/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/080731.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 Thursday, July 31, 2008, Vol. 9, No. 151 Headlines A R G E N T I N A BUNGE: Moody's Shifts Ba1 Pref. Stock Rating Outlook to Stable B E R M U D A AUGMENTATION INVESTMENTS: 1st Contributories Meeting on Aug. 14 CENTRAL EUROPEAN: Net Income Increases to US$67.6MM in 2nd Qtr. COM TEL: Sets First Contributories Meeting for Aug. 14 CONVERGENCE CAPITAL: First Contributories Meeting Is on Aug. 14 CONVERGENCE CAPITAL LTD: 1st Contributories Meeting on Aug. 14 FIRST NATIONAL: To Hold First Contributories Meeting on Aug. 14 FOSTER WHEELER: Global Power Unit Bags Contract From Sweden Firm GAMMA CAPITAL: Will Hold First Contributories Meeting on Aug. 14 IPOC INTERNATIONAL: First Contributories Meeting Set for Aug. 14 IPOC INT'L GROWTH: First Contributories Meeting Is on Aug. 14 SECURITY CAPITAL: S&P Retains WatchNeg Despite Capital Injection TELCO OVERSEAS: Sets First Contributories Meeting for Aug. 14 B R A Z I L BANCO DO BRASIL: May Advance Importers US$400MM Through CAF BANCO NACIONAL: Audit Finds No Irregularities in Two Financings DELTA AIR: Launches Atlanta-Sao Paulo Flights Starting Dec. 20 ENERGIAS DO BRASIL: EBITDA Grows 3.8% to BRL323.4MM in 2nd Qtr. HERBALIFE LTD: Names Marcelo Zalcberg as Brazil Country Director C A Y M A N I S L A N D S BOMBAY COMPANY: Court to Decide on Plan Confirmation on Aug. 20 DURANT CDO: Proofs of Claim Filing Deadline Is Aug. 2 FRESH DEL MONTE: Earns US$41.9 Million in Quarter Ended June 27 NORTH AMERICAN CARRIERS: Deadline for Claims Filing Is Aug. 2 NORTH AMERICAN CARRIERS II: Claims Filing Deadline Is Aug. 2 PARMALAT SPA: Citigroup Trial to Proceed to Jury Verdict STONEHEATH RE: A.M Best Puts bb+ Rating Under Negative Review C H I L E ALCATEL-LUCENT: Bags Gtd Contract to Deploy Network in Chile ALCATEL-LUCENT SA: CEO & Chairman to Quit from Posts C O L O M B I A BANCOLOMBIA: Appoints Juan Salazar As Audit Committee Member D O M I N I C A N R E P U B L I C BANCREDITO: Unit Sells Property to Internal Taxes for DOP45MM TRICOM SA: Court Adjourns Aug. 6 Plan Status Conference Hearing TRICOM SA: Court Allows Use of Credit Suisse' Collateral E C U A D O R PETROECUADOR: To Hold 70% Stake in Joint Venture with Venezuela G U A T E M A L A BRITISH AIRWAYS: In Talks with Iberia SA over Possible Merger CLAIRE STORES: Moody's Junks Probability of Default Rating H A I T I TRILOGY INT'L: S&P Affirms B- Long-Term Corporate Credit Rating J A M A I C A OLINT CORP: Members File Lawsuits Against David Smith SUGAR COMPANY: Workers to Get Redundancy Packages on Divestment M E X I C O ALLIS-CHALMERS: Moody's Assigns B2 Rating to Proposed Notes ALLIS-CHALMER: S&P Rates Proposed US$350MM Sr. Unsec. Notes 'B+' BHM TECHNOLOGIES: Eclipse Wants to Lift Stay to Recover Tooling BLUE WATER: Mulls Closure After US$39MM Sale Fell Through CLEAR CHANNEL: Fitch Cuts Issuer Default Rating to B from BB- EMPRESAS ICA: Earns MXN93 Million in 2008 Second Quarter HERCULES OFFSHORE: Books US$20 Million Net Income in 2nd Quarter METROFINANCIERA: Collateral Slide Cues Fitch to Cut Ratings * TULTITLAN: Moody's Assigns Ba3 Rating for MXN164 Million Loan P E R U GRAN TIERRA: To Consolidate Business With Solana Resources Ltd. P U E R T O R I C O CARRIBBEAN RESTAURANTS: Moody's Cuts Corp. Family Rating to Caa1 MMM HOLDINGS: Moody's Upgrades Senior Debt Rating to B3 R&G FINANCIAL: Final Hearing For Proposed Settlement Is Sept. 16 TRADEWINDS AIRLINES: Files for Bankruptcy in Florida TRADEWINDS AIRLINES: Voluntary Chapter 11 Case Summary V E N E Z U E L A PETROLEOS DE VENEZUELA: Delays Project With Enarsa * PricewaterhouseCoopers Eyes Hard Times for Bermudan Insurers * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= BUNGE: Moody's Shifts Ba1 Pref. Stock Rating Outlook to Stable -------------------------------------------------------------- Moody's Investors Service changed the outlook for Bunge Ltd.'s long-term debt to stable from negative, including the guaranteed debt of subsidiaries rated Baa2; and the preferred stock of Bunge Ltd., rated Ba1. The rating outlook for the senior long- term debt of Corn Products International, Inc., rated Baa2, also was changed to stable from negative. The stabilized rating outlook is in response to Bunge's improving earnings and cash flow profile, the expected operating and financial benefits from its pending acquisition of Corn Products, and an adequate approach to liquidity management, despite a significant increase in debt levels associated with rising working capital requirements. Bunge's earnings and cash flows, as well as fixed charge coverage measures, have reached record levels over the past year, driven primarily by improved agribusiness and fertilizer results. In the first half of 2008, earnings and cash flow before changes in working capital benefited from stronger margins in agribusiness and improved fertilizer profitability stemming from record high commodity prices for soybeans and corn, which have doubled in the past year; an 8% increase (last twelve months) in overall commodity volumes, led by agribusiness and food products; and a rebound in the Brazilian farm economy and strong demand for fertilizer. Crush margins in oilseed processing have risen, and price increases have been sustained in Bunge's wheat milling and edible oils operations, which should help offset higher input costs. In addition, the pending acquisition of Corn Products will be favorable to Bunge's operational and financial position, adding a strong presence in the corn value chain, broader geographic and product line diversification, and more than US$4 billion of equity to the combined balance sheet based on the equity financing. Going into the second half of 2008, a strong performance can be expected for Bunge, although soybean and corn prices have recently declined modestly, which could adversely affect fertilizer operations. However, working capital carrying costs, rising energy costs, and a potential slow down in demand by agribusiness customers in response to rising prices could have a negative impact on results. Despite the benefit of stronger earnings and cash flow coverages, Bunge's merchandising and processing operations are highly working capital intensive, particularly in rising price markets, requiring financing for inventories and collateral posting to meet margin calls on its futures hedging activities. As a result, the company's cash flow from operations after working capital changes has been consistently negative. Total debt has increased significantly, rising more than US$2 billion since the end of 2006. As such, working capital management will continue to be a challenge for Bunge. At the same time, Bunge's readily marketable inventories (RMI) have increased in value, and the company's core debt has remained fairly steady, excluding working capital-related borrowings. Moody's analysis recognizes that RMIs provide liquidity support and that higher working capital needs will reverse and should self-liquidate in the event of a decline in commodity prices and reduced merchandising opportunities, as has happened in the past. From a leverage perspective, RMIs can also be viewed a providing some partial offset to rising debt levels and financial leverage. Moody's will continue to analyze Bunge's financial leverage both before and after an adjustment for RMIs, the latter at an ongoing level of 50% of its total disclosed RMIs. A haircut to total disclosed RMIs as a debt offset is appropriate, given the volatility of commodity prices and cash flows, the need for inventories in Bunge's core oilseed processing operations, changing working capital needs, and uncertainty over the timing and realized values in orderly liquidation scenarios. In light of market volatility and high working capital demands, backup liquidity will remain a key element of Bunge's investment grade profile. Moody's believes that Bunge manages its liquidity adequately, primarily via a group of committed bank credit facilities sized to meet margin calls and other large stress liquidity events, even as it benefits from the asset support provided by its RMIs. However, these facilities have conditionality features that could affect access to liquidity in adverse situations. In addition, changing market and working capital demands, particularly when commodity prices rise, could challenge the company's ability to access new funding sources and expand its merchandising and processing franchises. Bunge will have to stay out in front of these rising requirements. To date, the company has continued to successfully access new liquidity, including US$950 million in new three-year financings during the first quarter of 2008. In that regard, continued discipline in managing the level of its merchandising activities and access to alternative liquidity, as well as adverse liquidity events, could all be drivers in future outlook or rating changes for Bunge. About Bunge Limited Headquartered in White Plains, New York, Bunge Ltd. (NYSE: BG) is a global agribusiness company which supplies fertilizer to farmers, originates, transports and processes oilseeds, grains and other agricultural commodities worldwide, produces food products for commercial customers and consumers, and supplies raw materials and services to the biofuels industry in South America and Asia. The company has operations in Brazil, Peru and Argentina. ============= B E R M U D A ============= AUGMENTATION INVESTMENTS: 1st Contributories Meeting on Aug. 14 --------------------------------------------------------------- The first meeting of contributories of Augmentation Investments Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. CENTRAL EUROPEAN: Net Income Increases to US$67.6MM in 2nd Qtr. --------------------------------------------------------------- Central European Media Enterprises Ltd. has reported its financial results for the three months and six months ended June 30, 2008. Net revenues for the second quarter of 2008 increased 41% to US$305.4 million, compared to the second quarter of 2007. Operating income for the quarter increased US$31.4 million to US$98 million. Net income increased US$33 million to US$67.6 million, and fully diluted earnings per share increased by US$0.75 to US$1.58. Segment EBITDA for the second quarter increased 53% to US$133.1 million, compared to the second quarter of 2007. Net revenues for the six months ended June 30, 2008, increased 45% to US$528.9 million, compared to the first half of 2007. Operating income for the first half increased US$62.8 million to US$142.7 million. Net income increased US$48.2 million to US$82.5 million, and fully diluted earnings per share increased US$1.10 to US$1.93. Segment EBITDA for the six months ended June 30, 2008, increased 64% to US$207.8 million, compared to the first half of 2007. Central European's Chief Executive Officer, Michael Garin commented, “The outstanding second quarter performance demonstrates both the strength of our networks and the continuing growth of the advertising markets across all of our markets. Our second quarter 44% Segment EBITDA margin driven by Czech and Romanian results is ahead of even our own expectations. We are delighted to report the first quarter of positive EBITDA in Croatia. Our Croatian success gives us confidence that we will achieve a similar leadership in Bulgaria in the next few years.” Chief Operating Officer, Adrian Sarbu added, “We are extremely pleased to have completed the buyout of the 30% minority interest in Studio 1+1. We intend to be the leading broadcaster in Ukraine with our operations generating US$500 million of revenue and US$200 million of Segment EBITDA in 2012.” Consolidated Results for the Three Months Ended June 30, 2008 Consolidated Net Revenues for the three months ended June 30, 2008 increased by 41% to US$305.4 million from US$216.3 million for the three months ended June 30, 2007. Operating income for the quarter was US$98 million compared with US$66.6 million for the three months ended June 30, 2007. Net income for the quarter was US$67.6 million compared to US$34.6 million for the three months ended June 30, 2007. Fully diluted earnings per share for the three months ended June 30, 2008 was US$1.58, increasing US$0.75 compared to the three months ended June 30, 2007. Consolidated Results for the Six Months Ended June 30, 2008 Consolidated Net Revenues for the six months ended June 30, 2008, increased by 45% to US$528.9 million from US$364.2 million for the six months ended June 30, 2007. Operating income for the period was US$142.7 million compared with US$79.9 million for the six months ended June 30, 2007. Net income for the six months ended June 30, 2008, was US$82.5 million compared to US$34.3 million for the six months ended June 30, 2007. Fully diluted earnings per share for the six months ended June 30, 2008, was US$1.93, increasing US$1.10 compared to the six months ended June 30, 2007. Segment Results for the Three Months Ended June 30, 2008 For the three months ended June 30, 2008, Total Segment Net Revenues increased 41% to US$305.4 million from US$216.3 million for the three months ended June 30, 2007. Total Segment EBITDA for the three months ended June 30, 2008, increased 53% to US$133.1 million from US$86.9 million for the three months ended June 30, 2007. Segment EBITDA margin for the three months ended June 30, 2008, was 44% compared to 40% reported in the three months ended June 30, 2007. Segment Results for the Six Months Ended June 30, 2008 For the six months ended June 30, 2008, Total Segment Net Revenues increased 45% to US$528.9 million from US$364.2 million for the six months ended June 30, 2007. Total Segment EBITDA for the six months ended June 30, 2008, increased 64% to US$207.8 million from US$127 million for the six months ended June 30, 2007. Segment EBITDA margin for the six months ended June 30, 2008 was 39% compared to 35% in the six months ended June 30, 2007. About Central European Based in Bermuda, Central European Media Enterprises Ltd., is a TV broadcasting company with leading networks in six Central and Eastern European countries. Launched in 1994, the company and its partners now operate 16 channels in six countries, including TV Nova, Nova Cinema and Galaxie Sport in the Czech Republic; PRO TV, PRO Cinema, Pro International, Sport.ro, MTV and Acasa in Romania; Nova TV in Croatia, TV Markiza in the Slovak Republic; POP TV and Kanal A in Slovenia; and Studio 1+1, Kino and Citi in Ukraine. For the year ended Dec. 31, 2007, the company generated segment revenues of US$840 million and segment EBITDA of US$320 million. Central European Media is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol “CETV”. * * * As reported in the Troubled Company Reporter-Latin America on April 25, 2008, Standard & Poor's Ratings Services assigned its 'BB' debt rating to the 475 million senior secured convertible notes due 2013 issued by Bermuda-based emerging markets TV broadcaster, Central European Media Enterprises Ltd. in March 2008. The long-termcorporate credit rating was affirmed at 'BB'. S&P's outlook is stable. At the same time, S&P raised the debt rating on both Central European Media's EUR245 million and EUR150 million floating-rate notes due, respectively, in 2012 and 2014 to 'BB' from the previous 'BB-'. COM TEL: Sets First Contributories Meeting for Aug. 14 ------------------------------------------------------ The first meeting of contributories of Com Tel Eastern Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. CONVERGENCE CAPITAL: First Contributories Meeting Is on Aug. 14 --------------------------------------------------------------- The first meeting of contributories of Convergence Capital Management Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. CONVERGENCE CAPITAL LTD: 1st Contributories Meeting on Aug. 14 -------------------------------------------------------------- The first meeting of contributories of Convergence Capital Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. FIRST NATIONAL: To Hold First Contributories Meeting on Aug. 14 --------------------------------------------------------------- The first meeting of contributories of First National Telecommunications Fund Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. FOSTER WHEELER: Global Power Unit Bags Contract From Sweden Firm ---------------------------------------------------------------- Foster Wheeler Ltd. disclosed that a subsidiary of its Global Power Group has been awarded a contract by E.ON Varme Sverige AB, Sweden, for a waste-fuel-fired circulating fluidized-bed (CFB) boiler island to be located at the combined heat and power (CHP) plant in Norrkoping, Sweden. This waste-to-energy plant using Foster Wheeler's CFB technology will divert waste headed for landfills and convert it into valuable steam and electricity. Foster Wheeler CFBs have inherently low levels of SO(X) and NO(X) emissions, which makes them ideally suited for clients who are seeking an environmentally friendly, economical and highly efficient use of municipal waste compared with traditional incineration or older burn technologies. Foster Wheeler has received a full notice to proceed on this contract. The terms of the award were not disclosed, and the contract will be included in the company's bookings for the third quarter of 2008. Foster Wheeler will supply the 84 thermal megawatt CFB boiler and auxiliary equipment and will carry out the erection and commissioning of the boiler island. The boiler will be designed to burn Refuse Derived Fuel (RDF) composed of sorted household and industrial wastes. The power plant will produce electricity for the local grid and will also provide heat and process steam to an adjacent industrial plant. Initial operation of the new boiler is scheduled for the fall of 2010. “With more than 300 installations worldwide, Foster Wheeler's CFB technology is an excellent choice for clients and their customers who are thinking progressively about power generation,” said Tomas Harju-Jeanty, chief executive officer, Foster Wheeler Energia Oy. “Whether it's through the use of carbon-neutral fuels or the conversion of municipal waste into energy - or the use of any one of a host of other feedstocks -- the CFB offers perhaps the broadest range of fuel flexibility on the market today.” “This is the start of E.ON Sverige's EUR1.0 billion investment plan in CHP (Combined Heat and Power),” said Karin Jarl-Mansson, chief executive officer of E.ON Varme Sweden AB. “District heating is an important cornerstone in the production of more efficient energy and the reduction of environmental effects.” E.ON is one of the world's largest investor-owned energy services providers. With annual sales of just under EUR69 billion and close to 88,000 employees, it is focused on its core power and gas business and its target markets: central Europe, the United Kingdom, northern Europe, Russia and Midwestern United States. About Foster Wheeler Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter-Latin America on April 28, 2008, Moody's Investors Service upgraded Foster Wheeler LLC's corporate family rating to Ba2 from Ba3, and raised its probability of default Rating to Ba2 from Ba3. The outlook continues to be positive. As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. GAMMA CAPITAL: Will Hold First Contributories Meeting on Aug. 14 ---------------------------------------------------------------- The first meeting of contributories of Gamma Capital Fund Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. IPOC INTERNATIONAL: First Contributories Meeting Set for Aug. 14 ---------------------------------------------------------------- The first meeting of contributories of IPOC Capital Partners Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. IPOC INT'L GROWTH: First Contributories Meeting Is on Aug. 14 ------------------------------------------------------------- The first meeting of contributories of IPOC International Growth Fund Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. SECURITY CAPITAL: S&P Retains WatchNeg Despite Capital Injection ---------------------------------------------------------------- Standard & Poor's Ratings Services said its 'BBB-' financial strength ratings on XL Capital Assurance Inc. and XL Financial Assurance Ltd. remain on CreditWatch with negative implications, following Security Capital Assurance Ltd.'s announcement on July 28, 2008, of a proposed US$1.8 billion capital injection and 8-million-share contribution by XL Capital Ltd. and the commutation of the credit default swaps totaling US$3.74 billion that were in dispute with Merrill Lynch & Co. Inc. As part of ongoing efforts to strengthen the financial condition of the companies, it was also announced that XL Capital Assurance's management will continue discussions with swap counterparties to commute, terminate, or restructure the remaining credit default swaps portfolio. “While these actions would help to stabilize the capital position of XLCA and XLFA, the ratings remain on CreditWatch because we believe there is execution risk in management's strategy, including possible regulatory intervention, and that business prospects for the companies remain challenging,” said S&P's credit analyst David Veno. The companies' franchise, in S&P's view, continues to be impaired due to their scaled-back underwriting activity, concerns that arose around Security Capital's ability to address its subsidiaries' capital needs, and questions relating potential credit default swaps losses. Should management prove unsuccessful in implementing a new business strategy and commuting its credit default swaps exposure, notwithstanding a strengthened financial position, S&P believes that XL Capital Assurance and XL Financial would effectively be in runoff, in which case the ratings could be further lowered. Ratings List: XL Capital Assurance Inc. XL Capital Assurance (U.K.) Ltd. XL Financial Assurance Ltd.: -- Issuer Credit Rating -- Local Currency BBB-/Watch Neg/-- -- Financial Strength Rating -- Local Currency BBB-/Watch Neg/-- -- Financial Enhancement Rating -- Local Currency BBB-/Watch Neg/-- Security Capital Assurance Ltd.: -- Long Term C/Watch Neg/-- Based in Hamilton, Bermuda, Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance-markets throughout the United States and internationally. For the three months ended March 31, 2008, Security Capital reported a net loss available to common shareholders of US$97 million. TELCO OVERSEAS: Sets First Contributories Meeting for Aug. 14 ------------------------------------------------------------- The first meeting of contributories of Telco Overseas Limited will be held at Four Seasons Hotel George V, 31 Avenue George V, 7500, 2008 at 11:00 a.m. on Aug. 14, 2008. The meeting will be held to: -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a permanent liquidator in place of the provisional liquidator; and -- determine whether or not an application is to be made to the Supreme Court of Bermuda to appoint a Committee of Inspection to act with the liquidator, and who are to be the members of the Committee if appointed. If a liquidator is not appointed by the Court, the official receiver will be the liquidator. The joint provisional liquidators must be informed of proxies to be used at the meeting not later than 5:00 p.m. on Aug. 13, 2008. The liquidators can be reached at: Marshall Diel & Myers Attn: Mark A.C. Diel Sofia House, 48 Church Street Hamilton HM 12, Bermuda for the attention of Mr. Mark Fax: (441) 292-6814 E-mail: ipoc@law.bm A summary of the relevant statement of affairs will be provided to each person appearing from the company's books or otherwise to be a contributory of the company. =========== B R A Z I L =========== BANCO DO BRASIL: May Advance Importers US$400MM Through CAF ----------------------------------------------------------- Banco do Brasil might lend a total of US$400 million to Brazilian importers in the next 12 months through its recently expanded credit line with the Andean Development Corporation (CAF), James Newman of Business News Americas reports, citing the federal bank's international director Sandro Kohler Marcondes. The report says CAF has added its revolving credit facility to US$200 million. In addition, it previously launched a US$30 million credit line to the bank to finance Brazilian importers. According to BNamericas, Mr. Kohler said the bank is expecting a disbursement between US$200 and US$400 million in the next 12 months, BNamericas relates. Because the loans come from a multilateral, they also offer tax advantages normal loans do not. Loan recipients in Brazil pay income tax on loans but not on those from multilaterals, Mr. Kohler added. The report relates that Mr. Kohler, when asked why the bank chose to work with CAF on this importer program, explained that the bank wanted to expand an existing program. About Banco do Brasil Banco do Brasil SA is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Feb. 29, 2008, Moody's Investors Rating Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. BANCO NACIONAL: Audit Finds No Irregularities in Two Financings --------------------------------------------------------------- Internal audit created to evaluate Banco Nacional de Desenvolvimento Economico e Social SA, a.k.a. BNDES, procedures in financing granting to the city of Praia Grande and to Lojas Marisa found no irregularity evidence in the process significant operations. Such operations followed all due procedure stages and were performed in compliance with BNDES standards. The time elapsed between the course of action before the Bank and its contracting was also compliant to ordinary procedures. Decision to perform audit was made due to Federal Police investigation, which pointed out evidence of BNDES abuse of funds by a criminal organization, in the scope of Operation Santa Tereza. The scrutiny comprised complete overhaul of all documents connected with the operations contracted with the funding grantees during the last five years. An assessment of the procedures carried out in the scope of BNDES system was also performed. It addressed all loan granting process steps and did not find any irregularity or breach of the Bank standards. The ordinary procedural course of a financing request in BNDES begins with the submission of Inquiry Letter (Previous Inquiry), which model is available on the Bank website. This mail is analyzed in the Departamento de Prioridades (Priorities Department, or DEPRI) of the Area de Planejamento (Planning Area) of BNDES (AP). DEPRI analyzes the project virtue and checks if it is compliant with the Bank operational policies. The Departamento de Risco (Risk Department — DERISC) of the Area de Credito (Loan Area — AC) concomitantly assesses the loan applicant's risk analysis. Both information is submitted to the approval of the Comite de Enquadramento de Credito (Loan Qualification Committee), consisted of all superintendents (BNDES staff employees). Upon approval of said Loan Qualification Committee, the project is reported to one of the Bank Operational Areas. There, a BNDES multidisciplinary team performs the thoroughly strict technical analysis, taking into account the applicant's collaterals, economical and financial feasibility, settlement capacity and idoneousness. BNDES has seven operational areas (foreign trade, industrial, basic inputs, infrastructure, stock market, indirect operation and social operational areas). The operation is submitted to the superintendent and Board of Directors approval, in associated decision, once the analysis report is concluded, what may take months due to the thorough character of the process. All BNDES projects, in each and every area or sector, are subject to the same procedures set forth above. Such process usually involves more than 30 employees and different associated bodies. The contracting is undertaken only after the operation is approved. Fundings are disbursed in installments, always pursuant to technical follow-up and observing the physical and financial project development. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. DELTA AIR: Launches Atlanta-Sao Paulo Flights Starting Dec. 20 -------------------------------------------------------------- Delta Air Lines has launched a new seasonal nonstop flight between Hartsfield-Jackson Atlanta International Airport and Sao Paulo's Guarulhos Airport in Brazil, starting Dec. 20, 2008. The new daytime frequency will operate three times weekly and will complement Delta's year-round, nightly nonstop service to Sao Paulo from Atlanta and New York-JFK. Delta's schedule between Atlanta and Sao Paulo from Dec. 20, 2008 until Feb. 15, 2009: Flight Departs Arrives Frequency ------ ------- ------- --------- DL 145 Atlanta at Sao Paulo at Wed/Sat/Sun 9:50 a.m. 10:35 p.m. DL 144 Sao Paulo at Atlanta at Mon/Thu/Sun 10:05 a.m. 5:05 p.m. “For more than 20 years, Delta has served the Brazilian market successfully, and we are excited to continue to grow our presence in this market,” said Delta vice president for Sales and Government Affairs Christophe Didier. “This daytime service offers customers another schedule option to and from Brazil.” Delta recently filed an application with the U.S. Department of Transportation requesting authority to use some of the new frequencies that became available to fly to Brazil after both countries reached a new agreement a few weeks ago. Delta continues to expand its international network, making Latin America and the Caribbean the two regions with the most growth for the airline for the rest of the year. As previously announced, Delta also will start new flights between New York- JFK and Buenos Aires, Argentina (Dec. 18); Atlanta and Tegucigalpa, Honduras (Dec. 18); New York-JFK and Bonaire (Dec. 20), and Atlanta and Santiago de los Caballeros, Dominican Republic (Dec. 20). Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia, and the United Kingdom. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. ENERGIAS DO BRASIL: EBITDA Grows 3.8% to BRL323.4MM in 2nd Qtr. --------------------------------------------------------------- Energias do Brasil has reported its results for the second quarter and the first six months of 2008. The information is presented on a consolidated basis in accordance with Brazilian Corporate Law and is based on reviewed financial information. The independent auditors did not review the operating information. Amounts are expressed in thousands of Reais, except where otherwise stated. -- Energy volumes sold by the generation business in second quarter 2008 amounted to 1,428 gigawatt-hours, or GWh, a 9% increase compared with second quarter 2007. -- Energy volumes distributed in second quarter 2008 totaled 6,444 GWh, 2.8% more than in second quarter 2007. -- Consolidated net operating revenue totaled BRL1,202.9 million in second quarter 2008, 3.9% more than second quarter 2007, mainly due to the growth in the volume of energy sold and higher average prices practiced by the generation business. -- Manageable expenditures, excluding depreciation and amortization, declined 15.9% compared with second quarter 2007, the main highlight here being the reduction in the Provisions and Others accounts. -- EBITDA for second quarter 2008 reached BRL323.4 million, a year over year increase of 3.8%. Worthy of mention is the growth of 19% in the generation segment's EBITDA, which reached BRL117.5 million. -- Capital expenditures amounted to BRL196.7 million, 54.1% up on the amount recorded for the same period last year due to the repowering of the Mascarenhas and Suica Hydro Power Plants as well as investments in the Santa Fe Small Hydroelectric Plant. -- An asset swap agreement between Energias do Brasil and Grupo Rede, which when concluded, will allow Energias do Brasil to control Investco (concessionaire of the Lajeado Hydro Power Plant) and Rede Lajeado, assuming the management control of Investco and consolidating 100 % of both assets. -- In June 2008, EDP Renovaveis Brasil was constituted and acquired 100% of the Central Nacional de Energia Eolica SA for BRL51.3 million. Central Nacional has two wind farms in operation in the state of Santa Catarina, with an installed capacity of 13.8 MW and a 70 MW expansion project The complete version of this earnings release is available on the company's site in the Investor Relations section at: http://www.energiasdobrasil.com.br Energias do Brasil S.A. is an integrated utility group controlled by Energias de Portugal, with activities in generation, distribution and commercialization of electricity. Its power distribution subsdiaries Bandeirante, Escelsa and Enersul represent altogether some 64% of consolidated total assets, while the power generation assets represent some 31%. * * * In May 2007, Moody's Investors Service placed a Ba2 long-term corporate family rating on Energias do Brasil. HERBALIFE LTD: Names Marcelo Zalcberg as Brazil Country Director ---------------------------------------------------------------- Herbalife Ltd. has appointed Marcelo Zalcberg as its vice president and country director for Brazil. He reports to Tom Harms, acting managing director of South America. In his new role, Mr. Zalcberg will be responsible for all marketing, sales and operations in Brazil. In the past three years, he has served as operations director for Herbalife Brazil and subsequently was promoted to senior director, sales. In that capacity, Mr. Zalcberg interacted with all areas of business within the company and above all, developed a very close and productive relationship with local Herbalife independent distributors. Mr. Zalcberg, a seasoned executive with over twenty years of experience has been successfully leading businesses in Brazil and abroad with companies such as Unibanco AIG Seguros, Unibanco, Banco Nacional, and Odebrecht. A native of Brazil, Mr. Zalcberg has an impressive academic background, which ranges from Fundacao Dom Cabral, The University College of London, where he obtained his master's degree in economics and management, Harvard Business School's Advanced Management Program, and the Universidade Federal do Rio de Janeiro. Mr. Zalcberg is replacing Eneida Bini, who after four years of successfully leading the company to record sales has opted to take a consulting role with Herbalife and will be relocating to Australia for personal reasons. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- is a global network marketing company that sells weight management, nutritional supplement, energy & fitness products and personal care products through a network of over 1.7 million independent distributors where the company currently sells the products through retail stores and an employed sales force. The company reports in the U.S., Canada, Jamaica, Mexico, Costa Rica, El Salvador, Panama, the Dominican Republic, Brazil, Europe, Africa, New Zealand, and Australia. Herbalife was founded in 1980 and is based in Grand Cayman, Cayman Islands. * * * In April 2007, Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P. The board indicated that although it views Whitney's bid as too low, it would consider an improved offer. ========================== C A Y M A N I S L A N D S ========================== BOMBAY COMPANY: Court to Decide on Plan Confirmation on Aug. 20 --------------------------------------------------------------- The Hon. D. Michael Lynn of the U.S. Bankruptcy Court for the Northern District of Texas set Aug. 20, 2008, at 1:30 p.m. Central Time, as the hearing date to consider confirmation of The Bombay Company Inc. and its debtor-affiliates' First Amended Consolidated Joint Plan of Reorganization. Judge Lynn already approved the Debtors' amended disclosure statement explaining an amended Chapter 11 plan of liquidation on July 2, 2008. As reported in the Troubled Company Reporter on July 9, 2008, Elaine D. Crowley, the appointed liquidation trustee, will issue a share of common stock for The Bombay Company Inc. and become the sole shareholder, officer and director of The Bombay Company Inc., replacing its existing shareholders and company officers. Pursuant to the Plan, all other shares of any class of stock of each of the Debtors will be canceled on the Plan's effective date. A liquidation trust will be created for the benefit of all creditors of the estates holding allowed claims. According to the Plan, the Debtors are expected to transfer any of their assets including (i) cash and accounts, (ii) litigation causes of action, (iii) ownership interest in Bombay Brands LLC, (iv) all other property interests, rights, claims, defenses and causes of action with respect to any and all non-debtor intercompany claims or the Debtors. The Court also fixed Aug. 11, 2008, at 4:00 p.m., as the deadline wherein other parties can submit to the Court their acceptance of the plan or objections to the plan confirmation. The objections must be filed with the Court and served on: Counsel for the Debtors Robert D. Albergotti, Esq. Haynes and Boone LLP 901 Main Street Suite 3100 Dallas, TX 75202 Counsel for the Official Committee of Unsecured Creditors Cathy Herschopf, Esq. Gregory G. Plotko, Esq. Cooley Godward Kronish LLP 1114 Avenue of the Americas New York, NY 10036-7798 Office of the U.S. Trustee Attn: George McElreath Erin Schmidt 1100 Commerce Street, Room 976 Dallas, TX 75242 For creditors, solicitation materials including a copy of the Debtors' disclosure statement, Plan, and a ballot form, are available by contacting the: Balloting Agent AlixPartners LLP Attn: John Franks 2100 McKinney Avenue Suite 800 Dallas, TX 75201 About Bombay Company Based in Fort Worth, Texas, The Bombay Company Inc., (OTC Bulletin Board: BBAO) -- http://www.bombaycompany.com/-- designs, sources and markets a unique line of home accessories, wall decor and furniture through 384 retail outlets and the Internet in the U.S. and internationally, including Cayman Islands. The company and five of its debtor-affiliates filed for Chapter 11 protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No. 07-44084). Robert D. Albergotti, Esq., John D. Penn, Esq., Ian T. Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone, LLP, represent the Debtors. The Bombay Furniture Company of Canada Inc. - La Compagnie de Mobilier Bombay Du Canada Inc. -- sought protection from its creditors from the Ontario Superior Court of Justice on Sept. 20, 2007. The U.S. Trustee for Region 6 appointed seven creditors to serve on an Official Committee of Unsecured Creditors. Attorneys at Cooley, Godward, Kronish LLP act as counsel to the Unsecured Creditors Committee. As of May 5, 2007, the Debtors listed total assets of US$239,400,000 and total debts of US$173,400,000. * * * The Debtors' consolidated monthly operating report for April 30, 2008, showed total assets of US$34,100,177 and total liabilities of US$31,780,942. DURANT CDO: Proofs of Claim Filing Deadline Is Aug. 2 ----------------------------------------------------- Durant CDO 2007-1 Ltd.'s creditors have until Aug. 2, 2008, to prove their claims to Walkers SPV Limited, 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. Durant's shareholder decided on July 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman Cayman Islands Contact for inquiries: Anthony Johnson Telephone: (345) 914-6314 FRESH DEL MONTE: Earns US$41.9 Million in Quarter Ended June 27 --------------------------------------------------------------- Fresh Del Monte Produce Inc. reported net income US$41.9 million on net revenues of US$972.2 million for the second quarter ended June 27, 2008, compared to net income of US$63.9 million on net revenues of US$924.2 million for the second quarter ended June 29, 2008. Fresh Del Monte's Chairman and Chief Executive Officer, Mohammad Abu-Ghazaleh said, “The second quarter was an exciting period for Fresh Del Monte in setting the stage for future growth. As we announced on June 9th we completed the largest acquisition in our history. The acquisition of Caribana dramatically boosts our banana and gold pineapple production. Additionally, in a separate transaction, we acquired the melon production assets from our 50 percent joint-venture partner in Costa Rica. We continued to improve the performance of our prepared food business as we further penetrated exciting new markets and explored new sourcing regions. The second quarter was also a challenging period, with significantly higher costs that were only partially offset by strong price increases, as well as several adverse weather-related events. Going forward, the Caribana acquisition will generate significant synergies, while at the same time we are aggressively pursuing price increases. We firmly believe in our business —- today more than ever —- and we are extremely enthusiastic about the opportunities we see ahead.” The sales increase was driven by the strong performance in the Company's global banana business segment, the result of higher banana selling prices in North America, the Middle East and Europe, due to industry-wide volume shortages and growing demand; continued strong demand for canned pineapple in Europe, a result of industry shortages; increased sales of Del Monte Gold(R) pineapple; and favorable exchange rates. Gross profit for the quarter, excluding US$2.1 million in costs related to flood damages in Brazil, was US$101.7 million, compared with gross profit of US$119.6 million for the same period last year. The decrease in gross profit was primarily the result of substantially higher year-over-year costs related to fruit production, fruit procurement, and logistics. Total debt increased from US$238.6 million at the end of 2007 to US$448.6 million, a US$210.0 million increase, primarily as a result of the Caribana acquisition on June 6, 2008. Based in the Cayman Islands, Fresh Del Monte Produce Inc. -- http://www.freshdelmonte.com/-- is one of the world's leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared fruit and vegetables, juices, beverages, snacks and desserts in Europe, the Middle East and Africa. Fresh Del Monte markets its products worldwide under the Del Monte(R) brand, a symbol of product quality, freshness and reliability since 1892. About USUS$197 million total debt was outstanding at March 28, 2008. Del Monte Fresh Produce Company has operations in Chile, Brazil, France, Philippines, and Korea. * * * As reported in the Troubled Company Reporter-Latin America on May 23, 2008, Standard & Poor's Ratings Services revised its outlook on Cayman Islands-based Fresh Del Monte Produce Inc. to positive from stable. Existing ratings on the company, including the 'BB-' corporate credit rating, were affirmed. NORTH AMERICAN CARRIERS: Deadline for Claims Filing Is Aug. 2 ------------------------------------------------------------- North American Carriers Ltd.'s creditors have until Aug. 2, 2008, to prove their claims to Walkers SPV Limited, 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. North American Carriers' shareholders decided on July 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman Cayman Islands Contact for inquiries: Anthony Johnson Telephone: (345) 914-6314 NORTH AMERICAN CARRIERS II: Claims Filing Deadline Is Aug. 2 ------------------------------------------------------------ North American Carriers II Ltd.'s creditors have until Aug. 2, 2008, to prove their claims to Walkers SPV Limited, 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. North American Carriers' shareholders decided on July 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman Cayman Islands Contact for inquiries: Anthony Johnson Telephone: (345) 914-6314 PARMALAT SPA: Citigroup Trial to Proceed to Jury Verdict -------------------------------------------------------- Parmalat S.p.A. communicates that Judge Harris of Bergen County Superior Court has denied Citigroup's motion for a directed verdict dismissing the claims asserted by the company. This means that the trial will proceed to a jury verdict. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. STONEHEATH RE: A.M Best Puts bb+ Rating Under Negative Review ------------------------------------------------------------- A.M. Best Co. has placed the debt rating of “bb+” on US$350 million non-cumulative perpetual preferred securities issued by Stoneheath Re, a Cayman Islands exempted company, under review with negative implications. The terms of the reinsurance agreement between Stoneheath Re and XL Capital provide that upon a payment by the issuer to the ceding insurers, triggered by a catastrophic event, XL Capital will issue and deliver to Stoneheath Re Series D preference ordinary shares of XL Capital (XL preferred securities) in an amount equal to the payment made by Stoneheath Re. Cash from the issuance of preferred securities by Stoneheath Re, which previously had been deposited into a trust account and subsequently disbursed as claim payments, will be replaced by the XL preferred securities. The under review status is to align the rating of Stoneheath Re's preferred securities with the rating of XL Capital's existing preferred stock issuances. The change in review status follows XL Capital's recently announced agreement with Security Capital Assurance Ltd. and XL Capital's subsequent capital action plan. The agreement provides for XL Capital to pay US$1.775 billion in cash and issue 8,000,000 Class A ordinary shares to Security Capital in exchange for the commutation of certain reinsurance agreements and as a result, the elimination of certain guarantees from XL Capital to Security Capital. Concurrently, XL Capital plans to issue ordinary shares and equity security units totaling approximately US$2.5 billion to offset the Security Capital payment, with any excess expected to be injected as capital into certain XL Capital members. Accordingly, the rating will remain under review with negative implications pending the successful completion of XL Capital's capital action plan and further assessment of additional negative effects, if any occur. Stoneheath Re is licensed as a restricted Class B reinsurer under the laws of the Cayman Islands and was formed to provide multi-year reinsurance capacity to certain insurance and reinsurance subsidiaries (ceding insurers) of XL Capital Ltd. ========= C H I L E ========= ALCATEL-LUCENT: Bags Gtd Contract to Deploy Network in Chile ------------------------------------------------------------ Alcatel-Lucent has secured a contract from Chilean service provider Gtd Group to deploy the country's first network based on fiber-to-the-home gigabit passive optical network (GPON) technology. Installation and deployment of the GPON network will start in the third quarter of 2008, initially serving residential broadband users in Santiago's prestigious Santa Maria de Manquehue district, with other neighborhoods of Chile's capital city following shortly after. Alcatel-Lucent's software will enable Gtd Manquehue, which serves residential customers and small and medium businesses for the Gtd Group, to deliver advanced broadband services such as high-definition television, Internet protocol television, video on demand and high-speed Internet. Alcatel-Lucent's GPON architecture also will enable Gtd Manquehue to seamlessly migrate its traditional voice services to voice over Internet protocol. “We selected GPON technology so we can offer our customers unlimited triple play and advanced business services backed with a richer quality of experience, which we think will better serve our residential and business customers and give us a competitive advantage in this market,” said Alberto Dominguez, General Manager of Gtd Manquehue. “Alcatel-Lucent's worldwide leadership in broadband and their experienced local services teams will help Gtd Manquehue successfully deploy this new fiber infrastructure, the first of its kind in Chile.” “Operators are facing an increasingly competitive environment so the evolution toward fiber is the next logical step they need to take to strengthen their position,” said Victor Agnellini, President of Alcatel-Lucent's activities in the Caribbean and Latin America region. “Alcatel-Lucent has been an important supplier of optical and IP/MPLS solutions to Gtd Group, and we are fully committed to support the evolution of this operator's network, as they launch innovative services to their customers.” Gtd Manquehue will deploy the Alcatel-Lucent 7342 Intelligent Services Access Manager Fiber-to-the-User (ISAM FTTU)and the Alcatel-Lucent 5520 Access Management System for element management. The 7342 ISAM FTTU has been the market's first platform to comply with the GPON recommendations of the Full Service Access Network (FSAN) group. Alcatel-Lucent remains the uncontested market leader in fixed broadband access with more than 166 million DSL lines shipped to date and a cumulative market share of more than 40%, more than three times that of its nearest competitor. More than 185 customers have adopted the Alcatel-Lucent ISAM product family –- the industry's first true high-end Internet protocol access platform that accommodates a wide range of access flavors and topologies. Alcatel-Lucent is engaged in more than 80 FTTx projects around the world, more than 60 of which are with GPON. Alcatel-Lucent is also a global leader in design, deployment, installation and maintenance of networks through its Services business. About GTD Mainly oriented to corporate and institutional sector, Gtd Group offers products and services ranging from country-wide voice and video enabled networks, to local and long distance telephony softwares. Gtd subsidiaries provide specific softwares for Public Telephony, Datacenter, Internet access and telemedicine services. The GTD Group orients its mission towards the delivery of highest quality services with innovative, agile and flexible softwares, kind to the specific necessities of its customers. GTD Manquehue is the residential branch of Gtd Group. About Alcatel-Lucent Headquartered in Paris, Alcatel-Lucent -- http://www.alcatel- lucent.com/ -- (NYSE:ALU) fka Alcatel, provides solutions that enable service providers, enterprises and governments, to deliver voice, data and video communication services to end users. It offers end-to-end solutions that enable communications services for residential, business and mobile customers. It has operations in more than 130 countries Alcatel-Lucent is organized around three business groups and four geographic regions. The Wireless, Wireline and Convergence groups, which make up the Carrier Business Group, are dedicated to serving the needs of the world's service providers. The Enterprise Business Group focuses on meeting the needs of business customers. The Services Business Group designs, deploys, manages and maintains networks worldwide. The company's geographic regions are Europe and North, Europe and South, North America, and Asia-Pacific. * * * Moody's Investor Service placed Alcatel-Lucent's probability of default rating at 'Ba2' in March 2007. The rating still holds to date with a stable outlook. ALCATEL-LUCENT SA: CEO & Chairman to Quit from Posts ---------------------------------------------------- Alcatel-Lucent SA disclosed changes to its leadership and Board of Directors. The company also announced its quarterly results and demonstrated improvements to its operational results for the third straight quarter. The company reported that it is making steady progress on the strategy the company laid out last fall. To pave the way for a fully aligned governance and management model going forward, the company announced these changes to its management team and Board of Directors: * Non-Executive Chairman Serge Tchuruk has decided to step down on Oct. 1, 2008; * CEO Pat Russo has decided to step down no later than the end of the year, and at the Board's request will continue to run the company until a new CEO is in place to effect a smooth transition and maintain the continuity of the company's business; * The Board will commence a search for a new non-executive Chairman and CEO immediately; * The Board is also initiating a process to change the composition of the Board to a smaller group that will include new members. “The merger phase is now behind us. I am proud that Alcatel- Lucent has become a world leader in a technology which is transforming our society. It is now time that the company acquires a personality of its own, independent from its two predecessors. The Board must also evolve and the Chairman should give the first example, which I have decided to do,” said Mr. Tchuruk. “I am very pleased with the progress we are making especially in light of a difficult market environment,” said Ms. Russo. “Our strategy is taking hold and our results are demonstrating good operational progress. That said, I believe it is the right time for me to step down. The company will benefit from new leadership aligned with a newly composed Board to bring a fresh and independent perspective that will take Alcatel-Lucent to its next level of growth and development in a rapidly changing global market.” “I have every desire to ensure a smooth transition of leadership within the company and I have informed the Board of my determination to work closely with them until the end of the year or sooner if a successor is named, and we are in agreement on this approach. I have great confidence in Alcatel-Lucent and believe this to be a company with tremendous potential,” added Ms. Russo. Now that the company has moved beyond the transitional phase of the merger, the Board has determined to restructure itself in a way consistent with the company's needs going forward. As part of this process the Board will reduce the size of its membership over time while adding several new members with strong industry expertise. To initiate this process, Henry Schacht announced that he will resign from the Board immediately believing that, being a former CEO, he should not remain beyond the transitional stage of the merger. Mr. Schacht was the CEO of Lucent Technologies prior to Ms. Russo becoming CEO in January 2002. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * Alcatel-Lucent continues to carry Ba3 Corporate Family and Senior Debt ratings, Not-Prime for short term debt, as well as B2 ratings for subordinated debt with negative outlook from Moody's Investors Service. The ratings were were affirmed in April 2008. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt still carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. =============== C O L O M B I A =============== BANCOLOMBIA: Appoints Juan Salazar As Audit Committee Member ------------------------------------------------------------ At a meeting held by the Board of Directors of Bancolombia S.A., Juan Camilo Restrepo Salazar has been appointed as new member of Bancolombia's Audit Committee. Mr. Restrepo Salazar has been a member of the company's Board of Directors since 2006. Mr. Restrepo Salazar will be occupying the position left vacant after Mr. Moncaleano Botero tendered his resignation from the Board of Directors and the Audit Committee. Bancolombia S.A. is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York S0tock Exchange. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2008, Moody's Investors Service upgraded Bancolombia's foreign currency subordinated bond rating to Baa3 from Ba1. Moody's said the outlook is stable. =================================== D O M I N I C A N R E P U B L I C =================================== BANCREDITO: Unit Sells Property to Internal Taxes for DOP45MM ------------------------------------------------------------- Segna's building property has been sold to Internal Taxes Agency for DOP45 million to be used as a revenue office, Dominican Today reports, citing the Insurance Superintendence. The building is located at Abraham Lincoln Avenue #1005, on a 1,003 square meter lot with 545 square meters of construction, the report says. According to the report, Insurance superintendent Euclides Gutierrez and Internal Taxes director Juan Hernandez have signed the sales contract moving the building to the tax collecting agency. Segna is a subsidiary of Bancredito. After Bancredito’s collapse, the Insurance Superintendence has intervened the insurance agency Segna on Nov. 19, 2003, which cost the Dominican taxpayers almost US$1 billion. Bancredito is a subsidiary of Banco Intercontinental, which collapsed in 2003 as a result of massive fraud that drained it of about US$657 million. As a consequence, all of its branches were closed. The bank's current and savings accounts holders were transferred to the bank's new owner -- Scotiabank. The bankruptcy of Baninter was considered the largest in world history, in relation to the Dominican Republic's Gross Domestic Product. The resulting deficit was equal to 12% to 15% of the country's national GDP. It costs Dominican taxpayers DOP55 billion and resulted to the country's worst economic crisis. TRICOM SA: Court Adjourns Aug. 6 Plan Status Conference Hearing --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York adjourns the hearing scheduled for Aug. 6, 2008, to Aug. 7, 2008, for Tricom S.A. Matters to be discussed at the Aug. 7 hearing include the status conference on the confirmation of the Debtors' Prepackaged Joint Chapter 11 Plan of Reorganization. As reported in the Troubled Company Reporter on July 8, 2008, the Court adjourned to an indefinite date the hearing to consider confirmation of Tricom S.A. and its U.S. affiliates' Prepackaged Chapter 11 Plan and approval of the Disclosure Statement explaining the Plan. The Court said, however, did not reset the Aug. 6, 2008 status conference hearing on issues related to the Plan confirmation. About Tricom S.A. Tricom, S.A., was incorporated in the Dominican Republic on Jan. 25, 1988, as a Sociedad Anonima. Tricom is one of the pre-eminent full service communications services providers in the Dominican Republic. Headquartered in Santo Domingo, Tricom offers local, long distance, and mobile telephone services, cable television and broadband data transmission and Internet services, which are provided to more than 729,000 customers. Tricom's wireless network covers about 90% of the Dominican Republic's population. Tricom's local service network is 100% digital. The company also owns interests in undersea fiber- optic cable networks that connect and transmit telecommunications signals between Central America, the Caribbean, the United States and Europe. Tricom USA, Inc., a wholly owned subsidiary of Tricom, was incorporated in Delaware in 1992, and at that time was known as Domtel Communications. A name change was effected in 1997 and Domtel Communications formally became Tricom USA, Inc. Tricom USA originates, transports and terminates international long-distance traffic using switching stations and other telecommunications equipment located in New York and Florida. Tricom S.A. and its U.S. affiliates filed for Chapter 11 protection on Feb. 29, 2008 (Bankr. S.D. N.Y. Case No. 08- 10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP, in New York City, represent the Debtors. When the Debtors' filed for protection from their creditors, they listed total assets of US$327,600,000 and total debts of US$764,600,000. (Tricom Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000) TRICOM SA: Court Allows Use of Credit Suisse' Collateral -------------------------------------------------------- At the behest of the Tricom, S.A., and its debtor-affiliates and Credit Suisse International, the U.S. Bankruptcy Court for the Southern District of New York approved a stipulation permitting the Debtors to use the bank's collateral, which consists of real properties and telecommunications equipment securing the US$25,529,781 loan the Debtors obtained from the bank. As of the petition date, Tricom had made all interest payments required under the secured debt documents. However, Tricom has not made any postpetition interest payments to Credit Suisse. Subsequent to the petition date, the Debtors have continued to use the Credit Suisse collateral in the ordinary course operation of their businesses. In return for the continued use of the collateral, the Debtors shall pay to Credit Suisse: (a) amounts corresponding to the interest that would accrue on the bank's secured claims for US$25,529,781 at the contract rates for each month beginning March 2008; and (b) fees and expenses of Credit Suisse's counsel. If the Debtors fail to make timely payments, they have to cure the default within seven days after receiving a notice of default from Credit Suisse. In consideration of the Ad Hoc Committee of Unsecured Creditors' suggestion, the Court ruled that all payments made by the Debtors will be considered payment in full of all accrued postpetition interest on account of Credit Suisse's secured claims in the event their Prepackaged Joint Chapter 11 Plan, or any other plan providing similar treatment of the bank's secured claims, is confirmed and becomes effective. The parties agreed that Credit Suisse will not be allowed to seek (i) additional postpetition interest; (ii) interest at any rate other than the non-default contract rate on any unpaid installment of interest; and (iii) penalties, fees or costs under the secured debt documents other than those provided for under the stipulation and the Plan Support and Lock-up Agreement. About Tricom S.A. Tricom, S.A., was incorporated in the Dominican Republic on Jan. 25, 1988, as a Sociedad Anonima. Tricom is one of the pre-eminent full service communications services providers in the Dominican Republic. Headquartered in Santo Domingo, Tricom offers local, long distance, and mobile telephone services, cable television and broadband data transmission and Internet services, which are provided to more than 729,000 customers. Tricom's wireless network covers about 90% of the Dominican Republic's population. Tricom's local service network is 100% digital. The company also owns interests in undersea fiber- optic cable networks that connect and transmit telecommunications signals between Central America, the Caribbean, the United States and Europe. Tricom USA, Inc., a wholly owned subsidiary of Tricom, was incorporated in Delaware in 1992, and at that time was known as Domtel Communications. A name change was effected in 1997 and Domtel Communications formally became Tricom USA, Inc. Tricom USA originates, transports and terminates international long-distance traffic using switching stations and other telecommunications equipment located in New York and Florida. Tricom S.A. and its U.S. affiliates filed for Chapter 11 protection on Feb. 29, 2008 (Bankr. S.D. N.Y. Case No. 08- 10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP, in New York City, represent the Debtors. When the Debtors' filed for protection from their creditors, they listed total assets of US$327,600,000 and total debts of US$764,600,000. (Tricom Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000) ============= E C U A D O R ============= PETROECUADOR: To Hold 70% Stake in Joint Venture with Venezuela --------------------------------------------------------------- Petroecuador disclosed that Ecuador will sign a 25-year deal with Venezuela to raise the output of the Sacha oil field from 40,000 barrels to 70,000 barrels per day, Xinhua News Agency reports. According to the report, Jose Ziritt, representative of Ecuadoran President Rafael Correa, said the countries' joint venture will create a company called "Rio Napo" with the aim to "optimize" the management of Sacha. Under the venture, the report says Petroecuador will hold 70 percent stake of the new company, while PDVSA will receive 30% share. The report relates that Jose Shanchez, an advisor to Ecuadoran Minister of Mines and Petroleum Galo Chiriboga, said cooperation with the PDVSA was due to the Venezuelan company's technological advantages needed to boost the oil extraction. Located in Ecuador's Amazonian jungle, the Sacha field has 480 million barrels of oil reserves, Xinhua News says. About PDVSA 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. About Petroecuador Headquartered in Quito, Ecuador, Petroecuador -- http://www.petroecuador.com.ec-- is an international oil company owned by the Ecuador government. It produces crude petroleum and natural gas. * * * In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. ================= G U A T E M A L A ================= BRITISH AIRWAYS: In Talks with Iberia SA over Possible Merger ------------------------------------------------------------- British Airways Plc and Iberia Lineas Aereas de Espana SA are holding talks with a view to an all-share merger between the two companies. The negotiations are supported unanimously by the boards of both companies. The British Airways and Iberia brands would be retained as part of a combined group. Iberia's chairperson and chief executive, Fernando Conte, said, “A merger would be good news for our customers and enhance our existing relationship. We've worked together for nearly 10 years and a tie-up would build on that success. It would also strengthen the oneworld alliance and further develop Madrid's position as the European gateway to Latin America.” British Airways' chief executive, Willie Walsh, stated, “The aviation landscape is changing and airline consolidation is long overdue. The combined balance sheet, anticipated synergies and network fit between the airlines make a merger an attractive proposition, particularly in the current economic environment. We've had a successful relationship with Iberia for a decade and are confident that both companies' shareholders would benefit from the proposed tie-up.” British Airways acquired a 9% shareholding in Iberia in 1999 and has recently increased its shareholding to 13.15% . Iberia has announced that it has recently acquired a 2.99% direct shareholding in British Airways and financial exposure to a further 6.99% through contracts for difference linked to British Airways' share price. The airlines' shareholdings reinforce the mutual interest of both companies in each other. It is expected that it will take several months to reach agreement on the terms of the merger and to finalize a joint business and integration plan for the combined group. Both parties are confident of securing regulatory approval. The European Union has already granted British Airways and Iberia approval to co-operate widely. About Iberia SA Headquartered in Madrid, Iberia Lineas Aereas de Espana SA -- http://www.iberia.com/-- engages in the transport of passengers and cargo, aircraft maintenance and handling services in airports. The Transport of Passengers and Cargo division operates 150 aircrafts. It provides transport services to the countries in Europe and Latin America. Iberia Lineas Aereas de Espana SA is a member of the Oneworld alliance. About British Airways Headquartered in Harmondsworth, England, 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. CLAIRE STORES: Moody's Junks Probability of Default Rating ---------------------------------------------------------- Moody's Investors Service downgraded Claire's Stores, Inc.'s, ratings, including its probability of default rating to Caa1 from B3 and speculative grade liquidity rating to SGL-4 from SGL-3. In addition, Claire's long term ratings were placed on review for further possible downgrade. The downgrade to Caa1 reflects Claire's weak operating performance over the past two quarters that has led to deterioration in its debt protection measures. In particular, EBITA to interest expense fell to 0.9 times for the lagging twelve month period ending May 3, 2008. The review for further possible downgrade reflects the high likelihood that Claire's debt protection measures will get worse given the challenging economic environment which makes the company highly susceptible to further earnings and cash flow pressure. For the LTM period ending May 3, 2008, Claire's unadjusted EBITDA fell to US$248 million which was well below Moody's expectations and fiscal 2007 results. As a result, EBITA to interest weakened to 0.9 times and debt to EBITDA rose to 8.8 times. This earnings shortfall has also pressured the company's cash flow requiring Claire's to choose to accrete rather than pay cash interest under its senior PIK toggle notes. Earnings shortfalls also make it highly likely that the company will become a permanent borrower under its revolving credit facility over the next twelve months. The downgrade to SGL-4 reflects Claire's weak liquidity given its current level of free cash flow deficits and the high likelihood that the company will continue to generate free cash flow deficits. Despite the company's electing to defer cash interest under its PIK toggle notes, Moody's believes that Claire's will likely remain free cash flow negative which will result in sustained levels of permanent borrowings under its revolving credit facility. While the company appears to have enough availability under its US$200 million revolving credit facility to fund its free cash deficit over the next twelve months, unfavorable operating results and working capital changes during the period could rapidly absorb this availability. Despite the company's operating and liquidity challenges, positive consideration is given to the fact that there are no near-term scheduled debt maturities, and the fact that Claire's revolving credit facility has no financial covenants. Moody's review for downgrade will focus on the company's near term operating performance, level of cash flow burn, as well as the likelihood that it will sustain a level of permanent borrowings under its revolver. Moody's review will also focus on the overall economic environment and its impact on mall traffic, consumer confidence, and discretionary spending. The following ratings are downgraded and placed on review for further possible downgrade: -- Probability of default rating to Caa1; -- Corporate family rating to Caa1; -- US$200 million senior secured revolving credit facility to B2 from B1; -- US$1,450 million senior secured term loan to B2 from B1; -- Senior unsecured notes to Caa2 from Caa1; -- Senior subordinated notes to Caa3 from Caa2. The following rating is downgraded: -- Speculative grade liquidity rating to SGL-4 from SGL-3. -- The current LGD assessments remain subject to change. Headquartered in Pembroke Pines, Florida, Claire's Stores Inc. (NYSE: CLE) -- http://www.clairestores.com/-- is a specialty retailer of value-priced jewelry and accessories for girls and young women through its two store concepts: Claire's and Icing. While the latter operates only in North America, Claire's operates worldwide. As of May 3, 2008, Claire's Stores, Inc. operated 3,053 stores in North America and Europe. Claire's Stores Inc. also operates through its subsidiary, Claire's Nippon Co. Ltd., 201 stores in Japan as a 50:50 joint venture with AEON Co. Ltd. The company also franchises 169 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. ========= H A I T I ========= TRILOGY INT'L: S&P Affirms B- Long-Term Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'B-' long- term corporate credit rating and US$250 million senior secured debt rating on Trilogy International Partners LLC. The outlook is stable. “The rating reflects the company's exposure to sovereign, regulatory, and foreign exchange risks, given its operations and focus in countries that have political and economic problems, its brief track record operating as a consolidated entity, and its highly leveraged financial risk profile. Favorable growth prospects in Latin America and the Caribbean and a degree of geographic diversity in the company's operations support the ratings,” said S&P's credit analyst Fabiola Ortiz. The geographic diversity of Trilogy's operations and the guarantee from its domestic operations mitigate the structural subordination of the debt. S&P's rating on the loan is based on its expectation that the ratio of priority liabilities to total assets will remain near or below 15%. Trilogy's principal operating subsidiaries include: -- NuevaTel (PCS de Bolivia) S.A., a Bolivian corporation; -- All America Cables and Radio Dominican Republic, a British Virgin Islands corporation; and -- Communication Cellulaire d'Haiti S.A., a Haitian corporation. The subsidiaries hold licenses to provide wireless communication services to a population of approximately 9.3 million, 8.9 million, and 9.5 million, for Bolivia, Haiti, and the Dominican Republic, respectively. In addition to wireless services, the operating subsidiaries are authorized to provide international long distance, public telephony, and mobile data services. Trilogy was formed in November 2005 to acquire Alltel Corp.'s (B+/Watch Positive/--) Haitian and Bolivian wireless operations. It acquired Centennial Communications Corp.'s (B/Stable/--) Dominican Republic assets in March 2007. Finally, during May 2008, the company acquired a minority participation of 26.88% of a greenfield network in New Zealand (FC: AA+/Stable/A- 1+, LC: AAA/Stable/A-1+). Although the management team has operated in the industry for many years, it has only a brief track record as a consolidated entity. S&P believes that Trilogy's business strategy, which focuses on investing in wireless businesses in developing countries that present significant growth opportunities, exposes the company to the inherent risks of operating in countries that have or have had political and economic problems. Despite the favorable growth rates that Bolivia (B-/Stable/C), Dominican Republic (B+/Negative/B), and Haiti (not rated) have experienced in recent years, they continue to face important challenges that could lead to an adverse operating environment in the future. However, the new investment in New Zealand, which Trilogy expects to launch in 2009, will increase the company's presence in a market with a more favorable economic framework and political environment, even though it has a minority interest participation in the country. The stable outlook reflects S&P's expectations that Trilogy's key financial ratios will improve and that the company will continue to pursue future acquisitions aggressively to grow its existing portfolio. If the company's liquidity weakens, if there is an increase in short-term debt and/or a significant deterioration of country risk in any market, S&P could revise the outlook to negative. While this is not likely, if the company increases its presence in markets exhibiting a more favorable economic and political environment, materially improves its financial ratios, and has consistently positive free operating cash-flow generation, S&P could take a positive rating action. Headquartered in Bellevue, Washington, Trilogy International Partners LLC operates wireless systems in South and Central America. It owns controlling interests in Nuevatel (PCS de Bolivia S.A.) and Communication Cellulaire d' Haiti S.A., which provides wireless fixed and mobile telephony services in Bolivia and Haiti. ============= J A M A I C A ============= OLINT CORP: Members File Lawsuits Against David Smith ----------------------------------------------------- Paul Henry at The Jamaica Observer reports that claimant Christopher Walker and Micheal Belcher, two members of Olint Corp. Limited, have filed lawsuits before the Supreme Court of Jamaica against the firm's chief, David Smith, to recover over US$3 million they allegedly invested in the company. Mr. Smith had tried to calm down Olint members in a press release last week, saying that the firm conducted an audit of members' accounts and balances. According to The Observer, the complainants are seeking damages for “fraudulent representation”. Mr. Walker is seeking to recover almost US$2.5 million plus interest, while Mr. Belcher is seeking to recover US$800,000 plus interest. They are also asking for a court order to trace Mr. Smith's assets that are in the hands of other individuals. Law firm Heart Muirhead Fatta is representing the complainants. The Observer relates that Mr. Smith's assets in Turks and Caicos Islands have been frozen as part of a investigation on alleged financial crime. Problems with the Financial Services Commission made Mr. Smith move Olint's headquarters to Turks and Caicos from Jamaica in 2007. The Commission served cease and desist orders to Olint in 2006, after finding out that the company was unregulated. Olint Corp. Limited is an investment scheme based in Jamaica. It has operations in Turks and Caicos and the U.S. It has been facing legal problems since 2006 when the Financial Services Commission served a cease-and-desist order on the firm. On Dec. 24, 2007, the court ruled that the operations of Olint breached provisions of the Securities Act. The firm had been dealing in securities and engaging in the participation of a profit-sharing agreement, issuing investment contracts, and providing advice to potential investors without licenses and registration. Olint appealed the ruling and was granted a stay of execution of the cease-and-desist order until the appeal was heard in February 2008. In May 2008, the National Commercial Bank Jamaica Limited attempted to close three Olint accounts in the bank. However, Olint secured an injunction from the court barring the National Commercial from closing the accounts. Olint has suspended payments to its members since early this year. SUGAR COMPANY: Workers to Get Redundancy Packages on Divestment --------------------------------------------------------------- The Jamaican government will pay redundancy packages to sugarcane workers at its sugar producer, the Sugar Company of Jamaica Ltd., following the divestment of its assets to Infinity Bio-Energy, The Jamaica Gleaner reports. As reported in the Troubled Company Reporter-Latin America on July 30, 2008, the Jamaica Gleaner said the Jamaican government agreed to divest the assets of Sugar Company to Infinity in June 2007, and the assets will be fully transferred by Sept. 30, 2008. Following divestment, the government will continue to hold a 25% stake of the company's assets, amounting to J$1.8 billion (US$25 million), the Gleaner said. With the European Union's support, Jamaica will pay US$2.7 billion worth of redundancy packages to the workers as compensation funds should results of the divestment fail to provide employment for the island's workers, The Gleaner relates. According to The Gleaner, workers of the company also want to lease parts of the sugar lands. Agricultural Minister, Dr. Christopher Tufton told The Gleaner that the leasing of the lands is one of the issues the new company will be working on after the divestment. 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 =========== ALLIS-CHALMERS: Moody's Assigns B2 Rating to Proposed Notes ----------------------------------------------------------- Moody's Investors Service assigned a B2 (LGD 4, 55%) rating to the proposed US$350 million senior unsecured notes to be issued by Allis-Chalmers Energy Inc. (ALY). At the same time, Moody's changed ALY's rating outlook to positive from stable and affirmed its B2 Corporate Family Rating, B2 Probability of Default Rating, B2 (LGD 4, 55%) senior unsecured note ratings, and SGL-2 speculative grade liquidity rating. Proceeds from the notes will be used to fund the cash portion of ALY's pending acquisition of Bronco Drilling Company, Inc. (not rated), refinance US$72 million in debt at Bronco, fund approximately US$13 million in severance costs to Bronco executives and US$15 million in transaction costs and fees, with the remainder used to repay borrowings under ALY's revolving credit facility and for general corporate purposes. The Bronco acquisition is being financed with US$200 million in cash and 16.8 million shares of ALY's common stock. The sale of the notes is conditioned on the closing of the Bronco acquisition, which pending regulatory and shareholder approvals, is expected to close in August. The positive outlook reflects the company's increased scale and diversification, which are indicative of a higher rating, and management's track record of financing material acquisitions with a substantial equity component. Management's demonstrated willingness to issue equity has provided a degree of financial cushion partially mitigating the risks associated with ALY's aggressive growth strategy. These risks include valuation and performance risk inherent to a proportionally high level of acquisitions priced during fairly robust sector conditions, event and integration risk, and business and political risk associated with step-outs into new business lines and regions with substantial political risk. An upgrade of ALY's B2 Corporate Family Rating will depend on the company's success in integrating and achieving projected earnings from the Bronco acquisition, which represents the company's largest acquisition to date and its first entry into the contract drilling market in the U.S.; generating improved results from its recently restructured rental tools business, which has performed below expectations; maintaining conservative financial leverage, with debt/EBITDA maintained within 3x; and continuing to finance material acquisitions with a meaningful equity component. Weaker than expected operating results, protracted acquisition integration, or an unfavorable change in financial policies could result in the outlook returning to stable. Headquartered in Houston, Texas, Allis-Chalmers Energy Inc. (NYSE: ALY) -- http://www.alchenergy.com-- is an oilfield services company. It provides services and equipment to oil and natural gas exploration and production companies, domestically primarily in Texas, Louisiana, New Mexico, Colorado, Oklahoma, Mississippi, Wyoming, Arkansas, West Virginia, offshore in the Gulf of Mexico, and internationally primarily in Argentina and Mexico. Allis-Chalmers provides rental services, international drilling, directional drilling, tubular services, underbalanced drilling, and production services. ALLIS-CHALMER: S&P Rates Proposed US$350MM Sr. Unsec. Notes 'B+' ---------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its 'B+' rating to the company's proposed US$350 million senior unsecured notes due 2018. At the same time S&P assigned the notes a recovery rating of '3', indicating meaningful (50% to 70%) recovery in the event of a payment default. The company will use note proceeds to help to finance the acquisition of Bronco Drilling Co. Inc. (unrated). S&P also affirmed the 'B+' corporate credit rating. The outlook is stable. The corporate credit rating on Allis reflects recently soft operating performance at the company, specifically its rental services segment, and low rig utilization rates at Bronco during the fourth quarter of 2007 and the first quarter of 2008, which resulted in lower cash flows. Also, the company is very acquisitive. While the acquisitions have improved Allis' scale and scope of operations, they also raise questions as to whether management has the ability to effectively manage such rapid growth. Furthermore, the acquisition of Bronco represents the company's first venture in the domestic land rig business. Finally, the oilfield services industry is highly cyclical. S&P expects demand for services to improve during the second half of 2008 because of robust commodity prices, but the rig count has historically been very volatile, and a reversion to low drilling activities would result in significantly lower cash flows for Allis. “The rating also reflects expected improvements in operating performance as a result of strong industry conditions during the second half of 2008, adherence to its stated financial policy, and meaningful improvements in the company's scale and product offerings during the past year,” said Standard & Poor's credit analyst Amy Eddy. Allis is a small, rapidly growing oilfield services company operating primarily in Texas, Louisiana, and Argentina. The company has consummated several acquisitions since 2001 and has increased its pro forma EBITDA to about US$300 million compared with US$37 million when Standard & Poor's first rated the company in January 2006. Although the pace of acquisitions raises questions as to whether management has the ability to effectively manage such rapid growth and complicates operating performance comparisons, S&P recognizes that the acquisitions have strengthened the company's business risk profile. The outlook is stable. Standard & Poor's recognizes that industry trends for oilfield services should remain favorable in the near term, which should improve Allis' cash flows during the second half of 2008. S&P expects the company to continue to be acquisitive and maintain a debt to EBITDA ratio of around 3x. Any further positive rating actions are contingent on Allis' ability to profitably maintain its scale and scope of operations. Worse-than-expected financial results, whether due to deteriorating industry fundamentals or company-specific issues, that result in debt to EBITDA above 4x and interest coverage of less than 3x could result in a negative rating action. Headquartered in Houston, Texas, Allis-Chalmers Energy Inc. (NYSE: ALY) -- http://www.alchenergy.com-- is an oilfield services company. It provides services and equipment to oil and natural gas exploration and production companies, domestically primarily in Texas, Louisiana, New Mexico, Colorado, Oklahoma, Mississippi, Wyoming, Arkansas, West Virginia, offshore in the Gulf of Mexico, and internationally primarily in Argentina and Mexico. Allis-Chalmers provides rental services, international drilling, directional drilling, tubular services, underbalanced drilling, and production services. BHM TECHNOLOGIES: Eclipse Wants to Lift Stay to Recover Tooling --------------------------------------------------------------- Eclipse Tool & Die, Inc., asks the U.S. Bankruptcy Court for the Western District of Michigan (i) to grant it relief from the automatic stay to allow it to recover its tooling from BHM Technologies Holdings, Inc. and its debtor-subsidiaries, or in the alternative, and (ii) to direct them to pay US$699,635, and provide adequate protection for its interest in the equipment. Eclipse, a Michigan corporation, is a small tool and die company located in Wayland, Michigan, that specializes in the building of special metal fabricating tools and dies that are ultimately delivered to companies such as the Debtors, to produce production parts for inclusion into major North American and Asian automotive original equipment manufacturers and Tier-1 suppliers. David S. Lefere, Esq., at Bolhouse, Vander Hulst, Risko & Baar, P.C., in Grandville Michigan, states that as of the Petition Date, Eclipse has not been paid the amount of US$699,635, that it is owed for the Special Tooling it designed, fabricated and manufactured for Brown Corp. The Special Tooling designed, fabricated and manufactured by Eclipse for Brown Corp., was singularly designed for use in the automotive industry for the purpose of producing specific production and component parts for Chrysler, LLC's 2009 Dodge Journey vehicle program. Eclipse obtained and perfected tooling liens in the Special Tooling it designed, fabricated and manufactured for Brown Corp. in accordance with the procedures set forth in the Michigan Special Tool Lien Act, "MSTLA", MCL 570.541 et. seq. Mr. Lafere notes that Eclipse was required to borrow a significant amount of money in order to finance the design, fabrication and manufacture of the Special Tooling for Brown Corp. and is currently paying 7% of the US$699,6350 on a yearly basis. Based on the interest rate at 7% on US$699,635, Eclipse is paying US$48,974 per year in order to finance the Special Tooling that has been designed, fabricated, manufactured and delivered to Brown Corp. and which Brown Corp. is generating revenue from. Eclipse says it is essentially paying approximately US$136.00 in interest per day for the Special Tooling that is generating revenue for Brown Corp. and the Debtors. Each day that Eclipse goes unpaid by the Debtors, Eclipse suffers a loss of US$136 a day, due to its interest payments, Mr. Lafere tells the Court. Headquartered in Ionia, Michigan, BHM Technologies Holdings Inc.-- http://www.browncorp.com/-- manufactures and sells automobile parts including air bags and electrical systems. It has manufacturing facilites in Mexico and operates under Brown Corp. BHM Technologies Holdings, Inc. and 14 affiliates filed separate voluntary petitions under Chapter 11 on May 19, 2008 (Bankr. W.D. Mich. Lead Case No. 08-04413). Hannah Mufson McCollum, Esq., Kay Standridge Kress, Esq., Robert S. Hertzberg, Esq., and Leon R. Barson, Esq. of Pepper Hamilton LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for bankruptcy, it listed estimated assets of US$100 million to US$500 million and estimated debts of US$100 million to US$500 million. The Debtors have until Sept. 16, 2008, to exclusively file their bankruptcy plan. (BHM Technologies Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000) BLUE WATER: Mulls Closure After US$39MM Sale Fell Through --------------------------------------------------------- Blue Water Automotive Systems Inc. said it may cease operations as the approval of the going-concern sale of its business to Flex-N-Gate, LLC, did not push through. Blue Water has withdrawn its request for approval of that sale on July 16. The Debtors entered into a stalking-horse sale agreement with NYX, Inc., which proposed to pay US$7,000,000 in cash, and US$21,000,000 in promissory notes, subject to higher and better offers. During the auction, the Debtors selected Flex-N-Gate's bid, initially at US$22,400,000, all in cash. Flex-N-Gate's “final” offer was valued at about US$39,500,000, including US$19,400,000 in cash, James D. Sampson, chief executive officer of Blue Water, said. The Debtors' decision to scrap the going-concern sale of their auto-parts business has raised questions as to the future of their business and employees. The delay in the sale has affected the company's supply contracts with the Detroit's Big Three -- Ford Motor Company, Chrysler, LLC, and General Motors Corp. -- and the confirmation hearings related to the Debtors' Chapter 11 plan of liquidation. Mr. Sampson said Blue Water reached an agreement to continue supplying parts for Ford until August 11. He, however, acknowledged that that General Motors and Chrysler probably will take their business elsewhere. Blue Water's Chapter 11 Plan of Liquidation, which has been overwhelmingly approved by creditors, provides for a going- concern sale of the business, a better alternative to a forced liquidation sale in Chapter 7, especially to employees. Mr. Sampson has informed Blue Water's 1,238 employees of the possibility of shutting down operations in 60 to 90 days time, the Ann Arbor News notes. “I'm still hopeful that there can be some resolution,” Mr. Sampson said, according to Bloomberg News. Plan confirmation hearing has been adjourned to August 11. Mr. Sampson, in an interview with Bloomberg News, says CIT Group, Inc.'s opposition to Flex-N-Gate's Bid, as well as objections from the other creditors, made Blue Water apprehensive of the United States Bankruptcy Court Eastern District of Michigan's approval of the Bid. CIT Group/Equipment Financing, Inc., and CIT Capital USA, Inc., are owed more than US$40,000,000 in collateralized loans. CIT Entities Adversary Proceeding CIT Capital USA, Inc., and CIT Capital Group/Equipment Financing, Inc., assert the existence of an intercompany debt is a violation of each mortgage for the properties, of which contained a provision that Blue Water Automotive Systems Properties, LLC “has no material financial obligations” other than the obligations to the CIT Entities. As the Intercompany Debt exists, BW Properties and Blue Water Automotive Systems, Inc., which controlled BW Properties, were guilty of fraud, Shalom L. Kohn, Esq,. at Sidley Austin LLP, in Chicago, Illinois, avers. The CIT Entities admit that they have received certain transfers within two years of the Petition Date, consisting of proceeds of the Lease from BW Properties to BWASI, which was pledged to CIT Capital pursuant to the Assignment of Leases and Rents. The CIT Entities aver that there was no fraudulent conveyance because BWASI was permitted to occupy the Properties in exchange for the monthly rent. Continued occupancy was the reasonably equivalent value exchange for the transfer, Mr. Kohn asserts. He adds a mere failure of CIT Capital to pay money, as alleged by BWASI is not a transfer from the Debtors and thus cannot give rise to fraudulent conveyance liability. CIT Entities, saying they have no knowledge whether the Debtors paid taxes and insurance, demand the Debtors' proof of payment. CIT Capital contends only BW Properties, being a party to the Mortgage, has the right, prior to an event of default and by submission of invoices, to obtain cash from the Account to pay taxes and insurance. That despite BW Properties' failure to provide invoices, CIT Capital has reimbursed BW Properties US$300,071 for the taxes and insurance, Mr. Kohn argues. If CIT Capital had any obligation to remit the funds under the Impound Account, they would be nothing more than a claim against CIT Capital. As BW Properties had an obligation to CIT Capital for US$14,981,372, CIT Capital's set-off rights with respect to the Impound Account precludes any recovery from the alleged breach of contract, unless and until CIT Capital's claims against BW Properties are paid in full. CIT Equipment explains that as of May 17, 2006, the value of the assets pledged by BWASI to secure the Equipment Lease exceeded the amounts due on the Lease thus there would be no need for the BWAS Mexico and BW Plastics to resort to the Guaranties. As the Mexican Entities are not creditors of CIT Equipment, they could not be insolvent, and the fact that they have no liabilities means that they could have been solvent, Mr. Kohn reiterates. The CIT Entities assert the disallowance of the CIT Entities' Claims is without merit as the Debtors' arguments cannot stand, the Court cannot grant its request for disallowance. The CIT Entities assert that to the extent that any transfer is sought to be set aside as a fraudulent conveyance, the CIT Entities have the right to retain their liens and enforce their obligations pursuant to Section 548(c) of the Bankruptcy Code. Thus, as the Complaint fails to state a claim, the CIT Entities ask the Court for a summary judgment in their favor with respect to the Complaint. About Blue Water Automotive Blue Water Automotive Systems, Inc. designs and manufactures engineered thermoplastic components and assemblies for the automotive industry. The company's product categories include airflow management, full interior trim/sub-systems, functional plastic components, and value-added assemblies. They are supported by full-service design, program management, manufacturing and tooling capabilities. With more than 1,400 employees, Blue Water operates eight manufacturing and product development facilities and has annual revenues of approximately US$200 million. The company's headquarters and technology center is located in Marysville, Mich. The company has operations in Mexico. In 2005, KPS Special Situations Fund II, L.P., and KPS Special Situations Fund II(A), L.P., acquired Blue Water Automotive through a stock purchase transaction. In 2006, the company acquired the automotive assets and operations of Injectronics, Inc., a manufacturer of thermoplastic injection molded components and assemblies. KPS then set about reorganizing the company. The company implemented a program to improve operating performance and address its liquidity issues. During 2007, the company replaced senior management, closed two facilities, and reduced overhead spending by one third. Blue Water Automotive and four affiliates filed for chapter 11 bankruptcy protection Feb. 12, 2008, before the United States Bankruptcy Court Eastern District of Michigan (Detroit) (Case No. 08-43196). Judy O'Neill, Esq., and Frank DiCastri, Esq., at Foley & Lardner, LLP, serve as the Debtors' bankruptcy counsel. Administar Services Group LLC acts as the Debtors' claims, noticing, and balloting agent. Blue Water's bankruptcy petition lists assets and liabilities each in the range of US$100 million to US$500 million. The Debtors filed their Liquidation Plan on May 9, 2008. The Plan contemplates a sale of substantially all of the Debtors' assets and equity interests, except for a piece of real property located at Yankee Road, in St. Clair, Michigan. The Plan has been confirmed by the Court. (Blue Water Automotive Bankruptcy News, Issue No. 24, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) CLEAR CHANNEL: Fitch Cuts Issuer Default Rating to B from BB- ------------------------------------------------------------- In-line with prior guidance, Fitch Ratings has downgraded the Issuer Default Rating and outstanding debt rating of Clear Channel Communications, Inc. as: -- IDR to 'B' from 'BB-'; -- Senior unsecured non-guaranteed notes to 'CCC/RR6' from 'BB-'. Fitch has also removed Clear Channel from Rating Watch Negative, where it was originally placed on Oct. 26, 2006. The Rating Outlook is Negative. Additionally, Fitch has withdrawn all existing ratings of Clear Channel. Fitch's downgrade follows the recent announcement that shareholders have approved the acquisition of Clear Channel by certain investors in a highly leveraged transaction. The transaction will result in proforma leverage and coverage of approximately 9 times, and 1.5x, respectively. The IDR and Negative Outlook reflect the weak macroeconomic environment that continues to pressure local advertising sales of traditional media outlets like radio broadcasting as well as the longer-term pressures that secular changes have placed on traditional media. In addition, the ratings and outlook take into account the company's US$1 billion of maturities in 2011, as well as significant principal amortization on the term loans that will begin late 2011. Fitch believes that Clear Channel has separable assets that could be sold if ever needed to de-lever and generally would not impact core operations. While management has never stated such, Fitch believes these assets include Clear Channel's International Outdoor segment that, in Fitch's opinion, does not provide significant synergies with the company's U.S. operations and its Katz Media national rep firm. Proceeds from any asset sales generally have to go towards repayment of the new term loans. Fitch estimates that Clear Channel should be able to generate annual free cash flow of at least US$150 million assuming no pay-in-kind election on the toggle notes. Fitch estimates a PIK election could result in an additional US$150 million of annual pre-tax cash flows. Other sources of liquidity could come from Clear Channel's US$2 billion committed revolver. Fitch does not expect the secular challenges facing radio to be as significant as those facing print media, and believes that the medium will benefit from the continued roll-out of HD radio. Supply issues related to the number of ad spots could be present with HD radio, however Fitch believes the technology should help the industry attract more national advertising. While the outdoor segment is also susceptible to the slowing macro- economic environment, Fitch expects mid-single digit growth and continued margin expansion from the U.S. segment as it continues to roll-out digital billboards and takes market share from other traditional media outlets. The new debt (totaling approximately US$18 billion of new senior secured term loans and revolver, and senior unsecured notes, none of which were rated by Fitch) is expected to receive guarantees from Clear Channel's wholly-owned domestic restricted subsidiaries, which Fitch expects to include Clear Channel Holdings, Inc., the parent of Clear Channel Outdoor Holdings, Inc. The 'CCC/RR6' rating on the existing bonds and debentures of Clear Channel that remain outstanding reflect that they are structurally junior to the new debt since it will not receive subsidiary guarantees. The rating withdrawal reflects Fitch's view that the level and timeliness of information available to Fitch going forward may not be sufficient to maintain timely and accurate ratings. 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. In addition, it had equity interests in various international radio broadcasting companies. As of Feb. 13, 2008, the company sold 217 non-core radio stations. In March 2008, the company announced that it has completed the sale of its Television Group to Newport Television LLC. EMPRESAS ICA: Earns MXN93 Million in 2008 Second Quarter -------------------------------------------------------- Empresas ICA S.A.B. de C.V. has recorded consolidated net income of MXN93 million in 2008 second quarter, as compared to MXN227 million in 2007 second quarter. For the second quarter of 2008, majority net income was MXN64 million, as compared to MXN121 million in the prior-year period. During the second quarter, revenues increased 10%, costs rose 12%, and general and administrative expenses increased 8%, as compared to the prior-year period. The company had MXN6.23 billion of net revenues for 2008 second quarter compared to MXN5.65 billion of net revenues for 2007 second quarter. As a percentage of revenues, general and administrative expenses fell to 9.3% of revenues from 9.5% in the prior-year period. Backlog as of the end of the second quarter of 2008 reflects a recovery in contracting for civil construction projects and concessions. However, clients in both the public and private sectors have delayed contracting new industrial projects. Industrial construction recorded the net effect of a MXN62 million increase in costs, incurred principally as a result of the review of the expected profitability of the Chicontepec I project upon completion. The rising cost of steel and other raw materials is affecting the profitability of certain fixed price projects, particularly in Civil Construction. Rising prices for electricity and contracted services are also affecting Airports margins. The appreciation of the exchange rate affected contract values and revenues from projects denominated in dollars. Thirty percent of backlog is denominated in foreign currency, principally dollars. This effect was partially offset by the exchange rate effect on dollar denominated debt, which accounted for 29% of ICA's total debt as of June 30, 2008. Total debt as of June 30, 2008, was MXN13.47 billion, an increase of MXN2.01 billion as compared to June 30, 2007. The increase reflects new borrowings to finance projects under construction. Net debt was MXN7.47 billion. Empresas ICA, S.A.B de C.V. -- http://www.ica.com.mx/-- the largest engineering, construction, and procurement company in Mexico, was founded in 1947. ICA has completed construction and engineering projects in 21 countries. ICA's principal business units include civil construction and industrial construction. Through its subsidiaries, ICA also develops housing, manages airports, and operates tunnels, highways, and municipal services under government concession contracts and/or partial sale of long-term contract rights. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 20, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Empresas ICA S.A.B. de C.V. S&P said the outlook is stable. HERCULES OFFSHORE: Books US$20 Million Net Income in 2nd Quarter ---------------------------------------------------------------- Hercules Offshore, Inc., has reported net income of US$20 million, before separation related charges, on revenues of US$270.8 million for the second quarter 2008, compared to net income of US$24.2 million, before charges, on revenues of US$99 million for the second quarter 2007. Net income for the quarter ended June 30, 2008, inclusive of US$3.6 million, after tax, in separation related costs, was US$16.4 million. Net income for the second quarter of 2007 was US$23.5 million, which includes US$0.7 million, after tax, in severance-related costs and a net loss related to the early retirement of debt and an interest rate swap termination. Sequentially, the company's second quarter diluted earnings per share, before non-recurring items, were US$0.17 higher than the first quarter 2008 diluted earnings per share of US$0.05. Hercules Offshore Chief Executive Officer and President, John Rynd stated, “Our second quarter results reflect improving market conditions for our Domestic Offshore and Domestic Liftboat segments. The domestic offshore environment is expected to remain positive as current commodity prices are driving attractive well economics and higher capital spending by our customers.” “In keeping with our long-stated strategy, we are also continuing to expand our international operations. We are mobilizing the Amberjack liftboat to the Middle East from the U.S. Gulf of Mexico and we anticipate operations on this vessel will commence in the fourth quarter. This represents the third additional liftboat we will put into service internationally this year, in addition to the four additional jackups that we previously announced, providing substantial growth in our earnings over the next two years,” Mr. Rynd continued. Offshore Highlights During the second quarter 2008, Domestic Offshore revenues increased to US$97.4 million from US$28.3 million in the second quarter 2007 as a result of additional operating days stemming from the acquisition of TODCO in July 2007. While utilization increased to 79.6% from 68.7%, it was offset by a decline in average revenue per day per rig to US$60,445 from US$75,531 in the second quarters of 2008 and 2007, respectively. Domestic Offshore generated operating income of US$23.6 million for the second quarter 2008 compared to operating income of US$10.1 million in the second quarter of 2007. International Offshore revenues were US$74.2 million for the second quarter 2008 compared with US$19.6 million for the prior year period. This increase was also largely due to increased operating days resulting from the TODCO acquisition as well as the activation of the Hercules 260. Average revenue per day per rig for the second quarter 2008 was US$115,556 compared with US$109,719 in the corresponding period of 2007, while utilization declined to 87.7% from 98.4% for the same periods largely due to downtime on the Hercules 110. Average operating expense per day per rig increased by US$10,662 to US$50,967 in the second quarter 2008 from US$40,305 in the corresponding period of the prior year due to a significant increase in the amortization of mobilization expense and rental expense that is rebilled to the customer. Operating income increased by over 175% to US$27.4 million in the second quarter of 2008. Inland Highlights Inland recorded revenues of US$40.3 million and an operating loss of US$2.9 million during the second quarter 2008. Average revenue per day per rig was US$39,589 on utilization of 68.4%. The company did not have inland barge operations prior to the third quarter of 2007. Liftboat Highlights Domestic Liftboats revenues declined to US$22.3 million for the second quarter 2008, from US$37.2 million in the second quarter 2007 due to a reduction in demand which adversely impacted both dayrates and utilization. Average revenue per day per liftboat declined to US$9,030 in the second quarter of 2008 from US$12,482 in the same period of 2007 while utilization decreased to 63.7% from 71.2% in the same periods, respectively. Operating income for the second quarter 2008 was US$3 million compared with US$14.8million in the second quarter of the previous year. International Liftboats revenues increased US$6.4 million to US$20.3 million in the second quarter 2008 from US$13.9 million in the second quarter 2007 due to strong demand in West Africa and the completion of the reactivation of the Black Jack vessel. Average revenue per day per liftboat increased by 38% in the second quarter 2008 to US$15,255 from US$11,090 in the prior year period on slightly higher utilization. Operating Income increased to US$6.8 million in the second quarter of 2008 from US$3.5 million in the same prior year period. Other Highlights The Other segment includes the results of the company's wholly- owned subsidiary, Delta Towing, and the results associated with the completion of the fourth quarter sale of its land rigs, which were acquired as part of the TODCO acquisition. This segment recorded operating income of US$2.3 million on revenues of US$16.4 million in the second quarter 2008. Balance Sheet Highlights At June 30, 2008, the company's balance sheet reflected total assets of US$3.9 billion, including cash and equivalents totaling US$98 million, total debt of US$1.2 billion and stockholders' equity of US$2 billion. During the quarter, the company improved liquidity significantly through an increase in the commitments on its revolving credit facility to US$250 million from US$150 million and the issuance of US$250 million in principal amount of 3.375% Convertible Senior Notes due 2038. The notes will be convertible under certain circumstances into shares of Hercules Offshore common stock at a rate which is equal to a conversion price of approximately US$50.08 per share. The company utilized approximately US$49.2 million of the proceeds from the offering to repurchase 1.45 million shares of its common stock and US$100 million to repay amounts outstanding under its revolving credit facility. Headquartered in Houston, Texas, USA, Hercules Offshore, Inc. (Nasdaq: HERO) provides shallow-water drilling and lift boat services to the oil and natural gas exploration and production industry in the United States Gulf of Mexico and internationally. It operates a fleet of 35 jackup rigs, 27 barge rigs, 65 liftboats, three submersible rigs, one platform rig and a fleet of marine support vessels. Its services are organized in four segments, Domestic Contract Drilling Services, International Contract Drilling Services, Domestic Marine Services and International Marine Services. The company's Domestic Contract Drilling Services and Domestic Marine Services are conducted in the United States Gulf of Mexico, its International Contract Drilling Services are conducted offshore Qatar and India, and its International Marine Services are conducted in West Africa. The company also has operations in Venezuela, Trinidad, and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on May 5, 2008, Standard & Poor's Ratings Services has affirmed its 'BB' bank loan and recovery rating of '2' on the US$1.15 billion senior secured credit facilities of Hercules Offshore Inc., as well as its 'BB-' Corporate Credit Rating with stable outlook. The recovery rating of '2' indicates S&P's expectation of substantial (70% to 90%) recovery in the event of a payment default. METROFINANCIERA: Collateral Slide Cues Fitch to Cut Ratings ----------------------------------------------------------- Fitch Ratings has downgraded five trusts backed by construction bridge loans originated and serviced by Metrofinanciera, a Mexican Sofom. These trusts include four National Scale Rated local trusts and one cross-border trust. The five trusts remain on Rating Watch Negative as Fitch continues to monitor the overall construction environment in Mexico, the performance of the trusts, and the financial condition of Metrofinanciera. The rating actions include the downgrade of these five senior notes, as well as the three mezzanine notes of the respective trusts: -- Series METROCB03-2 to 'A(mx)' from 'AAA(mx)'; -- Series METROCB03-3 to 'A(mx)' from 'AAA(mx)'; -- Series METROCB07 to 'A(mx') from 'AAA(mx)'; -- Series METROCB07-2 to 'BB(mx)'from 'A(mx)' ; -- Series METROCB07-3 to 'A(mx)' from 'AAA(mx)'; -- Series METROCB07-4 to 'BB(mx) 'from 'A(mx)'. -- Loan Trust #650 2007-1 Notes 'BB from BBB'; -- Loan Trust #650 2007-1 Notes 'A (mx)' from 'AAA(mx)'; -- Loan Trust #650 Class B Notes to 'BB(mx)' from 'A(mx)'. The downgrades reflect an ongoing deterioration in collateral caused by a slowdown in the Mexican housing and construction market. Collateral performance of the various trusts have shown high levels of delinquencies, increases in restructured loans, and a general slowdown in amortizations of the underlying loan collateral over the past 12 months. Additionally, Fitch believes the revolving nature of these trusts as well as the potential need for future support ties these transactions more closely to the credit quality of Metrofinanciera, which is currently rated 'B+' and 'BBB(mex)'. Fitch has seen a general slowdown in the Mexican housing sector due to a contraction in sales caused by imbalances between supply and demand among certain regions and states. Metrofinanciera has indicated its intention to support these transactions through the substitution of non-performing collateral. Fitch will continue to monitor Metrofinanciera's action plan for the various trusts and will consider future rating actions as appropriate. Headquartered in Monterrey, Mexico, Metrofinanciera, S. A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad no Regulada -- http://www.metrofinanciera.com.mx/-- specializes in real estate credit and housing development in Mexico. Founded in 1996 in Monterrey, it offers financial services and consulting for all phases of real estate projects: housing construction, advance sales, public works and commercialization. The company also offers products in life, damage and unemployment insurance. * TULTITLAN: Moody's Assigns Ba3 Rating for MXN164 Million Loan --------------------------------------------------------------- Moody's has assigned A3.mx (Mexican National Scale) and Ba3 (Global Scale) ratings to Tultitlan's Ps. 164 million loan from Banorte. The loan has a final maturity of 10 years and is payable under the terms of a loan contract and a Trust Agreement (16331-5) established with Banco Nacional de Mexico S.A. as trustee. Interest is paid monthly at a fixed rate, while principal will be paid in 112 monthly installments starting in August 2008. As payment on the loan, the municipality has pledged a portion of its federal participation revenue, which is expected to result in adequate debt service coverage. The loan is a direct and binding obligation of the Municipality of Tultitlan. The loan ratings now assigned incorporate the municipality's own credit standing, as well as the credit enhancements provided by the trust structure and supporting contractual obligations. The ratings assigned herein are based on documentation received by Moody's as of the rating assignment date. Moody's will review all of the definitive documents governing the loan payable under the trust agreement. In the event that the final documentation differs significantly from the drafts submitted to us, Moody's will assess what effects these differences may have on the rating and act accordingly. The loan ratings are based on the following factors: 1. The municipality's issuer rating of Baa1.mx (National Scale Rating) and B1 (Global Scale, local currency) that reflect improving financial performance and debt profile, after years of posting recurrent and sizable budgetary deficits; weak financial position marked by the accumulation large accounts payable to the state pension system and other suppliers; poor financial situation of the municipal water company (APAST); and, challenges posed by a narrow economic base with large infrastructure needs. 2. To service this loan the municipality has pledged the flows to 30% of its federal participation revenue: a pledge that is expected to result in sufficient debt service coverage (DSC) even under severe stress scenarios. Previously, the municipality pledged participaciones as a guarantee for obligations with the state pension system and the state government. These obligations are paid directly by the municipality, and in the event of non-payment, the participaciones could be used first to pay out this debt. After discounting these amounts, on average DSC on the debt service for the loan is still expected to reach 2.9 X. The pledge of participation revenue, however, does not include a minimum amount of Pesos to be transferred to the trust, a feature sometimes used to mitigate a potential disruption caused by fluctuations in participation revenues. 3. The loan's credit quality is enhanced by the use of a paying trust to which the municipality has pledged a portion of the flow of its federal participation revenues. With funds transferred directly by the State to the trust in accordance with an irrevocable instruction issued by the municipality, the lender's interests are protected. The pledge of a portion of the revenue of the municipality's federal participation revenue, though weaker than a pledge of the rights to receive the revenue, still provides security above that of the issuer given that the municipality does not have control of the asset (participaciones) prior to their being deposited in the trust. One weakness in the legal documentation (the trust and contract) is the lack of definitions of certain important terms, which could lead to different interpretations as to the rights and obligations of the different parties. 4. As mentioned above, prior to this transaction, the municipality had entered into debt agreements with the state pension system (ISSEMYM) and the state of Mexico, whereby the municipality pledged its participation revenue to pay the debt with these two institutions. A weak point in this transaction is that the pledge to these two institutions could be interpreted as invalidating the current pledge of participation revenue to pay the loan from Banorte, given their prior claim and registration in the state's debt registry. This is somewhat mitigated by the fact that the flow of funds is sufficient to pay all of the obligations related to the pledged participaciones. However, in the event that the municipality failed to pay ISSEMyM, and the institution laid first claim on the municipality's participaciones, the remaining amount is expected to be insufficient to meet the covenant in the Banorte loan of maintaining debt service coverage higher than 1.66 times until final maturity. 5. The availability of reserves for the payment of interest and principal equal to three months of debt service requirements offers adequate protection to creditors from unexpected fluctuations in the flow of funds or timing of the transfer of funds. This reserve will be fully funded by the end of the sixth month and will be maintained until maturity. ======= P E R U ======= GRAN TIERRA: To Consolidate Business With Solana Resources Ltd. --------------------------------------------------------------- Gran Tierra Energy Inc. and Solana Resources Limited have entered into a definitive agreement providing for the business combination of both companies. The transaction is expected to create an exploration and production company with a significantly increased operating scale and balance sheet. Gran Tierra President and Chief Executive Officer, Dana Coffield will continue as the President and CEO of the combined company, while Solana President and CEO, J. Scott Price will join the board of directors of the combined company. The board of directors will be comprised of seven members including the current directors of Gran Tierra: Jeffrey Scott, Walter Dawson, Verne Johnson, Nick Kirton, and Mr. Coffield, as well as Mr. Price, and the current Chairperson of the Solana board of directors, Mr. Ray Antony. Gran Tierra board of directors chairperson, Mr. Scott will maintain his position. Commenting on the transaction Mr. Coffield stated, “We are very pleased to make this announcement and we expect the transaction will create a much more substantial company in a consolidating global industry while preserving Gran Tierra's operating leadership. The combination creates a company with a 100% working interest in one of the most important oil discoveries in Colombia in recent years, the Costayaco field. The anticipated production and cash flow growth from Colombia will fund continued exploration on the resulting company's combined land position, in addition to increasing the capability to undertake much larger and material new venture initiatives in the future.” Mr. Price stated, “The combination of the two companies will not only consolidate a premium light oil asset in Colombia, but will also launch a substantive, well financed, South American focused entity with an enviable land position and a portfolio of opportunities across the risk spectrum. We believe this transaction will result in significant value accruing from the asset consolidation and resultant economies of scale.” Summary of the Transaction Under the terms of the Agreement, each Solana shareholder will receive either (i) 0.9527918 of a common share of Gran Tierra or; (ii) 0.9527918 of a common share of a Canadian subsidiary of Gran Tierra (Exchangeable Share) for each common share of Solana held, which represents a premium of approximately 14.1 % to the 20 day weighted average trading price to July 28, 2008 of the Solana shares on the TSX Venture Exchange and Gran Tierra's July 28, 2008, closing price on the Toronto Stock Exchange of CAD5.73. The shares of the Canadian subsidiary of Gran Tierra: (i) will have the same voting rights, dividend entitlements and other attributes as Gran Tierra common stock; (ii) will be exchangeable, at each shareholder's option, on a one-for-one basis, into Gran Tierra common stock; and (iii) subject to compliance with the listing requirements of the oronto Stock Exchange, will be listed on the Toronto Stock Exchange. The Exchangeable Shares will automatically be exchanged for Gran Tierra common stock five years from closing, and in certain other events. The transaction will be completed pursuant to a statutory plan of arrangement pursuant to the Business Corporations Act (Alberta). Upon completion of the transaction, Solana will become an indirect wholly-owned subsidiary of Gran Tierra. The plan of arrangement will be accomplished on a tax deferred basis in Canada, but may be a taxable transaction for non-Canadian holders of Solana securities. On a fully diluted basis, upon the closing of the plan of arrangement, Solana securityholders will own approximately 49% of the combined company and Gran Tierra securityholders will own approximately 51% of the combined company. The proposed transaction is subject to regulatory, stock exchange, court and shareholder approvals. Gran Tierra and Solana expect to hold shareholder meetings in October 2008. A joint proxy statement and management information circular is expected to be mailed to shareholders of the companies in September 2008. The parties have agreed to pay each other a termination fee of US$21 million in certain circumstances and an expense reimbursement fee of US$1.5 million in certain other circumstances. Complete details of the plan of arrangement are set out in the agreement, which will be filed by Solana on SEDAR (http://www.sedar.com)and Gran Tierra on SEDAR and with the Securities and Exchange Commission (http://www.sec.gov). Following the offer becoming or being declared unconditional in all respects and as soon as it is able to do so, Gran Tierra will procure that Solana will apply to the London Stock Exchange for the cancellation of the admission of Solana shares to trading on AIM. A notice period of not less than 20 business days prior to the cancellation of trading will take effect upon the offer becoming or being declared unconditional in all respects. Cancellation of admission to trading on AIM is likely to reduce significantly the liquidity and marketability of any Solana shares in respect of which the offer has not been accepted. Gran Tierra will also seek to have the Solana shares delisted from the TSX Venture Exchange and to cease Solana being a reporting issuer under applicable Canadian securities laws. Highlights of the Combined Entity Management of Gran Tierra and Solana expect that the combination will provide many benefits, including: -- Creation of a stronger South American oil producer with significant producing assets in Colombia; -- Significant exploration portfolio properties in each of Colombia, Argentina and Peru; -- Consolidation of 100% of the working interest in the Costayaco field (95% economic interest excluding government royalties), a major light oil discovery made in Colombia in 2007, currently under delineation and development; -- An entity with a pro-forma enterprise value of approximately US$1.35 billion based on Gran Tierra's stock price on July 28, 2008, which is expected to result in enhanced liquidity and a more competitive cost of capital; and -- Strong pro-forma cash flows which are expected to allow the combined entity to internally finance the exploration and development of the Costayaco field, pursue other exploration opportunities on the combined company's large undeveloped land base in Colombia, Argentina and Peru, and pursue additional new venture growth opportunities. Key Pro Forma Operating and Financial Information for the Combined Entity Some of the key pro forma and financial metrics for the combined company include these: Estimated Combined 2008 Exit Production 15,000 boe/d Pro-forma enterprise value US$1.35 billion Fully diluted shares outstanding 268.3 million Pro-forma proven reserves 18.4 MMboe Pro-forma land base: Colombia 1.5 million acres Argentina 1.3 million acres Peru 3.4 million acres Solana Chief Operating Officer Glenn Van Doorne, a Petroleum Geologist, and Gran Tierra President and CEO, Mr. Coffield also a Geologist, are the qualified persons who have reviewed the technical information contained in this news release. Advisors Blackmont Capital Inc. is acting as exclusive financial advisor to Gran Tierra with respect to the transaction and has verbally advised the board of directors of Gran Tierra that it is of the opinion, as of the date hereof, that the consideration to be offered by Gran Tierra pursuant to the proposed combination is fair, from a financial point of view, to Gran Tierra shareholders. Tristone Capital Inc. is acting as exclusive financial advisor to Solana with respect to the transaction and has verbally advised the board of directors of Solana that it is of the opinion, as of the date hereof, that the consideration to be received by Solana shareholders is fair, from a financial point of view, to Solana shareholders. About Gran Tierra Energy Headquartered in Calgary, Alberta, Canada, Gran Tierra Energy Inc. (OTC BB: GTRE.OB) -- http://www.grantierra.com/-- is an international oil and gas exploration and production company, incorporated and traded in the United States and operating in South America. The company holds interests in producing and prospective properties in Argentina, Colombia, and Peru. At Dec. 31, 2007, the company's balance sheet showed total assets of US$112.79 million, total long term liabilities of US$36 million and total shareholders' equity of US$76.79 million. Successive Net Losses As reported in the Troubled Company Reporter on Jan. 4, 2008, the company disclosed in the regulatory filing that it “has a history of net losses”. The company said it expects to incur substantial expenditures to further its capital investment programs and the company's existing cash balance and cash flow from operating activities may not be sufficient to satisfy its current obligations and meet its capital investment commitments. According to the company, its ability to continue as a going concern is dependent upon obtaining the necessary financing to acquire, explore and develop oil and natural gas interests and generate profitable operations from its oil and natural gas interests in the future. ==================== P U E R T O R I C O ==================== CARRIBBEAN RESTAURANTS: Moody's Cuts Corp. Family Rating to Caa1 ---------------------------------------------------------------- Moody's Investors Service downgraded Caribbean Restaurants, LLC's (Caribbean) Corporate Family Rating to Caa1 from B3, Probability of Default rating to Caa1 from B3 and US$210 million senior secured credit facilities to B2 from B1. The rating outlook is stable. The downgrade of CFR to Caa1 reflects Moody's belief that Caribbean's declining operating performance in the past year such as sluggish same store sales and deteriorating cash flow generation will likely persist in the intermediate term, resulting in weaker credit metrics that are more commensurate with a Caa1 rating category. Moody's expects that the key contributing factors to the company's underperformance, such as recessionary economic conditions in Puerto Rico, a high inflationary environment and the ever-intensified competitions among quick service restaurants on the island, are likely to remain over the next 12-18 months, thus keeping the company from improving its performance and credit metrics within the rating horizon. The Caa1 CFR also incorporates Caribbean Restaurants' imminent refunding pressures as the existing credit facilities will expire within one year. In addition, the financial covenant cushion under its current credit agreement could become tight again later this year, potentially limiting access to its external source of liquidity. Given its current operating trend and tightening of the covenant level in the next 12 months, Moody's anticipates that Caribbean will face mounting pressures in meeting these covenants. In addition, the higher capital expenditure budget in FY2009, which Moody's views somewhat aggressive, could further constrain the company's already weak cash flow. The Caa1 CFR continues to incorporate the strong name recognition and leading position of Burger King brand in the Puerto Rico QSR segment, a seasoned management team and the company's exclusive development agreement within Puerto Rico, offset by its geographic concentration and limited scale and revenue base. The B2 rating on the senior secured credit facilities reflects the facilities' perfected first lien priority security interest in substantially all the assets of the company as well as guarantee provided by its parent and subsidiaries. The B2 rating on the facilities benefits from their priority position in the capital structure relative to its substantial junior debt obligation such as US$73.5 million subordinated notes, lease obligation and trade payables. The stable outlook incorporates Moody's view that the operational performance could further deteriorate in the near to medium term. That said, Caribbean Restaurants' leading market position in the QSR segment in Puerto Rico combined with the management's extensive experience in operating in a recessionary environment, should help the company stabilize its operating performance. The outlook also anticipates that the company will maintain adequate liquidity such as a full access to its revolving credit facility. The rating could be under downward pressure if the company's operating and financial metrics were to experience further erosion and its liquidity were to deteriorate, including negative free cash flow for an extended period. The rating action is as follows: Caribbean Restaurants, LLC Ratings downgraded: * Corporate Family Rating -- to Caa1 from B3 * Probability of Default Rating -- to Caa1 from B3 * US$210 million senior secured credit facilities due July 2009 -- to B2 (LGD3, 32%) from B1(LGD3, 32%) Rating outlook: stable About Caribbean Restaurants Based in San Juan, Puerto Rico, Caribbean Restaurants, LLC, through an exclusive territorial development agreement with Burger King Corporation, is the sole franchisee of Burger King restaurants in Puerto Rico with approximately 172 units as of fiscal year-end April 30, 2008. MMM HOLDINGS: Moody's Upgrades Senior Debt Rating to B3 ------------------------------------------------------- Moody's Investors Service has upgraded the senior debt ratings of MMM Holdings, Inc., NAMM Holdings, Inc., and Preferred Health Management Corporation to B3 from Caa1 following the announcement that the company has renegotiated the terms of its credit facility. The rating agency also upgraded MMM's corporate family rating to B3 from Caa1 and the insurance financial strength ratings of MMM Healthcare and PrimeCare Medical Network to Ba3 from B1. The outlook on the ratings is stable. This rating action concludes the review that was announced on June 17, 2008 when Moody's placed the ratings under review with direction uncertain. At that time, the rating agency indicated that the focus of its review would be the progress and/or terms of any renegotiation of the credit facility, as well as, the sustainability of recent earnings improvement and membership growth. According to the rating agency, the terms of the amendment and waiver to MMM's credit agreement include the immediate prepayment of US$50 million of debt, the amendment of certain financial covenants, and the lenders waiving compliance by MMM of all past defaults related to violation of covenants. Previously, Moody's stated that although the company was in compliance with all financial covenants entering 2008, the combination of the decline in medical membership experienced during 2007, the lower than expected debt amortization that occurred in 2007, and the tight Debt to EBITDA covenant limit in 2008 would make it difficult for MMM to be in compliance with this covenant by the end of 2008. Moody's commented that the newly negotiated terms and the US$50 million prepayment have significantly lessened this threat. Moody's also noted that although the new terms of the credit agreement require MMM to incur greater interest expense and pay an amendment fee, these were not considered onerous. The rating agency noted that MMM's financial results through May 2008 indicate that the company continues to make progress in addressing the high medical utilization and costs in its Puerto Rico operations. In particular, MMM has reversed the membership decline it experienced in 2007 with membership gains during the first five months of 2008. The company has also improved its operating results to historical norms, with medical loss ratios at or below 82%. According to Moody's, although the company was in technical default of some of the financial covenants during 2007, the company continued to make all required principal and interest payments, including an excess principal payment of approximately US$20 million made on March 28, 2008. Moody's said that if MMM maintains net income margins above 3%, demonstrates net membership growth into 2009, maintains debt to EBIT below 3 times and EBIT interest coverage above 4 times, and is able to improve its risk based capital on a sustained basis of at least 100% CAL, then the ratings may be upgraded. However, if there is deterioration in MMM's liquidity profile, a membership loss of 25% or more, if debt to EBIT increases above 4 times or if there is a breach in any of the financial covenants in its credit agreement, then the ratings will be downgraded. The following ratings were upgraded with a stable outlook: * MMM Holdings, Inc. -- senior secured debt rating to B3 from Caa1; corporate family rating to B3 from Caa1; * NAMM Holdings, Inc. -- senior secured debt rating to B3 from Caa1; * Preferred Health Management Corporation -- senior secured debt rating to B3 from Caa1; * MMM Healthcare, Inc. -- insurance financial strength rating to Ba3 from B1; * PrimeCare Medical Network, Inc. -- insurance financial strength rating to Ba3 from B1. MMM Healthcare offers Medicare Advantage products exclusively to eligible participants in Puerto Rico. NAMM is a medical management company that operates in California and Illinois. Its regulated operating subsidiary, PrimeCare Medical Network, Inc., consists of 10 owned IPAs in Southern California that contract with major health care benefit companies on a capitated basis to provide medical care to commercial and Medicare members. About Aveta, Inc. Aveta, Inc., the parent company of MMM, PHMC and NAMM, is a privately-owned company incorporated in Delaware and headquartered in Fort Lee, New Jersey. As of March 31, 2008, Aveta (as Aveta Holdings, LLC) reported stockholders' equity of (US$12) million and approximately 197,500 Medicare members. For the first three months of 2008, total revenues were US$485 million. About MMM Holdings MMM Holdings Inc., through it two main operating subsidiaries MMM Healthcare and Preferred Medical Choice, Inc., is the largest provider of Medicare Advantage products in Puerto Rico, with over 200,000 members as of Sept. 30, 2006. MMM Healthcare and Preferred Medical service in excess of 60% of the Medicare Advantage enrolled population in Puerto Rico and account for approximately 80% of Aveta's operating earnings. R&G FINANCIAL: Final Hearing For Proposed Settlement Is Sept. 16 ---------------------------------------------------------------- R&G Financial Corporation reported that a final settlement hearing has been set in the U.S. District Court for the Southern District of New York for approval of the company's proposed settlements of the shareholder class action and shareholder derivative litigation filed against the company in 2005. The company previously announced the class action and derivative settlements on March 3, 2008. The settlement hearing will take place on Sept. 16, 2008, at 3:00 p.m. at the United States District Court for the Southern District of New York, 500 Pearl Street, Courtroom 14C, New York, New York. Persons interested in receiving a copy by mail of the Notice of Proposed Settlement of Stockholder Derivative Action and Settlement Hearing issued by the company may contact the settlement administrator at: In re R&G Financial Corporation Derivative Litigation c/o Heffler, Radetich & Saitta LLP P.O. Box 1200 Philadelphia, PA 19105-1200. Telephone: 215-665-1191 Headquartered in San Juan, Puerto Rico, R&G Financial Corp. (PNK: RGFC.PK) -- http://www.rgonline.com/-- is a financial holding company with operations in Puerto Rico and the United States, providing banking, mortgage banking, investments, consumer finance and insurance through its wholly owned subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage Corporation, Puerto Rico's second largest mortgage banker, R-G Investments Corporation, the company's Puerto Rico broker- dealer, and R-G Insurance Corporation, its Puerto Rico insurance agency. At June 30, 2006, the company operated 37 bank branches in Puerto Rico, 36 bank branches in the Orlando, Tampa/St. Petersburg and Jacksonville, Florida and Augusta, Georgia markets, and 44 mortgage offices in Puerto Rico. * * * As reported in the Troubled Company Reporter-Latin America on July 18, 2008, R&G Financial Corporation reported that its wholly-owned Puerto Rican mortgage subsidiary, R&G Mortgage Corporation and R-G Premier Bank, and its wholly-owned chartered commercial bank, R-G Premier Bank, have received notices from the Federal Home Loan Mortgage Corporation of immediate termination of their respective eligibility to sell mortgages to and service mortgages for Federal Home. Federal Home indicated that it has taken these actions due to its concerns regarding the entities' ability to continue to act as servicer and to meet their obligations to Federal Home, among other reasons. TRADEWINDS AIRLINES: Files for Bankruptcy in Florida ---------------------------------------------------- TradeWinds Airlines Inc. has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code, before the U.S. Bankruptcy Court for the Southern District of Florida in Miami, due to rising fuel, maintenance costs, and declining demand, various sources report. The company listed assets of between US$1 million and US$10 million and debts of between US$10 million and US$50 million, the reports say. “[The company is] suffering from the same macro-economic problems as other airlines, including the cost of fuel and demand going down,” a person familiar with the matter said. “[It] is actually looking at several different strategies for reorganization. It's our intention to identify a bankruptcy exit strategy within the next 60 days,” this person relates. According to Bloomberg News, other airlines who filed for bankruptcy earlier this year includes: -- Aloha Airgroup Inc.; -- ATA Airlines Inc.; -- Skybus Airlines Inc.; -- Frontier Airlines Holdings Inc.; and -- Eos Airlines Inc. “[The company] faced the perfect storm of adverse market conditions,” Bloomberg quoted Jeff Conry, chief executive officer of TradeWinds, as saying. “Fuel costs were at an all- time high, capital and maintenance expenditures continued to increase, and liquidity remained impaired.” TradeWinds Airlines, which is 77% owned by Watkins Aviation LLC, has at least US$30 million in secured debt, Bloomberg notes. The company owes approximately US$5.6 million in claims to its unsecured creditors, the report adds. TradeWinds Airlines told the Court that it intends to reject five leased 747s aircrafts of Boeing Co. that would save the company roughly US$1.7 million per month, Bloomberg says. Scott Baena, Esq., of Bilzin Sumberg in Miami, represents the company. Reuters' Bill Berkrot reports that TradeWinds Airlines sued George Soros on June 30, 2008, seeking to recover US$54.9 million judgment against C-S Aviation Services Inc., which is controlled by his business partner, Pernendu Chatterjee. The suit asserted that C-S Aviation was grossly undercapitalized for the purpose of defrauding potential judgment creditors, Mr. Berkrot says. About TradeWinds Airlines Headquartered at the Triad International Airport in Greensboro, North Carolina, TradeWinds Airlines LLC -- http://www.tradewinds-airlines.com/-- operates A300-B4F freighter aircraft for domestic and foreign customers. The company has operations at Miami International Airport and in Puerto Rico. TRADEWINDS AIRLINES: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: TradeWinds Airlines, Inc. 5500 Northwest 36th Street, Room 586 Miami, FL 33122 Bankruptcy Case No.: 08-20394 Related Information: Jeffrey Conry, president, filed the petition on the Debtor's behalf. Chapter 11 Petition Date: July 25, 2008 Court: Southern District of Florida (Miami) Judge: A. Jay Cristol Debtor's Counsel: Scott L Baena, Esq. 200 South Biscayne Boulevard 2500 Miami, FL 33131 Tel: (305) 350-2403 (sbaena@bilzin.com) Estimated Assets: US$1 million to US$10 million Estimated Debts: US$10 million to US$50 million A list of the Debtor's largest unsecured creditors is available for free at http://bankrupt.com/misc/fasb08-20394.pdf ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Delays Project With Enarsa -------------------------------------------------- El Universal reports that Petroleos de Venezuela SA has postponed its planned joint venture with Argentine energy firm Enarsa. According to El Universal, Petroleos de Venezuela and Enarsa had planned to set up a joint network of 600 gas stations all over Argentina. According to reports in Buenos Aires, two outlets of the joint venture will be transferred to Petroleos de Venezuela. El Universal relates that Venezuelan President Hugo Chavez disclosed plans of launching the outlets with a US$1.5 billion investment in 2005. The project was postponed due to different views and ways of management and low profitability of fuels in Argentina, news daily Critica states, citing sources from Enarsa. 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. * * * As reported in the Troubled Company Reporter-Latin America on April 28, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Petroleos de Venezuela S.A. S&P said the outlook is stable. 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. * PricewaterhouseCoopers Eyes Hard Times for Bermudan Insurers -------------------------------------------------------------- PricewaterhouseCoopers expects Bermudan insurers to face a difficult road ahead. According to the latest Bermuda market survey by PricewaterhouseCoopers, hitting targets in a soft cycle is a huge challenge for CEOs but the emergence of a series of other less-anticipated dislocations in the form of the credit crisis, higher inflation, and a global business slowdown is making this phase of business very hard. The biennial survey asked Bermuda industry CEOs to update the top five issues on their agendas in 2008. With a downturn in the underwriting cycle and unpredictable economic conditions, the environment is very different to 2007. Caroline Foulger, partner at PricewaterhouseCoopers, said, “Two years on from our last survey, the future road for reinsurers is much less certain. A sustained soft market, fall-out spreading from the credit crunch and increasing competition for available talent are just a few of the challenges they expect. Companies are actively looking beyond their 2006 and 2007 business franchises to remove the current pressure from share price and sustain underlying shareholder value.” Number one in the top five issues revealed in the survey is cycle management and underwriting discipline, which has taken on added significance in the softer rating environment of 2008. In 2007, Bermuda companies endeavoured to preserve the top line ahead of the cycle turn; this year the emphasis is on rate adequacy. Although CEOs broadly agree that the downturn will be no more severe than in previous cycles, they generally expect the market to show year on year premium rate cuts until 2010, across all business classes. Second in the poll is new markets. Diversifying product lines has moved up the CEO agenda, partly as a response to the market entering a new, softer phase. The Class of 2005 'start-ups' are moving beyond their original products as their business models evolve. Number three of the top five issues is managing the effects of turbulence in the financial markets. Few companies have escaped the sub-prime crisis totally unscathed and the unprecedented events, coupled with the ensuing credit crunch, clearly concerned CEOs. New geographical markets ranked fourth. The desire for increasing diversification is reflected in CEOs pushing new geographical markets higher up the agenda. Bermuda companies have newly entered markets from the UK to the US, Continental Europe to Asia as they look for growth in a softening market. In particular, after much market focus on inversions from London to Bermuda, a market trend has developed, particularly in respect of the Class of 2005 reinsurers, to establish insurance presence within Lloyd's. Companies with previously established insurance and reinsurance units are looking further afield. Number five of the top five issues is effective monitoring of aggregations of exposure. The issue dropped in importance among CEOs in 2008 compared to 2006, suggesting that companies feel that they have addressed many of the issues exposed by hurricanes Katrina, Rita, and Wilma. Certainly, most companies consider that they improved their expertise in this area with better tools and the newer start-ups have been investing heavily in model science. The perceived improvements to these models can only be truly assessed in the event of a large catastrophe. The survey highlighted other issues challenging CEOs in 2008, including effective investment management and performance, and capital management and allocation. Commenting on the London Market, Andrew Kail, UK insurance leader at PricewaterhouseCoopers LLP said, “There is no doubt that within the London Market, companies are facing very similar challenges to those highlighted in our Bermuda market survey. Some commentators are reporting that underwriting returns continue to remain attractive in certain sectors but focus is swiftly switching towards managing the cycle and delivering a soft landing. There is no escaping the challenges of the investment and credit markets, and reduced investment returns add to the pressure of delivering disciplined underwriting performance in the softer cycle.” Ms. Foulger concluded, “Bermuda companies have an enviable reputation for adapting to change in uncertain times. But how they weather a sustained soft market in a time of world economic instability and slowdown will be interesting to see.” * Upcoming Meetings, Conferences and Seminars --------------------------------------------- July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Aug. 20-24, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Captain Cook, Anchorage, Alaska Contact: http://www.nabt.com/ Aug. 26, 2008 TURNAROUND MANAGEMENT ASSOCIATION Do's and Don'ts of Investing in a Turnaround Citrus Club, Orlando, Florida Contact: http://www.turnaround.org// Sept. 4-5, 2008 AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Four Seasons, Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 17, 2008 TURNAROUND MANAGEMENT ASSOCIATION Real Estate / Condo Restructuring Panel Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org// Sept. 24-26, 2008 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 15th Annual Fall Conference Scottsdale, Arizona Contact: http://www.ncbj.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Desert Ridge Marriott, Scottsdale, Arizona Contact: http://www.iwirc.org/ Sept. 30, 2008 TURNAROUND MANAGEMENT ASSOCIATION Private Equity Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org// Oct. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Luncheon - Chapter 11 University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ Oct. 28, 2008 TURNAROUND MANAGEMENT ASSOCIATION State of the Capital Markets Citrus Club, Orlando, Florida Contact: http://www.turnaround.org// Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Oct. 30 & 31, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Physicians Agreements and Ventures Contact: 800-726-2524; 903-595-3800; http://www.renaissanceamerican.com/ Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Interaction Between Professionals in a Restructuring/Bankruptcy Bankers Club, Miami, Florida Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; 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http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES New 'Red Flag' Identity Theft Rules Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergersthe New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Todays Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite Corporate Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ *********** 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. Marie Therese Profetana, 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 * * *