/raid1/www/Hosts/bankrupt/TCRLA_Public/080901.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
Monday, September 1, 2008, Vol. 9, No. 173
Headlines
A R G E N T I N A
ANGEL RUIZ: Proofs of Claim Verification Deadline Is October 9
EMPRESA DE MONTAJE: Claims Verification Deadline Is October 20
FABROL SRL: Proofs of Claim Verification Deadline Is October 29
INDUSTRIAS METALURGICAS: To Invest Over BRL2.7B in Wind Projects
MARQUEZ MONTES: Trustee Verifies Proofs of Claim Until October 23
TELECOM ARGENTINA: Closes Cubecorp Acquisition for US$32,291,215
B E R M U D A
DIGICEL GROUP: Tower at Minister's Property Taken Down
PINNACLE REINSURANCE: Sets Final Shareholders Meeting for Oct. 1
WHITE MOUNTAINS: Board Adopts US$1 Per Share Annual Dividend
B R A Z I L
CAIXA ECONOMICA: Will Manage Sabesp's BRL300 Million Bond Sale
COMPANHIA DE SANEAMENTO: Will Sell BRL300 Million of Bonds
COMPANY SA: Fitch Affirms Currency Issuer Default Ratings at B+
DELTA AIR: S&P Sees US$500MM Loss for 2008; 'B' Rating Off Watch
DUKE ENERGY: S&P Puts BB Corporate Credit Rating, Outlook Stable
DUKE ENERGY: Moody's Lifts Corporate Family Rating to Ba1 From Ba2
DUKE ENERGY: Moody's Latina Puts Ba2 Rating on Proposed Debentures
PARANA BANCO: Picks Bank of NY Mellon as Depositary Bank
SADIA SA: Board Okays Proposal on Avicola Industrial Merger
SADIA SA: Shareholders General Meeting Scheduled for September 29
TELE NORTE: Board Grants Extraordinary Dividends Payment
C A Y M A N I S L A N D S
ALTIMA GLOBAL: Deadline for Proofs of Claim Filing Is Sept. 2
APACHE AUSTRIA: Holding Final Shareholders Meeting Today
APACHE AUSTRIA III: Sets Final Shareholders Meeting on Sept. 2
E2E SUPPLY: Deadline for Proofs of Claim Filing Is Today
OBJECTSTAR INTERNATIONAL: Claims Filing Deadline Is Today
PROCIFIC MAINSTREAM: Final Shareholders Meeting Is on Sept. 2
SHANGHAI CENTURY: Proofs of Claim Filing Deadline Is Today
C O L O M B I A
ECOPETROL SA: Will Soon be Traded on NYSE
J A M A I C A
NATIONAL COMMERCIAL: Takes Dispute With Olint to Privy Council
OLINT CORP: Nat'l Commercial Takes Dispute to Privy Council
M E X I C O
CABLEMAS SA: Reports MXN41.5 Million Net Income in 2nd Qtr. 2008
FEDERAL-MOGUL: Shows Stability Amid Auto Sales Slump
SEMGROUP LP: U.S. Trustee, Panel Balk at Blackstone Fee Structure
SEMGROUP LP: Oil Suppliers Demand Payment, Return of Deliveries
SEMGROUP LP: HSBC, et al., Disclose Interest in Bankruptcy Case
P U E R T O R I C O
MLMT COMMERCIAL: Fitch Affirms Ratings on Series 2007-C1 Loans
PORTOLA PACKAGING: Files for Bankruptcy, Gets US$79MM DIP Facility
PORTOLA PACKAGING: Case Summary & 20 Largest Unsecured Creditors
W HOLDING: To Restate Financials Due to Accounting Errors
T R I N I D A D & T O B A G O
BURGER KING: Launches Trinidad Unit
HINDU CREDIT: Court Cancels Hearing on Chief's Injunction Protest
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Ratifies Commitment Despite Workers Clash
PETROLEOS DE VENEZUELA: Unit Expands Operating Coverage in SouthAm
PETROLEOS DE VENEZUELA: To Control Fuel Distribution in Nation
* BOND PRICING: For the Week August 25 - August 29 2008
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A R G E N T I N A
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ANGEL RUIZ: Proofs of Claim Verification Deadline Is October 9
--------------------------------------------------------------
The court-appointed trustee for Angel Ruiz SA's bankruptcy
proceeding, will be verifying creditors' proofs of claim until
October 9, 2008.
The trustee will present the validated claims in court as
individual reports on November 20, 2008. A court in Argentina
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 Angel Ruiz 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 Angel Ruiz's accounting
and banking records will be submitted in court on February 6,
2009.
The trustee is also in charge of administering Angel Ruiz's assets
under court supervision and will take part in their disposal to
the extent established by law.
EMPRESA DE MONTAJE: Claims Verification Deadline Is October 20
--------------------------------------------------------------
The court-appointed trustee for Empresa de Montaje A.S. S.R.L.'s
bankruptcy proceeding, will be verifying creditors' proofs of
claim until October 20, 2008.
The trustee will present the validated claims in court as
individual reports on December 1, 2008. A court in Argentina 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 Empresa de Montaje 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 Empresa de Montaje's
accounting and banking records will be submitted in court on
February 17, 2009.
The trustee is also in charge of administering Empresa de
Montaje's assets under court supervision and will take part in
their disposal to the extent established by law.
FABROL SRL: Proofs of Claim Verification Deadline Is October 29
---------------------------------------------------------------
The court-appointed trustee for Fabrol S.R.L.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
October 29, 2008.
The trustee will present the validated claims in court as
individual reports on December 11, 2008. A court in Argentina
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 Fabrol S.R.L. 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 Fabrol S.R.L.'s
accounting and banking records will be submitted in court on
February 27, 2009.
The trustee is also in charge of administering Fabrol S.R.L.'s
assets under court supervision and will take part in their
disposal to the extent established by law.
INDUSTRIAS METALURGICAS: To Invest Over BRL2.7B in Wind Projects
----------------------------------------------------------------
Business News Americas reports that Industrias Metalurgicas
Pescarmona SA, a.k.a. Impsat will invest over BRL2.7 billion in
wind projects in Brazil in the coming 36 months.
According to BNamericas, Impsat will invest:
-- BRL660 million in the Agua Doce wind project,
-- BRL450 million in the Bom Jardim wind initiative,
-- BRL550 million in three wind parks in Ceara,
-- BRL145 million in its turbine manufacturing plant in
Pernambuco,
-- BRL750 million in projects for wind tenders, and
-- BRL115 million in the turbine plant and hydro
generators.
Industrias Metalurgicas Pescarmona SA, a.k.a. IMPSA --
http://www.impsa.com.ar/-- is one of the largest worldwide
providers of integrated energy solutions for hydropower and wind
energy projects through the production of capital goods and by
investing in power generation projects. The company has offices
in Malaysia, China, and Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 6, 2008, Standard & Poor's Ratings Services assigned its
'B' senior unsecured debt rating to Industrias Metalurgicas
Pescarmona S.A.I.C.y F.'s upcoming issuance of up to
US$65 million short-term bonds with proposed maturity in 2009.
S&P also affirmed its 'B' long-term corporate credit rating on
the company. S&P said the outlook is stable.
As reported in the Troubled Company Reporter-Latin America on
June 2, 2008, Fitch Ratings assigned a 'B' rating to Industrias
Metalurgicas Pescarmona S.A.I.C. Y F proposed 1-year US$65
million issuance notes due in 2009. These notes were assigned a
Recovery Rating of 'RR4', which indicates average recovery
prospects in the event of default. Fitch maintained a foreign
and local currency Issuer Default Rating of 'B'. Fitch said the
rating outlook is stable.
MARQUEZ MONTES: Trustee Verifies Proofs of Claim Until October 23
-----------------------------------------------------------------
The court-appointed trustee for Marquez Montes Iaizzo
Construcciones S.A.'s reorganization proceeding will be verifying
creditors' proofs of claim until October 23, 2008.
The trustee will present the validated claims in court as
individual reports on December 4, 2008. A court in Argentina 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 Marquez Montes 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 Marquez Montes'
accounting and banking records will be submitted in court on
February 18, 2009.
Creditors will vote to ratify the completed settlement plan
during the assembly on July 20, 2009.
The debtor can be reached at:
Marquez Montes Iaizzo Construcciones S.A.
Alsina 1609
Buenos Aires, Argentina
TELECOM ARGENTINA: Closes Cubecorp Acquisition for US$32,291,215
----------------------------------------------------------------
Telecom Argentina S.A. disclosed in its regulatory filing that it
has completed the acquisition of Cubecorp Argentina S.A.'s shares.
The final price adjustment for the total shares of Cubecorp
amounted to US$32,291,215. Consequently, US$30,676,654 belongs to
Telecom Argentina S.A. and US$1,614,561 to Telecom Personal S.A.
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings upgraded Telecom Argentina's
foreign and local currency issuer default ratings to 'B+' from
'B'. Fitch said the outlook is positive.
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B E R M U D A
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DIGICEL GROUP: Tower at Minister's Property Taken Down
------------------------------------------------------
Steven Knipp at Cayman Net News reports that Digicel Group's tower
near the Queen's Highway, East End, was taken down, after five
years of legal dispute with Cayman Islands' Communications and
Works Minister Arden McLean, the owner of the property where the
tower was built.
According to Cayman Net, Minister McLean first found out in
December 2003 that a tower was built on his property without his
permission. He then contacted Peter Polack, his attorney, who
then filed an application to the Central Planning Authority for
the removal of the tower, Cayman Net notes. Mr. Polack claimed
that the tower was built in the wrong location and that no
Building Permit was issued for the structure, according to the
report. Digicel then applied for a Building Permit, the same
report states.
Cayman Net relates Mr. Polack made four applications for removal
of the tower. The report adds there were no communications from
Digicel from April 2004 until August 2007, when a Legal Tribunal
date was finally set. Digicel then asked that the complaint be
dropped and promised to remove the tower and not to construct
another one within at least 500 feet of the minister's property,
Cayman Net says, citing Mr. Polack. According to the report,
Digicel also agreed to pay the minister's legal costs.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao. Digicel finished FY2005 with
1.722 million total subscribers -- 97% pre-paid -- estimated
market share of 67% and revenues and EBITDA of US$478 million
and US$155 million, respectively.
* * *
In February 2007, Moody's Investors Service affirmed its Caa2
senior unsecured rating to Digicel Group Limited's
US$1.4 billion senior unsecured notes offering.
PINNACLE REINSURANCE: Sets Final Shareholders Meeting for Oct. 1
----------------------------------------------------------------
Pinnacle Reinsurance Company Ltd. will hold its final shareholders
meeting on Oct. 1, 2008, at 10:00 a.m., at the offices of Mello
Jones & Martin, Thistle House, 4 Burnaby Street
Hamilton, Bermuda.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) determining the manner in which the books, accounts and
documents of the Company and of the Liquidator shall be
disposed of.
Pinnacle Reinsurance's shareholders agreed on March 13, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
David R. Whiting
c/o Mello Jones & Martin
Thistle House, 4 Burnaby Street
Hamilton, Bermuda
WHITE MOUNTAINS: Board Adopts US$1 Per Share Annual Dividend
------------------------------------------------------------
At its regular meeting held on Aug. 27, 2008, the Board of
Directors of White Mountains Insurance Group, Ltd. have adopted a
new dividend policy whereby the company will revert back to
declaring a US$1 per share annual dividend in the first quarter
of each year, rather than the current US$2 per share quarterly
dividend.
White Mountains Chairman and CEO Ray Barrette said, "Given the
recent market price of our common shares, we believe reducing our
dividend payout and allocating these resources to share
repurchases is a better way to maximize shareholder value."
From 2001 to 2004, the company paid a US$1 per share annual
dividend. In 2005, the company began its previous US$2 per share
quarterly dividend policy.
Headquartered in Hamilton, Bermuda, White Mountains Insurance
Group, Ltd. -- http://www.whitemountains.com-- through its
subsidiaries, operates property and casualty insurance, and
reinsurance businesses. Founded in 1980, the company offers its
products and services in the United States, Europe, Canada, the
Caribbean, Latin America, and Asia. The company traded on the
New York Stock Exchange and the Bermuda Stock Exchange under the
symbol WTM.
* * *
As reported in the Troubled Company Reporter on Feb. 25, 2008,
A.M. Best affirmed its 'bb' rating on 250 million non-cumulative
perpetual preference shares of White Mountains. The rating
agency said that the outlook for all ratings is stable.
===========
B R A Z I L
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CAIXA ECONOMICA: Will Manage Sabesp's BRL300 Million Bond Sale
--------------------------------------------------------------
Caixa Economica Federal will manage the sale of BRL300 million
(US$185 million) of bonds issued by Companhia de Saneamento Basico
do Estado de Sao Paulo (Sabesp),
Bloomberg News reports. The bonds are due in 2013 and 2015.
Sabesp, Brazil's biggest water utility, will issue the debt in two
parts and pricing will be set after investors have placed orders,
the report says.
Caixa, the report relates, will manage the transaction with HSBC
Bank Brasil SA, Banco Citibank SA, and BB Banco de Investimento
SA.
Headquartered in Brasilia, Caixa Economica Federal --
http://www.caixa.gov.br-- is a Brazilian bank and one of the
largest government-owned financial institutions in Latin
America. Founded in Jan. 12, 1861, Caixa Economica is the
second biggest Brazilian bank, second only to Banco do Brasil,
and offers services in thousands of Brazilian towns, ranking
third in Brazil in number of branches. The company has more
than 32 million accounts and controls more than US$170 billion.
It is responsible for executing policies in the areas of housing
and basic sanitation, the administration of social funds and
programs and federal lotteries.
* * *
In May 2008, Moody's Investors Service assigned a Ba2 foreign
currency deposit rating to Caixa Economica Federal.
COMPANHIA DE SANEAMENTO: Will Sell BRL300 Million of Bonds
----------------------------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo, a.k.a.
Sabesp, will sell BRL300 million of bonds due in 2013 and 2015.
Sabesp will issue the debt in two parts and pricing will be set
after investors have placed orders. HSBC Bank Brasil SA will
manage the transaction with:
-- Banco Citibank SA,
-- Caixa Economica Federal, and
-- BB Banco de Investimento SA.
Companhia de Saneamento Basico do Estado de Sao Paulo, a.k.a.
Sabesp (Bovespa: SBSP3; NYSE: SBS) -- http://www.sabesp.com.br
-- is one of the largest water and sewage service providers in
the world based on the population served in 2005. It operates
water and sewage systems in Sao Paulo, Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 12, 2007, Fitch Ratings affirmed the 'BB' Local Currency
and Foreign Currency Issuer Default Ratings and the Long-Term
National Scale Rating 'A+(bra)' of Companhia de Saneamento
Basico do Estado de Sao Paulo. In addition, Fitch affirmed the
'BB' Long-Term International Rating for US$140 million in notes
issued by the company, as well as the 'A+(bra)' on National
Scale for its sixth debenture issuance. Fitch said the rating
outlook is stable.
COMPANY SA: Fitch Affirms Currency Issuer Default Ratings at B+
---------------------------------------------------------------
Fitch Ratings has affirmed Company S.A. Foreign and Local Currency
long-term Issuer Default Ratings at 'B+' and its national long-
term debt rating of 'A-(bra)' for the company and its five-year
BRL75 million unsecured debentures maturing on June 1, 2012. The
Rating Outlook is Stable.
The ratings reflect Company's position as a Brazilian medium size
developer and builder of residential and commercial projects, its
adequate financial structure, liquidity and moderate performance.
Brazilian real estate sector is undergoing a strong growth but is
highly dependent on the availability of long term credit lines and
on the performance of the Brazilian economy, which adds to
business risk.
Company's current challenges are associated with the recent
changes of its operational strategy. Company opted for
concentrating its business in certain commercial and regional
projects. As a result it shows a relative decline of
participation in its traditional market niche: real estate
projects for the middle and high middle income segments, mainly
located in the State of Sao Paulo. The risks of this business
focus are partially mitigated by the planned construction of the
commercial projects with funds coming from the future sale of
these projects and no need of debt, and by the acquisition of a
large land area in a regional niche, without relevant cash
disbursement for the development of a mixed-use project.
Of the total potential sales value of Company's own project
launches expected for 2008, amounting to BRL1,435 million, 55%
refers to two land areas for the construction of office buildings.
This concentration is an exception to Company's policy, which
seeks not to exceed 30% of its total revenue per segment, and is
justified by the high demand of high standard office buildings in
Sao Paulo; by the future self financing of these projects and the
expected monthly entrance of funds for Company, as builder of the
projects, for a period of around two and a half years. The
expectation is that the sales of the two land areas occur still in
2008.
Company has maintained a conservative liquidity policy. Since its
initial public offering in February 2006, the company has
maintained a cash cushion above BRL100 million and reported a
balance of cash and short term investments of BRL124 million at
end June 2008. At the same date, Company held a relevant balance
of BRL150 million in receivables of finished units, not linked as
debt security. Fitch expects that the company continues
maintaining a sizeable liquidity volume. This should be a
fundamental factor for limiting a higher company's exposure to the
risks of restrictions in credit lines and slowing down its
activities, and, consequently, for the maintenance of its current
ratings.
Company's leverage raised significantly in the first half of 2008.
Fitch expects that the company manages its leverage measured by
total debt-to-EBITDA more conservatively and that this ratio
returns to a level nearer three times by end 2008 and 2009. In the
last twelve months ended June 2008, total debt-to-EBITDA grew to
4.2 times, against 3.0 times, on average, in the period 2005 to
2007, with a total net debt-to-EBITDA at 2.2 times. Company's
total debt increased to BRL260 million in LTM ended June 2008,
against BRL242 million at end 2007. This increase reflected the
assumption of new debt to finance the acquisition of an important
land area in one of the most attractive regions of Sao Paulo.
Overall, its debt profile remained adequate, with maturities
distributed over a five-year period, and composed of financings
from the Housing Financial System (31%), debentures (37%) and bank
notes (32%).
The first half of the year is seasonal in the Brazilian real
estate sector and tends to generate results lower than those of
the second half. Company showed decreases of 19% in net revenues
and 22% in EBITDA in the LTM ended June 2008, to BRL330 million
and BRL62 million, respectively, due to the accounting of a sale
of an office building (BRL273 million) in the first half of 2007.
If excluded such effect, its operational performance continued
evolving. Project launches and presales grew 23% and 54% in the
first half of 2008, in comparison with the first half of 2007.
Company's own land bank at end June 2008 showed a strong expansion
in a regional niche for operations over the next three years. Of a
total BRL3.1 billion VGV, 50% refers to a large land area in Porto
Belo, State of Santa Catarina, for the development of a mixed-use
project, residential and commercial, with launches planned to
start until the end of 2008 (5% of the total) and around 30% per
year from 2009 to 2011.
Company SA operates in the State of Sao Paulo, mainly in the Great
Sao Paulo area, with focus on the middle and high income classes.
The company became public through the Sao Paulo Stock Exchange in
February 2006. Its shareholding control is directly and
indirectly held by five individual shareholders, who respond for
company management.
DELTA AIR: S&P Sees US$500MM Loss for 2008; 'B' Rating Off Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on Delta
Air Lines Inc. (B/Negative/--), including the 'B' long-term
corporate credit rating.
S&P has removed all ratings from CreditWatch, where they were
placed with negative implications on May 22, 2008, as part of an
industrywide review. The rating outlook is negative.
"We expect that Delta will post a significant loss this year,
approaching US$500 million -- before large noncash charges -- due
to high and volatile fuel prices," said Standard & Poor's credit
analyst Philip Baggaley, "but its financial performance should
continue to be better than those of most peer large U.S.
airlines." That, plus expected positive operating cash flow and
adequate liquidity, support an affirmation of its corporate credit
rating. Our rating action is not based on Delta's proposed merger
with Northwest Airlines Corp. (also 'B/Negative/--').
DUKE ENERGY: S&P Puts BB Corporate Credit Rating, Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' corporate
credit rating to Brazil-based electric power generator Duke Energy
International, Geracao Paranapanema S.A. At the same
time, S&P assigned the Brazil National Scale rating 'brAA-' to
the company and the 'brAA-' rating to its first debentures
issuance of BRL300 million. The outlook is stable.
The rating reflects the company's historically stable financial
profile, with moderate debt, stable cash generation, and track-
record of positive free operating cash flow. This is a result of
a balanced portfolio between sales to the regulated and
competitive markets and efficiency in operational costs (EBITDA
margin of 64.4% in first-half 2008). These positive factors are
tempered by uncertainties regarding Duke Paranapanema's capacity
growth to comply with a privatization contract clause that
demands the company to expand its capacity by 15%; by the
significant competition from major players in the free market; by
some submarket risk; and by its exposure to the Brazilian
electric sector's regulatory framework, although it has showed a
positive track record over the past four years.
The stable outlook reflects S&P's expectation that the company
will continue recontracting a large portion of its freed-up
contracted sales from 2011 on, maintaining its current
conservative financial profile with adequate cash generation.
A positive outlook might be considered if the company presents
much enhanced credit metrics, in the absence of a growth plan
that could bring significantly more debt to its balance sheet.
Conversely, a change in its commercial strategy that potentially
poses risk in the company's future cash generation, or a major
debt-financed acquisition, coupled with a highly aggressive
dividend outlay, could bring the outlook to negative.
Headquartered in Sao Paulo, Brazil, Duke Energy International
Geracao Paranapanema SA is engaged in the generation of electric
power and is a subsidiary of Duke Energy International,
representing its primary interest in the Brazilian market. It
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.
DUKE ENERGY: Moody's Lifts Corporate Family Rating to Ba1 From Ba2
------------------------------------------------------------------
Moody's Investors Service has upgraded its local currency
corporate family rating for Duke Energy International, Geracao
Paranapanema S.A to Ba1 from Ba2. In addition, Moody's upgraded
Duke's Brazil National Scale corporate family rating to Aa2.br
from A1.br. The outlook for all ratings now is stable. This
rating action concludes the review process initiated on Aug. 11,
2008.
Moody's upgraded Duke's ratings as a result of its recent upgrade
of the level of supportiveness of Brazil's regulatory environment
(SRE) for regulated electric utilities, as explained in a Special
Comment entitled "Regulatory Environment Improves For Brazilian
Utilities" published on Aug. 25, 2008.
The upgrade of the SRE level is important since Moody's ratings
for electric utilities generally assign about equal importance to
regulatory and other qualitative factors and issuer-specific
financial metrics. In accordance with Moody's Rating Methodology:
Global Regulated Electric Utilities (March 2005), Moody's upgraded
the level of supportiveness to category 3, which indicates a
regulatory framework that is well developed but still has lower
assurance of timely cost recovery. Previously, Brazil's SRE was
category 4, which is reserved for the least supportive regulatory
frameworks.
Duke's rating reflects the company's solid capital structure,
characterized by its low level of indebtedness, healthy debt
maturity profile, steady cash generation and profitability. This
largely stems from its main 30-year concession contract granted in
1999, which allows the company to operate a 2,152 MW generation
portfolio in a relatively secure regulated market with predictable
profitability and cash flows. Duke is planning to raise
approximately BRL300 million in debentures to pay off a portion of
its BRL1 billion in secured long-term debt with Eletrobras, which
is expected to improve its debt maturity profile and reduce its
average cost of debt.
Currently, the company relies on medium-term energy supply
contracts equally divided between the regulated and unregulated
markets. These contracts should generate predictable and stable
cash flows for the next four to five years, given their relatively
secure nature. Moody's generally prefers regulated business
segment revenues, which are more predictable and allow for more
stable operating margins and cash flow. Unregulated energy
contracts expose Duke to potentially lower energy prices and
revenues in a scenario in which future tariffs decline. Almost
half of Duke's current revenues are generated in the unregulated
business segment. As contracts expire in the future, Duke is
expected to benefit from higher energy tariffs in light of current
expectations for a continued tight reserve margin in Brazil.
Expectations of higher electricity tariffs are supported by recent
new energy auctions, in which prices have dramatically exceeded
prevailing market rates. Duke's increasing exposure to the
unregulated energy market is further mitigated by the fact that
the bulk of the company's client portfolio is made up of large
consumers with solid credit profiles.
Moody's rating has also taken into consideration the company's
outstanding commitment of increasing by 15% the installed
generation capacity in the state of Sao Paulo by the end of 2007,
as stated in its acquisition contract when Duke was privatized.
Duke's fulfillment of this commitment has not yet been recognized
by the regulator or the state of Sao Paulo. Duke has had
difficulty in meeting this commitment because there are few sites
for new hydroelectric facilities in Sao Paulo and natural gas
shortages make the construction of new thermoelectric capacity a
questionable investment. Duke has been discussing this situation
with ANEEL and the Government of the State of Sao Paulo and is
reportedly seeking to postpone the expansion obligation for
another three years. The outcome and/or eventual penalties are
difficult to predict at this stage of discussions, but Moody's
does not believe that Duke's concession will be revoked, since
neither the current hydrology nor natural gas constraints are
within its management's power to change. Since the 15% expansion
obligation is not part of the concession contract, ANEEL could not
rule on the issue. Moody's view is that the obligation eventually
will be renegotiated between the company and the Sao Paulo state
government.
Nevertheless, the rating is constrained by the potential for
increased capital expenditures related to the fulfillment of this
commitment. Additional capital expenditures could reach as much
as BRL1.3 billion over a four to five year period without
jeopardizing Duke's ability to service its debt. Moody's believes
that Duke would most likely finance a part of these investments
with additional debt, thus causing some deterioration in credit
metrics, but Moody's expect that they would remain appropriate for
the rating category, particularly if the current relatively high
dividend payout ratio were adjusted downward in the event of
higher capital expenditures.
The rating incorporates Duke's current strong credit metrics,
which are in line with its local peer group and strong for the
rating category when compared with global peers, with Funds from
Operations (FFO) to Debt coverage of 26% in 2007 and 28% in the
last twelve months ended June 30, 2008, along with interest
coverage of over 3.0 for the last three years. These two metrics
were impacted by a slight increase in operating margins in 2007,
resulting from higher tariffs for new contracts in the regulated
market. During the last twelve months ended June 30, 2008, Duke's
posted high financial expenses of BRL224.2 million, about half of
which were related to non-cash monetary variation, since Duke's
debt with Eletrobras in indexed to the IGP-M general price
inflation index, which came in 13.4% for the 12-month period
ending on June 30, 2008. Since Duke's tariffs are also
contractually linked to inflation indexes, the higher level of
inflation should cause cash generation to improve in the second
half of the year. Duke's operating cash flow should approximately
vary in line with inflation adjustments until 2011, when about 30%
of Duke's existing energy contracts mature. This expected
turnover of energy contracts would most likely result in higher
average tariffs with a positive impact on cash flow.
The rating is constrained by the low level of Retained Cash Flow
to Debt of approximately 11% in the last four years, which is
below the peer group average. Low retained cash flow results
from a high level of dividends paid to its parent company, Duke
Energy Corporation (Baa2/Stable outlook),which is expected to
remain a limiting factor for the rating in the future. Duke's
cash flow as measured by FFO is expected to remain solid somewhat
from 2007 levels but remain stable thereafter up to 2011, when
approximately 30% of existing energy contracts matures. This
expected turnover of available energy contracts would, most
likely, result in higher tariffs with a positive impact on cash
flow. Duke's capital expenditures at approximately BRL30 million
per year is relative small as compared to its peers, which could
eventually change should the company be obligated to expand
capacity to meet contract requirements.
The most important factor constraining the ratings has been the
Brazilian regulatory framework, which has a history of being
unpredictable but has undergone substantial change over the past
several years. The uncertainties brought about by constant
changes in the Brazilian regulatory framework over the past two
decades have been mitigated by the electricity regulatory model
implemented in 2004. This model provides a more supportive
environment for acceptable rates of return since the current rules
for electric utilities are transparent and technically driven,
thus increasing predictability of return on invested capital. In
light of this relevant improvement, Moody's recently lifted the
Brazilian regulatory framework to Category 3 from 4. Nonetheless,
Moody's still believe there is a lower assurance of timely
recovery of costs and investments in Brazil since the new
framework has not yet experienced prolonged period of high
inflation, exchange rate devaluation or electricity rationing.
Potential future electricity shortages due to a tight reserve
margin, limited independence of the regulator and minimal
jurisprudence backing the new regulatory framework were also taken
into consideration in Moody's evaluation of this factor.
Duke has adequate liquidity, with short-term debt of BRL167.7
million and cash and marketable securities of BRL212.7 million, in
addition to positive free cash flow of BRL240 million in the last
12 months ended on June 30, 2008. The bulk of short term debt is
related to the current portion of the long term Eletrobras' debt
with a final maturity on May 15, 2013. This debt is expected to
be partially refinanced with the proposed issuance of
approximately BRL300 million in debentures maturing in 2013 and
2015. The financial covenant EBITDA to Net Financial Result of
2.0 in the indenture of the proposed debentures is relatively
tight based upon recent performance. However, Moody's projections
indicate that Duke will maintain an adequate financial expenses
coverage ratio as long as IGP-M inflation remains below 20% on a
twelve-month cumulative basis.
The stable outlook reflects Moody's expectation that Duke will
maintain strong credit metrics, but relatively low free cash flow,
due to an expected continuation of a high dividend pay-out ratio.
An upgrade would require a resolution of the ongoing negotiation
with regulators and the state government with regard to the
mandatory capacity expansion clause in Duke's acquisition
contract. In addition, an upgrade would require a RCF to Debt
ratio in the range of 15% to 20% and a cash interest coverage
ratio, as measured by FFO to cash interest expense of above 4.0 on
a sustainable basis.
Downward rating pressure could result from higher than expected
capital expenditures and/or dividend payments, such that the
company's RCF to Debt ratio falls below 10% and cash interest
coverage drops below 2.5 for an extended period of time. A
deterioration in Duke's liquidity profile together with tighter
than expected financial covenants could also result in a rating
downgrade.
In the last twelve months ended June 30, 2008, the Brazilian
company reported net sales of BRL657 million (US$369 million) and
net profit of BRL48 million (US$27 million).
Headquartered in Sao Paulo, Brazil, Duke Energy International
Geracao Paranapanema SA is engaged in the generation of electric
power and is a subsidiary of Duke Energy International,
representing its primary interest in the Brazilian market. It
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.
DUKE ENERGY: Moody's Latina Puts Ba2 Rating on Proposed Debentures
------------------------------------------------------------------
Moody's America Latina Ltda. has assigned a Aa3.br Brazil National
Scale rating and Ba2 local currency rating to the proposed
floating-rate, senior unsecured debentures expiring in 2013 and
2015 to be issued by Duke Energy International Geracao
Paranapanema S.A. in the domestic market. The rating outlook is
stable.
The assigned ratings are one notch below Duke's Ba1 local currency
and Aa2.br national scale corporate family ratings. The debenture
ratings are below the corporate family ratings because Moody's
expect that secured debt owed to Eletrobras will continue to
represent a significant portion of the utility's total debt over
the medium term. Although the Eletrobras debt is secured with
future customer receivables and not asset pledges, it is likely to
be ranked above the debentures in the priority of claims. The
ratings could be upgraded if there is a significant decrease in
Duke's secured debt.
The Aa3.br national scale rating assigned to the debentures
reflects the standing of the company's credit quality relative to
its domestic peers. Moody's National Scale Ratings (NSRs) are
intended as relative measures of creditworthiness among debt
issuances and issuers within a country, enabling market
participants to better differentiate relative risks. NSRs in
Brazil are designated by the ".br" suffix. Issuers or issues
rated Aa3.br demonstrate very strong 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.
In the last twelve months ended June 30, 2008, the company
reported net sales of BRL657.1 million (US$369.5 million) and net
profit of BRL48.2 million (US$27.1 million).
Headquartered in Sao Paulo, Brazil, Duke Energy International
Geracao Paranapanema SA is engaged in the generation of electric
power and is a subsidiary of Duke Energy International,
representing its primary interest in the Brazilian market. It
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.
PARANA BANCO: Picks Bank of NY Mellon as Depositary Bank
--------------------------------------------------------
Parana Banco S.A. has selected The Bank of New York Mellon as the
depositary bank for its American depositary receipt (ADR) program.
Each Parana Banco ADR represents one preferred share. The ADRs
trade on the over-the-counter market under the symbol "PARPY."
The preferred shares are listed on the Sao Paulo Stock Exchange
(BOVESPA) under the symbol "PRBC4."
Parana Banco is a multiple services bank focused on payroll-
deductible loans, middle market lending and credit activities,
surety and performance bonds, and reinsurance. It operates in
Brazil through its own branches, a nationwide network of 92
franchises, call center, and more than 600 credit brokers.
"By offering investors an option to buy and trade Parana Banco's
shares in ADR form, we look forward to attracting new investors to
Brazil's robust and growing banking segment and, with it, the
potential for higher trading volume on both markets," remarked
Luis Cesar Miara, Chief Financial Officer of Parana Banco.
"We are delighted to have the opportunity to support Parana
Banco's capital market objectives in the US equity markets through
the establishment of its Level I ADR program," said Michael Cole-
Fontayn, chief executive officer of The Bank of New York Mellon's
Depositary Receipt Division. "As the world's leading depositary,
The Bank of New York Mellon will help Parana Banco capitalize on
the significant US investor demand for Brazilian DRs."
The Bank of New York Mellon acts as depositary for more than 1,300
American and global depositary receipt programs, acting in
partnership with leading companies from 64 countries. With an
unrivaled commitment to helping securities issuers succeed in the
world's rapidly evolving financial markets, the Company delivers
the industry's most comprehensive suite of integrated depositary
receipt, corporate trust and stock transfer services. Additional
information is available at www.bnymellon.com/dr.
The Bank of New York Mellon Corporation is a global financial
services company focused on helping clients manage and service
their financial assets, operating in 34 countries and serving more
than 100 markets. The company is a leading provider of financial
services for institutions, corporations and high net-worth
individuals, providing superior asset management and wealth
management, asset servicing, issuer services, clearing services
and treasury services through a worldwide client-focused team. It
has more than US$23 trillion in assets under custody and
administration, more than US$1.1 trillion in assets under
management, and services US$12 trillion in outstanding debt.
Headquartered in Curitiba, Brazil, Parana Banco --
http://www.paranabanco.com.br/-- is a niche bank in the segment
of payroll discount lending, primarily to public-sector
employees with adjusted assets of BRL1.9 billion (US$1.1
billion) as of March 2008. The bank is a relevant part of a
broader conglomerate (J. Malucelli), with operations in
different sectors and concentrated in the South of Brazil.
Standard & Poor's does not assign ratings to any company in the
J. Malucelli group, and the ratings assigned to the bank do not
incorporate potential support from shareholders.
As reported in the Troubled Company Reporter-Latin America on
July 17, 2008, Standard & Poor's Ratings Services assigned its
'B+' foreign-currency debt rating to US$50 million in unsecured,
unsubordinated, three-year notes of Parana Banco S.A. (global
scale: B+/Stable/B, Brazil national scale: brBBB+/Stable/--), to
be issued through its principal office in Brazil.
SADIA SA: Board Okays Proposal on Avicola Industrial Merger
-----------------------------------------------------------
Sadia S.A.'s Board of Directors approved the proposal for merger
by absorption of its controlled company Avicola Industrial Buriti
Alegre Ltda., established in the State of Goias.
Sadia aims to obtain operational and corporate benefits, leading
to significant economies of scale due to the reduction of expenses
as a result of the standardization and streamlining of the
administrative and operational activities of both companies. The
said merger by absorption will be submitted to the appreciation
and deliberation of the shareholders at an extraordinary general
meeting to be held on September 29, 2008, in accordance with a
call notice published on this same date and will conform to the
following terms of the corresponding Protocol of Merger By
Absorption executed on this date:
1) Base date for the valuation of the net equity of the
Merged Company: July 31, 2008;
2) Upon the formal merger act, the Merging Company, Sadia
S.A., will become the title holder of 100% of the units of
the capital stock of the Merged Company with no increase
in the capital nor change in the purpose of the Merging
Company since the activities of both companies are
compatible;
3) The net asset value of the Merged Company was appraised by
a specialist company based on net book value and the full
content of the Protocol and of the corresponding appraisal
are at the disposal of the stakeholders as from the
publication of the call notice of the general meeting,
with due observation of the pertinent legal and statutory
time frames.
About Sadia
Headquartered in Sao Paulo, Brazil, Sadia S.A. --
http://www.sadia.com-- operates in the agro industrial and food
processing sectors in Brazil and primarily produces a range of
processed products, poultry, and pork. The company distributes
around 1,000 different products through distribution and sales
centers located in Brazil, China, Japan and Italy.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 24, 2008, Moody's affirmed its Ba2 local currency corporate
family rating and senior unsecured foreign currency rating for
Sadia S.A., but changed the rating outlook to stable from
positive. The change in outlook was primarily prompted by
Moody's view that margin pressure and negative free cash flow
will postpone Sadia's attainment of improved credit metrics.
TCR-Latin America reported on June 23, 2008, Standard & Poor's
Ratings Services has raised its long-term corporate credit
rating on Brazilian food producer Sadia S.A. to 'BB+' from 'BB'.
The rating on the company's US$250 million notes was also raised
to 'BB+'. The outlook is stable. Sadia's total debt
outstanding at Dec. 31, 2007, was approximately US$2 billion.
SADIA SA: Shareholders General Meeting Scheduled for September 29
-----------------------------------------------------------------
Sadia S.A. will hold its shareholders' Extraordinary General
Meeting of to on September 29, 2008, at 2:00 p.m., at its main
address at Rua Senador Attilio Fontana No. 86, in Concordia-SC.
The purpose of this meeting is to discuss and make a resolution
about the following Order of Business and pertinent Remarks:
a) Discussion of the proposal submitted by the Board of
Directors, for the absorption of Avicola Buriti Alegre
Ltda;
b) Approval of the appointment of a specialist company to
prepare the corresponding appraisal report;
c) Examination of the appraisal report and resolution about
the merger by absorption.
Proxies for the general meeting will be received at the Sao Paulo
Administrative Center at Rua Fortunato Ferraz, n deg. 529/659,
Gate 2, 2nd. floor, Vila Anastacio-Sao Paulo-SP, Investors
Relations Management, no later than 5:00 p.m., September 25, 2008.
The shareholders will find at their disposal, at the company's
headquarters and at the company web site, the documentation on the
matters to be appreciated at the extraordinary general meeting of
shareholders, in compliance with Paragraph 3 of article 135 of Law
6404/76 and CVM Instruction 319, of December 3, 1999, amended by
CVM Instructions Nos. 320/99 and 349/01.
About Sadia
Headquartered in Sao Paulo, Brazil, Sadia S.A. --
http://www.sadia.com-- operates in the agro industrial and food
processing sectors in Brazil and primarily produces a range of
processed products, poultry, and pork. The company distributes
around 1,000 different products through distribution and sales
centers located in Brazil, China, Japan and Italy.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 24, 2008, Moody's affirmed its Ba2 local currency corporate
family rating and senior unsecured foreign currency rating for
Sadia S.A., but changed the rating outlook to stable from
positive. The change in outlook was primarily prompted by
Moody's view that margin pressure and negative free cash flow
will postpone Sadia's attainment of improved credit metrics.
TCR-Latin America reported on June 23, 2008, Standard & Poor's
Ratings Services has raised its long-term corporate credit
rating on Brazilian food producer Sadia S.A. to 'BB+' from 'BB'.
The rating on the company's US$250 million notes was also raised
to 'BB+'. The outlook is stable. Sadia's total debt
outstanding at Dec. 31, 2007, was approximately US$2 billion.
TELE NORTE: Board Grants Extraordinary Dividends Payment
--------------------------------------------------------
Tele Norte Leste Participacoes S.A. and Telmar Norte Leste S.A.
disclosed that their Board of Directors decided, during their
respective meetings held on August 28, 2008, to approve the
distribution of extraordinary dividends, pursuant to the terms and
conditions described:
(a) TMAR: payment of a total amount of BRL3,896,178,090.68 to
TMAR's shareholders, pursuant to their shareholding
position as of September 11, 2008 (in Bovespa);
(b) TNE: payment of a total amount of BRL1,200,004,546.34 to
TNE's shareholders, pursuant to their shareholding
position as of September 11, 2008 (in Bovespa);
(c) Payment: the extraordinary dividends mentioned herein
will be paid to shareholders of TMAR and TNE starting on
September 19, 2008 through Banco do Brasil S/A, pursuant
to the following terms and conditions:
1. Amount of Extraordinary Dividends: Shareholders with a
shareholding position as of September 11, 2008 shall
receive extraordinary dividends as follows:
(a) TMAR:
Shares Price per Share Total Amount
(BRL) (BRL)
TMAR3 (ON) 15.5494 1,664,766,858.29
TMAR5 (PNA) 17.1045 2,228,097,081.58
TMAR6 (PNB) 3.1149 3,314,150.81
----------------
Total: 3,896,178,090.68
(b) TNE:
Shares Price per Share Total Amount
(BRL) (BRL)
TNLP3 (ON) 3.1390 400,351,202.14
TNLP4 (PN) 3.1390 799,653,344.20
and ADR ----------------
Total: 1,200,004,546.34
(c) TMAR and TNE: All shares of both companies will be
traded extraordinary dividends from September 12,
2008.
About Tele Norte Leste
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes S.A. -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
* * *
As reported on April 27, 2007, Standard & Poor's Ratings
Services placed on CreditWatch with negative implications the
'BB+' corporate credit rating on Tele Norte Leste Participacoes
S.A. The creditwatch resulted from TmarPart's decision to buy
out its holding company's preferred shares.
==========================
C A Y M A N I S L A N D S
==========================
ALTIMA GLOBAL: Deadline for Proofs of Claim Filing Is Sept. 2
-------------------------------------------------------------
Altima Global Special Situations Fund 1 Ltd.'s creditors have
until Sept. 2, 2008, to prove their claims to David Sargison, 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.
Altima Global's shareholder decided on July 24, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
David Sargison
c/o Ogier
P.O. Box 1234
Grand Cayman, Cayman Islands
Contact for inquiries:
Jonathan McLean
Tel: (345)949-9876
Fax: (345)949-1986
APACHE AUSTRIA: Holding Final Shareholders Meeting Today
--------------------------------------------------------
Apache Austria Investment II LDC will hold its final shareholders
meeting on Sept. 1, 2008, at 10:00 a.m., at the registered office
of the company.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the 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.
Apache Austria's shareholders agreed on July 23, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
P.O. Box 1111
Grand Cayman, Cayman Islands
Contact for inquiries:
Avril G. Brophy
Telephone: 949-5122
Fax: 949-7920
APACHE AUSTRIA III: Sets Final Shareholders Meeting on Sept. 2
--------------------------------------------------------------
Apache Austria Investment III LDC will hold its final shareholders
meeting on Sept. 2, 2008, at 10:00 a.m., at the registered office
of the company.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the 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.
Apache Austria's shareholders agreed on July 10, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
P.O. Box 1111
Grand Cayman, Cayman Islands
Contact for inquiries:
Avril G. Brophy
Telephone: 949-5122
Fax: 949-7920
E2E SUPPLY: Deadline for Proofs of Claim Filing Is Today
--------------------------------------------------------
E2E Supply Ltd.'s creditors have until Sept. 1, 2008, to prove
their claims to Men Yihu, 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.
E2E Supply's shareholders agreed on July 16, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Men Yihu
P.O. Box 268GT
Grand Cayman, Cayman Islands
Contact for inquiries:
Rhonda Laws
Tel: (345)949-2648
Fax: (345)949-8613
OBJECTSTAR INTERNATIONAL: Claims Filing Deadline Is Today
---------------------------------------------------------
Objectstar International Ltd.'s creditors have until Sept. 1,
2008, to prove their claims to Westport Services Ltd., 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.
Objectstar International's shareholder decided on July 16, 2008,
to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
c/o Paget-Brown Trust Company Ltd.
Boundary Hall, Cricket Square
P.O. Box 1111
Grand Cayman, Cayman Islands
Contact for inquiries:
Evania Ebanks
Tel: (345)949-5122
Fax: (345)-949-7920
PROCIFIC MAINSTREAM: Final Shareholders Meeting Is on Sept. 2
-------------------------------------------------------------
Procific Mainstream Ltd. will hold its final shareholders meeting
on Sept. 2, 2008, at the offices of Procific Mainstream Limited,
211 Corniche Street, Abu Dhabi, United Arab Emirates.
These matters will be taken up during the meeting:
1) accounting of the wind-up process,
2) determining manner in which the winding up has been
conducted and the property of the Company disposed of,
3) and hearing any explanation that may be given by the'
Liquidator.
Procific Mainstream's shareholders agreed on July 15, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Ahmed Ghubash
c/o Charles Adams, Ritchie & Duckworth
P.O. Box 709
Zephyr House, Mary Street
George Town, Grand Cayman
Cayman Islands
Contact for inquiries:
Alan G. de Saram
Tel: 949-4544
Fax: 949-8460
SHANGHAI CENTURY: Proofs of Claim Filing Deadline Is Today
----------------------------------------------------------
Shanghai Century Acquisition Corp.'s creditors have until Sept. 1,
2008, to prove their claims to Cosimo Borrelli and Jacqueline
Walsh, 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.
Shanghai Century's shareholders agreed on July 8, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Cosimo Borrelli and Jacqueline Walsh
P.O. Box 2681GT
Grand Cayman, Cayman Islands
Contact for inquiries:
Krysten Lumsden
Tel: (345)945-3901
Fax: (345)945-3902
===============
C O L O M B I A
===============
ECOPETROL SA: Will Soon be Traded on NYSE
-----------------------------------------
Ecopetrol SA will soon be traded as ADRs–American Depositary
Receipts– on the New York Stock Exchange as soon as October,
Colombia Reports says citing analysts consulted by El Colombiano.
The report says since the company sold 10 percent of its shares to
the public a year ago, the stock price has jumped from US$0.75 to
US$1.34 and in just the first six months of 2008, profits before
taxes, depreciation and amortization grew 76 percent.
The positive numbers mark a sharp turnaround for Ecopetrol, which
just a few years ago was just another of the region’s many under
performers, the report notes, citing Latin Business Chronicle.
Meanwhile, according to the report, the good news may well prove
bitter to some 2,000 Colombians who La Republica said recently
lost their Ecopetrol shares due to failure to make promised
payments. Roughly 9,300 others still have time to pay up, the
report adds.
About Ecopetrol
Ecopetrol S.A. is an integrated-oil company that is wholly owned
by the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas. Ecopetrol
produced 385,000 barrels a day of oil and gas in 2006 and has
330,000 barrels a day of refining capacity. In 2005, it
produced about 60 percent of Colombia 's daily output.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A.'s foreign
and currency issuer default rating at 'BB+'.
=============
J A M A I C A
=============
NATIONAL COMMERCIAL: Takes Dispute With Olint to Privy Council
--------------------------------------------------------------
Radio Jamaica reports that the United Kingdom Privy Council will
hear on Nov. 6, 2008, the National Commercial Bank Jamaica
Limited's appeal on a court ruling that prevented the bank from
closing Olint Corp. Limited's accounts.
As reported in the Troubled Company Reporter-Latin America on
July 30, 2008, the National Commercial is seeking to close Olint's
accounts for reasons that include Olint's continued failure to
provide audited financial statement. Olint was granted injunction
that prevented the National Commercial from closing the accounts.
A series of denied appeals from the National Commercial followed,
until the bank decided to go to the UK Privy Council. However,
the court that handled the case turned down the National
Commercial's application for leave to go to the Privy Council to
appeal the ruling in its case against Olint.
“We have filed a petition to the Privy Council for leave to appeal
the Court of Appeal's decision,” RJR News' Financial Report quoted
the National Commercial's legal counsel Dave Garcia as saying.
Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services. The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services. Founded in
1977, the bank primarily operates in West Indies and the U.K.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 3, 2008, Fitch Ratings affirmed National Commercial
Bank Jamaica Limited's ratings on long-term foreign and local
currency Issuer Default Ratings at 'B+'; short-term foreign and
local currency IDRs at 'B'; Individual at 'D'; Support at 4; and
Support Floor at 'B'.
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
OLINT CORP: Nat'l Commercial Takes Dispute to Privy Council
-----------------------------------------------------------
Radio Jamaica reports that the United Kingdom Privy Council will
hear on Nov. 6, 2008, the National Commercial Bank Jamaica
Limited's appeal on a court ruling that prevented the bank from
closing Olint Corp. Limited's accounts.
As reported in the Troubled Company Reporter-Latin America on
July 30, 2008, the National Commercial is seeking to close Olint's
accounts for reasons that include Olint's continued failure to
provide audited financial statement. Olint was granted injunction
that prevented the National Commercial from closing the accounts.
A series of denied appeals from the National Commercial followed,
until the bank decided to go to the UK Privy Council. However,
the court that handled the case turned down the National
Commercial's application for leave to go to the Privy Council to
appeal the ruling in its case against Olint.
“We have filed a petition to the Privy Council for leave to appeal
the Court of Appeal's decision,” RJR News' Financial Report quoted
the National Commercial's legal counsel Dave Garcia as saying.
Olint Corp. Limited is an investment scheme based in Jamaica.
It has operations in Turks and Caicos and the U.S. It has been
facing legal problems since 2006 when the Financial Services
Commission served a cease-and-desist order on the firm. On
Dec. 24, 2007, the court ruled that the operations of Olint
breached provisions of the Securities Act. The firm had been
dealing in securities and engaging in the participation of a
profit-sharing agreement, issuing investment contracts, and
providing advice to potential investors without licenses and
registration. Olint appealed the ruling and was granted a stay
of execution of the cease-and-desist order until the appeal was
heard in February 2008.
===========
M E X I C O
===========
CABLEMAS SA: Reports MXN41.5 Million Net Income in 2nd Qtr. 2008
----------------------------------------------------------------
Cablemas, S.A. de C.V., has released its results for the three and
six-month period ending June 30, 2008.
Cablemas Chief Executive Officer Carlos M. Alvarez Figueroa
commented, "We are pleased to report another quarter of strong
revenue growth. As expected, Adjusted EBITDA margin was 38.1%
compared to 39.1% in second quarter 2007."
Mr. Alvarez Figueroa continued, "We continue to grow our customer
base. Cable television subscribers rose 6.9%, high speed internet
10.3% and IP telephony 121.9% year-on-year. To continue making
the most of the opportunities present in our markets, we have
decided to step up the roll out of our IP telephony services, and
we will be adding new cities in the second half of the year."
Second Quarter 2008 Consolidated Results
Net Revenues
Net revenues increased 14.1%, or MXN95 million, during second
quarter 2008 to MXN769.6 million primarily from these segments:
-- Cable Television: The 9.1% growth in cable television
revenues, from MXN511.2 million to MXN557.8 million was
principally due to a 6.9% year over year increase in the
number of subscribers to 805,390 with a penetration rate of
33.9%. Average monthly cable television revenues per
subscriber (ARPU) increased year over year to MXN232.6 from
MXN228.8, principally reflecting the increase in rates at
the Minibasic service implemented earlier in the year.
Average monthly net churn rates for cable television
increased year-on-year by 29 bps to 2.6%, reflecting the
initial reaction to the above mentioned rate increase. On a
sequential basis, however, churn declined compared from the
3% posted in the first quarter of 2008.
-- High Speed Internet: The 17.3%, or MXN20.6 million, rise in
high-speed Internet revenues to MXN139.4 million resulted
mainly from a 10.3% increase in the number of subscribers
to 224,799, with a penetration rate of 11.4%. High-speed
Internet ARPU increased to MXN205.7 from MXN196.8 in second
quarter 2007, reflecting an increase in demand for higher
speed service. Average monthly net churn rates for
high-speed Internet rose 4 bps to 4.55% in second quarter
2008 due to high competition.
-- IP Telephony: IP telephony revenues for the quarter rose by
MXN23.4 million, to MXN53 million. The number of IP
telephony lines in service rose 121.9% to 67,012 from
30,202 at the end of second quarter 2007. IP telephony
ARPU for second quarter 2008 declined to MXN288.9 from
MXN315.5 in the year-ago quarter reflecting the ramping up
of this service in new cities. This does not include
migration fees paid to Cablemas by Axtel for new
subscribers which, if included, would increase IP telephony
ARPU to MXN292.7 for second quarter 2008.
Operating Profit
Operating profit for second quarter 2008 decreased by 22.3%, or
MXN35.4 million, to MXN122.8 million, driven mainly by a MXN3.7
million decrease in gross profit and a MXN31.65 million rise in
SG&A. Operating margin fell 748 bps to 16% from 23.4% in second
quarter 2007.
Cost of Services and SG&A Expenses
Cost of Services for second quarter 2008 rose 31.1%, or MXN98.66
million. Selling, General and Administrative Expenses (including
depreciation and amortization) or SG&A, increased MXN31.65
million, or 15.9% year over year to MXN231.1 million. As a
percentage of sales SG&A increased to 30%, from 29.6% in second
quarter 2007.
Adjusted EBITDA
Adjusted EBITDA for second quarter 2008 increased 6.1%, or
MXN16.4 million, to MXN286.6 million. The adjusted EBITDA margin
decreased 282 bps to 37.2%.
Comprehensive Financial Results, Net
Net comprehensive financial results were an expense of MXN 27.8
million for the three-months ended June 30, 2008, a decrease of
MXN46.17 million over an expense of MXN 74 million for second
quarter 2007. The decrease primarily reflected a MXN72.2 million
financial instrument loss in second quarter 2008 compared with a
MXN0.6 million loss in second quarter 2007. In addition, pursuant
to NIF B-10, inflation accounting is not applicable for 2008 and
thus the result from monetary position is not determined for 2008.
The non-monetary financial instruments loss was the result of the
Cablemas' hedging strategy. The MXN23.3 million non-monetary
foreign exchange gain reflects the appreciation of the Mexican
peso against the US dollar.
Net Income
For second quarter 2008, Cablemas posted a net gain of MXN41.5
million, compared with a net gain of MXN48.6 million second
quarter 2007. Net income margin fell to 5.4% from 7.2% for
second quarter 2007.
First Half 2008 Consolidated Resutls
Net Revenues
Net revenues increased 16.2%, or MXN214.6 million, during first
half of 2008 to MXN1,540.5 million.
-- Cable Television: The 10.7%, or MXN108.07 million, growth
in cable television revenues was principally due to a 6.9%
year over year increase in the number of subscribers to
805,390, with a penetration rate of 33.9%. Average monthly
cable television revenues per subscriber (ARPU) rose 1% to
MXN233.6. This raise in ARPU was primarily the result of
the increase in rates at the Minibasic service implemented
earlier in the year. The average monthly net churn rates
for cable television rose 29 bps to 2.6% for first six
months 2008 from 2.3% in first half 2007.
-- High Speed Internet: Revenues rose 21.8%, or MXN50.2
million, to MXN280.3 million. The rise in high-speed
Internet revenues resulted mainly from a 10.3% increase in
the number of subscribers to 224,799, with a penetration
rate of 11.4%. A 4% increase in high-speed Internet ARPU
to MXN209.8 reflecting the increase in bandwidth offered
also contributed to the increase in revenue. Average
monthly net churn rates for high-speed Internet rose to
4.55% for first six months 2008 from 4.51% in first half
2007 due to high competition.
-- IP Telephony: IP telephony revenues for the period rose
76.6%, or MXN41.76 million, to MXN96.3 million. As of June
30, 2008, there were 67,012 IP telephony lines in service,
up from 30,202 as of June 30, 2007. IP telephony ARPU for
first half 2008 rose 0.1% to MXN291.4. This does not
include migration fees paid to Cablemas by Axtel for new
subscribers which, if included, would increase IP telephony
ARPU to MXN 296.9 for first half 2008.
Operating Profit
Operating profit for first half 2008 declined by 7.4%, or MXN21.7
million, to MXN270.6 million, driven mainly by a increases of
16.4% in SG&A and 6.3% in gross profit. Operating margin declined
to 17.6% from 22.1% in first half 2007, principally due to higher
cost of services as a percentage of sales.
Cost of Services and SG&A Expenses
Cost of Services for first six months 2008 increased by 26.9%, or
MXN171.6 million. The increase in cost of services was primarily
due to:
Selling, General and Administrative Expenses (including
depreciation and amortization) or SG&A, increased MXN64.7
million, or 16.4% year over year to MXN459.9 million. As a
percentage of sales, SG&A rose to 29.9% from 29.8%.
Adjusted EBITDA
Adjusted EBITDA for first half 2008 increased 12.7%, or MXN66.3
million, to MXN586.9 million. The adjusted EBITDA margin
declined 117 bps to 38.1% from 39.3%.
Comprehensive Financial Results, Net
Net comprehensive financial results was an expense of MXN118.3
million for first six months 2008, an increase of MXN34.1 million
from an expense of MXN84.2 million for first half 2007. This
mainly reflected an increase in interest income, higher interest
expenses as a result of the MXN127.6 million increase in gross
debt. In addition, pursuant to NIF B-10, inflation accounting is
not applicable for 2008 and thus the result from monetary position
is not determined for 2008. The non-monetary financial instruments
loss was the result of the company's hedging strategy. The MXN6.3
million non-monetary foreign exchange loss in first half 2008
reflects the appreciation of the Mexican peso against the US
dollar.
Net Income
For first half 2008, Cablemas posted a net gain MXN74.7 million,
a 54.5%, or MXN89.5 million, reduction compared to a MXN164.1
million gain in first half 2007. Net income margin lowered to
4.8% from 12.4% for first half 2007.
CAPEX
Capital expenditures for first six months of 2008 increased 1.8%,
or MXN10.6 million, to MXN591.9 million from MXN581.3 million in
first half 2007. Capital expenditures principally related to
investments incurred in connection with the roll out of IP
telephony and to expand and upgrade Cablemas' network.
As of June 30, 2008, Cablemas had a network of 14,166 km, of
which 85% was bidirectional, 89% was operating at or greater than
550 MHz and 77% was operating at or greater than 750 MHz.
Debt Structure and Cash Flow
Consolidated gross debt as of June 30, 2008, totaled MXN 2,329.3
million, of which MXN 2,323.2 million was long-term and MXN 6.1
million was short term. Consolidated gross debt rose year over
year by 5.8%, from MXN2,201.7 million as of June 30, 2007. This
was mainly the result of the 5-year term syndicated loan facility
for US$50 million entered with JP Morgan on Dec. 21, 2007, which
funds were used to finance Cablemas' proportionate ownership share
of Cablestar, S.A. de C.V. in the acquisition of the majority of
the assets of Bestel, S.A. de C.V. On a sequential basis,
however, consolidated debt declined by 3.8%, from MXN2,420.3 as of
March 31, 2008.
Net debt, which is calculated as total debt minus cash and cash
equivalents, decreased year over year by 12.7% to MXN1,875.7
million, from 2,149 million as of June 30, 2007. As of June 30,
2008, Cablemas had a cash balance of MXN453.6 million.
Cash flow from operations during first half 2008 increased 40.6%,
or MXN175.7 million, to MXN608.3 million. Net borrowings
increased by MXN313.3 million. CAPEX for first half 2008
increased MXN10.6 million to MXN591.9 million. Investments were
principally related to the upgrade and expansion of Cablemas'
network, customers' premises equipment investments and the roll
out of IP telephony.
Key Events
Offer to Purchase Cablemas' 9.375% Senior Guaranteed Notes due
Nov. 15, 2015.
On June 2, 2008, a Change in Control may have occurred with
respect to the company, as a result of certain amendments to the
Irrevocable Trust Agreement Number 15377-8 dated Nov. 22, 2006
between the company's shareholders and Banco Nacional de Mexico,
S.A., Institucion de Banca Multiple, Grupo Financiero Banamex,
Division Fiduciaria, as trustee. Accordingly, on July 2, 2008
the company offered to purchase any and all of the Notes at a
purchase price of 101% of the principal amount thereof, plus
accrued and unpaid interest up to, but not including, the Payment
Date.
The Offer to Purchase expired on July 30, 2008, with holders of
approximately US$300,000 tendering the Notes.
About Cablemas
Headquartered in Mexico City, Cablemas SA de CV --
http://www.cablemas.com-- is the second largest Cable TV
service providers in Mexico servicing over 797,018 cable tv
subscribers and 220,446 high-speed Internet subscribers as well
as 41,062 IP telephony lines with 2,204,603 homes passed.
Cablemas is the concessionaire with the broadest coverage in
Mexico, operating in 46 cities throughout the country's oil,
maquiladora and tourist regions as of Dec. 31, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 28, 2008, Standard & Poor's Ratings Services has upgraded
Mexican cable TV operator Cablemas S.A. de C.V., including
raising the long-term corporate credit ratings. S&P raised the
global scale rating to 'BB' from 'BB-' and the national scale
rating to 'mxA' from 'mxA-'. At the same time, S&P removed the
ratings from CreditWatch, where they had been placed with
positive implications on May 16, 2008. S&P said the outlooks are
stable.
TCR-Latin America also reported on May 21, 2008, Moody's
Investors Service has upgraded Cablemas S.A. de C.V.'s corporate
family rating and the rating on its US$175 million of global
notes due 2015 to Ba3 from B1.
Cablemas also carried these ratings with a Stable Rating Outlook
from Fitch:
-- Foreign Currency Issuer Default Rating 'BB-';
-- Local Currency Issuer Default Rating 'BB-';
-- US$175 million senior notes due 2015 'BB-'; and
-- National scale 'A(mex)'.
FEDERAL-MOGUL: Shows Stability Amid Auto Sales Slump
----------------------------------------------------
Analyst at rating agency, Standard & Poor's said autoparts
supplier, Federal-Mogul Corp., is unlikely to follow its peers
into bankruptcy, Bloomberg News related.
Recently, autoparts supplier Cadence Innovation LLC and Intermet
Corp. filed for Chapter 11 bankruptcy, joining other auto
suppliers Progressive Molded Products, Inc., Plastech Engineered
Products, Inc., and Blue Water Automotive Systems, Inc., which
filed for bankruptcy earlier this year. Grant Thornton LLP said
in a report dated August 8, 2008, that as many as a third of
North American autoparts supplier, including closely hedl firms,
are at risk for bankruptcy. However, Nancy Messer, an analyst at
S&P, told Bloomberg that Federal-Mogul won't be joining them.
Federal-Mogul is one of the few companies in this sector with a
stable outlook, Ms. Messer told Bloomberg. S&P gives
Federal-Mogul a BB- corporate credit rating.
Fund managers echoes Ms. Messer's confidence in Federal-Mogul.
According to Bloomberg, Federal-Mogul is "well-positioned" given
the fact that the company gets more than a third of its revenues
and most of its profits from selling replacement items like
Champion spark plugs and because 60% of the company's business is
outside the United States, exposing it to faster-growing
economies.
Federal-Mogul's overall business strategy -- from heavily
investing in its aftermarket business, to expanding outside the
auto industry, and improving fuel efficiency for its autoparts
supplies -- contributes to the company's stability amidst the
current automotive sales slump, Bloomberg said. The news agency
said that Federal-Mogul gets 39% of its 2007 revenue from its
aftermarket business and is in negotiations with a Chines
wind-turbine manufacturer. The report cited that Federal-Mogul's
competitors in the auto industry are more at risk to bankruptcy
because they have no significant aftermarket business.
The 11% decline in U.S. auto sales this year through July, higher
raw materials costs, and the credit crisis are weighing on
U.S.-based partsmakers, Bloomberg said. Annual vehicle sales may
fall to 14,200,000 units, the lowest since 1993, according to
J.D. Power & Associates, a Westlake Village, California-based
market research firm, Bloomberg added.
Robert Goodman, an analyst at CRT Capital Group, recommends a buy
for Federal-Mogul's common stock. George Putnam, publisher of
the Turnaround Letter and fund-manager of New Generation
Advisers, Inc., thinks Federal-Mogul stock "is cheap right now."
As of August 26, 2008, Federal-Mogul's common stock trades at
US$16.53 per share.
Billionaire Carl Icahn owns 74.8% of Federal-Mogul's common
stock. The stake is valued at approximately US$1,242,000,000.
UBS bought a 5.7% stake in the three months ended June 30, while
Solus Alternative Asset Management LP bought a 2.6% stake in the
second quarter. TIAA-CREF, the biggest U.S. pension-fund
manager, owned 2.1% as of June 30.
"Icahn's involvement draws interest," Mr. Putnam told Bloomberg.
Mr. Icahn purchased two-thirds of his holdings, 50,100,000
shares, for US$900,000,000, or US$17.96 each, on Feb. 25, 2008.
Bloomberg said those shares have lost 9.3% of their value,
costing Icahn US$83,700,000 on paper. The rest of his stake was
acquired in an exchange of debt while the company was in
bankruptcy.
Analysts, according to Bloomberg, said Federal-Mogul's stocks may
recover to US$26 per share at the end of the year. If that
happens, Mr. Icahn's shares will be valued to US$1,950,000,000.
About Federal-Mogul
Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's foremost
original equipment manufacturers of automotive, light commercial,
heavy-duty, agricultural, marine, rail, off-road and industrial
vehicles, as well as the worldwide aftermarket. Founded in
Detroit in 1899, the company is headquartered in Southfield,
Michigan, and employs 45,000 people in 35 countries. Aside from
the U.S., Federal-Mogul also has operations in other locations
which includes, among others, Mexico, Malaysia, Australia, China,
India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed US$10.15 billion in assets and US$8.86 billion in
liabilities.
Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at
Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein
Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer,
Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the
Official Committee of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan. On July 28, 2004, the
District Court approved the Disclosure Statement. The estimation
hearing began on June 14, 2005. The Debtors submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007. The Fourth Amended Plan was confirmed by the Bankruptcy
Court on Nov. 8, 2007, and affirmed by the District Court on
November 14. Federal-Mogul emerged from chapter 11 on Dec. 27,
2007.
(Federal-Mogul Bankruptcy News; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SEMGROUP LP: U.S. Trustee, Panel Balk at Blackstone Fee Structure
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors, joined by Titan
Energy, Inc., Loren Gas, Inc., Winstar Energy I, LP, and Texon
Energy, L.P., objects to the application of SemGroup, L.P. and its
debtor-affiliates to hire Blackstone Advisory Services L.P., as
their investment banker, arguing that Blackstone's proposed fee
structure cannot be approved because they encourage a specific
course of action for the benefit of one creditor group.
Specifically, the Committee believes that the Transaction Fee
improperly incentivizes Blackstone to pursue quick asset sales,
without fully exploring any restructuring options.
Representing the Committee, Bonnie Glantz Fatell, Esq., at Blank
Rome LLP, in Wilmington, Delaware, relates that Bank of America,
as administrative DIP agent, has required to reduce Blackstone's
Restructuring Fee to US$15,000,000, while holding its Transaction
Fee at 1.0% of proceeds. Thus, unless Blackstone believes that
selling the Debtors will yield less than US$1,500,000,000,
Blackstone will always profit from a sale, as opposed to a
restructuring, Ms. Fatell says.
The Committee insists that Blackstone's fee structure should be
modified, so that Blackstone's incentives and restructuring
options are balanced, and will result in the estates', not
BofA's, best interests. In addition to the improper incentives
created by the BofA-approved fee structure, the Committee argues
that restructuring fees as high as US$15,000,000 are reserved for
larger cases.
Blackstone's liquidation premium of a 1.0% of every dollar
realized for the Debtors' assets is atypical and contrary to
customary norms. The Debtors cannot justify a 1.0% flat fee on
the basis that the Debtors' assets are as a series of unrelated
stand-alone assets that could each attract their own buyer, Ms.
Fatell argues.
The Committee asks Judge Brendan L. Shannon of the U.S. Bankruptcy
Court for the District of Delaware to hold the Debtors to their
fiduciary duties owed to all creditors, not just the senior and
secured creditors, and consider the Blackstone Application as
presented in its objection.
Roberta A. DeAngelis, Acting United States Trustee for Region 3,
also opposes the employment of Blackstone, to the extent that
Blackstone sees extraordinary fees related to its involvement in
raising debt financing, raising equity financing, consummating a
restructuring and consummating a transaction.
The U.S. Trustee objects to the provisions that provide
Blackstone with a liability cap, because they fail to conform to
applicable Third Circuit law. The liability cap protects
Blackstone's exposure if it is not entitled to indemnity,
limiting its damages to the fees it actually received.
Moreover, the U.S. Trustee argues that the Court must prohibit the
limitation of liability provisions and the payment of
indemnification under certain circumstances. The U.S. Trustee
also objects to Blackstone's request for a US$100,000 replenishing
expense advance.
The U.S. Trustee states that under any standard, Blackstone's
requested fees are extraordinary and outside of the range of
reasonableness. She insists that Blackstone is inappropriately
seeking the approval overly broad indemnification provisions,
improper limitation of liability provisions, a waiver of its
obligation to file fee applications, and a waiver of its
obligation to provide support for reimbursement of expenses.
Accordingly, The U.S. Trustee asks the Court to deny the
Blackstone Application.
BofA Responds
BofA tells the Court that it has negotiated substantial economic
improvements to Blackstone's proposed fees that will benefit all
creditors. There was no other agenda than a fee reduction, since
the fees will be paid using collateral from the Debtors'
prepetition lenders, BofA says.
BofA concedes that the Debtors' Chapter 11 cases are dictated by
their determination of the best way to maximize their estates,
and not by BofA as their agent.
In addition, BofA tells Judge Shannon that the Committee had
actively participated in and supported the Debtors' request to use
the cash collateral and obtain DIP financing for the purpose of
enhancing the sale process.
The Committee counters that the BofA's business relationship with
the Debtors is "no ordinary borrower-lender relationship." This
relationship undercuts the Committee's assurance that decisions
on the Debtors' restructuring are being made by the Debtors'
officers, and not their advisors whose financial motivations are
engineered to force a quick break-up and sale, David W.
Carickhoff, Esq., at Blank Rome LLP, in Wilmington, Delaware,
proposed counsel for the Committee, argues. The Committee
believes that the Debtors' advisors must be free from all
potential adverse interests to the estates.
In support of BofA, the Debtors remind the Court that Section
328(a) of the Bankruptcy Code allows them to employ professionals
on reasonable terms and conditions. The Debtors insist that the
economic terms of the Blackstone Application is reasonable.
The Debtors maintain that the transactions under which Blackstone
will earn its fees will be subject to the Court's approval. Thus
the Application is inherently reasonable, because the Court will
be asked to make a ruling contrary to law.
Court Wants Changes to Proposed Order
According to The Journal Record, Tom Becker, the Debtors'
spokesman said Judge Shannon has already authorized the Debtors
to employ Blackstone as their investment banker. However, no
written order has yet been filed with the Court.
Mr. Becker, according to the report, said Blackstone and the
Debtors agreed to change one component of the fee structure.
Instead of Blackstone receiving 1% for every transaction,
Blackstone's fees will range from 1% for transactions not
reaching US$500,000,000 and 0.45% for transactions amounting from
at least US$2,500,000,000 to less than US$3,000,000,000, the
report
said.
The restructuring fee has also been reduced from US$20,000,000 to
US$15,000,000, and a monthly fee will be due to Blackstone for the
first six months, the report added. The Debtors initially
proposed an US$350,000 monthly fee.
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.
(SemGoup Bankruptcy News, Issue No. 9; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SEMGROUP LP: Oil Suppliers Demand Payment, Return of Deliveries
---------------------------------------------------------------
LCS Production Co., sells oil to SemCrude, L.P., pursuant to a
contract dated April 2, 2008. Under the Contract, SemCrude
agreed to remit the purchase price to LCS on the 20th of the
month following the delivery.
According to Michael J. Joyce, Esq., at Cross & Simon, LLC, in
Wilmington, Delaware, SemCrude has not paid LCS for oil sold in
June and July 2008, which totals US$5,152,184. Pursuant to
Section
9.343 of the Texas Business & Commerce Code, Mr. Joyce asserted
that LCS holds a security interest and lien in the Oil, which
extends to all proceeds resulting from any sale of the Oil. He
notes that LCS has not consented to any sale of the the Oil or
any cash receivable from that sale.
LCS asked the U.S. Bankruptcy Court for the District of Delaware
to adjudicate and determine that LCS is the owner of a first and
prior security interest and lien in the Oil. SemCrude should also
provide an accounting on the status of the Oil. Further, LCS
seeks a determination of the amount of its secured claim, and a
determination that all the proceeds from the sale of the Oil will
be used only to pay LCS, and should not be deemed a property of
the Debtors' estate.
Further, LCS sought the turnover of all property in the Debtors'
possession that represents the Oil, and asked the Court to issue a
preliminary and permanent injunction on the Debtors, precluding
them from using, dissipating or disbursing the Oil.
In a separate filing, Linn Energy Holdings sought the payment of
its administrative expense claim against SemMaterials, L.P. and
its debtor-affiliates, pursuant to Sections 503(b)(9) and 546(c).
Linn Energy said it is owed US$1,263,396 for goods it delivered to
the Debtors within 45 days before the bankruptcy filing, including
US$618,714 for goods it delivered within 20 days before the
bankruptcy filing.
Linn Energy has filed with the Court a notice of reclamation
demand.
New Dominion, L.L.C., and SemCrude, L.P., are parties to a
contract under which SemCrude purchases all of the Oklahoma Sweet
Crude Oil produced by New Dominion and its partners. Pursuant to
the Contract, New Dominion sold the Oil to SemCrude during June
and July 2008. New Dominion delivered 21,183 barrels of Oil for
US$2,617,420 in June, and 29,100 barrels in July. In addition,
New Dominion also delivered 7,500 barrels after the bankruptcy
filing.
According to William D. Sullivan, Esq., at Sullivan Hazeltine
Allinson LLC, in Wilmington, Delaware, New Dominion has not yet
received a final accounting as to the exact amounts delivered in
July, and is unable to place an exact value on the July
Deliveries. However, New Dominion believes that the July
Prepetition Delivery has an approximate net value of US$5,000,000,
and the July Postpetition Delivery has an approximate net value
of US$1,000,000.
Mr. Sullivan argued that any cash received by SemCrude as a
result of the sale of the Oil constitutes cash collateral,
pursuant to Section 363 of the Bankruptcy Code.
New Dominion demands that the SemCrude provide an accounting of
the sale of the Oil, and turn over any proceeds from the sale.
New Dominion asks the Court to enter a temporary restraining
order and a preliminary injunction, enjoining the SemCrude from
using the proceeds.
Additionally, Vitol, Inc., and SemCrude, L.P., entered into the
Crude Oil Storage Service Agreement dated June 1, 2008, under
which Vitol owes a US$930,000 debt for August 2008.
Vitol has filed an interpleader action against SemCrude, SemGroup
Crude Storage, L.L.C., and SemGroup Energy Partners, L.L.C.,
stating that it seeks to pay the August Payment, but is not able
to determine to which Debtor should it should make the payment.
According to Stephen M. Miller, Esq., at Morris James LP, in
Wilmington, Delaware, SemCrude and SGEP entered into a purchase
and sale agreement, executed on May 30, 2008. Pursuant to the
Sale Agreement, SemCrude and SGCS executed an assignment of
third-party storage agreement on May 30, 2008. Mr. Miller noted
that the parties may have claims related to the Storage
Agreement, which became effective two days later.
Mr. Miller asserted that Vitol was invoiced by SGEP for storage
fees for June, July, and August 2008. Vitol has made payments to
SGEP for services for June and July. Vitol is concerned that
that SGCS, and not SGEP, is SemCrude's actual assignee under the
Storage Agreement. He represents that Vitol is uncertain of any
claims SemCrude might assert as the original party to the Storage
Agreement. Vitol maintained that although it wishes to perform
under the Storage Agreement, it also seeks to avoid multiple
liabilities.
Vitol asked the Court to declare the June and July 2008
obligations as satisfied by virtue of the prior payments to SGEP.
Vitol also sought the Court's permission to pay the August Payment
into the Court's registry, and asked the Court to require the
SemGroup, SGCS, and SGEP to settle among themselves their rights
to the payments under the Storage Agreement.
Titan Energy, Inc., Winstar Energy, Inc., Loren Gas, Inc., Double
D Eael, LLC, Texon Energy, L.P., and Texas Energy Nos. 42-24 to
24-38, delivered crude oil to SemCrude, L.P., for US$2,904,144,
which remained outstanding as of the bankruptcy filing.
Kathleen M. Miller, Esq., at Smith Katzenstein & Furlow LLP, in
Wilmington, Delaware, told the Court that Titan holds a security
interest in the oil, and cash received by the Debtors from the
sale of the oil constitutes cash collateral under Section 363 of
the Bankruptcy Code.
Accordingly, Titan asked the Court to direct the Debtors provide
an accounting for the delivered oil and to pay all the amounts
due.
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). 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, represent the Debtors in
their restructuring efforts. 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.
(SemGoup Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SEMGROUP LP: HSBC, et al., Disclose Interest in Bankruptcy Case
---------------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy
Procedure, three professionals disclose representations with
respect to certain parties-in-interest in the Debtors' chapter 11
cases:
* HSBC Bank USA, National Association;
* Werb & Sullivan; and
* Russell R. Johnson III, Esq.
Representing HSBC, Douglas L. Furth, Esq., at Gelenbock Eiseman
Assor Bell & Peskoe LLP, in New York, stated that HSBC, as
successor indenture trustee for the Debtors' 8.75% senior notes
due 2015, does not own any legal or beneficial claim against the
Debtors, other than claims arising in connection with the Notes.
Mr. Furth further disclosed that the holders of the notes have
claims under the Indenture for unpaid principal and interest.
The Notes are issued and outstanding for a US$600,000,000
aggregate
principal amount.
Duane D. Werb, Esq., at Werb & Sullivan in Wilmington, Delaware,
stated that his firm represents seven secured creditors in the
Debtors' cases before the bankruptcy filing, which engaged in
prepetition transactions with SemCrude, L.P.:
Creditor Claim Amount
-------- ------------
LCS Production Company US$5,438,825
Star Production, Inc. 3,042,438
Southlake Exploration, Inc. 204,930
Spalding Energy, Inc. 133,386
Bell Energy 72,113
Tracker Mineral, LLC 63,231
B L Oil Company, Inc. 45,715
Holley Operating, L.L.C. 45,522
Mr. Werb noted that the firm expects the Debtors to list the
creditors in its Schedules of Assets and Liabilities. The
amounts may not agree with those listed by the Debtors, and the
Creditors reserve the right to file claims asserting the amounts
based on their business records.
Russell R. Johnson III, Esq., disclosed that he represents six
creditors that assert unsecured claims arising from prepetition
utility usage:
* American Electric Power,
* Carolina Power & Light Company,
* Southern California Edison Company,
* Southern California Gas Company,
* Virginia Electric and Power Company, and
* Westar Energy.
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). 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, represent the Debtors in
their restructuring efforts. 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.
(SemGoup Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
====================
P U E R T O R I C O
====================
MLMT COMMERCIAL: Fitch Affirms Ratings on Series 2007-C1 Loans
--------------------------------------------------------------
Fitch Ratings has affirmed MLMT Commercial Mortgage Trust, series
2007-C1, as:
-- US$50.1 million class A-1 at 'AAA';
-- US$298.9 million class A-2 at 'AAA';
-- US$200 million class A-2FL at 'AAA';
-- US$322.2 million class A-3 at 'AAA';
-- US$130 million class A-3FL at 'AAA';
-- US$90.3 million class A-SB at 'AAA';
-- US$442.2 million class A-4 at 'AAA';
-- US$1.3 billion class A-1A at 'AAA';
-- US$405 million class AM at 'AAA';
-- US$134.1 million class AJ at 'AAA';
-- US$200 million class AJ-FL at 'AAA';
-- Interest-only class X at 'AAA';
-- US$86.1 million class B at 'AA';
-- US$40.5 million class C at 'AA-';
-- US$45.6 million class D at 'A';
-- US$45.6 million class E at 'A-';
-- US$50.6 million class F at 'BBB+';
-- US$40.5 million class G at 'BBB';
-- US$40.5 million class H at 'BBB-';
-- US$15.2 million class J at 'BB+';
-- US$15.2 million class K at 'BB';
-- US$10.1 million class L at 'BB-';
-- US$10.1 million class M at 'B+';
-- US$10.1 million class N at 'B';
-- US$5.1 million class P at 'B-'.
Fitch does not rate the US$60.8 million class Q.
The affirmations are the result of stable performance and minimal
paydown since issuance. As of the July 2008 distribution date,
the pool's certificate balance has decreased 0.2% to US$4.04
billion from US$4.05 billion at issuance. There have been no
delinquencies since issuance. 159 loans (84%) are interest-only
or partial interest-only.
The Encanto - SLB Puerto Rico retail portfolio, located in Puerto
Rico (0.4%), maintains an investment-grade shadow rating. The
loan is secured by an eighteen property portfolio totaling 66,101
square feet, and remains 100% occupied by Encanto Restaurants,
Inc. The servicer reported debt service as of year-end (YE) 2007
is 1.77 times (x) as compared to 1.89x at issuance.
The largest loan (9.5%) is collateralized by 78 rental housing
communities located in 66 cities across eight states. Occupancy
as of March 2008 was 94.8% compared to 94.4% at issuance. The
servicer reported YE 2007 DSCR was 1.55x compared to 1.52x at
issuance.
The second largest loan (8.2%) is secured by a 79 rental housing
communities located in 61 cities across eight states. Occupancy
as of March 2008 was 95.2% compared to 93.4% at issuance. The
servicer reported YE 2007 DSCR was 1.57x compared to 1.52x at
issuance.
PORTOLA PACKAGING: Files for Bankruptcy, Gets US$79MM DIP Facility
------------------------------------------------------------------
Portola Packaging, Inc. filed a voluntary Chapter 11 petition to
reorganize before the United States Bankruptcy Court for the
District of Delaware.
In connection with the filing, the company confirmed that all of
its secured lenders and holders of approximately 90% in aggregate
principal amount of its 8-1/4% Senior Notes due 2012 agreed to a
voluntary and consensual restructuring of the company pursuant to
the restructuring support agreement dated July 24, 2008. Pursuant
to the proposed plan of reorganization, holders of the Senior
Notes will receive 100% of the common stock of reorganized Portola
in exchange for their claims.
Wayzata Investment Partners LLC is expected to be the company's
controlling shareholder upon its emergence from bankruptcy. The
company's plan of reorganization will reduce its long term debt
obligations by US$180 million. The company anticipates completing
its pre-packaged reorganization and emerging from Chapter 11 in
mid-October, 2008.
Under the restructuring plan, all obligations owed to trade
creditors, suppliers, customers and employees in the ordinary
course of business will be unimpaired and unaffected by the
restructuring.
The company reached agreement with its existing secured lenders
to provide the Company with debtor-in-possession financing of
US$79 million to pay off the outstanding indebtedness under the
company's existing secured facilities and to finance its ongoing
operations.
The company said that its president and chief executive officer,
Brian Bauerbach, and its chief financial officer, John LaBahn, and
its general counsel, Kim Wehrenberg, have been appointed as the
sole directors of the company and will oversee the restructuring.
"We are pleased to have achieved such strong support for a
consensual restructuring that dramatically improves our balance
sheet, reduces our annual cash interest obligations by
approximately US$15 million, and enables continued reinvestment in
our products and future growth," Mr. Bauerbach stated. We are
thrilled to have the continued support of Wayzata and look forward
to its long term commitment to the business."
In conjunction withe Chapter 11 filing, the company is seeking
approval for a variety of first day motions that will allow it to
continue to manage operations in the ordinary course. The motions
include requests to make wage and salary payments and other
benefits to employees and to pay critical vendors, suppliers,
trade creditors and certain other pre-petition trade claims.
A full-text copy of the company's restructuring term sheet date
July 24, 2008, is available for free at:
http://ResearchArchives.com/t/s?3168
A full-text copy of the company and lenders' restructuring support
agreement is available for free at:
http://ResearchArchives.com/t/s?3169
Headquartered in Batavia, Illinois, Portola Packaging Inc. --
http://www.portpack.com/-- designs, manufactures and markets
tamper-evident plastic closures used in dairy, fruit juice,
bottled water, sports drinks, institutional food and other non-
carbonated beverage markets. The company also produces a wide
variety of plastic bottles for use in dairy, water and juice
markets, including various high density bottles, as well as five-
gallon polycarbonate water bottles. In addition, the company
designs, manufactures and markets capping equipment for use in
high speed bottling, filling and packaging production lines.
Portola is also engaged in the manufacture and sale of tooling and
molds used for blow molding.
* * *
As reported in the Troubled Company Reporter on July 31, 2008,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Portola Packaging Inc. to 'D' from 'CCC-'. In addition,
S&P lowered the senior unsecured ratings to 'D' from 'C'. The
downgrades follow Portola's announcement that it is restructuring
its capital structure through a prepackaged Chapter 11 bankruptcy
filing. Before the default, the rating on Portola's US$180
million 8.25% senior unsecured notes was two notches below the
corporate credit rating and the recovery rating was '6',
indicating the expectation for negligible (0% to 10%) recovery in
the event of a payment default.
PORTOLA PACKAGING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Portola Packaging, Inc.
aka Cap Snap
aka NEPCO
aka Consumer Cap
aka Nepco
aka Allied Tool
951 Douglas Road
Bativia, IL 60510
Bankruptcy Case No.: 08-12001
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Great Lakes Sales Associates, LLC 08-12002
Northern Engineering and Plastics Corporation
(Delaware) 08-12003
Northern Engineering Plastics Corporation
(Puerto Rico) 08-12004
Northern Engineering Plastics Corporation -
Puerto Rico (Pennsylvania) 08-12005
Portola Allied Tool, Inc. 08-12006
Portola Tech International, Inc. 08-12007
Type of Business: The Debtors designs, manufactures, and markets a
full line of tamper-evident plastic closures,
bottles, and equipment for the beverage and food
industries, as well as plastic closures and
containers for the cosmetics industry.
See http://www.portpack.com/
Chapter 11 Petition Date: August 27, 2008
Court: District of Delaware (Delaware)
Judge: Christopher S. Sontchi
Debtors' Counsels: Young, Conaway, Stargatt & Taylor
Edmon L. Morton, Esq.
Robert S. Brady, Esq.
Sean T. Greecher, Esq.
The Brandywine Building
1000 West Street, 17th Floor
P.O. Box 391
Wilmington, DE 19899
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: bankfilings@ycst.com
Estimated Assets: US$50 million to US$100 million
Estimated Debts: US$100 million to US$500 million
Debtors' consolidated list of their 20 Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
U.S. Bank National Association Notes US$180,000,000
60 Livingston Avenue (Aggregate
St. Paul, MN 55107-2292 principal
amount)
SACMI IMOLA Trade Creditor US$1,056,895
Via Selice Provencial, 17/A
40026 Imola Bo Italy
Casella Postale 113 Italy
KDV (1006) Trade Creditor US$307,142
431 W. Newhall Avenue
Waukesha, WI 53186
Packaging Corp. of America Trade Creditor US$164,097
Hoffer Plastics Corp. Trade Creditor US$160,467
Foreco SRL Trade Creditor US$135,766
Unipac Corp. Trade Creditor US$113,831
Rite Systems Inc. Trade Creditor US$108,783
City of Batavia Utility US$96,935
Much Shelist Trade Creditor US$96,713
Riverdale Color Trade Creditor US$90,828
Bamberger Polymers, Inc. Trade Creditor US$75,041
D&D Custom Machine Trade Creditor US$71,874
Whitaker Transportation Co. Inc. Trade Creditor US$61,473
GE Capital Freight Trade Creditor US$57,014
Rite Systems (Chino) Trade Creditor US$55,896
RBC Bearings Trade Creditor US$53,525
Federal Mfg. Co. Trade Creditor US$50,809
Rogers Foam Corp. Trade Creditor US$50,724
United Health Care Insurance Insurance US$44,750
W HOLDING: To Restate Financials Due to Accounting Errors
---------------------------------------------------------
W Holding Company Inc., the financial holding company of
Westernbank Puerto Rico, disclosed in its regulatory filing that
it will restate the financial statements of the company for the
year ended December 31, 2006 and for the quarters ended Sept. 30,
2006 and March 31, 2007, for the correction of an error to
recognize the impact of adjustments resulting from the Inyx loan
impairment over such periods.
The company also determined at that time that:
(i) the previously filed annual consolidated financial
statements of the Company for the year ended December 31,
2006 included in the company’s annual report on Form 10-K
for the year ended December 31, 2006;
(ii) the related reports of its independent registered public
accountants; and
(iii) the interim condensed consolidated financial statements
for the quarters ended September 30, 2006 and March 31,
2007 included in the company’s quarterly reports on Forms
10-Q, should no longer be relied upon.
In connection with its continuing analysis of matters related to
the Inyx loan impairment and the restatements, on August 22, 2008,
the company concluded, and the Audit Committee approved, that:
(i) the previously filed annual consolidated financial
statements of the Company for the year ended December 31,
2005;
(ii) the related reports of its independent registered public
accountants; and
(iii) the interim condensed consolidated financial statements
for the quarters ended March 31, 2006 and June 30, 2006
included in the company’s quarterly reports on Forms 10-
Q, should no longer be relied upon.
The company’s management has discussed these matters with Deloitte
& Touche LLP, the company’s independent registered public
accountant. The company continues to work expeditiously toward
the completion of the restatement process and the issuance of its
consolidated financial statements for the year ended December 31,
2007. At this time the company is unable to estimate when the
process will be completed.
W Holding Company, Inc. (NYSE: WHI) -- http://www.wholding.com.
-- is the financial holding company for Westernbank Puerto Rico,
the second-largest commercial bank in Puerto Rico, based on
total assets, operating through 56 full-fledged branches,
including 20 Expresso of Westernbank branches), including 33 in
the southwestern region of Puerto Rico, 7 in the northeastern
region, 14 in the San Juan Metropolitan area and 2 in the
eastern region of Puerto Rico, and a fully functional banking
site on the Internet. W Holding also owns Westernbank Insurance
Corp., a general insurance agent placing property, casualty,
life and disability insurance, whose results of operations and
financial condition are reported on a consolidated basis.
Non-Compliance Notification
As reported in the Troubled Company Reporter-Latin America on
July 28, 2008, the company has been notified by the New York
Stock Exchange, Inc. (NYSE) that the company is not in
compliance with NYSE Listed company Manual Section 802.01C
because the average closing price of the company's common stock
has been less than US$1 for 30 consecutive trading days.
Accordingly, the company is subject to the procedures specified
in Section 802.01C, which provides, among other things, that the
company must bring its share price and average share price back
above US$1 within six months following receipt of notification
of non-compliance. If at the expiration of the six-month cure
period, the company's share price and average share price over
the preceding 30 trading days do not exceed US$1, the NYSE will
commence suspension and delisting proceedings.
===============================
T R I N I D A D & T O B A G O
===============================
BURGER KING: Launches Trinidad Unit
-----------------------------------
Burger King Corp. has launched a unit in Maraval, Trinidad and
Tobago, The Trinidad and Tobago Express reports.
According to The Express, the newly appointed Burger King General
Manager said that the restaurant is performing beyond expectation.
Burger King will increase the number of Burger King restaurants in
Trinidad and Tobago within the next two years.
Headquartered in Miami, Florida, The Burger King --
http://www.burgerking.com/-- operates more than 11,000
restaurants in more than 60 countries and territories worldwide.
Approximately 90% of Burger King restaurants are owned and
operated by independent franchisees, many of them family owned
operations that have been in business for decades. Burger King
Holdings Inc., the parent company, is private and independently
owned by an equity sponsor group comprised of Texas Pacific
Group, Bain Capital and Goldman Sachs Capital Partners.
Burger King Corp. operates restaurants in the Latin American,
Caribbean and Mexican Region. The company's first international
restaurant opened in 1963 in Puerto Rico. Since 1994, Burger
King has opened more than 300 restaurants in the Latin American
region, producing some of the strongest comparable store sales
growth for the brand around the world. Burger King(R)
restaurants in Latin America serve approximately 1,600 customers
per day each, making them some of the highest volume restaurants
in the system.
* * *
As reported in the Troubled Company Reporter on Oct. 17, 2006,
in connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency revised
its Corporate Family Rating for Burger King Corp. to Ba3 from
Ba2.
Additionally, Moody's held its Ba2 ratings on the Company's
US$150 million Senior Secured Revolver Due 2011 and
US$250 million Senior Secured Term Loan.
HINDU CREDIT: Court Cancels Hearing on Chief's Injunction Protest
-----------------------------------------------------------------
Francis Joseph at The Trinidad And Tobago Guardian reports that
the Court of Appeals has canceled a hearing on Hindu Credit Union
Co-Operative Society Limited President Harry Harnarine's request
for the cancellation of an injunction against the company.
The Guardian relates that Justice Nolan Bereaux granted the
injunction against Hindu Credit on July 23, 2008, putting the firm
under the control of the Commissioner of Cooperatives, Charles
Mitchell, and the receiver, Ramdath Dave Rampersad. The
injunction will expire on Sept. 18, 2008, The Guardian notes. Mr.
Harnarine had filed an application asking the Court of Appeal to
hear his request to discharge the injunction during the court
vacation, according to The Guardian.
The same report says a new date will be set for the hearing, when
the new law term starts on Sept. 16, 2008.
Headquartered in Borough, Chaguanas, Hindu Credit Union Co-
Operative Society Limited -- www.ourhcu.com -- reportedly has
between US$115.2 million and US$131.6 million in assets and a
total of US$32.9 million in liabilities. It has a membership
totaling more than 200,000.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 28, 2008, the High Court of Trinidad and Tobago granted the
government full control of Hindu Credit as the company faces
financial difficulties, leaving depositors in limbo despite
requests from lawyers. In June 2008, chartered accountants
Ernst and Young inspected Hindu Credit's books, accounts, and
records after a public outcry and calls for an internal audit.
Charles Mitchell, the Commissioner for Co-Operative Development,
represents Hindu Credit's depositors.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Ratifies Commitment Despite Workers Clash
-----------------------------------------------------------------
Operating and administrative activities performed by Petroleos de
Venezuela S.A. Western Exploration and Production (PDVSA
Exploracion y Produccion Occidente) in Maracaibo lake and inland
are taking place normally, despite attempts from a group of
approximately 50 contracting workers who are trying to destabilize
work activities in the western part of the country with support
from labor union members acting on their own account.
PDVSA Exploration and Production’s general manager, Jose Luis
Parada, gave statements in this regard and described as coup
d’etat perpetrators those seeking to create a climate of conflict
in certain areas of the industry where normality and good
operating capacity currently prevail following the disastrous oil
sabotage a few years ago.
Mr. Parada indicated the attitude of these labor union members is
based on interests that do not further national oil sovereignty
and oppose the presidential mandate of placing the Motherland’s
assets at the service of the people.
“These labor union members are coup d’etat perpetrators who follow
the capitalist scheme that for years has stepped on the poor. The
goal is to manipulate workers by deceiving them and telling them
they will lose the economic and social benefits provided to them
by PDVSA,” asserted Mr. Parada.
Workers have to keep up with their solid commitment to defend
PDVSA from those who attempt to counter all the progress made
after PDVSA was rescued, and they have to continue sowing oil
sovereignty among the Venezuelan people.
About Petroleos de Venezuela
Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 28, 2008, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Petroleos de
Venezuela S.A. S&P said the outlook is stable.
In March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.
On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.
PETROLEOS DE VENEZUELA: Unit Expands Operating Coverage in SouthAm
------------------------------------------------------------------
The new Petroleos de Venezuela S.A. affiliated company, PDVSA
Servicios, was created eight months ago and it has already
produced incredible results that include three drilling rigs in
the Republics of Ecuador and Bolivia, joint seismic work in the
Boyaca Block of the Orinoco Oil Belt with Belorussia, the
nationalization of 41 drilling rigs and the absorption of 1,569
workers to PDVSA, among others.
The company was incorporated on December 27, 2007, by parent
company PDVSA with the purpose of becoming a domestic and
international option to meet the needs for services specialized in
construction and maintenance of oil wells, operation of drilling
rigs, electric records, seismic, drilling and cementing fluids,
and formation fracturing.
Domestically, PDVSA Servicios has guaranteed operating continuity
by providing well services in the four regions covered by the
Exploration and Production business, i.e. the Easter, Western,
Central Southern and Offshore regions (Oriente, Occidente, Centro
Sur and Costa Afuera).
It is important to point out that PDVSA Servicios and the company
Belorusneft are working together to carry out seismic work in the
Boyaca Block of the Orinoco Oil Belt to certify hydrocarbon
reserves.
International Expansion
With regard to the international arena, Venezuela has expanded its
oil activities by operating two drilling rigs, CPV 16 and CPV 23,
currently drilling in Agrio Lake in Ecuador and utilizing
Venezuelan human resources working jointly with the Ecuadorian
energy company.
Bolivia is another South American nation where PDVSA Servicios has
a presence through drilling rig PDV 8 which the affiliate operates
jointly with Yacimiento Petrolíferos Fiscales Bolivianos (YPFB) to
drill advanced depth wells, thereby consolidating a strong
supportive relationship between the governments of both nations to
promote a grand national company. Venezuelan equipment is also
being operated to carry out seismic work in the Pinar del Río
project in Cuba, which aims at exploiting to the maximum the
hydrocarbon potential of this Caribbean island.
Furthermore, PDVSA Servicios signed a memorandum of understanding
with the Republic of Belarus which has allowed PDVSA to receive
five seismic vibrating trucks. Another five more seismic
vibrating trucks are soon expected to be delivered. The agreement
also includes Venezuelan workers receiving training in assembly
and operation of said units. For this reason, the first 18 of 30
Venezuelan workers with associate and high school degrees will go
to Belarus on August 30th and will stay there for five months.
13 drilling rigs from China are expected to arrive by the end of
2008 to be incorporated into the group. Also, 35 more drilling
rigs have been requested to the affiliate PDVSA Industrial, 8 of
which will be assembled in Venezuela and given to PDVSA Servicios
in 2009, thereby increasing its response capabilities.
Finally, several joint venture companies in the areas of
cementing, electric records, formation fracturing, coiled tubing,
hydraulic fracturing, directional drilling and offshore seismic
are currently being created, in the short term, to strengthen
operating sovereignty and technological independence as central
themes of the energy policy of the Bolivarian Government of
Venezuela.
About Petroleos de Venezuela
Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 28, 2008, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Petroleos de
Venezuela S.A. S&P said the outlook is stable.
In March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.
On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.
PETROLEOS DE VENEZUELA: To Control Fuel Distribution in Nation
--------------------------------------------------------------
The Associated Press reports that Petroleos de Venezuela SA will
control all fuel distribution in Venezuela.
Wholesale gasoline sales by private firms will be nationalized
once a bill gets the congress' final approval, the AP says, citing
Venezuelan President Hugo Chavez. According to the AP, the bill
received initial approval in the National Assembly on Wednesday.
The same report states that fuel distributors that include
subsidiaries of British Petroleum, Exxon Mobil Corp., and Chevron
Corp. were asking the government not to seize their businesses.
Fuel distributors would be given 60 days to negotiate the sale of
their businesses to the government or the assets would be
confiscated.
About Petroleos de Venezuela
Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 28, 2008, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Petroleos de
Venezuela S.A. S&P said the outlook is stable.
In March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.
On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.
* BOND PRICING: For the Week August 25 - August 29 2008
-------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Alto Palermo SA 7.875 5/11/17 USD 64.87
Argnt-Bocon PR11 2.000 12/3/10 ARS 52.16
Argnt-Bocon PR13 2.000 3/15/24 ARS 50.74
Arg Boden 2.000 9/30/08 ARS 15.16
Arg Boden 7.000 10/3/15 USD 65.18
Autopistas Del Sol 11.500 5/23/17 USD 50.25
Bonar Arg $ V 10.500 6/12/12 ARS 68.36
Bonar VII 7.000 9/12/13 USD 74.65
Bonar X 7.000 4/17/17 USD 70.88
Inversiones y Rep 8.500 2/2/17 USD 67.52
Argent-EURDIS 7.820 12/31/33 EUR 58.62
Argent-$DIS 8.280 12/31/33 USD 74.12
Argent-Par 0.630 12/31/38 ARS 32.95
Banco Hipot SA 9.750 4/27/16 USD 68.17
Banco Macro SA 9.750 12/18/36 USD 60.95
Buenos-EURDIS 8.500 4/15/17 EUR 61.77
Buenos-$DIS 9.250 4/15/17 USD 67.17
Buenos Aire Prov 9.375 9/14/18 USD 62.50
Buenos Aire Prov 9.625 4/18/28 USD 59.17
Mendoza Province 5.500 9/04/18 USD 65.00
BERMUDA
-------
XL Capital Ltd 6.500 12/31/49 USD 51.00
BRAZIL
------
CESP 9.750 1/15/15 BRL 66.09
Gol Finance 7.500 4/03/17 USD 65.89
Gol Finance 7.500 4/03/17 USD 64.37
Gol Finance 8.750 4/29/49 USD 65.00
CAYMAN ISLANDS
--------------
Barion Funding 0.100 12/20/56 EUR 7.08
Barion Funding 0.250 12/20/56 USD 6.28
Barion Funding 0.250 12/20/56 USD 6.28
Barion Funding 0.250 12/20/56 USD 6.28
Barion Funding 0.250 12/20/56 USD 6.28
Barion Funding 0.250 12/20/56 USD 6.28
Barion Funding 0.250 12/20/56 USD 6.28
Barion Funding 0.630 12/20/56 GBP 16.08
Barion Funding 1.440 12/20/56 GBP 28.58
Mazarin Fdg Ltd 0.100 9/20/68 EUR 4.35
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.67
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.67
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.67
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.67
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.67
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.67
Mazarin Fdg Ltd 0.510 9/20/68 EUR 11.02
Mazarin Fdg Ltd 0.630 9/20/68 GBP 13.32
Mazarin Fdg Ltd 1.440 9/20/68 GBP 26.25
Shimao Property 8.000 12/1/16 USD 60.25
Shinsei Fin Caym 6.418 1/29/49 USD 62.24
Shinsei Finance 7.160 7/29/49 USD 67.26
JAMAICA
-------
Jamaica Govt LRS 7.500 10/6/12 JMD 72.50
Jamaica Govt LRS 12.750 6/29/22 JMD 70.36
Jamaica Govt LRS 12.750 6/29/22 JMD 70.37
Jamaica Govt LRS 12.850 5/31/22 JMD 70.92
Jamaica Govt LRS 13.375 12/15/21 JMD 73.95
Jamaica Govt 13.375 4/27/32 JMD 69.07
PUERTO RICO
-----------
Puerto Rico Cons 6.200 5/1/17 USD 73.00
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 USD 65.22
Petroleos de Ven 5.375 4/12/27 USD 55.50
Petroleos de Ven 5.500 4/12/37 USD 53.37
Venezuela 7.000 3/31/38 USD 65.74
***********
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 V. Profetana, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *