/raid1/www/Hosts/bankrupt/TCRLA_Public/081210.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, December 10, 2008, Vol. 9, No. 245
Headlines
A R G E N T I N A
FIDEICOMISO FINANCIERO: Moody's Puts Junk Ratings on Class B Debt
TEKNI-PLEX INC: Internal Investigation Cues Delay in 10-Q Filing
TEKNI-PLEX INC: Gets Lenders' Funding Commitment on Business Plans
B A R B A D O S
FORD MOTOR: Seeks to Extricate Itself From Rivals' Woes
FORD MOTOR: September 30 Balance Sheet Upside-Down by US$2 Billion
FORD MOTOR: Names Jost Capito as Global Performance Director
GENERAL MOTORS: Gov't & UAW May Get Stake in Firm
GENERAL MOTORS: International Operations Still Profitable
B R A Z I L
AMERICA LATINA: Fitch Affirms 'B+' IDRs & Positive Outlook
CVRD: Reduces Pellet Production
GERDAU AMERISTEEL: To Lay Off Mill Workers on Low Demand
LOGISTICA SA: Fitch Affirms 'B+' Rating with Positive Outlook
* CVRD: Two Chinese Units Get Sued for Patent Infringement
C A Y M A N I S L A N D S
ATTANSIC TECHNOLOGY: Creditors' Proofs of Debt Due on December 29
BARNET PARTNERS: Creditors' Proofs of Debt Due on December 24
BLACK ARROW: Creditors' Proofs of Debt Due on December 8
BLUE FUND: Creditors' Proofs of Debt Due on December 29
BRC MARKET: Commences Liquidation Proceedings
BUTTONWOOD CAPITAL: Creditors' Proofs of Debt Due on December 29
BUTTONWOOD FOCUS: Creditors' Proofs of Debt Due on December 29
CAYMAN ISLANDS: Creditors' Proofs of Debt Due on December 15
CL INTERNATIONAL: Sole Shareholder to Hold Meeting on Jan. 8
CL INTERNATIONAL: Creditors' Proofs of Debt Due on December 24
CYPRESS LATE: Creditors' Proofs of Debt Due on December 26
DELPHIC CAPITAL: Creditors' Proofs of Debt Due on December 24
JAYHAWK CHINA: Creditors' Proofs of Debt Due on December 29
LYSTER WATSON: Creditors' Proofs of Debt Due on December 24
ODIN CDO: Moody's Downgrades Ratings on Seven Classes of Notes
PALM BEACH: Creditors' Proofs of Debt Due on December 24
PALM BEACH: Creditors' Proofs of Debt Due on December 24
RAINBOW SKYLINE: Creditors' Proofs of Debt Due on December 24
REAL ESTATE: Creditors' Proofs of Debt Due on December 24
SOLA ENERGY: Requires Creditors to File Claims by December 15
SOLA MANHATTAN: Requires Creditors to File Claims by December 15
SOPRANO FUND: Creditors' Proofs of Debt Due on December 24
STRATEGIC CAPITAL: Creditors' Proofs of Debt Due on December 23
WESTERLY GLOBAL: Creditors' Proofs of Debt Due on December 29
WESTERLY GLOBAL: Creditors' Proofs of Debt Due on December 29
E C U A D O R
PETROECUADOR: Jan-Oct. Revenues From Export Up 89% to US$6.03 Bil.
J A M A I C A
* JAMAICA: Small Firms Balk at Gov't for High Interest Rates
* JAMAICA: To Continue Banana Industry Support, Minister Says
M E X I C O
CEMEX SAB: Shares Up on Speculation It May Gain From U.S. Plan
CONSTELLATION COPPER: Wouldn't File 3rd Qtr. Financial Statements
INDUSTRIAS PENOLES: Two Mines Shut After Workers Strike
INNOPHOS HOLDINGS: Earns US$79.6MM for Quarter ended September 30
LIGHTPATH TECH: Posts US$1,024,000 Net Loss in Qtr. Ended Sept. 30
* MEXICO: Risk Changes as Inflation Peaks, Ortiz Says
P U E R T O R I C O
SIMMONS CO: Forbearance Agreement Extended to December 10
X X X X X X
* Morgan Stanley Says LatAm Economy to Suffer Worst Recession
- - - - -
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A R G E N T I N A
=================
FIDEICOMISO FINANCIERO: Moody's Puts Junk Ratings on Class B Debt
-----------------------------------------------------------------
Moody's Latin America has assigned a rating of Aaa.ar (Argentine
National Scale) and of Ba1 (Global Scale, Local Currency) to the
Class A Fixed Rate and Floating Rate Debt Securities of
Fideicomiso Financiero Supervielle Creditos Banex XXV issued by
Deutsche Bank S.A. - acting solely in its capacity as Issuer and
Trustee. This issuance is not an obligation of Deutsche Bank S.A.
and therefore the rating assigned does not reflect the credit
quality of Deutsche Bank S.A.
Moody's also assigned ratings of Caa3.ar (Argentine National
Scale) and Caa3 (Global Scale, Local Currency) to the Class B
Fixed Rate Securities; and ratings of C.ar (Argentine National
Scale) and C (Global Scale, Local Currency) to the subordinated
Certificates.
The assigned ratings are based on these factors:
* The credit quality of the securitized personal loans
* The ability and willingness of ANSES to make monthly pensions
* The ability of Banco Supervielle to act as the servicer of the
pool.
* The ability of Deutsche Bank S.A. to act as trustee in this
transaction
* Initial credit enhancement provided through subordination
* The availability of various reserve accounts, and
* The legal structure of the transaction.
The Securitized Pool
The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 23,354 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banex
(now Banco Supervielle), in an aggregate amount of Ar$ 52,000,528.
As of July 11, 2008 those loans exhibited delinquencies no higher
than 30 days past due.
These personal loans are granted to pensioners that receive their
monthly pensions from ANSES (Argentina's National Governmental
Agency of Social Security - Administracion Nacional de la
Seguridad Social). Banco Supervielle is the payment agent for
this government entity and deducts the monthly loan installment
directly from the borrower's paycheck. The pool is also
constituted by loans granted to government employees of the
Province of San Luis.
Moody's considered the risk that a disruption in the flow of
payments from ANSES to pensioners could severely affect the
performance of the pool. Moody's believes that the ratings
assigned are consistent with this risk.
Structure
Deutsche Bank S.A. (Issuer and Trustee) issued three classes of
Debt Securities (Class A Fixed Rate Securities, Floating Rate
Securities and Class B Fixed Rate Securities) and one class of
Certificates, all denominated in Argentine pesos.
The Fixed Rate Debt Securities will bear a fixed interest rate of
23%. The Floating Rate Debt Securities will bear a BADLAR
interest rate plus 500 basis points. The Floating Rate Debt
Securities' interest rate will never be higher than 29% or lower
than 16%. Overall credit enhancement is comprised of
subordination, various reserve funds and excess spread.
Rating Action
Originator: Banco Banex S.A. (now Banco Supervielle S.A.)
-- Ar$ 26,520,000 in Class A Fixed Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos Banex XXV",
rated Aaa.ar (Argentine National Scale) and Ba1 (Global
Scale, Local Currency)
-- Ar$ 17,680,000 in Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos Banex XXV",
rated Aaa.ar (Argentine National Scale) and Ba1 (Global
Scale, Local Currency)
-- Ar$ 5,200,000 in Class B Fixed Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos Banex XXV",
rated Caa3.ar (Argentine National Scale) and Caa3 (Global
Scale, Local Currency)
-- Ar$ 2,600,000 in Certificates of "Fideicomiso Financiero
Supervielle Creditos Banex XXV", rated C.ar (Argentine
National Scale) and C (Global Scale, Local Currency)
TEKNI-PLEX INC: Internal Investigation Cues Delay in 10-Q Filing
----------------------------------------------------------------
Tekni-Plex, Inc., disclosed in a regulatory filing with the
Securities and Exchange Commission that it will not be able to
file its financial report for period ended Sept. 26, 2008, by the
prescribed due date. The board of directors is still in the
process of conducting their internal investigation on the
company's financial records.
On June 27, 2008, Tekni-Plex disclosed that it had initiated an
internal investigation regarding the company's financial records.
The company's board of directors relates that the investigation is
not yet complete and the company cannot predict whether the
investigation will conclude that adjustments to financial
statements for any period covered by the report are necessary. To
the extent that these adjustments are determined to be necessary,
the adjustments could be material.
The company intends to file the Form 10-Q soon as reasonably
practicable after the board's investigation of the relevant issues
has concluded.
About Tekni-Plex Inc.
Based in Coppell, Texas, Tekni-Plex Inc. -- http://www.tekni-
plex.com/ -- manufactures packaging, packaging products and
materials as well as tubing products. The company primarily
serves the food, healthcare and consumer markets. It has built
leadership positions in its core markets, and focuses on
vertically integrated production of highly specialized products.
Tekni-Plex has operations in the United States, Europe, China,
Argentina and Canada.
TEKNI-PLEX INC: Gets Lenders' Funding Commitment on Business Plans
------------------------------------------------------------------
Tekni-Plex, Inc., entered into a series of agreements that
management believes will provide the company with sufficient
liquidity to execute its business plan for the fiscal year 2009.
On Nov. 14, 2008, the company entered into a second amendment and
restatement of its Credit Agreement, dated as of June 10, 2005,
among the company, the lenders and issuers party thereto, Citicorp
USA, Inc., as Administrative Agent, and General Electric Capital
Corporation, as Syndication Agent. The Second Amended and
Restated Credit Agreement is an asset based, revolving credit
facility in the maximum amount of US$110 million.
The amendment also, among other things,
i) extends the scheduled maturity date by two years to
February 2012;
ii) for fiscal year 2008 and fiscal year 2009, allows the
company until Dec. 31, 2009, to deliver audited financial
statements for those fiscal year ends;
iii) permits the company and its subsidiaries to enter into
affiliate transactions and incur additional indebtedness;
iv) modifies the borrowing base to provide for increased
availability;
v) modifies the pricing of the facility;
vi) permits unlimited intercompany loans by foreign subsidiaries
to loan parties; and
vii) modifies the covenant requiring the company to maintain a
minimum level of EBITDA. Except the ones mentioned, the
material terms of the facility are substantially unchanged.
The company also entered into on Nov. 14, 2008, a Junior Lien
Credit Agreement with OCM Tekni-Plex Holdings II, L.P., an
affiliate of OCM Tekni-Plex Holdings, L.P., the largest holder of
the company's common stock.
The Junior Lien Credit Agreement provides for a five year term
loan in the amount of US$15,000,000, which is guaranteed by the
company's domestic subsidiaries and secured, on a junior basis, by
the collateral pledged in connection with the Second Amended and
Restated Credit Agreement. The obligations outstanding are
repayable at maturity and interest accrues at a rate of 15%
payable quarterly in arrears, with 10.0% payable in cash and the
remaining 5% payable-in-kind. The Junior Lien Credit Agreement,
and the rights and obligations thereunder, are subject to an
Intercreditor Agreement, dated as of Nov. 14, 2008, among the
company, the Senior Administrative Agent and OCM Tekni-Plex
Holdings II, L.P.
On Nov. 14, 2008, Tekni-Plex Europe NV, an indirect subsidiary of
the company incorporated under the laws of Belgium, entered into a
Term Loan Agreement with OCM Luxembourg Tekni-Plex Holdings
S.a.r.l. The TPE Loan Agreement provides for a five year
unsecured term loan in the amount of EUR26,361,347.18 repayable at
maturity, with interest accrued on a semi-annual basis at a rate
of 15%. The TPE Loan Agreement was entered into to, among other
things, refinance outstanding indebtedness and the remaining
proceeds have been lent to the company pursuant to an intercompany
loan to be used by the company to pay expenses in connection with
this transaction and for working capital and general corporate
purposes.
Accounting Errors and Irregularities
In June 2008, the company disclosed that its board of directors
initiated an internal investigation into allegations by a current
employee that, for the fiscal years ending 2000 to 2006, the
company may have incorrectly recorded certain inventory and
accounts receivables in the Colorite Plastics Company, a division
of the company. The board subsequently expanded the scope of the
investigation beyond the Colorite division to determine whether
any improper accounting practices occurred in other divisions of
the company. Information gathered to date in the course of the
investigation indicates that the company's issued financial
statements for the fiscal years ending 2000-2007 contain certain
accounting errors and irregularities. Although not all relevant
facts are known at this time and the investigation is continuing,
and although the company cannot estimate at this time when the
investigation will conclude, after reviewing the information
gathered in the investigation to date, the board determined on
Nov. 10, 2008, that the financial statements issued or filed by
the company relating to the mentioned prior fiscal periods, and
relating to the fiscal periods ending on Sept. 28, 2007, Dec. 28,
2007, and March 28, 2008, to the extent they rely on financial
statements for prior periods, must not be relied upon. The board
has discussed these matters with BDO Seidman, LLP, the company's
independent registered public accounting firm.
OCM Tekni-Plex Holdings II, L.P. and OCM Luxembourg Tekni-Plex
Holdings S.a.r.l. are investment funds managed by Oaktree Capital
Management, LP.
About Tekni-Plex Inc.
Based in Coppell, Texas, Tekni-Plex Inc. -- http://www.tekni-
plex.com/ -- manufactures packaging, packaging products and
materials as well as tubing products. The company primarily
serves the food, healthcare and consumer markets. It has built
leadership positions in its core markets, and focuses on
vertically integrated production of highly specialized products.
Tekni-Plex has operations in the United States, Europe, China,
Argentina and Canada.
===============
B A R B A D O S
===============
FORD MOTOR: Seeks to Extricate Itself From Rivals' Woes
-------------------------------------------------------
Sharon Terlep at Dow Jones Newswires reports that Ford Motor Co.
is making efforts to differentiate itself from General Motors
Corp. and Chrysler LLC, as the U.S. automakers seek government
financial assistance.
According to Dow Jones, Ford Motor said that it has sufficient
cash to survive an economic downturn that made it hard for
companies to access credit and led to declines in auto sales. The
report says that Ford Motor is asking for a US$9 billion backup
line of credit in case conditions deteriorate even more than
anticipated.
Dow Jones quoted Ford Motor spokesperson Mark Truby as saying, "We
think it's important for people to understand that the Ford story
is different -- in terms of liquidity, in terms of the quality,
safety and fuel economy of our vehicles and the progress we have
made reducing our brands and merging our global operations. The
Detroit Three are not one company."
Dow Jones relates that Sen. Christopher Dodd said in CBS's Face
the Nation program on Sunday, "Ford is fairly healthy, so we don't
want to brand all of these companies exactly the same way."
Sen. Dodd suggested that GM CEO Rick Wagoner "move on," says Dow
Jones. The senator, according to the report, also supported a
merger of GM and Chrysler.
Dow Jones states that the US$15 billion loan package that would
deliver help by Dec. 15 would be less than the US$34 billion the
automakers requested, but would come before year-end.
The Bailout Plan Draft
According to WSJ, a legislative draft for financial assistance to
GM, Ford Motor Co., and Chrysler LLC states that the government
would get equity warrants equal to 20% of the US$15 billion
emergency loans. The draft was already sent to the White House,
says WSJ. The draft indicated that the provision would allow
taxpayers to benefit if shares in the three companies were to
appreciate, serving as protection of public funds being used to
help out the companies, WSJ relates. The taxpayer, states the
report, would be repaid first once the companies' financial
fortunes turn around.
WSJ relates that the loans would come from a US$25 billion program
that the Congress created in 2007 to lend money to the car makers
to let them invest in cleaner technology.
According to WSJ, the White House would appoint a "car czar" -- an
individual with executive experience -- to oversee the loan
program. That officer, says the report, would monitor executive
compensation. The report states that under the proposed loan
program, these could be taken out:
-- bonuses to the top 25 senior workers at each of the
companies,
-- golden parachutes for senior employees leaving the
companies, and
-- dividends for investors in the three companies while
money is owed to the taxpayer.
WSJ relates that the loans would mature in seven years, with a 5%
interest rate charged for the first five years, and 9% charged
thereafter.
The president could also appoint additional advisers, who would
establish appropriate procedures to guarantee that the plans
submitted to Congress by Ford Motor, GM, and Chrysler form a
viable long-term restructuring plan, WSJ reports. Progress of the
restructuring would be reviewed within 45 days and the three
automakers must have a long-term restructuring program by the end
of the first quarter of 2009.
Citing a White House official, WSJ reports that the George W. Bush
administration had concerns with aspects of the draft for the
bailout.
Corey Boles at WSJ reports that additional oversight of GM, Ford
Motor, and Chrysler would be undertaken by the General
Accountability Office, the Congress' investigative arm. The
report says that the three automakers would be required to open
their books to the GAO and any other information that the agency
required, and a special inspector general would be appointed to
conduct more supervision of the companies.
According to WSJ, the car czar would review any investment
decisions that exceed US$25 million. The companies, says WSJ,
would have to withdraw from participation in lawsuits challenging
proposed state laws on emissions standards. Ford Motor, Chrysler,
and GM are involved in those legal challenges, the report states.
WSJ says that GM, Ford Motor, and Chrysler would be compelled to
divest any corporate aircraft they own or lease. WSJ relates that
the companies must conduct a study on using any excess capacity at
their factories to make vehicles to sell to public transit
authorities.
Some lawmakers suggested over the weekend that the CEOs of the
three automakers resign, but that wasn't mentioned in the draft
legislation, WSJ reports.
According to WSJ, Sen. Robert Corker opposed the bill, claiming
that it lacked "teeth," while other senators including Rep. Barney
Frank, the lead negotiator for House Democrats on the bill, said
he was confident a final agreement could be reached.
UAW Wants Seat on GM's Board
WSJ relates that Marc McQuillen, president of UAW Local 2404 in
Charlotte, said that the union wants an equity stake in at least
GM and likely a seat on the company's board, in return for
modifying terms of a health-care agreement and suspending the Jobs
Bank to help the automakers secure loans from the government.
Changes to the UAW contract would have to take place by March 31,
2009, says the report.
UAW's top GM bargaining official, Cal Rapson, told leaders earlier
this month that a Special Attrition Package program would be
offered next year, WSJ states, citing Mr. McQuillen. According to
the report, that program would be implemented if the government
approves some of the bailout money for buying workers out.
Democrats Propose Car Czar
Bankruptcy Law360 reports that Democrats in Congress sent a draft
proposal of a US$15 billion bridge loan for General Motors Corp.,
Ford Motor Co. and Chrysler LLP to the White House for review
Monday. The proposal, the report says, includes the appointment
of a "car czar" to oversee restructuring of the auto industry.
American Bankruptcy Institute says a comprehensive bailout for the
Detroit 3 could cost as much as US$125 billion, and even the
companies themselves are hard pressed to dispute that figure.
ABI also relates that a GM Restructuring is likely to be painful
even if it receives a federal bailout. According to ABI, the
federal oversight likely to be implemented will hit its investors,
creditors, dealers and workers almost as hard as if GM had filed
for bankruptcy protection.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents. With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda. The company provides
financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region. In
Europe, the company maintains a presence in Sweden, and the United
Kingdom. The company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3. The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative. In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.
As reported in the Troubled Company Reporter on Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.
FORD MOTOR: September 30 Balance Sheet Upside-Down by US$2 Billion
------------------------------------------------------------------
Ford Motor Company's balance sheet data at Sept. 30, 2008, showed
total assets of US$242.0 billion and total liabilities of
US$244.0 billion and a stockholders' deficit of abou tUS$2
billion.
Ford Motor reported net loss of US$129 million for the third
quarter of 2008 compared to net loss of US$380 for the third
quarter of 2007.
Ford Motor's third quarter pre-tax operating loss from continuing
operations, excluding special items, was US$2.7 billion, down from
a US$194 million profit a year ago.
Ford Motor's third quarter revenue was US$32.1 billion, down from
US$41.1 billion a year ago. The decline reflects lower volume,
the sale of Jaguar Land Rover, changing product mix and lower net
pricing, partly offset by favorable changes in currency exchange
rates.
For the nine months ended Sept. 30, 2008, the company reported net
loss of US$8.6 billion compared with net income of US$88 million
for the same period in the previous year.
Liquidity and Capital Resources
Debt and Net Cash
At Sept. 30, 2008, the company's Automotive sector had total debt
of US$26.1 billion, compared with US$27 billion at Dec. 31, 2007.
At Sept. 30, 2008, its Automotive sector had negative net cash of
about US$7.2 billion, compared with positive net cash of
US$7.6 billion at the end of 2007. The US$14.8 billion reduction
in net cash reflects a US$15.7 billion reduction in gross cash,
offset partially by about US$900 million in lower debt.
Credit Facilities
At Sept. 30, 2008, the company has US$12.3 billion of
contractually- committed credit facilities with financial
institutions, including US$11.5 billion pursuant to a senior
secured credit facility established in December 2006 and about
US$800 million of Automotive unsecured credit facilities.
Automotive gross cash, including cash and cash equivalents, net
marketable securities and loaned securities, was US$18.9 billion
on Sept. 30, down from US$26.6 billion at the end of the second
quarter. The decrease reflects Automotive pre-tax operating
losses, changes in working capital and other timing differences,
and upfront subvention payments to Ford Credit.
Ford Motor's Automotive cash flow during the third quarter was
significantly affected by a number of unique factors during the
quarter, including the decision to reduce truck production to
allow for an orderly sell-down of dealer inventories to make way
for new models. Overall, Ford Motor's third quarter production
levels were more than 100,000 units below retail sales and nearly
500,000 units below the second quarter levels. This had a
substantial impact on profits, and the decline in production
resulted in about a US$3 billion reduction in payables during the
quarter.
The company also disclosed additional actions to reduce costs and
improve Automotive gross cash to enable Ford Motor to continue to
implement its product-led transformation plan despite the
continued weakness in the worldwide automotive market and economic
environment.
Improvement actions include: an additional 10% reduction in North
American salaried personnel-related costs; a reduction in capital
spending enabled by efficiencies in Ford Motor's worldwide
engineering and product development; a reduction in manufacturing,
information technology, and advertising costs due to the company's
"One Ford" worldwide operations; and a reduction of inventories.
Ford also said it would continue to explore divestitures of non-
core assets and utilize equity-for-debt swaps and other
incremental sources of financing to strengthen the company's
balance sheet.
At the same time, Ford reiterated its continued investment in the
smaller, more fuel-efficient, high-quality products that will
result in a more balanced portfolio. Ford Motor confirmed that
nearly all planned product programs remain on track and on time --
aside from a few select vehicles that will be deferred until
industry volumes recover. Ford Motor will, however, reduce
spending for large vehicles in declining segments.
In addition, Ford Motor said it will continue working with a
number of governments around the world to maximize the
availability of funding to provide further protection against the
uncertain economic environment that the entire automotive industry
is facing.
A full-text copy of the 10-Q filing is available for free at
http://ResearchArchives.com/t/s?35dd
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents. With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda. The company provides
financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region. In
Europe, the company maintains a presence in Sweden, and the United
Kingdom. The company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3. The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative. In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.
As reported in the Troubled Company Reporter on Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.
FORD MOTOR: Names Jost Capito as Global Performance Director
------------------------------------------------------------
Ford Motor Company has appointed Jost Capito to the newly-created
position of Global Performance Vehicles and Motorsport Business
Development Director. Mr. Capito will take up his new position in
January 2009.
In his new role, Mr. Capito will be responsible for the global
development of Ford Motor's performance vehicles business. The
North American SVT and European TeamRS performance vehicle
organizations will come together, both reporting to Mr. Capito, to
focus on the development of global performance vehicles, and the
implementation of consistent vehicle attributes and DNA in future
Ford Motor performance models.
Additionally, Mr. Capito will assume responsibility for global
motorsport business strategy and aligning Ford Motor's global
motorsport plans and programs. He will lead the development of
motorsport opportunities for Ford's future global car products
around the world, advising and working closely with the company's
regional Motorsports directors.
Mr. Capito joined Ford of Europe in October 2001 as director of
Special Vehicle Engineering. Between 2003 and 2007, he assumed
responsibility for Ford of Europe's motorsport and performance
vehicle programs, leading the company's successful World Rally
Championship efforts and winning Manufacturers' Championship
titles for the BP Ford Abu Dhabi World Rally team in 2006 and
2007. In November 2007, Capito was appointed Vehicle Line
Director for Ford of Europe's Performance Vehicles, and since then
has led the development of the eagerly-awaited new Focus RS road
car which will be launched in Europe in the first quarter of 2009.
He was also responsible for European Fiesta ST and Focus ST
performance models.
Mr. Capito is 50 years old, and currently lives with his family in
the U.K. In his new position, he will relocate to Ford Motor's
World Headquarters in Dearborn, Michigan.
"Performance vehicles and motorsport have been important to Ford
since the company was founded more than a century ago. With Jost's
immense experience in both areas, performance vehicles and
motorsport, we expect that tradition to continue and be
strengthened within our One Ford strategy," said Hermann
Salenbauch, Director of Advanced Product Creation and Performance
Vehicles, Ford Motor Company.
Obama Says Auto Industry Collapse Unacceptable
Nadine Elsibai at Bloomberg News reports that President-elect
Barack Obama said that allowing the U.S. auto industry to collapse
would be "unacceptable." Reports say that General Motors Corp.,
Ford Motor, and Chrysler have submitted turnaround plans to the
Congress as a requirement for the government financial aid they
are seeking.
"I have said repeatedly that to allow the auto industry in the
United States to collapse precisely at a time that we are seeing
record joblessness is unacceptable. What I've also said is that
it makes no sense for us to shovel more money into the problem if
you have not seen an auto industry that is committed to
restructuring," Bloomberg quoted Mr. Obama as saying.
The Congress is doing the right thing by asking for changes in the
auto industry as a condition for a bailout, The Associated Press
relates, citing Mr. Obama.
According to Bankruptcy Law360, lawyers say a bankruptcy by GM
could top the US$1 billion in legal fees generated by the Enron
collapse. Bankruptcy Law360 also notes that two law professors
who specialize in researching attorneys' fees in bankruptcy
proceedings, said court-awarded fees could reach as high as
US$800 million for GM alone.
Bankruptcy Law360 relates that the costs of bankruptcy for GM,
Ford Motor, and Chrysler have been the subject of speculation
since the companies began making their cases for federal
assistance to avoid seeking Chapter 11.
American Bankruptcy Institute on Friday said the CEOs of General
Motors, Ford and Chrysler returned to Capitol Hill Thursday to
find themselves confronting considerable frustration from
lawmakers and the realization that even their strongest supporters
might not be able to muster the votes for a bailout package.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents. With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda. The company provides
financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region. In
Europe, the company maintains a presence in Sweden, and the United
Kingdom. The company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter on Nov. 11,
2008, Moody's Investors Service lowered the debt ratings of
Ford Motor Company, Corporate Family and Probability of
Default Ratings to Caa1 from B3. The company's Speculative
Grade Liquidity rating remains at SGL-3 and the rating outlook
is negative. In a related action Moody's also lowered the
long-term rating of Ford Motor Credit Company to B3 from B2.
The outlook for Ford Credit is negative.
As reported in the Troubled Company Reporter on Oct. 10, 2008,
Fitch Ratings downgraded the Issuer Default Rating of Ford Motor
Company and Ford Motor Credit Company by one notch to 'CCC' from
'B-'.
GENERAL MOTORS: Gov't & UAW May Get Stake in Firm
-------------------------------------------------
Corey Boles and John D. Stoll at The Wall Street Journal report
that the U.S. government and the United Auto Workers union might
get a stake in General Motors Corp.
WSJ reports that the draft for a US$15 billion loan package for
Chrysler LLC, Ford Motor Co., and General Motors Corp. was already
sent to the White House for consideration. Dow Jones states that
theUS$15 billion loan package that would deliver help by Dec. 15
would be less than theUS$34 billion the automakers requested, but
would come before year-end.
The Bailout Plan Draft
According to WSJ, a legislative draft for financial assistance to
GM, Ford Motor Co., and Chrysler LLC states that the government
would get equity warrants equal to 20% of the US$15 billion in
emergency loans. The draft was already sent to the White House,
says WSJ. The draft indicated that the provision would allow
taxpayers to benefit if shares in the three companies were to
appreciate, serving as protection of public funds being used to
help out the companies, WSJ relates. The taxpayer, states the
report, would be repaid first once the companies' financial
fortunes turn around.
WSJ relates that the loans would come from a US$25 billion program
that the Congress created in 2007 to lend money to the car makers
to let them invest in cleaner technology.
According to WSJ, the White House would appoint a "car czar" -- an
individual with executive experience -- to oversee the loan
program. That officer, says the report, would monitor executive
compensation. The report states that under the proposed loan
program, these could be taken out:
-- bonuses to the top 25 senior workers at each of the
companies,
-- golden parachutes for senior employees leaving the
companies, and
-- dividends for investors in the three companies while
money is owed to the taxpayer.
WSJ relates that the loans would mature in seven years, with a 5%
interest rate charged for the first five years, and 9% charged
thereafter.
The president could also appoint additional advisers, who would
establish appropriate procedures to guarantee that the plans
submitted to Congress by Ford Motor, GM, and Chrysler form a
viable long-term restructuring plan, WSJ reports. Progress of the
restructuring would be reviewed within 45 days and the three
automakers must have a long-term restructuring program by the end
of the first quarter of 2009.
Citing a White House official, WSJ reports that the George W. Bush
administration had concerns with aspects of the draft for the
bailout.
Corey Boles at WSJ reports that additional oversight of GM, Ford
Motor, and Chrysler would be undertaken by the General
Accountability Office, the Congress' investigative arm. The
report says that the three automakers would be required to open
their books to the GAO and any other information that the agency
required, and a special inspector general would be appointed to
conduct more supervision of the companies.
According to WSJ, the car czar would review any investment
decisions that exceedUS$25 million. The companies, says WSJ,
would
have to withdraw from participation in lawsuits challenging
proposed state laws on emissions standards. Ford Motor, Chrysler,
and GM are involved in those legal challenges, the report states.
WSJ says that GM, Ford Motor, and Chrysler would be compelled to
divest any corporate aircraft they own or lease. WSJ relates that
the companies must conduct a study on using any excess capacity at
their factories to make vehicles to sell to public transit
authorities.
Some lawmakers suggested over the weekend that the CEOs of the
three automakers resign, but that wasn't mentioned in the draft
legislation, WSJ reports.
According to WSJ, Sen. Robert Corker opposed the bill, claiming
that it lacked "teeth," while other senators including Rep. Barney
Frank, the lead negotiator for House Democrats on the bill, said
he was confident a final agreement could be reached.
UAW Wants Seat on GM's Board
WSJ relates that Marc McQuillen, president of UAW Local 2404 in
Charlotte, said that the union wants an equity stake in at least
GM and likely a seat on the company's board, in return for
modifying terms of a health-care agreement and suspending the Jobs
Bank to help the automakers secure loans from the government.
Changes to the UAW contract would have to take place by March 31,
2009, says the report.
UAW's top GM bargaining official, Cal Rapson, told leaders earlier
this month that a Special Attrition Package program would be
offered next year, WSJ states, citing Mr. McQuillen. According to
the report, that program would be implemented if the government
approves some of the bailout money for buying workers out.
Democrats Propose Car Czar
Bankruptcy Law360 reports that Democrats in Congress sent a draft
proposal of a US$15 billion bridge loan for General Motors Corp.,
Ford Motor Co. and Chrysler LLP to the White House for review
Monday. The proposal, the report says, includes the appointment
of a "car czar" to oversee restructuring of the auto industry.
American Bankruptcy Institute says a comprehensive bailout for the
Detroit 3 could cost as much as US$125 billion, and even the
companies themselves are hard pressed to dispute that figure.
ABI also relates that a GM Restructuring is likely to be painful
even if it receives a federal bailout. According to ABI, the
federal oversight likely to be implemented will hit its investors,
creditors, dealers and workers almost as hard as if GM had filed
for bankruptcy protection.
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.
As reported in the Troubled Company Reporter on Nov. 10,
2008, General Motors Corporation's balance sheet at
Sept. 30, 2008, showed total assets of US$110.425 billion, total
liabilities of US$170.3 billion, resulting in a stockholders'
deficit of US$59.9 billion.
* * *
As reported in the Troubled Company Reporter on Nov. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings, including
the corporate credit rating, on General Motors Corp. to 'CCC+'
from 'B-' and removed them from CreditWatch, where they had been
placed with negative implications on Oct. 9, 2008. S&P said that
the outlook is negative.
Fitch Ratings, as reported in the Troubled Company Reporter on
Nov. 11, 2008, placed the Issuer Default Rating of General Motors
on Rating Watch Negative as a result of the company's rapidly
diminishing liquidity position. Given the current liquidity level
ofUS$16.2 billion and the pace of negative cash flows, Fitch
expects that GM will require direct federal assistance over the
next quarter and the forbearance of trade creditors in order to
avoid default. With virtually no further access to external
capital and little potential for material asset sales, cash
holdings are expected to shortly reach minimum required operating
levels. Fitch placed these on Rating Watch Negative:
-- Senior secured at 'B/RR1';
-- Senior unsecured at 'CCC-/RR5'.
As reported in the Troubled Company Reporter on June 24, 2008,
DBRS has placed the ratings of General Motors Corp. and General
Motors of Canada Limited Under Review with Negative Implications.
The rating action reflects the structural deterioration of the
company's operations in North America brought on by high oil
prices and a slowing U.S. economy.
GENERAL MOTORS: International Operations Still Profitable
---------------------------------------------------------
Ken Bensinger at The Los Angeles Times reports that while General
Motors Corp.'s revenue in the U.S. has declined 24% in the last
three full years and has forced the company to seek for a
government financial aid, the company's international operations
remains profitable.
"Those overseas businesses over the last several years almost
uniformly have been quite profitable, and they have, in almost
every case, been able to send dividends back to help us address
funding issues in the U.S," the LA Times quoted GM Chairperson and
CEO Rick Wagoner as saying.
According to the LA Times, GM has a bigger presence abroad than in
the U.S., and has more workers in those countries than nationally.
GM can boast a 28% increase in revenue in its international
operation, the report says.
The LA Times quoted Kimberly Rodriguez, a partner at Grant
Thornton, as saying, "A major argument for keeping GM out of
bankruptcy is the strength of its foreign footprint." Ms.
Rodriguez admitted that if GM's U.S. operations fail, "there will
certainly be problems for the company worldwide," due to the
deeply intertwined nature of GM's global operations, according to
the report.
The LA Times relates that GM's foreign units are separate
corporate entities, and would be shielded from a U.S. Chapter 11
filing. They could continue operations without concerns of a U.S.
court seizing their assets, says the LA Times.
GM, according to the LA Times, said that if it doesn't get
financial support, its U.S. operations would collapse and this
could set off a chain reaction that would put U.S. parts suppliers
out of business, throw off production schedules overseas, and
freeze up GM's foreign plants.
The U.S. is GM's largest single market in terms of revenue, with
$115 billion in sales in 2007, says the LA Times.
Obama Says Auto Industry Collapse Unacceptable
Nadine Elsibai at Bloomberg News reports that President-elect
Barack Obama said that allowing the U.S. auto industry to collapse
would be "unacceptable." Reports say that GM, Ford Motor Corp.,
and Chrysler LLC have submitted turnaround plans to the Congress
as a requirement for the government financial aid they are
seeking.
"I have said repeatedly that to allow the auto industry in the
United States to collapse precisely at a time that we are seeing
record joblessness is unacceptable. What I've also said is that
it makes no sense for us to shovel more money into the problem if
you have not seen an auto industry that is committed to
restructuring," Bloomberg quoted Mr. Obama as saying.
The Congress is doing the right thing by asking for changes in the
auto industry as a condition for a bailout, The Associated Press
relates, citing Mr. Obama.
According to Bankruptcy Law360, lawyers say a bankruptcy by GM
could top theUS$1 billion in legal fees generated by the Enron
collapse. Bankruptcy Law360 also notes that two law professors
who specialize in researching attorneys' fees in bankruptcy
proceedings, said court-awarded fees could reach as high as
$800 million for GM alone.
Bankruptcy Law360 relates that the costs of bankruptcy for GM,
Ford Motor, and Chrysler have been the subject of speculation
since the companies began making their cases for federal
assistance to avoid seeking Chapter 11.
American Bankruptcy Institute on Friday said the CEOs of GM, Ford
Motor, and Chrysler returned to Capitol Hill Thursday to find
themselves confronting considerable frustration from lawmakers and
the realization that even their strongest supporters might not be
able to muster the votes for a bailout package.
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.
As reported in the Troubled Company Reporter on Nov. 10,
2008, General Motors Corporation's balance sheet at
Sept. 30, 2008, showed total assets of US$110.425 billion, total
liabilities of US$170.3 billion, resulting in a stockholders'
deficit of US$59.9 billion.
* * *
As reported in the Troubled Company Reporter on Nov. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings, including
the corporate credit rating, on General Motors Corp. to 'CCC+'
from 'B-' and removed them from CreditWatch, where they had been
placed with negative implications on Oct. 9, 2008. S&P said that
the outlook is negative.
Fitch Ratings, as reported in the Troubled Company Reporter on
Nov. 11, 2008, placed the Issuer Default Rating of General Motors
on Rating Watch Negative as a result of the company's rapidly
diminishing liquidity position. Given the current liquidity level
of US$16.2 billion and the pace of negative cash flows, Fitch
expects that GM will require direct federal assistance over the
next quarter and the forbearance of trade creditors in order to
avoid default. With virtually no further access to external
capital and little potential for material asset sales, cash
holdings are expected to shortly reach minimum required operating
levels. Fitch placed these on Rating Watch Negative:
-- Senior secured at 'B/RR1';
-- Senior unsecured at 'CCC-/RR5'.
As reported in the Troubled Company Reporter on June 24, 2008,
DBRS has placed the ratings of General Motors Corp. and General
Motors of Canada Limited Under Review with Negative Implications.
The rating action reflects the structural deterioration of the
company's operations in North America brought on by high oil
prices and a slowing U.S. economy.
===========
B R A Z I L
===========
AMERICA LATINA: Fitch Affirms 'B+' IDRs & Positive Outlook
----------------------------------------------------------
Fitch Ratings has affirmed the ratings and Positive Rating Outlook
of America Latina Logistica S.A. and its subsidiaries:
ALL
-- Local and Foreign Currency Long-Term Issuer Default Ratings
(IDRs) at 'B+';
-- National Long-Term Rating at 'BBB+(bra)';
-- National Long-Term Rating of the company's fourth, fifth and
sixth debenture issuances, maturing in 2009, 2012 and 2011,
respectively, at 'BBB+(bra)'.
ALL Malha Norte (formerly Ferronorte)
-- National Long-Term Rating of the company's fifth and sixth
debenture issuance, maturing in 2009 and 2018, respectively,
at 'BBB+(bra)'.
ALL Malha Paulista (formerly Ferroban)
-- National Long-Term Rating of the company's first debenture
issuance, maturing in 2018, at 'BBB+(bra)'.
ALL Malha Sul
-- National Long-Term Rating of the company's third debenture
issuance, maturing in 2018, at 'BBB+(bra)'.
The ratings incorporate the analysis of the whole group and
reflect the strong integration of the subsidiaries' operations,
including guarantees provided by ALL and its willingness to
provide support to the operating subsidiaries.
The ratings affirmations reflect the still leveraged credit
profile and the significant need for investments to increase
capacity and improve the group's operational efficiency. The
ratings also reflect the group's strong competitive position as
the sole railroad transportation option in the South and Mid-West
Regions of Brazil, which are markets with significant growth
potential. Structural subordination risks due to ALL's status as
a holding company is mitigated by the unrestricted cash
distribution policy of its operating subsidiaries and the fact
that the holding company's main debts are guaranteed by the
Brazilian operating companies.
The maintenance of the Positive Outlook is based on the
expectation that ALL's consolidated credit measures will continue
to strengthen in the next years. It also reflects the strong
liquidity held by ALL, which results in low exposure to the risk
of high credit restriction. Fitch believes that ALL's cash
generation will continue to moderately benefit from the positive
performance of its business and the synergies with the networks of
Brasil Ferrovias, which were incorporated to the group in 2006.
The still low penetration of ALL operation in the covered region
and the competitive advantages of the rail service transportation,
compared with the road service transportation, enhance Fitch's
expectation. The combination of these factors may limit the
effects of a more challenging scenario to the cargoes'
transportation in Brazil in 2009
ALL's capital structure remains leveraged but is expected to
improve gradually due to the consistent progress in its cash flow
generation. Consolidated adjusted total debt/EBITDAR ratio was
5.2 times (x) for the last-twelve-months ended Sept. 30, 2008,
versus 6.2x at the end of 2006. During the same period, FFO
Leverage improved to 4.4 times compared to 5.3 times and FFO
Interest Coverage improved to 2.5 times, from 1.2 times. Fitch
expects ALL to continue to improve its credit metrics, which could
translate to adjusted debt/EBITDAR ratio closer to 4.5x by the end
of 2009.
Business growth and scale and synergy gains have enabled ALL to
report consolidated FFO of BRL737 million during the last twelve
months ended in September 2008, compared with BRL117 million in
2006 and BRL397 million in 2005. At the same time, Adjusted
EBITDAR was BRL1.3 billion, and 41% more than the BRL904.6 million
generated in 2006. ALL's operational cash generation further
benefited from the strong reduction in working capital need and
gains related to administrative and selling expenses in the
acquired companies. ALL's EBITDAR margins are strong, if compared
with some peers in the Latina America industry, and continue to
improve. The company's EBITDAR margin was 54% for the LTM ended
September 2008 compared with an average margin of 45% between 2004
and 2006.
The group's liquidity is strong, supported by some BRL2.5 billion
of cash on its balance sheet at end of September 2008.
Refinancing risk is low since cash covered short-term debt at a
rate of 2.7x. During the same period, ALL reported total debt of
BRL6.8 billion adjusted for leases and concession obligations
(BRL1.5 billion), compared with, BRL5.6 billion, in 2006 and
BRL1.5billion in 2005. This was due to assumed debt and a new
debt issue during the acquisition period of Brasil Ferrovias and
Novoeste in June 2006. Debt amortization is in line with its
operational cash generation and cash balances. Debt due through
2011 is BRL1.6 billion and is composed mainly by debentures
(BRL2.0 billion), loans with Banco Nacional de Desenvolvimento
Economico e Social (BRL1.7 billion), and bank credit facilities
(BRL1.0 billion).
Capital expenditures planned for the following three years total
around BRL1.8 billion and may be financed by cash flow from
operations and new debt with terms compatible with the investment
developments. For 2008, it is expected that ALL will make
investments totaling BRL700 million of which BRL500 million had
been spent in the nine first months of 2008.
ALL is a holding company that directly controls America Malha Sul
and ALL - America Latina Logistica Intermodal (headquartered in
Brazil). All indirectly controls ALL - America Latina Logistica
Central S.A., ALL - America Latina Logistica Mesopotamica S.A. in
Argentina, and ALL Malha Paulista and ALL Malha Norte in Brazil.
ALL's railroad network, some 20,000 kilometers in extension,
mainly transport soybeans and other agricultural and industrial
products in Brazil's South Region, part of the Mid-West, the state
of Sao Paulo and the central and northeast regions of Argentina.
The group's railroads are the main transportation options, in the
respective regions, to the main ports.
CVRD: Reduces Pellet Production
-------------------------------
Companhia Vale do Rio Doce ("Vale") has stopped the operations of
two of its pellet plants located at the port of Tubarão, in the
state of Espirito Santo, Brazil. The two plants have a total
production capacity of 7.3 million metric tons per year.
The decision to curtail pellet production is due to the
unprecedented contraction of the global demand for iron ore and
pellets, Vale said in a press statement Monday.
According to Vale, the stoppage of the plants follows the shutdown
of two other Vale pellet plants at the port of Tubarão since
November 5, 2008.
Meanwhile, Vale said its joint venture Samarco Mineração announced
the stoppage until mid-January 2009 of two pellet plants. The
plants currently being kept idled involve an overall total
capacity of 29.3 million metric tons of pellets per year.
Vale said in light of the severe global recession and the
uncertainties about the future, it will continue to manage its
production in line with its assessment of market conditions
prevailing in the short-term.
As reported in the Troubled Company Reporter-Latin America,
Vale plans to cut output and suspend some operations in Canada,
has fired 1,300 employees, and sent home 5,500 on paid leave,
due to falling demand for metals.
About Companhia Vale
Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.
GERDAU AMERISTEEL: To Lay Off Mill Workers on Low Demand
--------------------------------------------------------
Gerdau Ameristeel Corporation plans to lay off mill workers,
including executives, as it prepares for a continued downturn in
construction amid steep decline in demand, Jeff Harrington of St.
Petersburg Times reports, citing company spokesman Ramiro
Prudencio.
According to the report, steel demand began to slow in September,
and the company has forecast weak demand in 2009. Steel prices
have also tumbled recently amid the economic contraction, the
report relates.
Mr. Prudencio, the Times notes, said all employee levels will be
affected by the job cuts. Gerdau has about 11,000 employees, 60%
of them are working at its mills.
The report says none of the company's 19 mills in the United
States and Canada will be closed.
Last week, the Times adds, Pittsburgh's U.S. Steel said it would
temporarily idle three facilities and lay off 3,500 workers.
About Gerdau Ameristeel
Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a
mini-mill steel producer in North America. Through its
vertically integrated network of 17 mini-mills, 17 scrap
recycling facilities and 52 downstream operations, Gerdau
Ameristeel serves customers throughout North America. The
company's products are sold to steel service centers, steel
fabricators, or directly to original equipment manufactures for
use in a variety of industries, including construction, cellular
and electrical transmission, automotive, mining and equipment
manufacturing.
Gerdau Ameristeel is a unit of Brazil-based Gerdau S.A.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 28, 2008, Moody's Investors Service changed the outlook of
these ratings for Gerdau Ameristeel Corp. to positive from stable:
-- Ba1 Probability of Default Rating;
-- Ba1 Corporate Family Rating; and
-- Ba1 US$405 million Senior Unsecured Guaranteed Notes due
2011 (LGD 4, 62%).
LOGISTICA SA: Fitch Affirms 'B+' Rating with Positive Outlook
-------------------------------------------------------------
Fitch Ratings has affirmed the ratings and Positive Rating Outlook
of America Latina Logistica S.A. and its subsidiaries:
ALL
-- Local and Foreign Currency Long-Term Issuer Default Ratings
(IDRs) at 'B+';
-- National Long-Term Rating at 'BBB+(bra)';
-- National Long-Term Rating of the company's fourth, fifth and
sixth debenture issuances, maturing in 2009, 2012 and 2011,
respectively, at 'BBB+(bra)'.
ALL Malha Norte (formerly Ferronorte)
-- National Long-Term Rating of the company's fifth and sixth
debenture issuance, maturing in 2009 and 2018, respectively,
at 'BBB+(bra)'.
ALL Malha Paulista (formerly Ferroban)
-- National Long-Term Rating of the company's first debenture
issuance, maturing in 2018, at 'BBB+(bra)'.
ALL Malha Sul
-- National Long-Term Rating of the company's third debenture
issuance, maturing in 2018, at 'BBB+(bra)'.
The ratings incorporate the analysis of the whole group and
reflect the strong integration of the subsidiaries' operations,
including guarantees provided by ALL and its willingness to
provide support to the operating subsidiaries.
The ratings affirmations reflect the still leveraged credit
profile and the significant need for investments to increase
capacity and improve the group's operational efficiency. The
ratings also reflect the group's strong competitive position as
the sole railroad transportation option in the South and Mid-West
Regions of Brazil, which are markets with significant growth
potential. Structural subordination risks due to ALL's status as
a holding company is mitigated by the unrestricted cash
distribution policy of its operating subsidiaries and the fact
that the holding company's main debts are guaranteed by the
Brazilian operating companies.
The maintenance of the Positive Outlook is based on the
expectation that ALL's consolidated credit measures will continue
to strengthen in the next years. It also reflects the strong
liquidity held by ALL, which results in low exposure to the risk
of high credit restriction. Fitch believes that ALL's cash
generation will continue to moderately benefit from the positive
performance of its business and the synergies with the networks of
Brasil Ferrovias, which were incorporated to the group in 2006.
The still low penetration of ALL operation in the covered region
and the competitive advantages of the rail service transportation,
compared with the road service transportation, enhance Fitch's
expectation. The combination of these factors may limit the
effects of a more challenging scenario to the cargoes'
transportation in Brazil in 2009
ALL's capital structure remains leveraged but is expected to
improve gradually due to the consistent progress in its cash flow
generation. Consolidated adjusted total debt/EBITDAR ratio was
5.2 times (x) for the last-twelve-months ended Sept. 30, 2008,
versus 6.2x at the end of 2006. During the same period, FFO
Leverage improved to 4.4 times compared to 5.3 times and FFO
Interest Coverage improved to 2.5 times, from 1.2 times. Fitch
expects ALL to continue to improve its credit metrics, which could
translate to adjusted debt/EBITDAR ratio closer to 4.5x by the end
of 2009.
Business growth and scale and synergy gains have enabled ALL to
report consolidated FFO of BRL737 million during the last twelve
months ended in September 2008, compared with BRL117 million in
2006 and BRL397 million in 2005. At the same time, Adjusted
EBITDAR was BRL1.3 billion, and 41% more than the BRL904.6 million
generated in 2006. ALL's operational cash generation further
benefited from the strong reduction in working capital need and
gains related to administrative and selling expenses in the
acquired companies. ALL's EBITDAR margins are strong, if compared
with some peers in the Latina America industry, and continue to
improve. The company's EBITDAR margin was 54% for the LTM ended
September 2008 compared with an average margin of 45% between 2004
and 2006.
The group's liquidity is strong, supported by some BRL2.5 billion
of cash on its balance sheet at end of September 2008.
Refinancing risk is low since cash covered short-term debt at a
rate of 2.7x. During the same period, ALL reported total debt of
BRL6.8 billion adjusted for leases and concession obligations
(BRL1.5 billion), compared with, BRL5.6 billion, in 2006 and
BRL1.5billion in 2005. This was due to assumed debt and a new
debt issue during the acquisition period of Brasil Ferrovias and
Novoeste in June 2006. Debt amortization is in line with its
operational cash generation and cash balances. Debt due through
2011 is BRL1.6 billion and is composed mainly by debentures
(BRL2.0 billion), loans with Banco Nacional de Desenvolvimento
Economico e Social (BRL1.7 billion), and bank credit facilities
(BRL1.0 billion).
Capital expenditures planned for the following three years total
around BRL1.8 billion and may be financed by cash flow from
operations and new debt with terms compatible with the investment
developments. For 2008, it is expected that ALL will make
investments totaling BRL700 million of which BRL500 million had
been spent in the nine first months of 2008.
ALL is a holding company that directly controls America Malha Sul
and ALL - America Latina Logistica Intermodal (headquartered in
Brazil). All indirectly controls ALL - America Latina Logistica
Central S.A., ALL - America Latina Logistica Mesopotamica S.A. in
Argentina, and ALL Malha Paulista and ALL Malha Norte in Brazil.
ALL's railroad network, some 20,000 kilometers in extension,
mainly transport soybeans and other agricultural and industrial
products in Brazil's South Region, part of the Mid-West, the state
of Sao Paulo and the central and northeast regions of Argentina.
The group's railroads are the main transportation options, in the
respective regions, to the main ports.
* CVRD: Two Chinese Units Get Sued for Patent Infringement
----------------------------------------------------------
Chinese nickel processor and battery maker Corun has sued two
units of Companhia Vale do Rio Doce ("CVRD") for patent
infringement, the Financial Times reports.
The report says Corun alleges the subsidiaries infringed a Chinese
patent it holds for a nickel foam process. Nickel foam is used in
making batteries.
According to FT, Corun lodged a case with an intermediary court in
its local jurisdiction in Hunan Province last month claiming
nearly Rmb90 million (US$13 million) in damages from two Chinese
subsidiaries of Vale Inco, the wholly owned Canadian subsidiary of
Brazil-based CVRD.
Citing industry insiders, the report discloses it was widely known
that Vale Inco was planning to sell the two joint-venture
subsidiaries, in which it holds majority stakes of more than 70
per cent, and that Corun had expressed interest in purchasing one
or both of them. The report relates the patent infringement case
against Inco Advanced Technology Materials (Dalian) and Inco
Advanced Technology Materials (Shenyang) is almost certain to
complicate Vale Inco's efforts to sell them and may lower their
value to potential bidders.
The suit adds to CVRD's burdens as the company faces falling
metals demand due to the global economic slowdown.
As reported in the Troubled Company Reporter-Latin America on Dec.
8, 2008,
CVRD plans to cut output and suspend some operations in Canada.
The company earlier fired 1,300 employees, sent home 5,500 on paid
leave, and retained 1,200 for new jobs, because of the "serious
crisis" in the metals and mining industry. The company has 62,000
employees worldwide.
About Companhia Vale
Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.
==========================
C A Y M A N I S L A N D S
==========================
ATTANSIC TECHNOLOGY: Creditors' Proofs of Debt Due on December 29
-----------------------------------------------------------------
The creditors of Attansic Technology Corp. are required to file
their proofs of debt by December 29, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on November 6, 2008.
The company's liquidator is:
David Donald Torre
c/o Michelle R. Bodden
Bridge Street Services Limited
Marquee Place, Suite 300, 430 West Bay Road
P.O. Box 30691, Grand Cayman KY1-1203
Cayman Islands
Tel: 945-6682
Fax: 945-6692
BARNET PARTNERS: Creditors' Proofs of Debt Due on December 24
-------------------------------------------------------------
The creditors of Barnet Partners Ltd. are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on October 31, 2008.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Anthony Johnson
Telephone:(345) 914-6314
BLACK ARROW: Creditors' Proofs of Debt Due on December 8
--------------------------------------------------------
The creditors of Black Arrow Global Equity Fund, Ltd. are required
to file their proofs of debt by December 8, 2008, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 5, 2008.
The company's liquidator is:
Ogier
c/o Jonathan McLean
PO Box 1234, Grand Cayman KY1-1108
Cayman Islands
Telephone:(345) 815-1705
Facsimile:(345) 949 1986
BLUE FUND: Creditors' Proofs of Debt Due on December 29
-------------------------------------------------------
The creditors of Blue Fund SPC Limited are required to file their
proofs of debt by December 29, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 7, 2008.
The company's liquidator is:
DMS Corporate Services Ltd.
c/o Bernadette Bailey-Lewis
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
Telephone:(345) 946 7665
Facsimile:(345) 946 7666
BRC MARKET: Commences Liquidation Proceedings
---------------------------------------------
On November 6, 2008, the sole shareholder of BRC Market Neutral
Fund, Ltd. resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
December 8, 2008, will be included in the company's dividend
distribution.
The company's liquidator is:
Ogier
c/o Jonathan McLean
PO Box 1234, Grand Cayman KY1-1108
Cayman Islands
Telephone:(345) 815-1705
Facsimile:(345) 949 1986
BUTTONWOOD CAPITAL: Creditors' Proofs of Debt Due on December 29
----------------------------------------------------------------
The creditors of Buttonwood Capital Management Company Limited are
required to file their proofs of debt by December 29, 2008, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 4, 2008.
The company's liquidator is:
DMS Corporate Services Ltd.
Bernadette Bailey-Lewis
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
Telephone:(345) 946 7665
Facsimile:(345) 946 7666
BUTTONWOOD FOCUS: Creditors' Proofs of Debt Due on December 29
--------------------------------------------------------------
The creditors of Buttonwood Focus Fund Limited are required to
file their proofs of debt by December 29, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 4, 2008.
The company's liquidator is:
DMS Corporate Services Ltd.
Bernadette Bailey-Lewis
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
Telephone:(345) 946 7665
Facsimile:(345) 946 7666
CAYMAN ISLANDS: Creditors' Proofs of Debt Due on December 15
------------------------------------------------------------
The creditors of Cayman Islands Industrial Finance Ltd. are
required to file their proofs of debt by December 15, 2008, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 6, 2008.
The company's liquidator is:
Ramon Jara
c/o Nicole Pineda
Walkers, Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9001
Cayman Islands
Tel: 345 814 4528 (Direct)
e-mail: nicole.pineda@walkersglobal.com
CL INTERNATIONAL: Sole Shareholder to Hold Meeting on Jan. 8
------------------------------------------------------------
The sole shareholder of CL International Investments Inc. will
hold final meeting on January 8, 2008, at 10:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced liquidation proceedings on Oct. 31, 2008.
The company's liquidator is:
Ogier
c/o Sophie Gray
Queensgate House, South Church Street
PO Box 1234, Grand Cayman KY1-1108
Cayman Islands
Telephone:(345) 949 9876
Facsimile:(345) 949 1986
CL INTERNATIONAL: Creditors' Proofs of Debt Due on December 24
--------------------------------------------------------------
The creditors of CL International Investments Inc. are required to
file their proofs of debt by December 24, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 31, 2008.
The company's liquidator is:
Ogier
c/o Sophie Gray
Queensgate House, South Church Street
PO Box 1234, Grand Cayman KY1-1108
Cayman Islands
Telephone:(345) 949 9876
Facsimile:(345) 949 1986
CYPRESS LATE: Creditors' Proofs of Debt Due on December 26
----------------------------------------------------------
The creditors of Cypress Late Stage Venture Fund II are required
to file their proofs of debt by December 26, 2008, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 5, 2008.
The company's liquidators are:
Christopher Humphries
Gregory Thompson
Stuarts Walker Hersant
Telephone:(345) 949 3344
Facsimile:(345) 949 2888
DELPHIC CAPITAL: Creditors' Proofs of Debt Due on December 24
-------------------------------------------------------------
The creditors of Delphic Capital Management Limited are required
to file their proofs of debt by December 24, 2008, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 6, 2008.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Telephone:(345) 914-6314
JAYHAWK CHINA: Creditors' Proofs of Debt Due on December 29
-----------------------------------------------------------
The creditors of Jayhawk China Fund (Cayman), Ltd. are required to
file their proofs of debt by December 29, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on October 31, 2008.
The company's liquidator is:
Jayhawk Capital Management, L.L.C.
c/o Michael D. Schmitz
5410 West 61st Place, Suite 100
Mission, Kansas 66205, United States of America
Telephone: +1 (913) 642 2611
Facsimile: +1 (913) 642 8661
e-mail: mike.schmitz@jayhawkcapital.com
LYSTER WATSON: Creditors' Proofs of Debt Due on December 24
-----------------------------------------------------------
The creditors of Lyster Watson Moderate Volatility Master Fund,
Ltd. are required to file their proofs of debt by December 24,
2008, to be included in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 4, 2008.
The company's liquidator is:
Lyster Watson Management, Inc.
c/o Mourant Du Feu & Jeune
Mourant du Feu & Jeune
c/o P.O. Box 1348, Grand Cayman KY1-1108
Cayman Islands
Telephone:(+1) 345 949 4123
Facsimile:(+1) 345 949 4647
ODIN CDO: Moody's Downgrades Ratings on Seven Classes of Notes
--------------------------------------------------------------
Moody's Investors Service has downgraded its ratings on seven
classes of notes issued by Odin CDO.
The transaction is a managed synthetic CDO referencing a pool of
corporate names.
According to Moody's, the rating action is the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Lehman
Brothers Holdings Inc., which filed for protection under
Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008,
Washington Mutual Inc., which was seized by federal regulators on
September 25, 2008, and subsequently virtually all of its assets
were sold to JPMorgan Chase, Fannie Mae and Freddie Mac, which
were placed into the conservatorship of the U.S. government on
September 8, 2008, Landsbanki Islands hf and Glitnir Banki hf, for
each of which a receivership committee was appointed on Tuesday,
October 7, 2008, and Kaupthing Bank hf, for which a receivership
committee was appointed on Wednesday, October 8, 2008. The
transaction also has a significant exposure to other corporate
names which continue to deteriorate in the current economic
environment. This will weigh on the ratings of the tranches in
this transaction.
Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports below:
-- Moody's Approach To Rating Synthetic CDOs (July 2003)
-- Moody's Approach to Rating Digital Credit Default Swaps (July
2004)
-- Moody's Revisits Its Assumptions Regarding Corporate Default
(and Asset) Correlations for CDOs (November 2004)
-- Understanding Collateral Risks of Funded Synthetics in CDOs
(June 2006)
The rating actions are:
Odin CDO I (Cayman Islands No. 1) Plc and Odin CDO I (Delaware No.
1) Corp
(1) US$38,000,000 Class B-1U5 Notes due 2010
-- Current Rating: Ba3
-- Prior Rating: Aa2
-- Prior Rating Date: 24 March 2005
Odin CDO I (Cayman Islands No. 2) Plc and Odin CDO I (Delaware
No.2) Corp
(1) US$110,150,000 Class B-1U7 Notes due 2012
-- Current Rating: B1
-- Prior Rating: Aa2
-- Prior Rating Date: 24 March 2005
Odin CDO I (Cayman Islands No. 3) Plc and Odin CDO I (Delaware
No.3) Corp
(1) US$88,500,000 Class B-2U7 Notes due 2012
-- Current Rating: B1
-- Prior Rating: Aa2
-- Prior Rating Date: 24 March 2005
Odin CDO I (Cayman Islands No. 4) Plc and Odin CDO I (Delaware
No.4) Corp
(1) US$15,000,000 Class D-2U7 Notes due 2012
-- Current Rating: Ca
-- Prior Rating: Baa2
-- Prior Rating Date: 24 March 2005
Odin CDO I (Ireland) PLC
(1) US$10,000,000 Class A-1U5 Notes due 2010
-- Current Rating: Baa2
-- Prior Rating: Aaa
-- Prior Rating Date: 24 March 2005
(2) US$27,000,000 Class A-1U5A Notes due 2010
-- Current Rating: Baa2
-- Prior Rating: Aaa
-- Prior Rating Date: 24 March 2005
(3) EUR 25,600,000 Class B-1E7 Notes due 2012
-- Current Rating: B1
-- Prior Rating: Aa2
-- Prior Rating Date: 24 March 2005
PALM BEACH: Creditors' Proofs of Debt Due on December 24
--------------------------------------------------------
The creditors of Palm Beach Offshore, Ltd. are required to file
their proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 5, 2008.
The company's liquidators are:
Geoffrey Varga
Neil Morris
c/o Mark Longbottom
c/o Kinetic Partners Cayman LLP
PO Box 10387, Grand Cayman KY1-1004
Cayman Islands
Telephone: +1 345 623 9906
Facsimile: +1 345 623 0007
PALM BEACH: Creditors' Proofs of Debt Due on December 24
--------------------------------------------------------
The creditors of Palm Beach Offshore II, Ltd. are required to file
their proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 5, 2008.
The company's liquidators are:
Geoffrey Varga
Neil Morris
c/o Mark Longbottom
Kinetic Partners Cayman LLP
PO Box 10387, Grand Cayman KY1-1004
Cayman Islands
Telephone: +1 345 623 9906
Facsimile: +1 345 623 0007
RAINBOW SKYLINE: Creditors' Proofs of Debt Due on December 24
-------------------------------------------------------------
The creditors of Rainbow Skyline Corp. are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 11, 2008.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Telephone:(345) 914-6314
REAL ESTATE: Creditors' Proofs of Debt Due on December 24
---------------------------------------------------------
The creditors of Real Estate Asia Select I GP, Ltd. are required
to file their proofs of debt by December 24, 2008, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 6, 2008.
The company's liquidator is:
Stuarts Corporate Services Ltd.
4F, Cayman Financial Centre
36A Dr. Roy's Drive, George Town
P.O. Box 2510, Grand Cayman, KY1-1104
Telephone:(345) 949 3344
Facsimile:(345) 949 2888
SOLA ENERGY: Requires Creditors to File Claims by December 15
-------------------------------------------------------------
The creditors of Sola Energy Funding IV Ltd are required to file
their proofs of debt by December 15, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 6, 2008.
The company's liquidator is:
Christopher Pucillo
430 Park Avenue, New York, NY 10022
United States of America
c/o Nicole Pineda
Walkers, Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9001
Cayman Islands
Tel: 345 814 4528 (Direct)
e-mail: nicole.pineda @walkersglobal.com
SOLA MANHATTAN: Requires Creditors to File Claims by December 15
-------------------------------------------------------------
The creditors of Sola Manhattan Re Ltd. are required to file their
proofs of debt by December 15, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 6, 2008.
The company's liquidator is:
Christopher Pucillo
430 Park Avenue, New York, NY 10022
United States of America
c/o Nicole Pineda
Walkers, Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9001
Cayman Islands
Tel: 345 814 4528 (Direct)
e-mail: nicole.pineda @walkersglobal.com
SOPRANO FUND: Creditors' Proofs of Debt Due on December 24
----------------------------------------------------------
The creditors of Soprano Fund are required to file their proofs of
debt by December 24, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Oct. 21, 2008.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Telephone:(345) 914-6314
STRATEGIC CAPITAL: Creditors' Proofs of Debt Due on December 23
---------------------------------------------------------------
The creditors of Strategic Capital Management Limited are required
to file their proofs of debt by December 23, 2008, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 11, 2008.
The company's liquidator is:
Benjamin K Y Lee
c/o Messrs. Maples and Calder, Attorneys-at-law
P.O. Box 309GT, Ugland House
South Church Street, George Town
Grand Cayman, Cayman Islands
WESTERLY GLOBAL: Creditors' Proofs of Debt Due on December 29
-------------------------------------------------------------
The creditors of Westerly Global Opportunities, Ltd. are required
to file their proofs of debt by December 29, 2008, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 3, 2008.
The company's liquidator is:
DMS Corporate Services Ltd.
Bernadette Bailey-Lewis
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
Telephone:(345) 946 7665
Facsimile:(345) 946 7666
WESTERLY GLOBAL: Creditors' Proofs of Debt Due on December 29
-------------------------------------------------------------
The creditors of Westerly Global Opportunities Master, Ltd are
required to file their proofs of debt by December 29, 2008, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 3, 2008.
The company's liquidator is:
DMS Corporate Services Ltd.
Bernadette Bailey-Lewis
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
Telephone:(345) 946 7665
Facsimile:(345) 946 7666
=============
E C U A D O R
=============
PETROECUADOR: Jan-Oct. Revenues From Export Up 89% to US$6.03 Bil.
------------------------------------------------------------------
Petroecuador's revenues from exports increased 89% to around
US$6.03 billion in the January - October period, from
US$3.19 billion last year, Mercedes Alvaro of Dow Jones Newswires
reports, citing company data.
According to the report, the data showed in terms of volume, the
company exported 64.83 million barrels of crude oil between
January and October, up 15% from 56.35 million barrels registered
in the same period of 2007.
Petroecuador's export total includes Napo crude from former
Occidental Petroleum Co. (OXY) fields that were seized in May 2006
by the government, which claimed the U.S. company had broken the
terms of its operating contract, Dow Jones says.
Dow Jones notes exports of Oriente crude were 45 million barrels
in the first 10 months of 2008, while exports of Napo crude were
19.83 million barrels.
The average price of Oriente between January and October was
approximately US$ 94.50 a barrel, while Napo crude's price was
US$89.62 a barrel, the report adds.
About Petroecuador
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
=============
J A M A I C A
=============
* JAMAICA: Small Firms Balk at Gov't for High Interest Rates
------------------------------------------------------------
A group of small businesses in Jamaica is criticizing the
government for the recent sharp hike in interest rates, Radio
Jamaica reports.
According to the report, the Small Business Association of Jamaica
(SBAJ) said it views the increase by Bank of Jamaica as a
retrograde step consistent with poor fiscal leadership. The
continued attack on the entrepreneurial spirit of Jamaicans
threatens the business sector and will further destabilize the
already fragile economy, said the group.
The report relates SBAJ, pointing to the large volume of bonds
issued by the Central Bank, lamented that since 1991 the change in
the exchange rate has resulted in the productive sector being held
to ransom with the shift to the paper economy.
Jamaica is an island nation of the Greater Antilles, 234
kilometers in length and as much as 80 kilometers in width
situated in the Caribbean Sea. It is about 145 kilometers south
of Cuba, and 190 kilometers west of the island of Hispaniola, on
which Haiti and the Dominican Republic are situated.
According to Moody's Investor Site, the country continues to hold
a B1 foreign currency rating and a Ba2 local currency rating.
* JAMAICA: To Continue Banana Industry Support, Minister Says
-------------------------------------------------------------
The Jamaican government will continue to provide the necessary
support for the banana industry, to enable it to remain a major
contributor to the national economy, Caribbean Net News reports
citing Minister of Agriculture, Dr. Christopher Tufton.
The report says Minister Tufton recently signed a contract with
the European Union providing EUR1.6 million to promote
diversification in agricultural production in the country's banana
producing parishes.
According to the report, the country's banana industry has been
confronted with a number of challenges including the negative
impact of hurricanes over the past three years and the
consequential decision of Jamaica Producers to cease production
for the export market.
As reported in the Troubled Company Reporter-Latin America on
Sept. 25, 2008, The Jamaica Observer said Jamaica Producers Group
Limited (JP) ceased the production of bananas for export to the
United Kingdom following the dilapidation of its banana farms by
Tropical Storm Gustav. The move directly affected 460 employees
at Eastern Banana Estates (EBEL) in St Thomas.
The Group said it had made significant investment in rebuilding
its banana farms after being destroyed by four strong hurricanes,
however, due to the frequency of hurricanes that hit Jamaica, it
won't re-invest in export production of bananas anymore. Prior to
Gustav, JP's banana plantation was ravaged by Hurricane Ivan in
2004, Hurricanes Dennis and Emily in 2005 and Hurricane Dean in
2007.
The company, meanwhile, continues to produce bananas for the local
market and banana based snacks for the local and international
markets.
According to The Observer, for the six months ended June 14, 2008,
JP's Banana Division, which is comprised of banana production and
sales in Jamaica and Honduras, plus the manufacturing and sale of
banana chips, recorded a loss of US$136.9 million, significantly
more than the US$15.7 million it lost last year. Revenues of
US$538.2 million over the period under review represented a 55%
decline.
===========
M E X I C O
===========
CEMEX SAB: Shares Up on Speculation It May Gain From U.S. Plan
--------------------------------------------------------------
Cemex S.A.B. de C.V.'s shares surged 27 percent Monday to 12.65
pesos in Mexico City trading on speculation it will benefit from
an infrastructure stimulus plan in the U.S., Fabio Alves of
Bloomberg News reports.
U.S. President-elect Barack Obama, according to the report, said
he will boost investment in roads, bridges and public buildings to
create or preserve 2.5 million jobs after U.S. companies cut
payrolls at the fastest pace in 34 years.
"The stimulus plan by President-elect Barack Obama is very good
for Cemex because it not only will boost the U.S. economy but also
the Mexican economy," Bloomberg News quoted Rogelio Gallegos, who
manages the equivalent of about US$380 million at brokerage
Actinver SA in Mexico City, as saying. "A better outlook for
Cemex's two main markets improved investor sentiment today."
The package could bring an US$18 billion increase in annual
federal highway funding over the next six years and an 11 percent
jump in total U.S. cement consumption from 2007 levels, Deutsche
Bank AG analyst Dan McGoey wrote in a note to clients obtained by
Bloomberg News. Cemex accounts for about 14 percent of the U.S.
cement production capacity, Mr. McGoey wrote.
Cemex, Bloomberg News recalls, has at least twice this year said
full-year operating cash flow would be less than forecast as
construction slowed in the U.S., Mexico, Spain and the U.K., its
four largest markets.
About Cemex
Headquartered in Mexico, Cemex S.A.B. de C.V. --
http://www.cemex.com/-- is a growing global building solutions
company that provides high quality products and reliable service
to customers and communities in more than 50 countries throughout
the world, including Argentina, Colombia and Venezuela.
Commemorating its 100th anniversary in 2006, Cemex has a rich
history of improving the well-being of those it serves through its
efforts to pursue innovative industry solutions and efficiency
advancements and to promote a sustainable future.
* * *
As reported by the Troubled Company Reporter-Latin America on
November 26, 2008, Fitch Ratings downgraded Cemex, S.A.B. de
C.V.'s 'BBB-' foreign currency Issuer Default Rating to 'BB+';
'BBB-' local currency IDR to 'BB+'; and 'BBB-' Senior unsecured
debt obligations to 'BB+'. The Rating Outlook is Negative.
According to Fitch, the rating actions reflect weaker than
expected operating results and higher leverage levels than
previously anticipated due to economic weakness in most of the
company's important markets.
CONSTELLATION COPPER: Wouldn't File 3rd Qtr. Financial Statements
-----------------------------------------------------------------
Constellation Copper Corporation said would not be filing its
third quarter unaudited financial statements by the required
filing date under applicable Canadian securities laws.
The Company is providing an update in accordance with National
Policy 12-203 Cease Trade Orders for Continuous Disclosure
Defaults. The company said that it:
-- advises that other than as set out in this press release,
there is no material change in the information contained in
the Notice of Default issued November 20, 2008. The Company
continues to attempt to reach an agreement with Jaguar
Financial Corporation and Glencore International AG pursuant
to the letter of intent announced on September 3, 2009 and to
negotiate with secured creditor Investec Bank (UK) Limited;
-- currently expects to file its interim financial statements
for its third quarter ended Sept. 30, 2008, and Management
Discussion & Analysis related thereto on or before Jan. 14,
2009 as originally contemplated.
-- advises that there are no other financial statements that
are not expected to be filed within the time period set out
by the security regulatory authorities.
-- advises that there is no other material information
concerning the affairs of the Company that has not been
generally disclosed.
About Constellation Copper
Headquartered in Lakewood, Colorado, Constellation Copper
Corporation (CCU: TSX) -- http://www.constellationcopper.com/--
evaluates and develops mineral properties in the United States and
Mexico. The company holds its properties primarily through three
of its wholly owned subsidiaries, Lisbon Valley Mining Co. LLC,
Minera Terrazas S.A. de C.V. and San Javier del Cobre S.A. de C.V.
LVMC operates the Lisbon Valley copper mine, which comprises three
main deposits: Sentinel, Centennial and GTO, plus the Cashin
satellite deposit, with reserves and resources totaling +50
million tons and grading an average 0.48% copper. Minera Terrazas
holds the company's interest in the Terrazas zinc-copper project
located in north- central Mexico. The property has a total
resource of 90 million tonnes grading 1.37% zinc and 0.32% copper
in two adjacent deposits. San Javier del Cobre S.A. de C.V. holds
the company's interest in the San Javier copper property located
in northwestern Mexico.
INDUSTRIAS PENOLES: Two Mines Shut After Workers Strike
-------------------------------------------------------
Industrias Penoles SAB's two mines, together with two other unit-
operated mines, were shut down after workers went on strike to
protest the arrest of two union officials, Bloomberg News reports.
According to the report, after authorities arrested officials of
Mining and Metal Workers Union, the workers staged an illegal
strike that resulted to the halting of production at Industrias
Penoles SAB's Sabinas and Madero mines in Zacatecas. Fresnillo
Plc, a unit of Penoles, said its Fresnillo and Cienega mines were
also affected, the report relates.
The report recounts Mexican Attorney General's Office arrested
union Communications Director Carlos Pavon Campos and Security
Chief Juan Linares Montufar this week after workers filed
complaints alleging the union mishandled a US$55 million miners'
fund created by Grupo Mexico SAB. The government also froze some
of the union's bank accounts, the report says.
"This began as a problem between Grupo Mexico and the union,"
Rodrigo Heredia, an analyst with Ixe Casa de Bolsa SA, told
Bloomberg News in a telephone interview. Now, it's a "conflict
between the union and the industry," he said.
Meanwhile, the report says Union Secretary General Napoleon Gomez
Urrutia fled to Vancouver to avoid three arrest warrants tied to
the investigation. He has denied the allegations.
Bloomberg News notes the mining chamber and Grupo Mexico have said
the union refused to lift strikes at Cananea until the arrest
warrants for Mr. Urrutia were overturned.
The union confirmed in an e-mail obtained by Bloomberg News that
workers held strike in four states, including Zacatecas,
Tamaulipas, Durango and Coahuila, but did not name which companies
were affected.
Industrias Penoles SAB de CV -- http://www.penoles.com.mx -- is a
Mexico-based holding company. Through its subsidiaries, the
Company is engaged in mining, smelting and refining non-ferrous
metals, as well as producing chemicals. It is structured into
three core divisions: Exploration, Mining and Metals-Chemicals.
In the Exploration area, the company is active in locating,
studying, analyzing and developing deposits of non-ferrous metals
in Mexico and Latin America. Though the Mining division, it
operates mining facilities, such as Fresnillo, a silver mine; La
Cienega and La Herradura, gold mines; Naica, a lead mine, and
Francisco I. Madero, a zinc mine. In the Metals-Chemicals area,
the company owns Met-Mex Penoles, a non-ferrous metallurgical
complex. Additionally, the Chemicals division is engaged in the
production and sale of sodium sulfate, magnesium oxide, magnesium
sulfate, and ammonium sulfate. Industrias Penoles SAB de CV is
headquartered in Mexico City, Mexico.
INNOPHOS HOLDINGS: Earns US$79.6MM for Quarter ended September 30
-----------------------------------------------------------------
Innophos Holdings, Inc., reported financial results for quarter
and nine months ended Sept. 30, 2008.
For three months ended Sept. 30, 2008, the company reported net
income of US$79,652,000 compared with net income of
US$5,631,000 for the same period in the previous year.
For the nine months ended Sept. 30, 2008, the company reported net
income of US$148,195,000 compared to net loss of US$1,605,000 for
the same period in the previous year.
Liquidity and Capital Resources
Net cash provided by operating activities was US$131,400,00 for
the nine months ended Sept. 30, 2008, as compared to US$30,400,000
for the same period in 2007, an increase in cash of
US$101,000,000. The increase in operating activities cash
resulted from a favorable change of US$149,800,000 in net income
and US$6.2 million in non-cash items affecting net income,
partially offset by unfavorable changes of US$52,400,000 in net
working capital and US$2,600,000 in non-current accounts.
Non-cash items affecting net income increased by US$6,200,000 due
to increased depreciation expense, partially due to the
cogeneration unit in Mexico and asset impairment expense for two
obsolete production units in the United States, increased share
based compensation, and decreased benefit from deferred taxes.
The change in net working capital is a use of cash of
US$59,400,000 in 2008 compared to a use in 2007 of US$7,000,000,
an increase in the use of cash of US$52,400,000. The increased
use of cash is due to higher selling prices which increased
accounts receivable balances and higher raw material costs
increasing inventory values without any compensating increase in
accounts payable due to advance payments with raw material
suppliers to ensure timely deliveries.
Inventory on hand during the third quarter of 2008 has increased
in GTSP as a result of reduced demand in the fertilizer market.
This was partially offset by increased current liabilities for the
accrual of income taxes resulting from the increased earnings in
Mexico. Working capital is expected to continue to increase as we
continue to raise prices and incur higher raw material costs.
Net cash used for investing activities was US$13,200,000 for the
nine months ended Sept. 30, 2008, compared to US$25,100,000 for
the same period in 2007, a decrease in the use of cash of
US$11,900,000.
This was due to US$12,400,00 lower capital spending related to the
2007 cogeneration project in Coatzacoalcos, Mexico, and
US$2,100,000 lower spending for the purchase in 2007 of certain
assets from Rhodia related to the early cancellation of our 2004
ten-year pharma sales agency agreement. This was partially offset
by an increase in capital spending of US$2,600,000 in all other
projects.
Net cash from financing activities for the nine months ended
Sept. 30, 2008 was a use of US$10,700,000, compared to a use of
US$21,600,000 for the same period in 2007, an increase in cash of
US$10,900,000. This is due to US$15,000,000 lower Term Loan
principal payments and US$1,100,000 tax benefits from stock option
exercises, partially offset by US$1,300,000 higher dividend
payments,US$500,000 lower proceeds from stock option exercises,
and US$3,400,000 less for the bond refinancing done in 2007.
As of Sept. 30, 2008, the company was in full compliance with all
debt covenant requirements.
Total interest cash payments by the company for all indebtedness
for the nine months ended Sept. 30, 2008, and Sept. 30, 2007, was
US$27,501 and US$32,633.
Innophos Holdings's balance sheet at Sept. 30, 2008, showed total
assets of US$719,366,000, total liabilities of US$529,618,000 and
stockholders' equity of US$189,748,000.
A full-text copy of the the 10-Q filing is available for free at
http://ResearchArchives.com/t/s?35e3
About Innophos Holdings
Headquartered in Cranbury, N.J., Innophos Holdings Inc. (Nasdaq:
IPHS) -- http://www.innophos.com/-- the holding company for a
leading North American manufacturer of specialty phosphates,
serves a diverse range of customers across multiple applications,
geographies and channels. Innophos offers a broad suite of
products used in a wide variety of food and beverage, consumer
products, pharmaceutical and industrial applications. Innophos
has manufacturing operations in Nashville, Tenn.; Chicago Heights,
Ill.; Chicago (Waterway), Ill.; Geismar, Los Angeles; Port
Maitland, Ontario (Canada); and Coatzacoalcos, Veracruz and
Mission Hills, Guanajuato (Mexico).
* * *
As reported by the Troubled Company Reporter on Sept. 18, 2008,
Moody's Investors Service upgraded Innophos Holdings, Inc.'s
corporate family rating to Ba3 (from B1), upgraded ratings on its
existing debt issues and affirmed the SGL-2 speculative grade
liquidity rating. The move reflects the company's improved
operating performance that is expected to result in future debt
reduction. The company also benefits from the favorable decision
by the Mexican Court of Fiscal & Administrative Justice concerning
a water tax issue with a Mexican governmental agency.
LIGHTPATH TECH: Posts US$1,024,000 Net Loss in Qtr. Ended Sept. 30
------------------------------------------------------------------
Lightpath Technologies, Inc.'s balance sheet as of September 30,
2008, showed total assets of US$6,603,473 and total stockholders'
equity of US$2,802,008.
J. James Gaynor, president and chief executive officer, and
Dorothy M. Cipolla, chief financial officer, relate that net loss
was approximately US$1,024,000 during the first quarter of fiscal
2009, compared with the first quarter of fiscal 2008, in which the
company reported a net loss of US$1.5 million. "This represents
an US$479,000 decrease in net loss. Weighted-average shares
outstanding increased in the first quarter of fiscal 2009 compared
to the first quarter in fiscal 2008 primarily due to the issuance
of shares related to the convertible debentures issued in the
first quarter of fiscal 2009."
"Because of recurring operating losses during 2008 and 2007 of
US$5.5 million and US$2.6 million, respectively, and cash used in
operations during 2008 and 2007 of US$3.6 million and US$1.9
million, respectively, there is substantial doubt about our
ability to continue as a going concern. Our continuation as a
going concern is dependent on attaining profitable operations
through achieving revenue growth targets," Mr. Gaynor and Ms.
Cipolla note.
"We have instituted a cost reduction program and have reduced
headcount in Orlando and costs for medical insurance for our
employees. In addition, we have redesigned certain product lines,
increased sales prices on certain items, obtained more favorable
material costs, and have instituted more efficient management
techniques. We believe these factors will contribute towards
achieving profitability assuming we meet out sales targets."
Mr. Gaynor and Ms. Cipolla disclose that on October 3, 2008, the
company received a notification from The NASDAQ Listing
Qualifications of The NASDAQ Stock Market, LLC that the company
does not comply with Marketplace Rule 4310(c)(3), which requires
the company to have a minimum of US$2,500,000 in stockholders'
equity or US$35,000,000 market value of listed securities or
US$500,000 of net income from continuing operations for the most
recently completed fiscal year or two of the three most recently
completed fiscal years.
In the notification letter from NASDAQ, Staff noted:
(i) based on the company's Annual Report on Form 10-K for the
fiscal year ended June 30, 2008, the company's
stockholders' equity was US$2,159,761;
(ii) as of October 2, 2008, NASDAQ Staff determined that the
market value of the company's listed securities was
US$7,357,696; and
(iii) the company has reported net losses from continuing
operations of US$5,467,769,US$2,614,629 and US$3,368,881,
in its annual filings for the fiscal years ended June 30,
2008, 2007 and 2006, respectively.
"Based on these circumstances, Staff is reviewing the company's
eligibility for continued listing on The Nasdaq Capital Market. On
October 24, 2008, the company submitted a specific plan to achieve
stockholders' equity in excess of US$2,500,000 and, thereby,
regaining compliance with Marketplace Rule 4310(c)(3)."
A full-text copy of the company's Quarterly Report is available
for free at: http://researcharchives.com/t/s?35f0
About LightPath
LightPath Technologies, Inc., was incorporated in Delaware in 1992
to pursue a strategy of supplying hardware to the
telecommunications industry. In April 2000, the company acquired
Horizon Photonics, Inc., and in September 2000 the company
acquired Geltech, Inc. During fiscal 2003, in response to sales
declines in the telecommunications industry, the operations of
Horizon in California and LightPath in New Mexico were
consolidated into the former Geltech facility in Orlando, Florida.
In November 2005, the company announced the formation of LightPath
Optical Instrumentation (Shanghai) Co., Ltd, a wholly owned
manufacturing subsidiary located in Jiading, People's Republic of
China. The manufacturing operations are housed in a 17,000-square
foot facility located in the Jiading Industrial Zone near
Shanghai. This plant has increased overall production capacity
and enabled LightPath to compete for larger production volumes of
optical components and assemblies, and strengthened partnerships
within the Asia/Pacific region. It also provides a launching point
to drive the company's sales expansion in Asia/Pacific. Over 90%
of the first quarter's precision molded lenses were manufactured
in LPOI's Shanghai facility.
The company is engaged in the production of precision molded
aspherical lenses, GRADIUM(R) glass lenses, collimators and
isolator optics used in various markets, including industrial,
medical, defense, test & measurement and telecommunications.
* MEXICO: Risk Changes as Inflation Peaks, Ortiz Says
-----------------------------------------------------
Mexican policy markers are shifting their view on whether
inflation or slow growth poses a greater risk because the pace of
price increases will peak by early next year, Bloomberg News
reports, citing Mexican Central bank Governor Guillermo Ortiz.
Mr. Ortiz, the report relates, said annual inflation rate, which
climbed to a seven-year high in the first half of November, will
reach a high in December or January in Mexico. "The large drop in
raw materials prices we've seen, and lower demand from cooling
economic activity, obviously gives us a different balance of
risks. We expect inflation to peak in December or January and
then we'll see a decrease," he added.
According to the report, Luis Flores, an economist at IXE Grupo
Financiero SA in Mexico City, said Mr. Ortiz's comments suggest
that policy makers will concentrate more on faltering growth than
on rising prices, meaning the bank is likely to cut the benchmark
interest rate in the first quarter of next year.
"This is good news," the report cited Mr. Flores as saying. "The
central bank hasn't been able to cut rates because inflation kept
rising. Once inflation starts falling, the central bank will cut
rates and contribute to economic recovery."
Bloomberg News recounts Mexico's central bank kept its key lending
rate unchanged for a third straight month in November and signaled
its growing concern that the global financial crisis may damp the
pace of the country's economic growth.
Consumer prices in the first half of last month rose more than
forecast, pushing the annual inflation rate above the central
bank's target for the quarter, the report adds.
As reported by the Troubled Company Reporter - Latin America on
Dec. 4, 2008, Prensa Latina said a study conducted by the Bank of
Mexico (BANXICO) revealed that the country's economy next year
would likely worsen due to the global financial crisis.
A TCRLA report on Dec. 2, 2008, related Mr. Ortiz said Mexico's
economy won't avoid an "important slowdown" amid a global credit
crisis.
According to Bloomberg News, Mexico's third-quarter growth of
1.6% was the lowest in five years.
====================
P U E R T O R I C O
====================
SIMMONS CO: Forbearance Agreement Extended to December 10
---------------------------------------------------------
On November 25, 2008, the forbearance period under the First
Forbearance Agreement and Second Amendment to the Second Amended
and Restated Credit and Guaranty Agreement between Simmons Bedding
Company, THL-SC Bedding Company and certain subsidiaries of
Simmons Bedding party to its senior credit facility and its senior
lenders and Deutsche Bank AG, as a senior lender and
administrative agent for the senior lenders, was extended until
December 10, 2008.
The Simmons companies entered into the First Forbearance Agreement
on November 12, 2008. Based on the terms of the Forbearance
Agreement, the senior lenders agreed to, among other things,
forbear from exercising their default-related rights and remedies
against Simmons Bedding and the other Credit Parties with respect
to certain specified defaults that had occurred as of November 12,
2008, and that are expected to continue during the effective
period of the Forbearance Agreement. During the forbearance
period, the applicable margin on the revolving loans and tranche D
term loans will increase 2.0% per annum above the rate otherwise
applicable. In the event an amendment to the senior credit
facility is executed during the forbearance period on or before
December 10, 2008, the 2.0% increase in applicable margin will not
be payable. In the event that a Restructuring Amendment does not
become effective on or prior to December 10, 2008, the interest
accrued pursuant to the Forbearance Agreement that otherwise would
have been payable under the senior credit facility during the
forbearance period will be payable on December 10, 2008, and each
applicable interest payment date thereafter. In addition, Simmons
Bedding agreed to pay (a) the lenders who approved the Forbearance
Agreement a forbearance fee equal to 0.125% of the aggregate
outstanding amount of that lender's outstanding debt under the
senior credit facility; and (b) the fees and expenses of the
lender's counsel in connection with the Forbearance Agreement.
For the quarter ended September 27, 2008, Simmons Bedding was not
in compliance with a financial covenant and certain other
covenants contained in its senior credit facility. Since the
Company's financial statements and debt presentation are
materially impacted by the non-compliance and may be materially
impacted by the terms contained in the amendment under
negotiation, the Company has elected to not file its Quarterly
Report on Form 10-Q for the quarter ended September 27, 2008
within the prescribed period of time. Additional time is required
to complete the amendment and the related debt classification and
disclosures in the Quarterly Report on Form 10-Q for the quarter
ended September 27, 2008, to give effect to the amendment.
In addition, pursuant to the reporting covenant contained in the
credit agreement governing the US$300.0 million senior unsecured
loan of Simmons Holdco, a holding company that wholly owns the
Company, Simmons Holdco has agreed to furnish to its lenders,
within five days of the time period specified in the Securities
and Exchange Commission's rules and regulations, those quarterly
and annual financial reports that Simmons Holdco would be required
to file with the SEC if Simmons Holdco were required to file those
reports.
About Simmons Company
Headquartered in Atlanta, Georgia, Simmons Company --
http://www.simmons.com/-- is a mattress manufacturer and marketer
of a range of products through its indirect subsidiary Simmons
Bedding Company. Products includes Beautyrest(R), Beautyrest
Black(TM), ComforPedic by Simmons(TM), Natural Care(TM),
BackCare(R), Beautyrest Beginnings(TM) and Deep Sleep(R). Simmons
Bedding Company operates 21 conventional bedding manufacturing
facilities and two juvenile bedding manufacturing facilities
across the United States, Canada and Puerto Rico. Simmons also
serves as a key supplier of bedding to hotel groups and resort
properties.
The Troubled Company Reporter reported on Nov. 18, 2008, that
Standard & Poor's Ratings Services lowered its ratings on Atlanta,
Ga.-based Simmons Company, including its corporate credit rating,
to 'CCC' from 'B-'. At the same time, S&P revised the CreditWatch
listing to developing from negative. S&P originally placed the
company's ratings on CreditWatch with negative implications on
Aug. 12, 2008, following the company's drawdown of its revolving
credit facility after the end of the second quarter, and
subsequently lowered the rating to 'B-' from 'B' on Oct. 22, 2008.
As of Sept. 27, 2008, Simmons had close to US$1.3 billion in total
debt, including debt at its holding company, Simmons Super Holding
Co.
===========
X X X X X X
===========
* Morgan Stanley Says LatAm Economy to Suffer Worst Recession
-------------------------------------------------------------
Latin America's economy will probably suffer its worst recession
since 1983 next year as falling commodity prices shrink export
revenue and lending dries up, ending a five-year "era of
abundance," Bloomberg News reports citing Morgan Stanley.
Bloomberg News says New York-based economists led by Gray Newman
expects the region's economies to contract 0.4% next year from a
previous forecast of 1.5%.
According to Bloomberg News, Mr. Newman wrote in a note to clients
governments in the region will struggle to offset the effects of
the global slowdown because they have limited savings and central
banks may be reluctant to stimulate economies through interest-
rate cuts on concern weakening currencies will spark inflation.
"The five years of what I call the era of abundance was about the
hand Latin America was being dealt, not how policy makers were
playing the hand," Mr. Newman told Bloomberg News in a telephone
interview. "Now, commodity prices are low rather than high,
access to credit is hard rather than easy -- its hard to handicap
the duration and severity of the current downturn."
Bloomberg News relates Morgan Stanley predicted:
-- Argentina's economy will contract 2.2%,
-- Mexico's GDP will drop 1.5%,
-- Venezuela's economy will contract 1%, and
-- Brazil's economy probably won't expand next year.
***********
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, Marites O. Claro, Joy
A. Agravente, Pius Xerxes V. Tovilla, Rousel Elaine C. Tumanda,
Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman,
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 * * *