/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/080923.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, September 23, 2008, Vol. 9, No. 189 Headlines A R G E N T I N A ACT SA: Proofs of Claim Verification Deadline Is December 3 BIONOR SRL: Proofs of Claim Verification Deadline Is October 24 DIDONAZ SA: Individual Reports Filing Deadline Is on February 9 FINANCIERA ZERFIMA: Files for Reorganization in Buenos Aires Court GRAFICA EN ACCION: Proofs of Claim Verification Deadline Is Nov. 5 MENSAJERO VELOZ: Proofs of Claim Verification Deadline Is Oct. 13 MEWAR Y ASOCIADOS: Individual Reports Filing Deadline Is on Feb. 9 OBRAS SRL: Proofs of Claim Verification Deadline Is October 20 RESORSAL SRL: Proofs of Claim Verification Deadline Is November 5 RUTA SIETE: Proofs of Claim Verification Deadline Is November 12 TERAPIA INTEGRAL: Proofs of Claim Verification Deadline Is Feb. 9 B E R M U D A BALLANTYNE RE: S&P Junks Rating on Class A-1, B-1 and B-2 Notes SEA CONTAINERS: Files Amended Plan and Disclosure Statement SEA CONTAINERS: SCL Panel, et al., Balk at Disclosure Statement B R A Z I L BANCO NACIONAL: Prepares to Secure Investments, Says Mr. Coutinho BANCO NACIONAL: Reports BRL80.8 Billion Disbursements as of August BANCO PROSPER: Moody's Lowers Ba3 Currency Deposit Ratings to B1 DELPHI CORP: Reaches Settlement & Restructuring Pacts With GM GENERAL MOTORS: To Use Remaining US$3.5 Bil. in Credit Facility GENERAL MOTORS: Exchanges 28.3 Mil. Shares for Series D Debentures GENERAL MOTORS: Enters Into Amended Settlement With Delphi C A Y M A N I S L A N D S ARTISAN CAPITAL: Proof of Claim Filing Deadline Is Sept. 30 CORK INC: Deadline for Proof of Claim Filing Is Sept. 30 CORK INC: Will Hold Final Shareholders Meeting on Sept. 30 GATKO GLOBAL: Holds Final Shareholders Meeting on Sept. 30 GATKO GLOBAL MASTER: Final Shareholders Meeting Is on Sept. 30 HANOVER INSURANCE: Sets Final Shareholders Meeting on Sept. 30 SCHOLARLY PUBLICATIONS: Final Shareholders Meeting Is Sept. 30 SHOOTER BEAR: Filing for Proof of Claim Deadline Is Sept. 30 SHOOTER BEAR: To Hold Final Shareholders Meeting on Sept. 30 G R E N A D A ST. GEORGE UNIVERSITY: Workers' Strike Affects Operations J A M A I C A CABLE & WIRELESS: Considers Rebranding Caribbean Biz to LIME C O L O M B I A ECOPETROL SA: Initiates American Depositary Shares Listing on NYSE M E X I C O GAP INC: Reaches Franchise Agreement With Distribuidora Liverpool LEHMAN BROTHERS: Mexico's Banorte May Incur US$20M Losses on Notes PORTOLA PACKAGING: Gets Initial OK to Use GECC's US$75MM Facility N I C A R A G U A CENTRAL SUN: Provides Update on Nicaraguan Mine Projects T R I N I D A D & T O B A G O HINDU CREDIT: Comr. Mitchell Gets OK to Read Auditor's Report V E N E Z U E L A BANCO DE VENEZUELA: Moody's Reviews B3 Currency Rating for Upgrade MERCANTIL CA: Moody's Puts B3 Rating on Review for Likely Upgrade PETROLEOS DE VENEZUELA: Inks 8 Natural Gas Project Agreements PETROLEOS DE VENEZUELA: Moody's Holds B1 Currency Issuer Ratings * VENEZUELA: May Lose US$225 Mil. Investments on Lehman Notes * VENEZUELA: Moody's Reviews Low-B Currency Ratings for Upgrade * Large Companies with Insolvent Balance Sheets - - - - - ================= A R G E N T I N A ================= ACT SA: Proofs of Claim Verification Deadline Is December 3 ----------------------------------------------------------- Oscar Vertzman, the court-appointed trustee for Act SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until December 3, 2008. Mr. Vertzman will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 42, 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 Act SA and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Act SA's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Vertzman is also in charge of administering Act SA's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Act SA Cabello 3149 Buenos Aires, Argentina The trustee can be reached at: Oscar Vertzman Bartolome Mitre 3120 Buenos Aires, Argentina BIONOR SRL: Proofs of Claim Verification Deadline Is October 24 --------------------------------------------------------------- The court-appointed trustee for Bionor S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until October 24, 2008. The trustee will present the validated claims in court as individual reports on December 5, 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 Bionor S.R.L. and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Bionor S.R.L.'s accounting and banking records will be submitted in court on February 19, 2009. The trustee is also in charge of administering Bionor S.R.L.'s assets under court supervision and will take part in their disposal to the extent established by law. DIDONAZ SA: Individual Reports Filing Deadline Is on February 9 --------------------------------------------------------------- Jessica Minc, the court-appointed trustee for Didonaz SA's reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 1, on February 9, 2009. Ms. Minc is verifying creditors' proofs of claim until Nov. 20, 2008. She will also submit to court a general report containing an audit of Didonaz SA's accounting and banking records on March 23, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on September 11, 2009. The debtor can be reached at: Didonaz SA Constitucion 2834 Buenos Aires, Argentina The trustee can be reached at: Jessica Minc Avda. Santa Fe 2534 Buenos Aires, Argentina FINANCIERA ZERFIMA: Files for Reorganization in Buenos Aires Court ------------------------------------------------------------------ Financiera Zerfima SA has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Financiera Zerfima to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 6 in Buenos Aires. Clerk No. 12 assists the court in this case. The debtor can be reached at: Financiera Zerfima SA Medrano 1670 Buenos Aires, Argentina GRAFICA EN ACCION: Proofs of Claim Verification Deadline Is Nov. 5 ------------------------------------------------------------------ Juan Giannazzo, the court-appointed trustee for Grafica en Accion SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until November 5, 2008. Mr. Giannazzo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 38, 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 Grafica en Accion and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Grafica en Accion's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Giannazzo is also in charge of administering Grafica en Accion's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Grafica en Accion SRL Paraguay 1275 Buenos Aires, Argentina The trustee can be reached at: Juan Giannazzo Avenida de Mayo 1370 Buenos Aires, Argentina MENSAJERO VELOZ: Proofs of Claim Verification Deadline Is Oct. 13 ----------------------------------------------------------------- The court-appointed trustee for Mensajero Veloz SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until October 13, 2008. The trustee will present the validated claims in court as individual reports on December 12, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Mensajero Veloz and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Mensajero Veloz's accounting and banking records will be submitted in court on February 19, 2009. The trustee is also in charge of administering Mensajero Veloz's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Mensajero Veloz SRL Parana 123 Buenos Aires, Argentina MEWAR Y ASOCIADOS: Individual Reports Filing Deadline Is on Feb. 9 ------------------------------------------------------------------ Luis Cortez, the court-appointed trustee for Mewar y Asociados SA's reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 1, on February 9, 2009. Mr. Cortez is verifying creditors' proofs of claim until Nov. 25, 2008. He will also submit to court a general report containing an audit of Mewar y Asociados' accounting and banking records on March 24, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on August 21, 2009. The debtor can be reached at: Mewar y Asociados SA Montenegro 1649 Buenos Aires, Argentina The trustee can be reached at: Luis Cortez Avenida Cordoba 1646 Buenos Aires, Argentina OBRAS SRL: Proofs of Claim Verification Deadline Is October 20 -------------------------------------------------------------- The court-appointed trustee for Obras 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 10, 2008. The National Commercial Court of First Instance in Cordoba, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Obras S.R.L. and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Obras S.R.L.'s accounting and banking records will be submitted in court on February 28, 2009. The trustee is also in charge of administering Obras S.R.L.'s assets under court supervision and will take part in their disposal to the extent established by law. RESORSAL SRL: Proofs of Claim Verification Deadline Is November 5 ----------------------------------------------------------------- Isabel Ramirez, the court-appointed trustee for Resorsal SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until November 5, 2008. Ms. Ramirez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 3, 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 Resorsal SRL and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Resorsal SRL's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Ramirez is also in charge of administering Resorsal SRL's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Resorsal SRL Uruguay 16 Buenos Aires, Argentina The trustee can be reached at: Isabel Ramirez Juan Domingo Peron 2082 Buenos Aires, Argentina RUTA SIETE: Proofs of Claim Verification Deadline Is November 12 ---------------------------------------------------------------- Hector Martinez, the court-appointed trustee for Ruta Siete SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until November 12, 2008. Mr. Martinez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 34, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Ruta Siete and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Ruta Siete's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Martinez is also in charge of administering Ruta Siete's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ruta Siete SA Jose Enrique Rodo 3947 Buenos Aires, Argentina The trustee can be reached at: Hector Martinez Independencia 2251 Buenos Aires, Argentina TERAPIA INTEGRAL: Proofs of Claim Verification Deadline Is Feb. 9 ----------------------------------------------------------------- The court-appointed trustee for Terapia Integral S.A.C.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until February 9, 2009. The trustee will present the validated claims in court as individual reports on March 23, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Terapia Integral and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Terapia Integral's accounting and banking records will be submitted in court on May 11, 2009. The trustee is also in charge of administering Terapia Integral's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Terapia Integral S.A.C. Avenida Santa Fe 136 Buenos Aires ============= B E R M U D A ============= BALLANTYNE RE: S&P Junks Rating on Class A-1, B-1 and B-2 Notes --------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its senior debt rating on Ballantyne Re plc's Class A-1 notes to 'CCC-' from 'B-'. The rating on the notes remains on CreditWatch, where it was placed with negative implications on Nov. 21, 2007. At the same time, S&P lowered its subordinated debt rating on the Class B-1 and B-2 notes to 'CC' from 'CCC-'. S&P removed the rating from CreditWatch, where it had been placed with negative implications on Sept. 14, 2007. "We are taking this action in response to the continuing mark-to- market losses experienced on the assets in the underlying collateral accounts," said S&P's credit analyst Gary Martucci. "Since our most recent downgrade in August, mark-to-market losses have increased, putting additional strain on the structure." S&P will continue to monitor the developments related to this latest disclosure and will take ratings actions as warranted. Ballantyne Re plc and Orkney Re II plc are public limited companies established in Ireland as special purpose vehicles associated with Scottish Re (US), Inc., a subsidiary of Scottish Re Group Limited. Scottish Re Group Ltd. is a Cayman Islands company with principal executive offices located in Bermuda. SEA CONTAINERS: Files Amended Plan and Disclosure Statement ----------------------------------------------------------- Sea Containers Caribbean Inc., Sea Containers Ltd., and Sea Containers Services Ltd. delivered to the U.S. Bankruptcy Court for the District of Delaware a first amended joint plan of reorganization and accompanying disclosure statement on Sept. 16, 2008. The Amended Plan offers more details about the company's intended activity once it emerges from bankruptcy protection. The Court will convene a hearing on September 19, 2008, to consider the adequacy of the information contained in the Debtors' Disclosure Statement. The hearing to consider confirmation of the Plan is scheduled on November 17, 2008. Parties have until November 10 to file objections to the Plan. New Equity The Amended Plan provides that equity of Newco, the entity to which SCL will transfer its remaining container interests, will vest in the Plan Administrator and, subject to certain holdbacks and trusts set aside for certain claims, beneficial ownership interest in Newco Equitv will be distributed on a pro rata basis to holders of allowed claims. The value of Newco Equity in large part will derive, in large part, from (i) the value of SCL's interests in GE SeaCo SRL, the joint-venture entity between SCL and General Electric Capital Corporation, and (ii) the value of SCL's interests in Sea Containers SPC Ltd., the special purpose subsidiary established by SCL that owns a substantial portion of SCL's shipping containers and related lease revenues. To ensure that Non-Debtor Subsidiary directors do not seek to enforce intercompany claims, the Amended Plan contemplates the establishment of the Non-Debtor Subsidiary Reserve, which will consist of cash and Newco Equity that will be available to fund certain payments to creditors of the Non-Debtor Subsidiaries that are currently known, or that the Debtors will know of by Nov. 30, 2008. The payments will be paid according to an entity priority model dividend rate so as to approximate what those creditors would have received in a simultaneous group-wide liquidation. The Non-Debtor Subsidiary Reserve is estimated to have US$6,000,000 of cash and US$3,000,000 in aggregate value of Newco Equity shares. Equalization Escrow Account The Amended Plan also contemplates the establishment of an equalization escrow account, which will hold the equalization claim reserve, to be administered by the equalization escrow agent. The Equalization Claim Reserve will be used to satisfy any valid Equalization Claim. In addition, a separate reserve will be established to satisfy equalization-related employee claims, if any. The Equalization-Related Employee Claim Reserve is currently estimated to consist of US$4,500,000 in cash and shares of Newco Equity with an aggregate value of US$13,100,000. The Amended Plan provides that any residual value in the Equalization Claim Reserve after satisfaction of the allowed Equalization Claim will be transferred to the Equalization- Related Employee Claim Reserve subject to a US$23,800,000 maximum limit of Newco Equity that can be transferred to the Equalization-Related Employee Claim Reserve. All Newco Equity that was maintained by the Equalization Claim Reserve that is not transferred to the Equalization-Related Employee Claim Reserve will be cancelled. Any residual property remaining in the Equalization-Related Employee Claim Reserve other than Newco Equity after satisfaction of Allowed Equalization-Related Employee Claims will revert to Reorganized SCL, and, after payment of post-emergence costs, will be used to pay the Newco Repatriation Note. After the Newco Repatriation Note is paid in full, any remaining property of Reorganized SCL, other than Newco Equity, will be distributed to Reorganized SCL for distribution to the holders of Allowed Claims on a pro rata basis. Bermuda and U.K. Scheme of Arrangement In light of SCL being incorporated in Bermuda, the Bermuda Scheme of Arrangement is necessary to ensure that the Plan can be implemented under the laws of Bermuda. The Debtors have also determined that the U.K. Scheme of Arrangement is necessary to implement the Pension Schemes Settlement Agreement, which settles significant claims against the Debtors, and is a major aspect of the Plan. The effectiveness of the Schemes of Arrangement is a condition to consummation of the Plan. Because of certain English regulatory requirements, the Pension Schemes Claims against SCSL can only be compromised by way of a U.K. scheme of arrangement or their treatment must be otherwise approved by the U.K. Pension Protection Fund. As a consequence, the Pension Schemes will participate in the U.K. Scheme of Arrangement. The Amended Plan says that there will only be a single class of U.K. Scheme Claims in the U.K. Scheme of Arrangement consisting of the 1983 Pension Scheme Claims and the 1990 Pension Scheme Claims. It is anticipated that the English Court will have held the hearing to approve the UK Scheme of Arrangement prior to the close of voting for the Plan. Voting on the U.K. Scheme of Arrangement and any Debtor affiliate schemes of arrangement is separate from voting on the Plan. New Provisions Added to the Plan The Plan Proponents have inserted to the Amended Plan a section relating to their settlement negotiations with GECC with respect to GE SeaCo. In the section on disposal of the Debtors' non-core business, a provision was added to reflect that each Non-Debtor Subsidiary will pay the costs of its own liquidation and wind- down, including the costs of disposing of non-container-leasing businesses and assets. The Plan is also amended to add sections relating to, among other things, risks with respect to the Sea Containers America pension plan. In that section, the Debtors express their disagreement with the assertions of Pension Benefit Guaranty Corporation that, among other things, SC America and the Debtors are jointly and severally obligated to contribute to the Pension Plan the amounts necessary to satisfy the minimum funding standards of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. Exit Financing The Amended Plan discloses that in an effort to obtain the most attractive exit financing, the Debtors approached 10 potential exit lenders, including their existing bondholders, who were already knowledgeable about the Debtors' container interests and leasing activities. The Debtors received three preliminary, non- binding letters of intent from the 10 parties. After consulting with its advisors and the Official Committee of Unsecured Creditors' representatives, the Debtors selected a still unnamed exit lender with significant experience financing container leasing companies as the preferred lender because of its more attractive offers. The Debtors subsequently negotiated extensively for weeks to reach agreement on a financing term sheet that best meets the Debtors' requirements. The term sheet, which is in the final stages of negotiation, contemplates a financing facility of up to US$150,000,000 to Newco to repay the DIP Facility, fund certain payments contemplated under the Plan, and provide working capital for Newco. According the Plan, the Debtors expect shortly to complete negotiation of the term sheet, and to receive a financing commitment. They assure the Court that a summary of the material terms of the term sheet will be subsequently filed. They anticipate that any financing commitment will be subject to certain customary conditions, which will need to be satisfied prior to funding. Avoidance Actions The Debtors have analyzed potential avoidance of prepetition transfers under Sections 547 and 550 of the Bankruptcy Code, identifying approximately US$10,000,000 of potentially preferential transfers in the aggregate. Based upon their analysis, the Debtors believe that prosecution of these transfers through adversary proceedings likely will not produce sufficient recoveries to justify the costs incurred in connection with prosecution. The Debtors, however, believe that the existence of the transfers may provide the basis for the disallowance of one more proofs of claim filed against the Debtors, pursuant to Section 502(d) of the Bankruptcy Code. The Debtors are currently engaged in discussions with advisors to the Creditors Committees with respect to the benefits and associated costs of prosecuting preference actions. In any event, the Debtors assert that nothing in the Amended Plan or Amended Disclosure Statement will be construed to restrict or constitute a waiver of the Debtors' ability to bring avoidance actions against any entity, except with respect to those entities expressly released under the Plan. A full-text copy of the Debtors' First Amended Chapter 11 Plan is available for free at: http://ResearchArchives.com/t/s?3253 A full-text copy of the Debtors' First Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?3254 A blacklined copy of the Debtors' First Amended Plan is available for free at: http://ResearchArchives.com/t/s?3255 A blacklined copy of the Debtors' First Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?3256 Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: SCL Panel, et al., Balk at Disclosure Statement --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sea Containers, Ltd., relates that the Debtors' request to approve the settlement of the Pension Claims has been briefed, tried and argued, and the parties await the decision of the U.S. Bankruptcy Court for the District of Delaware. The SCL Committee asserts that the Court could resolve the Settlement Request in one of these ways: (i) the Court could grant the Settlement Request, and approve the proposed Pension Settlement; (ii) the Court could deny the Settlement Request outright; or (iii) the Court could deny the Settlement Request, while providing guidance reflecting the Court's view of reasonable settlement elements and a reasonable settlement range. The Debtors are asking the Court to move forward immediately with proceedings to approve their disclosure statement explaining their proposed joint plan of reorganization, and to solicit and confirm the Plan that assumes and permits only one outcome on the Settlement Request -- approval of the Pension Settlement -- even if that settlement is one of the most hotly contested issues in the bankruptcy cases, asserts William H. Sudell, Jr., Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware. "Dissemination of the Plan prior to a ruling on the Settlement is premature and is a potentially needless waste of the time and resources of the Court and the estates," Mr. Sudell contends. He points out that if the Settlement Request is denied, or if the Pension Settlement is modified, the Debtors would be required to prepare a new disclosure statement and plan, and re-solicit votes from the creditors. The proposed Plan is premised on fundamental and critical uncertainties, Mr. Sudell says. He notes that the Plan requires that the Court grant the Settlement Request in its entirety, and thus, it is impossible for Plan confirmation to proceed unless the Court rules to approve the Pension Settlement. He adds that if the Settlement Request is denied, parties would likely be forced for an expeditious re-negotiation with the relevant facts and law now on the table. Against this backdrop, the SCL Committee maintains that the most prudent, practical, economical, and expeditious way to arrive at a confirmable Plan is for the Court to issue an order (i) denying approval of the adequacy of the Disclosure Statement, and (ii) denying the pending Settlement Request, and that provides guidance reflecting the Court's view of a reasonable settlement range. SCSL Committee & Trustees Object Too Although the disclosure statement accompanying the Debtors' joint plan of reorganization purports to characterize the factors that will inform the Pension Schemes' decision to accept or reject the Plan, it fails to disclose that the Pension Schemes intend to vote to reject the Plan if, by the voting deadline, there is any chance that the Plan will be consummated in a way that would jeopardize the Pension Schemes' ability to enter the Pension Protection Fund or trigger a Pension Protection Fund assessment period, the Official Committee of Unsecured Creditors of Sea Containers Services Limited and the Pension Schemes' Trustees tell Judge Carey. David B. Stratton, Esq., at Pepper Hamilton LLP, in Wilmington, Delaware, relates that the Plan contemplates that one of the joint provisional liquidator in Bermuda or Ernst & Young LLP will be appointed Plan administrator, with the Reorganized Sea Containers Limited to pay all reasonable amounts needed by the administrator and currently pegged at US$8,000,000. Mr. Stratton argues that further disclosure is required with respect to the contemplated terms of the Plan Administrator's engagement. The Plan sets forth procedures for the appointment of the initial Plan Administrator; however, the Disclosure Statement fails to disclose in any detail the terms of the Plan Administrator's compensation, he points out. "As the Plan Administrator's compensation will be paid from the same assets that will be used to satisfy distributions to creditors of the Reorganized SCL, holders of claims against Reorganized SCL should be made fully aware of the terms of compensation prior to voting on the Plan," Mr. Sudell tells the Court. "As currently drafted, the Disclosure Statement does not provide sufficient information regarding compensation and any other material terms of the engagement to enable claim holders to make an informed judgment about the Plan," he continues. The SCSL Committee and the Pension Trustees have identified several disclosure issues to the Debtors, Mr. Sudell discloses. He states that as of the Disclosure Statement deadline, many of those issues remained unresolved. He notes that in a number of instances, and in the hope of reaching a compromise on certain open issues, the SCSL Committee and the Pension Trustees proposed their own language for inclusion in the Disclosure Statement. To the extent that any of the issues raised by the SCSL Committee and the Pension Trustees remain unresolved at the time of the Disclosure Statement hearing, the SCSL Committee and the Pension Trustees reserve their right to raise any objections in respect of those issues at the hearing. Accordingly, the SCSL Committee and the Pension Trustees ask the Court to deny the Debtors' request for approval of Disclosure Statement's adequacy, unless the Disclosure Statement is revised to disclose: (a) that the Pension Schemes will vote to reject the Plan if they believe by the voting deadline that the Plan is likely to be consummated in a way that would jeopardize the Schemes' Pension Protection Fund Eligibility; and (b) the contemplated terms of the Plan Administrator's compensation. Contrarian, et al., See Flaws Bondholders Contrarian Capital Advisors, LLC, J.P. Morgan Securities Inc., Credit Trading Group, Post Advisory Group, LLC, Trilogy Capital LLC, and Varde Investment Partners, L.P., jointly submit their reservation of rights to the Court with respect to the Debtors' request for the Court to find their proposed disclosure statement as containing adequate information. As mentioned by the Debtors' counsel during the recent status conference, the Debtors have been working with, among others, the Official Committee of Unsecured Creditors of Sea Containers, Ltd., and the Bondholders' counsel to resolve any open issues with respect to the Disclosure Statement, relates Neal J. Levitsky, Esq., at Fox Rothschild LLP, in Wilmington, Delaware. He notes that the Bondholders are hopeful that the open issues will be resolved. If there are still additional information requested by the Bondholders that the Debtors have not yet finalized or filed by the deadline for filing Disclosure Statement objections, the Bondholders reserve all of their rights to raise any objections they may have at the Disclosure Statement hearing. Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) =========== B R A Z I L =========== BANCO NACIONAL: Prepares to Secure Investments, Says Mr. Coutinho ----------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA President, Luciano Coutinho, has guaranteed that the Bank is prepared to respond positively to the Brazilian economy investment financing needs. He acknowledged that this is a �stressful� moment in the international financial system, but he said that President Luiz Inacio Lula da Silva and the Finance Minister, Guido Mantega, instructed BNDES to support the demand of investments, filling potential gaps left by any restrictions in the private credit market. The government�s goal is to assure investments. �The government�s willingness is to keep credits available for investments, such that the total savings and investments rate, responsible for the creation of future offers, keeps growing�, Mr. Coutinho said, on Sept. 18, in a collective interview at the Bank�s headquarters, in Rio. During the meeting with the press, Coutinho disclosed the Bank�s year-to-date performance, ended in August. Disbursements amounted to BRL80.8 billion and approvals BRL110.7 billion, the highest amounts in the Bank�s history. Mr. Coutinho forecasted that disbursements must exceed a record level of BRL85 billion by the end of the year. He stated that �at this moment of global crisis BNDES is in a sound and comfortable position�. BNDES President referred to the negotiations to complement the Bank�s funding, with BRL15 billion in loans received from the Treasury and agreements to have access to BRL7 billion in FGTS Infrastructure Investment Fund. �We are able to, in the next months, which will be the busiest ones, provide comfort and breath to production investments�, he said. As far as he is concerned, Brazil is able to exceed the crisis and come out of it stronger. One of the keys to do that, according to him, is to enlarge domestic savings. Mr. Coutinho believes that the demand for BNDES funds will be stable in 2009, when infrastructure investments, especially in electric power, will draw on the Bank�s disbursements. He also said that the country is entering a new investment cycle and that credit/GDP ratio may still grow further: �There is a long road ahead of us�, he said. He also listed factors that corroborate the view that the Brazilian economy is undergoing a sound investment cycle: * huge infrastructure projects underway; * the huge potential of the Brazilian internal market, reinforced by growing income; * export opportunities, which will persist in spite of the decreasing commodity prices; and * the new opportunity brought by pre-salt discoveries, with massive investments and the need to develop the Brazilian production chain. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BANCO NACIONAL: Reports BRL80.8 Billion Disbursements as of August ------------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social SA had the best 12-month performance ever as of August 2008. All industries -- industry, infrastructure, farming, sales and services �- showed considerable growth in this period. Total disbursements and approvals were the highest ones in the Bank�s history, reaching BRL80.8 billion and BRL110.7 billion. Investments in infrastructure projects are under expansion. Disbursements amounted to BRL33.7 billion (a 70% increase) and approvals of BRL46.8 billion (a 39% increase). Road transport and electric power industries are the highlights, with BRL16 billion and BRL8.3 billion disbursements. In the first eight months of the year, disbursements to the industry reached BRL21.1 billion (a 23% increase as compared to the same period before) and to infrastructure amounted to BRL20.7 billion (a 64% growth). Following the same trend, approvals reached BRL34 billion (a 36% increase) and BRL21.4 billion (6% higher). Industry highlights were the ones focused on the domestic market. So much so that by excluding financing arrangements for exports, disbursements to the industry increased 13.71%. Outstanding industries were the food, beverages, textile, clothing, chemical and petrochemical industries. Following this trend, increase of disbursements was 35% (BRL6.5 billion), 199% (BRL1.2 billion), and 29% (BRL5.2 billion). Total disbursements to the industry in the last 12 months ended in August totaled BRL30.3 billion and approvals, BRL47.3 billion. One of the main factors in the stats of these industries consisted in the massive concentration of disbursements and approvals in the first eight months of the year, revealing a growing demand in 2008 as compared to the last semester of 2007. Out of the BRL6.5 billion released for food and beverages in the last 12 months, for instance, BRL5.3 billion refer to the disbursements made between January and August 2008. The textile and clothing segment presented a similar behavior. Out of BRL1.2 billion, BRL1 billion have been disbursed this year. To the chemical and petrochemical industries, BRL3 billion, out of the BRL5.2 billion disbursed in 12 months were released in January and August 2008. Approvals follow the same trend. Out of BRL10 billion allocated to the food and beverage industry, BRL7.6 billion relate to this year. In the clothing industry, around 60% from BRL1.4 billion approved in 12 months concerns 2008 investments. To the chemical and petrochemical industries, out of the BRL6 billion disbursed in 12 months, BRL4.5 billion have been approved between January and August. Such projects concern investments in expansion of cold warehouses, construction of chicken farms and animal food plants. The figures also include expansion of sugar cane milling capacity for sugar production and, especially alcohol produced to supply the national fleet of flex fuel vehicles. Investments to textile and petrochemical areas were assigned to production capacity expansion, purchase of equipment and upgrading. Most of the performance reported may result from high consumption, caused by higher employment, income and credit rates, which enabled new investments by companies focused on domestic demand. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BANCO PROSPER: Moody's Lowers Ba3 Currency Deposit Ratings to B1 ---------------------------------------------------------------- Moody's Investors Service downgraded the bank financial strength rating of Banco Prosper S.A. to E+ from D-, with a stable outlook. The bank's long-term local and foreign currency deposit ratings were also downgraded to B1 from Ba3. At the same time, the rating agency downgraded Banco Prosper's long- and short-term Brazilian national scale ratings to Baa2.br/BR-3 from A3.br/BR-2. The outlook on the long-term local and foreign currency deposit ratings and national scale rating is negative. The rating action concludes the review of Banco Prosper's ratings initiated on June 5, 2008. Moody's noted that the downgrade reflects its view that the bank's franchise value is challenged by much reduced demand for what used to be one of its key product lines, which in turn, has triggered a substantial reduction in the bank's profitability. This is so because its business model of origination and distribution of loans ensured that profitability was high and capital utilization was modest. Weakened profitability in the bank's core business was exacerbated by the effects of mark-to-market adjustments in its portfolio of equities held as long-term investments, added the rating agency, and which translated into losses reported for the first half of 2008. Moody's said that management is, therefore, faced with the challenge of repositioning the bank's lending franchise in order to build revenues from traditional commercial lending in an environment of intensified competition and potentially softer economic growth. In response to such scenario, management is tightening the bank's loan origination criteria, thus seeking to maintain the quality and the profitability of its credit portfolio. The negative outlook on the bank's deposit ratings is reflective of Moody's view that Banco Prosper may be confronted with limited growth prospects in its core business for the next 12 months. Increasing funding costs and potential further losses from its securities portfolio could pose an additional threat to margins and profitability. These ratings of Banco Prosper S.A. were downgraded: -- Bank financial strength rating: to E+ from D-, with stable outlook; -- Long-term global local currency deposit rating: to B1 from Ba3, with negative outlook; -- Long-term foreign currency deposit rating: to B1 from Ba3, with negative outlook; -- Long-term Brazilian national scale deposit rating: to Baa2.br from A3.br, with negative outlook; and -- Short-term Brazilian national scale deposit rating: to BR-3 from BR-2 Headquartered in Rio de Janeiro, Brazil, Banco Prosper is established in 1983. As of June 2008, the bank had total assets of approximately BRL697 million (US$438 million) and equity of BRL156 million (US$98 million). DELPHI CORP: Reaches Settlement & Restructuring Pacts With GM ------------------------------------------------------------- Delphi Corp., as part of its efforts in completing the successful restructuring of its U.S. operations, is entering into amended settlement and restructuring agreements with General Motors Corp. Delphi will receive support from GM that Delphi estimates to be valued at approximately US$10.6 billion for its transformation -- increased from approximately US$6.0 billion in the January 2008 settlement. The agreement will modify the mechanics and expand the amount of Delphi's net hourly pension liability transfer to GM pursuant to section 414(l) of the Internal Revenue Code from US$1.5 billion under the original GSA to approximately US$3.4 billion. Delphi is taking action to preserve and fund Delphi's hourly and salaried pension plans and completing the reaffirmation process for its 2008-2011 business plan in the Revised Plan of Reorganization (RPOR), a summary of which is included in filings with the U.S. Bankruptcy Court for the Southern District of New York. Delphi will report on material additional progress with respect to Delphi's transformation plan announced in March 2006. It will establish its intent to enter the capital markets with its reaffirmed business plan, and to file in the Bankruptcy Court proposed modifications to its previously confirmed First Amended Joint Plan of Reorganization (POR). Delphi will file several expedited motions with the Bankruptcy Court that will be considered by the Court on Sept. 23, 2008, including: -- a motion to implement an amended and restated Global Settlement Agreement (Amended GSA) and Master Restructuring Agreement (Amended MRA) with GM. The original GSA and MRA were previously approved by the Bankruptcy Court on Jan. 25, 2008. The terms of the proposed amendments would authorize the GSA and MRA to become effective independent of and in advance of the effective date of the company's POR. The filing states that the Amended GSA and Amended MRA reflect GM's continuing and immediate support for Delphi's reorganization efforts -- including the transfer of certain hourly pension obligations -- and will enable Delphi to take the next steps in its transformation, including the actions that should allow it to emerge from chapter 11 as soon as practicable. -- a motion to freeze its hourly and salaried defined benefit pension plans and provide, as applicable, replacement cash balance or defined contribution pension benefits, a salaried retirement, and equalization savings program, and a supplemental executive retirement plan. Considerations in the Amended GSA and Amended MRA Implementation of the Amended GSA and Amended MRA at this time is necessary to preserve the substantial progress Delphi has made, and to position Delphi to emerge from chapter 11 as soon as practicable. Unlike the original GSA and MRA, in which GM required that its performance under those agreements be tied to Delphi's emergence from chapter 11, the Amended GSA and Amended MRA accelerate substantially all of GM's obligations in the original agreements (estimated by Delphi to be approximately US$6.0 billion in value to Delphi's transformation), which will be implemented immediately upon the effective date of the Amended GSA and Amended MRA. In addition, a substantial portion of GM's incremental net support (estimated by Delphi to be approximately US$4.6 billion in value to Delphi's transformation) also will become immediately and unconditionally effective. In exchange for GM's willingness to undertake these obligations, Delphi has agreed to treatment of GM's claims in the chapter 11 cases, and to release GM from certain claims and causes of action upon the effectiveness of the Amended GSA and the Amended MRA. Under the Amended GSA, GM would assume responsibility for the pensions of certain of Delphi's hourly retirement plan participants. The liabilities would be transferred in two steps, pursuant to section 414(l) of the Internal Revenue Code, and would be increased from US$1.5 billion to approximately US$3.4 billion. The liability transfers are subject to GM and Delphi receiving consent from a sufficient number of unions to complete the first step of the transfer. Through the implementation of the Amended GSA and Amended MRA, GM's financial support of Delphi -- which previously was to be received upon Delphi#s emergence from chapter 11 -- is being pulled forward to the effectiveness of the amendments. As a result, GM will make payments to Delphi of approximately US$1.2 billion in connection with the effectiveness of the Amended GSA and Amended MRA, and through the remainder of 2008. The payments by GM combined with Delphi's existing cash on hand -- which totaled in excess of US$1 billion at June 30, 2008, and amounts available under Delphi's DIP revolving credit facility, provide ample liquidity over the course of 2008. By immediately implementing the Amended MRA, Delphi will be in a position to pursue exit financing in the capital markets, including through an equity-based rights offering, to support what it believes to be a viable, reaffirmed emergence business plan that incorporates current market conditions and increased GM support. Delphi's Chief Restructuring Officer John Sheehan said that it is in the best interests of the company to seek approval to implement the Amended GSA and Amended MRA independent of and in advance of the effectiveness of the POR. He said the company has been advised by the Creditors' Committee that it may no longer support a settlement with GM and related transactions, if these transactions are approved in advance of the filing and approval of potential modifications to Delphi's POR which are acceptable to the committee. Absent consensual resolution of the Creditors' Committee concerns, the Committee may file objections to one or more of the motions and seek other relief from the Bankruptcy Court. Sheehan said Delphi will continue working toward a consensus among its principal stakeholders, including the committees, but that the likelihood of achieving consensus is speculative and not assured. Pension Plan Modifications The motion to modify the pension plans would authorize a freeze of the Delphi hourly pension plan following union consent and a freeze of the U.S. salaried plans. If approved by the Court, Delphi would then provide, subject to the union agreement, replacement cash balance or defined contribution pension benefits to its hourly employees; and for eligible salaried employees, Delphi would provide defined contribution pension benefits, a salaried retirement and equalization savings program, and a supplemental executive retirement plan. "We have remained committed to fully funding our pension plans and to being well-planned, well organized, and well-financed from the beginning of our chapter 11 cases," said Mr. Sheehan. "If approved by the Court, these actions and the additional operating support provided in the Amended GSA and Amended MRA are significant milestones in completing the final phases of the reorganization of our U.S. operations and positioning us to complete the financing required for our emergence from chapter 11 as soon as practicable." Transformed Delphi Poised to Complete Plans Delphi CEO and President Rodney O'Neal said the company has achieved remarkable progress in its overall transformation, and several elements of the transformation are outlined in the motions being filed today with the Court. "Despite recent challenges -- including difficult credit markets, the downturn in the U.S. auto industry, and other cost pressures -- our operating performance has improved significantly," Mr. O'Neal said. "Our team has accomplished this global transformation in the face of a complete restructuring of a significant portion of our operations." Mr. O'Neal said Delphi is on track to complete its transformation plan by the end of this year. The key tenets of that plan were to: -- modify U.S. labor agreements to create a competitive arena in which to conduct business; -- conclude Delphi's negotiations with GM to finalize GM's financial support for Delphi's legacy and labor costs and confirm GM's business commitment to Delphi; -- streamline Delphi's global product portfolio to capitalize on its technology and market strengths, and align its manufacturing and engineering footprint and capabilities with this new focus; -- transform Delphi's salaried workforce to ensure that the company's organizational and cost structure is competitive and aligned with its product portfolio and manufacturing footprint; and -- devise a workable solution to Delphi's U.S. pension situation. In addition to working to achieve the key tenets of the transformation plan, Mr. O'Neal said that Delphi has diversified its customer base by growing its business in Europe, Asia, and South America. A summary of Delphi's Reaffirmed 2008-2011 POR Business Plan (RPOR) is included in the Sept. 20, 2008 Court filings. When the closing on Delphi's POR was suspended on April 4, 2008, following Delphi's plan investors refusal to close on their Investment Agreement, Delphi undertook a reaffirmation process with respect to the business plan in the POR as part of Delphi's consideration of potential modifications to the POR in order to emerge from chapter 11 as soon as practicable. The RPOR includes: -- revised actual and expected volumes for the North American automotive market; -- significant increases in certain commodity costs; -- changes in the under-funded status of its pension plans as a result of negative plan asset returns; and -- substantial incremental financial support from GM committed to as part of the modified settlement. Assuming that the Bankruptcy Court approves Delphi's modified settlement with GM and the pension plan modification motion at a hearing scheduled to begin on Sept. 23, 2008, Delphi expects to enter the capital markets later this year with the RPOR and anticipates filing a motion seeking approval of modifications to the POR. "Our progress throughout this transformation has been tremendous and could not have been achieved without the diligence and commitment of our employees, suppliers and customers," Mr. O'Neal said. "We have maintained uninterrupted supply to our customers, and have booked record business with many of them. The approval of these amended agreements will help us continue our solid march toward becoming a completely transformed and more competitive company." About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: To Use Remaining US$3.5 Bil. in Credit Facility --------------------------------------------------------------- General Motors Corp. will draw down the remaining US$3.5 billion of its US$4.5 billion secured revolving credit facility to maintain a high level of financial flexibility for its ongoing restructuring during these uncertain times in the capital markets. GM also completed a US$322 million debt to equity exchange. "Accessing the funds available to us is a prudent liquidity measure. Drawing on the revolver now improves our liquidity position at a time when the capital markets have become more challenging," said GM Treasurer Walter Borst. The revolver draw will bolster the company's liquidity position. The proceeds from the draw would also be available to be used to retire US$750 million of debt maturities coming due in October, and to pay Delphi Corporation in excess of US$1.2 billion as part of its reorganization efforts, assuming court approval of the revised agreements between GM and Delphi that were filed with the court on Sept. 12. The US$4.5 billion secured revolving credit facility was put in place in July 2006 with a consortium of banks and provides liquidity that GM can draw on from time to time to fund working capital and other needs. John D. Stoll at The Wall Street Journal and Kathy Shwiff at Dow Jones Newswires relate that GM already used about US$1 billion from the line of credit early this year. GM's decision, says WSJ, indicates concern about the effect tight credit markets are having on the firm's cash cushion. The company's executives said in June that drawing down the credit line may send a negative signal to investors, WSJ relates. In the past, the company avoided relying heavily on its credit lines, as it enjoyed a relatively solid liquidity position, WSJ states. According to WSJ, GM's liquidity has been drained by dropping sales in the U.S. and restructuring charges recorded in recent years. In July, GM disclosed a plan to bolster liquidity through internal operating actions, asset sales and the capital markets. The internal operating elements of the plan remain on track and the company continues to look to access the capital markets. As part of its capital market activities, GM has completed a debt to equity exchange which will improve GM's liquidity by reducing both its debt and its interest costs. GM issued 28.3 million new shares of its common stock in exchange for US$322 million principal amount of its 1.5% Series D Senior Convertible Debentures, which mature in June 2009. Jeff Green and Alan Ohnsman at Bloomberg News relate that GM has said it needs to raise US$4 billion to US$7 billion by selling assets and adding debt to ensure it has enough liquidity to operate through the end of 2009. "GM felt it was a very prudent thing to have the cash on hand to borrow at very attractive rates. The timing was right, given the obvious instability in the financial markets," Bloomberg quoted GM spokesperson Julie Gibson as saying. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. GENERAL MOTORS: Exchanges 28.3 Mil. Shares for Series D Debentures ------------------------------------------------------------------ General Motors Corporation on Sept. 19, 2008, issued an aggregate of 28,300,000 shares of its common stock, par value US$1-2/3 per share in exchange for US$321,981,326 principal amount of its 1.50% Series D Convertible Senior Debentures due 2009, beneficially owned by a qualified institutional holder of the Debentures. The Agreement provided that the amount of Common Stock GM exchanged for the Debentures was based on the daily volume weighted average price of the Common Stock on the New York Stock Exchange during a four day pricing period. GM did not receive any cash proceeds as a result of the exchange of its Common Stock for the Debentures, which Debentures have been retired and canceled. GM entered into the Agreement to reduce its debt and interest costs, increase its equity and, thereby, improve its liquidity. GM will from time to time consider entering into additional exchanges on an opportunistic basis. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. GENERAL MOTORS: Enters Into Amended Settlement With Delphi ---------------------------------------------------------- Delphi Corp., as part of its efforts in completing the successful restructuring of its U.S. operations, is entering into amended settlement and restructuring agreements with General Motors Corp. Delphi will receive support from GM that Delphi estimates to be valued at approximately US$10.6 billion for its transformation -- increased from approximately US$6.0 billion in the January 2008 settlement. The agreement will modify the mechanics and expand the amount of Delphi's net hourly pension liability transfer to GM pursuant to section 414(l) of the Internal Revenue Code from US$1.5 billion under the original GSA to approximately US$3.4 billion. Delphi is taking action to preserve and fund Delphi's hourly and salaried pension plans and completing the reaffirmation process for its 2008-2011 business plan in the Revised Plan of Reorganization (RPOR), a summary of which is included in filings with the U.S. Bankruptcy Court for the Southern District of New York. Delphi will report on material additional progress with respect to Delphi's transformation plan announced in March 2006. It will establish its intent to enter the capital markets with its reaffirmed business plan, and to file in the Bankruptcy Court proposed modifications to its previously confirmed First Amended Joint Plan of Reorganization (POR). Delphi will file several expedited motions with the Bankruptcy Court that will be considered by the Court on Sept. 23, 2008, including: -- a motion to implement an amended and restated Global Settlement Agreement (Amended GSA) and Master Restructuring Agreement (Amended MRA) with GM. The original GSA and MRA were previously approved by the Bankruptcy Court on Jan. 25, 2008. The terms of the proposed amendments would authorize the GSA and MRA to become effective independent of and in advance of the effective date of the company's POR. The filing states that the Amended GSA and Amended MRA reflect GM's continuing and immediate support for Delphi's reorganization efforts -- including the transfer of certain hourly pension obligations -- and will enable Delphi to take the next steps in its transformation, including the actions that should allow it to emerge from chapter 11 as soon as practicable. -- a motion to freeze its hourly and salaried defined benefit pension plans and provide, as applicable, replacement cash balance or defined contribution pension benefits, a salaried retirement, and equalization savings program, and a supplemental executive retirement plan. Considerations in the Amended GSA and Amended MRA Implementation of the Amended GSA and Amended MRA at this time is necessary to preserve the substantial progress Delphi has made, and to position Delphi to emerge from chapter 11 as soon as practicable. Unlike the original GSA and MRA, in which GM required that its performance under those agreements be tied to Delphi's emergence from chapter 11, the Amended GSA and Amended MRA accelerate substantially all of GM's obligations in the original agreements (estimated by Delphi to be approximately US$6.0 billion in value to Delphi's transformation), which will be implemented immediately upon the effective date of the Amended GSA and Amended MRA. In addition, a substantial portion of GM's incremental net support (estimated by Delphi to be approximately US$4.6 billion in value to Delphi's transformation) also will become immediately and unconditionally effective. In exchange for GM's willingness to undertake these obligations, Delphi has agreed to treatment of GM's claims in the chapter 11 cases, and to release GM from certain claims and causes of action upon the effectiveness of the Amended GSA and the Amended MRA. Under the Amended GSA, GM would assume responsibility for the pensions of certain of Delphi's hourly retirement plan participants. The liabilities would be transferred in two steps, pursuant to section 414(l) of the Internal Revenue Code, and would be increased from US$1.5 billion to approximately US$3.4 billion. The liability transfers are subject to GM and Delphi receiving consent from a sufficient number of unions to complete the first step of the transfer. Through the implementation of the Amended GSA and Amended MRA, GM's financial support of Delphi -- which previously was to be received upon Delphi#s emergence from chapter 11 -- is being pulled forward to the effectiveness of the amendments. As a result, GM will make payments to Delphi of approximately US$1.2 billion in connection with the effectiveness of the Amended GSA and Amended MRA, and through the remainder of 2008. The payments by GM combined with Delphi's existing cash on hand -- which totaled in excess of US$1 billion at June 30, 2008, and amounts available under Delphi's DIP revolving credit facility, provide ample liquidity over the course of 2008. By immediately implementing the Amended MRA, Delphi will be in a position to pursue exit financing in the capital markets, including through an equity-based rights offering, to support what it believes to be a viable, reaffirmed emergence business plan that incorporates current market conditions and increased GM support. Delphi's Chief Restructuring Officer John Sheehan said that it is in the best interests of the company to seek approval to implement the Amended GSA and Amended MRA independent of and in advance of the effectiveness of the POR. He said the company has been advised by the Creditors' Committee that it may no longer support a settlement with GM and related transactions, if these transactions are approved in advance of the filing and approval of potential modifications to Delphi's POR which are acceptable to the committee. Absent consensual resolution of the Creditors' Committee concerns, the Committee may file objections to one or more of the motions and seek other relief from the Bankruptcy Court. Sheehan said Delphi will continue working toward a consensus among its principal stakeholders, including the committees, but that the likelihood of achieving consensus is speculative and not assured. Pension Plan Modifications The motion to modify the pension plans would authorize a freeze of the Delphi hourly pension plan following union consent and a freeze of the U.S. salaried plans. If approved by the Court, Delphi would then provide, subject to the union agreement, replacement cash balance or defined contribution pension benefits to its hourly employees; and for eligible salaried employees, Delphi would provide defined contribution pension benefits, a salaried retirement and equalization savings program, and a supplemental executive retirement plan. "We have remained committed to fully funding our pension plans and to being well-planned, well organized, and well-financed from the beginning of our chapter 11 cases," said Mr. Sheehan. "If approved by the Court, these actions and the additional operating support provided in the Amended GSA and Amended MRA are significant milestones in completing the final phases of the reorganization of our U.S. operations and positioning us to complete the financing required for our emergence from chapter 11 as soon as practicable." Transformed Delphi Poised to Complete Plans Delphi CEO and President Rodney O'Neal said the company has achieved remarkable progress in its overall transformation, and several elements of the transformation are outlined in the motions being filed today with the Court. "Despite recent challenges -- including difficult credit markets, the downturn in the U.S. auto industry, and other cost pressures -- our operating performance has improved significantly," Mr. O'Neal said. "Our team has accomplished this global transformation in the face of a complete restructuring of a significant portion of our operations." Mr. O'Neal said Delphi is on track to complete its transformation plan by the end of this year. The key tenets of that plan were to: -- modify U.S. labor agreements to create a competitive arena in which to conduct business; -- conclude Delphi's negotiations with GM to finalize GM's financial support for Delphi's legacy and labor costs and confirm GM's business commitment to Delphi; -- streamline Delphi's global product portfolio to capitalize on its technology and market strengths, and align its manufacturing and engineering footprint and capabilities with this new focus; -- transform Delphi's salaried workforce to ensure that the company's organizational and cost structure is competitive and aligned with its product portfolio and manufacturing footprint; and -- devise a workable solution to Delphi's U.S. pension situation. In addition to working to achieve the key tenets of the transformation plan, Mr. O'Neal said that Delphi has diversified its customer base by growing its business in Europe, Asia, and South America. A summary of Delphi's Reaffirmed 2008-2011 POR Business Plan (RPOR) is included in the Sept. 20, 2008 Court filings. When the closing on Delphi's POR was suspended on April 4, 2008, following Delphi's plan investors refusal to close on their Investment Agreement, Delphi undertook a reaffirmation process with respect to the business plan in the POR as part of Delphi's consideration of potential modifications to the POR in order to emerge from chapter 11 as soon as practicable. The RPOR includes: -- revised actual and expected volumes for the North American automotive market; -- significant increases in certain commodity costs; -- changes in the under-funded status of its pension plans as a result of negative plan asset returns; and -- substantial incremental financial support from GM committed to as part of the modified settlement. Assuming that the Bankruptcy Court approves Delphi's modified settlement with GM and the pension plan modification motion at a hearing scheduled to begin on Sept. 23, 2008, Delphi expects to enter the capital markets later this year with the RPOR and anticipates filing a motion seeking approval of modifications to the POR. "Our progress throughout this transformation has been tremendous and could not have been achieved without the diligence and commitment of our employees, suppliers and customers," Mr. O'Neal said. "We have maintained uninterrupted supply to our customers, and have booked record business with many of them. The approval of these amended agreements will help us continue our solid march toward becoming a completely transformed and more competitive company." About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ========================== C A Y M A N I S L A N D S ========================== ARTISAN CAPITAL: Proof of Claim Filing Deadline Is Sept. 30 ----------------------------------------------------------- Artisan Capital Worldwide Corp.'s creditors have until Sept. 30, 2008, to prove their claims to CDL Company 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. Artisan Capital's shareholders agreed on June 30, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: CDL Company Ltd. P.O. Box 31106 Grand Cayman, Cayman Islands CORK INC: Deadline for Proof of Claim Filing Is Sept. 30 -------------------------------------------------------- Cork Inc.'s creditors have until Sept. 30, 2008, to prove their claims to Victor M. Opitz, 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. Cork's shareholders agreed on July 9, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Victor M. Opitz c/o TransOcean Bank & Trust Ltd. P.O. Box 1959 Grand Cayman, Cayman Islands Tel: (345) 949-7493 Fax: (345) 949-7524 CORK INC: Will Hold Final Shareholders Meeting on Sept. 30 ---------------------------------------------------------- Cork Inc. will hold its final shareholders meeting on Sept. 30, 2008, at 10:00 a.m., at the offices of TransOcean Bank & Trust Ltd., P.O. Box 1959, Grand Cayman, Cayman Islands. The accounting of the wind-up process will be taken up during the meeting. Cork's shareholders agreed on July 9, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Victor M. Opitz c/o TransOcean Bank & Trust Ltd. P.O. Box 1959 Grand Cayman, Cayman Islands Tel: (345) 949-7493 Fax: (345) 949-7524 GATKO GLOBAL: Holds Final Shareholders Meeting on Sept. 30 ---------------------------------------------------------- Gatko Global Opportunities Fund Ltd. will hold its final shareholders meeting on Sept. 30, 2008, at 3:30 p.m., at the offices of DMS Corporate Services Ltd, dms House, 20 Genesis Close, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Gatko Global's shareholder decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: DMS Corporate Services Ltd. c/o dms House, 2nd Floor P.O. Box 1344 George Town, Grand Cayman Cayman Islands Contact for inquiries: Bernadette Bailey-Lewis Tel: (345) 946-7665 Fax: (345) 946-7666 GATKO GLOBAL MASTER: Final Shareholders Meeting Is on Sept. 30 -------------------------------------------------------------- Gatko Global Opportunities Master Fund Ltd. will hold its final shareholders meeting on Sept. 30, 2008, at 3:00 p.m., at the offices of DMS Corporate Services Ltd, dms House, 20 Genesis Close, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Gatko Global's shareholder decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: DMS Corporate Services Ltd. c/o dms House, 2nd Floor P.O. Box 1344 George Town, Grand Cayman Cayman Islands Contact for inquiries: Bernadette Bailey-Lewis Tel: (345) 946-7665 Fax: (345) 946-7666 HANOVER INSURANCE: Sets Final Shareholders Meeting on Sept. 30 -------------------------------------------------------------- Hanover Insurance Company Ltd. will hold its final shareholders meeting on Sept. 30, 2008, at the offices of Marsh Management Services Cayman Ltd, Building 4, Floor 2, 23 Lime Tree Bay Avenue, Governors Square, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of two years from the dissolution of the company, after which they may be destroyed. Hanover Insurance's shareholder decided on May 28, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Marsh Management Services Cayman Ltd. P.O. Box 1051GT Building 4, Floor 2 23 Lime Tree Bay Avenue, Governors Square Grand Cayman, Cayman Islands SCHOLARLY PUBLICATIONS: Final Shareholders Meeting Is Sept. 30 -------------------------------------------------------------- Scholarly Publications International Inc. will hold its final shareholders meeting on Sept. 30, 2008, at 9:00 a.m., at the offices of The Bank of Nova Scotia Trust Company (Bahamas) Limited, 404 East Bay Street, Scotia House, Nassau, Bahamas. 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. Scholarly Publications' shareholders agreed on July 30, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Mr. Baldwin Rigby and Ms. La Vorn Taylor c/o The Bank of Nova Scotia Trust Co. (Bahamas) Ltd. 404 East Bay Street, Scotia House Nassau, Bahamas Tel: (242) 502-5724 Fax: (242) 326-0991 SHOOTER BEAR: Filing for Proof of Claim Deadline Is Sept. 30 ------------------------------------------------------------ The Shooter Bear Fund Ltd.'s creditors have until Sept. 30, 2008, to prove their claims to Paul McCann, 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. Shooter Bear'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: Paul McCann c/o 24-26 City Quay Dublin, Ireland Contact for inquiries: Krysten Lumsden P.O. Box 2681GT Grand Cayman, Cayman Islands Tel: (345) 945-3901 Fax: (345) 945-3902 SHOOTER BEAR: To Hold Final Shareholders Meeting on Sept. 30 ------------------------------------------------------------ The Shooter Bear Fund Ltd. will hold its final shareholders meeting on Sept. 30, 2008, at 9:00 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. Shooter Bear'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: Paul McCann c/o 24-26 City Quay Dublin, Ireland Contact for inquiries: Krysten Lumsden P.O. Box 2681GT Grand Cayman, Cayman Islands Tel: (345) 945-3901 Fax: (345) 945-3902 ============= G R E N A D A ============= ST. GEORGE UNIVERSITY: Workers' Strike Affects Operations --------------------------------------------------------- The strike initiated by 300 Grenadian workers at the American- owned St. George's University in Grenada (SGU) has affected the security, transportation and maintenance of the university, the Caribbean Net News says. The strike commenced after talks between the Technical and Allied Workers Union (TAWU) and SGU over salary increases broke down, the report relates. The talks collapsed after the TAWU refused to apologize over the contents of a pamphlet circulated on the campus, the Caribbean Net News reports. The pamphlet allegedly depicted, in caricature, statements from the University's management and the workers' response, the report notes. The Union's General Secretary, Burt Patterson, denied the Union's involvement in the pamphlet production, according to the report. The Caribbean Net News says that the Minister of Labor will intervene in the strike to resolve the issue. The SGU has nearly 5,000 students from 80 countries and employs more than 500 Grenadians, the report adds. ============= J A M A I C A ============= CABLE & WIRELESS: Considers Rebranding Caribbean Biz to LIME ------------------------------------------------------------ Cable & Wireless is considering rebranding its Caribbean operations as LIME, which stands for Landline, Internet, Mobile, Entertainment, The Jamaica Observer reports. An internal memo from a C&W executive, as cited by The Observer, described the move as �The phase where we create and introduce a new version of our brand, a fresh approach that signals to colleagues and customers that we've changed, that we've transformed and that we're becoming the business they want us to be.� The Observer relates an industry insider commented that the rebranding "is an admission that the bmobile brand was a bust. It is another example of C&W rearranging the deckchairs while the ship sinks - wasting money on another branding exercise when the overall customer experience is still so poor." About Cable & Wireless Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- operates through two standalone business units -- International and Europe, Asia & US. The International business unit operates integrated telecommunications companies in 33 countries, with principal operations in the Caribbean, Panama, Macau, Monaco and the Channel Islands. The Europe, Asia & U.S. business unit provides enterprise and carrier solutions to the largest users of telecoms services across the U.K., U.S., continental Europe and Asia -- and wholesale broadband services in the U.K. The company also has operations in India, China, the Cayman Islands and the Middle East. * * * Cable & Wireless plc continues to carry 'BB-' long-term and 'B' short-term corporate credit ratings from Standard & Poor's with a developing outlook. =============== C O L O M B I A =============== ECOPETROL SA: Initiates American Depositary Shares Listing on NYSE ------------------------------------------------------------------ Ecopetrol S.A. has disclosed the listing of its American Depositary Shares (ADSs) on the New York Stock Exchange (NYSE). Each ADS represents 20 ordinary shares of Ecopetrol common stock. The ADSs began trading on Sept. 18 on the NYSE under the ticker symbol "EC". Members of senior management, including Javier Gutierrez, President and Chief Executive Officer of Ecopetrol, as well as representatives of the Colombian Government and members of Ecopetrol's Board of Directors will visit the NYSE and ring the Opening Bell today to mark the listing. The ADSs are being listed following Ecopetrol's successful initial public offering on the Colombian Stock Exchange (BVC) in November 2007, which raised US$5.7 trillion Colombian Pesos (US$2.8 billion) from the sale of a 10.1% stake. Ecopetrol is not issuing new shares or raising additional capital through its ADS listing. "Ecopetrol has a nearly 60 year track record of growth. We also have a number of attractive expansion opportunities before us," said Mr. Gutierrez. "We are currently transforming ourselves into a global energy player by diversifying our portfolio, entering new geographic regions and continuing to expand through strategic alliances. Our successful IPO in Colombia last year was an important step in our transformation, and with our ADS listing we have become a part of the world's most liquid and transparent market." JPMorgan Chase Bank, N.A. will act as depositary for the ADS program and LaBranche & Co Inc. will serve as the specialist for trading the ADSs. 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+'. =========== M E X I C O =========== GAP INC: Reaches Franchise Agreement With Distribuidora Liverpool ----------------------------------------------------------------- Gap Inc. signed a franchise agreement with Distribuidora Liverpool, S.A. DE C.V., a proven partner with extensive retail experience in Mexico, and plans to begin selling products in the spring of 2009. Gap Inc. had previously worked with Liverpool through a wholesale agreement and during that time introduced Gap brand apparel in a limited manner to customers in Mexico. Mexico�s leading department store chain will have exclusive rights to sell Gap brand merchandise in a franchise �store within a store� concept. �As the 10th largest apparel market in the world, Mexico is an important country for us as we expand our franchise presence to Latin America,� said Ron Young, senior vice president of international strategic alliances for Gap Inc. �Our franchise program continues to build momentum with 21 countries and 100 stores. Partnering with local experts in regions throughout the world has been extremely beneficial, allowing us to introduce our brands to new customers in relevant and exciting ways.� The company also announced today that it has expanded its relationship with Fawaz Alhokair Group to include franchise agreements for Gap and Banana Republic in Egypt and Jordan. Fawaz Alhokair Group recently opened Gap and Banana Republic stores to great fanfare in Saudi Arabia and will now open stores in Egypt and Jordan over the next five years. The first Gap stores are expected to open in Egypt and Jordan for the 2008 holiday season. The first Banana Republic stores are expected to open in Jordan in the spring of 2009 and in Egypt for the 2009 fall season. Since the Gap Inc. franchise program began two years ago, more than 70 Gap franchise stores and nearly 30 Banana Republic franchise stores have opened. There are Gap franchise stores open in Bahrain, Greece, Indonesia, Korea, Kuwait, Oman, Qatar, Malaysia, Saudi Arabia, Philippines, Singapore, Turkey and the United Arab Emirates. Banana Republic franchise stores have opened in Bahrain, Indonesia, South Korea, Kuwait, Oman, Qatar, Malaysia, Singapore, Philippines, Turkey and the United Arab Emirates. In addition, Gap Inc. has signed and announced agreements to open Gap and Banana Republic franchise stores in Bulgaria, Croatia, Cyprus, Romania and Russia over the next 5 years. About Gap Headquartered in San Francisco, California, Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. has subsidiaries in the United Kingdom, Canada, France, Ireland, Japan, Hong Kong, Bermuda and Mexico, among others. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. * * * In April 2008, Fitch affirmed its BB+ rating on The Gap, Inc.'s issuer default rating and senior unsecured notes. Fitch however revised the rating outlook to stable from negative. LEHMAN BROTHERS: Mexico's Banorte May Incur US$20M Losses on Notes ------------------------------------------------------------------ Grupo Financiero Banorte SAB, Mexico's largest publicly traded lender, may incur losses of up to US$20 million in Lehman Brothers Holdings Inc. notes, representing about 1.8% of Banorte's 2008 recurring earnings, Bloomberg News reports. According to Bloomberg, Banorte will either take an impairment charge or post a loss on the notes in the fourth quarter. The effect of Banorte's projected loss may be offset by gains on shares in Visa Inc. that Banorte received when the card company sold its stock to the public in March, Bloomberg says. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America, including Argentina, Brazil, Mexico, Puerto Rico and Uruguay, and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) PORTOLA PACKAGING: Gets Initial OK to Use GECC's US$75MM Facility ----------------------------------------------------------------- The Hon. Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware authorized Portola Packaging Inc. and its debtor-affiliates to obtain, on an interim basis, up to US$75,000,000 in debtor-in-possession financing from (i) GE Capital Markets Group Inc., as syndication agent, and General Electric Capital Corporation, as administrative and collateral agent, and (ii) Wayzata Investment Partners LLC, as administrative and collateral agent. He also authorized the Debtors to use cash collateral securing repayment of secured loan to the lenders. A hearing is set for Sept. 22, 2008, at 4:00 p.m., to consider final approval of the Debtors' motion. The Debtors told the Court that the lenders agreed to provide up to US$79,000,000 in financing, on a final basis. The committed US$79,000,000 consists of (i) a US$50,000,000 million in postpetition financing under the fifth amended and restated senior postpetition credit agreement dated Aug. 27, 2008, between the Debtors and GECC, and (ii) a US$79,000,000 less the GECC payoff amount under the second amended and restated postpetition credit agreement dated Aug. 27, 2008, among the Debtors and Wayzata. As of their bankruptcy filing, the Debtors owe at least US$48,306,767 plus accrued and unpaid interest of US$239,126 to GECC and US$22,500,000 plus accrued and unpaid interest of US$329,000 to Wayzata. Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor LLP, said that the Debtors have an immediate need to obtain the DIP financing and use cash collateral to permit the Debtors to, among other things: -- continue to operate their businesses; -- maintain business relationships with vendors, suppliers and customers; -- pay employee wages in the ordinary course; -- make necessary capital expenditures; -- satisfy other working capital and operational needs; and -- make intercompany transfers to non-debtor affiliates for similar purposes. Under the first lien DIP financing agreement, the DIP loan will incur a variable rate of 2.5% per annum plus a floating rate equal to the higher of (i) the rate publicly quoted from time to time by The Wall Street Journal as the "base rate on corporate loans posted by at least 75% of the nation's 30 largest banks" and (ii) the Federal Funds Rate plus 50 basis points per annum. Under the second lien DIP financing agreement, the DIP loan will accrue interest at 12.0%. Furthermore, the DIP liens will incur default rate of interest at 2.0% in excess of the rates otherwise payable, after the occurrence and during the continuance of an event of default. Furthermore, the DIP liens are subject to US$1,250,000 carve-out for payment of fees, expenses and costs of professionals retained by the Debtors or the committee. To secure their DIP obligations, the lenders will be granted allowed superpriority administrative expense claims over any and all other administrative claims against the Debtor pursuant to Section 364(c)(1) of the Bankruptcy Code. The DIP credit agreements contain customary and appropriate events of default including, among other things, failure to make required payments, default under other debt agreements, and breach of covenants and warranties. A full-text copy of the Second Amended and Restated Senior Postpetition Credit Agreement dated Aug. 27, 2008, is available for free at http://ResearchArchives.com/t/s?3227 A full-text copy of the Fifth Amended and Restated Senior Postpetition Credit Agreement dated Aug. 27, 2008, is available for free at http://ResearchArchives.com/t/s?3228 A full-text copy of the the 13 Week Cash Flow Budget is available for free at http://ResearchArchives.com/t/s?3229 About Portola Packaging Portola Packaging Inc. -- http://www.portpack.com/-- 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. The company and 6 of its debtor-affiliates filed for Chapter 11 reorganization on Aug. 27, 2008 (Bankr. D. Del. Lead Case No. 08-12001). Edmon L. Morton, Esq., Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors as counsel. When the Debtors filed for protection from their creditors, they listed assets of between US$50 million and US$100 million, and debts of between US$100 million and US$500 million. The company has locations in China, Mexico and Belgium. ================= N I C A R A G U A ================= CENTRAL SUN: Provides Update on Nicaraguan Mine Projects -------------------------------------------------------- Central Sun Mining Inc. disclosed in a Securities and Exchange Commission filing an update on its on-going exploration program at the Limon, Orosi and Mestiza projects in Nicaragua. Limon Mine Area Drilling has continued on the new Santa Pancha southern extension. Central Sun has completed 22 diamond drill holes totaling 6,505 meters. The Santa Pancha orebody, which has the highest grade within the Limon Mine area deposits, is currently being mined on the 100 meter level at a reserve grade of approximately 5.6 g Au/t. Highlights from new results from the resource definition drilling program in the south extension area are: -- 9.83 g Au/t over true width of 6.4 meters in Hole LM-08-19; -- 198.69 g Au/t (7.90 g/t highs cut to 25 g/t) over true width of 5.3 meters in Hole LM-08-22; and -- 6.05 g Au/t over true width of 18.0 meters in Hole LM-08-21 The intersection in Hole LM-08-22 was very high grade due to an exceptional sample which returned 1,424 grams gold per ton over a 0.75 meter core length. While the cut value of 7.90 grams gold per ton is probably more likely to be representative of the overall grade in the general area of the hole, it does indicate the excellent potential for very high grade areas to occur in the Santa Pancha zone. In addition to the definition drilling, three holes were completed to test the area south of the 250 foot level (about 75 meters below surface) between the #2 and #5 shafts. Hole LM-08-21 intersected 6.05 grams gold per ton over a true width of 18.0 meters about 15 meters south of the limit of the old stope indicating that additional reserves can be defined from this level. Dr. Bill Pearson, P.Geo., Executive Vice President, Exploration commented, "The closer spaced drilling is providing much better definition of the distribution of gold mineralization within this extensive structure and we are continuing to have very good results. Our experience from underground mining is that the mine grades tend to be higher than those indicated in the drill holes. The drilling on the Santa Pancha south extension zone will be completed shortly and once all results are received, we will begin estimation of a new mineral resource." The Santa Pancha structure, located about 4 kilometers east of the Limon processing plant, strikes N20E and extends for approximately 2.5 kilometers along strike. Orosi Mine Area Exploration diamond drilling totaling 11,713 meters in 66 holes has been completed to date at Orosi. This program has focusing on testing targets within approximately five kilometers of the processing plant. Targets being tested include San Juan, Los Angeles, Quernos do Oro, Victoria-Santa Maria, and the Mojon SW and NE Extensions. In addition, eight reconnaissance diamond drill holes totaling 1,678 meters have been completed to test the induced polarization geophysical anomalies in the Gobierno area that cover a potential strike extension of 3 kilometers of the Mojon-Crimea and associated structures northeast of the mine. Central Sun is currently converting the Orosi open pit mine from a heap leach operation to a conventional milling operation. Production is expected to start in the first quarter of 2009 at a rate of approximately 85,000 ounces of gold per year. Proven and probable mineral reserves primarily in the Mojon-Crimea zone are estimated by Scott Wilson Roscoe Postle Associates Inc. at 11.0 million tons at 1.44 grams of gold per ton containing 510,000 ounces of gold. Drilling of 2,036 meters in 12 holes has been completed to test the San Juan vein structure, a potential new open pit mining target, located about 5 kilometers south of the mine area. These holes tested the structure over approximately an 800 meter strike length to a vertical depth of 180 meters. All but one hole intersected gold mineralized quartz veins/vein breccias. The final two holes in this program (SJ-08-12 and -13) returned 3.27 g Au/t over a true width of 11.5m and 3.60 g Au/t over 3.9 meters true width, respectively. A definition drill program of 16 holes totaling 2,200 meters is currently in progress to fill-in drill coverage to an approximately 50 meter by 50 meter spacing to define a mineral resource. At the Los Angeles target, which is a possible satellite target adjacent San Juan, three (3) holes totaling 565 meters have been completed to test targets at shallow depths. Hole AN-08-02 intersected 13.04 g Au/t (12.31with highs cut to 25g) over a true width of 5.0 meters at a vertical depth of only 30 meters. Hole AN-08-01 returned 2.61 g Au/t over a true width of 4.5 meters at a vertical depth of about 20 meters. Further drilling is planned to test this structure which has excellent potential to host open pittable mineral resources. The Cuernos de Oro structure located 2 kilometers north of the mine has been tested by 10 holes totaling 1,114 meters spaced at approximately 100 meter intervals over a strike length of one (1) kilometer. Results from the first six holes intersected a mineralized structure from 1.4 meters to 2.50 meters true width; the best result was 1.36 g Au/t over a true width of 1.4 meters in Hole CO-08-05. Results of the last four holes on this target are pending. In the Victoria-Santa Maria area, 12 holes totaling 2,618 meters have been completed at approximately 100 meter spacing to test the structure between the two mining areas that previously had very little drilling. All holes have intersected mineralized structures; results have been received for four additional holes. The best result was 4.94 g Au/t over a true width of 1.0 meters at a depth of approximately 40 meters below surface in Hole VICSM-08- 009. A detailed mapping program including re-interpretation of previous geological data in conjunction with new diamond drilling and petrological work has outlined a number of new targets along the Mojon-Crimea structure which hosts the majority of the mineral resources outlined to date at Orosi. A particular focus has been the potential extension of satellite structures to the southwest of the current pit design limits on Mojon. Seven holes totaling 1,548 meters have completed to test potential new structures. The best result was from Hole MJ-08-003 which returned 4.49 g Au/t over a true width of 0.5 meters. Induced Polarization/Resistivity surveys totaling 38.6 line kilometers in 21 lines were completed to explore the potential strike extension over approximately 3 kilometers of the Mojon- Crimea structures as well as satellite structures to the immediate northeast of the mine area. This survey has outlined a number of significant anomalies including two major chargeability anomalies 1.2 kilometers and 2.5 kilometers northeast of the mine area respectively. Eight reconnaissance diamond drill holes totaling 1,678 meters have been completed to test these anomalies. This area had never previously been drill tested and the area is covered by saprolite up to 5 meters thick so that there is essentially no outcrop. The holes confirmed the presence of widespread disseminated pyrite within a variety of hydrothermally clay-altered breccias. In places the breccias contain silicified fragments which probably came from an original silicified cap. While no significant gold values were returned from the first six holes for which assays have been received, this type of alteration is typically above or peripheral to the core silicified and gold mineralized center of the epithermal systems. The widespread hydrothermal alteration indicates that there is excellent potential for locating gold mineralized zones likely below or peripheral to where these holes were drilled. Based on this new geological information, the interpretation of the induced polarization survey is being refined to outline additional drill targets. Dr. Bill Pearson, P.Geo. commented, "The program at Orosi has accelerated significantly over the past two months with our improved understanding of the geology and distribution of gold mineralization. Drilling on several of the structures, particularly San Juan and Los Angeles, has returned grades significantly higher than the average Orosi open pit reserve grade indicating that there is excellent potential to outline additional resources with higher grades in these satellite structures. It is evident that the Mojon-Crimea structure extends much further to the northeast and the drilling results on the IP anomalies have confirmed widespread hydrothermal alteration, further work is required to locate the silicified core of the systems where gold mineralization is most likely to occur." Mestiza-La India Area At Mestiza-La India, located 70 kilometers east of Limon, Magnetic, Resistivity and Induced Polarization (IP) surveys have been conducted on approximately 45 line kilometers of new exploration grid oriented perpendicular to the Tatiana vein crossing the Mestiza property, along with geological mapping, sampling, prospecting and data compilation. This grid has been extended to the southwest and southeast to better cover the anomalous areas; IP surveys are currently in progress on an additional 32 line kilometers. Diamond drilling will commence soon to further test the Tatiana vein on the Mestiza property that contains an inferred mineral resource of 558,000 tons at 8.80 g Au/t containing 158,600 ounces of gold. This vein has now been traced for a strike length of 5 kilometers. Elsewhere on the property geological mapping and sampling is continuing with a particular focus on outlining areas with potential conjugate veins sets where a greater density of veining could yield potential open pittable targets. About Central Sun Headquartered in Toronto, Ontario, Central Sun Mining Inc. (TSX: CSM)(TSX: CSM.WT)(AMEX: SMC)-- http://www.centralsun.ca/-- is a gold producer with mining and exploration activities focused in Nicaragua. The company operates the Limon Mine and is in the process of converting the Orosi Mine (formerly the Libertad Mine) to a conventional milling operation. Both properties are located in Nicaragua. The Bellavista Mine in Costa Rica is currently being reclaimed. The company also has an option to acquire the Mestiza exploration property in Nicaragua. Central Sun's growth strategy is focused on optimizing current operations, expanding mineral resources and reserves at existing mines, and looking for merger and acquisition opportunities in the Americas. In early 2007, the company commenced a major project to convert the heap- leach process at the Orosi Mine to a conventional milling operation (Mill Project). Mining activities at the company's Bellavista Mine ceased during the third quarter of 2007. Since that time, reclamation activities have begun and it is not expected that mining activities will resume. Going Concern Doubt Management of Central Sun Mining Inc. believes there exists substantial doubt about the company's ability to continue as a going concern. As at March 31, 2008, the company had used US$3,344,000 in operating cash flows, reported a net loss of US$5,022,000 and had an accumulated deficit of US$87,501,000. The company says it may not have sufficient cash to fully fund ongoing 2008 capital expenditures, exploration activities and complete the development of the Orosi Mine - mill project and therefore will require additional funding which, if not raised, would result in the curtailment of activities and project delays. At March 31, 2008, the company's consolidated balance sheet showed US$68,844,000 in total assets, US$20,065,000 in total liabilities, and US$48,779,000 in total stockholders' equity. =============================== T R I N I D A D & T O B A G O =============================== HINDU CREDIT: Comr. Mitchell Gets OK to Read Auditor's Report ------------------------------------------------------------- High Court Judge Charmaine Pemberton has given Commissioner of Co- operatives Charles Mitchell authority to disseminate information contained in auditor Ernst and Young's report on Hindu Credit Union Co-Operative Society Limited (HCU), Trinidad & Tobago's Newsday reports. A Sept. 16, 2008 meeting with members of the HCU and Commissioner Mitchell erupted into a noisy fracas even before details of the auditor's report were revealed, prompting Mr. Mitchell to adjourn the meeting prematurely. According to the Trinidad & Tobago Guardian, the Ernst and Young report stated that the HCU was insolvent, with a net shortfall of assets to liabilities of US$486.5 million. The report said HCU had assets of US$390,131,614 and liabilities of US$876,537,695. The report, the Guardian relates, also stated: "...save for Bankers Insurance, all of the subsidiaries of the HCU have been operating at losses and were being supported by loans and financing from the HCU of over US$211 million, which lead to further bleeding of the HCU." Ernst and Young's report, as cited by the Trinidad & Tobago Guardian, further stated that: -- The financial records of the HCU were not being maintained properly and accordingly the financial statements from management were inaccurate and could not be relied on. -- The investment into the subsidiary companies, with the exception of Bankers Insurance, have resulted in the HCU extending significant loans and other funding to the subsidiaries. There have been no repayments on these loans and it is unlikely, given the financial position of these subsidiaries, that these significant sums can be repaid. The total amount expended by the HCU on the subsidiaries was US$211 million. -- There was no fixed asset register; therefore, except for the property holdings, there was no comprehensive list of assets which one could verify. There were a number of improvements done to properties leased by the HCU which are no longer in use and had to be written off. This resulted in a write-off of US$4.1 million. -- There were intangible assets as well as properties for which there was no legal title, which accounted for US$38.5 million in write-offs. -- The television equipment that was purchased for US$36.6 million is now worth US$4.9 million according to HCU's advisor and accordingly resulted in a write-off of US$31.7 million. -- There were unrecorded loan amounts totaling US$45.8 million, related to mortgages and interest payable on loans which significantly increased overall liabilities. -- Unrecorded liabilities of US$10.6 million related to pension plan expenses, taxes owed to the NIB and the BIR, bounced cherub reversals, rent payables and other expenses increased the overall shortfall. Meanwhile, when asked whether Government would bail out HCU, Labour and Cooperatives Minister Rennie Dumas was cited by Newsday as saying: "It's a premature consideration." Headquartered in Borough, Chaguanas, in Trinidad and Tobago, Hindu Credit Union Co-Operative Society Limited -- http://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 ================= BANCO DE VENEZUELA: Moody's Reviews B3 Currency Rating for Upgrade ------------------------------------------------------------------ Moody's Investors Service placed on review for possible upgrade the B3 foreign currency deposit rating assigned to Mercantil C.A., Banco Universal and Banco de Venezuela, S.A. This action is the direct result of Moody's decision to place on review for possible upgrade Venezuela's B3 country ceiling for foreign currency deposits. The bank financial strength ratings and global local currency deposit ratings of both banks are not subject to this review. Banco de Venezuela, S.A.: -- Foreign currency deposit rating of B3: On review for possible upgrade MERCANTIL CA: Moody's Puts B3 Rating on Review for Likely Upgrade ----------------------------------------------------------------- Moody's Investors Service placed on review for possible upgrade the B3 foreign currency deposit rating assigned to Mercantil C.A., Banco Universal and Banco de Venezuela, S.A. This action is the direct result of Moody's decision to place on review for possible upgrade Venezuela's B3 country ceiling for foreign currency deposits. The bank financial strength ratings and global local currency deposit ratings of both banks are not subject to this review. Mercantil C.A. Banco Universal: -- Foreign currency deposit rating of B3: On review for possible upgrade PETROLEOS DE VENEZUELA: Inks 8 Natural Gas Project Agreements ------------------------------------------------------------- Petroleos de Venezuela SA has signed agreements with private companies from more than a half-dozen countries to develop offshore natural gas deposits, The Associated Press reports. The state oil company will launch the project with U.S.-based Chevron Corp., Russia's Gazprom, Italy's Eni SpA, Portugal's GALP Energia, Qatar Petroleum, Malasyia's Petronas, Argentina's Enarsa, and the Japanese companies Mitsui, Mitsubishi and Itochu Corp. According to the report, Energy Minister Rafael Ramirez said expected joint investment over the next eight years will hit some US$19.6 billion. Separately, PDVSA disclosed in a statement cited by El Universal that a collision between a tugboat and a tanker docked in a port located in the Eastern part of Venezuela injured at least three workers. The petroleum company said there was no environmental damage and that "operations are normal." Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * 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. PETROLEOS DE VENEZUELA: Moody's Holds B1 Currency Issuer Ratings ---------------------------------------------------------------- Moody's Investors Service affirmed Petroleos de Venezuela SA's B1 global local currency issuer rating in conjunction with the rating agency's review for upgrade of Venezuela's B1 foreign currency bond ceiling and the government's B2 foreign currency bond rating. Essentially, the company's global local currency issuer rating will not be affected by the sovereign review. Petroleos de Venezuela's rating is derived from its baseline credit assessment of 14 (comparable to B1), which remains unchanged. While PDVSA has the hydrocarbon resources and financial profile of a much higher-rated entity, the baseline credit assessment reflects the view that the government's control over and close linkage to the company make any distinction between the government or Petroleos de Venezuela largely moot. Consequently, in applying the government-related issuer methodology, Petroleos de Venezuela's global local currency issuer rating derives no uplift despite a high level of imputed support from the government as a support provider, since the level of dependence is also high and the government's B1 local currency bond rating is not under review for upgrade. Headquartered in Caracas, 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. * VENEZUELA: May Lose US$225 Mil. Investments on Lehman Notes ------------------------------------------------------------- According to El Universal, the Venezuelan government stands to lose US$225,000,000 on investments in Lehman Brothers Holdings Inc. securities. The notes Venezuela acquired for US$300,000,000 may be worth only US$75,000,000 now, El Universal said. The daily continued that Venezuela may decide to wait until the notes expire in 2009/2010 in the hopes that will produce a higher return, rather than selling the bonds now. Venezuela's Finance Minister Ali Rodriguez said that "the effect of the U.S. banking crisis on Venezuela seemed limited, but the ministry was evaluating the situation," El Universal reported. However, Mr. Rodriguez declined to comment on the report, Bloomberg News said. Two private banks in Venezuela also have investments of up to US$400,000,000 in notes from Lehman Brothers, according to El Universal. Venezuelan President Hugo Chavez gloated over Lehman Brothers' collapse after the bank's criticism of Venezuelan economy. "They were always producing negative reports about Venezuela. They forgot about themselves. . . and 'boom!' they were bankrupt," Reuters quoted Mr. Chavez as saying. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America, including Argentina, Brazil, Mexico, Puerto Rico and Uruguay, and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on May 9, 2008, Fitch Ratings assigned 'BB-' long-term foreign currency issuer default ratings to the Bolivarian Republic of Venezuela's international bond combined offer -- 15-year, US$2 billion Eurobond (9% coupon) and 20-year, US$2 billion Eurobond (9.25% coupon). The ratings are in line with Venezuela's foreign currency issuer default rating. The rating outlook is negative. * VENEZUELA: Moody's Reviews Low-B Currency Ratings for Upgrade --------------------------------------------------------------- Moody's Investors Service has placed Venezuela's foreign currency ratings on review for possible upgrade. The review takes into account the steady improvement in government and external debt indicators during recent years and a good payments track record that may warrant higher credit ratings in spite of the ongoing global financial turmoil. "Venezuela's debt indicators have reported clear and sustained reductions in recent years," said Moody's Vice President and Senior Analyst Gabriel Torres. "But because political concerns have constrained the rating in the past, our review will consider whether the internal political volatility is less likely to impact debt payments than suggested by the current ratings structure." Mr. Torres said the review will also examine how the authorities are handling the recent drop in oil prices, a crucial factor in Venezuela's economy and government finances. The review covers Venezuela's B1 country ceiling for foreign- currency bonds and B3 country ceiling for foreign currency deposits, as well as the government's B2 rating for foreign currency debt. The outlook remains stable for the government's B1 local currency debt rating, the country's Baa1 local-currency deposit ceiling, and the A3 local-currency bond ceiling. "High oil prices have bolstered government finances and increased the government's stock of financial assets, which can act as a cushion in the event that revenues register a sustained decline," said Mr. Torres. "The lack of detailed public information on financial assets and concerns about the political ramifications of forced reductions in spending if oil prices continue to fall are less of a concern, since they are already incorporated in the low rating and would still be consistent with a slightly higher rating in the B range." Mr. Torres added, "Ratings are always the result of balancing both positive and negative factors. In Venezuela's case, these rating cross-currents are particularly strong, with weak institutions and macro imbalances, as indicated by high inflation and supply problems, being offset in part by high oil revenues and accumulated foreign exchange assets." The analyst explained that Moody's considers countries in the B category as exhibiting such significant political, economic or financial weaknesses that a single large shock can result in a default. Given Venezuela's relative lack of economic diversification and its noisy political environment, its susceptibility to event risk is assessed as "high" in Moody's sovereign bond methodology. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Equity Assets Company Ticker (US$MM) (US$MM) ------- ------ ------------ ------- NOVA AMERICA SA 1NOVON BZ (214.53) 24.63 NOVA AMERICA-PRF 1NOVPN BZ (214.53) 24.63 IMPSAT FIBER NET 330902Q GR (17.16) 535.01 TELECOMUNICA-ADR 81370Z BZ (113.99) 143.31 ARTHUR LANGE SA ALICON BZ (13.92) 19.52 ARTHUR LANGE-PRF ALICPN BZ (13.92) 19.52 ARTHUR LANG-RT C ARLA1 BZ (13.92) 19.52 ARTHUR LANG-RC P ARLA10 BZ (13.92) 19.52 ARTHUR LAN-DVD C ARLA11 BZ (13.92) 19.52 ARTHUR LAN-DVD P ARLA12 BZ (13.92) 19.52 ARTHUR LANG-RT P ARLA2 BZ (13.92) 19.52 ARTHUR LANGE ARLA3 BZ (13.92) 19.52 ARTHUR LANGE-PRF ARLA4 BZ (13.92) 19.52 ARTHUR LANG-RC C ARLA9 BZ (13.92) 19.52 BOMBRIL BMBBF US (298.16) 278.65 BOMBRIL SA-ADR BMBBY US (298.16) 278.65 BOMBRIL SA-ADR BMBPY US (298.16) 278.65 BOMBRIL-RIGHTS BOBR1 BZ (298.16) 278.65 BOMBRIL-RGTS PRE BOBR2 BZ (298.16) 278.65 BOMBRIL BOBR3 BZ (298.16) 278.65 BOMBRIL-PREF BOBR4 BZ (298.16) 278.65 BOMBRIL CIRIO SA BOBRON BZ (298.16) 278.65 BOMBRIL CIRIO-PF BOBRPN BZ (298.16) 278.65 SOC COMERCIAL PL CAD IX (247.09) 139.57 SOC COMERCIAL PL CADN SW (247.09) 139.57 CAF BRASILIA CAFE3 BZ (543.59) 23.23 CAF BRASILIA-PRF CAFE4 BZ (543.59) 23.23 CONST A LINDEN CALI3 BZ (6.39) 34.39 CONST A LIND-PRF CALI4 BZ (6.39) 34.39 CAMBUCI SA CAMB3 BZ (27.32) 103.40 CAMBUCI SA-PREF CAMB4 BZ (27.32) 103.40 CAMBUCI SA CAMBON BZ (27.32) 103.40 CAMBUCI SA-PREF CAMBPN BZ (27.32) 103.40 COBRASMA CBMA3 BZ (1,686.13) 12.3 COBRASMA-PREF CBMA4 BZ (1,686.13) 12.3 TELEBRAS-PF RCPT CBRZF US (113.99) 143.30 CHIARELLI SA CCHI3 BZ (42.01) 25.67 CHIARELLI SA-PRF CCHI4 BZ (42.01) 25.67 CHIARELLI SA CCHON BZ (42.01) 25.67 CHIARELLI SA-PRF CCHPN BZ (42.01) 25.67 COBRASMA SA COBRON BZ (1,686.13) 12.30 COBRASMA SA-PREF COBRPN BZ (1,686.13) 12.30 SOC COMERCIAL PL COME AR (247.09) 139.57 COMERCIAL PLA-BL COMEB AR (247.09) 139.57 COMERCIAL PL-C/E COMEC AR (247.09) 139.57 COMERCIAL PLAT-$ COMED AR (247.09) 139.57 CAFE BRASILIA SA CSBRON BZ (543.6) 23.23 CAFE BRASILIA-PR CSBRPN BZ (543.6) 23.23 SOC COMERCIAL PL CVVIF US (247.09) 139.57 DOCAS SA-RTS PRF DOCA2 BZ (4.51) 120.81 DOCA INVESTIMENT DOCA3 BZ (4.51) 120.81 DOCA INVESTI-PFD DOCA4 BZ (4.51) 120.81 DOCAS SA DOCAON BZ (4.51) 120.81 DOCAS SA-PREF DOCAPN BZ (4.51) 120.81 ESTRELA SA ESTR3 BZ (49.41) 71.22 ESTRELA SA-PREF ESTR4 BZ (49.41) 71.22 ESTRELA SA ESTRON BZ (49.41) 71.22 ESTRELA SA-PREF ESTRPN BZ (49.41) 71.22 FABRICA RENAUX FRNXON BZ (29.96) 79.56 FABRICA RENAUX-P FRNXPN BZ (29.96) 79.56 FABRICA TECID-RT FTRX1 BZ (29.96) 79.56 FABRICA RENAUX FTRX3 BZ (29.96) 79.56 FABRICA RENAUX-P FTRX4 BZ (29.96) 79.56 TECEL S JOSE FTSJON BZ (22.07) 46.95 TECEL S JOSE-PRF FTSJPN BZ (22.07) 46.95 CIMOB PARTIC SA GAFON BZ (32.26) 53.11 CIMOB PARTIC SA GAFP3 BZ (32.26) 53.11 CIMOB PART-PREF GAFP4 BZ (32.26) 53.11 CIMOB PART-PREF GAFPN BZ (32.26) 53.11 GAZOLA-RCPT PREF GAZO10 BZ (27.59) 9.36 GAZOLA SA-DVD CM GAZO11 BZ (27.59) 9.36 GAZOLA SA-DVD PF GAZO12 BZ (27.59) 9.36 GAZOLA GAZO3 BZ (27.59) 9.36 GAZOLA-PREF GAZO4 BZ (27.59) 9.36 GAZOLA-RCPTS CMN GAZO9 BZ (27.59) 9.36 GAZOLA SA GAZON BZ (27.59) 9.36 GAZOLA SA-PREF GAZPN BZ (27.59) 9.36 HAGA HAGA3 BZ (69.83) 14.18 FER HAGA-PREF HAGA4 BZ (69.83) 14.18 FERRAGENS HAGA HAGAON BZ (69.83) 14.18 FERRAGENS HAGA-P HAGAPN BZ (69.83) 14.18 HERCULES SA HERTON BZ (157.23) 27.94 HERCULES SA-PREF HERTPN BZ (157.23) 27.94 HERCULES HETA3 BZ (157.23) 27.94 HERCULES-PREF HETA4 BZ (157.23) 27.94 DOC IMBITUBA-RTC IMBI1 BZ (15.70) 170.83 DOC IMBITUBA-RTP IMBI2 BZ (15.70) 170.83 DOC IMBITUBA IMBI3 BZ (15.70) 170.83 DOC IMBITUB-PREF IMBI4 BZ (15.70) 170.83 DOCAS IMBITUBA IMBION BZ (15.70) 170.83 DOCAS IMBITUB-PR IMBIPN BZ (15.70) 170.83 IMPSAT FIBER-CED IMPT AR (17.17) 535.01 IMPSAT FIBER-BLK IMPTB AR (17.17) 535.01 IMPSAT FIBER-C/E IMPTC AR (17.17) 535.01 IMPSAT FIBER-$US IMPTD AR (17.17) 535.01 IMPSAT FIBER NET IMPTQ US (17.17) 535.01 CONST A LINDEN LINDON BZ (6.39) 34.39 CONST A LIND-PRF LINDPN BZ (6.39) 34.39 MINUPAR MNPR3 BZ (19.11) 106.54 MINUPAR-PREF MNPR4 BZ (19.11) 106.54 MINUPAR SA MNPRON BZ (19.11) 106.54 MINUPAR SA-PREF MNPRPN BZ (19.11) 106.54 WETZEL SA MWELON BZ (8.62) 88.58 WETZEL SA-PREF MWELPN BZ (8.62) 88.58 WETZEL SA MWET3 BZ (8.62) 88.58 WETZEL SA-PREF MWET4 BZ (8.62) 88.58 NOVA AMERICA SA NOVA3 BZ (214.53) 24.62 NOVA AMERICA-PRF NOVA4 BZ (214.53) 24.62 NOVA AMERICA SA NOVAON BZ (214.53) 24.62 NOVA AMERICA-PRF NOVAPN BZ (214.53) 24.62 TELEBRAS-CEDE BL RCT4B AR (113.99) 143.31 TELEBRAS-CED C/E RCT4C AR (113.99) 143.31 TELEBRAS-CEDEA $ RCT4D AR (113.99) 143.31 TELEBRAS-RTS CMN RCTB1 BZ (113.99) 143.31 TELEBRAS-RTS PRF RCTB2 BZ (113.99) 143.31 TELEBRAS-CM RCPT RCTB30 BZ (113.99) 143.31 TELEBRAS-CM RCPT RCTB31 BZ (113.99) 143.31 TELEBRAS-CM RCPT RCTB32 BZ (113.99) 143.31 TELEBRAS-RCT RCTB33 BZ (113.99) 143.31 TELEBRAS-CEDE PF RCTB4 AR (113.99) 143.31 TELEBRAS-PF RCPT RCTB40 BZ (113.99) 143.31 TELEBRAS-PF RCPT RCTB41 BZ (113.99) 143.31 TELEBRAS-PF RCPT RCTB42 BZ (113.99) 143.31 TEXTEIS RENAUX RENXON BZ (79.9) 53.28 TEXTEIS RENAUX RENXPN BZ (79.9) 53.28 TELEBRAS-ADR RTB US (113.99) 143.31 SOC COMERCIAL PL SCDPF US (247.09) 139.57 SCHLOSSER SA SCHON BZ (55.96) 28.65 SCHLOSSER SA-PRF SCHPN BZ (55.96) 28.65 SCHLOSSER SCLO3 BZ (55.96) 28.65 SCHLOSSER-PREF SCLO4 BZ (55.96) 28.65 COMERCIAL PL-ADR SCPDS LI (247.09) 139.57 TECEL S JOSE SJOS3 BZ (22.07) 46.95 TECEL S JOSE-PRF SJOS4 BZ (22.07) 46.95 SANSUY SNSY3 BZ (35.49) 132.22 SANSUY-PREF A SNSY5 BZ (35.49) 132.22 SANSUY-PREF B SNSY6 BZ (35.49) 132.22 SANSUY SA-PREF A SNSYAN BZ (35.49) 132.22 SANSUY SA-PREF B SNSYBN BZ (35.49) 132.22 SANSUY SA SNSYON BZ (35.49) 132.22 TELEBRAS-PF RCPT TBAPF US (113.99) 143.31 TELEBRAS-ADR TBAPY US (113.99) 143.31 TELEBRAS SA TBASF US (113.99) 143.31 TELEBRAS-ADR TBASY US (113.99) 143.31 TELEBRAS-ADR TBH US (113.99) 143.31 TELEBRAS/W-I-ADR TBH-W US (113.99) 143.31 TELEBRAS-ADR TBRAY GR (113.99) 143.3 TELEBRAS-CM RCPT TBRTF US (113.99) 143.3 TELEBRAS-ADR TBX GR (113.99) 143.3 TELEBRAS-RTS CMN TCLP1 BZ (113.99) 143.31 TEKA TEKA3 BZ (257.44) 332.91 TEKA-PREF TEKA4 BZ (257.44) 332.91 TEKA TEKAON BZ (257.44) 332.91 TEKA-PREF TEKAPN BZ (257.44) 332.91 TEKA-ADR TEKAY US (257.44) 332.91 TELEBRAS-CED C/E TEL4C AR (113.99) 143.31 TELEBRAS-CEDEA $ TEL4D AR (113.99) 143.31 TELEBRAS-COM RTS TELB1 BZ (113.99) 143.31 TELEBRAS-RCT PRF TELB10 BZ (113.99) 143.31 TELEBRAS SA TELB3 BZ (113.99) 143.31 TELEBRAS-BLOCK TELB30 BZ (113.99) 143.31 TELEBRAS-CEDE PF TELB4 AR (113.99) 143.31 TELEBRAS SA-PREF TELB4 BZ (113.99) 143.31 TELEBRAS-PF BLCK TELB40 BZ (113.99) 143.31 TELEBRAS-CM RCPT TELE31 BZ (113.99) 143.31 TELEBRAS-PF RCPT TELE41 BZ (113.99) 143.31 TEKA-PREF TKTPF US (257.44) 332.91 TEKA-ADR TKTPY US (257.44) 332.91 TEKA TKTQF US (257.44) 332.91 TEKA-ADR TKTQY US (257.44) 332.91 TELEBRAS SA TLBRON BZ (113.99) 143.31 TELEBRAS SA-PREF TLBRPN BZ (113.99) 143.31 TELEBRAS-RECEIPT TLBRUO BZ (113.99) 143.31 TELEBRAS-PF RCPT TLBRUP BZ (113.99) 143.31 TELEBRAS-RTS PRF TLCP2 BZ (113.99) 143.31 TECTOY-RTS/3 TOYB1 BZ (3.62) 22.57 TECTOY-RCT PREF TOYB10 BZ (3.62) 22.57 TECTOY-PF-RTS5/6 TOYB11 BZ (3.62) 22.57 TECTOY-RCPT PF B TOYB12 BZ (3.62) 22.57 TECTOY-BONUS RTS TOYB13 BZ (3.62) 22.57 TECTOY TOYB3 BZ (3.62) 22.57 TECTOY-PREF TOYB4 BZ (3.62) 22.57 TEC TOY SA-PREF TOYB5 BZ (3.62) 22.57 TEC TOY SA-PF B TOYB6 BZ (3.62) 22.57 TECTOY-RCT ORD TOYB9 BZ (3.62) 22.57 TECTOY SA TOYBON BZ (3.62) 22.57 TECTOY SA-PREF TOYBPN BZ (3.62) 22.57 TEC TOY SA-PREF TOYDF US (3.62) 22.57 TEXTEIS RENAUX TXRX3 BZ (79.9) 53.28 TEXTEIS RENAU-PF TXRX4 BZ (79.9) 53.28 VARIG SA VAGV3 BZ (4,523.46) 823.49 VARIG SA-PREF VAGV4 BZ (4,523.46) 823.49 VARIG SA VARGON BZ (4,523.46) 823.49 VARIG SA-PREF VARGPN BZ (4,523.46) 823.49 WIEST WISA3 BZ (66.01) 33.42 WIEST-PREF WISA4 BZ (66.01) 33.42 WIEST SA WISAON BZ (66.01) 33.42 WIEST SA-PREF WISAPN BZ (66.01) 33.42 IMPSAT FIBER NET XIMPT SM (17.16) 535.01 *********** 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 * * *