/raid1/www/Hosts/bankrupt/TCRLA_Public/081212.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
Friday, December 12, 2008, Vol. 9, No. 247
Headlines
A R G E N T I N A
ASOCIACION MUTUAL: Trustee Verifying Proofs of Claim Until Nov. 27
AUTOMOVILES JACK: Proofs of Claim Verification Due on March 23
DANAN SA: Proofs of Claim Verification Due on February 18
MIRABRAS ARGENTINA: Proofs of Claim Verification Due on March 17
B E R M U D A
XL CAPITAL: Seeks Potential Buyer After Reporting Losses
XL CAPITAL: English High Court OKs Merger of 2 European Units
B R A Z I L
BRASKEM SA: Defers Projects w/ Pequiven Due to Credit Problems
CSN: To Buy Back 9.72 Million Shares for US$94.8 Million
CSN: Delays Production Cuts & Layoffs on Positive Market Signs
DELPHI CORP: Wants Sole Right to File Plan Extended to Jan. 31
TAM SA: Records 84.7% International Market Share in November
* BRAZIL: May Cut Interest Rates to Boost Economic Growth
C A Y M A N I S L A N D S
ALPHA LOW: Creditors' Proofs of Debt Due on December 15
ALPHA SELECT: Creditors' Proofs of Debt Due on December 24
BHRAMAVIRA CAPITAL: Creditors' Proofs of Debt Due on December 16
BHRAMAVIRA CAPITAL: Creditors' Proofs of Debt Due on December 16
COPINULA INVESTMENTS: Creditors' Proofs of Debt Due on Dec. 26
GRACECHURCH CAPITAL: Creditors' Proofs of Debt Due on December 24
MAMMOTH CBO: Creditors' Proofs of Debt Due on Dec. 26
NATIONWIDE CBO: Creditors' Proofs of Debt Due on Dec. 26
NYLIM HIGH: Creditors' Proofs of Debt Due on Dec. 26
ON PROPERTY: Creditors' Proofs of Debt Due on Dec. 26
PGS FOCUS-GLOBAL: Creditors' Proofs of Debt Due on December 24
POLAR CAPITAL: Creditors' Proofs of Debt Due on December 24
POLAR CAPITAL: Creditors' Proofs of Debt Due on December 24
SION HALL: Creditors' Proofs of Debt Due on December 24
TAURUSFOUR CDS: Creditors' Proofs of Debt Due on Dec. 26
TAURUSONECDS: Creditors' Proofs of Debt Due on Dec. 26
TAURUSSIX CDS: Creditors' Proofs of Debt Due on Dec. 26
TAURUSTWO CDS: Creditors' Proofs of Debt Due on Dec. 26
THE 12: Creditors' Proofs of Debt Due on Dec. 24
THE 12: Creditors' Proofs of Debt Due on Dec. 24
C H I L E
* CODELCO: Expects Lower Government Contribute Next Year
C O L O M B I A
BANCOLOMBIA: Reports Ps.86.9BB Unconsolidated Net Income in Nov.
ECOPETROL: Operating Profit Up 73% in 10-Months Ended October 2008
D O M I N I C A N R E P U B L I C
CAP CANA: US$100 Mil. Bridge Loan Deadline is December 29
* DOMINICAN REPUBLIC: Has Until Dec. 14 to Stop Mass Layoffs
J A M A I C A
AIR JAMAICA: Opposition Wants Gov't to Drop Divestment Deadline
* JAMAICA: IMF Sees More Difficult Economic Times in 2009
M E X I C O
HOME INTERIORS: Dennis Faulkner Appointed as Chapter 11 Trustee
P U E R T O R I C O
PILGRIM'S PRIDE: Suppliers, Lenders & PBGC Form Creditors Panel
V E N E Z U E L A
PETROLEOS DE VENEZUELA: S&P Keeps 'BB-' Corporate Credit Rating
VENEZUELA: S&P Puts Neg. Outlook & Keeps 'BB-/B' Credit Rating
X X X X X X X X
CABLE & WIRELESS: To Dismiss 32% of Workforce in the Caribbean
* House Passes US$14 Billion Financial Aid for Detroit's Big 3
- - - - -
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A R G E N T I N A
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ASOCIACION MUTUAL: Trustee Verifying Proofs of Claim Until Nov. 27
------------------------------------------------------------------
The court-appointed trustee for Asociacion Mutual de Ayuda entre
Asociados y Adherentes del Ceci Basket Ball Club's bankruptcy
proceedings will be verifying creditors' proofs of claim until
November 27, 2008.
The trustee will present the validated claims in court as
individual reports on February 11, 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
March 26, 2009.
AUTOMOVILES JACK: Proofs of Claim Verification Due on March 23
--------------------------------------------------------------
Andrea Krikorian, the court-appointed trustee for Automoviles Jack
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until March 23, 2009.
Ms. Krikorian will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 33, 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.
The Debtor can be reached at:
Automoviles Jack SA
Avenida Rivadavia 9470
Buenos Aires, Argentina
The Trustee can be reached at:
Andrea Krikorian
Montevideo 711
Buenos Aires, Argentina
DANAN SA: Proofs of Claim Verification Due on February 18
---------------------------------------------------------
Adolfo Santos, the court-appointed trustee for Danan SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until February 18, 2009.
Mr. Santos will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 8, 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.
The Debtor can be reached at:
Danan SA
Lavalleja 1036
Buenos Aires, Argentina
The Trustee can be reached at:
Adolfo Santos
Junin 55
Buenos Aires, Argentina
MIRABRAS ARGENTINA: Proofs of Claim Verification Due on March 17
----------------------------------------------------------------
Elida Victorero, the court-appointed trustee for Mirabras
Argentina SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until March 17, 2009.
Ms. Victorero will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 5 in Buenos Aires, with the assistance of Clerk
No. 10, 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.
Creditors will vote to ratify the completed settlement plan
during the assembly on December 2, 2009.
The Debtor can be reached at:
Mirabras Argentina SA
Lavalle 2762
Buenos Aires, Argentina
=============
B E R M U D A
=============
XL CAPITAL: Seeks Potential Buyer After Reporting Losses
--------------------------------------------------------
XL Capital Limited is seeking buyers for its business after it
reported investment losses larger than its market value, Bloomberg
News reports. The property and casualty underwriter, Bloomberg
News says, has been buffeted this year by losses stemming from the
global credit crisis and downgrades from three major credit-rating
companies.
According to The Associated Press, the company's shares tumbled
US$1.87 or 32.3% on Wednesday afternoon to US$3.92 after Bloomberg
News published a report on potential sale of the company.
In response to market rumors, the company issued a statement
saying that it is continuing to explore value-enhancing
opportunities available to it and is being assisted in that effort
by one of its long-standing financial advisors, Goldman, Sachs &
Co.
Bloomberg News notes that the insurer's sharp decline in stock
price could make it more affordable to a competitor, such as
Everest Re Group Ltd., Zurich Financial Services AG and Ace
Limited. The stock drop "suggests that Goldman is going to have
to look far and wide for a buyer," Sean Egan, president of Egan-
Jones Ratings Co. in Haverford, Pennsylvania, was quoted by
Bloomberg News as saying. "The issue is how many potential buyers
Goldman can line up for a troubled company in these troubled
times," he said.
The company posted a US$1.65 billion loss in the third quarter, as
it incurred a charge of US$1.42 billion tied to former subsidiary
Syncora Holdings Ltd. During the quarter, XL Capital made
payments and issued stock to Syncora, as part of a deal to end
reinsurance agreements between the them.
XL Capital, in its Dec. 10 statement, said it anticipates the
mark-to-market decline on its investment portfolio due to changes
in credit spreads and interest rates since the end of the third
quarter of 2008 to date would be largely in line with that
reported for the third quarter of 2008. The company noted that
future market movements will occur between now and the end of the
fourth quarter of 2008, and those movements will affect the mark-
to-market on the investment portfolio that the company will report
for the fourth quarter of 2008.
Moreover, the company anticipates US$200 million to US$220 million
in net investment fund affiliate losses from its alternative
investment portfolio for the fourth quarter of 2008.
About XL Capital
Headquartered in Bermuda, XL Capital Ltd. --
http://www.xlcapital.com/-- writes liability insurance and
reinsurance worldwide, specializing in low-frequency, high-
severity risks from riots to natural disasters. The company
writes policies through numerous subsidiaries, many of them
offshore, and also manages a Lloyd's of London syndicate. XL's
coverage includes general and executive liability, property, and
political risk insurance. Its reinsurance covers property,
aviation, energy, nuclear accident, and professional indemnity.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2008, A.M. Best Co. assigned a debt rating of "bb+"
to XL Capital Ltd's US$500 million series C preference shares
issued in connection with the company's exercise of the put
option under its Mangrove Bay Pass Through Trust contingent
capital facility. The rating is under review with negative
implications. Concurrently A.M. Best has withdrawn the debt
rating of "bb+" on Mangrove Bay's US$500 million 6.102% trust
preferred shares.
XL CAPITAL: English High Court OKs Merger of 2 European Units
-------------------------------------------------------------
XL Insurance, the global insurance operations of XL Capital Ltd.,
said the English High Court in London has approved the merger of
XL Europe Ltd (Dublin) into XL Insurance Company Ltd (London).
The order follows the approval of the business portfolio transfer
from XL Europe Ltd to XL Insurance Company Ltd by the Irish High
Court in Dublin on December 4, 2008.
The portfolio transfer and merger are due to take effect from
December 31, 2008 and form the culmination of a year-long project
to restructure and streamline XL Insurance's operations into a
single platform to serve the countries of the European Economic
Area as well as Asia and Australia. XL London Market Limited's
Lloyd's based business is unaffected by this change.
David Duclos, Chief Executive Officer at XL Insurance, said: "The
Court approval for the merger of XL Insurance Company Ltd and XL
Europe Ltd represents the final step in this long-term project.
This cross-border merger of insurance companies is the first of
its kind in the UK and Ireland, following the recent
implementation of the European Union's Merger Directive. It
involved close co- ordination between our underwriters,
compliance, legal and finance experts while keeping our clients
and brokers informed. The project started in 2007 and follows the
successful restructuring of XL's reinsurance segment in Europe two
years ago.
We believe that a single, streamlined European and Australasian
insurance platform will be better placed to serve our business
requirements and the needs of clients and their brokers. We
expect the simplified structure to improve capital efficiency and
put us in a strong position for Solvency II."
XL Insurance Company Ltd is registered in London and regulated by
the Financial Services Authority (FSA). The merged company has
capital and surplus of just under US$1 billion.
About XL Insurance
"XL Insurance" -- http://www.xlinsurance.com-- is the global
brand used by member insurers of the XL Capital Ltd group of
companies. XL Capital Ltd., through its operating subsidiaries, is
a leading provider of global insurance and reinsurance coverages
to industrial, commercial and professional firms, insurance
companies and other enterprises on a worldwide basis.
About XL Capital
Headquartered in Bermuda, XL Capital Ltd. --
http://www.xlcapital.com/-- writes liability insurance and
reinsurance worldwide, specializing in low-frequency, high-
severity risks from riots to natural disasters. The company
writes policies through numerous subsidiaries, many of them
offshore, and also manages a Lloyd's of London syndicate. XL's
coverage includes general and executive liability, property, and
political risk insurance. Its reinsurance covers property,
aviation, energy, nuclear accident, and professional indemnity.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2008, A.M. Best Co. assigned a debt rating of "bb+"
to XL Capital Ltd's US$500 million series C preference shares
issued in connection with the company's exercise of the put
option under its Mangrove Bay Pass Through Trust contingent
capital facility. The rating is under review with negative
implications. Concurrently A.M. Best has withdrawn the debt
rating of "bb+" on Mangrove Bay's US$500 million 6.102% trust
preferred shares.
===========
B R A Z I L
===========
BRASKEM SA: Defers Projects w/ Pequiven Due to Credit Problems
--------------------------------------------------------------
Braskem S.A. President Bernardo Gradin said the company has
postponed a joint venture project with Venezuela's state
petrochemicals company Pequiven due to credit restrictions and
forecast weak demand for thermoplastics next year, Bnamericas News
reports, citing local newspaper El Universal.
As reported by the Troubled Company Reporter - Latin America on
April 18, 2007, Braskem and Pequiven have signed an agreement
aiming at the formation of two joint ventures to develop and
implement integrated petrochemical project in the Americas, Jose
Petrochemical Complex.
The US$370-million joint venture will provide for the:
-- construction of an ethane cracker from natural gas with
annual capacity of 1.3 million tons of ethylene, 1.1 million
tons of polyethylene and other petrochemical products; and
-- construction of a polypropylene plant with annual production
capacity of 450 thousand tons.
According to Bnamericas, the projects are expected to be held up
by at least nine months.
"Financing is necessary for moving forward with a project and the
liquidity crisis has altered some schedules," Bnamericas quoted
Mr. Gradin as saying.
Braskem S.A. -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin America, and is among the three largest
Brazilian-owned private industrial companies. The company
operates 13 manufacturing plants located throughout Brazil, and
has an annual production capacity of 5.8 million tons of resins
and other petrochemical products. The company reported
consolidated net revenues of about US$9 billion in the trailing
twelve months through Sept. 30, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 11, 2008, Reuters said Braskem S.A. posted a third-quarter
net loss of BRL849 million (US$400.7 million) from a net income of
BRL132 million reais a year earlier, affected by the devaluation
of the real in the period.
As reported in the Troubled Company Reporter-Latin America on Jan.
17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local
currency issuer default ratings of Braskem S.A. Fitch also
affirmed the 'BB+' ratings on the company's senior
unsecured notes 2008, 2014, and senior unsecured notes 2017.
CSN: To Buy Back 9.72 Million Shares for US$94.8 Million
--------------------------------------------------------
Companhia Siderurgica Nacional S.A. plans to buy back 9.72 million
shares for BRL236 million (US$94.8 million), Bnamericas reports.
According to the report, the company's board approved the buyback
program, which the company expects to "maximize value for its
shareholders by means of an efficient capital management
structure."
The company, the report says, is repurchasing 9.72 million shares
at market value from December 4 through January 4. CSN currently
has some 445 million shares being traded on the Sao Paulo stock
exchange Bovespa, Bnamericas relates.
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells,
exports and distributes steel products, like hot-dip galvanized
sheets, tin mill products and tinplate. The company also runs its
own iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects. The group also operates in Brazil, Portugal, and the
U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 10, 2008, Moody's Investors Service upgraded the senior
unsecured long term debt ratings of Companhia Siderurgica Nacional
and its backed notes from Ba2 to Ba1.
The TCR-LA reported on June 6, 2008, that Standard & Poor's
Ratings Services raised its corporate credit rating on Brazil-
based steelmaker Companhia Siderurgica Nacional to 'BB+' from 'BB'
and removed it from CreditWatch. S&P had placed the ratings on
CreditWatch with positive implications on May 30, 2008, for better
cash flow protection measures. The outlook is positive. At the
same time, S&P raised the corporate credit rating on subsidiary
National Steel SA to 'BB-' from 'B+', with a positive outlook.
CSN: Delays Production Cuts & Layoffs on Positive Market Signs
--------------------------------------------------------------
Companhia Siderurgica Nacional S.A. (CSN) delayed its plan to
reduce production and employee layoffs despite week demands, due
to signs of an improving world market, John Kolodziejski of Dow
Jones Newswires reports, citing Estado de Sao Paulo newspaper.
According to the report, CSN President Benjamin Steinbruch said
the change in metal prices in the last 10 days and the resumption
of China's production rhythm, and increasing demanding for iron
ore are signs of improving world market.
"We have news that China is beginning to resume its production
rhythm and is demanding more iron ore," President Steinbruch
was quoted by the report as saying. "If China improves, the whole
world improves."
Mr. Steinbruch, as cited by the report, said CSN had not yet cut
production as Brazil is behind in feeling the effects of the
crisis. However, the report says, Brazil suspended raw material
purchases last month.
Until the signs of the crisis become clearer, CSN said it is
continuing to produce steel and delaying worker layoffs, the
report relates.
"Any decision taken today would be hasty because the scenario may
improve in January and (economic) activity resumes slowly,"
President Steinbruch was quoted by Dow Jones Newswires as saying.
Meanwhile, Dow Jones Newswires says CSN reduced output at its
units in Europe and the U.S. on slack demand.
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells,
exports and distributes steel products, like hot-dip galvanized
sheets, tin mill products and tinplate. The company also runs its
own iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects. The group also operates in Brazil, Portugal, and the
U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 10, 2008, Moody's Investors Service upgraded the senior
unsecured long term debt ratings of Companhia Siderurgica Nacional
and its backed notes from Ba2 to Ba1.
The TCR-LA reported on June 6, 2008, that Standard & Poor's
Ratings Services raised its corporate credit rating on Brazil-
based steelmaker Companhia Siderurgica Nacional to 'BB+' from 'BB'
and removed it from CreditWatch. S&P had placed the ratings on
CreditWatch with positive implications on May 30, 2008, for better
cash flow protection measures. The outlook is positive. At the
same time, S&P raised the corporate credit rating on subsidiary
National Steel SA to 'BB-' from 'B+', with a positive outlook.
DELPHI CORP: Wants Sole Right to File Plan Extended to Jan. 31
--------------------------------------------------------------
Delphi Corp. has asked the U.S. Bankruptcy Court for the Southern
District of New York to preclude its creditors' committee from
filing a competing plan before Jan. 31, Bill Rochelle of Bloomberg
News reports. The Delphi's reorganization plan that was confirmed
by the Bankruptcy Court in January 2008 prevents anyone other then
the committee from proposing a plan.
Mr. Rochelle also notes that the new motion, to be heard Dec. 17,
is silent about whether Delphi can emerge from Chapter 11 before
the fate of former parent General Motors Corp. is sorted out.
The hearing to consider preliminary approval of the Delphi Corp.'
and its affiliates' proposed modifications to their confirmed
First Amended Joint Plan of Reorganization is also scheduled for
hearing on Dec. 17, 2008, after the schedule was adjourned three
times.
Delphi presented to the Bankruptcy Court changes to an already
confirmed Plan after Appaloosa Management, L.P., and other
investors backed out from their commitment to provide US$2.550
billion in exit financing. The new plan does not require
financing from plan investors, but requires more funding from
primary customer General Motors Corp., which is facing its own
liquidity crisis, and US$3.75 billion from an exit debt financing
and a rights offering.
The Preliminary Plan Modification Hearing was originally scheduled
for October 23, 2008, and contemplated Delphi's emergence from
bankruptcy by Dec. 31, 2008. The modified plan does not require,
in addition to US$4,700,000,000 of debt exit financing,
Appaloosa's US$2,550,000,000 cash-for-equity investment, which was
the highlight of the Court-confirmed, but unconsummated, Jan. 25,
2008 PoR. The modified plan requires debt exit financing of
US$2.75 billion plus a US$1,000,000,000 raised through a rights
offering.
Delphi, however, has signed deals with General Motors Corp. and
its DIP Lenders, led by JPMorgan Chase Bank, N.A., in order to
have access to borrowed cash until mid-2009. Delphi, however, has
said that "in the face of the current unprecedented turbulence in
the credit markets and uncertainty in the automobile industry," it
does not anticipate emerging from chapter 11 prior to December 31,
2008, when its financing deals mature.
"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," John Wm. Butler,
Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in
Chicago, Illinois, said, in a court filing.
Under the modifications to the confirmed plan, unsecured creditors
could recover 38.8% compared with 100% under the confirmed pLan.
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. 151; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
TAM SA: Records 84.7% International Market Share in November
------------------------------------------------------------
TAM S.A. revealed operating data for November 2008, as disclosed
by the Brazilian National Civil Aviation Agency (ANAC).
According to ANAC, TAM registered 3.4% growth in domestic RPK
(demand) compared to the same period last year, and a 13.4%
increase in domestic ASK (supply). In November, market demand
decreased 1.0% and market supply increased 11.4%.
TAM registered domestic market share (RPK) of 51.7%, a 2.2 p.p.
increase compared to the same period in 2007. TAM's domestic load
factor was 65.8%, 3.3 p.p. higher than the market average of
62.5%.
In the international market, TAM registered 36.3% growth in RPK
and 32.4% in ASK, compared to November 2007. The company attained
market share of 84.7%, representing 11.4 p.p. growth year on year.
TAM attained 70.0% load factor, 4.2 p.p. higher than the market
average of 65.8%.
Operating data for November
Operating data Nov-08 Nov-07 Var. %
Domestic Market
ASK (millions) - Supply 2,964 2,615 13.40%
RPK (millions) - Demand 1,949 1,886 3.40%
Load Factor 65.80% 72.10% -6.4 p.p.
Market share 51.70% 49.50% 2.2 p.p.
International Market
ASK (millions) - Supply 1,878 1,419 32.40%
RPK (millions) - Demand 1,315 965 36.30%
Load Factor 70.00% 68.00% 2.0 p.p.
Market share 84.70% 73.30% 11.4 p.p.
Operating data Jan-Nov Jan-Nov Var. %
2008 2007
Domestic Market
ASK (millions) - Supply 31,898 27,925 14.20%
RPK (millions) - Demand 21,853 19,657 11.20%
Load Factor 68.50% 70.40% -1.9 p.p.
Market share 50.40% 48.90% 1.5 p.p.
International Market
ASK (millions) - Supply 18,922 14,372 31.70%
RPK (millions) - Demand 14,441 10,153 42.20%
Load Factor 76.30% 70.60% 5.7 p.p.
Market share 74.30% 67.20% 7.1 p.p.
About TAM S.A.
TAM S.A. -- http://www.tam.com.br/-- has business agreements
with the regional airlines Pantanal, Passaredo, Total and Trip.
As of Jan. 14, the daily flight on the Corumba -- Campo Grande
route in Mato Grosso do Sul began to be operated by a partnership
with Trip. With the expansion of the agreement with NHT, TAM will
now be serving 82 destinations in Brazil, 45 of which with its own
flights. In addition, the company is strengthening its presence
in Rio Grande do Sul and Santa Catarina.
The company's international operations include direct flights to
17 destinations: New York and Miami (USA), Paris (France), London
(England), Milan (Italy), Frankfurt (Germany), Madrid (Spain),
Buenos Aires and Cordoba (Argentina), Santiago (Chile), Caracas
(Venezuela), Montevideo and Punta del Este (Uruguay), AsunciOn and
Ciudad del Este (Paraguay), and Santa Cruz de la Sierra and
Cochabamba (Bolivia)
* * *
As reported in the Troubled Company Reporter-Latin America on
July 14, 2008, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Brazil-based airline TAM S.A.
to 'BB-' from 'BB'. S&P's outlook is revised to stable from
negative.
As reported in the TCR-Latin America on June 23, 2008, Fitch
Ratings affirmed the 'BB' Foreign and Local Currency Issuer
Default Ratings of TAM S.A. Fitch also affirmed the 'BB' rating
of its US$300 million senior unsecured notes due in 2017 as well
as the company's 'A+(bra)' national scale rating and its first
debentures issuance of BRL500 million. Fitch revised its rating
outlook to negative from stable.
* BRAZIL: May Cut Interest Rates to Boost Economic Growth
---------------------------------------------------------
Brazil's central bank signaled it may be ready to cut interest
rate as early as its next meeting as growth slows, Bloomberg News
reports.
As reported by the Troubled Company Reporter - Latin America on
Dec. 11, 2008, Bloomberg News said the central bank might keep the
current benchmark interest rate at a two-year high on inflation
concerns amid political pressures for an immediate cut to boost
economic growth. Policy makers, led by Central Bank President
Henrique Meirelles, decided to keep the rate at 13.75% for a
second straight meeting on Dec. 10, according analysts surveyed by
Bloomberg.
Inflation has exceeded targets for almost a year due to a
weakening currency and higher food prices, Bloomberg News noted.
This has limited banks' ability to cut interest rates.
According to Bloomberg News, Marco Maciel, chief economist at
Banco Pine SA, said the bank may cut borrowing costs at its next
meeting Jan. 21 to sustain an expansion that has stalled in the
face of the global credit crisis. "It depends on whether the
currency and wholesale inflation settle at a lower level," Mr.
Maciel told Bloomberg in a phone interview. "A cut is a very big
possibility because the data coming out until then should show an
even more abrupt falloff."
Meanwhile, Bloomberg News notes, Alvise Marino, an emerging market
economist at IDEA global in New York, said the fact policy makers
considered a cut may lower yields on Brazil's interest-rate
futures contract and local bonds.
The Federative Republic of Brazil is the largest and most populous
country in South America. It is the fifth largest country by
geographical area, the fifth most populous country, and the fourth
most populous democracy in the world. Its population comprises
the majority of the world's Portuguese speakers.
According to Moody's Rating Agency, the country continues to carry
a BA1 local and foreign currency rating.
==========================
C A Y M A N I S L A N D S
==========================
ALPHA LOW: Creditors' Proofs of Debt Due on December 15
-------------------------------------------------------
The creditors of Alpha Low Volatility 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 Oct. 24, 2008.
The company's liquidator is:
Banque Privee Edmond de Rothschild Europe
20 Boulevard Emmanuel Servais
Luxembourg L-2535
ALPHA SELECT: Creditors' Proofs of Debt Due on December 24
----------------------------------------------------------
The creditors of Alpha Select Fund are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Oct. 24, 2008.
The company's liquidator is:
Banque Privee Edmond de Rothschild Europe
20 Boulevard Emmanuel Servais
Luxembourg L-2535
BHRAMAVIRA CAPITAL: Creditors' Proofs of Debt Due on December 16
----------------------------------------------------------------
The creditors of Bhramavira Capital Fund Limited are required to
file their proofs of debt by December 16, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 20, 2008.
The company's liquidator is:
David A.K. Walker
c/o Skye Quinn
PO Box 258, Grand Cayman KY1-1104
Cayman Islands
Telephone:(345) 914 8678
Facsimile:(345) 945 4237
BHRAMAVIRA CAPITAL: Creditors' Proofs of Debt Due on December 16
----------------------------------------------------------------
The creditors of Bhramavira Capital Master Fund Limited are
required to file their proofs of debt by December 16, 2008, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 20, 2008.
The company's liquidator is:
David A.K. Walker
c/o Skye Quinn
PO Box 258, Grand Cayman KY1-1104
Cayman Islands
Telephone:(345) 914 8678
Facsimile:(345) 945 4237
COPINULA INVESTMENTS: Creditors' Proofs of Debt Due on Dec. 26
--------------------------------------------------------------
The creditors of Copinula Investments Ltd. are required to file
their proofs of debt by December 26, 2008, to be included in the
company's dividend distribution.
The company's liquidator is:
Gloria Virginia de la Paz Ferguson de Borja
Suite 400 A, 245 S.E.
1st Street, Miami, Florida 33131
United States
GRACECHURCH CAPITAL: Creditors' Proofs of Debt Due on December 24
-----------------------------------------------------------------
The creditors of Gracechurch Capital are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 11, 2008.
The company's liquidator is:
Avalon Management Limited
c/o Avalon Management Limited
c/o P.O. Box 715, Grand Cayman KY1-1107
Cayman Islands
Telephone:(+1) 345 946.4422
Facsimile:(+1) 345 769.9351
MAMMOTH CBO: Creditors' Proofs of Debt Due on Dec. 26
----------------------------------------------------
The creditors of Mammoth CBO 2001-1 Ltd. are required to file
their proofs of debt by December 26, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
NATIONWIDE CBO: Creditors' Proofs of Debt Due on Dec. 26
-----------------------------------------------------
The creditors of Nationwide CBO 2000-1 Ltd. are required to file
their proofs of debt by December 26, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
NYLIM HIGH: Creditors' Proofs of Debt Due on Dec. 26
----------------------------------------------------
The creditors of Nylim High Yield CDO 2001, Ltd. are required to
file their proofs of debt by December 26, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
ON PROPERTY: Creditors' Proofs of Debt Due on Dec. 26
-----------------------------------------------------
The creditors of On Property Funding Corp. are required to file
their proofs of debt by December 26, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
PGS FOCUS-GLOBAL: Creditors' Proofs of Debt Due on December 24
--------------------------------------------------------------
The creditors of PGS Focus-Global Currency Ltd. are required to
file their proofs of debt by December 24, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 3, 2008.
The company's liquidators are:
Linburgh Martin
John Sutlic
c/o Kim Charaman
P.O. Box 1034, Grand Cayman KY1-1102
Telephone:(345) 949 8455
Facsimile:(345) 949 8499
POLAR CAPITAL: Creditors' Proofs of Debt Due on December 24
-----------------------------------------------------------
The creditors of Polar Capital Japan Fund Limited are required to
file their proofs of debt by December 24, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 6, 2008.
The company's liquidator is:
Avalon Management Limited
c/o Avalon Management Limited
c/o P.O. Box 715, Grand Cayman KY1-1107
Cayman Islands
Telephone:(+1) 345 946.4422
Facsimile:(+1) 345 769.9351
POLAR CAPITAL: Creditors' Proofs of Debt Due on December 24
-----------------------------------------------------------
The creditors of Polar Capital Lotus Fund Limited are required to
file their proofs of debt by December 24, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 6, 2008.
The company's liquidator is:
Avalon Management Limited
c/o Avalon Management Limited
c/o P.O. Box 715, Grand Cayman KY1-1107
Cayman Islands
Telephone:(+1) 345 946.4422
Facsimile:(+1) 345 769.9351
SION HALL: Creditors' Proofs of Debt Due on December 24
-------------------------------------------------------
The creditors of Sion Hall Macro Master Fund Limited are required
to file their proofs of debt by December 24, 2008, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on August 1, 2008.
The company's liquidator is:
Avalon Management Limited
c/o Avalon Management Limited
c/o P.O. Box 715, Grand Cayman KY1-1107
Cayman Islands
Telephone:(+1) 345 946.4422
Facsimile:(+1) 345 769.9351
TAURUSFOUR CDS: Creditors' Proofs of Debt Due on Dec. 26
--------------------------------------------------------
The creditors of Taurusfour CDS are required to file their proofs
of debt by December 26, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
TAURUSONECDS: Creditors' Proofs of Debt Due on Dec. 26
--------------------------------------------------------
The creditors of Taurusfour CDS are required to file their proofs
of debt by December 26, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
TAURUSSIX CDS: Creditors' Proofs of Debt Due on Dec. 26
-------------------------------------------------------
The creditors of Taurussix CDS are required to file their proofs
of debt by December 26, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
TAURUSTWO CDS: Creditors' Proofs of Debt Due on Dec. 26
-------------------------------------------------------
The creditors of Taurustwo CDS are required to file their proofs
of debt by December 26, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
THE 12: Creditors' Proofs of Debt Due on Dec. 24
------------------------------------------------
The creditors of The 12 Capital Fund SPC Ltd. are required to file
their proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on November 5, 2008.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone:(345) 914-6314
THE 12: Creditors' Proofs of Debt Due on Dec. 24
------------------------------------------------
The creditors of The 12 Capital Yen Fund Ltd. are required to file
their proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on November 5, 2008.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone:(345) 914-6314
=========
C H I L E
=========
* CODELCO: Expects Lower Government Contribute Next Year
--------------------------------------------------------
Mining Minister Santiago Gonzalez said state-owned copper producer
Corporacion Nacional del Cobre (Codelco) may contribute about US$1
billion to Chilean government coffers next year, down from an
estimated US$5 billion this year, Bloomberg News reports citing El
Diario Financiero.
Minister Gonzalez, as cited by the report, said the company is
seeking to cut costs as copper prices will probably average
US$1.60 a pound next year.
According to the report, Codelco last year contributed US$8.45
billion to the government.
Corporacion Nacional del Cobre -- Codelco -- explores, develops,
mines and processes copper in Chile. The principal product of
the company is Grade A copper cathodes. The company, which is
owned by Chilean government, exports most of its production to
companies in Europe and Asia.
===============
C O L O M B I A
===============
BANCOLOMBIA: Reports Ps.86.9BB Unconsolidated Net Income in Nov.
----------------------------------------------------------------
Bancolombia S.A. reported unconsolidated net income of
Ps. 86.9 billion in November 2008. Net income for Bancolombia on
an unconsolidated basis totaled Ps. 981.4 billion for the first
eleven months of 2008, increasing 35.5% as compared to the same
period of 2007*.
-- Net interest income, including investment securities,
totaled Ps. 238.3 billion in November 2008. For the eleven
month period ended November 30, 2008, net interest income
totaled Ps. 2,339.7 billion, increasing 35.4% as compared to
the same period last year.
-- Net fees and income from services in November 2008 totaled
Ps. 61.7 billion. For the eleven month period ended
November 30, 2008, net fees and income from services totaled
Ps. 714.8 billion, which represents an increase of 19.1% as
compared to the same period of 2007.
-- Other operating income totaled Ps. 80.6 billion in November
2008. For the eleven month period ended November 30, 2008,
other operating income totaled Ps. 546.2 billion, increasing
92.3% as compared to the same period last year. Bancolombia
notes that a considerable part of this revenue comes from
dividend income received from subsidiaries, which is
eliminated in the consolidated results as it is an
intercompany transaction. As a result, this dividend income
is only recorded in Bancolombia's unconsolidated results.
-- Net provisions totaled Ps. 132.1 billion in November 2008.
Net provisions totaled Ps. 623.2 billion for the eleven month
period ended November 30, 2008, which represents an increase
of 148.6% as compared to the same period of 2007.
-- Operating expenses totaled Ps. 140.4 billion in November
2008. For the eleven month period ended November 30, 2008,
operating expenses totaled Ps. 1,588.4 billion, increasing
12.9% as compared to the same period of 2007.
Total assets (unconsolidated) amounted to Ps. 38.5 trillion, loans
amounted to Ps. 27.8 trillion, deposits totaled Ps. 24.0 trillion
and Bancolombia's total shareholders' equity amounted to Ps. 5.8
trillion.
Bancolombia's (unconsolidated) level of past due loans as a
percentage of total loans amounted to 3.36% as of
November 30, 2008, and the level of allowance for past due loans
amounted to 135.89% as of the same date.
Market Share
According to ASOBANCARIA (Colombia's national banking
association), BANCOLOMBIA's market share of the Colombian
financial system as of November 2008 was as follows: 18.8% of
total deposits, 21.6% of total net loans, 20.3% of total savings
accounts, 21.4% of total checking accounts and 15.4% of total time
deposits.
About Bancolombia S.A.
Bancolombia S.A. is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and
US$1.4 billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York S0tock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 23, 2008, Moody's Investors Service upgraded to Ba2, stable
from Ba3, positive the foreign-currency deposit ratings assigned
to the two banks it rates in Colombia. This action is the direct
result of Moody's decision to upgrade Colombia's foreign currency
country ceilings for bonds and deposits to Baa3 and Ba2,
respectively.
At the same time, Moody's upgraded Bancolombia's foreign currency
subordinated bond rating to Baa3 from Ba1. The outlook is stable.
ECOPETROL: Operating Profit Up 73% in 10-Months Ended October 2008
------------------------------------------------------------------
Ecopetrol S.A.'s net income rose 146% between January and October
of this year, relative to the same period of 2007, to 10.68
trillion pesos (US$4.6 billion), Latin American Herald Tribune
reports.
The company's operating profits also increased to 12.53 trillion
pesos (US$5.37 billion) in the first 10 months of this year,
up 73% from 7.24 trillion pesos ($3.1 billion) in Jan.-Oct. 2007,
the report says.
The company, the report notes, attributed the positive financial
results to higher international prices of oil, greater crude and
gas production and increased exports.
According to the report, the company had total operating revenues
of 29.2 trillion pesos (US$12.6 billion), up 68% from the same
period of 2007.
Ecopetrol, meanwhile, exported 210,000 barrels of oil equivalent
per day in the first 10 months of this year, compared with 144,000
barrels per day in the same period last year, the report adds.
Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest
company in Colombia as measured by revenue, profit, assets and
shareholders' equity. The Company is Colombia's only vertically
integrated crude oil and natural gas company with operations in
Colombia and overseas. Ecopetrol is one of the 40 largest
petroleum companies in the world and one of the four principal
petroleum companies in Latin America. It is majority owned by the
Republic of Colombia and its shares trade on the Bolsa de Valores
de Colombia S.A. (BVC) under the symbol ECOPETROL. The Company
divides its operations into four business segments that include
exploration and production; transportation; refining; and
marketing of crude oil, natural gas and refined-products.
* * *
As reported by the Troubled Company Reporter-Latin America on
November 12, 2008, Fitch Ratings affirmed Ecopetrol S.A.'s
foreign and local currency issuer default ratings at 'BB+' and
'BBB-', respectively. The Rating Outlook is Stable.
==================================
D O M I N I C A N R E P U B L I C
==================================
CAP CANA: US$100 Mil. Bridge Loan Deadline is December 29
---------------------------------------------------------
A PRNewswire report posted on Dominican Today's Web site said
resort complex Cap Cana S.A. disclosed that the composition of the
lenders under its US$100 million bridge loan, dated as of November
20, 2007, has changed and that the default for non-payment of
principal that occurred on November 19, 2008 has been waived.
According to the report, the company said the final maturity of
the bridge loan has been extended until December 29, 2008,
providing it with additional time to define restructuring
alternatives.
Cap Cana was advised by the Weston Group on this transaction and
represented by Simpson Thacher & Bartlett LLP, the report says.
Cap Cana S.A. is owner and developer of a resort complex on the
Dominican easter tip.
* DOMINICAN REPUBLIC: Has Until Dec. 14 to Stop Mass Layoffs
------------------------------------------------------------
With exports plunging more than 60 percent, the La Vega Industrial
Free Zone Companies Association warned that if they don't receive
the incentives pending from the Dominican government before
December 15, they'll be forced to lay off around 4,000 workers,
Dominican Today reports.
According to the report, the Association affirmed that if they
don't get the funds, its member companies will not be able to pay
the Christmas bonus (paycheck #13) to their employees, and that
the possibilities of reopening the factories in January are
remote.
=============
J A M A I C A
=============
AIR JAMAICA: Opposition Wants Gov't to Drop Divestment Deadline
---------------------------------------------------------------
The opposition group in Jamaica, led by Senator Noel Sloley, has
asked the government to rescind the March 31, 2009 deadline for
the divestment of Air Jamaica until a suitable bidder surfaces,
Balford Henry of Jamaican Observer reports.
As reported by the Troubled Company Reporter - Latin America on
November 20, 2008, Jamaica Information Service said the divestment
of Air Jamaica is scheduled to be completed by March 31, 2009.
"The Divestment Committee is working with the International
Finance Corporation, a member of the World Bank. The final phase
of the divestment, marketing and implementation, is currently
underway and the marketing document, an information memorandum,
has been finalized," the report cited Senator Don Wehby as saying.
Jamaica Gleaner related Air Jamaica President Bruce Nobles
admitted there is no clear plan for the future of the airline if
the management fails to divest the carrier by the March 31
deadline.
According to a TCRLA report on October 20, 2008, The Jamaica
Gleaner said Air Jamaica is set to lose US$108 million during the
present financial year. However, the global slowdown in aviation
and financial markets, and Jamaica's own economic uncertainty,
will not derail plans for the divestment of Air Jamaica, said
Senator Don Wehby.
That same report noted Mr. Nobles and his team had been in
discussion with potential purchasers to ensure the divestment is
completed by the deadline. The Government has contracted the
services of IFC, the private sector arm of the World Bank, as
consultants and advisers in the divestment process, the same
report added.
Jamaican Information Service related Senator Wehby said, "The
deliverables for the divestment are clear. The Air Jamaica brand
must be maintained; adequate airlift must be provided for the
island; and the selected partner must have extensive airline
experience, matched with the appropriate capital."
"Rescind the deadline and assure customers that the Government
will continue to support the operation, until a suitable purchaser
has been identified," Senator Sloley was quoted by Jamaican
Observer as saying. The government should also direct the
management to prepare a Plan B for an efficient operation to
maximize utilization of existing routes, he said.
The Observer notes that Senator Sloley and the Opposition fully
supported the decision to divest the airline, but disagreed with
the methodology. "What we would have done, which is what you (the
government) should have been doing over the past 14 months, is to
have restructured the airline to: improve efficiency; reduce
losses; and improve its balance sheet to make it more attractive
to prospective buyers," he said.
The Observer relates Senator Sloley also said the time line for
divestment was unrealistic, and was undercutting the bargaining
position of the government.
"My last point on the divestment is that there should be no
government guarantees involved in leasing or purchasing planes or
guarantees for loans. Nor should the government retain share
ownership after privatisation," the report cited Senator Sloley as
saying. "Such ownership invariably runs the risk of moral hazard
which, as we have seen, has imposed enormous additional debt
burdens on taxpayers," he said.
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.
The Jamaican government owned 25% of the company after it went
private in 1994. However, in late 2004, the government assumed
full ownership of the airline after an investor group turned over
its 75% stake. The Jamaican government does not plan to own Air
Jamaica permanently.
* * *
As reported by the Troubled Company Reporter-Latin America on
Nov. 6, 2008, Moody's Investors Service placed the debt ratings of
Air Jamaica Limited, B1 senior unsecured notes guaranteed by the
Government of Jamaica, on review for possible downgrade. The
review coincides with Moody's action placing the ratings of the
Government of Jamaica under review for downgrade on November 4,
2008.
* JAMAICA: IMF Sees More Difficult Economic Times in 2009
---------------------------------------------------------
International Monetary Fund (IMF) Managing Director Dominique
Strauss Khann warned there will be even more difficult economic
times for Jamaica next year and called on the government to
correct policies currently implemented, Gleaner News reports.
According to the report, Mr. Strauss Khan suggested where possible
there should also be fiscal stimulus which would mean more
spending or reducing taxes.
However, the report relates Mr. Strauss Khann said given Jamaica's
debt problems this may not be advisable.
Jamaica's total debt is now equal to 110 percent of the country's
total value of goods and service, the report notes.
===========
M E X I C O
===========
HOME INTERIORS: Dennis Faulkner Appointed as Chapter 11 Trustee
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved the appointment by the United States Trustee of Dennis
Faulkner as Chapter 11 trustee in Home Interiors & Gifts, Inc. and
debtor-affiliates' bankruptcy cases.
Dennis Faulkner, of the accounting firm of Lain, Faulkner & Co.,
P.C., is a member of the American Bankruptcy Institute and the
Association of Insolvency and Restructuring Advisors. Lain,
Faulkner & Co., P.C. is an accounting firm which specializes in
bankruptcy, litigation and business advisory services.
About Home Interiors
Headquartered in Carrollton, Texas, Home Interiors & Gifts, Inc.
-- http://www.homeinteriors.com/-- manufactures, imports and
distributes indoor and outdoor home decorative accessories. It
was founded by Mary Crowley in 1957. Through its affiliates, the
company has a significant presence in Mexico, Puerto Rico, and
Canada. Annual revenue in 2007 reached $300 million. When Mary
Crowley, died in 1986, her son, Don Carter continued the business
operation nearly debt-free. In a leveraged transaction in 1998,
private equity firm of Hicks, Muse, Tate, and Furst acquired 66%
of the parent company, which resulted in the imposition of more
than $500 million in debt on the Debtors. In the face of
decreased sales and increased debt load, bondholders canceled
their debts in February 2006 in exchange for receiving most of the
outstanding equity of the Debtors.
About 40% of the goods the Debtors sell are now acquired from
manufacturers in China. In the last decade, sales volume in the
U.S. has waned, but the Debtors reported that sales in Mexico and
Puerto Rico significantly increased.
The company and six of its affiliates filed for Chapter 11
protection on April 29, 2008 (Bankr. N.D. Tex. Lead Case No.
08-31961). Andrew Jillson, Esq., Cameron Kinvig, Esq., Robert
McCormick, Esq., and Mike Massad, Esq., at Hunton & Williams, LLP,
represent the Debtors in their restructuring efforts. The U.S.
Trustee for Region 6 has appointed seven creditors to serve on an
Official Committee of Unsecured Creditors. Richard A. Lindenmuth
at Boulder International LLC, is designated as CRO. Munsch Hardt
Kopf & Harr, PC represents the Committee in these cases. When the
Debtors filed for protection against their creditors, they listed
assets and debts of between US$100 million and US$500 million
each.
====================
P U E R T O R I C O
====================
PILGRIM'S PRIDE: Suppliers, Lenders & PBGC Form Creditors Panel
---------------------------------------------------------------
Bill Rochelle of Bloomberg News notes that the official committee
of unsecured creditors in Pilgrim's Pride Corp.'s cases include
representatives of lenders, suppliers, the Pension Benefit
Guaranty Corp., and investor Oaktree Capital Management LLC.
As reported by the Troubled Company Reporter, William T.
Neary, the United States Trustee for Region 7, has appointed nine
members to the Official Committee of Unsecured Creditors in the
Chapter 11 cases of Pilgrim's Pride Corp. and its debtor
affiliates.
The Creditors' Committee members are:
(1) Ala Trade Foods, LLC
Attn: Davis Lee
725 Blount Avenue
Guntersville, AL 35976
Tel No.: (256) 571-9696
Fax No.: (256) 571-9977
E-mail: pyacey@alatrade.com
(2) The Bank of New York Mellon Trust
Attn: J. Chris Matthews
601 Travis 16th Floor
Houston, TX 77002
Tel No.: (713) 483-6267
Fax No.: (713) 483-6979
E-mail: j.chris.matthews@bnymellon.com
(3) Calamos Advisors LLC
Attn: John Krasucki
2020 Calamos Court
Naperville, IL 60563
Tel No.: (630) 245-7215
Fax No.: (630) 245-7522
E-mail: jkrasucki@calamos.com
(4) HSBC Bank USA, National Association
Attn: Sandra E. Horwitz
10 East 40th Street, 14th Floor
New York, NY 10016-0200
Tel No.: (212) 525-1358
Fax No.: (212) 525-1366
E-mail: Sandra.e.horwitz@us.hsbc.com
(5) International Paper Company
Attn: Ronald Borcky
4049 Willow Lake Blvd.
Memphis, TN 38118
Tel No.: (901) 419-1295
Fax No.: (901) 419-1235
(6) Kornitzer Capital Management/Great Plains Trust
Company/Buffalo Funds
Attn: John C. Kornitzer
P.O. Box 918
Shawnee Mission, KS 66201
Tel No.: (913) 384-4339
Fax No.: (913) 754-1530
E-mail: john@buffalofunds.com
(7) Newly Weds Foods, Inc.
Attn: Brian Toth
4140 West Fullerton Avenue
Chicago, IL 60639
Tel No.: (773) 292-7647
Fax No.: (773) 292-2423
E-mail: mlopez@newlywedsfoods.com
(8) Oaktree Capital Management, L.P.
Attn: Frances Nelson
333 S. Grand Avenue
28th Floor
Los Angeles, CA 90071
Tel No.: (213) 830-6467
Fax No.: (213) 830-8567
E-mail: fnelson@oaktreecapital.com
(9) Pension Benefit Guaranty Corp.
Attn: Marc Pfeuffer
1200 K Street NW
Washington, DC 20009
Tel No.: (202) 326-4020 x 4903
Fax No.: (202) 326-4112
E-mail: Pfeuffer.marc@pbgc.gov
Pursuant to Section 1103 of the Bankruptcy Code, the Creditors
Committee may:
-- consult with the Debtors concerning the administration of
the bankruptcy cases;
-- investigate the acts, conduct, assets, liabilities, and
financial condition of the Debtors, the operation of the
Debtors' business and the desirability of the continuance
of the business, and any other matter relevant to the case
or to the formulation of a plan of reorganization for the
Debtors;
-- participate in the formulation of a plan, advise its
constituents regarding the Committee's determinations as
to any plan formulated, and collect and file with the
Court acceptances or rejections of the plan;
-- request the appointment of a trustee or examiner; and
-- perform other services as are in the interest of its
constituents.
The Creditors Committee may retain counsel, accountants, or other
agents, to represent or perform services for the group.
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.
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.
(Pilgrim's Pride Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: S&P Keeps 'BB-' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Petroleos de Venezuela S.A. to negative from stable.
At the same time, S&P affirmed its 'BB-' long-term corporate
credit rating on the company.
"The outlook revision follows the outlook change on the Bolivarian
Republic of Venezuela to negative from stable," said S&P's credit
analyst Enrique Gomez Tagle, CFA.
The ratings on PDVSA and Venezuela, its sole shareholder, are
tightly linked, reflecting S&P's opinion that PDVSA is a public
policy-based institution that plays a central role in meeting the
sovereign's political and economic objectives. The ties of
ownership and economic interests between PDVSA and Venezuela are
evident in the significant contribution of the oil industry to
government revenues (50%) and the country's exports (90%).
PDVSA has evolved into an institution that plays a direct role in
social programs and has acted as an acquisition vehicle for some
industries (particularly electricity) that are deemed strategic
for the government. The sharp increases in direct social spending
by PDVSA and investments in nonoil-related assets support S&P's
opinion. Furthermore, in 2008, PDVSA's bylaws were modified,
introducing as part of the company's objectives the promotion of
the country's organic and sustainable development, including
agricultural and industrial activities.
The ratings assigned to PDVSA also consider the inconsistencies
observed in reported production figures versus those of other
sources and the absence of an external audit of its reserve base.
In S&P's opinion, the weighting toward heavy and extra-heavy crude
in the issuer's reserve base presents technical and financial
challenges that create uncertainty around its stated production
targets. Furthermore, S&P is concerned about the issuer's ability
to attract foreign investment in light of the government's
decision to restructure PDVSA's operating service agreements,
grant PDVSA a majority share in the heavy oil production, and
upgrade projects in the Orinoco Zuata region. The ratings factor
in S&P's expectations that PDVSA's key financial measures will
weaken as a result of the recent decline in oil prices and that
its exposure to commodity price volatility will weigh more heavily
on its financial performance.
PDVSA's position as one of the world's leading integrated national
oil companies supports the rating. PDVSA's standing in the
industry reflects its mandate to develop Venezuela's considerable
proven reserve base, low finding and development costs, and its
ownership of CITGO Petroleum Corp. (CITGO; BB/Stable/--), one of
the leading refiners in the U.S.
S&P expects PDVSA's liquidity to tighten in 2009. S&P expects the
company to be free-cash-flow negative during the next few years
given the ongoing government-directed large social expenditures
and the reduction in international oil prices. Based on S&P's
experience with other national oil companies that carry a similar
burden, it's S&P's opinion that reductions in social and
government transfers are difficult to implement. Unrestricted
cash and equivalents as of June 30, 2008, totaled $5.9 billion,
compared to $3.0 billion in debt maturities in the next 12 months.
The negative outlook reflects the outlook on Venezuela, S&P's
expectations that PDVSA will remain a public policy-based
institution, and that its role in meeting the sovereign's
political and economic objectives will be maintained or increased.
Future changes to PDVSA's ratings will be tied to changes in the
sovereign's credit quality.
VENEZUELA: S&P Puts Neg. Outlook & Keeps 'BB-/B' Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on the Bolivarian Republic of Venezuela to negative from
stable.
S&P also said that it affirmed its 'BB-/B' sovereign credit rating
on Venezuela.
"We revised the outlook because political considerations in
Venezuela will, in S&P's view, likely delay needed adjustments in
economic policies given the sharp drop in international oil
prices," explained S&P's credit analyst Robert Sifon Arevalo. S&P
revised its 2009 projection for Venezuela's average crude oil
export price to $40/barrel from the 2008 average of $87/barrel.
In this context, S&P expects that Venezuela's current account will
move into a deficit of 4.3% of GDP in 2009 from an expected
surplus of 12.5% in 2008. This, in S&P's view, will hurt the
government's external asset position, as seen by the performance
of international reserves, which already have fallen by nearly
$2 billion after peaking at about $40.5 billion on Oct. 30.
In S&P's view, political factors have become more important after
the results of the Nov. 23 regional elections, in which the
opposition won in the largest population centers of the country,
including the capital, Caracas. Subsequently, and contrary to the
consensus among political analysts, President Hugo Chavez launched
a campaign aiming to call a referendum that could allow him to
modify the constitution so that he would be able to run again for
the presidency in 2013. "We expect that as the government
continues to work under a political campaign mode, at least until
March 2009, it will be less likely to tighten fiscal and monetary
policy to tackle the negative impact of lower oil prices on a
timely basis," Mr. Sifon Arevalo added.
S&P expects that the financial impact will be significant, as the
general government balance will likely move into a deficit of
about 5.4% of GDP from an expected surplus of 1.5% in 2008. Also,
the fall in oil prices -- coupled with a troubled political
scenario -- will likely hurt economic output in 2009. GDP growth
should come down to 3.3% in 2009 from 5.5% in 2008. In addition,
inflation continues to run at more than 30%, making the
adjustments of higher taxes and devaluation to lower fiscal
imbalances more difficult.
"If the government places public finances on a more sustainable
footing by quickly undertaking measures to counterbalance the
negative shock from lower oil prices, S&P could revise the outlook
back to stable," Mr. Sifon Arevalo said. "On the other hand, if
oil prices were to decline below current expectations, without any
structural adjustment, the country's external and fiscal
indicators could deteriorate further, putting downward pressures
on the ratings."
===============
X X X X X X X X
===============
CABLE & WIRELESS: To Dismiss 32% of Workforce in the Caribbean
--------------------------------------------------------------
The Associated Press reports Cable & Wireless PLC is dismissing
about 1,200 workers at its Caribbean operations as part of a
regional restructuring.
According to the report, Cable & Wireless said layoffs at its
landline, internet, mobile, entertainment (LIME) operations will
affect employees in 13 islands.
The report recalls Cable & Wireless management announced in
September that up to 2,500 people in the Caribbean could be laid
off once restructuring is complete. LIME currently employs about
3,700 workers.
The report relates 200 people already had been laid off as of
March. LIME spokesman Errol Miller said layoffs will end in
September 2009, the report notes.
Headquartered in London, England, Cable & Wireless plc --
http://www.cw.com/-- is an international telecommunications
company. The Company offers mobile, broadband and domestic and
international fixed line services to homes, small and medium-sized
enterprises, corporate customers and governments. It operates in
39 countries through four major operations in the Caribbean,
Panama, Macau and Monaco & Islands. It operates through two
businesses: International and Europe, Asia & US. Its
International business operates full service telecommunications
companies through four major operations in the Caribbean, Panama,
Macau and Monaco and Islands. Its Europe, Asia & US provides
enterprise and carrier solutions to the largest users of telecom
services across the United Kingdom, continental Europe, Asia and
the United States. Its subsidiaries include Cable & Wireless UK,
Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable &
Wireless (Barbados) Ltd and Monaco Telecom SAM.
* * *
According to Bloomberg data, Cable & Wireless plc continues to
carry Moody's "Ba3" long-term corporate family rating, "B1" senior
unsecured debt rating and "Ba3" probability of default rating with
a stable outlook.
The company continues to Standard & Poor's "BB-" long-term foreign
and local issuer credit ratings and "B" short-term foreign and
local issuer credit ratings.
* House Passes US$14 Billion Financial Aid for Detroit's Big 3
--------------------------------------------------------------
Greg Hitt at The Wall Street Journal reports that The House of
Representatives has passed the bill on the government financial
assistance being requested by General Motors Corp., Ford Motor
Co., and Chrysler LLC.
According to WSJ, the Democrats and the Bush administration hoped
for a Senate vote as early as Dec. 11 and enactment by week's end.
Republicans in the Senate objected the bill, which could affect
the bailout, says the report. The report quoted Sen. Richard
Shelby as saying, "I'm going to oppose the package because I think
this is just the down payment on billions and billions to come.
These are failed or failing companies." Sen. John Cornyn,
according to the report, said that he and other Republicans have
concerns on whether the proposed "car czar," who would supervise
the bailout program, would be able to force concessions needed to
return the industry to financial stability. Some Republicans said
that they might support the bailout especially if the car czar is
given stronger authority to dictate terms of a restructuring.
The Auto Federal Financial Assistance Bill
The bill states that the U.S. president will designate one or more
officers from the Executive Branch with appropriate expertise in
areas like economic stabilization, financial aid to commerce and
industry, financial restructuring, energy efficiency, and
environmental protection, to facilitate the restructuring
necessary to achieve the long-term financial viability of the
automakers. The president will also appoint may appoint
additional persons with expertise.
The president's designee will determine by Jan. 1, 2009,
appropriate measures for assessing the progress of each eligible
automobile manufacturer toward transforming the plan submitted by
the automakers to the Congress on Dec. 2, 2008, into a
restructuring plan to be submitted by March 31, 2009, aimed at
achieving and sustaining long-term viability, international
competitiveness, and energy efficiency of the automakers.
Up to US$14 billion in loans will be provided. Loans shall mature
in seven years, or the President's designee may determine a longer
period. The loans will have (a) 5% interest during the five-year
period beginning on the date on which the designee disburses the
loan; and (b) 9% interest after the end of the five-year period.
Payments will be made semi-annually. The loans shall be
prepayable without penalty at any time.
Borrowers must then allow the designee access to their books,
papers, records, or other data; and those of their subsidiaries,
affiliates, or entity holding an ownership interest of 50% or
more. They must provide information requested by the designee and
promptly inform the designee of any asset sale, investment,
contract, commitment, or other transaction proposed to be entered
into that has a value in excess of US$100 million, and any other
material change in the financial condition of the automakers.
If the borrowers fail to make adequate progress towards meeting
the restructuring progress assessment measures established by the
designee, or if after March 31, 2009, the borrowers fail to submit
an acceptable restructuring plan or fail to comply with any
conditions or requirement applicable under the Act or applicable
fuel efficiency and emissions requirements, or the borrowers fail
to make adequate progress in the implementation of their
restructuring plan, repayment of any loan may be accelerated to an
earlier date, and any other financial assistance may be cancelled
by the designee;
The designee may not provide any loan unless he or she receives
from the borrowers:
-- securities which are traded on a national securities
exchange, a warrant giving the right to the designee to
receive nonvoting common stock or preferred stock or a
voting stock in the company; and
-- a warrant for common or preferred stock or an instrument
that is the economic equivalent of such a warrant in the
holding company of the eligible borrower, or any company
that controls a majority stake in the borrower.
The designee shall require the borrowers to meet appropriate
standards for executive compensation and corporate governance,
which include, among other things:
-- limits on compensation that exclude incentives for senior
executive officers of the borrower
-- provision for the recovery of any bonus or incentive
compensation paid to a senior executive officer based on
statements of earnings, gains, or other criteria that are
later found to be materially inaccurate;
-- prohibition to make any golden parachute payment to a
senior executive officer
A copy of the bill is available for free at:
http://ResearchArchives.com/t/s?3607
***********
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 * * *