpet backing. Propex operates in North
America, Europe, and Brazil.
The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249). The debtors' has selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them. As of Sept. 30, 2007, the
debtors' balance sheet showed total assets of US$585,700,000 and
total debts of US$527,400,000. The Debtors' exclusive period to
file a plan of reorganization expires on May 17, 2008.
(Propex Bankruptcy News, Issue No. 13; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SHARPER IMAGE: Objects to Customers' Request to Lift Stay
---------------------------------------------------------
The Sharper Image Corp., joined by the Official Committee of
Unsecured Creditors, assert that Tyler Stevens and Joe Henry
Duran, Jr., must demonstrate that "cause" exists for the court
to lift the automatic stay.
Messers. Stevens and Duran, plaintiffs in a coordinated state
court litigation against the Debtor in the Superior Court of
California, San Diego County, asks the U.S. Bankruptcy Court for
the District of Delaware to lift the automatic stay to allow
them to move forward with the action until their claims are
resolved.
The Action alleges that the Debtor violated Section 1747.08 of
the California Civil Code by and through its practices of
utilizing an "Address Capture Policy," which, according to the
complaint, placed California consumers at risk for harassment,
identity theft, and credit card fraud. The complaint further
alleges that the Debtor unlawfully requested and recorded
hundreds of thousands of its California customers' addresses and
credit card numbers during credit card transactions to create a
massive marketing database for the Debtor's own benefit.
Debtor, Committee Object
According to Steven K. Kortanek, Esq., at Womble Carlyle
Sandridge & Rice, PLLC, in Wilmington, Delaware, Mr. Stevens
and Mr. Duran cannot demonstrate that cause exists to lift the
stay. The Debtor is a liquidating estate with little time,
resources, or personnel remaining to engage in protracted
litigation. If the stay is lifted, it is likely that the Debtor
cannot defend the action in state court, which could severely
prejudice the estate and its creditors, and delay the claims
resolution process.
On the other hand, Mr. Stevens and Mr. Duran can demonstrate no
prejudice if their request is denied, Mr. Kortanek states. For
instance, their personally identifiable information will be
protected consistent with Section 363 of the Bankruptcy Code,
and their remaining claims can be expeditiously resolved in the
claims reconciliation process.
Additionally, Mr. Kortanek maintains, Mr. Stevens and Mr. Duran
cannot show a likelihood of success in the underlying action,
nor can they demonstrate that the Putative Class can be
certified. They cannot demonstrate that the factors determining
the existence of a "cause" weigh in their favor. Accordingly,
the request for stay relief should be denied, Mr. Kortanek
asserts.
About Sharper Image
Based in San Francisco, California, Sharper Image Corp. --
http://www.sharperimage.com/-- is a multi-channel specialty
retailer. It operates in three principal selling channels: the
Sharper Image specialty stores throughout the U.S., the Sharper
Image catalog and the Internet. The company has operations in
Australia, Brazil and Mexico. In addition, through its Brand
Licensing Division, it is also licensing the Sharper Image brand
to select third parties to allow them to sell Sharper Image
branded products in other channels of distribution.
The company filed for Chapter 11 protection on Feb. 19, 2008
(Bankr. D.D., Case No. 08-10322). Steven K. Kortanek, Esq. at
Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the
Debtor in its restructuring efforts. An Official Committee of
UnsecuredCreditors has been appointed in the case. Whiteford
Taylor Preston LLC is the Committee's Delaware counsel
When the Debtor filed for bankruptcy, it listed total assets of
US$251,500,000 and total debts of US$199,000,000.
Judge Kevin Gross of the U.S. Bankruptcy Court for the District
of Delaware will convene a hearing on July 16, 2008, at 11:00
a.m., to consider approval of the request of The Sharper Image
Corp. to extend its exclusive plan proposal period.
(Sharper Image Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
TELE NORTE: Comments on Relevant Fact Relating to Shares Buyout
---------------------------------------------------------------
Tele Norte Leste Participacoes S.A. and Telemar Norte Leste S.A.
disclosed that they are aware of the "Relevant Fact" disclosed
by their controlling shareholder, Telemar Participacoes S.A.,
pursuant to which Telemar has informed that, in connection with
the disclosed in the Relevant Fact dated April 25, 2008 relating
to the restructuring of TmarPart's ownership structure, it
purchased all of the shares issued by Argolis Holdings S.A.,
which is the holder (together with the members of the board of
directors appointed by Argolis) of 100% of the shares issued by
Lexpart Participacoes S.A., which, in turn, is the holder of
352,730,590 registered common shares issued by the company,
representing approximately 11.41% of the capital stock of the
company.
To cancel the shares of Lexpart, TmarPart, as the direct
controlling shareholder of Argolis and the indirect controlling
shareholder of Lexpart, held an extraordinary shareholders'
meeting on June 30, 2008, that was attended by all of the
shareholders of the Company, to merge such companies into the
company. Through this merger, TmarPart will succeed to all of
the rights and obligations of Argolis and Lexpart, which
companies shall be legally terminated.
Since TmarPart holds all of the shares issued by Argolis and
Argolis holds all of the shares issued by Lexpart (together with
the four members of the board of directors appointed by Argolis,
each of whom holds one common share issued by Lexpart), the
capital stock of TmarPart will not change, pursuant to article
226, section 1, of Brazilian Corporation Law, and there is no
need to issue new shares to the shareholders of the company.
However, as a result of the canceling of shares held by Lexpart,
article 5 of the company's bylaws will be amended to reflect the
new number of common shares.
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes S.A. -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
* * *
As reported on April 27, 2007, Standard & Poor's Ratings
Services placed on CreditWatch with negative implications the
'BB+' corporate credit rating on Tele Norte Leste Participacoes
S.A. The creditwatch resulted from TmarPart's decision to buy
out its holding company's preferred shares.
TELE NORTE: Anatel Extends Consultation for Telecom Rule Change
---------------------------------------------------------------
News daily Valor Economico reports that Brazilian regulator
Anatel has extended until Aug. 1, from July 17, the public
consultation for changes in the telecom law, which will allow
Tele Norte Leste Participacoes S.A.'s acquisition of Brasil
Telecom Participacoes S.A.
As reported in the Troubled Company Reporter-Latin America on
June 17, 2008, Anatel authorized the revision of the telecoms
law that will allow Tele Norte to proceed with its acquisition
of Brasil Telecom.
Valor Economico relates that Anatel extended the consultation
period after associations for the defense of consumers sought
for more time to comment.
Anabela Reis at Bloomberg News notes that telecoms operating in
different areas of Brazil are currently not allowed to have the
same controlling shareholder.
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes S.A. -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
* * *
As reported on April 27, 2007, Standard & Poor's Ratings
Services placed on CreditWatch with negative implications the
'BB+' corporate credit rating on Tele Norte Leste Participacoes
S.A. The creditwatch resulted from TmarPart's decision to buy
out its holding company's preferred shares.
==========================
C A Y M A N I S L A N D S
==========================
CITIGROUP ALTERNATIVE: Final Shareholders Meeting Is on July 10
---------------------------------------------------------------
Citigroup Alternative Investments Multi Alpha Master (ERS)
Portfolio Ltd. will hold its final shareholders meeting on
July 10, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.
The accounting of the wind-up process will be taken up during
the meeting.
Citigroup Alternative's shareholders agreed on April 7, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril and Bobby Toor
c/o Maples Finance Limited
P.O. Box 1093
Grand Cayman, Cayman Islands
DARLO LIMITED: Will Hold Final Shareholders Meeting on July 10
--------------------------------------------------------------
Darlo Limited will hold its final shareholders meeting on
July 10, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.
The accounting of the wind-up process will be taken up during
the meeting.
Darlo Limited's shareholders agreed on April 7, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Daniel Rewalt and Giles Kerley
c/o Maples Finance Limited
P.O. Box 1093
Grand Cayman, Cayman Islands
FCM JAPAN: Sets Final Shareholders Meeting for July 10
------------------------------------------------------
FCM Japan Kachi Fund Ltd. will hold its final shareholders
meeting on July 10, 2008, at 10:00 a.m., at the registered
office of the company.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidator of the company to retain the
records of the company for a period of six years from the
dissolution of the company, after which they may be
destroyed.
FCM Japan's shareholder agreed on May 30, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
David A.K. Walker and Lawrence Edwards
PwC Corporate Finance & Recovery (Cayman) Limited
c/o PricewaterhouseCoopers Cayman Islands
Strathvale House, George Town,
Grand Cayman, Cayman Islands
Contact for inquiries:
Skye Quinn
P.O. Box 258
Grand Cayman, Cayman Islands
Telephone: (345) 914 8678
Fax: (345) 945 4237
FCM JAPAN KACHI: Will Hold Final Shareholders Meeting on July 10
----------------------------------------------------------------
FCM Japan Kachi Master Fund Ltd. will hold its final
shareholders meeting on July 10, 2008, at 10:30 a.m., at the
registered office of the company.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidator of the company to retain the
records of the company for a period of six years from the
dissolution of the company, after which they may be
destroyed.
FCM Japan Kachi's shareholder agreed on May 30, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
David A.K. Walker and Lawrence Edwards
PwC Corporate Finance & Recovery (Cayman) Limited
c/o PricewaterhouseCoopers Cayman Islands
Strathvale House, George Town,
Grand Cayman, Cayman Islands
Contact for inquiries:
Skye Quinn
P.O. Box 258
Grand Cayman, Cayman Islands
Telephone: (345) 914 8678
Fax: (345) 945 4237
J-FUND II: Sets Final Shareholders Meeting for July 10
------------------------------------------------------
J-Fund II Limited will hold its final shareholders meeting on
July 10, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.
The accounting of the wind-up process will be taken up during
the meeting.
J-Fund II's shareholders agreed on April 4, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril and Richard Gordon
c/o Maples Finance Limited
P.O. Box 1093
Grand Cayman, Cayman Islands
WHITEBEAM CREDIT: To Hold Final Shareholders Meeting on July 10
---------------------------------------------------------------
Whitebeam Credit Fund will hold its final shareholders meeting
on July 10, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.
The accounting of the wind-up process will be taken up during
the meeting.
Whitebeam Credit's shareholders agreed on April 7, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Bobby Toor and Peter Huber
c/o Maples Finance Limited
P.O. Box 1093
Grand Cayman, Cayman Islands
WILLOW FINANCE: Proofs of Claim Filing Deadline Is July 10
----------------------------------------------------------
Willow Finance Ltd.'s creditors have until July 10, 2008, to
prove their claims to George Bashforth and Emile Small, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Willow Finance's shareholders decided on May 29, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
George Bashforth and Emile Small
c/o Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
ZEPHYR CDO: Deadline for Proofs of Claim Filing Is July 10
----------------------------------------------------------
Zephyr CDO Ltd.'s creditors have until July 10, 2008, to prove
their claims to George Bashforth and Emile Small, the company's
liquidators, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Zephyr's shareholder(s) decided on May 29, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
George Bashforth and Emile Small
c/o Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
=========
C H I L E
=========
CHEMTURA CORP: Opts to Remain Stand-Alone, Abandons Sale Talks
--------------------------------------------------------------
Chemtura Corporation's board of directors has terminated
discussions on a potential sale, merger or other business
combination after determining that these discussions are
unlikely at this time to result in an offer at a sufficiently
attractive price.
The board said that, after thoroughly exploring a potential
sale, merger or other business combination involving the entire
company, it has concluded that shareholders' interests will be
best served by continuing to operate as a stand-alone company
and focusing on its own growth and efficiency initiatives.
On Dec. 18, 2007, Chemtura said that a special committee of its
board of directors and the company's financial advisor, Merrill
Lynch & Co., would explore a variety of strategic alternatives.
Presently, the board of directors has instructed management, the
special committee, and Merrill Lynch to continue active
consideration of the company's other strategic options,
including (among other options) select business divestitures,
value-creating acquisitions, joint ventures and changes in the
company's capital structure, which could include a stock
repurchase program.
While the company's evaluation of strategic alternatives
continues, there can be no assurance that this process will
result in any specific transaction. The company does not expect
to disclose any further developments regarding the exploration
of strategic alternatives unless and until its board of
directors has approved a transaction or a strategic alternative.
Sale Talks with Blackstone and Apollo
Around May 2008, Blackstone Group LP and Apollo Management LP
commenced discussions regarding an acquisition of Chemtura,
various reports said, citing people familiar with the deal.
According to the unnamed sources, it is uncertain that the deal
will push through given the size of Chemtura and the slumping
economy.
As reported in the Troubled Company Reporter on Dec. 21, 2007,
Moody's Investors Service placed Chemtura's corporate family
rating of Ba2 under review for possible downgrade after reports
that its "board of directors has authorized management to
consider a wide range of strategic alternatives available to the
company to enhance shareholder value."
At the same time, Standard & Poor's Ratings Services placed its
'BB+' corporate credit and senior unsecured debt ratings of
Chemtura on CreditWatch with developing implications, after
reports that management is considering strategic alternatives,
including sale or merger of the company.
Sale of Oleochemicals Biz
The TCR related on Jan. 29, 2008, that Chemtura completed the
sale of its oleochemicals business and Memphis, Tenn.
manufacturing facility to PMC Group NA Inc. for an undisclosed
amount. Proceeds from the transaction will be used to reduce
debt.
All 260 employees at the Memphis facility are expected to
transfer to PMC Group NA Inc. The oleochemicals business had
revenues for 2007 of about US$175 million.
Sale of Fluorochemicals Biz
The TCR said on Feb. 11, 2008, that Chemtura completed the sale
of its Fluorochemicals business and related production facility
to E.I. du Pont de Nemours and Company in an all-cash deal for
an undisclosed amount.
Chemtura completed the divestiture of its organic peroxides
business in May, its EPDM business in June and its optical
monomers business in October 2007.
The about 25 employees who work for the Fluorochemicals
business have become employees of DuPont. The Fluorochemicals
business had revenues for 2006 of about US$56 million. Included
in the sale is the Fluorochemicals production unit at Chemtura's
El Dorado, Arkansas plant. Chemtura retains ownership of its
other El Dorado facilities.
First Quarter 2008 Results
Chemtura reported net sales of US$909 million and a net loss of
US$21 million, for the first quarter of 2008 and net earnings on
a managed basis of US$23 million. During the first quarter of
2007, the company had net sales of US$889 million and a net loss
of US$13 million.
As of March 31, 2008, the company had total assets of
US$4.4 billion, total liabilities of US$3.3 billion, and total
stockholders' equity of US$1.9 billion. Cash and cash
equivalents were US$115 million as of March 31, 2008, compared
to US$77 million as of Dec. 31, 2007.
About Chemtura Corp.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- manufactures and
markets specialty chemicals, crop protection products, and pool,
spa and home care products. The company has subsidiaries in the
United Kingdom, Netherlands, Australia, China, Japan, Chile and
Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 9, 2008, Standard & Poor's Ratings Services lowered its
corporate credit and senior secured debt ratings of Chemtura
Corp. to 'BB' from 'BB+'. The ratings remain on CreditWatch
with developing implications, where they were placed Dec. 19,
2007. The downgrade reflects S&P's expectation that cash flow
protection measures will not strengthen to, and be sustained at,
levels appropriate for the prior rating, although profitability
should improve near term.
===================================
D O M I N I C A N R E P U B L I C
===================================
PRC LLC: Court OKs Deal to Sell Call Center Leasehold to DIRECTV
----------------------------------------------------------------
The U.S. Bankruptcy Court approved an agreement between PRC LLC
and its debtor-affiliates and DIRECTV Inc. that allows DIRECTV
to purchase the Debtors' leasehold on their Huntington call
center.
The Debtors leased a call center in Huntington, West Virginia so
that they can provide certain services to DIRECTV, Inc., and its
affiliates. After the bankruptcy filing, DIRECTV Customer
Services, Inc., an affiliate of DIRECTV Inc. indicated its
interest in acquiring the Debtors' leasehold on the Huntington
Facility, including certain equipment and other personal
property in the premises.
After engaging in significant, arm's-length negotiations, the
Debtors and DIRECTV Customer Services reached an agreement on an
Asset Purchase Agreement, the salient terms of which are:
(a) The Debtors will assume the Huntington Facility lease and
assign the lease to DIRECTV Customer; and will be
responsible for any cure costs associated with the
assumption and assignment of the Lease to DIRECTV
Customer, upon approval of the Court and upon closing by
June 30, 2008;
(b) DIRECTV Customer Services will purchase the Debtors'
assets in the Huntington facility for US$0.20 per dollar
of the assets' book value;
(c) DIRECTV Customer Services may interview and hire the
Debtors' employees at the Huntington Facility, who, if
hired by DIRECTV Customer Services, will be compensated
according to a tiered-rate schedule ranging from US$1,000
to US$2,500 per employee based on the number of employees
ultimately hired by the DIRECTV Customer Services; and
(d) The minimum total consideration to the Debtors under the
Purchase Agreement is US$450,000.
A full-text copy is of the DIRECTV Purchase Agreement available
at http://researcharchives.com/t/s?2e13
According to a report by WOWKTV.COM, DIRECTV will employ more
than 550 customer service representatives and supervisors, and
will provide support to more than 17,000,000 customers, as
DIRECTV celebrates the grand opening of the Huntington Facility.
About PRC LLC
Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC
-- http://www.prcnet.com/-- is a leading provider of customer
management solutions. PRC markets its services to brand-
focused, Fortune 500 U.S. corporations and delivers these
services through a global network of call centers in the U.S.,
Philippines, India, and the Dominican Republic.
PRC is the sole member of each of PRC B2B, LLC, and Precision
Response of Pennsylvania, LLC, and the sole shareholder of
Access Direct Telemarketing, Inc., each of which is a debtor and
debtor-in-possession in PRC's joint Chapter 11 cases.
Panther/DCP Intermediate Holdings, LLC, is the sole member of
PRC.
PRC, together with its operating subsidiaries PRC B2B, Access
Direct, and PRC PA, is a leading provider of complex,
consultative, outsourced services in the Customer Care and Sales
& Marketing segments of the business process outsourcing
industry. Since 1982, the company has acquired and grown
customer relationships for some of the world's largest and most
brand-focused corporations in the financial services, media,
telecommunications, transportation, and retail industries.
The company and four of its affiliates filed for Chapter 11
protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-
10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP,
represents the Debtors in their restructuring efforts. The
Debtors chose Stephen Dube, at CXO LLC, as their restructuring
and turnaround advisor. Additionally, Evercore Group LLC
provides investment and financial counsel to the Debtors.
The Debtors' consolidated financial condition as of Dec. 31,
2007 showed total assets of US$354,000,000 and total debts of
US$261,000,000.
The Debtors submitted to the Court a Chapter 11 Plan of
Reorganization on Feb. 12, 2008. The Court confirmed that Plan
mid-June 2008. (PRC LLC Bankruptcy News, Issue
No. 17; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Blames Economy for Passenger Traffic Decline
-------------------------------------------------------------
British Airways Plc released its traffic and capacity statistics
for June 2008.
In June 2008, passenger capacity, measured in Available-Seat-
Kilometers, was 1.2% above June 2007. Traffic, measured in
Revenue-Passenger-Kilometers, fell by 3.7%. This resulted in a
passenger load factor decrease of 3.8 points versus last year,
to 76.7%. Traffic comprised a 3.1% decrease in premium traffic
and a 3.8% fall in non-premium traffic.
Cargo, measured in Cargo-Ton-Kilometers, rose by 3.3%.
Market Conditions
Brent crude oil prices have risen from US$110 per barrel at the
beginning of May to US$147. Significant increases have been
made to prices including surcharges reflecting this rise in fuel
costs.
The U.K. consumer environment is difficult leading to reduced
traffic volumes. Long-haul premium and short-haul non-premium
continue to be the better performing segments of the business.
Strategic Developments
British Airways' new subsidiary airline OpenSkies made its first
commercial flight on June 19, 2008, between Paris Orly and New
York JFK. The company has added to the business with the
acquisition of L'Avion in July.
British Airways reached an agreement to sell its 10.5% share in
Air Mauritius for GBP3.2 million.
Following a further review in response to continuing rising oil
prices, the company restructured its fuel surcharge for tickets
sold in its First, Club World, World Traveller Plus and Club
Europe cabins from June 19, 2008.
The airline completed the first phase of its transfer of long-
haul services from Terminal 4 into Terminal 5 on June 5, 2008.
The remaining services to operate from Terminal 5 will move in
two stages, on Sept. 17, 2008, and at the end of October 2008.
T5 continues to work well with almost 1.7 million passengers
using the terminal in June.
The airline has completed its move out of the Compass Centre at
Heathrow Airport. From June 25, 2008, all Heathrow based cabin
crew and flight crew report for their duties at a dedicated
center within Terminal 5.
About British Airways
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
British Airways Plc carries a senior unsecured debt rating of
Ba1 from Moody's Investors' Service with a stable outlook.
Ratings apply to date.
BRITISH AIRWAYS: Sept. 26 Hearing Set for Antitrust Suit Deal
-------------------------------------------------------------
The U.S. District Court for the Northern District of California
will hold a fairness hearing on Sept. 26, 2008, at 10:00 a.m. to
consider final approval of a proposed settlement by British
Airways PLC and Virgin Atlantic Airways, Ltd., in the matter,
"In Re International Air Transportation Surcharge Antitrust
Litigation MDL-1793, Case No. 06-cv-01793-CRB."
The hearing will be held before U.S. District Court Judge
Charles Breyer, at 450 Golden Gate Avenue (Courtroom 8, 19th
Floor), in San Francisco, California.
Any objection to the settlement must be made by Sept. 12, 2008.
Deadline for the submission of claim forms is on Dec. 31, 2012.
Case Background
In general, the lawsuit claims that the defendants unlawfully
conspired to fix prices of fuel surcharges imposed on "long-
haul" passenger fares.
Long-haul flights include all Virgin Atlantic flights and most
British Airways flights between the U.K. and non-E.U.
destinations, including flights to and from the U.S. All
flights on Virgin Atlantic qualify as long-haul flights.
The suit defines as a class member anyone who bought a ticket on
British Airways or Virgin Atlantic Airways in the U.S. or in the
United Kingdom between Aug. 11, 2004, and March 23, 2006. These
class members are entitled to a partial refund of the fuel
surcharge.
Recently, a proposed settlement was reached by British Airways
and Virgin Atlantic. The settlement resolves the claims of U.S.
Classes and U.K. Classes.
In the U.S., the deal requires the companies to refund up to
US$59,007,273 to members of the U.S. Settlement Classes who
submit valid claim forms, with any unclaimed funds being paid to
a charity, Miracle Flights for Kids.
In the U.K., the deal requires the companies to refund up to
GBP73,531,076 to U.K. Class Members who submit valid claim
forms. In the U.K., British Airways and Virgin Atlantic will
keep refunds that are not claimed.
About British Airways
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
British Airways Plc carries a senior unsecured debt rating of
Ba1 from Moody's Investors' Service with a stable outlook.
Ratings apply to date.
=============
J A M A I C A
=============
AIR JAMAICA: Will Need Up to US$500MM to Stop Financial Problems
----------------------------------------------------------------
Air Jamaica will need financial assistance of up to
US$500 million to get out of its financial difficulties, Balford
Henry at The Jamaica Observer cites Don Wehby, Minister Without
Portfolio in Jamaica's Ministry of Finance, as saying.
The Observer relates that Minister Wehby, during a post-Cabinet
press briefing at the Jamaica House, said "I have done an
exercise that says what will it take as a minimum to
recapitalize Air Jamaica, so that it can return to its glory
days, and the figure that I have come up with is between
US$300 million and US$500 million. In other words, that would
be the capital injection needed to put the airline in good
stead." The minister said that he based the amounts on Air
Jamaica's US$1.2 billion deficit.
Partnerships that the government need to continue operating Air
Jamaica after the March 31, 2009 divestment deadline "must have
those kind of resources to recapitalize" the airline, The
Observer says, citing Minister Wehby. The recapitalization must
be "on an equity or long-term basis", the minister added.
"Once the airline has the capital and the technical expertise, I
really believe that the losses can be wiped out over a number of
years," The Observer further quoted Minister Wehby.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to own Air Jamaica
permanently.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a B1 rating
to Air Jamaica Limited's guaranteed senior unsecured notes.
On July 21, 2006, Standard & Poor's Rating Services assigned a
"B" long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, based on the government's
unconditional guarantee of both principal and interest payments.
AIR JAMAICA: Choice of Directors Upsets Unions
----------------------------------------------
The National Workers Union and the Bustamante Industrial Trade
Union have expressed their dismay over Air Jamaica's appointment
of new directors, saying that employees weren't represented in
the board, Radio Jamaica reports.
According to Caribseek, the Air Jamaica board retained nine
members from the previous 11-member board and added
three new members, namely Derick Latibeaudiere, Chris Berry, and
Colin Steele on July 1.
Despite an offer for pilot Omar Parkins to join the Air Jamaica
board, the two unions said it isn't enough, Radio
Jamaica notes.
Radio Jamaica relates that Bustamante Industrial Trade Union
president Kavon Gayle is asking for a director to be
appointed to oversee employee relations.
Radio Jamaica quoted Mr. Gayle as saying, “I am yet to see the
person on this Board that can demonstrate that role in terms
of interfacing with the staff, employees and the unions.”
Former Air Jamaica board member Noel Hylton and two other
directors who have not been retained regularly
interfaced with the airline's staff, Radio Jamaica says, citing
Bustamante Industrial.
National Workers Union's Vice President Granville Valentine said
that an employee representative on the board is
important for the stabilization of the airline before its
divestment, Radio Jamaica states. "We believe that if
you have that good balance along with the participation of
workers then we should be starting out on the right
footing," Mr. Valentine added.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers
vacation packages through Air Jamaica Vacations. The company
closed its intra-island services unit, Air Jamaica
Express, in October 2005. The Jamaican government assumed full
ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it
went private in 1994. The Jamaican government does not plan to
own Air Jamaica permanently.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a
B1 rating to Air Jamaica Limited's guaranteed senior unsecured
notes.
On July 21, 2006, Standard & Poor's Rating Services assigned a
"B" long-term foreign issuer credit rating on Air
Jamaica Ltd., which is equal to the long-term foreign currency
sovereign credit rating on Jamaica, based on the
government's unconditional guarantee of both principal and
interest payments.
CABLE & WIRELESS: To Invest J$6BB in Jamaican Mobile Network
------------------------------------------------------------
The Jamaica Observer reports that Cable and Wireless Plc's
Jamaican unit will invest some J$6 billion in launching a new 3G
mobile network in Jamaica.
According to The Observer, the new network will first be
deployed in Kingston by year-end. The three-phased project will
take three years to complete. It will cost J$2.1 billion in the
first year, increasing incrementally for each subsequent year
depending on the take-up of the service. The project includes
the installation of 100 mobile sites to support 3G "and to a
lesser extent, its existing 2G GSM network". Montego Bay will
be a priority area in the second phase of the project. Phase
two will increase 3G Internet speeds by up to 14.4 megabytes per
second.
The first 3G mobile phones should be available by December, The
Observer says, citing Cable & Wireless. The new network will
allow subscribers to use services including videoconferencing
and the ability to e-mail large files using high bandwidth
speeds of up to seven megabytes per second, which is faster than
the firm's current fixed-line Internet services.
The Observer states that Cable and Wireless will collaborate
with Ericsson for the project.
Headquartered in London, Cable & Wireless Plc
-- http://www.cw.com/new/-- operates through two standalone
business units -- International and Europe, Asia & US. The
International business unit operates integrated
telecommunications companies in 33 countries, with principal
operations in the Caribbean, Panama, Macau, Monaco and the
Channel Islands. The Europe, Asia & U.S. business unit provides
enterprise and carrier solutions to the largest users of
telecoms services across the U.K., U.S., continental Europe and
Asia -- and wholesale broadband services in the U.K. The
company also has operations in India, China, the Cayman Islands
and the Middle East.
* * *
As reported in the Troubled Company Reporter-Europe on
May 26, 2008, Standard & Poor's Ratings Services has revised its
outlook on Cable & Wireless PLC to developing from stable. The
developing outlook means ratings can be raised, lowered, or
affirmed. The 'BB-' long-term and 'B' short-term corporate
credit ratings remain unchanged.
SUGAR COMPANY: Minister Sees Next Three Months to be Critical
-------------------------------------------------------------
Agriculture Minister Christopher Tufton told Jamaica Obeserver
that Infinity Bio Energy Limited's takeover of Sugar Company of
Jamaica Limited's five sugar factories on September 30, would be
critical in terms of arrangements in the next three months.
The arrangements include:
-- legislative amendments;
-- surveys and transfers of lands; and
-- those involving the ministries of Finance and the
Public Service, Energy and Transportation and Works.
As reported in the Troubled Company Reporter-Latin America on
July 1, 2008, the Sugar Company will surrender ownership of its
sugar factories to Infinity Bio-Energy. Jamaica's Prime
Minister Bruce Golding signed a Head of Agreement with Infinity
Bio-Energy for the factories' divestment. As agreed, the Sugar
Company will still be managing the government's assets at the
six sugar factories and the workers' status won't change before
the final transfer of assets on Sept. 30. After the assets are
transferred to Infinity Bio-Energy, the government will keep a
25% stake in the company for at least three years.
According to Jamaica Obeserver, Aubyn Hill has been appointed to
lead an implementation team from the representatives of the:
* ministry's Sugar Transformation Unit (STU),
* Sugar Industry Authority (SIA),
* Development Bank of Jamaica (DBJ),
* Attorney General's Department and
* Sugar Company of Jamaica (SCJ).
Mr. Tufton has focused on the social aspects of the transition,
especially in terms of how it would affect SCJ's current
workers. He explained that the STU would deepent its work with
the stakeholders, especially the employees, to apply proper
programs in dealing with the social implications of the
privatisation, adding that during the transitional period, it
would estimate the number of workers the new company would hire
after Sept. 30, Jamaica Observer reports.
Citing Mr. Tufton, Jamaica Oberver relates some of the key
elements of the deal:
-- The government and Infinity will enter into a joint
venture through a company to be established named Newco.
Government's equity in Newco will be 25 per cent. This
equity represents the value of SCJ's assets and Petrojam
Ethanol. The Government and Infinity will have directors
on the board proportionate to their equity in the company.
-- The Government will lease sugar cane lands to Newco for a
term of no less than 50 years, with an option for another
25-year lease;
-- The factory lands, comprising the factory compound and an
additional area of not more than 100 acres immediately
surrounding the factories, will be sold to Infinity;
-- Government will enter into an implementation agreement
with Infinity within 30 days of the transition date
confirming its commitment to support and ensure the smooth
implementation of the transaction.
The Sugar Company of Jamaica Limited, a.k.a. SCJ, was formed in
November 1993 by a consortium made up of J. Wray & Nephew
Limited, Manufacturers Investments Limited and Booker Tate
Limited. The three companies each held 17% equity in SCJ, with
the remaining 49% being held by the government of Jamaica. In
1998, the government became the sole shareholder of SCJ by
acquiring the interests of the members of the consortium. Its
stated goal was to maximize efficiency, productivity and
profitability of the three sugar factories, within three years.
The principal activities of the company are the cultivation of
cane and the manufacture and sale of sugar and molasses.
The Sugar Company of Jamaica Limited registered a net loss of
almost US$1.1 billion for the financial year ended Sept. 30,
2005, 80% higher than the US$600 million reported in the
previous financial year. Sugar Company blamed its financial
deterioration to the reduction in sugar cane production.
According to published reports, the Jamaican government has
taken responsibility for the payment of the firm's debts. Radio
Jamaica has said that to date, the five sugar factories have
incurred J$3 billion in debts. The government is now selling
the factories.
===========
M E X I C O
===========
CHRYSLER LLC: International Sales Up by 4% in First Half of 2008
----------------------------------------------------------------
Chrysler LLC established a record for the best mid-year sales
ever outside North America as sales increased 4% (118,386 units)
compared to the same period in 2007; a result of the increased
demand for fuel-efficient models like the Jeep(R) Compass, Jeep
Patriot and Chrysler Sebring. June 2008 sales (20,198 units)
were 12% below those of June 2007, which was a record month for
the company.
Regional Sales
Chrysler sales in Europe decreased 1% year-to-date (64,684
units).
Sales in Russia grew by 69% to 4,638 units during the first six
months of 2008, the most significant growth of any market in the
region. The increase was led by Dodge Caliber sales (1,733
units), which were up 82%, compared to the same time last year.
Sales in the Asia Pacific region increased 45% by the mid-year
point, with 21,923 units sold.
China led all markets in growth for the first half of the year,
as sales climbed 113% to reach 10,517 units. The significant
sales increase positioned China as Chrysler's number-two-volume
market outside North America behind Italy.
Australia and Japan, two key markets in the region, have also
achieved noteworthy growth so far in 2008. In Australia, sales
increased 21% year-to-date (5,638 units) and Japan sales have
grown 14% (2,840 units).
Significant growth was achieved by several Latin American
markets year-to-date.
The greatest increase for Chrysler's Latin American sales was in
Argentina, where sales grew 88% to 2,245 units.
Brazilian sales increased 33% (3,096 units), fueled by demand
for the Chrysler PT Cruiser and Dodge Ram Pickup.
Brand Sales
The Dodge brand achieved the highest growth outside North
America, with an increase of 36% year-to-date (33,942 units).
Jeep sales grew 2% (46,541 units) during the same time period,
while Chrysler brand sales declined 13% (37,903 units).
Sales of fuel-efficient models continued to gain momentum.
Chrysler Sebring sales more than tripled (up 229%) so far this
year to 7,602 units; and the Jeep brand vehicles in the small
SUV segment, Jeep Compass and Patriot, have achieved combined
sales of 16,365 units, an increase of 86% for sales in this
growing segment.
Chrysler offers access to its vehicles to more customers now
that there are a greater number of right-hand-drive and diesel
offerings. In 2008, Chrysler will offer a total of 18 vehicles
in major markets outside North America, 17 of those vehicles
will be available in right-hand-drive and with a diesel
powertrain option.
About Chrysler LLC
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.
* * *
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-Latin America on
June 25, 2008, Moody's Investors Service affirmed the B3
Corporate Family Rating and Probability of Default Rating of
Chrysler LLC, but changed the outlook to negative from stable.
The change in outlook reflects the increasingly challenging
environment faced by Chrysler as the outlook for US vehicle
demand falls, and as high fuel costs drive US consumers away
from light trucks and SUVs, and toward more fuel efficient
vehicles.
At the same time, Standard & Poor's Ratings Services is placing
its corporate credit ratings on the three U.S. automakers,
General Motors Corp., Ford Motor Co., and Chrysler LLC, on
CreditWatch with negative implications. Included in the
CreditWatch placement are the finance units Ford Motor Credit
Co. and DaimlerChrysler Financial Services Americas LLC, as well
as GM's 49%-owned finance affiliate GMAC LLC.
In May 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.
CLEAR CHANNEL: Terminates Tender Offer for 7.65% Senior Notes
-------------------------------------------------------------
Clear Channel Communications, Inc., terminated its tender offer
and consent solicitation for its outstanding 7.65% Senior Notes
due 2010 (CUSIP No. 184502AK8). None of the CCU Notes were
purchased in the offer and all CCU Notes previously tendered and
not withdrawn will be promptly returned to their respective
holders.
In connection with AMFM Operating Inc.'s tender offer for its
outstanding 8% Senior Notes due 2008 (CUSIP No. 158916AL0),
Clear Channel disclosed that AMFM has extended the date on which
the AMFM tender offer is scheduled to expire from 8:00 a.m. New
York City time on July 3, 2008, to 8:00 a.m. New York City time
on July 30, 2008, and the consent payment deadline for the AMFM
Notes from 8:00 a.m. New York City time on July 3, 2008 to 8:00
a.m. New York City time on July 30, 2008. The Offer Expiration
Date and the Consent Payment Deadline are subject to extension
by AMFM in its sole discretion, including in connection with the
terms of the settlement agreement and the amendment to the
merger agreement.
The completion of the tender offer and consent solicitation for
the AMFM Notes is conditioned upon the satisfaction or waiver of
all of the conditions precedent to the Agreement and Plan of
Merger by and among Clear Channel, CC Media Holdings, Inc., B
Triple Crown Finco, LLC, T Triple Crown Finco, LLC and BT Triple
Crown Merger Co., Inc., dated Nov. 16, 2006, as amended by
Amendment No. 1, dated April 18, 2007, Amendment No. 2, dated
May 17, 2007 and Amendment No. 3 dated May 13, 2008 and the
closing of the merger contemplated by the Merger Agreement. The
closing of the Merger has not occurred.
On March 26, 2008, Clear Channel, joined by CC Media Holdings,
Inc., filed a lawsuit in the Texas State Court in Bexar County,
Texas, against Citigroup, Deutsche Bank, Morgan Stanley, Credit
Suisse, The Royal Bank of Scotland, and Wachovia, the banks who
had committed to provide the debt financing for the Merger. On
May 13, 2008, Clear Channel reported that Clear Channel,
entities sponsored by Bain Capital Partners, LLC and Thomas H.
Lee Partners, L.P., and a bank syndicate had entered into a
settlement agreement in connection with the lawsuits previously
filed in the Texas and in New York. Pursuant to the terms of
the settlement agreement, the parties entered into a third
amendment to the merger agreement.
Special Meeting of Shareholders Set July 24
Clear Channel will hold a special meeting of its shareholders on
July 24, 2008, at which the proposed Merger will be considered.
While the parties expect that the closing will occur on
July 30, 2008, the parties to the settlement agreement have
agreed to extend the outside date for completion of the merger
to Dec. 31, 2008. AMFM intends to complete the tender offer
and consent solicitation for the AMFM Notes upon consummation of
the merger.
Clear Channel previously disclosed on Jan. 2, 2008 that AMFM had
received, pursuant to its tender offer and consent solicitation
for the AMFM Notes, the requisite consents to adopt the proposed
amendments to the AMFM Notes and the indenture governing the
AMFM Notes. As of July 1, 2008, approximately 99% of the AMFM
Notes have been validly tendered and not withdrawn. The AMFM
tender offer and consent solicitation is being made pursuant to
the terms and conditions set forth in the AMFM Offer to Purchase
and Consent Solicitation Statement for the AMFM Notes dated
Dec. 17, 2007, and the related AMFM Letter of Transmittal and
Consent.
Clear Channel has retained Citi to act as the lead dealer
manager for the tender offer and lead solicitation agent for the
consent solicitation and Deutsche Bank Securities Inc. and
Morgan Stanley & Co. Incorporated to act as co-dealer managers
for the tender offer and co-solicitation agents for the consent
solicitation. Global Bondholder Services Corporation is the
Information Agent for the tender offer and the consent
solicitation. Questions regarding the tender offer should be
directed to Citi at (800) 558-3745 (toll-free) or (212) 723-6106
(collect). Requests for documentation should be directed to
Global Bondholder Services Corporation at (212) 430-3774 (for
banks and brokers only) or (866) 924-2200 (for all others toll-
free).
About Clear Channel Communications
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand. As of Dec. 31, 2007, it owned 717 core radio
stations, 288 non-core radio stations which are being marketed
for sale and a leading national radio network operating in the
United States.
* * *
As reported by the Troubled Company Reporter-Latin America on
June 23, 2008, Standard & Poor's Ratings Services lowered its
corporate credit rating on Clear Channel Communications to 'B'
from 'B+' based on the proposed financing of the company's
pending leveraged buyout by the private equity group co-led by
Thomas H. Lee Partners L.P. and Bain Capital Partners LLC.
At the same time, S&P removed all the ratings from CreditWatch,
where they had been placed with negative implications on
Oct. 26, 2006, following the company's announcement that it was
exploring strategic alternatives to enhance shareholder value,
including a possible sale of the company. The outlook is
stable.
S&P further assigned its 'B' bank loan rating and '3' recovery
rating on Clear Channel's US$16.1 billion of new senior secured
credit facilities. The '3' recovery rating indicates S&P's
expectation for meaningful (50% to 70%) recovery of principal
and pre-petition interest in the event of a payment default.
S&P also assigned its 'CCC+' rating on the company's
US$2.3 billion of new senior unsecured notes, with a recovery
rating of '6', indicating its expectation for negligible (0% to
10%) recovery in the event of a payment default.
At the same time, S&P lowered its rating on the company's US$5.1
billion of existing senior unsecured notes to 'CCC+' from 'B-'
and assigned a recovery rating of '6' on these issues.
The 'B-' rating on the company's existing 8% senior notes due
November 2008 at its AMFM Operating Inc. subsidiary remains on
CreditWatch with negative implications pending the completion of
the company's tender offer for these notes. S&P lowered the
rating on Clear Channel's existing US$750 million of 7.65%
senior notes due 2010 to 'CCC+' from 'B-' and assigned a
recovery rating of '6', reflecting the potential for this issue
to remain outstanding until maturity.
DURA AUTOMOTIVE: PBGC Director Hails Pension Plans Continuation
---------------------------------------------------------------
Charles E.F. Millard, director of the Pension Benefit Guaranty
Corporation, issued a statement:
"As Dura Automotive Systems Inc. emerges from Chapter 11
protection, the PBGC applauds the continuation of the company's
defined benefit pension plans. Throughout the restructuring
process, Dura indicated that it would keep its plans ongoing,
and it's making good on that promise. Dura should be commended
for keeping the pension commitments made to its workers and
retirees."
As disclosed in the Troubled Company Reporter on June 30, 2008,
Dura successfully emerged from Chapter 11 bankruptcy protection.
The company officially concluded its Chapter 11 reorganization
process after meeting all statutory requirements of its Revised
Joint Plan of Reorganization, including successfully closing
their exit financing facilities and filing associated
documentation.
As insurer of America's private defined benefit pensions, the
PBGC takes an active role in corporate bankruptcy proceedings on
behalf of workers whose pension plans are not fully funded.
Since 2005, the PBGC has worked with 13 auto parts companies
that have emerged successfully from Chapter 11 protection
without terminating their pension plans. These include Federal
Mogul Corp., Tower Automotive and Dana Corp.
Dura sponsors four defined benefit pension plans that cover more
than 4,600 participants. The plan of reorganization confirmed
by the bankruptcy court provides that Dura Automotive will
continue to sponsor and maintain those plans. During the
bankruptcy case, Dura Automotive continued to make pension
funding contributions as required by ERISA, the federal pension
law that created the PBGC. The agency actively participated in
the bankruptcy proceeding, serving as a member of the official
committee representing unsecured creditors.
The PBGC is a federal corporation created under the Employee
Retirement Income Security Act of 1974. It currently guarantees
payment of basic pension benefits earned by 44 million American
workers and retirees participating in over 30,000 private-sector
defined benefit pension plans. The agency receives no funds
from general tax revenues. Operations are financed largely by
insurance premiums paid by companies that sponsor pension plans
and by investment returns.
Rochester Hills, Michigan-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006,
(Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C.,
Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq.,
at Kirkland & Ellis LLP are lead counsels for the Debtors'
bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason
M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsels. Baker & McKenzie acts as the Debtors'
special counsel. Togut, Segal & Segal LLP is the Debtors'
conflicts counsel. Miller Buckfire & Co., LLC is the Debtors'
investment banker. Glass & Associates Inc., gives financial
advice to the Debtor. Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.
As of Jan. 31, 2008, the Debtor had US$1,503,682,000 in total
assets and US$1,623,632,000 in total liabilities.
On April 3, 2008, the Court approved the Debtors' revised
Disclosure Statement explaining their revised Chapter 11 plan of
reorganization.
(Dura Automotive Bankruptcy News; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Anonymous Party Objects to MovieBeam Sale
--------------------------------------------------------
In a letter to the U.S. Bankruptcy Court for the Eastern
District of Virginia dated July 1, 2008, an anonymous sender
objected to Movie Gallery Inc. and its debtor-affiliates' sale
of its over-the-air MovieBeam streaming service to Dar Capital.
The Court authorized the Debtors in May 2008, to sell, among
other things, tangible assets and all of M.G. Digital LLC's
ownership rights to, and interest in, the intellectual property
used solely in connection with the MovieBeam service, to Dar
Capital for US$2,250,000, pursuant to the terms of a purchase
agreement. Dar Capital has deposited US$250,000 with an escrow
agent.
According to the anonymous letter, Movie Gallery sold its
"satellites, routing computers and tons of equipment" to a
"mysterious" British Virgin Island company, which equipment may
have been worth "way over" US$25,000,000.
The letter deemed that the transaction was done "in secretive
nature", says the Home Media Magazine.
"Have a published public auction for these assets . . . not a
closed door sale to just one buyer," the letter proposed.
The companies involved in the transaction should be
investigated, the letter added.
Movie Gallery CEO C.J. "Gabe" Gabriel, Jr., declined to comment
on the letter, says Danny King of Video Business.
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.
The company has operations in Mexico.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853). Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel. The Debtors'
claims & balloting agent is Kurtzman Carson Consultants LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.
The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel.
The U.S. Bankruptcy Court for the Eastern District of Virginia
confirmed the Debtors' Second Amended Chapter 11 Plan of
Reorganization on April 9, 2008. (Movie Gallery Bankruptcy News
Issue No. 31; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Bo Loyd Quits, Sheriff Mityas to Assume Duties
-------------------------------------------------------------
Bo Loyd, Executive Vice President and Chief Merchandising
Officer of Movie Gallery Inc., has resigned as of June 20, 2008,
according to a press statement.
Sherif Mityas, the chief operating officer and president of
Retail Operations, will assume Mr. Loyd's responsibilities.
"I would like to thank Bo for his hard work and dedication to
the Movie Gallery brands," said C.J. "Gabe" Gabriel, chief
executive officer of Movie Gallery.
"We have benefited from Bo's business acumen and appreciate his
contributions that have helped make Movie Gallery what it is
today. On of the Board and the Company, we offer him our
gratitude and best wishes in his future endeavors," Mr. Gabe
added.
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.
The company has operations in Mexico.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853). Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel. The Debtors'
claims & balloting agent is Kurtzman Carson Consultants LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.
The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel.
The U.S. Bankruptcy Court for the Eastern District of Virginia
confirmed the Debtors' Second Amended Chapter 11 Plan of
Reorganization on April 9, 2008. (Movie Gallery Bankruptcy News
Issue No. 31; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
GRAFTECH INT'L: Buys 8.9% Minority Interest in Seadrift Coke
------------------------------------------------------------
GrafTech International Ltd. acquired an 18.9% minority interest
in Seadrift Coke L.P. from Falcon Mezzanine Partners L.P. for
US$135 million.
The company said that Seadrift is the world's second largest
needle coke producer which is the primary raw material used to
manufacture graphite electrodes and represents approximately 40%
of GrafTech's total cost to produce a graphite electrode.
GrafTech will utilize approximately US$35 million of cash on
hand to fund the purchase price with the remainder to be
financed utilizing our revolving credit facility. GrafTech
expects to repay the amount drawn on the revolver with operating
cash flow within the next 12 months.
"The transaction is expected to be accretive to earnings in 2008
and underscores our belief in the strong graphite electrode
industry supply chain fundamentals," Craig Shular, GrafTech
Chief executive officer, said. "Based on market conditions, we
expect the supply of needle coke to remain tight for the
foreseeable future and our strategic investment in Seadrift will
allow us to share in anticipated favorable economic returns."
The investment in Seadrift includes minority rights consisting
of one out of five board seats and a put provision, whereby
GrafTech can exercise its right to sell its stake in Seadrift
for fair market value, exercisable beginning in May 2011.
Additional minority rights associated with the investment are
available for free at http://ResearchArchives.com/t/s?2f1d
GrafTech does not expect its minority interest in Seadrift to
affect its issued guidance for 2008, as its proportionate share
of Seadrift's earnings will be reported as Other Income, which
is excluded from the company's operational results and guidance.
About Seadrift Coke L.P.
Headquartered in Port Lavaca, Texas, Seadrift Coke L.P. --
http://www.seadriftcoke.com/-- is a producer of petroleum
needle coke. The Seadrift coker was built in 1983 and is a
petroleum needle coker. The coker's capacity approaches 180,000
metric tons per year. The Seadrift plant is self-sufficient,
requiring only supplies of feedstock and fresh water to run
continuously. In addition to calcined needle coke, the
operation produces fuel gas, naphtha, gas oil and electricity as
by-products.
About Graftech International
Headquartered in Parma, Ohio, GrafTech International Ltd. -–
http://www.graftech.com/-- (NYSE:GTI) manufactures and provides
high quality synthetic and natural graphite and carbon based
products and technical and research and development services,
with customers in 80 countries engaged in the manufacture of
steel, automotive products and electronics. The company
manufactures graphite electrodes, products essential to the
production of electric arc furnace steel. The company also
manufactures thermal management, fuel cell and other specialty
graphite and carbon products for, and provide services to, the
electronics, power generation, solar, oil and gas,
transportation, petrochemical and other metals markets. The
company operates 11 manufacturing facilities strategically
located on four continents.
As of Feb. 28, 2008, the company has a subsidiary in
Switzerland, GrafTech Switzerland S.A. GrafTech Switzerland has
subsidiaries located in other parts of Europe as well as Mexico
and Brazil in Latin America.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 4, 2008, Standard & Poor's Ratings Services said that its
ratings and outlook on GrafTech International Ltd. (BB-
/Positive/--) would not be affected by the company's statement
that it has acquired a 19% minority interest in Seadrift Coke
L.P. from Falcon Mezzanine Partners L.P.
SALTON INC: Proposed United Pet Deal Cues S&P to Put 'B+' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Service assigned its 'B+' corporate
credit rating to Mirmar, Florida-based small appliance
manufacturer Salton Inc. This rating incorporates Salton's
proposed acquisition of the United Pet Group, the global pet
business of Spectrum Brands Inc. (CCC+/Watch Pos/--), along with
UPG's subsidiary Applica Pet Products LLC, which will become
wholly owned by Salton. Pro forma for the transaction, S&P
estimate total debt at Salton to be about US$573 million. The
outlook on Salton is stable.
Applica Pet has a 'B+' corporate credit rating with a stable
outlook. It also has a 'BB' senior secured bank loan rating
with a '1' recovery rating, indicating the expectation for very
high (90%-100%) recovery of principal in the event of a payment
default. Applica Pet will become wholly owned by Salton after
the acquisition of Spectrum. Salton will operate and manage the
pet business as a separate business unit.
"The Salton rating incorporates the Applica Pet and UPG
businesses and debt associated with the planned transaction,"
said Standard & Poor's credit analyst Susan H. Ding. "Should
this transaction not close, we would either reassess or withdraw
the ratings on Salton."
Headquartered in Lake Forest, Illinois, Salton Inc. (NYSE:SFP)
-- http://www.saltoninc.com/-- designs, markets and distributes
branded, high-quality small appliances, home decor and personal
care products. Its product mix includes a range of small
kitchen and home appliances, electronics for the home, time
products, lighting products, picture frames and personal care
and wellness products. The company has manufacturing facility
in Mexico.
UNITED RENTALS: Waives Tender Offer Terms on Share Price Mov't
--------------------------------------------------------------
United Rentals, Inc. will waive the condition to its previously
announced "modified Dutch auction" tender offer that the market
price of shares of the company's common stock does not decrease
at any point by more than 10% from the close of trading on
June 16, 2008. This condition was recently triggered as a result
of the company's shares trading below US$19.82.
The company commenced its tender offer, in which the company is
offering to purchase up to 27,160,000 shares of its common stock
at a price not less than US$22.00 nor greater than US$25.00 per
share, on June 17, 2008. In connection with the waiver, the
company has not revised the US$22.00 to US$25.00 tender offer
price range.
The tender offer is scheduled to expire at 5:00 p.m., Eastern
Time, on July 16, 2008, unless extended by the company. Tenders
of shares must be made on or prior to the expiration of the
tender offer and may be withdrawn at any time on or prior to the
expiration of the tender offer, in each case in accordance with
the procedures described in the tender offer materials. The
tender offer is subject to a number of terms and conditions, but
is not conditioned on receipt of financing or any minimum number
of shares being tendered.
The waiver of the stock price movement condition is not a waiver
of any other condition or a waiver with respect to any other
facts or circumstances. The tender offer remains subject to the
satisfaction of the other conditions set forth in the tender
offer materials, as well as the company's right to amend the
terms of the tender offer in the manner and upon the terms set
forth in the tender offer materials.
Neither United Rentals nor its board of directors, nor any
dealer manager or information agent in connection with the
proposed tender offer, is making any recommendation to
shareholders as to whether to tender or refrain from tendering
shares in the proposed tender offer. Shareholders must decide
how many shares they will tender, if any, and the price within
the stated range at which they will offer their shares for
purchase by the company. The company's executive officers and
directors have advised the company that they do not intend to
participate in the tender offer.
About United Rentals
Headquartered in Greenwich, Connecticut, United Rentals Inc.
(NYSE: URI) -- http://www.unitedrentals.com/ -- is an equipment
rental company with an integrated network of over 690 rental
locations in 48 states, 10 Canadian provinces and Mexico. The
company's approximately 10,900 employees serve construction and
industrial customers, utilities, municipalities, homeowners and
others. The company offers for rent over 20,000 classes of
rental equipment with a total original cost of US$4.2 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 17, 2008, Fitch Ratings has affirmed the long-term issuer
default rating for United Rentals (North America) Inc. at 'BB-'
and downgraded parent company, United Rentals Inc. IDR to 'B+'
from 'BB-'. Approximately US$2.6 billion in debt was affected
by this rating action. The rating action follows the company's
statement that it had repurchased all of its preferred stock for
US$679 million and intends to repurchase 27.16 million shares of
common stock.
X-RITE INC: Extends Maturity of Promissory Note to July 30
----------------------------------------------------------
X-Rite Incorporated disclosed an amendment to its Promissory
Note secured by a mortgage on the same facility, extending the
maturity to July 30, 2008. The Promissory Note has an
outstanding balance due of US$8.7 million.
The company has also reached an agreement for the sale of its
former headquarters and manufacturing facility located in
Grandville, Michigan for US$10 million.
The terms of the sale of the property are subject to certain
conditions including a 60-day due diligence period. The sale is
scheduled to close in 91 days. The buyer has the ability to
extend the close under certain terms set forth in the sale
agreement.
"We are pleased that we have reached an agreement to sell the
former headquarters," David A. Rawden, interim chief financial
officer of X-Rite," stated. "We have worked hard to find the
right buyer in this transaction and feel that this is another
positive step as we continue to improve the company's financial
health."
"We are also happy to report that we have agreed on an extension
of the Promissory Note as we continue to make progress in our
refinancing efforts," Mr. Rawden continued.
About X-Rite Incorporated
Based in Grand Rapids, Michigan, X-Rite Incorporated (Nasdaq:
XRIT) -- http://www.xrite.com/-- is a provider of color-
measurement solutions, offering hardware, software, color
standards and services for the verification and communication of
color data. The company serves a range of industries, including
imaging and media, industrial color and appearance, retail color
matching, and medical. X-Rite serves customers in more than 100
countries from its offices in Europe, Asia and the Americas.
The X-Rite Latin America sales team provides assistance to
customers in Mexico, Central and South America, and the
Caribbean. X-Rite's sales team works together with highly
qualified local vendors and distributors to ensure the best
possible personalized customer assistance, offering a wide and
unparalleled array of products, support and repair services.
* * *
The TCR reported on June 13, 2008, that Standard & Poor's
Ratings Services lowered its corporate credit rating on X-Rite
Inc. to 'CCC+' from 'B+'. Ratings remain on CreditWatch, where
they were placed on April 3, 2008, after the company's statement
that it was not in compliance with certain covenants in its
secured credit facilities. The CreditWatch implications have
been revised to developing from negative, which means that the
ratings could be raised, lowered, or affirmed following the
completion of its review.
At the same time, S&P lowered the ratings on the company's
first- and second-lien term loans. The first-lien term loan
rating was lowered to 'B-' from 'BB-', and the second-lien term
loan rating was lowered to 'CCC' from 'B'. The recovery ratings
for the term loans remain unchanged.
As reported in the Troubled Company Reporter-Latin America on
May 14, 2008, Moody's Investors Service lowered X-Rite Inc.'s
corporate family rating to Caa1 from B2. Moody's also lowered
the rating on the company's first lien senior secured credit
facilities to B3 from B1 and the rating on the second lien term
loan to Caa3 from Caa1. All ratings remain under review for
possible downgrade. As part of this action, Moody's also
affirmed the company's SGL-4 speculative grade liquidity rating.
====================
P U E R T O R I C O
====================
NUTRITIONAL SOURCING: Exclusive Plan Filing Deferred
----------------------------------------------------
The Hon. Peter J. Walsh of the United States Bankruptcy Court
for the District of Delaware conditionally extended the
exclusive period within which Nutritional Sourcing Corporation
and its debtor-affiliates may:
a) file a Chapter 11 plan until July 21, 2008, and
b) solicit acceptances of that plan until Oct. 1, 2008.
The exclusive periods, Judge Walsh explained, is extended
provided that:
i) the Debtors will not file any Chapter 11 plan
of liquidation, which is unacceptable to the Official
Committee of Unsecured Creditors before July 18, 2008,
and
ii) the Committee will not plea to modify the Debtors'
exclusive right to file a plan before July 18, 2008.
As reported in the Troubled Company Reporter on June 23, 2008,
the Debtors asked the Court to extend the exclusive period to
file a Chapter 11 plan until Aug. 15, 2008, and solicit
acceptances of that plan until Dec. 6, 2008. The requested
extension is expected to allow, among other things, the
completion of the sale of the Debtors' remaining assets, their
Blockbuster Inc. franchise and attendant real property leases.
Judge Walsh will continue hearing the Debtors' request on
July 18, 2008, at 2:00 p.m.
The Debtors' exclusive period to file a Chapter 11 plan will
expire on July 7, 2008, Monday.
About Nutritional Sourcing
Based in Pompano, Florida, Nutritional Sourcing Corp., fdba
Pueblo Xtra International, Inc. -- http://www.puebloxtra.com/--
owns and operates supermarkets and video rental shops in Puerto
Rico and the U.S. Virgin Islands. The company and two
affiliates, Pueblo International, L.L.C., and F.L.B.N., L.L.C.,
filed for chapter 11 protection on Aug. 3, 2007 (Bankr. D. Del.
Case Nos. 07-11038 through 07-11040). Kay Scholer LLC
represents the Debtors in their restructuring efforts. Pepper
Hamilton LLP serves as their Delaware counsel. The U.S. Trustee
for Region 3 appointed eight creditors to serve on an Official
Committee of Unsecured Creditors. Skadden, Arps, Slate, Meagher
& Flom LLP represent the Official Committee of Unsecured
Creditors. The company has disclosed US$130.8 million in assets
and debt totaling US$266.5 million with the Court.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Decreases Oil Exports to United States
--------------------------------------------------------------
Petroleos de Venezuela S.A. has lessened its oil exports to the
United States, the Associated Press reports.
U.S.' oil imports from Venezuela declined to an average of
1.13 million barrels of crude and petroleum products per day in
the first four months of this year, from 1.28 million barrels a
day in the same period in 2007, the AP relates, citing the U.S.
Energy Information Administration.
According to the AP, energy analysts said Petroleos de Venezuela
wants to cut its reliance on the U.S. Venezuelan President Hugo
Chavez has accused the U.S. of planning to invade Venezuela and
is threatening to suspend exports to the country. Petroleos de
Venezuela is now increasing oil shipments to China. According
to the analysts, Petroleos de Venezuela is seeking new markets
in China and India.
The AP adds that another reason for the decline in Venezuela's
oil shipment to the U.S. may be the stagnation of Petroleos de
Venezuela's oil production. The company claims it produces an
average of 3.2 million barrels of oil per day, but the
International Energy Administration says that the oil firm's
output declined to about 2.4 million barrels a day in the first
four months of the year, compared to the same period last year.
Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.
Also in March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.
On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.
PETROLEOS DE VENEZUELA: Workers Launch Strike Against Firm
----------------------------------------------------------
Grant Smith at Bloomberg News reports that 4,000 Petroleos de
Venezuela S.A. employees have launched demonstrations against
the company.
According to Bloomberg, the strike may restrict supply from
Venezuela. Labor leaders claimed that the protest shut down
four pumping and upgrading projects nationalized in 2007.
Bloomberg notes that Petroleos de Venezuela denied the labor
leaders' claims, assuring that operations in the Orinoco Belt
were normal.
Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.
Also in March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.
On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.
PETROLEOS DE VENEZUELA: Will Appoint New Production Chief
---------------------------------------------------------
Petroleos de Venezuela S.A. will appoint Eulogio Del Pino as its
new exploration and production chief, replacing Luis Vierma,
Bloomberg News reports, citing sources familiar with the
situation.
According to Bloomberg, analysts see Mr. Vierma's departure as a
decision made by President Chavez because Petroleos de Venezuela
is failing to meet production targets -- the company delayed and
reduced its output goal in June 2008. El Nacional relates that
Venezuelan Energy and Oil Minister Rafael Ramirez said on
June 20 that Petroleos de Venezuela decreased its production
target to 4.8 million barrels a day by 2013, from 5.8 million
barrels a day by 2012.
Bloomberg quoted Eurasia Group analyst Patrick Esteruelas,
"Chavez isn't particularly happy with the way PDVSA [Petroleos
de Venezuela] has been run and the energy sector's very poor
performance, particularly after the central bank released a
report showing the oil sector contracting for three years
running."
According to Petroleos de Venezuela, Mr. Del Pino is a
geophysical engineer with a master's degree in oil exploration
from Stanford University in California. Bloomberg relates that
Mr. Del Pino is president of Corp. Venezolana del Petroleo, a
unit of Petroleos de Venezuela that takes part in joint ventures
with private firms and with other nations. He is in charge of
talks with Exxon Mobil Corp. and ConocoPhillips over payments
for government takeovers of their assets in Venezuela.
Bloomberg relates that the sources said Venezuelan President
Hugo Chavez was supposed to announce the changes in his weekly
television address June 29, but that speech was canceled.
An official in Petroleos de Venezuela's communication office has
denied the planned change, Bloomberg adds.
Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.
Also in March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.
On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.
* VENEZUELA: Recent Finance Ministry Mandate Get Banks Worried
--------------------------------------------------------------
Regulatory measures recently mandated by Venezuela's Finance
Ministry may put several banks in trouble, Benedict Mander
writes for the Financial Times.
To stop currency speculation, the country's Finance Minister,
has ordered banks to reduce the amount of public funds held in
the form of foreign debt bought up by the government -- known as
"structured notes."
Specifically, the Finance Ministry, on May 19 2008, required
commercial and universal banks to discontinue the negotiation of
local currency securities issued by foreign intermediaries
(banks, brokerage house, and any financial or non financial
institution), including structured notes issued in local
currency backed by assets denominated in foreign currency, Fitch
Ratings relates. The mandate further required all local
financial intermediaries to unwind their current holdings of
those securities in no more than 90 days since the release of
the mandate, to end on Aug. 19, 2008.
The forced sale of the structured notes are leaving banks
worried, Cesar Aristimuno, a local analyst, told the Financial
Times. Because of the appreciation of the Bolivar, Venezuela's
currency, some of those financial instruments' value could now
just be worth half of the amount paid for them.
"There are four or five banks which I am certain will not last
for another year," FT quotes Mr. Aristimuno as saying.
An adviser to former finance minister, Rafael Isea, asserted
that the government has no intention of damaging any banks, "it
just wants to straighten things out," the rating agency notes.
Fitch is presently conducting a review process of the possible
financial impact of those regulations. "It is currently
difficult to define the final effect of this measure on the
system and on individual banks," Fitch states. "Lack of clarity
in the definition of potentially affected securities, as well as
limits on transparency of reported financial statements, make
accurate analysis difficult." But the rating agency admits that
the market risks inherent in a forced sale could result in
potentially significant losses for large holders of such
securities.
* Large Companies With Insolvent Balance Sheet
----------------------------------------------
Total
Shareholders Total
Equity Assets
Company Ticker (US$MM) (US$MM)
------- ------ ------------ -------
Arthur Lange ARLA3 (24.32) 34.09
Kuala ARTE3 (33.57) 11.86
Bombril BOBR3 (480.75) 423.86
Caf Brasilia CAFE3 (949.47) 40.58
Chiarelli SA CCHI3 (73.37) 44.84
Ceper-Inv CEP (7.77) 120.08
Ceper-B CEP/B (7.77) 120.08
Telefonica Hldg CITI (1,481.31) 307.89
Telefonica Hldg CITI5 (1,481.31) 307.89
SOC Comercial PL COME (751.50) 450.17
Marambaia CTPC3 (1.38) 79.73
DTCOM-DIR To Co DTCY3 (13.89) 13.03
Aco Altona ESTR (41.68) 144.91
Estrela SA ESTR3 (68.40) 112.36
Bombril Holding FPXE3 (1,064.31) 41.97
Fabrica Renaux FTRX3 (40.90) 127.74
Cimob Partic SA GAFP3 (56.35) 92.77
Gazola GAZ03 (43.13) 22.28
Haga HAGA3 (116.89) 20.31
Hercules HETA3 (245.33) 45.85
Doc Imbituba IMB13 (21.11) 215.55
IMPSAT Fiber Networks IMPTQ (17.17) 535.01
Minupar MNPR3 (27.58) 158.43
Wetzel SA MWET3 (15.02) 137.09
Nova America SA NOVA3 (300.97) 41.80
Paranapamema SA PMAM3 (105.13) 3,724.69
Paranapamema-PRF PMAM4 (105.13) 3,724.69
Recrusul RCSL3 (67.90) 27.89
Telebras-CM RCPT RCTB30 (171.66) 230.92
Rimet REEM3 (219.34) 93.47
Schlosser SCL03 (84.39) 44.57
Tecel S Jose SJ0S3 (26.86) 80.42
Sansuy SNSY3 (63.13) 235.18
Teka TEKA3 (347.07) 538.30
Telebras SA TELB3 (171.66) 230.92
Telebras-CM RCPT TELE31 (171.66) 230.92
Telebras SA TLBRON (171.66) 230.92
TECTOY TOYB3 (1.43) 39.50
TEC TOY SA-PREF TOYB5 (1.43) 39.50
TEC TOY SA-PF B TOYB6 (1.43) 39.50
TECTOY SA TOYBON (1.43) 39.50
Texteis Renaux TXRX3 (118.94) 84.92
Varig SA VAGV3 (8,194.58) 2,169.10
FER C Atlant VSPT3 (123.44) 2,012.29
Wiest WISA3 (140.97) 71.37
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.
Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Tara Eliza E. Tecarro, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *