/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/081208.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, December 8, 2008, Vol. 9, No. 243 Headlines A R G E N T I N A AES CORP: Argentine Unit Denies Criminal Fraud Charges AEROLINEAS ARGENTINAS: Gov't to Seize Airline from Spanish Owners A & T OBRAS: Trustee Verifying Proofs of Claim Until March 31 BLINTY SERVICES: Trustee Verifying Proofs of Claim Until Feb. 18 COMPAATIA DE: Trustee Verifying Proofs of Claim Until February 26 EMBRATEL: Gets Regulators' OK to Expand Fixed-Wireless Networks FRUITFUL SA: Trustee Verifying Proofs of Claim Until March 11 JUAN A. CASSANELLO: Proofs of Claim Verification Due on April 15 METALES DEL: Trustee Verifying Proofs of Claim Until March 30 * ARGENTINA: Pres. Unveils Stimulus Plan to Combat Global Crisis B A H A M A S FORD MOTOR: Car Sales Drop to 118,818; Down 30% from 2007 FORD MOTOR: Sufficient Liquidity Cues Moody's to Keep Caa1 Ratings B A R B A D O S GENERAL MOTORS: Moody's Cuts Corporate Family & Debt Ratings to Ca GENERAL MOTORS: Reports 154,877 Deliveries in November 2008 B E R M U D A CA MANAGERS: Creditors' Proofs of Debt Due on December 15 CA MANAGERS: Member's Final Meeting Set for December 31 CHUBB INVESTMENT: Creditors' Proofs of Debt Due on December 15 CHUBB INVESTMENT: Final Meeting Set for December 31 CHUBB RE: Creditors' Proofs of Debt Due on December 15 CHUBB RE: Final Meeting Set for December 31 HISCOX LTD: To Close Bermuda Insurance Team KELLEY ASSURANCE: Creditors' Proofs of Debt Due on December 15 KELLEY ASSURANCE: Members' Final Meeting Set for December 31 PARKCENTRAL GLOBAL: Appoints Morrison & Thresh as Liquidators STEWARDSHIP: Appoints Mitchell & Hunter as Provisional Liquidators TT INTERNATIONAL: Creditors' Proofs of Debt Due on December 17 TT INTERNATIONAL: Members' Final Meeting Set for January 14 B R A Z I L BANCO ITAU: To Close 10% of Taii Consumer Credit Units BNDES: Provides BRL1.15 Billion Loan to ETH Bioenergia CVRD: To Cut Output and Halt Canadian Ops. on Weak Metal Demand CVRD: JV Project With Baosteel Faces Delay on Relocation Issues DELPHI CORP: Court OKs Creditors' Retention of Moelis & Co. DELPHI CORP: Wins Court OK for GM Liquidity Enhancement Deals C A Y M A N I S L A N D S BUNGE FERTILIZANTES: Members' Final Meeting Set for December 12 BUNGE TRADE: Final Meeting Set for December 12 CEVAL INTERNATIONAL: Final Meeting Set for December 12 COPLEY CAPITAL: Final Meeting Set for December 12 COPLEY CAPITAL: Final Meeting Set for December 12 CSAI LETTRS: Members Receive Wind-Up Report EAST ISLAND: Members Receive Wind-Up Report FIRST EAGLE: Final Meeting Set for December 12 GRANT PARK: Final Meeting Set for December 12 HARTFORD LEVERAGED: Final Meeting Set for December 25 HARTFORD LEVERAGED: Final Meeting Set for December 12 HEWLETT-PACKARD: Final Meeting Set for December 12 KALLISTA ARBITRAGE: Final Meeting Set for December 12 LADIES MATE: Final Meeting Set for December 12 YKPI HOLDINGS: Final Meeting Set for December 12 C H I L E * CHILE: Posts Deflation in Nov. Since 2007 on Low Fuel Prices E C U A D O R * ECUADOR: Looks to Repudiate Debt; May Ask Loan from Iran E L S A L V A D O R AES EL SALVADOR: Moody's Cuts Senior Unsecured Rating to 'Ba1' G U A T E M A L A BANCO INDUSTRIAL: Fitch Affirms 'BB' Long-Term Currency IDRs M E X I C O BALLY TOTAL: Gets Access to Cash Collateral to Fund Ch. 22 Case CEMEX: World Bank Unit OKs to Hear Complaint Against Venezuela FERROCARRIL MEXICANO: Cuts Debt With MXP1.2 Billion Payment METROFINANCIERA SA: Fitch Puts Low-B IDR Ratings on Watch Evolving * MEXICO: MXP15 Bil. Bond Buyback Flops as Officials Reject Offers P U E R T O R I C O PILGRIM'S PRIDE: Receives Approval of "First Day" Motions PILGRIM'S PRIDE: Sec. 341 Meet of Creditors Scheduled for Jan. 30 PILGRIM'S PRIDE: To Timely Pay for Goods Delivered Postpetition PILGRIM'S PRIDE: Proposes to Pay Pre-Bankruptcy Dues to Growers X X X X X X X X * BOND PRICING: For the Week December 1 - December 5, 2008 * Detroit 3 Willing to Work Under Gov't Oversight Board - - - - - ================= A R G E N T I N A ================= AES CORP: Argentine Unit Denies Criminal Fraud Charges ------------------------------------------------------ AES Corporation's Argentina unit, Edelap, denied any wrongdoings after Argentina's electricity regulator, ENRE, filed charges against them in a federal criminal court, Taos Turner of Dow Jones Newswires writes. According to Reuters, the regulator alleged Edelap of defrauding the state. Reuters says the lawsuit, filed before the No. 27 National Criminal and Correctional Court, comes days after blackouts in large parts of the country during a heat wave. As reported by the Troubled Company Reporter - Latin America on Dec. 4, 2008, Reuters said according to the Planning Ministry, Argentina's government has found accounting irregularities in AES Corp's Argentina unit, Edelap, adding they are considering taking legal actions. According to Reuters, the Planning Ministry said an audit had revealed an "irregular" debt operation had benefited AES but left Edelap without sufficient funds to guarantee services. "As a result of this maneuver, profit has shifted from Edelap to AES ... Edelap remains in debt and cannot carry out the necessary investments to maintain the service," the Ministry said. DJ Newires relates Edelap said its accounting practices are not in any way unusual or inappropriate. Edelap's "accounting records reflect its net assets, economic and financial situation according to Argentine accounting norms and it has been audited regularly and repeatedly by internationally respected independent auditors," the report quoted the company as saying. About AES Corporation The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of the world's largest global power companies, with 2007 revenues of US$13.6 billion. With operations in 29 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. * * * As reported in the Troubled Company Reporter-Latin America on May 16, 2008, Moody's affirmed the ratings of AES, including the company's Corporate Family Rating at B1, its Probability of Default Rating at B1, its senior secured credit facilities at Ba1, its second priority senior secured notes at Ba3, its senior unsecured notes at B1 and its trust preferred securities at B3. Moody's said the rating outlook for AES is stable. AEROLINEAS ARGENTINAS: Gov't to Seize Airline from Spanish Owners ----------------------------------------------------------------- Aerolineas Argentinas could be back into the government's hands after Argentina's lower house of Congress approved legislation to seize the country's biggest airline from its Spanish owners Grupo Marsans, BBC News reports. As reported by the Troubled Company Reporter - Latin America on Oct. 21, 2008, Reuters said Argentina's government and Marsans agreed to extend talks for one more month to set a price for the state takeover of Aerolineas Argentinas after failing to reach a decision on how much the airline is worth. The TCR, citing The Financial Times, reported that with the airline crippled by debts of US$890 million and staff strikes, Marsans agreed in July to sell up at a mutually agreed price, but stark differences over what the losing company is worth have raised the prospect of a prolonged battle for control. According to BBC, a congressional committee recommended that Aerolineas Argentinas and its subsidiary, Austral, be simply taken over, arguing that they were worthless. BBC relates Marsans, which says an audit it commissioned from Credit Suisse put the combined value at around US$450 million, has vowed to seek compensation at the World Bank's arbitration tribunal should the takeover proceed, saying it has invested some US$900 million in the company. About Aerolineas Argentinas Aerolineas Argentinas is Argentina's largest domestic and international airline. It is the national airline and carries around 70% of Argentina's domestic traffic and 40% of international flights from Ministro Pistarini International Airport, which is located in Ezeiza, Buenos Aires. Aerolineas Argentinas and LAN Airlines are the only Latin American airlines that fly to Oceania. A & T OBRAS: Trustee Verifying Proofs of Claim Until March 31 ------------------------------------------------------------- The court-appointed trustee for A & T Obras Civiles e Industriales S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 31, 2009. The trustee will present the validated claims in court as individual reports on May 15, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 25, 2009. BLINTY SERVICES: Trustee Verifying Proofs of Claim Until Feb. 18 ---------------------------------------------------------------- The court-appointed trustee for Blinty Services S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until Feb. 18, 2009. The trustee will present the validated claims in court as individual reports on April 1, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on May 13, 2009. COMPAATIA DE: Trustee Verifying Proofs of Claim Until February 26 ----------------------------------------------------------------- The court-appointed trustee for Compaatia de Charly S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until February 26, 2009. The trustee will present the validated claims in court as individual reports on April 20, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 5, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on December 3, 2009. EMBRATEL: Gets Regulators' OK to Expand Fixed-Wireless Networks --------------------------------------------------------------- Embratel Participacoes SA has been granted permission by industry regulator Anatel to expand their fixed-wireless networks, Telegeography News reports, citing BNamericas According to the report, the company submitted requests to use wireless in the local loop (WiLL) technology, following which the watchdog decided to authorize the use of the 1900MHz band for fixed-wireless services without the need to hold a licence. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. * * * Embratel Participacoes continues to carry Moody's "B1" local currency issuer rating and "B2" senior unsecured debt rating. FRUITFUL SA: Trustee Verifying Proofs of Claim Until March 11 ------------------------------------------------------------- The court-appointed trustee for Fruitful S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 11, 2009. The trustee will present the validated claims in court as individual reports on April 28, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 11, 2009. JUAN A. CASSANELLO: Proofs of Claim Verification Due on April 15 ---------------------------------------------------------------- The court-appointed trustee for Juan A. Cassanello y Cia. S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until April 15, 2009. The trustee will present the validated claims in court as individual reports on June 2, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 16, 2009. METALES DEL: Trustee Verifying Proofs of Claim Until March 30 ------------------------------------------------------------- The court-appointed trustee for Metales del Talar S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until March 30, 2009. The trustee will present the validated claims in court as individual reports on May 15, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 30, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on December 22, 2009. * ARGENTINA: Pres. Unveils Stimulus Plan to Combat Global Crisis ---------------------------------------------------------------- Argentine President Cristina Fernandez de Kirchner unveiled a ARS13.2 billion (US$3.9 billion) plan to spur the country's consumption and exports in a bid to counter the effects of the global financial crisis, Bill Faries of Bloomberg News writes. According to the report, President Fernandez said the government will fund reduced-interest loans for consumers and companies, as well as make export financing cheaper. She also announced a five percentage-point cut in export taxes on wheat and corn, and said further reductions are possible. The announcement, the report notes, comes as Argentina's economy shows signs that it's reaching the end of almost six years of 8.5% annual growth. UBS Pactual economist Javier Kulesz said in a report obtained by Bloomberg News that Argentina's economy will shrink 1% in the fourth quarter this year and will grow 0.3% in 2009. Bloomberg News reports President Fernandez's proposal includes ARS3.5 billion to provide loans for purchases of goods, and ARS3.1 billion to help the auto industry by offering financing. The report relates President Fernandez said companies that take part in the plan will have to maintain personnel levels. Bloomberg News states banks will offer loans at fixed rates of 11% for one year to help finance exports and investments, aiming to help give companies "more certainty" over their access to financing. President Fernandez, the report adds, said taxes on wheat and corn exports will decline to 23% and 20%, respectively. "Cutting export taxes by 5 percentage points on wheat and corn is almost meaningless," the report quoted Hugo Biolcati, president of the Rural Society, the country's biggest farm group and an advocate of eliminating export taxes, as saying. "Credit to fund an activity that isn't profitable is a lead-filled lifejacket." As reported by the Troubled Company Reporter - Latin America on November 7, 2008, Standard & Poor's Ratings Services lowered its foreign and local currency sovereign credit ratings on the Republic of Argentina to 'B-/C' from 'B/B'. The outlook remains stable. ============= B A H A M A S ============= FORD MOTOR: Car Sales Drop to 118,818; Down 30% from 2007 --------------------------------------------------------- Ford, Lincoln, and Mercury outpaced industry-wide November sales, thanks largely to F-Series truck sales, and grew its retail and total market share for the second straight month. Ford, Lincoln, and Mercury dealers reported total sales of 118,818 in November, down 30% versus a year ago, while industry-wide auto sales in November were down an estimated 35% as the weakening economy continues to take a toll on consumer confidence and spending. "The economy continues to weaken and auto sales reflect this reality," said Jim Farley, Ford Group Vice President of Marketing and Communications. "At Ford, we are focused on executing our plan. In 2009 and 2010, we'll launch an unprecedented number of new vehicles, and every product will offer consumers the best or among the best fuel economy in its class." In recent weeks, Ford Motor has received significant endorsements from independent third parties for its quality and safety. Ford Motor's initial vehicle quality is now on par with Toyota and Honda, and Ford Motor now has more 5-star vehicles and Insurance Institute for Highway Safety (IIHS) "Top Safety Picks" than any other company in the industry. November marked the official introduction of the all-new F-150. F- Series sales totaled 37,911 including nearly 5,000 all-new 2009 model F-150s. Ford Motor's F-Series has been America's No. 1- selling truck for 31 years in a row, and the new F-150 is designed and engineered to further raise the bar in the light- duty pickup market. The 2009 model Ford F-150 has class-leading capability with 11,300 pounds towing and 3,030 pounds payload and unsurpassed fuel economy of 21 mpg highway with the SFE package, which is available on F-150's highest-volume XL and XLT series. The new 2009 F-150 also earned the IIHS's "Top Safety Pick" award, the Texas Auto Writers Association's "Truck of Texas" top honor and is projected to have the best residual value of full-size light-duty pickups according to the Automotive Leasing Guide. North American Production The company plans to produce 430,000 vehicles in the first quarter of 2009. During the first quarter of 2008, the company produced 692,000 vehicles. The fourth quarter 2008 production plan is unchanged from the previously announced plan of 430,000 vehicles. "We believe the economy will continue to weaken in 2009," said Mr. Farley. "Our near-term production plan reflects this view, as we continue to align capacity with customer demand." FORD MOTOR COMPANY NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ Sales By Brand Ford 103,055 147,310 -30.0 1,571,543 1,927,596 -18.5 Lincoln 8,019 8,744 -8.3 98,242 121,422 -19.1 Mercury 7,744 13,204 -41.4 111,375 155,791 -28.5 ----- ------ ------ ------- Total Ford, Lincoln and Mercury 118,818 169,258 -29.8 1,781,160 2,204,809 -19.2 Volvo 4,404 8,227 -46.5 68,149 96,872 -29.7 ----- ----- ------ ------ Total Ford Motor Company 123,222 177,485 -30.6 1,849,309 2,301,681 -19.7 Ford, Lincoln And Mercury Sales By Type Cars 37,272 54,439 -31.5 628,878 698,252 -9.9 Crossover Utility Vehicles 22,016 33,271 -33.8 340,471 372,747 -8.7 Sport Utility Vehicles 10,586 17,575 -39.8 148,084 253,389 -41.6 Trucks and Vans 48,944 63,973 -23.5 663,727 880,421 -24.6 ------ ------ ------- ------- Total Trucks 81,546 114,819 -29.0 1,152,282 1,506,557 -23.5 ------ ------- --------- --------- Total Vehicles 118,818 169,258 -29.8 1,781,160 2,204,809 -19.2 FORD BRAND NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ Crown Victoria 2,934 5,170 -43.2 45,550 56,456 -19.3 Taurus 3,040 3,895 -22.0 49,207 61,770 -20.3 Fusion 8,914 12,278 -27.4 137,295 136,007 0.9 Focus 8,194 13,213 -38.0 184,152 159,190 15.7 Mustang 3,667 7,352 -50.1 87,224 126,311 -30.9 GT 0 0 NA 0 231 -100.0 - - - --- Ford Cars 26,749 41,908 -36.2 503,428 539,965 -6.8 Flex 2,203 0 NA 11,772 0 NA Edge 5,080 12,594 -59.7 104,861 116,403 -9.9 Escape 10,019 12,383 -19.1 145,577 152,294 -4.4 Taurus X 1,234 2,728 -54.8 22,141 37,343 -40.7 ----- ----- ------ ------ Ford Crossover Utility Vehicles 18,536 27,705 -33.1 284,351 306,040 -7.1 Expedition 4,371 5,627 -22.3 51,290 82,771 -38.0 Explorer 4,763 8,609 -44.7 73,093 126,930 -42.4 ----- ----- ------ ------- Ford Sport Utility Vehicles 9,134 14,236 -35.8 124,383 209,701 -40.7 F-Series 37,911 46,568 -18.6 473,933 635,520 -25.4 Ranger 3,311 4,938 -32.9 62,017 67,147 -7.6 Econoline/ Club Wagon 6,915 11,100 -37.7 116,763 153,876 -24.1 Freestar 0 0 NA 0 2,390 -100.0 Low Cab Forward 34 151 -77.5 809 2,573 -68.6 Heavy Trucks 465 704 -33.9 5,859 10,384 -43.6 --- --- ----- ------ Ford Trucks and Vans 48,636 63,461 -23.4 659,381 871,890 -24.4 ------ ------ ------- ------- Ford Brand 103,055 147,310 -30.0 1,571,543 1,927,596 -18.5 LINCOLN BRAND NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ MKS 1,958 0 NA 10,882 0 NA MKZ 1,805 2,712 -33.4 28,028 31,190 -10.1 Town Car 1,454 488 198.0 14,285 26,545 -46.2 MKX 1,526 3,360 -54.6 26,962 34,097 -20.9 Navigator 968 1,672 -42.1 13,739 21,759 -36.9 Mark LT 308 512 -39.8 4,346 7,831 -44.5 --- --- ----- ----- Lincoln Brand 8,019 8,744 -8.3 98,242 121,422 -19.1 MERCURY BRAND NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ Grand Marquis 2,437 4,702 -48.2 27,495 46,577 -41.0 Sable 1,230 1,180 4.2 15,586 19,663 -20.7 Milan 1,639 3,449 -52.5 29,174 34,312 -15.0 Mariner 1,954 2,206 -11.4 29,158 32,610 -10.6 Mountaineer 484 1,667 -71.0 9,962 21,929 -54.6 Monterey 0 0 NA 0 700 -100.0 - - - --- Mercury Brand 7,744 13,204 -41.4 111,375 155,791 -28.5 VOLVO BRAND NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ S40 622 1,239 -49.8 9,260 16,997 -45.5 V50 166 239 -30.5 1,723 2,665 -35.3 S60 431 1,575 -72.6 8,700 17,043 -49.0 S80 844 764 10.5 10,079 11,614 -13.2 V70 191 326 -41.4 3,003 3,428 -12.4 XC70 504 1,153 -56.3 8,708 11,179 -22.1 XC90 1,145 2,244 -49.0 17,338 27,993 -38.1 C70 216 298 -27.5 5,358 4,220 27.0 C30 285 389 -26.7 3,980 1,733 129.7 --- --- ----- ----- Volvo Brand 4,404 8,227 -46.5 68,149 96,872 -29.7 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: Sufficient Liquidity Cues Moody's to Keep Caa1 Ratings ------------------------------------------------------------------ Moody's Investors Service affirmed the Caa1 Corporate Family and Probability of Default ratings of Ford Motor Company. The company's Speculative Grade Liquidity rating is unchanged at SGL-3, and the company's rating outlook remains negative. The affirmation reflects Moody's view that Ford's current liquidity position, which consisted of US$18.9 billion of cash and US$10.7 billion of committed credit facilities at Sept. 30, should be sufficient to cover the company's cash requirements during the coming twelve months. Moody's noted, however, that Ford continues to face considerable operating, competitive and financial challenges that contribute to the negative outlook and which could result in pressure on the ratings. These challenges include a potential decline in US automotive shipments below the 12.5 million unit level underlying Ford's operating plan, greater-than anticipated erosion in the important European markets, or delays in achieving planned cost reductions. Moody's also notes that Ford has submitted a proposal to receive a US$9 billion loan commitment from the US government that might be drawn if market conditions are more difficult than anticipated. While the provision of such a loan would likely strengthen the company's liquidity profile, Moody's would assess the degree to which the granting of security for such government loans or the other terms and conditions which might be necessary to obtain such loans would have any adverse implications for existing rated obligations. The last rating action on Ford was a downgrade of the company's Corporate Family Rating to Caa1 from B3 on Nov. 7, 2008. Ford Motor Company, headquartered in Dearborn, Michigan, is a leading global automotive manufacturer. =============== B A R B A D O S =============== GENERAL MOTORS: Moody's Cuts Corporate Family & Debt Ratings to Ca ------------------------------------------------------------------ Moody's Investors Service has downgraded the debt ratings of General Motors Corporation, Corporate Family and Probability of Default ratings to Ca from Caa2, in recognition of the increased probability of a balance sheet restructuring which results in a loss for current debtholders. Moody's would view the company's potential balance sheet restructuring, which is likely to cause bondholder losses, to be a distressed exchange which would be treated as a default for analytic purposes. The rating outlook is negative and the company's Speculative Grade Liquidity Rating is affirmed at SGL-4. The ratings of GMAC LLC are not affected by these GM rating actions. In its Restructuring Plan for Long-term Viability submitted to the Senate Banking Committee and House of Representatives Financial Services Committee on December 2, 2008, General Motors indicated that its restructuring plan "includes, and is conditioned upon, significant sacrifice and deleveraging of its balance sheet." Specifically, the plan references a reduction of GM's total debt, including VEBA-related obligations from US$62 billion to approximately US$30 billion with a corresponding increase in book equity from (US$65.1) billion to approximately (US$32) billion. GM has not specifically identified the mechanism for implementing the balance sheet restructuring, nor has it made any specific proposals to bondholders. Nevertheless, the plan is suggestive of a transaction that would be viewed as a distressed exchange by Moody's if implemented. Importantly, GM has indicated that its plan would "preserve the status of existing trade creditors" and "would honor terms and provisions of all outstanding warranty obligations to both consumers and dealers." Preservation of trade creditors will be critical to avoid any disruption in the company's supply chain and continuing to honor warranty obligations will help to avoid significant erosion of the company's continuing vehicle brands during the restructuring process. Failure in either of these areas could exacerbate the challenges that the company faces and increase the risk of a bankruptcy filing. In its filing, GM has requested a total of US$18 billion of government funding be made available to it to bridge the liquidity pressures which it anticipates in its business plan. According to GM, the funding would enable the company to maintain global liquidity above its minimum threshold of about US$11 billion even if automotive industry conditions were to worsen such that U.S. automotive sales were to fall to 10.5 million units in 2009. The plan calls for a reduction in the number of GM's brands, nameplates and retail dealers, cost reductions that would be designed to achieve labor cost competitiveness with foreign manufacturers in the U.S. by 2012 and changes to the company's VEBA related obligations. Moody's Senior Vice President Bruce Clark stated that "while the plan provides a general framework for a business restructuring, the success of the plan will be contingent on negotiations with labor, creditors and government agencies. The uncertainty of a successful outcome along with the likelihood of debtholder losses even if the plan succeeds is the basis for the downgrade and negative outlook." Downgrades: Issuer: General Motors Corporation -- Probability of Default Rating, Downgraded to Ca from Caa2 -- Corporate Family Rating, Downgraded to Ca from Caa2 -- Senior Secured Bank Credit Facility, Downgraded to a range of B3, LGD1, 4% from a range of B1, LGD1, 4% -- Senior Unsecured debt and IRB's, Downgraded to a range of C, LGD5, 71% from a range of Caa3, LGD4, 61% -- Senior Unsecured Shelf, Downgraded to a range of (P)C, LGD5, 71% from a range of (P)Caa3, LGD4, 61% -- Multiple Seniority Shelf for subordinated debt and preferred, Downgraded to a range of (P)C, LGD 6, 97% from a range of (P)Ca, LGD 6, 97% Issuer: General Motors Nova Scotia Finance Company -- Senior Unsecured Regular Bond/Debenture, Downgraded to a range of C, LGD5, 71% from a range of Caa3, LGD4, 61% -- Senior Unsecured Shelf, Downgraded to a range of (P)C, LGD5, 71% from a range of (P)Caa3, LGD4, 61% Issuer: General Motors of Canada Limited -- Senior Secured Bank Credit Facility, Downgraded to a range of B3, LGD1, 4% from a range of B1, LGD1, 4% Issuer: Vauxhall Motors (Finance) PLC -- Senior Unsecured Regular Bond/Debenture, Downgraded to a range of C, LGD5, 71% from a range of Caa3, LGD4, 61% The last rating action on GM was a downgrade of the company's Corporate Family Rating to Caa2 on Oct. 27, 2008. General Motors Corporation, headquartered in Detroit, Michigan, is the world's second-largest automotive manufacturer. GENERAL MOTORS: Reports 154,877 Deliveries in November 2008 ----------------------------------------------------------- General Motors Corp. dealers in the United States delivered 154,877 vehicles in November 2008, down 41% compared with a year ago. GM car sales of 58,786 were off 44% and truck sales of 96,091 were down 39%. The steep decline in vehicle sales was largely due to a significant drop in the market's retail demand compared with last year, and continuing economic uncertainty that has negatively impacted consumer confidence. "In November we saw the continuation of the dramatic decline in volume for the industry. Every manufacturer is posting awful numbers and we are no exception," said Mark LaNeve, Vice President of GM North America Vehicle Sales, Service and Marketing. "We have outstanding products in the market, so it is particularly frustrating when economic uncertainty takes our customers out of the market. There were about 34%, or 400,000, fewer vehicles sold this November in the industry than a year ago -- this is the annual volume of two full production plants that have simply evaporated in a single month. The global economic crisis and credit freeze have had a very negative impact on the vehicle market which runs on consumer confidence and available financing." Mr. LaNeve added, "The fact that we have outstanding, high quality, fuel efficient products and great deals in almost every market segment is not driving demand right now. The consumer is scared and sitting on the sideline. We need appropriate economic stimulus to get the consumer back in the game." To offer customers an outstanding value at year-end, GM's Red Tag Event continues through Jan. 5, 2009. The Red Tag Event provides great deals on most new vehicles in GM's portfolio by offering a special Red Tag vehicle price and customer cash back. GM's "Financing That Fits" program enables consumers to find financing at affordable rates from GMAC and thousands of other banks, credit unions and financing institutions. Despite the weak market in November, Chevrolet Malibu continued its solid performance with total sales up 31% compared with last November. Year to date, Malibu total sales have now exceeded 160,000 cars, up 39 % from the same period last year. With its six-speed transmission and four-cylinder engine combination, the Malibu delivers an EPA-estimated 33 mpg highway -- tops in the industry's mid-car segment. The Malibu Hybrid also offers the lowest- priced hybrid in the segment. GM hybrids continue to build sales momentum. A total of 1,335 hybrid vehicles were delivered in the month. Hybrid sales included: 404 hybrid Chevrolet Tahoe, 190 GMC Yukon and 173 Cadillac Escalade 2-mode SUVs delivered. There were 195 Chevrolet Malibu, 45 Saturn Aura and 328 Vue hybrids sold in November. Hybrids comprised 10 percent of combined Yukon/Tahoe retail sales and 12% of Escalade retail sales in the month. So far in 2008, GM has sold a total of 11,884 hybrids. GM inventories dropped compared with a year ago. In November, only about 862,000 vehicles were in stock, down about 130,000 vehicles (or about 13 percent) compared with last year. There were about 379,000 cars and 483,000 trucks (including crossovers) in inventory at the end of November. Certified Used Vehicles November 2008 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre- Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre- Owned Vehicles, were 33,731 vehicles, down 10% from November 2007. Year-to-date sales are 442,182 vehicles, down 7% from the same period last year. GM Certified Used Vehicles, the industry's top-selling certified brand, posted November sales of 28,607 vehicles, down more than 12 percent from November 2007. Saturn Certified Pre-Owned Vehicles sold 863 vehicles, down 16%. Cadillac Certified Pre-Owned Vehicles sold 3,453 vehicles, up 7%. Saab Certified Pre-Owned Vehicles sold 552 vehicles, up 18%, and HUMMER Certified Pre-Owned Vehicles sold 256 vehicles, up 95%. "November sales for certified GM programs were down overall, as the growing economic uncertainty last month continued to impact consumer confidence and demand for vehicles, both new and used," said Mr. LaNeve. "We're pleased to see the Cadillac, Saab and Hummer CPO programs post solid sales gains from last November as shoppers continue to seek value and peace of mind in this challenging retail environment." GM North America November 2008 Production In November, GM North America produced 249,000 vehicles (109,000 cars and 140,000 trucks). This is down 117,000 vehicles or 32 percent compared with November 2007 when the region produced 366,000 vehicles (134,000 cars and 232,000 trucks). (Production totals include joint venture production of 8,000 vehicles in November 2008 and 22,000 vehicles in November 2007.) The GM North America fourth-quarter production forecast is 835,000 vehicles (380,000 cars and 455,000 trucks) which is down about 20% compared with a year ago. GM North America built 1.042 million vehicles (358,000 cars and 684,000 trucks) in the fourth-quarter of 2007. The initial GM North America first-quarter 2009 production forecast is 600,000 vehicles (235,000 cars and 365,000 trucks) which is down about 32% compared with a year ago. GM North America built 885,000 vehicles (360,000 cars and 525,000 trucks) in the first-quarter of 2008. First quarter 2008 production was reduced nearly 100,000 vehicles due to the strike at American Axle. General Motors United States Deliveries *S/D Curr: 25 November *S/D Prev: 25 2008 2007 % Chg %Chg per Volume S/D Vehicle Total 154,877 263,654 -41.3 -41.3 Car Total 58,786 105,077 -44.1 -44.1 Light Truck Total 94,618 156,196 -39.4 -39.4 Light Vehicle Total 153,404 261,273 -41.3 -41.3 Truck Total 96,091 158,577 -39.4 -39.4 GM Car Deliveries - (United States) November 2008 November 2008 2007 % Chg %Chg per Volume S/D Selling Days (S/D) 25 25 Century 0 0 ***.* ***.* LaCrosse 2,086 3,134 -33.4 -33.4 LaSabre 0 0 ***.* ***.* Lucerne 3,134 6,080 -48.5 -48.5 Park Avenue 0 0 ***.* ***.* Buick Total 5,220 9,214 -43.3 -43.3 CTS 2,902 5,586 -48.0 -48.0 DeVille 0 0 ***.* ***.* DTS 1,287 3,751 -65.7 -65.7 STS 630 1,928 -67.3 -67.3 XLR 60 97 -38.1 -38.1 Cadillac Total 4,879 11,362 -57.1 -57.1 Aveo 3,321 5,185 -35.9 -35.9 Cavalier 0 0 ***.* ***.* Classic 0 0 ***.* ***.* Cobalt 6,319 13,629 -53.6 -53.6 Corvette 1,093 2,438 -55.2 -55.2 Impala 12,851 22,824 -43.7 -43.7 Malibu 9,469 7,210 31.3 31.3 Monte Carlo 2 498 -99.6 -99.6 SSR 0 1 **.* **.* Chevrolet Total 33,055 51,785 -36.2 -36.2 Bonneville 0 0 ***.* ***.* G5 1,083 2,170 -50.1 -50.1 G6 6,040 11,616 -48.0 -48.0 G8 1,133 0 ***.* ***.* Grand Am 0 0 ***.* ***.* Grand Prix 119 5,743 -97.9 -97.9 GTO 0 25 **.* **.* Solstice 325 1,360 -76.1 -76.1 Sunfire 0 0 ***.* ***.* Vibe 2,683 3,128 -14.2 -14.2 Pontiac Total 11,383 24,042 -52.7 -52.7 9-2X 0 0 ***.* ***.* 9-3 606 1,432 -57.7 -57.7 9-5 111 261 -57.5 -57.5 Saab Total 717 1,693 -57.6 -57.6 Astra 1,106 0 ***.* ***.* Aura 2,161 4,158 -48.0 -48.0 ION 0 2,059 **.* **.* Saturn L Series 0 0 ***.* ***.* Sky 265 764 -65.3 -65.3 Saturn Total 3,532 6,981 -49.4 -49.4 GM Car Total 58,786 105,077 -44.1 -44.1 (Calendar Year-to-Date) January - November 2008 2007 %Chg Volume Selling Days (S/D) Century 0 5 **.* LaCrosse 35,422 44,207 -19.9 LaSabre 0 121 **.* Lucerne 50,779 77,101 -34.1 Park Avenue 0 26 **.* Buick Total 86,201 121,460 -29.0 CTS 54,378 50,252 8.2 DeVille 0 71 **.* DTS 28,667 47,231 -39.3 STS 13,883 18,558 -25.2 XLR 1,151 1,622 -29.0 Cadillac Total 98,079 117,734 -16.7 Aveo 53,103 60,705 -12.5 Cavalier 0 57 **.* Classic 0 17 **.* Cobalt 175,259 183,029 -4.2 Corvette 25,647 30,771 -16.7 Impala 244,692 293,328 -16.6 Malibu 160,898 116,140 38.5 Monte Carlo 710 15,380 -95.4 SSR 13 241 -94.6 Chevrolet Total 660,322 699,668 -5.6 Bonneville 0 130 **.* G5 22,975 25,419 -9.6 G6 132,534 132,894 -0.3 G8 13,523 0 ***.* Grand Am 0 99 **.* Grand Prix 8,371 84,123 -90.0 GTO 52 4,184 -98.8 Solstice 10,338 15,493 -33.3 Sunfire 0 39 **.* Vibe 44,485 33,825 31.5 Pontiac Total 232,278 296,206 -21.6 9-2X 3 118 -97.5 9-3 14,483 21,206 -31.7 9-5 2,418 3,974 -39.2 Saab Total 16,904 25,298 -33.2 Astra 10,813 0 ***.* Aura 56,194 54,645 2.8 ION 314 47,197 -99.3 Saturn L Series 0 2 **.* Sky 8,870 10,620 -16.5 Saturn Total 76,191 112,464 -32.3 GM Car Total 1,169,975 1,372,830 -14.8 GM Truck Deliveries - (United States) November 2008 November 2008 2007 % Chg %Chg per Volume S/D Selling Days (S/D) 25 25 Enclave 2,288 3,834 -40.3 -40.3 Rainier 1 51 -98.0 -98.0 Rendezvous 1 11 -90.9 -90.9 Terraza 6 135 -95.6 -95.6 Buick Total 2,296 4,031 -43.0 -43.0 Escalade 1,870 2,525 -25.9 -25.9 Escalade ESV 752 1,202 -37.4 -37.4 Escalade EXT 338 507 -33.3 -33.3 SRX 976 1,445 -32.5 -32.5 Cadillac Total 3,936 5,679 -30.7 -30.7 Astro 0 0 ***.* ***.* C/K Suburban (Chevy) 3,882 6,033 -35.7 -35.7 Chevy C/T Series 9 12 -25.0 -25.0 Chevy W Series 60 197 -69.5 -69.5 Colorado 2,503 5,428 -53.9 -53.9 Equinox 2,570 5,261 -51.1 -51.1 Express Cutaway/G Cut 1,370 1,709 -19.8 -19.8 Express Panel/G Van 5,870 6,657 -11.8 -11.8 Express/G Sportvan 669 1,368 -51.1 -51.1 HHR 3,421 7,179 -52.3 -52.3 Kodiak 4/5 Series 499 861 -42.0 -42.0 Kodiak 6/7/8 Series 93 208 -55.3 -55.3 S/T Blazer 0 0 ***.* ***.* Tahoe 4,149 9,195 -54.9 -54.9 TrailBlazer 2,556 7,794 -67.2 -67.2 Traverse 2,936 0 ***.* ***.* Uplander 584 5,689 -89.7 -89.7 Venture 0 0 ***.* ***.* Avalanche 1,996 4,144 -51.8 -51.8 Silverado-C/K Pickup 29,534 38,122 -22.5 -22.5 Chevrolet Fullsize Pickups 31,530 42,266 -25.4 -25.4 Chevrolet Total 62,701 99,857 -37.2 -37.2 Acadia 2,640 6,395 -58.7 -58.7 Canyon 627 1,476 -57.5 -57.5 Envoy 852 3,035 -71.9 -71.9 GMC C/T Series 82 50 64.0 64.0 GMC W Series 139 294 -52.7 -52.7 Safari (GMC) 0 0 ***.* ***.* Savana Panel/G Classic 562 1,158 -51.5 -51.5 Savana Special/G Cut 155 212 -26.9 -26.9 Savana/Rally 90 191 -52.9 -52.9 Sierra 10,497 13,840 -24.2 -24.2 Topkick 4/5 Series 317 362 -12.4 -12.4 Topkick 6/7/8 Series 274 397 -31.0 -31.0 Yukon 2,251 4,317 -47.9 -47.9 Yukon XL 1,728 2,822 -38.8 -38.8 GMC Total 20,214 34,549 -41.5 -41.5 HUMMER H1 0 3 **.* **.* HUMMER H2 233 958 -75.7 -75.7 HUMMER H3 1,048 3,068 -65.8 -65.8 HUMMER H3T 173 0 ***.* ***.* HUMMER Total 1,454 4,029 -63.9 -63.9 Other-Isuzu F Series 0 0 ***.* ***.* Other-Isuzu H Series 0 0 ***.* ***.* Other-Isuzu N Series 0 0 ***.* ***.* Other-Isuzu Total 0 0 ***.* ***.* Aztek 0 0 ***.* ***.* Montana 0 0 ***.* ***.* Montana SV6 0 30 **.* **.* Torrent 757 1,968 -61.5 -61.5 Pontiac Total 757 1,998 -62.1 -62.1 9-7X 135 310 -56.5 -56.5 Saab Total 135 310 -56.5 -56.5 Outlook 1,221 3,340 -63.4 -63.4 Relay 1 96 -99.0 -99.0 VUE 3,376 4,688 -28.0 -28.0 Saturn Total 4,598 8,124 -43.4 -43.4 GM Truck Total 96,091 158,577 -39.4 -39.4 (Calendar Year-to-Date) January - November 2008 2007 %Chg Volume Selling Days (S/D) Enclave 41,416 24,560 68.6 Rainier 115 4,715 -97.6 Rendezvous 24 15,258 -99.8 Terraza 532 5,398 -90.1 Buick Total 42,087 49,931 -15.7 Escalade 21,145 33,302 -36.5 Escalade ESV 9,828 14,837 -33.8 Escalade EXT 4,117 7,357 -44.0 SRX 14,755 20,060 -26.4 Cadillac Total 49,845 75,556 -34.0 Astro 0 25 **.* C/K Suburban (Chevy) 48,003 76,900 -37.6 Chevy C/T Series 329 253 30.0 Chevy W Series 1,458 2,483 -41.3 Colorado 49,899 70,306 -29.0 Equinox 61,700 81,848 -24.6 Express Cutaway/G Cut 12,314 18,355 -32.9 Express Panel/G Van 55,692 70,132 -20.6 Express/G Sportvan 12,725 15,176 -16.2 HHR 89,184 95,525 -6.6 Kodiak 4/5 Series 6,442 8,834 -27.1 Kodiak 6/7/8 Series 1,425 2,165 -34.2 S/T Blazer 0 7 **.* Tahoe 85,161 134,905 -36.9 TrailBlazer 70,791 122,554 -42.2 Traverse 4,521 0 ***.* Uplander 39,943 65,708 -39.2 Venture 0 25 **.* Avalanche 31,806 50,449 -37.0 Silverado-C/K Pickup 431,725 564,697 -23.5 Chevrolet Fullsize Pickups 463,531 615,146 -24.6 Chevrolet Total 1,003,118 1,380,347 -27.3 Acadia 62,729 65,372 -4.0 Canyon 13,531 19,451 -30.4 Envoy 22,716 44,649 -49.1 GMC C/T Series 511 943 -45.8 GMC W Series 2,368 3,818 -38.0 Safari (GMC) 0 13 **.* Savana Panel/G Classic 9,651 13,759 -29.9 Savana Special/G Cut 10,166 8,083 25.8 Savana/Rally 1,323 1,817 -27.2 Sierra 155,564 188,461 -17.5 Topkick 4/5 Series 7,450 8,448 -11.8 Topkick 6/7/8 Series 3,933 5,543 -29.0 Yukon 34,663 58,266 -40.5 Yukon XL 22,608 41,620 -45.7 GMC Total 347,213 460,243 -24.6 HUMMER H1 17 122 -86.1 HUMMER H2 5,721 11,281 -49.3 HUMMER H3 19,152 39,250 -51.2 HUMMER H3T 425 0 ***.* HUMMER Total 25,315 50,653 -50.0 Other-Isuzu F Series 0 1,116 **.* Other-Isuzu H Series 0 61 **.* Other-Isuzu N Series 0 6,729 **.* Other-Isuzu Total 0 7,906 **.* Aztek 0 25 **.* Montana 0 26 **.* Montana SV6 64 1,331 -95.2 Torrent 18,560 30,223 -38.6 Pontiac Total 18,624 31,605 -41.1 9-7X 3,285 4,665 -29.6 Saab Total 3,285 4,665 -29.6 Outlook 23,986 31,591 -24.1 Relay 160 1,401 -88.6 VUE 75,097 76,439 -1.8 Saturn Total 99,243 109,431 -9.3 GM Truck Total 1,588,730 2,170,337 -26.8 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 E R M U D A ============= CA MANAGERS: Creditors' Proofs of Debt Due on December 15 --------------------------------------------------------- The creditors of CA Managers (Bermuda) 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. 26, 2008. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda CA MANAGERS: Member's Final Meeting Set for December 31 ------------------------------------------------------- The sole member of CA Managers (Bermuda) Ltd. will hold final general meeting on December 31, 2008, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Nov. 26, 2008. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda CHUBB INVESTMENT: Creditors' Proofs of Debt Due on December 15 -------------------------------------------------------------- The creditors of Chubb Investment Company of Bermuda Limited 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. 25, 2008. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda CHUBB INVESTMENT: Final Meeting Set for December 31 --------------------------------------------------- The sole member of Chubb Investment Company of Bermuda Limited will hold final general meeting on December 31, 2008, at 11:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Nov. 25, 2008. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda CHUBB RE: Creditors' Proofs of Debt Due on December 15 ------------------------------------------------------ The creditors of Chubb Re (Bermuda) 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. 26, 2008. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda CHUBB RE: Final Meeting Set for December 31 ------------------------------------------- The sole member of Chubb Re (Bermuda) Ltd. will hold final general meeting on December 31, 2008, at 10:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Nov. 26, 2008. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda HISCOX LTD: To Close Bermuda Insurance Team ------------------------------------------- Hiscox Ltd will close its Bermuda based specialist reinsurance and insurance team established earlier this year to ensure efficient allocation of capital, the company said in a Dec. 3 statement. The move will not have any material impact on Hiscox International's 2009 business plan, the statement said. Hiscox's treaty reinsurance business in Bermuda will continue under the leadership of Rob Childs. Headquartered in Hamilton, Bermuda, Hiscox Ltd (LSE:HSX) -- http://www.hiscox.com/-- is an international specialist insurer. There are three main underwriting parts of the Group � Hiscox Global Markets, Hiscox UK and Europe and Hiscox International. Hiscox Global Markets underwrites mainly internationally traded business in the London Market � generally large or complex business which needs to be shared with other insurers or needs the international licences of Lloyd's. Hiscox UK and Hiscox Europe offer a range of specialist insurance for professionals and business customers, as well as high net worth individuals. Hiscox International includes operations in Bermuda, Guernsey and USA. Hiscox Insurance Company Limited, Hiscox Underwriting Limited and Hiscox Syndicates Ltd are regulated by the Financial Services Authority. KELLEY ASSURANCE: Creditors' Proofs of Debt Due on December 15 -------------------------------------------------------------- The creditors of Kelley Assurance Group 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. 26, 2008. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda KELLEY ASSURANCE: Members' Final Meeting Set for December 31 ------------------------------------------------------------ The members of Kelley Assurance Group Ltd. will hold their final general meeting on December 31, 2008, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Nov. 26, 2008. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda PARKCENTRAL GLOBAL: Appoints Morrison & Thresh as Liquidators ------------------------------------------------------------- On November 27, 2008, Michael W. Morrison and Charles Thresh were appointed as provisional liquidators of Parkcentral Global Hub Limited. The Provisional Liquidators can be reached at: Michael W. Morrison Charles Thresh KPMG Advisory Limited Bermuda STEWARDSHIP: Appoints Mitchell & Hunter as Provisional Liquidators ------------------------------------------------------------------ On November 27, 2008, Peter C.B. Mitchell and D. Geoffrey Hunter were appointed as provisional liquidators of Stewardship Credit Arbitrage Fund, Ltd. The Provisional Liquidators can be reached at: Peter C.B. Mitchell D. Geoffrey Hunter Marshall, Diel & Myers Sofia House 48 Church Street Hamilton HM 12 Bermuda TT INTERNATIONAL: Creditors' Proofs of Debt Due on December 17 -------------------------------------------------------------- The creditors of TT International (Bermuda) Limited are required to file their proofs of debt by December 17, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Dec. 3, 2008. The company's liquidator is: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, 2 Church Street Hamilton, HM 11, Bermuda TT INTERNATIONAL: Members' Final Meeting Set for January 14 ----------------------------------------------------------- The members of TT International (Bermuda) Limited will hold their final general meeting on January 14, 2009, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Dec. 3, 2008. The company's liquidator is: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, 2 Church Street Hamilton, HM 11, Bermuda =========== B R A Z I L =========== BANCO ITAU: To Close 10% of Taii Consumer Credit Units ------------------------------------------------------ Bloomberg News reports Banco Itau Holding Financeira SA closed 10% of its consumer credit branches, Taii. According to the report, clients can contact customer service or go to Taii's Web site in the cities where the operation has been discontinued. Itau had 756 Taii units at the end of the third quarter, according to Itau's quarterly earnings statement obtained by Bloomberg News. Bloomberg News, citing Folha de S. Paulo newspaper, said the move will result in at least 150 job cuts. Banco Itau Holding Financeira S.A. -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA(Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. The bank has offices in Miami, New York, Hongkong, Lisbon, Luxembourg, Bahamas, the Cayman Islands, Chile and Uruguay. BNDES: Provides BRL1.15 Billion Loan to ETH Bioenergia ------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social SA (BNDES) provided a BRL1.15-billion (US$463 million) loan to ETH Bioenergia, the energy unit of Brazilian conglomerate Odebrecht, for the construction of the company's ethanol mills, Dow Jones Newswires reports. The report relates ETH President Jose Carlos Grubisich said his company will build three ethanol mills in Sao Paulo, Mato Grosso do Sul and Goias states, with the annual capacity to crush 2 million tons of sugarcane in 2009 and will each be gradually expanded to crush up to some 5 million tons per year. According to the report, the bank also issued a further BRL634 million in loans toward projects of local company IACO Agricola as well as to Usina Sao Fernando to build new sugar and ethanol mills in Mato Grosso do Sul state. Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. CVRD: To Cut Output and Halt Canadian Ops. on Weak Metal Demand --------------------------------------------------------------- Companhia Vale do Rio Doce plans to cut output and suspend some operations in Canada because of falling metals demand, Bloomberg News reports. The report relates the company plans to: -- suspend deep-mining operations near Sudbury, Ontario; -- halt the Copper Cliff South mine for an "indeterminate period" starting in January; -- suspend the planned Copper Cliff Deep project for 12 months -- Vale had planned to spend US$138 million next year as part of US$814 million in investments planned for the mine --; and -- stop work at Voisey's Bay on July, which operates the Ovoid mine and a processing plant. "There's no point having production if there is no demand," Vale Chief Executive Officer Roger Agnelli was quoted by the report as saying. "In Sudbury, there are deeper mines that have a higher cost." The company is prepared to cut output at "all" higher-cost mines worldwide, he said. Salman Partners Inc. analyst Raymond Goldie, in a telephone interview, told Bloomberg News the production halts in Canada would reduce global nickel supply by about 1.5% over 12 months. As reported by the Troubled Company Reporter - Latin America on December 5, 2008, Bloomberg News said Companhia Vale 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. A TCRLA report on November 21, 2008, also said the company dropped to the lowest in three years in New York trading on November 20 after JPMorgan Chase & Co. said iron ore prices may fall next year because of slumping demand. 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. CVRD: JV Project With Baosteel Faces Delay on Relocation Issues --------------------------------------------------------------- Companhia Vale do Rio Doce's (CVRD) joint venture with China's Baosteel Group Corp for the construction of a US$4 billion steel- slab may be delayed by six to nine months due to relocation issues with the Brazil government, Helen Yuan of Bloomberg News writes. As reported by the Troubled Company Reporter - Latin America on Dec. 5, 2008, Bloomberg News said CVRD and Baosteel Group Corp. were denied a request to build a steel-slab plant in Anchieta, Brazil because of environmental concerns. In that report, Bloomberg News related Baosteel Cia. Siderurgica de Vitoria (Baosteel CSV), the companies joint venture, was told by the Espirito Santo state that the planned project will be dissolved after a study showed "there's not enough water at Anchieta to supply the needs of a steelworks of that size, and the air quality is at its limit." Companhia Vale and Baosteel, the same report said, planned to invest BRL10 billion aiming to build a plant in Anchieta and deep- water port facilities to produce 5 million tons a year of steel slabs for export to China, Europe and the U.S. The slab mill was due to apply for its environmental license in 2009 and start operations in late 2012, the report noted. "We've spent a lot for the study of the Anchieta project," Bloomberg New cited said Liu An, Baosteel's head of the project, as saying. "Moving to a new site would mean that we have to redo the project again from the very beginning," he added. 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. DELPHI CORP: Court OKs Creditors' Retention of Moelis & Co. ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has approved, on a final basis, the retention of the Official Committee of Unsecured Creditors in Delphi's cases of Moelis & Company LLC, as co-investment banker, in cooperation with Jefferies & Company, Inc., effective nunc pro tunc to July 1, 2008. The Creditors Committee tapped the services of Moelis after professionals of Jefferies who performed investment banking services to the Committee moved to Moelis. According to the transcript of the 31st Omnibus Hearing, Michael Riela, Esq., at Warner Stevens, LLP, informed Judge Drain that Jefferies will continue to be retained in the case, but there was going to be a sharing of the fees. Mr. Riela also assured the Court that the Debtors' estates would not incur additional expenses as a result of the retention of two investment bankers. Committee Chairperson David Daigle said, "At this critical juncture, the Committee needs to be fully engaged in assessing the Debtors' reorganization alternatives without the delay or undue cost that would be incurred by losing the knowledge and expertise the Moelis professionals have. Losing access to these professionals could hinder the Committee's ability to effectively respond to new developments and necessary modifications to the Plan", Mr. Daigle asserts. The Moelis professionals primarily responsible for providing services to the Committee are (i) William Q. Derrough, (ii) Isaac Lee, and (iii) David Groban. The Committee selected Moelis as its investment banker for the purpose of providing assistance and advice, in cooperation with Jefferies, with respect to any potential strategy for restructuring the Debtors' outstanding indebtedness, labor costs or capital structure, whether pursuant to a reorganization plan, a sale of assets pursuant to Section 363 of the Bankruptcy Code, a liquidation or otherwise, Mr. Daigle relates. The Committee seeks to continue to use the services of the Jefferies as its co-investment banker. Jefferies will be primarily responsible for services related to asset sales, analysis of debtor-in-possession financing and labor, pension and OPEB issues. Jefferies and Moelis have entered into an agreement whereby they would allocate between themselves the fees earned from the services rendered to the Committee, Mr. Daigle explains. Moelis will be entitled to receive from the Debtors' estates, as compensation for its services: (1) US$131,250 monthly fee; and (ii) and a transaction fee of 1/3 of (i) 0.50% of total consideration greater than US$0.50 and up to US$0.75 per US$1 of allowed unsecured claim and (ii) 0.75% of Total Consideration, as defined in the Engagement letter, greater than US$0.75 per US$1 of allowed unsecured claim. The transaction fee will not be less than US$670,000 or greater than US$3,330,000, however, Moelis has reserved the right to request modification of the cap. For purposes of clarification, the engagement Letter defines Total Consideration as "[T]he total aggregate consideration paid by the Debtors on account of allowed unsecured claims against the Debtors pursuant to a plan or plans of reorganization in the Cases, including any amounts in escrow, but excluding any unsecured claims of, and consideration paid by the Debtors on account of claims of, the Pension Benefit Guaranty Corporation or any assignee of the PBGC. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 152; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Wins Court OK for GM Liquidity Enhancement Deals ------------------------------------------------------------- Delphi Corp. and its affiliates obtained approval from the U.S. Bankruptcy Court for the Southern District of New York to enhance their liquidity through June 30, 2009, by entering into two agreements with General Motors Corp: -- The Debtors obtained permission to amend and extend, through June 30, 2009, their current arrangement with GM pursuant to which GM has agreed to provide up to US$300 million of liquidity enhancement; and -- The Debtors obtained authority to enter into a new agreement with GM whereby GM would provide an additional aggregate US$300 million during the second quarter of 2009 through a temporary acceleration of its accounts payable to the Debtors. Delphi did not receive objections to the GM deals but asked the Bankruptcy Court to defer for seven days, to Dec. 1, 2008, the hearing on their proposed deals with General Motors Corp., to permit further discussions by the parties on the proposed changes to its US$4.35-billion DIP facility. Delphi has entered into an accommodation agreement with JPMorgan Chase Bank, N.A., as the administrative agent under the DIP facility, and majority of the lenders under tranches A and B of the facility. The Accommodation Agreement, which grants Delphi access to DIP financing until June 30, 2009, faced opposition by the tranche C lenders, but nonetheless, was subsequently approved by the Court. As reported by the Troubled Company Reporter on Nov. 18, the two agreements will afford the Debtors additional liquidity of up to US$600 million through the end of the second quarter of 2009. This will also provide the Debtors the time to seek sufficient emergence funding capital to allow them to emerge from chapter 11 as soon as practicable. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates that through the Second Amendment Agreement and the Partial Temporary Accelerated Payment Agreement, GM would provide additional liquidity to the Debtors through the second quarter of 2009, during the period covered by the accommodation agreement with certain of the DIP Lenders. The Debtors said the liquidity provided by the agreements with GM should help facilitate their plan modifications and emergence strategy while addressing the concerns of Delphi's customers and suppliers. More GM Support to Delphi According to Mr. Butler, the relief sought by Delphi reflects GM's further support for the Debtors' reorganization efforts. GM has already made significant and substantial contributions to the Debtors' reorganization efforts. On September 26, 2008, the Debtors received the authority to implement the Amended GSA and the Amended MRA, which agreements became effective on September 29, 2008. The Amended GSA and Amended MRA, among other things, produced US$4.6 billion in incremental net contributions to Delphi from GM (resulting in an expected net contribution from GM in the approximate amount of US$10.6 billion), pulled forward GM's financial obligations under the global settlement agreement and master restructuring agreement approved as part of the Plan to the effective date of the Amended GSA and Amended MRA, made all of GM's incremental financial contributions in the Amended GSA and Amended MRA immediately and unconditionally effective on the effective date of the Amended GSA and Amended MRA, eliminated substantially all of GM's termination rights, and eliminated substantial conditional aspects of the Original GSA and Original MRA. The agreements became effective on September 29, 2008, and the Debtors and GM executed the first step of the section 414(l) transfer on that date, transferring approximately US$2.1 billion of the Debtors' net unfunded hourly pension liabilities to GM's pension plan. Delphi Couldn't Find Exit Financing Amid Worst Bear Market Following the implementation of the Amended GSA and the Amended MRA, the Debtors continued to take steps toward emergence from chapter 11. On October 3, 2008, the Debtors filed the Plan Modification Approval Motion which included the Debtors' revised emergence business plan and enterprise valuation. That same day, the United States House of Representatives approved the federal bailout plan, now known as the Troubled Asset Relief Program or "TARP." However, on the following Monday, and for much of the rest of the month of October, the global credit markets seized up and experienced one of the five worst bear markets in history. Despite the efforts of the federal government to provide stability to the capital markets and banks, the markets have remained extremely volatile and liquidity in the capital markets has been nearly frozen, resulting in an unprecedented challenge for the Debtors to successfully attract emergence capital funding for their Modified Plan, particularly in light of the current conditions in the global automotive industry, Mr. Butler explains. "Nevertheless, assuming that this Court approves this Motion and the Accommodation Motion, the Debtors will continue to work with their stakeholders in an effort to emerge from chapter 11 as quickly as practicable despite the difficult economic environment," Mr. Butler avers. Amended GM Arrangement The Amended GM Arrangement, as modified by the Second Amendment Agreement, functions as an adjunct to the Debtors' US$4-billion DIP financing facility, effectively providing Delphi with US$300 million in additional unsecured, subordinated advancements from GM, thereby continuing a definite and reliable source of liquidity during an extended period of uncertainty in the capital markets generally and the automotive industry in particular. Under the terms of the Second Amendment Agreement, GM has agreed, subject to this Court's approval, to make available to the Debtors up to US$300 million through the maturity date of the Second Amendment Agreement, subject to certain modified borrowing mechanics and provided that certain conditions are met. The maturity date for the Second Amendment Agreement will be the earliest of: (i) June 30, 2009, (ii) the date on which Delphi or any guarantor of the GM Arrangement files any motion or other pleading seeking to amend the Plan or Disclosure Statement filed by the Debtors on October 3, 2008 in a manner not reasonably acceptable to GM, (iii) the DIP Termination Date, (iv) on or after January 1, 2009, the expiration or termination of the Accommodation Agreement or the Accommodation Period, and (v) the occurrence of the effective date of the Plan. In addition, certain modifications were made to the Amended GM Arrangement that protects GM in the event the Accommodation Agreement is modified in a manner adverse to GM. In such circumstance, to the extent that Delphi seeks continued access to the Second Amended GM Arrangement, GM would have approval rights with respect to such modifications to the Accommodation Agreement. Other proposed modifications to the Amended GM Arrangement are largely technical and conforming changes. Effectiveness of the Second Amendment Agreement is conditioned on, among other things, (i) the Debtors having no Automatic Accommodation Termination Default and no Accommodation Default and (ii) entry of a final, non-appealable order by the Court approving the Accommodation Agreement and the Second Amendment Agreement on or prior to December 31, 2008. Upon the effectiveness of the Second Amendment Agreement, the terms and conditions of the Amended GM Arrangement will remain in full force and effect, including the provisions that GM and its relevant Affiliates will have (a) allowed claims with administrative expense priority pursuant to Section 503(b)(1) of the Bankruptcy Code against Delphi and the GM Guarantors under and as defined in the DIP Credit Agreement for all Obligations owing to GM or any applicable GM Affiliates and (b) all other rights under the Amended GM Arrangement and the Second Amendment Agreement, including, without limitation, the ability to exercise the right to set off and apply, subject to the terms of the Amended GM Arrangement and the Second Amendment Agreement, any indebtedness or liabilities owing by GM or the GM Affiliates to or for the credit or the account of Delphi or the GM Guarantors against any and all GM Arrangement Obligations of Delphi or the GM Guarantors without the need to seek additional modification of the automatic stay imposed pursuant to Section 362 of the Bankruptcy Code and without further order of the Court. Pursuant to a side letter between Delphi and GM, GM has agreed that prior to the earlier of (i) the occurrence of the DIP Termination Date, (ii) the effectiveness of the Debtors' plan of reorganization, or (iii) the receipt of DIP Agent consent, GM will not assert or exercise against any of the GM GSA Claims any setoff of any amounts payable by GM or any of its Affiliates to Delphi or any of its affiliates. The GM GSA Claims are the First Net Liability Transfer Claim, the Second Net Liability Transfer Claim, and the GM Unsecured Claim. The Side Letter does not prejudice other parties' rights to contest GM's setoff rights if (a) the Side Letter does not become effective or (b) one of the events set forth in clauses (i)-(iii) above has occurred. The Side Letter will become effective on the date when all of the conditions precedent set forth in section 3 of the Second Amendment Agreement have been satisfied or waived. Copies of the New GM Agreements are available at no charge at http://bankrupt.com/misc/Delphi_GM_DealsNov08.pdf About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 152; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ========================== C A Y M A N I S L A N D S ========================== BUNGE FERTILIZANTES: Members' Final Meeting Set for December 12 --------------------------------------------------------------- The members of Bunge Fertilizantes International Participation Ltd. will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Giles Kerley Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands BUNGE TRADE: Final Meeting Set for December 12 ---------------------------------------------- The members of Bunge Trade Participation Ltd. will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Giles Kerley Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands CEVAL INTERNATIONAL: Final Meeting Set for December 12 ------------------------------------------------------ The members of Ceval International Participation Ltd. will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Giles Kerley Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands COPLEY CAPITAL: Final Meeting Set for December 12 ------------------------------------------------- The members of Copley Capital II Ltd. will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Giles Kerley Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands COPLEY CAPITAL: Final Meeting Set for December 12 ------------------------------------------------- The members of Copley Capital III Ltd. will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Giles Kerley Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands CSAI LETTRS: Members Receive Wind-Up Report ------------------------------------------- The members of CSAI Lettrs Fund, Ltd. met on Nov. 27, 2008, and received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidator is: Emile Small Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands EAST ISLAND: Members Receive Wind-Up Report ------------------------------------------- The members of East Island Ltd. met on Nov. 27, 2008, and received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidator is: Emile Small Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands FIRST EAGLE: Final Meeting Set for December 12 ------------------------------------------------- The members of First Eagle Emerging Nations Debt Fund Ltd. will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Giles Kerley Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands GRANT PARK: Final Meeting Set for December 12 --------------------------------------------- The members of Grant Park CDO Ltd. will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidator is: Emile Small Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands HARTFORD LEVERAGED: Final Meeting Set for December 25 ----------------------------------------------------- The members of Hartford Leveraged Loan Feeder Fund II, Ltd. will hold their final meeting on December 25, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Bobby Toor Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands HARTFORD LEVERAGED: Final Meeting Set for December 12 ----------------------------------------------------- The members of Hartford Leveraged Loan Fund, Ltd. will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Bobby Toor Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands HEWLETT-PACKARD: Final Meeting Set for December 12 -------------------------------------------------- The members of Hewlett-Packard Equity Investments Limited will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jan Neveril Bobby Toor Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands KALLISTA ARBITRAGE: Final Meeting Set for December 12 ----------------------------------------------------- The members of Kallista Arbitrage Strategies Master Fund Limited will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Giles Kerley Jan Neveril Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands LADIES MATE: Final Meeting Set for December 12 ---------------------------------------------- The members of Ladies Mate Capital will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Guy Major Giles Kerley Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands YKPI HOLDINGS: Final Meeting Set for December 12 ------------------------------------------------ The members of YKPI Holdings will hold their final meeting on December 12, 2008, to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Giles Kerley Jan Neveril Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands ========= C H I L E ========= * CHILE: Posts Deflation in Nov. Since 2007 on Low Fuel Prices -------------------------------------------------------------- Chile's National Statistics Institute released a report that revealed consumer prices fell 0.1% last month, from 0.9% rise in October, the first month of deflation since February 2007 as fuel cost plunge, Sebastian Boyd of Bloomberg News reports. Prices fell less than the median estimate of a 0.3% decline forecast by 19 economists in a Bloomberg survey. According to the report, Central Bank President Jose De Gregorio said policy makers may begin to cut interest rates in coming months as slowing global economic growth helps tame domestic inflation. Meanwhile, the report says according to Julio Espinoza, an economist at Banco Bice SA in Santiago, the less-than-forecast price drop may fail to persuade policy makers to cut lending rates at its next meeting on Dec. 11. "This could mean the bank delays its rate cut another month," the report quoted Mr. Espinoza as saying. The central bank has kept the benchmark rate at decade-high at its last two meetings after four consecutive half-point increases, he added. As reported by the Troubled Company Reporter - Latin America on Dec. 5, 2008, Bloomberg News said Chile's central bank board members voted unanimously to hold the benchmark interest rate at 8.25% for a second month on expectations that slowing global economic growth may help brake domestic inflation. That report related the country's central bank has struggled to rein in inflation this year, raising rates five times to the highest level since 1998. Bloomberg News recounts last month, the the central bank, which had expected 2009 inflation of 5.9% and growth of up to 4.5%, revised its forecasts to show inflation slowing to 4.0% next year, aided by growth of between 2% and 3%. The bank may cut the benchmark from a current 8.25% in the first quarter of 2009, the report cited Cristian Gardeweg, an economist at Celfin SA in Santiago., as saying. Rodrigo Valdes, chief economist at Barclays Capital in New York, also told clients in a research note that the bank will probably wait before cutting rates, Bloomberg News adds. Annual inflation in November slowed to 8.9% , down from 9.9% in October, the fastest in 14 years, the report says. The price report was "negative in the numbers and positive for the country," Finance Minster Andres Velasco said, the report notes. "It's a welcome event that confirms the estimates both of the government and private analysts," he added. ============= E C U A D O R ============= * ECUADOR: Looks to Repudiate Debt; May Ask Loan from Iran ---------------------------------------------------------- Ecuador's government is considering various ways of repudiating its debt and may ask for loans from governments like Iran should it lose access to credit markets, Stephan Kueffner of Bloomberg writes, citing Finance Minister Maria Elsa Viteri. "The national government is trying to find all mechanisms not to pay the illegal debt," Bloomberg News cited Ms. Viteri as saying. Bondholders have not sought to renegotiate the debt or complained about the process, she added. According to National Business, Ecuador is renewing its threats not to pay off foreign debts it considers illegal, with a US$30.6 million payment due on Dec. 15. As reported by the Troubled Company Reporter - Latin America on Nov. 25, 2008, Reuters reported Ecuadorean President Rafael Correa said he would not withdraw an international suit to suspend a Brazilian loan repayment even if it frays diplomatic ties between the two countries. A TCRLA report, citing Bloomberg News, said Ecuador filed an international lawsuit to suspend payment on a loan owed to a Brazilian government bank, charging that the credit's terms are unlawful. According to Bloomberg News, the country's debt audit commission uncovered "illegality and illegitimacy" in the country's foreign obligations and stated that the government's global bonds due in 2012 and 2030 "show serious signs of illegality," such as a lack of government authorization for their issuance. Bloomberg News relates Jorge Glas, head of a government fund handling the lawsuit, said the loan granted by BNDES, Brazil's state development bank, was linked to a construction company that was expelled from the country over a contractual dispute. In September, Bloomberg News recounts, President Correa threatened not to repay the the central bank, holding that the loan was granted to Brazilian top construction firm Odebrecht to build a plant and not to the government. On December 5, Bloomberg News says, the government signed a US$200 million loan agreement with the Andean Finance Corporation. As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2008, Fitch Ratings placed Ecuador's long-term foreign currency Issuer Default Rating of 'CCC' on Rating Watch Negative to reflect a reasonable probability of near term downgrades. Ecuador's IDR already incorporates the risk that default is a real possibility in the near term, particularly in light of ongoing concerns about the government's willingness to pay its obligations, Fitch said. ==================== E L S A L V A D O R ==================== AES EL SALVADOR: Moody's Cuts Senior Unsecured Rating to 'Ba1' -------------------------------------------------------------- Moody's Investors Service downgraded to Ba1 from Baa3 the senior unsecured rating of AES El Salvador Trust and assigned a Corporate Family Rating of Ba1, with a negative outlook. This debt is guaranteed by four affiliated electric distribution subsidiaries that are 80% owned by The AES Corporation (B1 CFR). These operating subsidiaries which also act as guarantors are Compania de Alumbrado Electrico de San Salvador, Empresa Electrica de Oriente, AES Clesa y Compania and Distribuidora Electrica de Usulutan. The guaranteed debt matures in 2016. This rating action concludes Moody's action of September 12, 2008, wherein Trustco was placed under Review for Possible Downgrade. The operating subsidiaries of AES in El Salvador are experiencing higher costs of energy inputs than originally assumed and are faced with rising generation prices being billed by the government power suppliers, including for hydroelectric and geothermal costs as well as private thermal generators. In addition, the operating companies continue to experience regulatory lag in cost recoveries of higher energy input costs. Moreover, the company is purchasing a greater proportion of its power in the more costly spot market as compared to the contract market where it was purchased before. These higher costs of power purchase follow this year's 14% tariff reduction for electricity distribution services provided by the guarantor utility companies recently accorded by the El Salvador government. Furthermore, the country is experiencing a declining economic situation on account of the global financial crisis that affects overall liquidity in the system with new government elections expected in early 2009. Despite these uncertainties and rising energy input costs that are affecting corporate liquidity, the guarantor companies are still making cash dividend remittances to shareholders. This continuation in dividend payouts in the face of adverse economics and the need to continue with programmed capital expenditures to maintain and grow the distribution system, are expected to significantly weaken historic credit metrics and stress the cash flow and liquidity position of the operating companies on a consolidated basis. Specifically, on a consolidated basis the RCF/Debt has weakened from 16.7% in 2007 to 9.9% in the last 12 months ended September 2008 while the FFO/Interest has declined from 4.6X in 2007 to 3.3X for the same period. The new reduced tariff rates are in effect for a period of five years through December 2012. Domiciled in Panama, Trustco is a trust set up to issue debt for the benefit of four affiliated electrical distribution companies in El Salvador that together account for 80% of the distribution market share of approximately one million customers. AES Corporation in the U.S. owns and controls approximately 80% of these distribution companies. The U.S. company acquired AES CLESA utilities in 1998 as part of the privatization effort of the El Salvador government for the electrical distribution sector and the rest of the companies in 2000, when AES acquired EDC in Venezuela. ================= G U A T E M A L A ================= BANCO INDUSTRIAL: Fitch Affirms 'BB' Long-Term Currency IDRs ------------------------------------------------------------ Fitch Ratings has affirmed the 'BB' long-term foreign and local currency Issuer Default Ratings of Guatemala's Banco Industrial. Fitch has also revised Industrial's Rating Outlook to Stable from Positive. Industrial maintains a robust franchise in Guatemala, low level of loan delinquency, improving efficiency and profitability, and adequate funding and liquidity, although the ratings also factor in a tight capital position (following ample organic and acquisition-driven growth over the past two years), limited and declining loan loss reserves and its modest revenue diversification. All these factors sustain Industrial's 'D' Individual rating and 'BB' long-term IDRs. Industrial's prior Positive Outlook reflected Fitch's previous perception that capital adequacy would improve following certain strategies that the management has pursued. However, the worsening environment in the capital markets has complicated the capital enhancement alternatives. Moreover, the weakening economic prospects are likely to impact Industrial's impairment loan ratio, its provisions and overall performance, a confluence of factors that is consistent with Industrial's current ratings, hence Fitch's Outlook revision to Stable. While Fitch's eligible capital ratio is closer to pre-acquisition levels (6.65% of total assets, adjusting for goodwill) following a hybrid securities placement, the limited capital position is exacerbated at the ultimate holding level, Bicapital Corp., since this incurred a sizeable lending facility earlier in 2008 to finance the acquisition of Banco del Pais and Seguros del Pais in Honduras, which in turn also created ample goodwill at the holding company (roughly US$80 million). Based on Fitch's approach, double-leverage is close to 150% at Bicapital's level. Given the ultimate parent's reliance on dividends from its operating subsidiaries to service its debt contracted, capital ratios at Industrial will likely remain tight over the foreseeable future. Although Bicapital is exploring some capitalization alternatives with the International Finance Corporation and its current shareholders, the potential positive resolution of these plans is unlikely to dramatically improve the company's capital position and overall financial flexibility in such a magnitude that can drive positive rating actions in the foreseeable future. If Industrial ran into difficulties, Fitch believes the government of Guatemala (rated 'BB+' with a Stable Outlook by Fitch) would have a vested interest to support the bank, given its ample deposit market share, which support Industrial's '3' support rating and 'BB-' support floor. Due to the country's sub- investment grade sovereign rating, Fitch considers that the probability of sovereign support for Industrial is moderate. Downside risk for the IDRs, currently low in Fitch's view, is limited to the support floor. Established in Guatemala, Industrial is the largest subsidiary of Bicapital, a recently-created holding company based in Panama, which also owns roughly 90% of Honduras-based Banco del Pais. Since 2006 acquisition-driven growth has been ample. Medium-sized Banco de Occidente was acquired by Industrial in March 2006. In January 2007, Industrial absorbed the deposits and branches of Banco de Comercio, which was intervened by the banking regulators due to liquidity problems. In October 2007, Industrial announced the merger of the relatively small Banco del Quetzal (merged in February 2008), a well- performing small bank but which had experienced some deposit runs amidst the local financial turmoil. While these acquisitions provided Industrial with a stronger market share and some product and revenue diversification, it resulted in some weakening of the bank's financial profile, especially capital adequacy and asset quality, given the goodwill created upon the acquisition of Occidente and the relatively weaker loans of Occidente and Bancomer. Fitch has affirmed these ratings and revised the Rating Outlook to Stable from Positive: Banco Industrial, S.A.: -- Long-term foreign and local currency IDRs at 'BB'; -- Short-term foreign and local currency IDRs at 'B'; -- US$35 million non-cumulative fixed/floating-rate step-up tier 1 capital notes due 2068 at 'B+'; -- Individual at 'D'; -- Support at '3'; -- Support Floor at 'BB-'; -- National-scale long-term at 'AA-(gtm)'; -- National-scale short-term at 'F1(gtm)'. =========== M E X I C O =========== BALLY TOTAL: Gets Access to Cash Collateral to Fund Ch. 22 Case --------------------------------------------------------------- Bankruptcy Law360 says the U.S. Bankruptcy Court for the Southern District of New York reportedly gave Bally Total Fitness Holding Inc. and its debtor-affiliates permission to pay employees and access cash collateral securing their obligations to their prepetition lenders -- as talks on a possible sale of the company moved forward. Bankruptcy Law360 says Judge Stuart Bernstein's order will last at least through a hearing scheduled for December 9, 2008. The Debtors are party to a credit agreement, dated October 1, 2007, with Morgan Stanley Senior Funding, Inc., as administrative collateral agent, Wells Fargo Foothill, LLC, as revolving credit agent, and the CIT Group/Business Credit, Inc., as revolving syndication agent, and other senior secured lenders party to the Credit Agreement, which provides for financing of up to US$292,000,000, consisting of US$50,000,000 in a senior secured revolving credit facility, with a US$40,000,000 sublimit for letters of credit and a six-year US$242,000,000 senior secured term loan facility. The proceeds from the Term Loan and the Revolver Facility were used to refinance the amounts outstanding under the Company's debtor-in-possession credit agreement from the Prior Bankruptcy Cases and to provide additional working capital. Bally's obligations under the Credit Agreement are guaranteed by most of Bally's domestic subsidiaries. Pursuant to a Guarantee and Collateral Agreement, dated as of October 1, 2007, between Bally and the Agent, obligations under the Credit Agreement are secured by first priority liens and security interests on certain assets and property of the Debtors, including without limitation, accounts, deposit accounts, chattel paper, commercial tort claims, contracts, documents, equipment, general intangibles, instruments, intellectual property, inventory, investment property, all pledged securities, receivables, goods, and books and records and the proceeds thereof. The Prepetition Collateral includes cash collateral of the Agent and the Senior Secured Lenders within the meaning of Section 363(a) of the Bankruptcy Code. As of the Petition Date, the Debtors had approximately US$17,000,000 of cash on hand which comprises Cash Collateral. In addition, the Debtors forecast receipt of US$3,500,000 of additional cash in the next 45 days, which comprises proceeds of the Senior Secured Lenders' collateral. Michael W. Sheehan, chief executive officer of Bally Total Fitness Holding Corporation, said the Debtors have an immediate need for the use of cash collateral to sustain their businesses as a going concern and effect a successful reorganization, including: * the continued operation of their businesses; * the maintenance of business relationships with vendors, suppliers and customers; and * the payment to employees and satisfaction of other working capital and operational needs. To successfully navigate through their Chapter 11 cases, the Debtors need to maintain sufficient liquidity to support the continued ordinary course business operations, and immediate access to Cash Collateral will enable the Debtors to demonstrate to their vendors, suppliers, customers and employees that they have sufficient capital to ensure ongoing operations. The Debtors have proposed to grant their Prepetition Secured Creditors adequate protection with respect to any diminution in the value of the Senior Secured Lenders interests in the Prepetition Collateral. The Debtors' use of Cash Collateral will be governed by a cash collateral budget, and will be used mainly to preserve and maintain the value of their assets. The Budget shows the Debtors' cash flow forecasts for the next 13 weeks, a copy of which is available for free at: http://bankrupt.com/misc/BallyCashCollBudget.pdf The Debtors' proposed counsel, Kenneth H. Eckstein, Esq., Kramer Levin Naftalis & Frankel LLP, in New York, has said the Debtors discussed the proposed Interim Order with the prepetition secured creditors. Thus, the Debtors believe that the Prepetition Secured Creditors are agreeable to the use of the Cash Collateral, pursuant to terms and conditions outlined in the proposed Interim Order. According to Mr. Eckstein, the Interim Order imposes conditions and restrictions on the Debtors' use of Cash Collateral. It also grants relief and adequate protection for the benefit of the Prepetition Secured Creditors. Specifically, use of Cash Collateral will be governed by the Budget and used to preserve and maintain the value of the Debtors' assets. In addition, the Cash Collateral may be used up to amounts not exceeding 115% of the Budget on a cumulative, aggregate rolling basis, measured weekly at the close of business on Friday of each week. The Debtors will deliver weekly Budget reconciliation statements to the Prepetition Secured Creditors. The use of the Cash Collateral is conditioned on the granting of adequate protection, and will be subject to the rights of the Prepetition Secured Creditors to seek further adequate protection. Mr. Eckstein said, as adequate protection for any diminution in the value of the Prepetition Secured Creditors' interest in the Prepetition Collateral that may result from the use of the Cash Collateral: (1) The Debtors will make a US$300,000 monthly interest payment to the Agent, for the benefit of the lenders under the Revolver Facility; (2) The Debtors will pay the Agent's reasonable and documented expenses, not to exceed US$100,000 monthly, for professional fees in connection with monitoring the use of Cash Collateral; (3) The Senior Secured Lenders will receive first priority perfected replacement liens on all of the Debtors' rights in property acquired postpetition, that are of the same type as the Prepetition Collateral and the Encumbered Leases, in the same relative priority as the Prepetition Liens; (4) The Senior Secured Noteholders will receive second priority perfected replacement liens on the Debtors' rights in the Postpetition Collateral; (5) Senior Secured Lenders will have first priority perfected liens on the Debtors' rights in the Unencumbered Leases in the same relative priority as the Prepetition Liens; and (6) The Senior Secured Noteholders will have second priority perfected liens on the Unencumbered Leases. The Debtors preserve their rights to pledge the Unencumbered Assets to a lender providing debtor-in-possession financing, with liens superior to the First Priority Real Estate Liens and the Second Priority Real Estate Liens. The Debtors maintain that the proposed Interim Order is without prejudice to the rights of any party-in-interest. A full-text copy of the proposed Interim Cash Collateral Order is available for free at http://bankrupt.com/misc/BallyInterimCashCollOrd.pdf About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for Chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre- packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,54627 in total liabilities. The Debtors filed their Joint Prepackaged Plan & Disclosure Statement on July 31, 2007. The Court confirmed the Plan in Sept. 2007. The Plan was declared effective Oct. 1, 2007. Bally Total Fitness Holding Corp. and its debtor-affiliates and subsidiaries again filed voluntary petitions under Chapter 11 on Dec. 3, 2008 (Bankr. S. D. N. Y., Lead Case No. 08-14818). Their counsel is Kenneth H. Eckstein, Esq. at Kramer Levin Naftalis & Frankel LLP, in New York. As of September 30, 2008, the Company (including non-debtor affiliates) had consolidated assets totaling approximately US$1.376 billion and recorded consolidated liabilities totaling approximately US$1.538 billion. (Bally Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CEMEX: World Bank Unit OKs to Hear Complaint Against Venezuela -------------------------------------------------------------- Cemex SAB said a world bank arbitration division has agreed to consider a complaint against Venezuela's move to nationalize its local cement plants, International Herald Tribune reports, citing Cemex spokesman Jorge Perez. The report recounts the company said in August that it would seek arbitration by the International Center for Settlement of Investment Disputes, after Venezuela seized control of its plants as a deadline for negotiating terms for their takeover expired. Cemex SAB, the report relates, called the confiscation a "flagrant violation" of Venezuela's constitution and its expropriation laws. According to the report, Cemex has said Venezuela's offer of US$650 million for its local operations "significantly undervalues its business in Venezuela." 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 Novermber 26, 2008, Fitch Ratings has downgraded these ratings of Cemex, S.A.B. de C.V. and related entities: -- Cemex foreign currency Issuer Default Rating to 'BB+' from 'BBB-'; -- Cemex local currency IDR to 'BB+' from 'BBB-'; -- Cemex Espana S.A. (Cemex Espana) IDR to 'BB+' from 'BBB-'; -- Senior unsecured debt obligations of Cemex and Cemex Espana to 'BB+' from 'BBB-'; -- Rinker Materials Corporation US$150 million senior unsecured notes due 2025 to 'BB+' from 'BBB-'; -- Cemex long-term national scale rating to 'AA-(mex)' from 'AA+(mex)'; -- Cemex short-term national scale rating to 'F1(mex)' from 'F1+(mex)'; The Rating Outlook is Negative. FERROCARRIL MEXICANO: Cuts Debt With MXP1.2 Billion Payment ----------------------------------------------------------- Ferrocarril Mexicano SAB de CV, a unit of Grupo Mexico, was paying off MXP1.2 billion (US$88 million) in commercial paper to reduce the company's overall debt load, Mica Rosenberg of Reuters reports. With the payment, the report relates, the company said its debt due in 2009 is US$8 million. According to the report, the railroad has MXP1 billion (US$73 million) in debt due in 2014 and MXP1.5 billion (US$110 million) in 2022. The report notes, Grupo Mexico's total consolidated debt at the close of the third quarter was US$1.882 billion, but with a cash and bank balance of US$2.701 billion the company had an equivalent of US$818 million in cash. About Grupo Mexico Grupo Mexico SA de C.V. -- http://www.grupomexico.com/-- through its ownership of Asarco and the Southern Peru Copper Company, is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. About Ferrocarril Mexicano Ferrocarril Mexicano SAB de CV -- http://www.ferromex.com.mx/ -- is a Mexico-based company engaged in the rails transportation sector. It specializes in intermodal freight transport services and auxiliary services, including the transport of passengers and automotive terminal services, among others. The company's operations are divided into eight business segments: agriculture, industrial products, metals and minerals, automotive services, cement, chemicals and fertilizers, intermodal and energy transportation. The company is a subsidiary of Grupo Ferroviario Mexicano, SA de CV, an indirect subsidiary of Grupo Mexico SAB de CV. METROFINANCIERA SA: Fitch Puts Low-B IDR Ratings on Watch Evolving ------------------------------------------------------------------ Fitch Ratings has placed Metrofinanciera S.A. de C.V.'s Issuer Default Ratings and credit ratings on Rating Watch Evolving: -- Foreign and Local Currency Long-term IDR at 'B+'; -- Foreign and Local Currency Short-term IDR at 'B'; -- Support Rating at '4'; -- Support Rating Floor at 'B+'; -- Long-term national-scale issuer rating, including local long- term unsecured debt issues at 'BBB(mex)'; -- Short-term national-scale issuer rating, including local short-term unsecured debt issues at 'F3(mex)'. Fitch has also affirmed these ratings: -- US$100 million 11.25% perpetual non-cumulative subordinated step-up notes at 'C/RR6'; -- Individual Rating at 'F'. The ratings are currently driven by Fitch's expectation that support will continue to be provided by the development bank Sociedad Hipotecaria Federal. In turn, Metro's Individual rating remains at 'F', which indicates that its financial condition is distressed, and that it would have defaulted absent the external support of SHF and its shareholders. The Rating Watch Evolving reflects the current uncertainty surrounding the ongoing restructuring of Metro. Metro's issuer, support and unsecured debt ratings reflect Fitch's view that SHF support will continue to be forthcoming to Metro. Fitch has indicated in the past that such support was likely, and it has proven critical for Metro's continued operations. The company's financial condition remains undoubtedly fragile, and the process to strengthen its financial profile and restore its business prospects faces important challenges ahead, especially the need to complete a debt restructuring process amidst a difficult environment in the capital markets. In its recent disclosure of results through Sept. 30, 2008, Metro disclosed that, in its role as collecting agent for loans which it had securitized, it had collected roughly MXP 4.2 billion of loan repayments that were improperly withheld from the securitization trusts to which they were due; these trusts contain bridge loan transactions as security. As a result, Fitch recently downgraded the ratings of the affected trusts, with the senior notes now at the same level as Metro's ratings. Given the operational deficiencies that had been highlighted in the past, and the recent disclosure of the extent of these, the ratings of the remaining trusts, which contain residential mortgage loans, were placed on Rating Watch Negative. As a result of the disclosures noted above, Metro has undertaken external audits, to be concluded within 90 days, focusing on the asset quality of its loans, the valuation of the assets held in its land bank, and on the internal operating procedures related to its role as collecting agent for the trusts. The results of these audits will be critical to assess the shape and extent of the restructuring the entity will face if it is to return to a stand- alone viable entity. As it has said consistently, Fitch continues to believe that the SHF will continue to provide the support required to avoid a default of Metro's debt obligations in the local capital markets, given its stated interest in continuing to assure their smooth functioning as a source of financing for the socially important housing sector. These obligations have been Metro's principal funding source, and total roughly MXP 4.47 billion. Metro is also in discussions with creditors considering the possibility of restructuring certain secured and unsecured interbank facilities, totaling about MXP 4.4 billion on Sept. 30, 2008. Fitch is concerned that such restructuring could eventually take the form of a Distressed Debt Exchange under Fitch's criteria. A DDE occurs when the terms of the restructured debt represent a material reduction vis-a-vis the original terms, or when such restructuring is coercive or de facto necessary even if technically voluntary. A material reduction in terms would arise from any among several events, such as a reduction in principal amount or in coupon/interest; significant extension of maturity dates, such as a 'stand still' arrangement with creditors; a contractual or structural reduction in seniority; among others. However, mitigating factors such as coupon increases or elevation of issue seniority could offset the potential economic loss caused by the aforementioned and prevent the restructuring process from being considered a DDE. A DDE occurs because the actions aimed at improving the issuer's financial condition are generally associated to a reduction in terms from the creditors' perspective. When further details of the restructuring process are available, Fitch will assess the rating implications of such event. If the proposed terms of the restructuring process are deemed a DDE, Metro's IDRs would be immediately downgraded to 'C' and would later be further downgraded to 'D' or 'RD' upon a successful debt exchange, prior to the assignment of new debt ratings to the refinanced debt obligations. Alternatively, an eventual restructuring may not necessarily be considered a DDE, and to the extent to which SHF support could play an explicit role in such restructuring, Metro's ratings could have upside potential. * MEXICO: MXP15 Bil. Bond Buyback Flops as Officials Reject Offers ------------------------------------------------------------------ Mexico's bid to buy back as much as MXP15 billion (US$1.1 billion) of bonds flopped as the government refused to buy at the above-market prices offered, Valerie Rota of Bloomberg News reported. According to the report, bonds pared gains after the failed auction, which undermines the government's efforts to hold down borrowing costs amid the global financial crisis. Investors including pension funds held off from selling back the debt at current market prices that would have forced them to record losses, said Sergio Gutierrez, who manages MXP20 billion pesos in assets at Investrust, the report relates. "Pension funds are telling us that selling at lower prices means recognizing losses and they would rather keep the bonds and wait for other events that may push down yields further before selling," the report cited Mr. Gutierrez as saying. The offers at above- market prices say "investors aren't in any hurry to get rid of their debt," he added. According to the report, Banco Santander SA said yields on the government's 10% securities due in 2024, the country's most actively traded bond, fell three basis point, or 0.03 percentage point, to 8.96%, on December 3, after having fallen earlier to as low as 8.82%, while the bond's price rose 0.23 centavo to 108.84 centavos per peso. Bloomberg News reports, investors offered to sell MXP8.6 billion of the government's 8% bonds due in 2013 at an average price of 97.71838 centavos per peso. The bond's price was 97.19 centavos at 4:54 p.m. New York time, Dec. 3. Meanwhile, Investors offered MXP10.3 billion of 9.5% securities due in 2014 at an average price of 103.87597 while the bond's price traded this afternoon at 103.13 centavos per peso. They offered MXP5.8 billion of 8% bonds due in 2015 at an average price of 96.44572, while it traded at 95.49 centavos, Dec. 3, the report says. The buyback offer, the report notes, is part of President Felipe Calderon's push to lower long-term lending rates after a surge in yields hurt funds that manage investment assets of 2 million Mexicans and the retirement savings of 39 million people. The auction was the first in a 40 billion peso buyback plan the government announced in October, the report says. "The government is reading that there is no liquidity problem with yields at these levels," Bloomberg News cited Salvador Orozco, head of fixed-income research at Santander in Mexico City, as saying. ==================== P U E R T O R I C O ==================== PILGRIM'S PRIDE: Receives Approval of "First Day" Motions --------------------------------------------------------- Pilgrim's Pride Corporation, together with certain of its wholly owned subsidiaries, obtained approval of "first day" motions by the United States Bankruptcy Court for the Northern District of Texas. The Company received interim approval to access US$365 million of its US$450 million debtor-in-possession financing facility arranged by Bank of Montreal as lead agent. The DIP financing, combined with cash generated from ongoing operations, will allow the Company to satisfy its customary business obligations, including the timely payment of employee wages and payments to vendors. The final DIP hearing is scheduled for December 17, 2008. The Company also announced that it received Court approval to, among other things, pay pre-petition employee wages, health benefits, and other employee obligations during its restructuring under Chapter 11. Additionally, the Company is authorized to continue to honor all of its current customer policies without interruption, including marketing development, rebate and prepayment programs, coupon programs, product replacement and customer refunds. "The Court's approval of our DIP financing and first day motions is a positive first step toward a successful restructuring," said Clint Rivers, president and chief executive officer. "Throughout this process, we will continue to operate our business without interruption, including paying employee wages and purchasing the goods and services necessary to serve our customers. We have been working hard to address the operational and financial challenges we currently face, and this restructuring will help us not only meet these challenges, but also enhance the efficiency of our operations, strengthen our balance sheet and position Pilgrim's Pride to compete more effectively in the future." Additionally, the Company noted that the New York Stock Exchange has suspended Pilgrim's Pride common stock as a result of the Company's filing of its Chapter 11 petitions. The Company's common stock is now quoted on the Pink Sheets Electronic Quotation Service and has been assigned the ticker symbol "PGPDQ.PK." Information about this service is available at http://www.pinksheets.com/ About Pilgrim's Pride Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation (NYSE: PPC) -- http://www.pilgrimspride.com/-- produces, distributes and markets poultry processed products through retailers, foodservice distributors and restaurants in the U.S., Mexico and in Puerto Rico. In addition, the company owns 34 processing plants in the United States and 3 processing plants n Mexico. The processing plants are supported by 42 hatcheries, 31 feed mills and 12 rendering plants in the United States and 7 hatcheries, 4 feed mills and 2 rendering plants in Mexico. Moreover, the company owns 12 prepared food production facilities in the United States. The company employs about 40,000 people and has major operations in Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania, Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with other facilities in Arizona, Florida, Iowa, Mississippi and Utah. Pilgrim's Pride Corporation and six other affiliates filed Chapter 11 petitions on December 1, 2008 (Bankr. N. D. of Texas, Lead Case No. 08-45664). Pilgrim's Pride has engaged Stephen A. Youngman, Esq., Martin A. Sosland, Esq., and Gary T. Holzer, Esq., at Weil, Gotshal & Manges LLP, as bankruptcy counsel. The Debtors have also tapped Baker & McKenzie LLP as special counsel. Lazard Freres & Co., LLC is the company's investment bankers and William K. Snyder of CRG Partners Group LLC as chief restructuring officer. The company's claims and noticing agent is Kurtzman Carson Consulting LLC. Pilgrim's Pride had total assets of US$3,847,185,000, and debts of US$2,700,139,000 as of June 28, 2008. (Pilgrim's Pride Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). PILGRIM'S PRIDE: Sec. 341 Meet of Creditors Scheduled for Jan. 30 ----------------------------------------------------------------- William T. Neary, United States Trustee for Region 7, will convene a meeting of creditors of Pilgrim's Pride Corporation and its affiliates on January 30, 2009, at 4:00 p.m., at Room 976, at 1100 Commerce Street, in Dallas, Texas. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in the Debtor's bankruptcy cases. Attendance by the Debtor's creditors at the meeting is welcome, but not required. The Sec. 341(a) meeting offers the creditors a one-time opportunity to examine the Debtor's representative under oath about the Debtor's financial affairs and operations that would be of interest to the general body of creditors. A notice filed with the Court said the deadline for filing proofs of claim is set for April 30, 2009. The Debtors have not yet sought approval from the Court of a claims bar date in the Chapter 11 cases. About Pilgrim's Pride Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation (NYSE: PPC) -- http://www.pilgrimspride.com/-- produces, distributes and markets poultry processed products through retailers, foodservice distributors and restaurants in the U.S., Mexico and in Puerto Rico. In addition, the company owns 34 processing plants in the United States and 3 processing plants n Mexico. The processing plants are supported by 42 hatcheries, 31 feed mills and 12 rendering plants in the United States and 7 hatcheries, 4 feed mills and 2 rendering plants in Mexico. Moreover, the company owns 12 prepared food production facilities in the United States. The company employs about 40,000 people and has major operations in Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania, Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with other facilities in Arizona, Florida, Iowa, Mississippi and Utah. Pilgrim's Pride Corporation and six other affiliates filed Chapter 11 petitions on December 1, 2008 (Bankr. N. D. of Texas, Lead Case No. 08-45664). Pilgrim's Pride has engaged Stephen A. Youngman, Esq., Martin A. Sosland, Esq., and Gary T. Holzer, Esq., at Weil, Gotshal & Manges LLP, as bankruptcy counsel. The Debtors have also tapped Baker & McKenzie LLP as special counsel. Lazard Freres & Co., LLC is the company's investment bankers and William K. Snyder of CRG Partners Group LLC as chief restructuring officer. The company's claims and noticing agent is Kurtzman Carson Consulting LLC. Pilgrim's Pride had total assets of US$3,847,185,000, and debts of US$2,700,139,000 as of June 28, 2008. (Pilgrim's Pride Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). PILGRIM'S PRIDE: To Timely Pay for Goods Delivered Postpetition --------------------------------------------------------------- Pilgrim's Pride Corp. and its debtor affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to grant their vendors administrative expense priority status for goods arising from postpetition deliveries. The Debtors rely on numerous suppliers including vendors of corn, soybean meal, and other chicken-feed ingredients, pullet chickens and equipment. They also rely on service providers, including packagers, transporters, service technicians, sanitation providers and inspectors to support their day-to-day operations and to ensure compliance with governmental regulations particularly those enacted by the United States Department of Agriculture. The Debtors' proposed counsel, Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, in Dallas, Texas, relates that as a consequence of the Debtors' Chapter 11 filing, Vendors may be concerned that postpetition delivery of goods and services ordered before the Petition Date will give rise general unsecured claims against the Debtors' estates. To that extent, Vendors may refuse to deliver or perform the goods or services that are subject to prepetition orders unless the Debtors either issue substitute purchase orders or obtain a Court order affording priority under Section 503(b) of the Bankruptcy Code to all of their undisputed obligations arising from postpetition deliveries, and seek authorization to pay those obligations in the ordinary course of business. The Debtors propose to grant pursuant to Sections 503(b) and 507(a)(2) of the Bankruptcy Code, their Vendors administrative expense priority status for undisputed obligations arising from postpetition deliveries. The Debtors also seek the Court's authority, out of abundance of caution, to satisfy their undisputed obligations to the Vendors in the ordinary course of the business pursuant to Section 363(c) of the Bankruptcy Code. "The relief requested . . . will ensure a continuous supply of goods and services that are indispensable to the Debtors' operations," Mr. Youngman says. He assures the Court that the Debtors' estate will directly benefit from the postpetition deliveries under the prepetition orders. About Pilgrim's Pride Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation (NYSE: PPC) -- http://www.pilgrimspride.com/-- produces, distributes and markets poultry processed products through retailers, foodservice distributors and restaurants in the U.S., Mexico and in Puerto Rico. In addition, the company owns 34 processing plants in the United States and 3 processing plants n Mexico. The processing plants are supported by 42 hatcheries, 31 feed mills and 12 rendering plants in the United States and 7 hatcheries, 4 feed mills and 2 rendering plants in Mexico. Moreover, the company owns 12 prepared food production facilities in the United States. The company employs about 40,000 people and has major operations in Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania, Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with other facilities in Arizona, Florida, Iowa, Mississippi and Utah. Pilgrim's Pride Corporation and six other affiliates filed Chapter 11 petitions on December 1, 2008 (Bankr. N. D. of Texas, Lead Case No. 08-45664). Pilgrim's Pride has engaged Stephen A. Youngman, Esq., Martin A. Sosland, Esq., and Gary T. Holzer, Esq., at Weil, Gotshal & Manges LLP, as bankruptcy counsel. The Debtors have also tapped Baker & McKenzie LLP as special counsel. Lazard Freres & Co., LLC is the company's investment bankers and William K. Snyder of CRG Partners Group LLC as chief restructuring officer. The company's claims and noticing agent is Kurtzman Carson Consulting LLC. Pilgrim's Pride had total assets of US$3,847,185,000, and debts of US$2,700,139,000 as of June 28, 2008. (Pilgrim's Pride Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). PILGRIM'S PRIDE: Proposes to Pay Pre-Bankruptcy Dues to Growers --------------------------------------------------------------- Pilgrim's Pride Corp. and its debtor affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to pay prepetition amounts owed to independent contract growers. In addition to the poultry processing arms of their businesses, Pilgrim's Pride and its affiliates, in the ordinary course, raise chickens for slaughter. Specifically, the Debtors purchase chicks, called "pullets", and deliver them to grow-out farms to be raised over a 20-week period to become breeder hens and roosters. After 20 weeks, hens and roosters are transported to breeder farms. The breeder hens are prepared for the egg laying process over a five- week period and then produce eggs until they are 62 to 66 weeks old, at which point the breeder hens and roosters are sold by the Debtors to third parties for slaughter. Broiler eggs laid at breeder farms are delivered to hatcheries to be incubated for 21 days at which time the chicks hatch and are assigned and delivered to broiler grow-out farms. At the broiler grow-out farms, chicks are raised for six to ten weeks depending on the desired size of the broiler. When broiler chickens reach full growth, they are caught and delivered to processing plants. The Debtors enter into contractual growing arrangements with those independent contracts growers. Pursuant to the Growing Arrangements, the Growers own and operate the farm, chicken houses, equipment, utilities and labor required to raise and care for the Debtors' chickens, while the Debtors provide the live poultry as well as feed, veterinary services, technical assistance, and the Debtors' recommendations as to the technical aspects of efficiently growing, feeding and caring for the chickens. In almost all cases, the Growers are independent farmers who raise poultry solely for the Debtors. The Debtors' general practice is to pay the Broiler Growers by Friday the week after delivery to the Debtors a grown flock of chickens, and the Breeder Growers on a weekly basis. On occasion, the Debtors also pay the Breeder Growers a "Feed Efficiency Bonus" to the extent earned, and the Breeder Growers a "Hatch Efficiency Bonus". As of the November 24, 2008, the Debtors owe an aggregate of US$600,000 to the Pullet Growers, and approximately US$2,800,000 to the Breeder Growers. As of the same date, the Debtors owe Broiler Growers approximately US$16,100,000. The combined total of outstanding payments due the Growers, as of November 24, was approximately US$19,500,000. Because the Broiler Growers are paid only upon completion of a lengthy growing cycle, any one payment by the Debtors represents a significant portion of the Broiler Growers' annual incomes. "It is critical to the Debtors' businesses that their live chickens receive proper care. Were the Growers to stop caring for the Debtors' chickens, the Debtors' inventories would be diminished for months. The Debtors would be unable to meet customer expectations and their customers would quickly find alternative suppliers," Stephen A. Youngman, Esq., proposed counsel to the Debtors, at Weil, Gotshal & Manges LLP, in Dallas, Texas, maintains. Mr. Youngman points out that many of the Debtors' major customers regularly audit the Debtors for their compliance with industry standards for animal welfare. Any interruption in proper care of the Debtors' chicken by the Growers, as well as any publicity generated by that interruption, could endanger important relationships with the Debtors' customers, he tells the Court. A failure to pay the Growers may result in an inability or unwillingness of the Growers to care for the Debtors' chickens that are currently in the Growers' possession, Mr. Youngman tells the Court. About Pilgrim's Pride Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation (NYSE: PPC) -- http://www.pilgrimspride.com/-- produces, distributes and markets poultry processed products through retailers, foodservice distributors and restaurants in the U.S., Mexico and in Puerto Rico. In addition, the company owns 34 processing plants in the United States and 3 processing plants n Mexico. The processing plants are supported by 42 hatcheries, 31 feed mills and 12 rendering plants in the United States and 7 hatcheries, 4 feed mills and 2 rendering plants in Mexico. Moreover, the company owns 12 prepared food production facilities in the United States. The company employs about 40,000 people and has major operations in Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania, Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with other facilities in Arizona, Florida, Iowa, Mississippi and Utah. Pilgrim's Pride Corporation and six other affiliates filed Chapter 11 petitions on December 1, 2008 (Bankr. N. D. of Texas, Lead Case No. 08-45664). Pilgrim's Pride has engaged Stephen A. Youngman, Esq., Martin A. Sosland, Esq., and Gary T. Holzer, Esq., at Weil, Gotshal & Manges LLP, as bankruptcy counsel. The Debtors have also tapped Baker & McKenzie LLP as special counsel. Lazard Freres & Co., LLC is the company's investment bankers and William K. Snyder of CRG Partners Group LLC as chief restructuring officer. The company's claims and noticing agent is Kurtzman Carson Consulting LLC. Pilgrim's Pride had total assets of US$3,847,185,000, and debts of US$2,700,139,000 as of June 28, 2008. (Pilgrim's Pride Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). =============== X X X X X X X X =============== * BOND PRICING: For the Week December 1 - December 5, 2008 ---------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- Alto Palermo SA 7.875 05/11/17 USD 35.15 Argent-DIS 7.820 12/31/33 ARS 17.11 Argent-DIS 8.820 12/31/33 ARS 26.00 Argent-Par 0.630 12/31/38 ARS 20.75 Argentina-NGB 2.000 02/04/18 ARS 38.70 Argnt-Bocon PRE8 2.000 01/03/10 ARS 55.95 Argnt-Bocon PR11 2.000 12/03/10 ARS 35.34 Argnt-Bocon PRE9 2.000 03/15/24 ARS 56.07 Argnt-Bocon PR12 2.000 01/03/16 ARS 46.17 Argnt-Bocon PR13 2.000 03/15/24 ARS 16.89 Arg Boden 2.000 09/30/14 ARS 33.96 Arg Boden 7.000 10/03/15 USD 25.76 Autopistas Del Sol 11.500 05/23/17 USD 19.96 Banco Hipot SA 9.750 11/16/10 USD 35.50 Banco Hipot SA 9.750 04/27/16 USD 31.31 Bonar X 7.000 04/17/17 USD 31.10 Argentina � DIS 5.830 12/31/33 ARS 52.07 Banco Macro SA 8.500 02/01/17 USD 48.42 Banco Macro SA 10.750 06/07/12 USD 30.92 Bonar V 7.000 03/28/11 USD 39.68 Bonar VII 7.000 09/12/13 USD 28.04 Bonar ARG $ V 10.500 06/12/06 ARS 35.33 Buenos-$DIS 9.250 04/15/17 USD 18.45 Buenos-$DIS 8.500 04/15/17 USD 18.50 Buenos Aire Prov 9.625 04/18/28 USD 19.53 Buenos Aire Prov 9.625 04/18/28 USD 19.44 Emp Distrib Nort 10.500 10/09/17 USD 38.00 Industrias Metal 11.250 10/22/14 USD 46.00 Inversiones y Rep 8.500 02/02/17 USD 39.57 Loma Negra Ciasa 7.250 03/15/13 USD 61.75 Mastellone Herma 8.000 06/30/12 USD 19.95 Mendoza Province 5.500 09/04/18 USD 30.87 Pan America 7.750 02/09/12 USD 69.96 Petrobras Energi 5.875 05/15/17 USD 68.01 Telefonica Argen 8.850 08/01/11 USD 72.43 Transener 8.87 12/15/16 USD 30.10 Trasport De Gas 7.875 05/14/17 USD 47.00 Xstrata Capital 4.000 08/14/17 USD 55.62 YPF SA 10.000 11/02/28 USD 74.51 BRAZIL ------ Arantes International 10.250 06/19/13 USD 31.00 Banco BMG 7.250 05/23/11 USD 66.00 Banco BMG SA 9.150 01/15/16 USD 62.14 Banco Cruzeiro 10.750 11/24/16 USD 72.11 Banco Ind E Com 9.750 03/03/16 USD 42.55 Banco Mercantil 7.750 05/08/12 USD 67.05 Barion Funding 0.100 12/20/56 USD 5.23 Bertin Ltda 10.250 10/05/16 USD 48.59 Bertin Ltda 10.250 10/05/16 USD 47.75 Braskem SA 9.000 04/29/49 USD 60.37 Braskem SA 9.750 06/29/49 USD 69.00 Braskem SA 8.000 01/26/17 USD 74.25 BR Malls Int Fi 8.500 04/15/17 EUR 61.01 Cosan Finance 7.000 02/01/17 USD 62.50 Cosan SA Industria 8.250 02/28/49 USD 46.57 JBS SA 10.500 08/04/16 USD 62.00 Independencia In 9.875 05/15/15 USD 43.00 Independencia In 9.875 01/31/17 USD 42.12 Lehman Brothers 10.000 03/20/09 EUR 5.00 Mazarin FDG Limited 0.100 09/20/68 USD 3.17 National Steel 9.875 05/29/49 USD 57.50 Net Servicos 9.250 11/29/49 USD 69.12 Soc Gen Accept 0.750 12/21/11 EUR 40.06 Soc Gen Accept 8.000 12/20/13 EUR 24.79 Soc Gen Accept 7.000 02/27/13 EUR 15.52 Soc Gen Accept 14.000 04/09/09 EUR 44.75 Soc Gen Accept 17.750 01/05/09 EUR 20.09 Suntech Power 0.250 02/15/12 USD 64.68 RBS-Zero Hora Ed 11.250 06/15/17 BRL 49.70 Rede Empresas 11.125 04/29/49 USD 47.91 Rede Empresas 11.125 04/29/49 USD 39.05 Vigor 9.250 02/23/17 USD 48.89 CAYMAN ISLANDS -------------- 801 Grand B-2 1.225 09/20/16 USD 69.50 Agile Property 9.000 09/22/13 USD 50.55 Aig Sunamerica 5.625 02/01/12 GBP 69.80 Aig Sunamerica 5.375 02/01/12 GBP 60.70 Ambev Intl Finan 9.500 07/24/17 BRL 70.00 Apex Silver 2.875 03/15/24 USD 2.40 Apex Silver 4.000 09/15/24 USD 12.00 Asif II 5.125 01/28/13 GBP 67.87 Banco Brasl 9.750 07/18/17 BRL 72.50 Banco Safra CI 10.875 04/03/17 BRL 63.50 Barion Funding 0.100 12/20/56 EUR 5.23 Barion Funding 0.250 12/20/56 USD 6.47 Barion Funding 0.250 12/20/56 USD 6.47 Barion Funding 0.250 12/20/56 USD 6.47 Barion Funding 0.250 12/20/56 USD 6.47 Barion Funding 0.250 12/20/56 USD 6.47 Barion Funding 0.630 12/20/56 GBP 12.94 Barion Funding 1.440 12/20/56 GBP 23.98 BCP Finance Company 4.239 10/29/49 EUR 52.88 BCP Finance Company 5.543 06/29/49 EUR 59.37 Bes Finance Limited 6.625 05/08/49 EUR 56.50 Bes Finance Limited 5.580 07/29/49 EUR 52.66 Bes Finance Limited 4.500 12/29/49 EUR 49.26 Blue City Co 1.000 11/07/13 USD 62.90 Braskem Fin Limited 7.250 06/05/18 USD 68.43 Braskem Fin Limited 7.250 06/05/18 USD 66.75 China Med Tech 4.000 08/15/13 USD 39.93 China Properties 9.125 05/04/14 USD 39.02 Country Garden 2.500 02/22/13 CNY 38.05 Dasa Finance 8.750 05/29/18 USD 68.00 DP World Sukuk 6.250 07/02/17 USD 51.00 Dubai Holding Comm 4.750 01/30/14 EUR 53.00 Dubai Holding Comm 6.000 02/01/17 GBP 55.92 DWR CYMN FIN 4.473 03/31/57 GBP 69.61 Embraer Overseas 6.375 01/24/17 USD 67.00 ESFG International 5.753 06/29/49 EUR 36.50 Fair Vantage Ltd 1.000 06/03/13 GBP 61.21 Gol Finance 7.500 04/03/17 USD 43.00 Gol Finance 7.500 04/03/17 USD 46.50 Gol Finance 8.750 04/29/17 USD 30.50 Greentown China 9.000 11/08/13 USD 30.50 Ja Solar Hold Company 4.500 05/15/13 USD 33.00 Lupatech Finance 9.875 07/29/49 USD 50.25 Mafrig Overseas 9.635 11/16/16 USD 48.02 Mazarin Fdg Ltd 0.250 09/20/68 EUR 4.73 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.73 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.73 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.73 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.73 Mazarin Fdg Ltd 0.630 09/20/68 GBP 10.83 Mazarin Fdg Ltd 1.440 09/20/68 GBP 22.15 Minerva Overse 9.500 02/01/17 USD 45.50 Mizuho Capital I 5.020 06/29/49 EUR 60.46 Mizuho Capital INV I 6.686 03/29/49 EUR 61.16 Mufg Cap Fin1 6.346 07/29/49 EUR 72.30 Mufg Cap Fin2 4.850 07/29/49 EUR 56.91 Mufg Cap Fin4 5.271 01/29/49 EUR 56.98 Mufg Cap Fin5 6.299 01/25/49 GBP 54.37 New Asat Finance 9.250 02/01/11 USD 6.26 Parkson Retail 7.125 05/30/12 USD 58.00 Prince Fin Global 4.500 01/26/17 EUR 72.64 Pubmaster Fin 6.962 06/30/28 GBP 53.41 Resona PFD Glob 7.191 12/29/49 USD 46.07 Seagate Tech HDD 6.800 10/01/16 USD 60.31 Shimao Property 8.000 12/01/16 USD 40.15 Shimao Property 8.000 12/01/16 USD 39.00 SMFG Preferred 6.078 01/29/49 USD 70.98 SMFG Preferred 6.164 01/29/49 USD 69.30 SMFG Preferred 6.164 01/29/49 USD 47.97 Subsea 2.800 06/06/11 USD 64.24 Suntech Power 3.000 03/15/13 USD 24.50 Tam Capital Inc. 7.375 04/25/17 USD 46.43 Tam Capital Inc. 7.375 04/25/17 USD 49.05 TMB Bank PCL/CI 7.750 05/29/49 USD 54.73 Transocean Inc. 1.500 12/15/37 USD 71.07 Trina Solar Limited 4.000 07/15/13 USD 33.55 UOB Cayman Limited 5.796 12/29/49 USD 64.84 Vestel Elec Fin 8.750 05/09/12 USD 38.89 Vontobel Cayman 11.350 01/23/09 USD 73.00 Vontobel Cayman 17.900 01/23/09 USD 48.60 Vontobel Cayman 11.300 04/24/09 USD 57.60 Vontobel Cayman 10.650 02/27/09 USD 52.40 Vontobel Cayman 10.550 02/27/09 USD 47.20 Xinao Gas Holdings 7.375 08/05/12 USD 64.50 XL Capital Limited 6.500 12/31/49 USD 25.62 DOMINICAN REPUBLIC ------------------ Dominican Republic 8.625 01/23/18 USD 50.36 Dominican Republic 9.040 01/23/18 USD 59.68 ECUADOR ------- Rep of Ecuador 12.000 11/15/12 USD 27.37 Rep of Ecuador 9.375 12/15/15 USD 28.25 EL SALVADOR ----------- El Salvador Rep 8.250 04/10/32 USD 60.25 El Salvador Rep 7.625 09/21/34 USD 67.75 El Salvador Rep 7.650 06/15/35 USD 57.68 JAMAICA ------- Jamaica Govt LRS 7.500 10/06/12 JMD 72.59 Jamaica Govt 8.000 06/24/19 USD 68.16 Jamaica Govt 8.000 03/15/39 USD 54.27 Jamaica Govt 8.500 02/28/36 USD 69.00 Jamaica Govt 9.250 10/17/25 USD 71.50 Jamaica Govt LRS 12.750 06/29/22 JMD 68.02 Jamaica Govt LRS 12.750 06/29/22 JMD 68.04 Jamaica Govt LRS 12.850 05/31/22 JMD 69.60 Jamaica Govt LRS 13.375 12/15/21 JMD 71.56 Jamaica Govt LRS 13.375 04/27/32 JMD 66.94 Jamaica Govt LRS 13.375 04/27/32 JMD 66.94 Jamaica Govt LRS 13.375 04/27/32 JMD 74.62 Jamaica Govt 14.000 10/27/14 EUR 74.98 MEXICO ------ Mer Lynch Int CV 8.000 01/30/09 CHF 56.80 Mer Lynch Int CV 10.760 03/16/09 CHF 35.97 Mer Lynch Int CV 11.200 03/16/09 CHF 27.61 Mer Lynch Int CV 11.330 03/16/09 CHF 66.00 Mer Lynch Int CV 11.400 03/16/09 CHF 58.77 Mer Lynch Int CV 11.540 03/16/09 CHF 73.12 Mer Lynch Int CV 11.660 03/16/09 CHF 12.72 Mer Lynch Int CV 11.720 03/16/09 CHF 28.15 Mer Lynch Int CV 11.730 03/16/09 CHF 74.71 Mer Lynch Int CV 12.200 03/16/09 CHF 22.08 Mer Lynch Int CV 12.460 03/16/09 CHF 29.90 Mer Lynch Int CV 12.760 03/16/09 CHF 24.38 Mer Lynch Int CV 13.100 03/16/09 CHF 42.11 Mer Lynch Int CV 13.280 03/16/09 CHF 12.19 Mer Lynch Int CV 13.720 03/16/09 CHF 55.15 Mer Lynch Int CV 14.530 03/16/09 CHF 19.74 Mer Lynch Int CV 14.890 03/16/09 CHF 30.77 Mer Lynch Int CV 15.000 03/16/09 CHF 59.80 Mer Lynch Int CV 15.220 03/16/09 CHF 22.69 Mer Lynch Int CV 15.520 03/16/09 CHF 36.98 Mer Lynch Int CV 16.330 03/16/09 CHF 12.75 Mer Lynch Int CV 16.380 03/16/09 CHF 10.65 Mer Lynch Int CV 16.450 03/16/09 CHF 42.02 Mer Lynch Int CV 16.800 03/16/09 CHF 31.78 Mer Lynch Int CV 17.140 03/16/09 CHF 47.79 Mer Lynch Int CV 18.000 03/27/09 CHF 48.00 Mer Lynch Int CV 18.020 03/27/09 CHF 69.61 Mer Lynch Int CV 19.110 03/16/09 CHF 10.69 Mer Lynch Int CV 19.380 03/16/09 CHF 01.97 Mer Lynch Int CV 22.000 03/16/09 CHF 09.25 Mer Lynch Int CV 22.670 03/16/09 CHF 07.25 PUERTO RICO ----------- Puerto Rico Cons 6.200 05/01/17 USD 70.00 Puerto Rico Cons 6.500 04/01/16 USD 69.75 PANAMA ------ Wilbros Group 2.750 03/15/24 USD 58.50 URUGUAY ------- Uruguay 3.700 06/26/37 UYU 41.87 Uruguay 4.250 04/05/27 UYU 52.75 Uruguay 5.000 09/14/18 UYU 67.12 Uruguay 7.625 03/21/36 UYU 70.00 Uruguay 7.875 07/15/27 UYU 73.81 VENEZUELA --------- Petroleos de Ven 5.250 04/12/17 USD 33.45 Petroleos de Ven 5.375 04/12/27 USD 29.75 Petroleos de Ven 5.500 04/12/37 USD 29.25 Venezuela 6.000 12/09/20 EUR 40.12 Venezuela 7.000 03/16/15 EUR 58.03 Venezuela 7.000 03/16/15 EUR 49.99 Venezuela 7.000 12/01/18 USD 45.00 Venezuela 7.000 03/31/38 USD 38.62 Venezuela 7.650 04/21/25 USD 43.50 Venezuela 8.500 10/08/14 USD 56.50 Venezuela 9.000 05/07/23 USD 48.50 Venezuela 9.250 09/15/27 USD 63.50 Venezuela 9.250 05/07/28 USD 49.00 Venzod - 189000 9.375 01/13/34 USD 49.00 Venzod - 189000 10.750 09/19/13 USD 66.50 Venezuela 10.750 09/19/13 USD 72.48 Venezuela 13.625 08/15/13 USD 73.00 Venezuela 05.750 02/26/16 USD 44.37 * Detroit 3 Willing to Work Under Gov't Oversight Board ------------------------------------------------------- CEOs of General Motors Corp., Ford Motor Co., and Chrysler LLC said on Thursday that they would be willing to put the companies under a government oversight board's supervision to secure financial help from the government, Josh Mitchell and Corey Boles at The Wall Street Journal reports. According to WSJ, Banking Committee Chairperson Christopher Dodd asked the CEOs during a Senate hearing on Thursday whether they would be willing to work within a structure similar to what was established for Chrysler Corp.'s federal bailout in 1979-1980. The report says that GM's Rick Wagoner, Ford Motor's Alan Mulally and Chrysler's Robert Nardelli agreed that the board could have the legal authority to dictate restructuring terms to the companies and others including unions, suppliers, and dealers. WSJ relates that Messrs. Wagoner, Mulally, and Nardelli admitted that they made mistakes in their management and told the lawmakers that they were unprepared for congressional hearings in November. The report says that after the Congress criticized the CEOs for not having credible plans to turn around their firms, the executives came back with detailed turnaround plans for each of their companies, increasing their financial aid request to US$34 billion from US$25 billion. According to WSJ, GM is asking for an immediate loan of about US$4 billion to stay afloat until year-end and an additional US$14 billion in 2009. Chrysler, says WSJ, is asking for an immediate loan of US$7 billion by year-end, while Ford Motor seeks for a US$9 billion line of credit. WSJ reports that as the Federal Reserve is expected to refuse the automakers' requests, the Congress and the Bush administration would decide on the matter. WSJ relates that the Democratic leaders have asked the Federal Reserve to review the turnaround plans. The report states that the central bank can lend to non- financial companies on a fully secured basis. Loans must be backed by assets, and GM, Ford Motor, and Chrysler don't appear to have collateral that would meet the criteria, according to the report. Sen. Dodd, WSJ states, was focusing on legislation that would create a bridge loan for automakers, by diverting funds from an loan program intended to help the industry retool to meet higher fuel-economy standards. WSJ reports that Senate Majority Leader Harry Reid urged Sen. Dodd to move forward. A bill supported by Democrats that would draw on the US$700 billion market rescue fund couldn't pass Congress, the report says, citing Sen. Reid. Citing people familiar with the matter, James Rowley and Linda Sandler at Bloomberg News report that GM and Chrysler executives are considering accepting a pre-arranged bankruptcy as last resort in securing government bailout. According to Bloomberg, the source said that the staff for three members of Congress have asked restructuring experts if a pre- arranged bankruptcy, which would be negotiated with workers, creditors, and lenders, could be used to reorganize the industry without liquidation. Automakers May Cut Temporary Pay for Laid-Off Workers Sharon Terlep at Dow Jones Newswires relates that sources said that automakers could seek to cut temporary pay for thousands of laid-off employees. The United Auto Workers, says the report, is preparing to revise labor deals reached with GM, Ford Motor, and Chrysler in 2007, agreeing to a delay in the payment of billions of dollars into a massive retiree health-care trust and the termination of the jobs bank program to help the companies secure the federal loans. According to Dow Jones, thousands of workers who are temporarily out of a job get supplementary unemployment benefits called SUB from the automakers under a separate fund. The SUB pay is less expensive for automakers on a per-worker basis than the jobs bank, but workers receiving the benefit have increased as the companies cut jobs and production due to decline in sales, states the report. *********** 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 * * *