/raid1/www/Hosts/bankrupt/TCRLA_Public/080813.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
Wednesday, August 13, 2008, Vol. 9, No. 160
Headlines
A R G E N T I N A
CENTRAL TERMICA: Moody's Rates US$200 Mil. Proposed Notes at B2
CERAMICA ASTROS: Files for Bankruptcy Petition in Buenos Aires
DISTRIBUIDORA CARDIS: Claims Verification Is Until Oct. 16
MEWAR Y ASOCIADOS: Files for Reorganization in Argentine Court
RESTAURANT EXPRESS: Claims Verification Deadline Is Oct. 27
TRANSPORTADORA DE GAS: Reports ARS55.4MM Second Qrtr. Net Income
TRANSPORTADORA DE GAS: Socotherm to Coat Steel Pipes
TRANSPORTADORA DE GAS DEL NORTE: Socotherm Will Coat Steel Pipes
* ARGENTINA: Dim Outlook for Oil & Gas Industries, S&P Predicts
* ARGENTINA: S&P Drops Long-Term Currency Ratings to B From B+
* ARGENTINA: S&P's Sovereign Rating Cuts Won't Affect Companies
* BUENOS AIRES: S&P Lowers Long-Term Global Scale Ratings to B
* MENDOZA PROVINCE: S&P Cuts Long-Term Global Scale Ratings to B
B E R M U D A
BLUEPONT LTD: Court Names John McKenna as Provisional Liquidator
DUKE COMMUNICATION: Proofs of Claim Filing Deadline Is Aug. 26
DUKE COMMUNICATION: Sets Final Shareholders Meeting for Sept. 16
FOSTER WHEELER: Biokinetics Bags Service Contract From Alcon Lab
SA SERVICES: Proofs of Claim Filing Deadline Is Aug. 26
S.A. SERVICES: Sets Final Shareholders Meeting for Sept. 16
SYNCORA HOLDINGS: Claude L. LeBlanc to Serve as Special Advisor
SYNCORA HOLDINGS: June 30 Shareholder's Deficit Is US$428.7 Mln
SYNCORA HOLDINGS: Paul S. Giordano to Resign as CEO on Aug. 15
B O L I V I A
COEUR D'ALENE: Hires Humberto Rada as President for SouthAm Unit
B R A Z I L
ADVANCED MICRO: Fitch Holds 'CCC/RR6' Sr. Unsecured Debt Rating
BANDEIRANTE ENERGIA: Moody's Reviews Ba2 Rating for Upgrade
BANCO NACIONAL: Breaks Record of US$79 Bil. Loans in June 2008
BANCO NACIONAL: Grants BRL128 Mil. Loan to Brasil Bioenergia
CEMIG DISTRIBUICAO: Moody's Puts Ba2 Issuer Rating Under Review
CEMIG GERACAO: Moody's Reviews Ba2 Rating for Likely Upgrade
COMPANHIA ENERGETICA: Moody's Reviews Ba2 CFR for Likely Upgrade
COMPANHIA PARANAENSE: Moody's Reviews Ba2/Ba1 Rtngs for Upgrade
DUKE ENERGY: Moody's Reviews Ba2 Rating for Possible Upgrade
ENERGIAS DO BRASIL: Moody's Reviews Ba2 CFR for Likely Upgrade
ENERGISA S.A.: Moody's Puts Ba3 CFR Under Review for Upgrade
ESPIRITO SANTO: Moody's Reviews Ba2/Ba3 Ratings for Upgrade
GLOBAL CROSSING: Offers Network Services to Norskan in Brazil
GRAN TIERRA: 2nd Quarter Net Income Increases to US$8.5 Million
RIO GRANDE: Moody's Reviews Ba2 Sr. Unsecured Rating for Upgrade
C A Y M A N I S L A N D S
BANKBOSTON TRUST: Sets Final Shareholders Meeting for Aug. 15
CRESCENT GLOBAL: Will Hold Final Shareholders Meeting on Aug. 15
CRESCENT VENTURE: Sets Final Shareholders Meeting on Aug. 15
HH SUPPLY: Deadline for Proofs of Claim Filing Is Aug. 15
PARMALAT SPA: Splits Ways With Murray Over Dairy Farmers Bid
SILICON LIGHT: To Hold Final Shareholders Meeting on Aug. 15
VILLA EMERALD: Proofs of Claim Filing Deadline Is Aug. 15
C O S T A R I C A
BROTHERS FUND: Creditors May Wait Up to 10 Years to Get Paid
G U A T E M A L A
AFFILIATED COMPUTER: S&P Affirms 'BB' Corporate Credit Rating
J A M A I C A
SUGAR COMPANY: Gov't Soothes Worries Over Infinity Takeover
M E X I C O
BLOCKBUSTER INC: Posts US$41.9 Mil. Net Loss in 2008 2nd Quarter
BLUE WATER: Amends Chapter 11 Plan; Will Liquidate Operations
BLUE WATER: To Close St. Clair, Michigan Facilities by August 29
GREAT PANTHER: Resources Increase at Topia Mine in Mexico
SEMGROUP LP: Hiland Companies Disclose US$13 Million Exposure
SEMGROUP LP: Paramount Energy Discloses Financial Exposure
P A N A M A
CHIQUITA BRANDS: Earns US$62.1 Million in 2008 Second Quarter
P U E R T O R I C O
DORAL FINANCIAL: Research Oracle Keeps Buy Rating on Firm
T R I N I D A D & T O B A G O
HINDU CREDIT: Attorney Says Court Wrong in Allowing Confiscation
V E N E Z U E L A
GRAHAM PACKAGING: June 30 Balance Sheet Upside-Down by US$726.8M
- - - - -
=================
A R G E N T I N A
=================
CENTRAL TERMICA: Moody's Rates US$200 Mil. Proposed Notes at B2
---------------------------------------------------------------
Moody's Latin America has assigned a B2 and an A2.ar Argentina
national scale rating to the proposed guaranteed notes of up to
US$200 million to be issued by Central Termica Loma de la Lata
S.A. This is the first time that Moody's has assigned a rating
to the company. The outlook is stable.
Proceeds of the issuance will primarily be used to fund the
expansion of the thermal unit at Loma La Lata, which will add
176 MW to existing plant capacity of 369 MW. The B2 and A2.ar
national scale ratings reflect the key risks and strengths of
Central Termica's project to close the cycle of its thermal
generation plant, but also take into consideration the
significance of the guarantee from the group holding company,
Pampa Holding S.A. Moody's notes that Pampa Holding S.A. is in
the process of changing its name to Pampa Energia S.A.
The ratings are principally constrained by the current high
level of uncertainty in the regulatory environment for electric
utilities operating in Argentina.
Central Termica's B2 local currency rating reflects its global
default and loss expectation, while the A2.ar national scale
rating reflects the standing of the company's credit quality
relative to its domestic peers. Moody's National Scale Ratings
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market
participants to better differentiate relative risks. NSRs in
Argentina are designated by the ".ar" suffix. Issuers or issues
rated A2.ar present above-average creditworthiness relative to
other domestic issuers. NSRs differ from global scale ratings in
that they are not globally comparable to the full universe of
Moody's rated entities, but only with other rated entities
within the same country.
The ratings take into consideration Moody's view that there is a
relatively high likelihood that the project will be able to sign
long term contracts for natural gas supply, based on the group's
track record with other projects, such as C.T. Guemes and
Ingentis. Contracted long term natural gas supply is important
because it will allow sales into the Energia Plus market or the
term market, in which tariffs are likely to be higher than the
spot market.
The lack of electricity sales contracts and possible delays in
project completion are also factors that constrain the ratings.
The construction period guarantee of the proposed notes from
Pampa Holding, the ultimate parent company, mitigates the risks
related to potential delays in project completion. In addition,
Moody's takes comfort from the fact that Pampa Holding's
guarantee could be extended until Central Termica is able to
reduce its exposure to the electricity spot market to below 50%
of total revenues.
Finally, the ratings consider the experience of the management
team at Pampa Holding and the group's expertise for the
development of energy projects in Argentina.
Moody's expects that the regulatory risks in Argentina will
improve gradually over the long term. However, in the short to
medium term, Moody's expects that the sector will continue to
face significant uncertainties for cost recovery and a low
degree of predictability of the timing and nature of changes in
the regulatory environment. The outlook for the ratings for the
company is stable due to the relatively straight forward nature
of the project and the parent guarantee.
The rating or outlook could be upgraded if the regulatory
environment improves and becomes more predictable. Central
Termica's ability to effectively implement its business
strategy, with a preponderance of sales to a well developed
Energia Plus market would also be important for an upgrade.
The rating or outlook could be downgraded if the financial
strength of Pampa Holding experiences a significant
deterioration. Deterioration in the regulatory environment,
with persistent cost increases which cannot be recovered by
utilities, could also lead to a downgrade.
Pampa Holding is one of the largest integrated electric
utilities company in Argentina. Pampa Holding controls Edenor,
the largest distribution utility with a 23% market share and
Transener, which has 95% of the high voltage transmission
market. Pampa Holding also controls generation plants with
approximately 1900 MW of installed capacity or about 8% of the
total market.
Headquarted in Neuquen, Argentina, Central Termica Loma de la
Lata S.A. is a thermoelectric power plant located above major
gas fields in the Neuquina's basin. The company has a current
installed capacity of 369 megawatts (MW), which is expected to
increase by 176 MW after the project completion.
CERAMICA ASTROS: Files for Bankruptcy Petition in Buenos Aires
--------------------------------------------------------------
The National Commercial Court of First Instance No. 25 in Buenos
Aires is studying the merits of Ceramica Astros SRL's request to
enter bankruptcy protection.
Ceramica Astros filed a ?Quiebra Decretada? petition following
cessation of debt payments.
The petition, once approved by the court, will transfer control
of the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.
Clerk No. 50 assists the court in this case.
The debtor can be reached at:
Ceramica Astros SRL
Guemes 3646
Buenos Aires, Argentina
DISTRIBUIDORA CARDIS: Claims Verification Is Until Oct. 16
----------------------------------------------------------
Hugo Abalo, the court-appointed trustee for Distribuidora Cardis
SA's bankruptcy proceeding, will be verifying creditors' proofs
of claim until Oct. 16, 2008.
Mr. Abalo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 24 in Buenos Aires, with the assistance of Clerk
No. 47, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Distribuidora Cardis and
its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Distribuidora Cardis'
accounting and banking records will be submitted in court.
La Nacion didn't state the submission dates for the reports.
Mr. Abalo is also in charge of administering Distribuidora
Cardis' assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Distribuidora Cardis SA
Encilla 6436.
Buenos Aires, Argentina
The trustee [if any] can be reached at:
Hugo Abalo
J. B. Justo 6748
Buenos Aires, Argentina
MEWAR Y ASOCIADOS: Files for Reorganization in Argentine Court
--------------------------------------------------------------
Mewar y Asociados SA has requested for reorganization approval
after failing to pay its liabilities on July 25, 2008.
The reorganization petition, once approved by the court, will
allow Mewar y Asociados to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance No. 15 in Buenos Aires. Clerk No. 30 assists the court
in this case.
The debtor can be reached at:
Mewar y Asociados SA
Montenegro 1649
Buenos Aires, Argentina
RESTAURANT EXPRESS: Claims Verification Deadline Is Oct. 27
-----------------------------------------------------------
Esther Ferraro, the court-appointed trustee for Restaurant
Express SA's bankruptcy proceeding, will be verifying creditors'
proofs of claim until Oct. 27, 2008.
Ms. Ferraro will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 45, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Restaurant Express and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Restaurant Express'
accounting and banking records will be submitted in court.
La Nacion didn't state the submission dates for the reports.
Ms. Ferraro is also in charge of administering Restaurant
Express' assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Restaurant Express SA
Sanchez de Loria 689
Buenos Aires, Argentina
The trustee [if any] can be reached at:
Esther Ferraro
Esmeralda 960
Buenos Aires, Argentina
TRANSPORTADORA DE GAS: Reports ARS55.4MM Second Qrtr. Net Income
----------------------------------------------------------------
Transportadora de Gas del Sur S.A., a.k.a. TGS, reported a
ARS55.4 million net income for the second quarter 2008 ended
June 30, 2008, compared to the ARS53.4 million reported for the
same 2007 period.
Operating income for the second quarter of 2008 declined by 32%
in comparison with the same quarter of 2007. This decline was
principally due to a lower performance of the natural gas liquid
business segment, which was affected by major natural gas supply
restrictions (resulting in a lower level of production and
sales), as well as higher tax on export rates. Notwithstanding,
this negative variation was more than compensated through an
increase in non-operating results, in which the ARS34.5 million
non-cash exchange rate gain rise (generated by the higher
Argentine peso appreciation in 2008 quarter) explained most of
this positive variation.
Net income for the first half of 2008 was ARS136.1 million,
which compares to ARS119.8 million obtained during the same
period of the previous year. Most of the net income increase
resulted from a non-cash exchange rate gain of ARS36.0 million
generated by an Argentine peso appreciation in the 2008
semester, partially offset by a ARS9.3 million lower operating
income. In addition, 2007 first semester's net income included
a ARS15.5 million one-time gain reported in Other (expense) /
income, net.
In the three-month period ended June 30, 2008, TGS posted total
net revenues of ARS 271.2 million, in comparison with
ARS324.1 million earned in the second quarter of 2007. Natural
Gas Transportation revenue for the second quarter of 2008 was
ARS129.0 million, compared to the ARS128.0 million earned in the
same quarter of 2007.
The Natural Gas Transportation segment represented approximately
48% and 39% of the Company's total revenue for the second
quarter of 2008 and 2007, respectively. Natural Gas
Transportation revenues are derived mainly from firm contracts,
under which pipeline capacity is reserved and paid for
regardless of actual usage by the shipper. TGS also provides
interruptible transportation services subject to available
pipeline capacity. This segment is subject to regulation by
Ente Nacional Regulador del Gas.
The natural gas liquid Production and Commercialization segment
revenue declined to ARS111.5 million in the three-month period
ended June 30, 2008, from ARS179.5 million in the same period of
2007, representing a 38% reduction. This decrease is mainly due
to a decline in the volume sold, associated with a lower
processing level in Cerri Complex in the second quarter of 2008.
This is attributable to the natural gas supply interruptions
instructed by the Argentine government to certain industries, in
order to increase the supply to power plants, as the
hydroelectric availability is low and the cost of alternative
fuel for thermoelectric plants is higher.
Natural gas liquid Production and Commercialization revenue
accounted for approximately 41% and 56% of the total revenue for
the second quarter of 2008 and 2007, respectively. natural gas
liquid Production and Commercialization consists of natural gas
processing activities, conducted at the Cerri Complex.
This complex is located near the city of Bahia Blanca, which is
connected to each of TGS's main pipelines, in which ethane,
propane, butane and natural gasoline are recovered. This
segment also includes the commercialization of natural gas
liquid for both the company's own account and on behalf of its
clients.
In the second quarter of 2008, Other Services revenues amounted
to ARS30.7 million, an 85% rise when compared to revenues of
ARS16.6 million in the same period of 2007, explained mainly by
revenues generated in 2008 period derived from construction
services rendered in relation to the expansion of TGS's pipeline
system.
The Other Services segment mainly includes midstream and
telecommunication activities. Its share in the company's total
revenue accounted for approximately 11% and 5% for the three-
month periods ended June 30, 2008, and 2007, respectively.
Midstream activities consist of gas treatment, separation, and
removal of impurities from the natural gas stream and gas
compression, rendered at wellhead, typically for gas producers.
In addition, TGS provides services related to pipeline and
compression plant construction, and related operation and
maintenance services.
Telecommunication services are rendered through Telcosur S.A., a
company controlled by TGS. Telcosur provides services as an
independent carrier of carriers to leading telecommunication
operators and corporate customers located in its service area.
Costs of sales and administrative and selling expenses for the
second quarter of 2008 fell to ARS183.0 million from
ARS194.5 million registered in the second quarter of 2007,
mainly due to a decline in natural gas liquid direct costs
attributable to a reduction in tons produced of 17%, partially
compensated by higher labor costs.
Net financial income amounted to ARS9.6 million in the second
quarter of 2008, reflecting a positive variation of
ARS28.8 million, compared to the net financial expense of
ARS19.2 million reported in the same quarter of 2007. This
variation is mostly explained by a higher exchange rate gain of
ARS34.5 million generated by a higher appreciation of the local
currency in the 2008 period.
For the second quarter of 2008, the company reported a
ARS41.6 million income tax expense, compared to ARS51.4 million
for the same quarter of 2007. This decrease, of ARS9.8 million,
is partially due to lower net income before income tax reported
in the second quarter of 2008.
For the six-month period ended June 30, 2008, TGS achieved a
total net revenue of ARS735.3 million in comparison to
ARS663.6 million earned in the same semester ended June 30,
2007. Gas transportation revenue for first half 2008 was
ARS256.3 million, 1.1% above the ARS253.5 million earned in the
same period of the previous year.
The natural gas liquid production and commercialization segment
increased to ARS431.9 million in the first half of 2008 from
ARS362.0 million for the same period of the previous year,
representing a 19.3% rise.
This resulted mainly as a consequence of higher reference
international prices, which were partially offset by lower tons
sold, caused mainly by the lower level of processing of natural
gas.
In the first half of 2008, Other Services revenues amounted to
ARS47.1 million, reflecting a slight decrease of ARS1.0 million
compared to the same period of 2007. This decline is primarily
due to the effect of lower revenues generated by midstream
services, which were offset by higher telecommunication services
sales.
Costs of sales, administrative and selling expenses for the
first half of 2008 rose by ARS81.0 million to ARS463.9 million
in the 2008 period, from ARS382.9 million in the same period of
2007. This variation is mostly attributable to: (i) a
ARS36.0 million increase in tax on exports, derived principally
from significant increases in the rates, which became variable
in order to levy 100% of the price increases over established
average prices; and (ii) a ARS23.6 million rise in natural gas
liquid costs.
Other (expense) / income, net reported in the first semester of
2008 experienced a negative variation of ARS14.3 million,
compared to the same period of 2007. This was resultant of the
gain generated by the partial reversal of an allowance (of
ARS15.5 million) recorded in the 2007's semester in connection
with turnover tax claim made by the Province of Buenos Aires
(with respect to natural gas liquid sales billed since 2002), as
the Tax Court of this province confirmed that ethane sales were
within the scope of the turnover tax exemption.
Net financial expense decreased from ARS72.3 million reported in
the first half of 2007 to ARS33.9 million at the close of 2008's
period. The positive variation of ARS38.4 million was
principally due to the exchange rate gain of ARS36.0 million
generated by the appreciation of the Argentine peso in the
2008's semester. In addition, interest expense experienced a
decrease of ARS7.1 million, resulting from more than 20%
reduction of the average indebtedness. These effects were
partially compensated by lower interest generated by current
investment.
Liquidity and Capital Resources
Cash flow from operating activities for the six-month period
ended June 30, 2008, totaled ARS268.1 million, which were
allocated mostly to increase its cash position.
About TGS
Headquartered in Buenos Aires, Argentina, Transportadora de Gas
del Sur SA -- http://www.tgs.com.ar-- is a transporter of
natural gas; having a 7,419-kilometer (4,610 miles) pipeline
system with a firm contracted capacity of 62.5 million cubic
meters per day (MMm3/d) with an installed power of 538.220
horsepower. Substantially all of Transportadora de Gas'
capacity is subscribed for under firm long-term transportation
contracts. Transportadora de Gas is also a processor of natural
gas and marketer of natural gas liquids in Argentina. The
company operates the General Cerri gas processing complex and
the associated Galvan loading and storage facility in Bahia
Blanca in the Buenos Aires Province where natural gas liquids
are separated from gas transported through the Company's
pipeline system and stored for delivery. Transportadora de Gas
is engaged in midstream activities and the provision of
telecommunication services in Argentina. The company operates
the largest pipeline transmission system in Argentina, which
accounts for roughly 60% of the country's total natural gas
consumption.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Latin America assigned a B1 global foreign
currency rating to Transportadora de Gas del Sur S.A. US$500
million notes, due 2017, to be issued to redeem outstanding
debt. Moody's said the rating outlook is stable.
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Fitch Ratings upgraded the long-term foreign and
local currency Issuer Default Rating of Transportadora de Gas
del Sur S.A. to 'B+' from 'B'. In addition, Fitch upgraded the
senior unsecured issue rating to 'B+' from 'B', reflecting a
recovery expectation in the 'RR4' category. All ratings have a
stable outlook.
TRANSPORTADORA DE GAS: Socotherm to Coat Steel Pipes
----------------------------------------------------
Transportadora de Gas del Sur S.A., a.k.a. TGS, and
Transportadora de Gas del Norte S.A., a.k.a. TGN, have awarded
US$13 million contracts to Socotherm Americas to coat 182 miles
of steel pipes addressed to the second stage of the TGN and TGS
Loops.
The steel pipes, produced in Argentina and Brazil, will be
coated by Socotherm Americas in its plants of Valentin Alsina in
Buenos Aires and Pindamonhangaba in San Pablo between
September 2008 and March 2009.
The second stage of the TGN and TGS Loops will have a total
extension of around 456 miles and will require an investment of
more than USD30 million. Once on the field, the complete
pipeline, will increase the transportation capacity of the North
and San Martin gas pipelines in 20 million cubic meters per day.
?We are proud of participating in this project aimed to attend
the growing demand registered in Buenos Aires, the Centre and
North of the country,? said Eng. Roberto Gozalvez, Commercial
Director of Socotherm Americas.
The steel pipes, of 30 inches and 36 inches diameter, will be
coated by Socotherm Americas through a high density polyethylene
anticorrosive system.
About Socotherm Americas
Socotherm Americas is a company listed in the Buenos Aires Stock
Exchange and it was founded in 1989. It has industrial plants
in Argentina, Brazil, Venezuela, U.S.A., Angola, and Nigeria.
From these locations it supplies anticorrosive protection
systems, thermal insulation systems, and reinforced concrete
weight coatings for the most demanding oil and gas exploitation
and transportation markets.
About TGN
Headquartered in Buenos Aires, Transportadora de Gas del Norte
SA -- http://www.tgn.com.ar/-- is one of the two largest
transporters of natural gas in Argentina, delivering
approximately 40% of the country's total gas consumption and
more than 50% of Argentine total gas exports. The northern
Argentine gas pipeline system connects major gas fields in
northern and central-western Argentina. The company benefits
from an exclusive 35-year concession contract, ending Dec. 28,
2027, which may be extended for an additional 10 years. The
parent company is Gasinvest S.A., which has a 56.35% stake and
comprises five companies: Totalfinaelf (27.2%), Transcogas
Inversora S.A. (22.3%), Compania General de Combustibles (5%),
Organizacion Techint (27.2%), and Petroliam Nasional Berhad
(18.3%). In addition, CMS Gas Argentina holds 23.5% of
Transportadora Norte's shares, while the remaining 20% is traded
on the Buenos Aires stock exchange.
About TGS
Headquartered in Buenos Aires, Argentina, Transportadora de Gas
del Sur SA -- http://www.tgs.com.ar-- is a transporter of
natural gas; having a 7,419-kilometer (4,610 miles) pipeline
system with a firm contracted capacity of 62.5 million cubic
meters per day (MMm3/d) with an installed power of 538.220
horsepower. Substantially all of Transportadora de Gas'
capacity is subscribed for under firm long-term transportation
contracts. Transportadora de Gas is also a processor of natural
gas and marketer of natural gas liquids in Argentina. The
company operates the General Cerri gas processing complex and
the associated Galvan loading and storage facility in Bahia
Blanca in the Buenos Aires Province where natural gas liquids
are separated from gas transported through the Company's
pipeline system and stored for delivery. Transportadora de Gas
is engaged in midstream activities and the provision of
telecommunication services in Argentina. The company operates
the largest pipeline transmission system in Argentina, which
accounts for roughly 60% of the country's total natural gas
consumption.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Latin America assigned a B1 global foreign
currency rating to Transportadora de Gas del Sur S.A. US$500
million notes, due 2017, to be issued to redeem outstanding
debt. Moody's said the rating outlook is stable.
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Fitch Ratings upgraded the long-term foreign and
local currency Issuer Default Rating of Transportadora de Gas
del Sur S.A. to 'B+' from 'B'. In addition, Fitch upgraded the
senior unsecured issue rating to 'B+' from 'B', reflecting a
recovery expectation in the 'RR4' category. All ratings have a
stable outlook.
TRANSPORTADORA DE GAS DEL NORTE: Socotherm Will Coat Steel Pipes
----------------------------------------------------------------
Transportadora de Gas del Norte S.A., a.k.a. TGN, and
Transportadora de Gas del Sur S.A., a.k.a. TGS, have awarded
US$13 million contracts to Socotherm Americas to coat 182 miles
of steel pipes addressed to the second stage of the TGN and TGS
Loops.
The steel pipes, produced in Argentina and Brazil, will be
coated by Socotherm Americas in its plants of Valentin Alsina in
Buenos Aires and Pindamonhangaba in San Pablo between
September 2008 and March 2009.
The second stage of the TGN and TGS Loops will have a total
extension of around 456 miles and will require an investment of
more than USD30 million. Once on the field, the complete
pipeline, will increase the transportation capacity of the North
and San Martin gas pipelines in 20 million cubic meters per day.
?We are proud of participating in this project aimed to attend
the growing demand registered in Buenos Aires, the Centre and
North of the country,? said Eng. Roberto Gozalvez, Commercial
Director of Socotherm Americas.
The steel pipes, of 30 inches and 36 inches diameter, will be
coated by Socotherm Americas through a high density polyethylene
anticorrosive system.
About Socotherm Americas
Socotherm Americas is a company listed in the Buenos Aires Stock
Exchange and it was founded in 1989. It has industrial plants
in Argentina, Brazil, Venezuela, U.S.A., Angola, and Nigeria.
From these locations it supplies anticorrosive protection
systems, thermal insulation systems, and reinforced concrete
weight coatings for the most demanding oil and gas exploitation
and transportation markets.
About TGS
Headquartered in Buenos Aires, Argentina, Transportadora de Gas
del Sur SA -- http://www.tgs.com.ar-- is a transporter of
natural gas; having a 7,419-kilometer (4,610 miles) pipeline
system with a firm contracted capacity of 62.5 million cubic
meters per day (MMm3/d) with an installed power of 538.220
horsepower. Substantially all of Transportadora de Gas'
capacity is subscribed for under firm long-term transportation
contracts. Transportadora de Gas is also a processor of natural
gas and marketer of natural gas liquids in Argentina. The
company operates the General Cerri gas processing complex and
the associated Galvan loading and storage facility in Bahia
Blanca in the Buenos Aires Province where natural gas liquids
are separated from gas transported through the Company's
pipeline system and stored for delivery. Transportadora de Gas
is engaged in midstream activities and the provision of
telecommunication services in Argentina. The company operates
the largest pipeline transmission system in Argentina, which
accounts for roughly 60% of the country's total natural gas
consumption.
About TGN
Headquartered in Buenos Aires, Transportadora de Gas del Norte
SA -- http://www.tgn.com.ar/-- is one of the two largest
transporters of natural gas in Argentina, delivering
approximately 40% of the country's total gas consumption and
more than 50% of Argentine total gas exports. The northern
Argentine gas pipeline system connects major gas fields in
northern and central-western Argentina. The company benefits
from an exclusive 35-year concession contract, ending Dec. 28,
2027, which may be extended for an additional 10 years. The
parent company is Gasinvest S.A., which has a 56.35% stake and
comprises five companies: Totalfinaelf (27.2%), Transcogas
Inversora S.A. (22.3%), Compania General de Combustibles (5%),
Organizacion Techint (27.2%), and Petroliam Nasional Berhad
(18.3%). In addition, CMS Gas Argentina holds 23.5% of
Transportadora Norte's shares, while the remaining 20% is traded
on the Buenos Aires stock exchange.
Headquartered in Buenos Aires, Transportadora de Gas del Norte
SA -- http://www.tgn.com.ar/-- is one of the two largest
transporters of natural gas in Argentina, delivering
approximately 40% of the country's total gas consumption and
more than 50% of Argentine total gas exports. The northern
Argentine gas pipeline system connects major gas fields in
northern and central-western Argentina. The company benefits
from an exclusive 35-year concession contract, ending Dec. 28,
2027, which may be extended for an additional 10 years. The
parent company is Gasinvest S.A., which has a 56.35% stake and
comprises five companies: Totalfinaelf (27.2%), Transcogas
Inversora S.A. (22.3%), Compania General de Combustibles (5%),
Organizacion Techint (27.2%), and Petroliam Nasional Berhad
(18.3%). In addition, CMS Gas Argentina holds 23.5% of
Transportadora Norte's shares, while the remaining 20% is traded
on the Buenos Aires stock exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 1, 2008, Fitch Ratings affirmed Transportadora de Gas del
Norte S.A.'s long-term local and foreign currency Issuer Default
Ratings at 'B'. Fitch also affirmed the 'B' rating of the
company's senior unsecured notes due in 2012, as well as the
'RR4' recovery rating of the notes. Fitch said the rating
outlook for all ratings was revised to negative from stable.
* ARGENTINA: Dim Outlook for Oil & Gas Industries, S&P Predicts
---------------------------------------------------------------
Argentina is increasingly feeling the effects of its limited
natural gas and oil supplies. Standard & Poor's Ratings
Services believes Argentina's biggest energy-related problem is
the country's need to produce enough energy to sustain economic
growth, according to a published report titled, ?Argentina's Oil
And Gas Sector Is Looking Dim As Supply Levels Remain
Inadequate?.
Energy production comes largely from private companies, since
Argentina's oil and gas industry was deregulated in the early
1990s -- meaning it relies on private investment.
?To combat supply issues, Argentina's oil and gas industry needs
significant private investment,? said S&P's credit analyst
Luciano Gremone. ?But, companies are reluctant to get too
involved because of the risks inherent in hydrocarbon
exploration, as well as the effect that regulations have on the
sector's profitability.?
As a result, to maintain a sufficient supply of hydrocarbons,
private companies likely will require greater incentives for
taking on such risk.
Another significant issue for the country in attaining a
reliable long-term energy supply is the renegotiation of the
utilities' concession contracts and licenses mandated by the
Argentine government in early 2002, to improve the
infrastructure network needed for energy supply.
Not surprisingly, the ability to produce sufficient amounts of
hydrocarbons is key to a company's credit quality. In terms of
credit quality, most rated hydrocarbon production companies in
Argentina enjoy relatively healthy financial profiles.
Nevertheless, maintaining enough reserves is the main long-term
challenge for achieving a sustainable business and stable
financial performance.
* ARGENTINA: S&P Drops Long-Term Currency Ratings to B From B+
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its foreign and
local currency long-term credit ratings on the Republic of
Argentina to 'B' from 'B+'.
S&P also said that it affirmed its 'B' short-term foreign and
local currency sovereign credit ratings on Argentina.
In addition, S&P lowered its national scale rating on Argentina
to 'raAA-' from 'raAA'. The outlook is stable.
S&P also lowered its transfer and convertibility assessment on
Argentina to 'BB-' from 'BB', and the '4' recovery rating on the
republic's bond issues is unchanged.
?The downgrade reflects Argentina's increasing economic
challenges,? said S&P's credit analyst Sebastian Briozzo. ?In
particular, inflation and fiscal and financial strain have
increased while the likelihood of the government taking prompt
corrective measures to staunch the loss of creditworthiness
remains low.? The sovereign's weaker financial profile --
combined with a deteriorating political environment -- makes
Argentina's creditworthiness more consistent with a 'B' rating.
Despite a general government primary surplus that could exceed
3% of GDP this year, S&P expects that Argentina's underlying
fiscal situation will continue to deteriorate. The combination
of decelerating GDP growth (from about 6%-7% in 2008), which
affects government revenues, and spending rigidities based on a
rapidly growing level of subsidies will make fiscal management
more difficult, placing greater importance on the government's
political will to curb expenses when needed. Official data show
inflation of 8%-10%, but private estimates suggest that it might
actually be about 24%-28%. The likelihood of a more challenging
political and economic environment in 2009, combined with the
government's restricted access to market funding, raises the
risk of financial strain in the coming year.
Although the 2008 financing gap is almost covered, the
government's financing needs for 2009 will likely reach
US$10 billion, a manageable level if local market conditions
stabilize. However, if market conditions continue to erode, the
government would need to make an additional fiscal correction to
meet its 2009 financing gap. Nonresidents are estimated to hold
more than 40% of the government's debt, raising risk of adverse
market conditions if investor confidence were to weaken.
The stable outlook balances the increasingly adverse political
and economic environment with the ability the government still
has to address economic imbalances. The recent fall in the
government's popularity -- combined with upcoming Congressional
elections next year -- raises the challenge of tightening fiscal
policy and containing inflation in 2009. Any significant fiscal
slippage would affect the government's financial profile and
could put pressure on the rating. Conversely, measures aimed at
reversing recent fiscal trends and containing inflation could
sustain creditworthiness.
Recent measures -- such as increasing the price of electricity
and an apparent slowdown in the rate of growth of public
expenditure in June -- could help stabilize expectations about
Argentina's economic outlook if they are expanded and if they
are complemented by similar initiatives in other sectors.
Similarly, a sustained reduction in political polarization,
following the recent rejection of the government's export tax
bill in Congress could support investor confidence, lowering the
rollover risk for the government's debt.
* ARGENTINA: S&P's Sovereign Rating Cuts Won't Affect Companies
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its lowering of the
sovereign ratings on the Republic of Argentina will not
immediately affect ratings on Argentine corporate entities. S&P
lowered the global scale ratings on Argentina to 'B' from 'B+'
and the national scale ratings to 'raAA-' from 'raAA'. The
outlook on the sovereign is stable, and the 'B' short-term
global scale rating remains unchanged.
Nevertheless, S&P is in the process of reevaluating its view of
significant risks in the economic and business environment,
which the rating agency refers to broadly as country risk. This
assessment could lead us to review specific ratings in the
sector, particularly in light of higher refinancing risks
arising from lack of liquidity and higher costs. S&P expects to
complete its assessment of country risk and the impact on each
corporate rating in the next few days.
?Although we expect changes to some global scale ratings, most
likely to some outlooks, we do not expect significant changes in
the national scale ratings,? said S&P's credit analyst Pablo
Lutereau.
Corporate ratings in Argentina have been heavily influenced by
S&P's view of country risk. Country risk includes, and is
intertwined with, sovereign default risk but is not limited to
it. Therefore, the sovereign rating actions do not trigger
automatic changes on individual corporate ratings.
The rating action on Argentina reflects increasing economic
challenges, in particular higher inflation and greater fiscal
and financial strain, matched with a diminishing likelihood that
the government will take prompt corrective measures to staunch
the loss of creditworthiness. Although these factors, the
sovereign's weaker financial profile, and a deteriorating
political environment have affected country risk, S&P believes
corporate ratings already incorporate some of these
uncertainties.
* BUENOS AIRES: S&P Lowers Long-Term Global Scale Ratings to B
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
global scale ratings on Province of Mendoza and Province of
Buenos Aires in the Republic of Argentina to 'B' from 'B+'.
?These rating actions follow the downgrade of Argentina earlier
today to 'B' from 'B+',? explained S&P's credit analyst Delfina
Cavanagh. ?These actions reflect the close linkage between the
sovereign and the local governments in Argentina.?
S&P also said that the outlook on both Mendoza and Buenos Aires
is stable.
In addition, S&P affirmed its 'B+' global scale rating on the
government of the City of Buenos Aires. The outlook on the city
remains stable.
?In contrast with other Argentinean local governments, the
rating on the city remains unchanged,? Ms. Cavanagh added.
?This reflects its privileged position in terms of both its
financial flexibility and low debt level.?
The stable outlook on Mendoza and Buenos Aires reflects the
provinces' reliance for funding on Argentina, which S&P also
downgraded.
The stable outlook on the City of Buenos Aires incorporates the
expectation that conservative management and low debt levels
will continue to provide additional fiscal flexibility during
the next two to three years. Therefore, S&P expects the City of
Buenos Aires to be able to deal with the growing pressures on
the expenditure side of the budget in a manner consistent with a
'B+' rating. Greater fiscal slippage driven by unsustainable
increases in expenditures could place more pressure on the
rating and could result in an outlook revision to negative.
* MENDOZA PROVINCE: S&P Cuts Long-Term Global Scale Ratings to B
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
global scale ratings on Province of Mendoza and Province of
Buenos Aires in the Republic of Argentina to 'B' from 'B+'.
?These rating actions follow the downgrade of Argentina earlier
today to 'B' from 'B+',? explained S&P's credit analyst Delfina
Cavanagh. ?These actions reflect the close linkage between the
sovereign and the local governments in Argentina.?
S&P also said that the outlook on both Mendoza and Buenos Aires
is stable.
In addition, S&P affirmed its 'B+' global scale rating on the
government of the City of Buenos Aires. The outlook on the city
remains stable.
?In contrast with other Argentinean local governments, the
rating on the city remains unchanged,? Ms. Cavanagh added.
?This reflects its privileged position in terms of both its
financial flexibility and low debt level.?
The stable outlook on Mendoza and Buenos Aires reflects the
provinces' reliance for funding on Argentina, which S&P also
downgraded.
The stable outlook on the City of Buenos Aires incorporates the
expectation that conservative management and low debt levels
will continue to provide additional fiscal flexibility during
the next two to three years. Therefore, S&P expects the City of
Buenos Aires to be able to deal with the growing pressures on
the expenditure side of the budget in a manner consistent with a
'B+' rating. Greater fiscal slippage driven by unsustainable
increases in expenditures could place more pressure on the
rating and could result in an outlook revision to negative.
=============
B E R M U D A
=============
BLUEPONT LTD: Court Names John McKenna as Provisional Liquidator
----------------------------------------------------------------
The Supreme Court of Bermuda has appointed John C. McKenna as
Bluepoint Limited's provisional liquidator.
Bluepoint's shareholders agreed to place the company into
voluntary liquidation under Bermuda's Companies Act 1981.
Bluepoint's legal representative can be reached at:
Conyers Dill & Pearman
Clarendon House
2 Church Street
P.O. Box HM 666
Hamilton HM CX, Bermuda
Telephone: +1 (441) 295 1422
Fax: +1 (441) 292 4720
The liquidator can be reached at:
John C. McKenna
Ernst & Young
Reid Hall, Reid Street,
Hamilton, HM 11, Bermuda
DUKE COMMUNICATION: Proofs of Claim Filing Deadline Is Aug. 26
--------------------------------------------------------------
Duke Communication Services Caribbean Ltd.'s creditors are given
until Aug. 26, 2008, to prove their claims to Jennifer Y.
Fraser, 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.
Duke Communication's shareholders agreed on Aug. 7, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
DUKE COMMUNICATION: Sets Final Shareholders Meeting for Sept. 16
----------------------------------------------------------------
Duke Communication Services Caribbean Ltd. will hold its final
general meeting on Sept. 16, 2008, at 11:00 a.m. at Canon's
Court, 22 Victoria Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
Duke Communication's shareholders agreed on Aug. 7, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
FOSTER WHEELER: Biokinetics Bags Service Contract From Alcon Lab
----------------------------------------------------------------
Foster Wheeler Ltd.'s U.S. subsidiary, Biokinetics, Inc., along
with Foster Wheeler's Singapore office, both part of its Global
Engineering and Construction Group, has been awarded a contract
by Alcon Laboratories Inc. to provide engineering and
architectural services for the conceptual and basic design of
its new 250,000 square foot manufacturing facility to be
located in the Tuas Biomedical Park in Singapore. The plant
will produce ophthalmic pharmaceuticals for distribution
throughout Asia.
The Foster Wheeler contract value, most of which will be
included in the company's third-quarter 2008 bookings, was not
disclosed.
?This exciting opportunity highlights yet another step in our
growing relationship with Alcon,? said Bill Brydges, president
of Biokinetics. ?Alcon's vote of confidence is a clear
demonstration of the sound value proposition we offered. Our
winning combination leverages Foster Wheeler's strong track
record in pharmaceutical and biopharmaceutical projects and its
in-depth knowledge of the Singaporean market, together with our
relationship with Alcon, and our ability to execute the
concept/basic design phases in the U.S. in line with our
understanding of Alcon's requirements.?
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.
SA SERVICES: Proofs of Claim Filing Deadline Is Aug. 26
-------------------------------------------------------
S.A. Services Limited's creditors are given until Aug. 26, 2008,
to prove their claims to Jennifer Y. Fraser, 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.
S.A. Services' shareholders agreed on Aug. 7, 2008, to place the
company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
S.A. SERVICES: Sets Final Shareholders Meeting for Sept. 16
-----------------------------------------------------------
S.A. Services Limited will hold its final general meeting on
Sept. 16, 2008, at 10:00 a.m. at Canon's Court, 22 Victoria
Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
S.A. Services' shareholders agreed on Aug. 7, 2008, to place the
company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
SYNCORA HOLDINGS: Claude L. LeBlanc to Serve as Special Advisor
---------------------------------------------------------------
Syncora Holdings Ltd. disclosed that beginning Aug. 18, 2008,
its Executive Vice President, Corporate Development and
Strategy, Claude L. LeBlanc will serve as a special advisor to
the company's Board of Directors, providing advisory services
during the second phase of its restructuring efforts.
Mr. LeBlanc will step down from his current position effective
Aug. 15, 2008, in order to allow him to focus on the second
phase.
?On behalf of the Board of Directors, I'd like to thank Claude
for his committed service and for helping Syncora navigate
through these challenging times. Claude was essential in the
leadership and successful execution of the first phase of
Syncora's restructuring. The Board of Directors believes
Claude's involvement and counsel is critical to the next
phase of the restructuring and we look forward to our continued
working relationship with Claude,? stated Syncora's Chairperson
of the Board of Directors, Michael P. Esposito, Jr.
Mr. LeBlanc joined Syncora on Nov. 16, 2006, from XL Capital
Ltd. where he served as Senior Vice President, Corporate
Development and was a member of the Executive Management Group.
Prior to joining XL Capital in 2002, Mr. LeBlanc held senior
financial and operating roles with a North American
telecommunications group, where in his last position he oversaw
strategic and financial planning, corporate development and
management of business operations.
About Syncora Holdings
Syncora Holdings Ltd., formerly Security Capital Assurance Ltd.,
is a Bermuda-domiciled 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. SCA has
announced that it will formally change its corporate name to
Syncora Holdings Ltd. on Aug. 4, 2008. XLCA and XLFA will be
renamed Syncora Guarantee Inc. and Syncora Guarantee Re Ltd,
respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2008, Moody's Investors Service confirmed its
provisional rating on senior debt at (P)Caa3, provisional rating
on subordinated debt at (P)Ca and preference shares at Ca with a
negative outlook on Syncora Holdings Ltd.
In August 2008, Fitch Ratings downgraded these ratings on
Security Capital Assurance Ltd. and its financial guaranty
insurance subsidiaries and placed all ratings on Rating Watch
Evolving:
-- Long Term Issuer Rating to 'CCC-' from 'B-';
-- US$250 million Fixed/Floating Series A Perpetual
Non-cumulative Preference Shares to 'CCC-' from 'CCC'.
TCR-Latin America reported on July 31, 2008, that Standard &
Poor's Ratings Services said its 'C' long-term credit rating on
Security Capital Assurance Ltd. remains on CreditWatch with
negative implications.
SYNCORA HOLDINGS: June 30 Shareholder's Deficit Is US$428.7 Mln
---------------------------------------------------------------
Syncora Holdings Ltd. has reported its results for the three-
and six-month periods ended June 30, 2008. As of June 30, 2008,
the company reported a total shareholders' deficit of
US$182.1 million and a common shareholders' deficit of
US$428.7 million.
The net loss in the second quarter of 2008 was US$492.9 million,
versus net income of US$25.9 million, in the second quarter of
2007. The net loss for the quarter was primarily due to net
losses and loss adjustment expenses of US$455.6 million and a
charge of US$125.7 million related to the net change in fair
value of derivatives. The net loss for the first six months of
2008 was US$589.7 million, versus net income of US$63.2 million
for the first six months of 2007.
After the end of the second quarter of 2008, Syncora entered
into important agreements for transactions with XL Capital Ltd
and Merrill Lynch & Co., Inc. that closed on Aug. 5, 2008.
These transactions will be reflected in the third quarter
financial statements. The Merrill Lynch transaction involved
the payment of US$500 million in cash consideration by Syncora
to Merrill Lynch, in exchange for Merrill Lynch's agreement to
terminate eight credit default swap contracts with an insured
gross par outstanding of US$3.74 billion, as of June 30, 2008.
The XL Capital transaction consisted of the commutation,
elimination and termination of certain reinsurance and
guarantees among certain XL Capital affiliates and Syncora and
its subsidiaries in exchange for consideration in the amount of
approximately US$1.775 billion in cash plus eight million XL
Capital ordinary shares, as well as the transfer of XL Capital's
46% ownership in Syncora to a trust.
On a pro-forma basis, after giving effect to these and other
related transactions, as of June 30, 2008, the company's common
shareholders' equity calculated in accordance with U.S.
generally accepted accounting principles would have been
approximately US$0.9 billion and total shareholders' equity
would have been approximately US$1.1 billion. In addition,
Syncora Guarantee Inc.'s (formerly, XL Capital Assurance Inc.)
June 30, 2008, policyholders' surplus would have been
US$1 billion compared to a deficit of US$881.1 million actually
reported as of that date. The common shareholders' equity and
Syncora Guarantee's policyholders' surplus described above
reflect certain assumptions by the company concerning the
transactions contemplated by the Agreements and related
transactions. There can be no assurance that the company's
assumptions will not differ materially from the ultimate
treatment or impact of the aforementioned transactions.
?Our results in the second quarter stemmed mainly from
significant deterioration in U.S. residential mortgage
performance that adversely affected the asset-backed
collateralized debt obligations and residential mortgage backed
securities we insured,? said Syncora Holdings President and
Chief Executive Officer, Paul S. Giordano. ?Last week, we
achieved an important milestone in our restructuring process by
completing the previously announced transactions with XL Capital
and Merrill Lynch, which strengthened our capital position and
removed from our insured portfolio some of the exposures of
greatest concern to us. To reduce the risk of further adverse
loss development, we are continuing to work with our remaining
credit default swap counterparties in an effort to commute or
restructure the exposures we have to them. We also remain
committed to exploring ways to place our public finance business
on a more stable footing going forward.?
For the second quarter of 2008, the company reported an
operating loss of US$1.288 billion, compared to operating income
of US$46.4 million for the second quarter of 2007. For the
first six months of 2008, the company reported an operating
loss of US$1.291 billion, compared to operating income of
US$90.5 million for the first six months of 2007.
Net Change in Fair Value of Derivatives and Credit
Impairment Charges Associated with Derivative Exposure
The net loss for the quarter was partially due to a charge of
US$125.7 million, related to the net change in fair value of
derivatives associated with financial guarantee obligations
executed in credit derivative form, as required by GAAP.
Included in the net change in fair value of derivatives for the
second quarter is US$944.9 million of additional credit
impairment associated with adverse loss development in the
company's collateralized debt obligations of asset backed
securities portfolio. Additionally, the Statement of Financial
Accounting Standards No. 157 ?Fair Value Measurements? requires
the company to adjust the estimated fair values of its
derivative liabilities to incorporate the risk of the company's
own non-performance. Syncora applied a market-derived discount
rate, which includes an adjustment for the company's credit
spreads, in estimating the fair value of its credit derivative
liability. The effect of the company's credit spreads on fair
value can vary widely from period to period dependent largely on
the perception of Syncora and/or its operating company, Syncora
Guarantee, as counterparty.
For the first six months of 2008, the net change in fair value
of derivatives on financial guarantee obligations executed in
credit derivative form was a charge of US$222 million, which
includes net credit impairment of US$965.4 million during the
first six months of 2008 associated with the CDO of ABS
portfolio.
Net Cash Used in or Provided by Operating Activities
For the three months ended June 30, 2008, net cash used in
operating activities was US$63 million compared to
US$46.5 million provided by operating activities in the
comparable three-month period in 2007. For the first six months
of 2008, net cash used in operating activities was
US$107.7 million compared to US$105.3 million provided by
operating activities in the comparable six-month period in 2007.
Net cash used in operating activities during the second quarter
and for the first six months of 2008 was primarily due to the
company having ceased writing substantially all new business,
combined with higher expenses and significant claims payments
made during the second quarter and first six months of 2008.
Gross claims of US$193.7 million were paid during the first half
of the year related to home equity line of credit (HELOC) and
closed-end second lien (CES) residential mortgage backed
securities (RMBS) transactions. There were no claims paid in
the first six months of 2007.
Net cash provided by financing activities was US$195.8 million
for the first six months of 2008 primarily from the receipt of
proceeds of approximately US$200 million from the issuance the
Series B non-cumulative perpetual preferred shares of Syncora
Guarantee Re Ltd. in connection with the exercise of the Twins
Reefs Asset Trust put option in the first quarter of 2008.
Dividend Update
As part of an agreement reached with the New York State
Insurance Department, the company has agreed to an 18 month
moratorium on the payment of all dividends to the company's
shareholders.
Aug. 5, 2008 Agreements
Agreement with XL Capital
As previously announced, on Aug. 5, 2008, a number of
reinsurance, guarantees and other arrangements among Syncora and
its subsidiaries and XL Capital and its subsidiaries were
terminated, eliminated or commuted in return for the payment by
XL Capital and certain of its affiliates of US$1.775 billion in
cash plus eight million of XL Capital's Class A Ordinary
Shares to Syncora Guarantee and Syncora Re and the transfer of
XL Capital's 46% ownership of Syncora into a trust. This
transaction will be accounted for in the company's third quarter
2008 financials.
Agreement with Merrill Lynch
As previously announced, pursuant to the Merrill Agreement, on
Aug. 5, 2008, Syncora, Syncora Guarantee, Merrill Lynch, Merrill
Lynch International and eight trusts affiliated with Syncora,
the obligations of which are guaranteed by policies issued by
Syncora Guarantee, terminated eight credit default swaps and the
related financial guarantee insurance policies issued by Syncora
Guarantee, with an insured gross par outstanding as of June 30,
2008 of US$3.74 billion, in exchange for a payment by Syncora
Guarantee to Merrill Lynch of an aggregate amount of US$500
million. As part of the closing of the transactions associated
with the Merrill Agreement, the parties provided mutual releases
of claims with respect to the Swaps and the related policies.
In addition, Syncora Guarantee and Merrill Lynch International
agreed to dismiss the litigation related to seven of the Swaps.
This transaction will be accounted for in the company's third
quarter 2008 financials.
Net Premiums Earned
Net premiums earned, which include accelerated premiums from
refundings, increased 169% in the second quarter of 2008 to
US$121 million compared to US$45 million in the second quarter
of 2007. The reclassification of certain specific revenue,
expense and balance sheet lines, including net premiums earned,
was associated with the new financial statement presentation of
the company's CDS contracts. These adjustments reduced net
premiums earned by US$16.4 million in the second quarter of 2008
and US$9.2 million in the second quarter of 2007, when compared
against the prior method for presentation of net premiums
earned. Net premiums earned associated with the company's CDS
contracts are now presented in the ?realized gains and losses
and other settlements? line of the statements of operations.
For the first six months of 2008 net premiums earned increased
114% to US$179.4 million from US$83.9 million in the first six
months of 2007. The increase in total net premiums earned was
primarily due to the significant increase in refunding premiums
during the second quarter and first six months of 2008.
Net premiums earned excluding refundings increased to
US$59.5 million in the second quarter of 2008 up 23% from
US$48.5 million in the second quarter of 2007. For the first
six months of 2008 core net premiums were US$115.8 million, a
24% increase compared to the first six months of 2007.
Net Losses and Loss Adjustment Expenses
Net losses and loss adjustment expenses in the second quarter of
2008 were US$455.6 million compared to US$2.2 million in the
second quarter of 2007. Net case losses and loss adjustment
expense provisions on direct RMBS exposures were US$476 million
in the second quarter of 2008. These case loss provisions were
primarily associated with adverse development on six HELOC
transactions, four CES transactions and six Alternative-A RMBS
transactions that experienced credit deterioration during the
second quarter of 2008. There were no case loss provisions
taken in the second quarter of 2007. Increases in 60 day +
delinquencies and lower draw rates, as well as higher than
expected paid claims were the primary drivers of the increase of
case reserves on the RMBS transactions.
During the three months ended June 30, 2008, the company paid
gross claims aggregating US$130.4 million on guarantees of
obligations supported by the HELOCs, CES and Alt-A transactions.
An additional US$10.6 million of gross claims were paid in
connection with a public finance transaction during the quarter.
The RMBS claims primarily relate to transactions for which the
company has established gross and net case loss reserves of
US$587.5 million and US$523.6 million, respectively, at June 30,
2008. The company paid no claims in the first half of 2007.
Operating Expenses
Operating expenses in the second quarter of 2008 were
US$51.4 million, a 93% increase compared to US$26.6 million of
gross operating expenses for the same period in 2007. For the
first six months of 2008 operating expenses were
US$92.3 million, an 82% increase versus US$50.6 million for the
first six months of 2007. The second quarter's operating
expenses include the non-cash write down of the company's
business licenses, which had been carried on the books as an
intangible asset, in the amount of US$11.5 million and
additional severance charges of US$6.3 million. Professional
fees associated with the transactions with XL Capital and
Merrill Lynch also contributed to the increase in expenses
during the second quarter and first six months of 2008.
Professional fees in the second quarter, primarily legal
expenses and advisory fees, were US$9.7 million higher than in
the second quarter of 2007. No costs were deferred in the
second quarter of 2008 because the company ceased writing
substantially all new business. This contributed to a
US$7.6 million unfavorable expense variance in the second
quarter of 2008 compared to the second quarter of 2007.
Compensation expenses and corporate travel declined by
US$4.7 and US$0.9 million, respectively, as the company ceased
writing substantially all new business and reduced headcount
during the first half of 2008.
Acquisition Costs
Acquisition costs were US$6.2 million for the second quarter of
2008, a US$2.4 million or 63% increase over the comparable
period in 2007. The increase in acquisition costs in the second
quarter of 2008 was primarily due to accelerated amortization of
deferred acquisition costs in the insurance segment which
totaled US$4.7 million versus US$0.5 million in the second
quarter of 2007 due to refundings, calls and other
accelerations.
Net Investment Income
Net investment income for the second quarter of 2008 was
US$31.5 million, representing an increase of 4%, or
US$1.3 million, from US$30.3 million in the comparable period of
2007. The increase in net investment income was driven by
higher average invested assets. Average invested assets
increased to US$2.8 billion in the second quarter of 2008,
compared to US$2.5 billion in the second quarter of 2007. The
increase was primarily due to the receipt of US$200 million in
proceeds associated with the issuance of Syncora Re's Series B
non-cumulative perpetual preferred shares in the first quarter
of 2008 and operating cash flows since the comparable period in
2007. Syncora's average book yield decreased to 4.57% in the
second quarter of 2008 from 4.87% in the second quarter of 2007.
The decrease in average book yields is due to lower portfolio
duration and lower short term market interest rates. The
portfolio's duration at June 30, 2008, was 3.2 years compared to
3.4 years at June 30, 2007.
Balance Sheet
The company's net unpaid losses and loss adjustment expense
reserves were US$609.3 million at the end of the second quarter
of 2008, versus US$135.6 million at year-end 2007. The increase
was primarily due to the case loss reserve additions and normal
loss reserve accretion which occurred during the second quarter
of 2008 in connection with the company's insured HELOC, CES and
Alt-A portfolios. During the first quarter of 2008, the credit
impairment charges associated with the company's CDO of ABS
portfolio were reclassified as a derivative liability on the
balance sheet to comply with the recommendations by the SEC and
adopted by the company. The gross credit impairment associated
with the company's CDO of ABS portfolio, which is now included
as a derivative liability, totaled US$1.763 billion as of
June 30, 2008. As of year-end 2007, the comparable reserve that
was previously reflected in the ?unpaid losses and loss
adjustment expenses? line on the balance sheet was
US$829.8 million. The increase was primarily due to adverse
development in the company's CDO of ABS portfolio.
As of June 30, 2008, total assets were US$3.7 billion, up 3%
from US$3.6 billion in total assets as of Dec. 31, 2007. Book
value, or common shareholders' equity, shifted to a deficit of
US$428.7 million as of June 30, 2008, from common shareholders'
equity of US$180.5 million at the end of 2007. The company's
total shareholders' deficit as of June 30, 2008 was
US$182.1 million.
Going Concern Update
Despite the overall favorable impact of the transactions with XL
Capital and Merrill Lynch, the company has concluded that there
is substantial doubt about its ability to continue as a going
concern, under applicable accounting rules, primarily because of
the potential for future material adverse loss development on
the company's ABS CDO and RMBS portfolios. In addition,
according to accounting and reporting requirements for assessing
whether there is substantial doubt about an entity's ability
to continue as a going concern, the company must only consider
completed transactions and is not permitted to consider the
potential favorable impact of the commitment of the company's
remaining credit default swap counterparties to reach an
agreement with Syncora to commute, terminate, amend or
restructure existing agreements. The company intends to
re-assess this conclusion if it successfully completes such
transactions, but there can be no assurance the company will be
successful in its efforts to complete such transactions.
About Syncora Holdings
Syncora Holdings Ltd., formerly Security Capital Assurance Ltd.,
is a Bermuda-domiciled 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. SCA has
announced that it will formally change its corporate name to
Syncora Holdings Ltd. on Aug. 4, 2008. XLCA and XLFA will be
renamed Syncora Guarantee Inc. and Syncora Guarantee Re Ltd,
respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2008, Moody's Investors Service confirmed its
provisional rating on senior debt at (P)Caa3, provisional rating
on subordinated debt at (P)Ca and preference shares at Ca with a
negative outlook on Syncora Holdings Ltd.
In August 2008, Fitch Ratings downgraded these ratings on
Security Capital Assurance Ltd. and its financial guaranty
insurance subsidiaries and placed all ratings on Rating Watch
Evolving:
-- Long Term Issuer Rating to 'CCC-' from 'B-';
-- US$250 million Fixed/Floating Series A Perpetual
Non-cumulative Preference Shares to 'CCC-' from 'CCC'.
TCR-Latin America reported on July 31, 2008, that Standard &
Poor's Ratings Services said its 'C' long-term credit rating on
Security Capital Assurance Ltd. remains on CreditWatch with
negative implications.
SYNCORA HOLDINGS: Paul S. Giordano to Resign as CEO on Aug. 15
--------------------------------------------------------------
Syncora Holdings Ltd. reported that Paul S. Giordano will step
down from his position as Chief Executive Officer and President
of the company and resign his seat on the company's Board of
Directors, effective Aug. 15, 2008. The company also announced
that Susan Comparato will serve as Acting Chief Executive
Officer and President, in addition to her existing
responsibilities as General Counsel.
?On behalf of the Board of Directors, we'd like to thank Paul
for his service and dedication during his tenure as Chief
Executive Officer. We greatly appreciate his hard work over the
past few months which resulted in the successful completion of
the first phase of Syncora's critical restructuring initiatives.
The entire Board joins me in wishing Paul every success in his
future endeavors,? commented Michael P. Esposito, Jr.,
Chairperson of the Board of Directors of Syncora Holdings Ltd.
?I wish to thank the Board of Directors and my colleagues at
Syncora for their extraordinary effort and commitment over the
last few months. With the successful completion of the first
phase of the restructuring behind us, I fully understand and
agree with the Board's decision that now is the right time for
new leadership to take the company forward,? said Mr. Giordano.
?I wish everyone at Syncora the best of success for the future.?
Commenting on Ms. Comparato's appointment, Mr. Esposito said,
?Susan has played an instrumental role in helping navigate the
company during these challenging times. Her leadership and
insight have been critical in terms of stabilizing the company
and working constructively with the regulators and third parties
to execute the first phase of the restructuring process. Susan
brings a deep knowledge of our industry, significant business
acumen and, importantly, a steady hand to help guide Syncora and
its employees as we work toward completing the next phase of
the company's restructuring plan.?
Acting Chief Executive Officer and President Ms. Comparato said,
?I look forward to working with the board and management team as
we work towards successfully executing the next phase of the
company's restructuring efforts.?
As Syncora's General Counsel, Ms. Comparato has been responsible
for Syncora's interaction with all regulatory institutions with
oversight of Syncora as a publicly traded insurance holding
company. She provided legal counsel and guidance for Syncora's
business initiatives and served as an executive officer and a
member of the company's executive committee.
Prior to her appointment as General Counsel, Ms. Comparato had
served as a Managing Director and General Counsel of Syncora
Guarantee Inc. (formerly XL Capital Assurance Inc.) the
financial guarantee subsidiary of Syncora, since 2004. During
that time, she played an integral role in Syncora's transition
to a public holding company. Ms. Comparato joined Syncora
Guarantee Inc. in 2001 serving as associate general counsel
with a focus on asset-backed securities and collateralized debt
obligations.
Prior to joining Syncora Guarantee Inc., Ms. Comparato worked
for Barclays Capital, where she was an associate director, risk
finance. Ms. Comparato began her career at Sidley & Austin, as
an associate attorney in the securitization group. She
graduated magna cum laude from Georgetown University with a B.S.
in Finance. She received a J.D. from the College of William and
Mary. Ms. Comparato is a member of the Association of Financial
Guaranty Insurers' government affairs committee.
About Syncora Holdings
Syncora Holdings Ltd., formerly Security Capital Assurance Ltd.,
is a Bermuda-domiciled 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. SCA has
announced that it will formally change its corporate name to
Syncora Holdings Ltd. on Aug. 4, 2008. XLCA and XLFA will be
renamed Syncora Guarantee Inc. and Syncora Guarantee Re Ltd,
respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2008, Moody's Investors Service confirmed its
provisional rating on senior debt at (P)Caa3, provisional rating
on subordinated debt at (P)Ca and preference shares at Ca with a
negative outlook on Syncora Holdings Ltd.
In August 2008, Fitch Ratings downgraded these ratings on
Security Capital Assurance Ltd. and its financial guaranty
insurance subsidiaries and placed all ratings on Rating Watch
Evolving:
-- Long Term Issuer Rating to 'CCC-' from 'B-';
-- US$250 million Fixed/Floating Series A Perpetual
Non-cumulative Preference Shares to 'CCC-' from 'CCC'.
TCR-Latin America reported on July 31, 2008, that Standard &
Poor's Ratings Services said its 'C' long-term credit rating on
Security Capital Assurance Ltd. remains on CreditWatch with
negative implications.
=============
B O L I V I A
=============
COEUR D'ALENE: Hires Humberto Rada as President for SouthAm Unit
----------------------------------------------------------------
Coeur d'Alene Mines Corporation has appointed Humberto Rada as
the new President of Coeur's Bolivian subsidiary, Empresa Minera
Manquiri, S.A., and of Coeur South America. Mr. Rada will lead
all the company's activities in South America, including its
existing activities in Bolivia, Chile and Argentina. Coeur
recently began operations at its new San Bartolome silver mine,
located in Potosi, Bolivia, which is expected to produce
3.2 million ounces of silver this year and approximately
9.0 million ounces in 2009.
Mr. Rada has over 23 years of experience in South American
mining management, most recently as General Manager of Empresa
Minera Inti Raymi S.A., a Bolivian subsidiary of Newmont Mining
Corporation. He is currently President of Bolivia's National
Mining Association.
?We are very pleased that Humberto, with his extensive South
American mining management, operations, financial, and
government experience, has joined the Company as its new
President of our Bolivian subsidiary, Empresa Minera Manquiri,
and Coeur South America,? said Dennis E. Wheeler, Chairperson,
President, and Chief Executive Officer of Coeur. ?We look
forward to his contributions and leadership as we further our
goal of creating a leading Bolivian and South American mining
company.?
His numerous awards include Executive of the Year from New
Economy Magazine; Remarkable Bolivian from Enfoques Magazine; as
well as more than ten local and international awards in the
areas of corporate social responsibility, environmental and best
business practices, and safety and health. Mr. Rada received
his bachelor degrees in Business Administration, Economic
Sciences and Public Accounting from the University of Chile.
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 million notes due
Jan. 15, 2024, carry Standard & Poor's Ratings Services B-
rating.
===========
B R A Z I L
===========
ADVANCED MICRO: Fitch Holds 'CCC/RR6' Sr. Unsecured Debt Rating
---------------------------------------------------------------
Fitch has affirmed these ratings on Advanced Micro Devices Inc.:
-- Issuer Default Rating at 'B-';
-- Senior unsecured debt at 'CCC/RR6'.
The rating outlook is negative.
The ratings and outlook continue to reflect:
-- Fitch's expectations that AMD's operating performance will
remain relatively weak over the near term, despite recent
new product introductions, due in part to key product
delays in 2007, enabling Intel Corp. to strengthen its
market leadership position with a refreshed product
portfolio.
Nonetheless, for the second half of 2008, AMD should
benefit from approximately 10% unit growth for the broader
microprocessor industry, although Fitch believes the
currently challenged consumer macroeconomic environment
will disproportionately impact AMD, given its greater
consumer exposure than Intel, on a relative basis.
Increased unit demand for its new quad-core Opteron and
graphics chips and lower fixed costs due to ongoing
restructuring also should bolster AMD's operating
performance. However, Fitch believes meaningful
profitability expansion will be constrained by pressured
average selling prices, driven by Intel's low-cost
manufacturing footprint and increased sales of lower-priced
models into developing markets.
-- AMD's limited financial flexibility and modest liquidity
position was supported by approximately US$1.4 billion of
cash and cash equivalents at June 28, 2008, not including
approximately US$180 million of auction rate securities the
company classifies as marketable securities but that Fitch
believes do not represent a reliable source of liquidity
over the near term. While liquidity has been bolstered by
approximately US$200 million of proceeds from the sale of
200-millimeter tools during the first half of 2008, Fitch
expects free cash flow will approach negative US$1 billion
for the full year absent AMD cutting capital spending
further from the currently planned US$900 million. The
company believes it could raise an additional
US$250 million via the sales of non-operating assets,
mostly administrative buildings, although Fitch views this
as a more likely 2009 event.
Additionally, during the quarter ended June 28, 2008, the
company announced its intention to sell its handheld and digital
television business acquired with ATI Technologies, potentially
adding modestly to liquidity. AMD also entered into an accounts
receivable sales program with IBM Credit Corp., which provided
an additional US$60 million of liquidity as of the end of the
second quarter. Nonetheless, in the absence of meaningfully
higher-than-expected free cash flow generation and/or additional
asset sales, Fitch expects AMD's cash levels will approach US$1
billion exiting 2008.
In Fitch's opinion, additional negative rating actions will
likely occur if AMD depletes its current cash balance at a
faster-than-expected pace or if profitability contracts further.
Alternatively, the ratings could be stabilized over the next few
quarters if AMD steadily improves profitability or bolsters
financial flexibility by obtaining additional external funding.
Ratings concerns continue to center on:
-- Significant product technology risk associated with the MPU
market, resulting in cyclical operating results.
Furthermore, Fitch believes AMD's ability to withstand
technology roadmap missteps is constrained by the company's
limited market share and financial flexibility.
-- Intel's meaningful manufacturing technology advantage over
AMD, driven by capital expenditures consistently in excess
of US$5 billion, pressuring AMD to continue investing
aggressively to upgrade its manufacturing facilities.
-- Fitch's expectations that AMD's debt levels will remain
high and likely increase, driven by the company's
investment requirements, thereby constraining AMD's
financial flexibility for the foreseeable future. However,
Fitch believes the successful implementation of AMD's
planned (although not yet announced) 'asset light' strategy
could meaningfully reduce capital spending requirements.
The ratings are supported by:
-- Expectations for solid MPU unit growth and AMD's relatively
consistent market share over the next couple of years.
-- The company's strengthened and expanding relationships with
all personal computer original equipment manufacturers, ]
driven in part by AMD's enhanced ability to provide
platform products to the marketplace following the
acquisition of ATI Technologies in October 2006.
-- AMD's staggered and longer-term debt maturities, as well as
its now proven willingness to cut capital spending in the
face of less-favorable market conditions.
At June 28, 2008, total debt was US$5.3 billion, and consisted
of:
-- US$858 million of debt related to Fab 36, including
US$795 million of Fab 36 Euro Term Loan due 2011.
-- US$1.5 billion 5.75% convertible senior unsecured notes due
2012;
-- US$2.2 billion 6% senior unsecured convertible notes due
2015;
-- US$390 million 7.75% senior unsecured notes due 2012; and
-- other debt, including capital leases, of approximately
US$313 million.
The Recovery Ratings reflect Fitch's belief that AMD would be
reorganized rather than liquidated in a bankruptcy scenario,
given Fitch's estimates that the company's reorganization value
of approximately US$1.8 billion exceeds a projected liquidation
value of approximately US$970 million, driven by AMD's improved
operating EBITDA in the first half of 2008 versus that of 2007.
Furthermore, Fitch believes AMD's role as a viable alternative
microprocessor supplier to Intel, which currently has nearly 80%
market share, supports the case for reorganizing rather than
liquidating AMD in a bankruptcy scenario.
To arrive at a reorganization value, Fitch applies a 30%
discount its estimate of AMD's operating EBITDA for the latest
12 months ended June 28, 2008, of approximately US$511 million,
reflecting the company's substantial historical operating
volatility. Fitch assumes a 5 times reorganization multiple and
arrives at an adjusted reorganization value of approximately
US$1.6 billion after subtracting administrative claims. Based
upon these assumptions, and given that approximately
US$1 billion of unrated borrowings is related to Fab 36 and
capital leases, which Fitch views as essentially secured,
minimal recovery (0%-10%) would be available for the
approximately US$4.1 billion of senior unsecured debt, resulting
in 'RR6' ratings.
Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative
processing solutions in the computing, graphics and consumer
electronics markets. Outside the United States, the company
has subsidiaries in Belgium, Brazil, China, Germany, Japan,
Malaysia and Bermuda.
At June 28, 2008, the company's consolidated balance sheet
showed US$9.8 billion in total assets, US$8.1 billion in total
liabilities, US$189 million in minority interest in consolidated
subsidiaries, and US$1.5 billion in total stockholders' equity.
BANDEIRANTE ENERGIA: Moody's Reviews Ba2 Rating for Upgrade
-----------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Bandeirante Energia S.A. under review for possible upgrade:
-- Senior Unsecured Issuer Ratings: Ba2 and Aa3.br
Headquartered in Sao Paulo, Brazil, Bandeirante Energia SA --
http://www.bandeirante.com.br/-- is involved in the generation,
transmission, distribution and sale of electricity for public,
industrial and private consumption. The company operates in 28
municipalities in the state of Sao Paulo. It is a subsidiary of
Energias do Brasil SA.
BANCO NACIONAL: Breaks Record of US$79 Bil. Loans in June 2008
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA, a.k.a.
BNDES, disbursements accrued in the last 12 months ended in
June 2008 reached BRL78.8 billion, corresponding to a 34%
increase. This record performance reflects the effects of the
expanding cycle of investment taking place in the Brazilian
economy. So much so that in the second quarter of 2008, BNDES
approvals also reached the highest levels in history,
BRL111.8 billion until June.
Investments in infrastructure and in the industrial area
accounted for BRL63.7 billion, 81.7% of the total disbursements
in 12 months. One of the highlights in BNDES performance in the
period consists in the growing disbursements for the
infrastructure area. In the 12 months ended in June,
disbursements for the sector grew 80%, reaching BRL32.5 billion.
Disbursements for infrastructure projects skyrocketed in 2007.
As for the industry, this process started long ago, in 2005,
reaching a peak in 2006. Increasing disbursements for
infrastructure in such period were mainly due to road transport
and electric power. Altogether, these accounted for
BRL22 billion, that is to say, 68% of disbursements for this
sector.
The industry was granted BRL31.2 billion, corresponding to the
5% increment. Such regular performance was the outcome of the
decrease in loans to the industry of transport materials
intended to exports. It is a peculiar behavior not portraying,
thus, the trends of investments in the industry. To such an
extent that by removing from the statistics the loans to this
sector, disbursements for the industry increase by 19.7%.
By assessing the figures, we can see changes in the profile of
disbursements. The industry used to focus on operations for
exports that, due to the replacement of BNDES funds with funds
from the foreign market, have lost share in the Bank's
disbursements.
On the other hand, there was a sharp increase in disbursements
for investments in the domestic market. In 12 months, loans for
projects designed to meet domestic demands grew 23%.
As opposed to infrastructure, in the industry we can see a
greater dispersion of sectors, especially food and beverages,
the chemical and petrochemical and textile and clothing.
Semi-annual result
Disbursements in the first six months of the year also recorded
the highest historic level in the period, reaching
BRL37.9 billion. Out of this total, 42% were intended to the
industry (BRL16 billion) and 40% to infrastructure
(BRL15.2 billion), the most outstanding sector due to the
massive disbursements and project approvals in BNDES. In the
first six months of 2008, disbursements for investments in
infrastructure grew 83% as compared to the same period last
year. This is twice the growth in the industry, of 43% as
compared to the first six months of the previous year.
In this semester, the highlights are the road transports, 79.8%
higher, and electric power, 42% higher on disbursements due to
the loans to the investments made under the Growth Acceleration
Program (PAC). This process will go on over the second semester
of 2008, due to the expressive volume of projects in BNDES
portfolio.
Approvals reached BRL111.8 billion year to date, ended as of
June, representing a 30% growth as compared to the same period
of the previous year. This good performance is sharpened in the
first semester of the year, when the total reached
BRL51.2 billion, 34% higher than the first six months of 2007.
Infrastructure projects approved grew 14% as compared to the
same period in 2007, which is a sign that disbursements for the
sector will keep on growing.
In the industry, the 59.5% increase in approvals in the first
semester was influenced by some major operations for the mining,
food and beverage areas. In the year to date, the 15.3%
expansion reflects the widest demand in the mining, textile and
clothing and beverage and food sector.
Disbursements are expected to keep on growing. In the year to
date, approvals have been above disbursements, with difference
above BRL30 billion. Infrastructure must be ahead of other
sectors. As for the industry, growth in disbursements tends to
be kept under the pressure of operations for the domestic
market.
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.
BANCO NACIONAL: Grants BRL128 Mil. Loan to Brasil Bioenergia
------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA, a.k.a.
BNDES, approved BRL128 million financing to BBE ? Brasil
Bioenergia S.A. for the construction of an integrated unit to
extract vegetable oil and produce biodiesel, in Nova Andradina,
Mato Grosso do Sul. The project will generate 140 direct jobs
and around 3,000 indirect employment opportunities. The amount
corresponds to 80% of the total investment, around
BRL160 million.
BNDES' funds will be given through the financing facility for
renewable energy infrastructure projects intended to diversify
the Brazilian energy matrix, in order to contribute to national
self-sufficiency in the sector and foster the production of
renewable and more environmentally friendly fuels.
The project will create around 140 new direct jobs and about
three thousand indirect jobs, mainly in the area of small scale
agriculture, as at least 10% of the feedstock will acquired from
this sector, in order to fulfill the requirements of Selo
Combustivel Social (Social Fuel Stamp), granted by the Ministry
of Land Development.
The green oil used to produce biodiesel will be extracted from
soybeans. However, the company currently analyses the
possibility of gradually replacing this grain by Barbados nut,
an oily seed presenting greater concentration of oil and less
crushing costs.
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.
CEMIG DISTRIBUICAO: Moody's Puts Ba2 Issuer Rating Under Review
---------------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Cemig Distribuicao S.A. under review for possible upgrade:
-- Senior Unsecured Issuer Ratings: Ba2 and Aa3.br
Cemig Distribuicao S.A. is headquartered in Belo Horizonte,
Brazil.
CEMIG GERACAO: Moody's Reviews Ba2 Rating for Likely Upgrade
------------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Cemig Geracao Transmissao S.A. under review for possible
upgrade:
-- Senior Unsecured Issuer Ratings: Ba2 and Aa3.br
Cemig Geracao Transmissao S.A. is headquartered in Belo
Horizonte, Brazil.
COMPANHIA ENERGETICA: Moody's Reviews Ba2 CFR for Likely Upgrade
----------------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Companhia Energetica de Minas Gerais under review for possible
upgrade:
-- Corporate Family Ratings: Ba2 (Global Local Currency
Rating)
-- Aa3.br (National Scale Rating -NSR)
Companhia Energetica de Minas Gerais a.k.a. Cemig --
http://www.cemig.com.br/-- is an electric energy utility in
Brazil. Cemig's concession area extends throughout nearly 96.7%
of Minas Gerais. Cemig owns and operates 52 power plants, of
which six are in partnership with private enterprises, relying
on a predominantly hydroelectric energy matrix. Electric energy
is produced to supply more than 17 million people living in the
state's 774 municipalities. In addition to those 52 plants,
another three are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
COMPANHIA PARANAENSE: Moody's Reviews Ba2/Ba1 Rtngs for Upgrade
---------------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Companhia Paranaense de Energia under review for possible
upgrade:
-- Corporate Family Ratings: Ba2 and Aa2.br
-- Senior Secured Ratings: Ba1 and Aa1.br
Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/ir-- (NYSE: ELP/LATIBEX:
XCOP/BOVESPA: CPLE3, CPLE5, CPLE6) transmits and distributes
electricity to more than 3 million customers in the state of
Parana and has a generating capacity of nearly 4,600 megawatts,
primarily from hydroelectric plants. The company also offers
telecommunications, natural gas, engineering, and water and
sanitation services. The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitely postponed. In response, Copel is
re-evaluating its corporate structure. The government of Parana
controls about 59% of Copel.
DUKE ENERGY: Moody's Reviews Ba2 Rating for Possible Upgrade
------------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Duke Energy International, Geracao Paranapanema S.A. S.A. under
review for possible upgrade:
-- Corporate Family Ratings: Ba2 and A1.br
Duke Energy International Geracao Paranapanema SA is engaged in
the generation of electric power in Sao Paulo, Brazil. The
Company is a subsidiary of Duke Energy International,
representing its primary interest in the Brazilian market. The
Company operates eight hydroelectric generation facilities with
2,237 net megawatts of capacity on the Paranapanema River in
southwestern Sao Paulo. Its Paranapanema River facilities
include Canoas I, generating 83 megawatts; Canoas II, generating
72 megawatts; Capivara, generating 640 megawatts; Chavantes,
generating 414 megawatts; Jurumirim, generating 98 megawatts;
Rosana, generating 372 megawatts; Salto Grande, generating 74
megawatts, and Taquarucu, generating 554 megawatts. All of the
plants encompass reservoirs. Harnessing the river has enabled
stabilization of 90.5% of the average flow, which helps flood
prevention and irrigation of the surrounding region.
ENERGIAS DO BRASIL: Moody's Reviews Ba2 CFR for Likely Upgrade
--------------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Energias do Brasil S.A. under review for possible upgrade:
-- Corporate Family Ratings: Ba2 and Aa3.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%.
ENERGISA S.A.: Moody's Puts Ba3 CFR Under Review for Upgrade
------------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Energisa S.A. under review for possible upgrade:
* Energisa S.A.
-- Corporate Family Ratings: Ba3 and A3.br
-- Guaranteed Notes Units issued by Energisa Sergipe and
Energisa Paraiba: Rating Ba3
ESPIRITO SANTO: Moody's Reviews Ba2/Ba3 Ratings for Upgrade
-----------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Espirito Santo Centrais Eletricas under review for possible
upgrade:
-- Senior Unsecured Issuer Ratings: Ba2 and Aa3.br
-- Unsecured Subordinated Ratings: Ba3 and A2.br
Headquartered in Vitoria, Brazil, Espirito Santo Centrais
Eletricas S.A. - Escelsa is an electricity distribution utility,
serving approximately 1,071,100 clients in the state of Espirito
Santo with net revenues of BRL1,165 million (US$540 million) in
the last twelve months ended March 31, 2007.
GLOBAL CROSSING: Offers Network Services to Norskan in Brazil
-------------------------------------------------------------
Global Crossing Ltd. has provided Private Internet Protocol
Network Services and Network Management Services to Norskan
Offshore, a leading Brazilian offshore services provider owned
by Norwegian Group DOF, the second largest Norwegian investor in
Brazil.
Norskan Offshore has invested nearly US$700 million in the
Brazilian naval industry and currently has six state-of-the-art
vessels. Global Crossing's MPLS-based network connects both the
shipyards and also the company's headquarters. As part of a
three-year contract signed in September 2007, Global Crossing is
also providing Network Management Services to Norskan Offshore
in four sites in Rio de Janeiro -- Botafogo, Ilha do Governador,
Niteroi and Macae.
?As we continue to expand our operations in Brazil, it is
critical for us to rely on a strategic partner like Global
Crossing,? said Hans Falnes Ellingsen, president of Norskan.
?We're benefiting from Global Crossing's high quality services,
which provide us the reliability, performance and security that
we need to maintain the high quality of our communications
activities.?
Through Global Crossing Network Management Services, Global
Crossing can partially or entirely manage a customer's
communications infrastructure. These services were recently
expanded in Latin America and are operated by a dedicated team,
24x7, which includes monitoring technicians, operation
engineers, managing engineers and service managers.
?We're very pleased that Norskan Offshore selected Global
Crossing to support their growth in Brazil,? said Marcos
Malfatti, Global Crossing's senior vice president of sales in
Brazil. ?We strive to provide the best services and solutions
to our customers, so that they can focus on their core
business.?
Global Crossing's Internet Protocol softwares are fully managed,
converged Internet Protocol softwares designed to seamlessly
combine data, voice, video and multimedia applications on a
single IP-based platform. The company offers solutions that
provide true global reach, scalable connectivity, greater
security, guaranteed quality of service, multiple access
options, and flexible billing options.
About Norskan Offshore
With its headquarters in Rio de Janeiro, Norskan Offshore --
http://www.norskan.com.br/-- is a Brazilian company owned by
Norwegian Group DOF, the second largest Norwegian investor in
Brazil. In only six years of operation, Norskan has six state-
of-the-art vessels available to the Brazilian offshore market,
meeting the goal established in its foundation of building one
vessel per year.
About Global Crossing Latin America
Global Crossing's Latin American business has operations in
Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru,
Mexico, Venezuela and the United States (Florida). In addition
to its IP-based fiber-optic network, Global Crossing's regional
infrastructure includes 15 metropolitan networks and 15 world-
class data centers located in the main business centers of Latin
America.
Global Crossing's reach and experience in Latin America allow it
to address the particularities of the region and deliver the
solutions each company needs. The company provides services to
a variety of customers, including medium and large companies and
corporations, institutions and government entities, and
telecommunications operators.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network. Global Crossing serves many of the
world's largest corporations, providing a full range of managed
data and voice products and services. The company filed for
chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188). When the Debtors filed for protection from their
creditors, they listed US$25,511,000,000 in total assets and
US$15,467,000,000 in total debts. Global Crossing emerged from
chapter 11 on Dec. 9, 2003.
Global Crossing's Latin American business has operations in
Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru,
Mexico, Venezuela and the United States (Florida). It also has
operations in the United Kingdom.
* * *
At Sept. 30, 2007, Global Crossing Ltd.'s balance sheet showed
total assets of US$2.6 billion, total debts of US$2.7 billion
and a US$74 million stockholders' deficit.
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Global Crossing Ltd. said in a statement that its
net loss increased 75% to US$89 million in the third quarter
2007, compared to US$51 million in the third quarter 2006.
GRAN TIERRA: 2nd Quarter Net Income Increases to US$8.5 Million
---------------------------------------------------------------
Gran Tierra Energy Inc. released its financial and operating
results for the second quarter ended June 30, 2008.
Total revenue for the second quarter of 2008 was US$33.1 million
compared to US$3.8 million for the same quarter of 2007, and
US$20.8 million for the first quarter of 2008. Net income for
the quarter was US$8.5 million, compared to a net loss of
US$5.1 million for the corresponding quarter of 2007, and
compared to net income of US$4.7 million for the first quarter
of 2008.
For the six month period ended June 30, 2008, revenue was
US$54 million compared to US$8.3 million for same period of
2007. Net income for the period was US$13.2 million, compared
to a net loss of US$11.7 million for the same period of 2007.
Cash and cash equivalents were US$35.3 million at June 30, 2008
compared to US$18.2 million at Dec. 31, 2007, and US$26 million
at the end of the first quarter of 2008. Total working capital
was US$31.7 million at June 30, 2008, compared to US$8.1 million
at Dec. 31, 2007. Shareholders' equity was US$107.6 million at
June 30, 2008, compared to US$76.8 million at Dec. 31, 2007.
The company has no long-term debt.
Average oil production for the second quarter of 2008 was 3,399
oil barrels per day, net after royalty, compared to 1,021
barrels per day for the same quarter of 2007, and 2,842 barrels
per day for the first quarter 2008. Second quarter oil
production in Argentina grew to 557 barrels per day, net after
royalty, from 476 barrels per day for the first quarter 2008,
and second quarter oil production in Colombia grew to 2,842
barrels per day, net after royalty, from 2,366 barrels per day
for the first quarter 2008. The company's current production is
averaging approximately 4,100 barrels per day, net after
royalty.
Average oil production for the six month period ended June 30,
2008 was 3,121 barrels per day, net after royalty, compared to
1,140 barrels per day, net after royalty, for the comparable
period of 2007.
Average realized oil sales prices, net after royalty, were
US$106.80 per barrel for the second quarter of 2008 and US$94.69
per barrel for the six months ended June 30, 2008.
The company attained several operational milestones in the
second quarter of 2008 that it believes should lead to continued
growth for the balance of 2008 and beyond. In Colombia,
development activities at the Costayaco Field continued. The
company drilled Costayaco-3 and -4, and initiated drilling
Costayaco-5 which has since been completed. Truck loading and
unloading facilities for crude transportation were constructed,
and pipeline construction for a line to connect the Costayaco
Field to the existing pipeline system was initiated. This line
has since been completed and is currently being tested. A
mid-year independent reserve engineering report for the
Costayaco field was completed. It reported that effective
July 1, 2008, the Costayaco field had gross proved reserves of
20.5 million barrels of oil, gross proved plus probable reserves
of 34.9 million barrels of oil and gross proved plus probable
plus possible reserves of 61.4 million barrels of oil.
In addition, the company drilled an exploration well in the Rio
Magdalena Block, Popa-2, which is currently being tested. In the
Azar Block, the company tested the Palmera-1 well and
development plans for the well are currently being evaluated.
In Argentina, the company completed plans for drilling the
Proa.x-1 exploration well in the Surubi Block and is currently
drilling this well. In Peru, results of a new 20,000 linear
kilometer aeromagnetic and gravity data program over Blocks 122
and 128 are being evaluated and an environmental impact
assessment has been initiated in preparation for 2-D seismic
data acquisition in late 2009.
Commenting on the results of the quarter, Gran Tierra President
and Chief Executive Officer, Dana Coffield stated, ?The
outstanding second quarter 2008 results represent the fourth
consecutive quarterly increase in revenues and profitability.
This continuous quarter over quarter growth is the direct result
of our focus on developing the full breadth of our exploration
and development portfolio as efficiently as possible, with the
success of the Costayaco field remaining the focus of our
capital program.?
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.
RIO GRANDE: Moody's Reviews Ba2 Sr. Unsecured Rating for Upgrade
----------------------------------------------------------------
Moody's has upgraded the supportiveness of Brazil's regulatory
environment (SRE) to 3 from 4. In accordance with Moody's
Rating Methodology: Global Regulated Electric Utilities,
published in March 2005, the SRE category 4, the least
supportive environment, is characterized by a regulatory
framework that is still under development, is unclear or
undergoing considerable change.
Moody's now considers that the Brazilian regulatory framework
should be classified in SRE category 3, primarily due to the
fact that regulated utilities can recover costs and maintain
adequate returns, even after going through a period of
electricity rationing and high inflation. The development of
the regulatory environment has also been evidenced by recent
decisions for the second five-year periodic tariff reviews for
distribution companies. Although the reviews have resulted in
an average reduction of 8.6% in tariffs to date, Moody's view is
that the new tariff levels still will allow a fair return on
invested capital and assets.
Finally, Moody's rating for foreign currency bonds of the
Republic of Brazil has been upgraded from B1 to Ba1 since
Moody's originally classified Brazil in the SRE 4 category in
March 2005.
SRE category 3 indicates a regulatory framework that is well
developed, but which has lower assurance of timely cost
recovery. In addition, there may be some evidence of
inconsistency or unpredictability in the way that the regulatory
framework has been applied. The lower assurance of timely
recovery of costs and investments reflects the fact that
Brazil's new framework has not yet experienced the stress of a
prolonged period of high inflation, exchange rate devaluation or
electricity rationing since it was implemented in 2004. Also,
given that the framework is still relatively new, there still
exists some degree of unpredictability in the way that it will
be applied, especially since Brazil's federal regulator (ANEEL)
is not fully independent of the government.
In light of the upgrade of the supportiveness of Brazil's
regulatory environment, Moody's is also placing the ratings of
Rio Grande Energia S.A. under review for possible upgrade:
-- Senior Unsecured Ratings: Ba2 and Aa2.br
Headquartered in Porto Alegre, Brazil, Rio Grande Energia SA --
http://www.rge-rs.com.br-- is engaged in the research,
planning, design, construction and operation of systems of
production, transformation, transportation, storage,
distribution and sale of hydroelectric energy for the state of
Rio Grande do Sul. The company operates as a subsidiary of CPFL
Energia S.A.
==========================
C A Y M A N I S L A N D S
==========================
BANKBOSTON TRUST: Sets Final Shareholders Meeting for Aug. 15
-------------------------------------------------------------
BankBoston Trust Company (Cayman Islands) Ltd. will hold its
final shareholders meeting on Aug. 15, 2008, at 9:00 a.m., at
the offices of Bank of America, 1633 Broadway, New York, NY
10019.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidators of the company to retain the
records of the company for a period of six years from the
dissolution of the company, after which they may be
destroyed.
BankBoston Trust's shareholders agreed on June 25, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
George C. McLaughlin
c/o Bank of America
29th Floor, 1633 Broadway
New York, NY 10019
Telephone: (212)497-5601
Fax: (704)719-5227
CRESCENT GLOBAL: Will Hold Final Shareholders Meeting on Aug. 15
----------------------------------------------------------------
Crescent Global Capital Management Ltd. will hold its final
shareholders meeting on Aug. 15, 2008, at 10:00 a.m., at the
offices of Close Brothers (Cayman) Limited, 4th Floor Harbour
Place, George Town, Grand Cayman, Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidators of the company to retain the
records of the company for a period of six years from the
dissolution of the company, after which they may be
destroyed.
Crescent Global's shareholder decided on June 24, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Linburgh Martin and Jeff Arkley
c/o Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034
Grand Cayman, Cayman Islands
Contact for inquiries:
Neil Gray
Telephone: (345)949-8455
Fax: (345)949-8499
CRESCENT VENTURE: Sets Final Shareholders Meeting on Aug. 15
------------------------------------------------------------
Crescent Venture Partners Ltd. will hold its final shareholders
meeting on Aug. 15, 2008, at 10:00 a.m., at the offices of Close
Brothers (Cayman) Limited, 4th Floor Harbour Place, George Town,
Grand Cayman, Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidators of the company to retain the
records of the company for a period of six years from the
dissolution of the company, after which they may be
Crescent Venture's shareholder decided on June 24, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Linburgh Martin and Jeff Arkley
c/o Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034
Grand Cayman, Cayman Islands
Contact for inquiries:
Neil Gray
Telephone: (345)949-8455
Fax: (345)949-8499
HH SUPPLY: Deadline for Proofs of Claim Filing Is Aug. 15
---------------------------------------------------------
HH Supply Inc.'s creditors have until Aug. 15, 2008, to prove
their claims to David M.L. Roberts and Jonathan Nicholson, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
HH Supply's shareholders agreed on June 26, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
David M.L. Roberts and Jonathan Nicholson
P.O. Box 1569
Grand Cayman, Cayman Islands
Telephone: (345)949-4018
Fax: (345)949-7891
PARMALAT SPA: Splits Ways With Murray Over Dairy Farmers Bid
------------------------------------------------------------
Parmalat S.p.A. has withdrawn from negotiations with Murray
Goulburn Cooperative Co. over the creation of a consortium for
acquiring Australian Co-Operative Foods Ltd.
Parmalat said that no mutually satisfactory resolution on terms
and conditions was reached.
As appeared in the TCR-Europe, Parmalat and Murray will create a
joint venture, Fresh Dairy Co., which would merge their and
Dairy Farmers' fresh milk operations. Fresh Dairy -- in which
Parmalat would hold a 51% stake and operational control while
Murray would own 49% -- is expected to dominate over 50% of the
Australian fresh white milk market.
Murray, meanwhile, would acquire Dairy Farmers' non-fresh dairy
operations, which include cheese, UHT milk and milk powder.
Parmalat, through its Parmalat Australia unit, and Murray
submitted a joint non-binding bid to acquire Dairy Farmers. The
consortium have also applied for clearance from AAAC to submit a
binding offer.
About Parmalat
Based 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.
SILICON LIGHT: To Hold Final Shareholders Meeting on Aug. 15
------------------------------------------------------------
Silicon Light Machines (Cayman) Ltd. will hold its final
shareholders meeting on Aug. 15, 2008, at 10:00 a.m., at the
offices of Close Brothers (Cayman) Limited, 4th Floor Harbour
Place, George Town, Grand Cayman, Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidators of the company to retain the
records of the company for a period of six years from the
dissolution of the company, after which they may be
destroyed.
Silicon Light's shareholder decided on June 24, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Linburgh Martin and Jeff Arkley
c/o Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034
Grand Cayman, Cayman Islands
Contact for inquiries:
Neil Gray
Telephone: (345)949-8455
Fax: (345)949-8499
VILLA EMERALD: Proofs of Claim Filing Deadline Is Aug. 15
---------------------------------------------------------
Villa Emerald Ltd.'s creditors have until Aug. 15, 2008, to
prove their claims to Rene K. Hislop, 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.
Villa Emerald's shareholders agreed on May 20, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Rene K. Hislop
c/o 13 Cardinal Avenue, Waterford Building
P.O. Box 1775
Grand Cayman, Cayman Islands
Telephone: (345)949-7677
Fax: (345)949-2634
==================
C O S T A R I C A
==================
BROTHERS FUND: Creditors May Wait Up to 10 Years to Get Paid
------------------------------------------------------------
The Brothers Fund's creditors may have to wait up to 10 years to
receive a small portion of what they are actually owed, Elise
Sonray A.M. Costa Rica reports, citing Andrea Marin Mena, a
court spokesperson.
According to A.M. Costa Rica, brothers Luis Enrique and Oswaldo
Villalobos operated The Brothers Fund, a high-interest borrowing
business in the San Pedro Mall in Costa Rica that had investors
who were mostly from North America.
Post-Gazette Staff Writer Torsten Ove relates that lured by high
returns, investors joined by invitation. For 20 years, the fund
paid up to 3.5 percent interest in cash every month to some
6,400 American retirees who didn't ask too many questions.
The Post-Gazette said the Brothers Fund ran smoothly until in
2001 when Canadian police said Canadian drug dealers were using
it to launder money and Costa Rican officials began suspecting
the fund was a giant Ponzi scheme.
A.M. Costa Rica relates that after a trial court had ruled that
the fund was a ponzi scheme or a fraudulent investment operation
that involves promising or paying very high profits to investors
out of the money paid in by subsequent investors, the Villalobos
brothers closed the fund's offices in October 2002 and didn't
pay allegedly US$1 billion in debts to investors.
The allegedly US$1 billion missing funds prompted Peter K.
Blume, a lawyer at the Downtown Pittsburgh law firm Thorp Reed &
Armstrong, to write a threatening letter to the president of
Costa Rica in March 2003, Post-Gazette said. Mr. Blume
represented Cornerstone Investment Circle LLC, a California
money-management firm, that invested US$8 million in the fund.
According to A.M. Costa Rica, Oswaldo was placed in prison,
where he would spend 18 years, after a court found him guilty of
fraud and illegal banking in May. The court also awarded money
to those who had filed claims, A.M. Costa Rica states. Luis
Enrique left Costa Rica and remains a fugitive, the report says.
The same report relates that Ms. Marin said authorities were
able to freeze some of the Villalobos accounts, allegedly at
US$7 million.
Claimants must submit a document declaring who they are and what
they were awarded in the trial, A.M. Costa Rica reports. Those
who worked with private lawyers must have a private lawyer file
their claim, and for those who were represented by the state,
the Ministerio Publico will do it for them, A.M. Costa Rica
says, citing Ms. Marin. A.M. Costa Rica relates that Ms. Marin
said claimants abroad who were represented privately in the case
must contact their attorney in Costa Rica to file a claim for
them, and their signatures and other details must be done
through a Costa Rican consulate or embassy. The claimants have
10 years to file claims, A.M. Costa Rica quoted Maria Isabel
Hernandez Guzman, another court spokesperson, as saying.
=================
G U A T E M A L A
=================
AFFILIATED COMPUTER: S&P Affirms 'BB' Corporate Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook on
Dallas, Texas-based Affiliated Computer Services Inc. (ACS) to
stable from negative. At the same time, S&P affirmed the 'BB'
corporate credit rating on the company. The outlook revision
reflects ACS' good market position, consistent financial
performance and moderate leverage for the rating.
?The current rating incorporates ACS' recent history of
cumulative debt-financed, net share repurchases of approximately
US$1.5 billion in fiscal 2006 and 2007, the March 2007 buyout
offer by private equity firm Cerberus Capital Management
(subsequently withdrawn in October 2007), and substantial senior
management and independent director turnover,? said Standard &
Poor's credit analyst Martha Toll-Reed. These factors are
partially mitigated by ACS' growing, annuity-like revenue
streams, solid historic profitability, and good cash-flow
generation. In addition, ACS' near-term ability to pursue a
more aggressive financial policy is limited by covenant
constraints in its existing credit facilities and current
capital markets conditions.
ACS reported fiscal 2008 revenues of US$6.2 billion, up 7% from
the prior year. ACS has maintained consistent EBITDA margins in
the low- to mid-20% area. A focus on higher-margin business
process outsourcing (more than three-quarters of total revenues)
and a growing, lower-cost offshore services capability has
enabled ACS to sustain higher margins than many of its
information technology or IT outsourcing peers. While ACS faces
competitive threats from larger, more globally positioned IT
providers, the company's very strong position in state and local
government outsourcing services provides a measure of ratings
stability.
ACS' capital requirements are expected to be moderate, at 6%-7%
of revenues, and free operating cash flow remains solid, at more
than US$700 million in the fiscal year ended June 2008. ACS'
current leverage (in the 3x area) is moderate for the rating,
given ACS' satisfactory business profile. At the 'BB' rating
level, S&P expects ACS to manage its debt leverage at 3x-5x over
the near-to-intermediate term, allowing the company to make
modest-size acquisitions or share repurchases.
Headquartered in Dallas, Texas, Affiliated Computer Services
Inc. (NYSE:ACS) -- http://www.acs-inc.com/-- provides business
process outsourcing and information technology services to
commercial and government clients. The company has two segments
based on the clients it serves: commercial and government. The
company provides services to a variety of clients including
healthcare providers and payers, manufacturers, retailers,
wholesale distributors, utilities, entertainment companies,
higher education institutions, financial institutions, insurance
and transportation companies. The company has global operations
in Brazil, China, Dominican Republic, India, Guatemala, Ireland,
Philippines, Poland, and Singapore.
=============
J A M A I C A
=============
SUGAR COMPANY: Gov't Soothes Worries Over Infinity Takeover
-----------------------------------------------------------
Jamaica Information Service reports that the Jamaican government
has said there is no cause for alarm in the divestment of the
Sugar Company of Jamaica Ltd.'s assets to Infinity Bio-Energy.
According to the government, Infinity Bio-Energy is a new firm
that started operating two years ago and it wasn't unusual for
companies to record losses in their first few years of operation
before revenues catch up with the initial capital expenditure
and outlays to meet operational expenses.
Jamaica Information relates that despite reduced market prices
for ethanol and sugar, Infinity Bio-Energy's revenues increased
to US$141 million in its second year of operation, from US$32.4
million in its first year.
The government said that comments allegedly made by Opposition
spokespersons Omar Davies and Roger Clarke are surprising since
Infinity Bio-Energy was one of eight firms pre-qualified under
the previous administration after due diligence involving a
thorough evaluation of its financial soundness and prospects.
Jamaica Information notes that the government believes Infinity
Bio-Energy can inject the capital required under the Heads of
Agreement with the government for the modernization of the
factories and the revitalization of the estates.
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
===========
BLOCKBUSTER INC: Posts US$41.9 Mil. Net Loss in 2008 2nd Quarter
----------------------------------------------------------------
Blockbuster Inc. disclosed its financial results for the second
quarter ended July 6, 2008.
Total revenues for the second quarter of 2008 increased 3.3%, or
US$41.3 million, to US$1.30 billion, as compared to the second
quarter of 2007. Net loss for the second quarter of 2008 was
US$41.9 million, as compared with a net loss of US$31.4 million,
for the second quarter of 2007, which included an
US$81.3 million gain on asset sale.
Net income improved US$70.8 million year-over-year, excluding
the prior year gain on asset sale. Adjusted net loss for the
second quarter of 2008 totaled US$36.1 million, a significant
improvement as compared with adjusted net loss of
US$96.5 million for the second quarter of 2007.
Adjusted EBITDA for the second quarter of 2008 improved
US$58.2 million to US$28.2 million, reflecting the positive
impact of the company's strategic initiatives, including the
increased availability of top new movies, improved store
merchandising, more effective pricing and a lower cost
structure.
?Our second quarter results mark Blockbuster's fourth
consecutive quarter of improved same-store sales,? said Jim
Keyes, Blockbuster's chairperson and chief executive officer.
?We are especially pleased with the 14.2 percent increase in
domestic same-store revenues, which includes a 6.5 percent
increase in rental revenues. Also, we are launching our movie
downloading service, Movielink(R), on blockbuster.com, giving
customers the ability to rent, buy and download thousands of
movies online. Our achievement of these strategic milestones
underscores that our efforts to transform Blockbuster into a
multi-channel provider of entertainment are working and are
contributing to our improved financial results.?
Second Quarter Financial Results
Total revenues for the second quarter of 2008 increased 3.3%, or
US$41.3 million, to US$1.30 billion, as compared to the second
quarter of last year primarily reflecting a 54.4% growth in
domestic merchandise revenues driven by a significant increase
in game sales.
Domestic same-store revenues increased 14.2% as compared to the
second quarter of 2007, driven by a 6.5% growth in same-store
rental revenues and a 69.2% increase in same-store merchandise
sales demonstrating the underlying strength of company's
emerging retail business. International same-store revenues
remained essentially flat as compared to the same period last
year, reflecting a 6.0% increase in same-store merchandise
sales, offset by a 4.3% decline in same-store rental revenues.
Worldwide same-store revenues grew 9.0% from the same period
last year.
Gross profit for the second quarter of 2008 increased
US$20.4 million to US$655.2 million as compared to the second
quarter of 2007 and gross margin remained essentially flat at
50.2%. General and administrative expenses for the period
declined US$17.3 million as a result of a smaller company-
operated store base and the company's ongoing cost reduction
actions. Advertising expense for the second quarter of 2008
totaled US$31.9 million as compared to US$54.8 million for the
second quarter of 2007.
Cash flow used for operating activities increased
US$23.1 million to US$63.4 million for the second quarter of
2008 from cash used of US$40.3 million for the second quarter of
2007. Free cash flow decreased US$24.3 million to a negative
US$84.1 million for the second quarter of 2008 from a negative
US$59.8 million for the second quarter of 2007. Both changes
were primarily the result of changes in working capital pursuant
to the company's investment in additional game hardware,
software and accessories for all domestic stores during the
second quarter of 2008.
A full-text copy of the company's press release containing
additional financial and operational information, including the
calculation of adjusted results and the reconciliations of other
non-GAAP financial measures, is available for free at:
http://researcharchives.com/t/s?308d
About Blockbuster Inc.
Based in Dallas, Texas, Blockbuster Inc. (NYSE: BBI,
BBI.B) -- http://www.blockbuster.com/-- is a leading global
provider of in-home movie and game entertainment, with over
7,800 stores throughout the Americas, Europe, Asia and
Australia. The company maintains operations in Brazil, Mexico,
Denmark, Italy, Taiwan, and Australia.
At April 6, 2008, the company's consolidated balance sheet
showed US$2.69 billion in total assets, US$1.98 billion in total
liabilities, and US$706.5 million in total stockholders' equity.
* * *
In December 2007, Fitch Ratings affirmed Blockbuster Inc.'s
long-term Issuer Default Rating at 'CCC' and the senior
subordinated notes at 'CC/RR6'. The rating outlook is stable.
BLUE WATER: Amends Chapter 11 Plan; Will Liquidate Operations
-------------------------------------------------------------
Blue Water Automotive Systems, LLC, and its debtor affiliates
delivered to the United States Bankruptcy Court for the Eastern
District of Michigan an amended joint plan of liquidation on
Aug. 6, 2008, to contemplate a wind-down of the Debtors' assets.
Earlier versions of the Debtors' Plan contemplated a sale of
substantially all of the Debtors' assets, first to NYX, Inc.,
for US$28,000,000, and then to Flex-N-Gate, LLC, for
US$39,500,000. The proposed asset sales did not push through
after the Debtors determined that proceeds from either sales
will not be enough to satisfy their more than US$40,000,000
collateralized loans from CIT Group/Equipment Financing, Inc.,
and CIT Capital USA, Inc.
The Amended Plan also incorporates a mutual release agreement
with one of the Debtors' major customers, Ford Motor Company,
and a creditors trust agreement. Ford, according to the
Debtors' counsel, Judy O'Neill, at Foley & Lardner LLP, in
Detroit, Michigan, showed willingness to fund the Plan but the
amount of the funding has not yet been finalized and is
contingent on Section 503(b)(9) claimants reaching some
settlements that have been discussed with the Debtors, the
Official Committee of Unsecured Creditors. She, however,
disclosed during an omnibus hearing before the Court that
US$900,000 to fund the creditors trust to pursue litigation.
The Court will convene a hearing on Aug. 20, 2008, to consider
confirmation of the Debtors' Liquidation Plan. Confirmation
objections are due August 11.
Treatment of Claims
The Amended Plan maintains the full payment of Allowed In-
Formula DIP Facility Claims and Cash Collateral Lien Claims.
The Debtors borrowed US$35,000,000 of DIP Loans from Citizens
Bank. The Cash Collateral Lien Claims will be paid in full by
(i) cash, (ii) a setoff or recoupment against amounts owed by
the holders of the Cash Collateral Claims to the Debtors to the
extent permitted by the Debtors, and (iii) funding placed into
an escrow required by the DIP Final Order. The Cash Collateral
Lien Claims are the liens granted in favor of the Debtors' major
customers, General Motors Corp., Chrysler LLC, and Ford.
The Amended Plan also provides for the the full payment of the
secured claims of CIT Capital against Blue Water Automotive
Systems Properties, L.L.C.; provided that CIT Capital does not
credit bid at a sale of any of the collateral, cash in an amount
equal to the value of the Collateral. The Amended Plan defines
"Collateral" as the Debtors' real estate at 2000 Christian B.
Haas Dr, St. Clair, Michigan; 2015 Range Road, St. Clair,
Michigan; 315 S. Whiting St., St. Clair, Michigan; 1717 Beard
St., Port Huron, Michigan; 1075 S. Colling Rd., Caro, Michigan
48273; and 5140 S. Lakeshore Rd, Lexington, Michigan.
CIT Group/Equipment Financing, Inc., will be paid only with
respect to the Collateral securing its interest in the equipment
it leased to the Debtors. That Collateral includes the Debtors'
real estate at 1513 and 1515 Busha Highway, in Maryville,
Michigan, as well as the CIT equipments machinery.
The Amended Plan contemplates that in the event the equity
interests in BWAS Mexico LLC, and Blue Water Plastics Mexico,
Ltd., are sold as of the Effective Date, holders of Mexico
Equity Interests will receive the proceeds of the Mexico Equity
Interests to the extent they exceed the Collateral Value of any
existing liens or claims on the Mexico Equity Interests. In
the event the Mexico Equity Interests are not sold as of the
Effective Date of the Plans of the Mexican Entities, holders of
the Mexico Equity Interests will receive any value remaining
after the satisfaction of Allowed Secured Claims on the Mexico
Equity Interests.
All amounts owed by any non-Debtor Mexican subsidiary to the
Debtors will be paid in full. All other Intercompany Claims
will be extinguished.
Setoff and Recoupment Claims, which are not allowed by Court
order before the date of the confirmation order will be deemed
disallowed, except with respect to any setoff and recoupment
claims filed by Ford.
Ford Mutual Release
On the Effective Date and Ford's entry into and full funding of
a plan support agreement, the Debtors will release Ford from all
claims, including claims against the Debtors, the Official
Committee of Unsecured Creditors, the DIP Final Order, or the
Plan. The Debtors, however, do not release Ford from its (i)
accounts receivable arising in the ordinary course of business,
and (ii) obligations arising under the Plan.
Ford also agrees to discharge the Debtors from all claims,
including claims against the DIP Final Order, and the Plan.
Ford, however, does not release the Debtors from their (i)
ordinary trade shipment obligations, and (ii) other obligations
arising under the Plan, the Confirmation Order and the plan
support agreement.
Creditors Trust Agreement
On the Effective Date, a creditors trust, which will, among
other things, collect and liquidate the Debtors' remaining
assets, will be created. The Creditors Trust will also
administer the Debtors' employee benefits, if any, and effect
the final administration and termination of those benefits.
McTevia & Associates, Inc., will serve as the liquidation
advisor to the creditors' trust.
A full-text copy of the Trust Agreement is available for free at
http://ResearchArchives.com/t/s?3098
Means of Implementing the Plan
The Amended Plan contemplates an orderly winding down of the
Debtors' assets, which will either be sold in lots or piecemeal,
or returned to holders of Allowed Secured Claims to the full
satisfaction of their Claims. The Debtors reserve their right
to conduct sales of assets, including pursuant to Section 363 of
the Bankruptcy Code.
The stock or assets of the Mexican Non-Debtor Operating
Subsidiary will be sold free and clear of liens, claims and
encumbrances. The closing of that sale is expected to close on
or before the Effective Date of the Plans of the Mexican
Entities; provided that the Debtors may request an adjournment
of the confirmation of the Plans to accommodate the Sale
Closing.
To the extent that the CIT Entities' alleged secured claims (i)
are allowed prior to the Effective Date, or (ii) the Court will
permit the return of the disputed collateral to the CIT Entities
on the Effective Date, the Debtors will return the CIT Entities'
Collateral. However, the Debtors maintain their reservations
against the CIT Entities' entitlement to Allowed Secured Claims.
Proceeds from any sale of the Mexican Equity Interests will be
placed in an escrow account mutually agreed by CIT Equipment,
the Debtors, and the DIP Lender or Ford, subject to the alleged
lien of CIT Equipment, and the liens of the DIP Lender.
The Creditors' Trust, on the Effective Date, will assume pursue
the actions with respect to the CIT Entities' valuation dispute
and adversary proceeding commenced by the Debtors. The
Creditors' Trust will also oversee the sale of the Mexico Equity
Interests and any escrows in which any of the CIT Entities are
held.
The Court, at the Debtors' request, may determine the Valuation
Dispute at the Confirmation Hearing. Otherwise, the
confirmation hearing as to the Mexican Entities will be
adjourned (i) after the closing of the sale of the Mexico Equity
Interests, and (ii) at any time prior to October 1, 2008.
Either of the CIT Entities, the Debtors and the DIP Lender may
file an adversary proceeding for the determination of the
Valuation Dispute.
Effective Date
The Effective Date with respect to the Plan for each of the
Debtors is contemplated to be the date earlier of (a) completion
of the resourcing by Ford, or (b) October 16, 2008, provided
that as of that date, the Confirmation Order has been entered.
The Effective Date may be extended for another 31 days (x )upon
the Debtors and Ford's stipulation, and (y) if Ford amends the
Support Agreement calling forth its funding of additional plan
expenses under the Support Agreement, and any other additional
costs to be incurred by the Debtors as a result of the
extension.
The Plan admonishes that if the Effective Date does not occur on
or before Nov. 16, 2008, the Plan will be null and void in
all respects.
A blacklined copy of the Amended Liquidation Plan is available
for free at http://ResearchArchives.com/t/s?3099
USF Holland, Inc., contested the zero cure amount designated by
the Debtors' Amended Plan for the pricing agreement USF entered
into with the Debtors. USF asserted that US$105,531 is the
proper cure amount due to the Agreement. USF demanded that
before any assumption and assignment of the Agreement will take
place under the Plan, the Debtors should pay USF US$105,531 and
provide adequate assurance of future performance to USF.
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. 25, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
BLUE WATER: To Close St. Clair, Michigan Facilities by August 29
----------------------------------------------------------------
Blue Water Automotive Systems, Inc., will permanently shut down
its St. Clair, Michigan plants on or before Aug. 29, 2008, The
Times Herald reported, citing letters sent by the company to
employees.
The letter, sent to more than 1,200 employees, cited the falling
through of the sale of Blue Water to Flex-N-Gate, and the non-
confirmation of Blue Water's Chapter 11 plan of reorganization
as the reasons for the plant closures. The letter, according to
the report, stated that ?this outcome was unforeseeable, without
notice and outside of Blue Water's control. This is the reason
Blue Water was unable to give 60 days advanced notice of your
job ending.?
The letter did not indicate a definite date of employment
termination yet, the report said.
James D. Sampson, president and vice president and chief
executive officer of Blue Water, however, told The Times Herald
that the closing of the facilities was not a foregone conclusion
because Blue Water is still attempting to exit from Chapter 11.
The Times Herald noted that Blue Water pays an annual tax bill
for US$656,168 and is one of the largest taxpayers and employers
in St. Clair.
Blue Water also notified 200 employees of its Howell, Michigan
plant of the possible shutdown of the company's operations,
whmi.com reports. Blue Water is conducting talks with the
Economic Development Council of Livingston as to how the Council
can help Blue Water with its intent to continue operating its
business. Blue Water also said it will close its Caro, Michigan
plant.
Blue Water previously planned to sell its assets to Flex-N-Gate
for a total value of US$39,500,000. The proposed sale, however,
failed after determining that proceeds from the sale cannot
satisfy Blue Water's more than US$40,000,000 collateralized loan
debts from CIT Group/Equipment Financing, Inc., and CIT Capital
USA, Inc.
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. 25, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
GREAT PANTHER: Resources Increase at Topia Mine in Mexico
---------------------------------------------------------
Great Panther Resources Limited reported that Wardrop
Engineering of Vancouver has delivered an update to the ongoing
mineral resource development at the company's 100% owned Topia
Silver-Gold-Lead-Zinc Mine in Durango, Mexico.
The 2008 mineral resource estimate comprises Measured &
Indicated Mineral Resources of 153,373 tons at:
-- 501g/t Ag,
-- 0.95g/t Au,
-- 5.38% Pb, and
-- 4.85% Zn.
The resource estimate also includes 98,083 tons of:
-- 468g/t Ag,
-- 0.97g/t Au,
-- 3.59% Pb, and
-- 2.95% Zn in the Inferred category.
The 2008 resource estimate has increased over that of 2006, even
after considering the last two years of production. Contained
silver is up 11%, gold 25%, and lead by 6% while zinc stayed the
same. At the current production rate of approximately 36,000
tonnes per year, management expects the resources to support a
mine life of at least seven more years. This ?rolling resource?
is typical for underground mines as it is often not cost-
effective to define a large resource/reserve in advance of
mining.
The new estimate provides an update for the Argentina vein only,
while the estimate delivered by Wardrop in 2006 for the other
veins on the property remains unchanged.
The resources estimated in 2006 for the other veins on the
property came largely from the verification of Penoles'
resources, and are still intact, as mining to date has come from
new mine development on these veins. (Resources for the ?other
veins? were estimated by Wardrop using metal prices as reported
in the 2006 report.)
Due to the steep topography and the nature of the narrow veins
at Topia, surface drilling is typically widely spaced and is
used as a guide for underground development by locating and
confirming structural continuity and grade, while development by
drifting, sampling and some underground drilling along the vein
defines the measured and indicated mineral resources. As such,
much of the surface drilling is used to determine additional
Exploration Potential for the veins. This has been estimated
in-house for the Don Benito and Argentina veins to demonstrate
the potential mineral resources in these areas prior to mine
development. The Exploration Potential is conceptual in nature
and based on wide spaced exploration drilling at Argentina, and
exploration drilling and two development levels at Don Benito.
There has been insufficient exploration to define a mineral
resource and it is uncertain if further exploration will result
in the Exploration Potential being delineated as a mineral
resource.
These tonnages include some of the drilling and development
completed during the spring of 2008 and could represent another
4-5 years of mine life with further definition. The Argentina
vein remains open to expansion at depth and to the east for
approximately 500 meters below old mine workings.
Analysis of mine samples is completed on site, with check assays
performed by SGS Minerals Services, in their Durango, Mexico
facilities. The company's QA/QC program includes the regular
insertion of blanks, splits and standards into the sample
shipments. Aspects of the Topia Mine relating to mining and
metallurgy are overseen by Charles Brown, Chief Operating
Officer for Great Panther and its wholly owned Mexican
subsidiary, Minera Mexicana El Rosario, S.A. de C.V. (MMR).
Robert F. Brown, P.Eng. and Vice-President of Exploration for
Great Panther and MMR is designated as the Qualified Person for
the Topia Mine Project under the meaning of NI 43-101.
About Great Panther
Headquartered in Vancouver, Canada, Great Panther Resources
Limited (TSX: GPR) -- http://www.greatpanther.com/-- is a
mining and exploration company. The company's activities are
focused on the mining of precious and base metals from its
wholly owned properties in Mexico. In addition, Great Panther
is also involved in the acquisition, exploration and development
of other properties in Mexico.
Going Concern Doubt
KPMG LLP, in Vancouver, Canada, expressed substantial doubt
about Great Panther Resources Ltd.'s ability to continue as a
going concern after auditing the company's consolidated
financial statements for the year ended Dec. 31, 2006, and 2005.
The auditing firm pointed to the company's recurring losses and
operating cash flow deficiencies.
SEMGROUP LP: Hiland Companies Disclose US$13 Million Exposure
-------------------------------------------------------------
On July 22, 2008, SemGroup, L.P. and certain subsidiaries filed
voluntary petitions for reorganization under Chapter 11 of the
U.S. Bankruptcy Code. Affiliates of SemGroup, L.P., purchase
from The Hiland companies, Hiland Partners, LP, and Hiland
Holdings GP, LP, natural gas liquids and condensate, primarily
at their Bakken and Badlands plants and gathering systems. As a
result, the Partnership established an allowance for doubtful
accounts and bad debt expense by approximately US$8.1 million in
the three and six month period ended June 30, 2008.
The Partnership estimates additional potential exposure of
approximately US$5.0 million with this purchaser for uninvoiced
product sales from July 1 through July 18, 2008.
The Partnership has made temporary arrangements with other third
parties for its product sales while assessing its options in
light of SemGroup's bankruptcy. The Partnership is monitoring
the bankruptcy cases closely to pursue the best course of action
to obtain payment of the amounts owed to us and to continue
natural gas liquids and condensate sales at its Bakken and
Badlands plants and gathering systems. This matter is not
expected to cause the Partnership to be out of compliance with
its covenants under its credit facility or impact its liquidity
position in any material respect.
Based upon information contained in available court filings made
by SemGroup, L.P., the Partnership believes that the bankruptcy
of SemGroup, L.P., may be attributable to circumstances unique
to SemGroup, L.P., including significant margin requirements for
large futures and options trading positions by SemGroup, L.P.,
which are not representative of the liquidity and financial
position of other companies in the midstream sector.
Accordingly, the Partnership believes that the circumstances
that led to the SemGroup, L.P., bad debt expense are highly
unusual and are unlikely to occur in the future with respect to
receivables from other purchasers of the Partnership's natural
gas liquids and condensate.
About SemGroup L.P.
SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt. Services include purchasing,
selling, processing, transporting, terminaling and storing
energy. SemGroup serves customers in the United States, Canada,
Mexico, Wales, Switzerland and Vietnam.
SemGroup L.P. and its debtor-affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-
11525). These represent the Debtors' restructuring efforts:
John H. Knight, Esq., L. Katherine Good, Esq. and Mark D.
Collins, Esq. at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A.
Mayer, Esq. at Weil Gotshal & Manges LLP. Kurtzman Carson
Consultants L.L.C. is the Debtors' claims agent. The Debtors'
financial advisors are The Blackstone Group L.P. and A.P.
Services LLC. Margot B. Schonholtz, Esq., and Scott D.
Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber
Silverstein, Esq., at Potter Anderson & Corroon LLP, represent
the Debtors' prepetition lenders.
SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc.
The CCAA stay expires on Aug. 20, 2008.
SemGroup L.P.'s consolidated, unaudited financial conditions as
of June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts. In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more
than US$1,000,000,000 in total debts.
SEMGROUP LP: Paramount Energy Discloses Financial Exposure
----------------------------------------------------------
In July 2008, SemGroup, L.P., filed a voluntary position for
reorganization under Chapter 11 of the Bankruptcy Code in the
United States Bankruptcy Court. Paramount Energy Trust sold gas
production from certain of its Saskatchewan assets to CEG Energy
Options Inc., a Canadian subsidiary of SemGroup, and has
determined its exposure to CEG to be approximately
US$0.2 million, related to natural gas sales for June and a
portion of July 2008. Natural gas deliveries to CEG have been
terminated and as such there is no additional potential
financial exposure for the Trust.
About SemGroup L.P.
SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt. Services include purchasing,
selling, processing, transporting, terminaling and storing
energy. SemGroup serves customers in the United States, Canada,
Mexico, Wales, Switzerland and Vietnam.
SemGroup L.P. and its debtor-affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-
11525). These represent the Debtors' restructuring efforts:
John H. Knight, Esq., L. Katherine Good, Esq. and Mark D.
Collins, Esq. at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A.
Mayer, Esq. at Weil Gotshal & Manges LLP. Kurtzman Carson
Consultants L.L.C. is the Debtors' claims agent. The Debtors'
financial advisors are The Blackstone Group L.P. and A.P.
Services LLC. Margot B. Schonholtz, Esq., and Scott D.
Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber
Silverstein, Esq., at Potter Anderson & Corroon LLP, represent
the Debtors' prepetition lenders.
SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc.
The CCAA stay expires on Aug. 20, 2008.
SemGroup L.P.'s consolidated, unaudited financial conditions as
of June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts. In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more
than US$1,000,000,000 in total debts.
===========
P A N A M A
===========
CHIQUITA BRANDS: Earns US$62.1 Million in 2008 Second Quarter
-------------------------------------------------------------
Chiquita Brands International Inc. reported income from
continuing operations of US$59.5 million for the second quarter
ended June 30, 2008, compared to US$5.4 million in the year-ago
period. Including the results of discontinued operations, the
company reported income of US$62.1 million, compared to
US$8.6 million in the year-ago period.
For continuing operations, the company reported net sales of
US$994.6 million, up 6 percent year-over-year.
The 2008 quarter includes other income, net of tax, of
US$6.0 million from the resolution of a claim related to a non-
income tax refund, and the 2007 quarter included a charge of
US$3.0 million related to the settlement of U.S. antitrust
litigation.
?I am very pleased with our strong second quarter results, which
mark our best quarterly performance in three years,? said
Fernando Aguirre, Chiquita Brands' chairperson and chief
executive officer. ?Our ability to deliver year-on-year
improvements, despite unprecedented cost increases, is a
testament to the strength of our business, the diversity of our
product portfolio, and our strategy to drive profitable growth.?
Mr. Aguirre stated, ?We are particularly satisfied that our
pricing discipline and focus on profitability has improved the
performance and momentum of our banana segment for the fourth
consecutive quarter. We are disappointed, however, with the
current performance of our salad operations, and we are focused
on executing plans to improve our salad margins over time.?
Mr. Aguirre concluded, ?While quarter-to-quarter volatility is
typical due to the seasonality of our industry, we continue to
expect to achieve significantly better operating results for the
full year. We remain focused on aggressively improving
profitability, and prudently investing in the launch of
innovative products to become the global leader in healthy,
fresh foods.?
Quarterly sales rose primarily due to higher banana pricing and
a favorable euro exchange rate, offset by lower banana volumes
principally reflecting industry-wide constraints on volume
availability.
Quarterly operating income improved year-over-year due to higher
banana pricing in each of the company's markets, strengthening
of the euro and savings from the company's business
restructuring. Higher banana pricing in core European and
Trading markets continued to be attributable to constrained
supply during the quarter as well as the company's strategy to
maintain and favor its premium product quality and price
differentiation rather than market share.
In the North American market, higher banana pricing was
attributable to increases in base contract prices, the company's
fuel-related surcharge and the continuation of a surcharge to
mitigate the higher costs due to constrained industry-wide
volume availability. The positive banana results were partially
offset by weakness in value-added salads and increased
investment in innovation.
Operating cash flow was US$121.0 million for the second quarter
of 2008 compared to US$77.0 million for the second quarter of
2007. The increase resulted primarily from improvements in
operating income.
The company's total debt at June 30, 2008, was US$874.0 million,
up US$29.0 million from a year ago, principally due to the
company's issuance of US$200.0 million of convertible notes in
February 2008. At June 30, 2008, the company's debt-to-capital
ratio was 45 percent, as compared to the company's long-term
target debt-to-capital ratio of 40 percent.
Update on Sale of Atlanta AG
On May 13, 2008, the company entered a definitive agreement to
sell its wholly-owned German distribution business, Atlanta AG,
to UNIVEG Fruit and Vegetables BV for approximately US$85.0
million in proceeds, plus working capital and net debt
adjustments. The sale proceeds will be used primarily for debt
reduction. The transaction will enable the company to increase
its focus on providing branded, healthy, fresh foods to
consumers worldwide, while ensuring continued reliable, high-
quality ripening and distribution services of Chiquita bananas
in the German, Austrian and Danish markets. The Atlanta AG sale
is expected to be completed during the third quarter, after the
completion of a normal review by EU competition authorities.
As the company previously disclosed, it determined that Atlanta
AG's commodity distribution business was no longer a strong fit
with Chiquita's long-term strategy to drive profitable growth.
Although Atlanta AG represented US$1.2 billion in revenues from
non-Chiquita products in 2007, its results have not been
significant to Chiquita's annual operating income in recent
periods. Chiquita anticipates that the sale and related entry
into a long-term banana ripening and distribution services
agreement with UNIVEG will result in a gain as well as a one-
time tax benefit.
About Chiquita Brands
Headquartered in Cincinnati, Ohio, Chiquita Brands International
Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is a marketer
and distributor of high-quality fresh and value-added food
products. The company markets its products under the
Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks. Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Panama.
At March 31, 2008, the company's consolidated balance sheet
showed US$2.80 billion in total assets, US$1.87 billion in total
liabilities, and US$933.0 million in total shareholders' equity.
* * *
In March 2008, Moody's Investors Service affirmed Chiquita
Brands International, Inc.'s B3 corporate family and B3
probability of default ratings. Moody's said the rating outlook
remains negative.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
S&P said the ratings remain on CreditWatch with negative
implications where they were placed on Sept. 26, 2007.
====================
P U E R T O R I C O
====================
DORAL FINANCIAL: Research Oracle Keeps Buy Rating on Firm
---------------------------------------------------------
Research Oracle has kept its ?buy? recommendation on Doral
Financial Corp.'s shares.
Doral Financial reported slimmer net losses in the second
quarter 2008, compared to the same period a year earlier, driven
by growth in net interest income, a reduction in provisions and
lower non-interest expenses.
Although Research Oracle remains concerned about financial
market volatility and weakness in the Puerto Rican economy, it
believes that Doral Financial's restructuring initiatives ?-
intended to transform it into a more conventional bank ?- will
drive top-line growth and lower costs over the longer term.
Therefore, at current levels, Research Oracle maintains its
rating on the firm's shares. Research Oracle expects to revert
to a six to 24 month investment horizon to value the company in
our next full update report, as it now anticipates a significant
positive currency impact on the European stock over the long
term. Therefore, based on Research Oracle's fundamental
outlook, it maintains it ?buy? rating for the European stock.
Based in New York City, Doral Financial Corp. (NYSE: DRL)
-- http://www.doralfinancial.com/-- is a diversified financial
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations. Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area. Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank; Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm; Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 3, 2008, Standard & Poor's Ratings Services raised its
long-term counterparty credit rating on Doral Financial Corp. to
'B+' from 'B' and removed it from CreditWatch Positive, where it
had been placed July 20, 2007. S&P said the outlook is stable.
===============================
T R I N I D A D & T O B A G O
===============================
HINDU CREDIT: Attorney Says Court Wrong in Allowing Confiscation
----------------------------------------------------------------
Francis Joseph at The Trinidad Guardian reports that Arid Scoon,
an attorney for Hindu Credit Union Co-Operative Society Ltd.,
said on Monday that Justice Nolan Bereaux in Port-of-Spain High
Court was wrong in allowing Charles Mitchell, the Commissioner
of Co-operatives, to take control of the firm.
According to The Guardian, Mr. Scoon said before the court that
under the Co-Operative Societies Act, 1971, Justice Bereaux had
no jurisdiction to grant Mr. Mitchell's request, which included
freezing Hindu Credit's assets. The Guardian notes that Mr.
Scoon said the orders granted for the appointment of the
provisional liquidator ?were premised on a petition for the
winding up of a company,? when Hindu Credit was governed by the
Co-Operative Societies Act, 1971, and not by the Companies Act,
1995. Sections 58 and 18 of the Co-Operative Societies Act says
that the Commissioner of Co-operatives has the sole discretion
to appoint a liquidator, The Guardian cited Mr. Scoon as saying.
The Guardian relates that Justice Bereaux said, ?It seems to me
that the act was too long in the 19th century, and it needs to
be brought up-to-date. There may be a need to rush to amend the
act.?
The Guardian states that Mr. Scoon asked that the freezing of
Hindu Credit's assets be lifted, ?so that legal fees, the
salaries of the board, and hundreds of employees, as well as
monies of the shareholders, could be paid out?. Justice Bereaux
explained that the order granted was to protect the interest of
the shareholders, The Guardian reports.
=================
V E N E Z U E L A
=================
GRAHAM PACKAGING: June 30 Balance Sheet Upside-Down by US$726.8M
----------------------------------------------------------------
Graham Packaging Holdings Company's consolidated balance sheet
at June 30, 2008, showed US$2.31 billion in total assets and
US$3.04 billion in total liabilities, resulting in roughly
US$726.8 million partner deficit.
The company reported net income of US$28.3 million for the three
months ended June 30, 2008, compared to net income of
US$5.1 million for the three months ended June 30, 2007.
Net sales for the three months ended June 30, 2008, increased
US$37.2 million, or 5.7%, from the three months ended June 30,
2007. The increase in sales was primarily due to an increase in
resin costs which are passed through to customers and the
positive impact of changes in exchange rates, offset by lower
volume and price reductions both from operational cost savings
shared with our customers and in response to competitive
pressure.
Gross profit for the three months ended June 30, 2008, increased
US$9.3 million, or 9.5%, from the three months ended June 30,
2007. The overall increase in gross profit was driven by
several factors including ongoing expense reduction initiatives,
lower depreciation and amortization expense of US$7.8 million
and a weakening of the dollar against the euro and other
currencies of US$4.2 million, partially offset by higher project
startup costs of US$1.5 million and price reductions.
Selling, general and administrative expenses for the three
months ended June 30, 2008, increased US$3.1 million, or 9.4%,
from the three months ended June 30, 2007. The increase was
primarily due to an increase in severance and stock-based
compensation costs related to the termination of employment of
the company's former chief operating officer, professional fees
related to the pending acquisition (as described in the
following paragraph), and a weakening of the dollar against the
euro and other currencies, partially offset by a decrease in
consulting expenses and ongoing expense reduction efforts.
On July 1, 2008, the company's partners (Sellers) and the
company, including a wholly owned subsidiary of the company, GPC
Capital Corp. II, entered into an Equity Purchase Agreement with
Hicks Acquisition Company I Inc. (HACI), a publicly traded
special purpose acquisition company, pursuant to which, through
a series of transactions including an Initial Public Offering
Reorganization, HACI's stockholders will acquire a majority of
the outstanding common stock of GPC and GPC will own, either
directly or indirectly, 100% of the partnership interests of
Graham Packaging Company, L.P., Graham Packaging Holdings
Company's wholly-owned subsidiary.
Interest expense for the three months ended June 30, 2008,
decreased US$9.9 million from the three months ended June 30,
2007. The decrease was primarily related to a decrease in
interest rates.
Income tax provision for the three months ended June 30, 2008,
decreased US$5.1 million from the three months ended June 30,
2007. The decrease was primarily related to a decrease in
unrecognized tax benefits associated with intercompany
transactions in Mexico, a decrease in valuation allowances
placed on Mexico deferred tax assets and a decrease in tax on
repatriation of unremitted earnings to the U.S.
Availability under the company's US$250.0 million revolving
credit facility as of June 30, 2008, was US$239.0 million. The
company expects to fund scheduled debt repayments from cash from
operations and unused lines of credit.
At June 30, 2008, the company's total indebtedness was
US$2.52 billion, compared to US$2.53 billion at Dec. 31, 2007.
Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2008, are available
for free at http://researcharchives.com/t/s?3091
About Graham Packaging
Headquartered in York, Pennsylvania, Graham Packaging Holdings
company, -- http://www.grahampackaging.com/-- the parent
company of Graham Packaging company LP, is engaged in the
design, manufacture and sale of customized blow molded plastic
containers for the branded food and beverage, household,
automotive lubricants and personal care/specialty product
categories. The company currently operates 88 plants worldwide.
In Latin America, the company has operations in Argentina,
Brazil, Ecuador, Mexico and Venezuela.
The Blackstone Group, an investment firm, is the majority owner
of Graham Packaging Holdings company.
***********
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.
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