Standard & Poor's Announces: Senior Shares of Brazil's Parmalat FIDC Redeemed Early.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 28, 2004 Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today announced that the shareholders of Parmalat - Fundo de Investimento em Direitos Creditorios (the Parmalat FIDC FIDC Federazione Italiana Della Caccia (Italian) FIDC Falkland Islands Development Corporation ) voted for an early redemption of their senior shares of the fund during the Jan. 19, 2004, shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. . On the same day, these investors received their original invested amount plus the respective targeted return on their investment (the Brazilian Spot Depositos Interfinanceiros index plus 1.7%). The shareholders received Brazilian reais (BrR) 112.8 million, the fund's holdings on its senior shares, out of a total BrR132 million (including the subordinated shares). The originators of the credit receivables, Parmalat Brasil S.A. and Batavia S Batavia, city, United States Batavia (bətā`vēə), city (1990 pop. 16,310), seat of Genesee co., W N.Y.; inc. 1915. It was laid out in 1801 by Joseph Ellicott, agent for the Holland Land Company. .A., in Brazil, retained BrR19.2 million in subordinated shares. During the shareholders' meeting, the fund's sponsor, Intrag DTVM DTVM Digital Television Monitor Ltda, and the servicer of the fund, Banco Itau S.A., announced that the originators, both indirectly controlled subsidiaries of Parmalat SpA, will not be repaid their original investment in the subordinated shares until the fund is fully liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. . Intrag DTVM and Banco Itau also decided during the shareholders' meeting to maintain the legal structure of the fund by retaining a symbolic senior share equivalent to BrR21,250 and having the originators retain an additional subordinated share equal to BrR3,750, until a new shareholder meeting takes place. At that meeting, the shareholders will decide whether to change the terms and conditions of the fund (regulamento) to adapt it for other investment purposes or, instead, to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the remainder of the shares in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. . The remaining holdings of the Parmalat FIDC comprise permitted investments not related to Parmalat SpA or any of its subsidiaries. These permitted investments consist of overnight investments in 'brAA' rated financial institutions, government bonds, or shares of other fixed-income funds rated or assessed by Standard & Poor's. Following the early redemption, Standard & Poor's 'brAAAf' rating on the senior shares of the Parmalat FIDC will be maintained until the fund is either formally liquidated (Standard & Poor's would then withdraw its rating) or the fund's investment objectives are changed (Standard & Poor's would likely change its rating). For more information, please see the article titled "Brazil's Parmalat FIDC and Italy's Parmalat SpA: No Strings Attached," published Jan. 15, 2004, on RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. The article is also available on the Standard & Poor's Web site, at wwww.standardandpoors.com. Select Credit Ratings, and then locate the article, dated Jan. 16, 2004, under Commentary & News. In addition, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Brazilian regulations, the fund's sponsor must rebalance the Parmalat FIDC's portfolio (adjust the portfolio composition to the limits established by the regulation) by Feb. 27, 2004; therefore, discussions on the fund's investment objectives and Standard & Poor's rating withdrawal process are expected to be concluded by that date. The Parmalat FIDC is a closed-ended fund whose main underlying assets originally consisted of trade receivables directly originated by Parmalat Brasil and Batavia (through the sale of shipped products to specified obligors), cash, and other specified investments. Senior shares of the fund originally totaled BrR110.5 million and were sold to investors Nov. 27, 2003, while the subordinated shares (originally BrR19.5 million) were retained by the originators. The fund had an original defined final maturity of three years from Nov. 27, 2003. For additional information on the Parmalat FIDC or credit receivables funds in Brazil, please contact: Juan P. De Mollein, Structured Finance Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , at (1) 212-438-2536 or via e-mail at juan_demollein@standardandpoors.com; Diane Audino, Structured Finance Latin America in New York, at (1) 212-438-2388 or via e-mail at diane_audino@standardandpoors.com; or Sergio Garibian, Investment Services, Sao Paulo, at (55) 11-5501-8944, or via e-mail at sergio_garibian@standardandpoors.com. Standard & Poor's, a division of The McGraw-Hill Companies, provides widely recognized financial data, analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. research and investment, and credit opinions to the global capital markets. With more than 5,000 employees located in 20 countries, Standard & Poor's is an integral part of the global financial infrastructure. Additional information is available at www.standardandpoors.com. |
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