/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090108.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 Thursday, January 8, 2009, Vol. 9, No. 5 Headlines A R G E N T I N A BERURENA & ASOCIADOS: Verifying Proofs of Claim Until April 7 CIRCULO DE SUBOFICIALES: Verifying Proofs of Claim Until April 27 EJOTA SA: Verifying Proofs of Claim Until April 27 GEMIKA SA: Verifying Proofs of Claim Until March 3 IMPORTADORA SOFT: Verifying Proofs of Claim Until April 23 LOCHIESA SRL: Verifying Proofs of Claim Until February 27 NAMPULA PLASTIC: Verifying Proofs of Claim Until March 20 PROXIMA GROUP: Verifying Proofs of Claim Until April 9 SEGURIDAD AMERICANA: Verifying Proofs of Claim Until March 25 TELECOM ARGENTINA: Gov't. Freezes Telecom Italia's Stake in Firm UNITRANS LTDA: Verifying Proofs of Claim Until March 20 VALPLAST SRL: Verifying Proofs of Claim Until March 26 B E R M U D A GE CAPITAL: Commences Liquidation Proceedings GE CAPITAL: Members' Final Meeting Set for January 16 GE CAPITAL: Members' Final Meeting Set for January 19 GE CAPITAL: Commences Liquidation Proceedings MAN VISION: Placed Under Voluntary Liquidation MAN VISION: Members' Final Meeting Set for January 16 MEDITOR MASTER: Commences Liquidation Proceedings MEDITOR MASTER: Members' Final Meeting Set for January 16 RISK INTERMEDIATION: Commences Liquidation Proceedings RISK INTERMEDIATION: Members' Final Meeting Set for January 16 WP STEWART: Receives NYSE Notice on Low Market Capitalization XL CAPITAL: Unit Taps Michael Martin as Chief Property Underwriter B R A Z I L BLOCKBUSTER INC: Bank Loan Sells at 41% Discount TELE NORTE: Shares Hit One-Month Low on Goldman Sachs Downgrade * BRAZIL: Nov. Industrial Output Drops Lowest in 7 Years C A Y M A N I S L A N D S ACORN ALTERNATIVE: Placed Under Voluntary Liquidation AIREXEC SERVICES: Enters Liquidation Proceedings BLUEFOX HOLDINGS: Placed Under Voluntary Liquidation COLUMBUS INC: Enters Liquidation Proceedings CRESCENT POINT: Placed Under Voluntary Liquidation JRG INVESTMENTS: Enters Liquidation Proceedings LATROBE FUNDING: Commences Liquidation Proceedings MUTUAL FUND: Placed Under Voluntary Liquidation MUTUAL FUND: Placed Under Voluntary Liquidation MUTUAL FUND: Placed Under Voluntary Liquidation MUTUAL FUND: Placed Under Voluntary Liquidation OTKRITIE RUSSIAN: Placed Under Voluntary Liquidation PGS FOCUS-PAULSON: Enters Liquidation Proceedings PTMM CAYMAN I: Placed Under Voluntary Liquidation RALEIGH WASTE: Placed Under Voluntary Liquidation REEM INDIA: Placed Under Voluntary Liquidation SEBAGO PARTNERS: Placed Under Voluntary Liquidation TABWT CAPITAL: Commences Liquidation Proceedings TRANSPARENT VALUE: Placed Under Voluntary Liquidation TRANSPARENT VALUE: Placed Under Voluntary Liquidation C O L O M B I A GRAN TIERRA: Protests Cost Firm 80% in Lost Oil Output D O M I N I C A N R E P U B L I C CAP CANA: Defaults on US$250 Mil. Sr. Secured Notes, Seeks Waiver * DOMINICAN REPUBLIC: Gov't to Pay US$358MM Debt to Power Firms J A M A I C A AIR JAMAICA: Local Group Mulls Investing in Airline NTCS: Must Pay US$17 Million Debt to Maintain Operations - - - - - ================= A R G E N T I N A ================= BERURENA & ASOCIADOS: Verifying Proofs of Claim Until April 7 ------------------------------------------------------------- The court-appointed trustee for Berurena & Asociados S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until April 7, 2009. CIRCULO DE SUBOFICIALES: Verifying Proofs of Claim Until April 27 ----------------------------------------------------------------- The court-appointed trustee for Circulo de Suboficiales del Servicio Penitenciario Federal Argentino's bankruptcy proceedings will be verifying creditors' proofs of claim until April 27, 2009. The trustee will present the validated claims in court as individual reports on June 10, 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 23, 2009. EJOTA SA: Verifying Proofs of Claim Until April 27 -------------------------------------------------- The court-appointed trustee for Ejota S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until April 27, 2009. The trustee will present the validated claims in court as individual reports on May 12, 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 21, 2009. GEMIKA SA: Verifying Proofs of Claim Until March 3 -------------------------------------------------- The court-appointed trustee for Gemika S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 3, 2009. The trustee will present the validated claims in court as individual reports on May 12, 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 26, 2009. IMPORTADORA SOFT: Verifying Proofs of Claim Until April 23 ---------------------------------------------------------- The court-appointed trustee for Importadora Soft Hard S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until April 23, 2009. The trustee will present the validated claims in court as individual reports on June 8, 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 August 3, 2009. LOCHIESA SRL: Verifying Proofs of Claim Until February 27 --------------------------------------------------------- The court-appointed trustee for Lochiesa S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until Feb. 27, 2009. The trustee will present the validated claims in court as individual reports on April 17, 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 29, 2009. NAMPULA PLASTIC: Verifying Proofs of Claim Until March 20 --------------------------------------------------------- The court-appointed trustee for Nampula Plastic S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 20, 2009. PROXIMA GROUP: Verifying Proofs of Claim Until April 9 ------------------------------------------------------ The court-appointed trustee for Proxima Group S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until April 9, 2009. The trustee will present the validated claims in court as individual reports on May 22, 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 6, 2009. SEGURIDAD AMERICANA: Verifying Proofs of Claim Until March 25 ------------------------------------------------------------- The court-appointed trustee for Seguridad Americana Segam S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 25, 2009. The trustee will present the validated claims in court as individual reports on May 12, 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 24, 2009. TELECOM ARGENTINA: Gov't. Freezes Telecom Italia's Stake in Firm ---------------------------------------------------------------- Argentina's antitrust commission ordered Telecom Italia not to change its participation in Telecom Argentina S.A. due to concerns over Telefonica's indirect stake in the Italian company, Lucas Bergman of Reuters reports. The report relates the commission's resolution, sent by Telecom Argentina to the Buenos Aires stock exchange, said Telecom Italia "should abstain" from exercising its option to buy, cede or transfer its shares in Telecom Argentina until the government agency makes a final ruling on the case. According to the report, as part of a consortium, Spain's Telefonica bought an indirect 10% stake in Telecom Italia in 2007, the report recalls. The companies operate Argentina's two biggest telephone companies: Telefonica de Argentina and Telecom Argentina. The report states citing monopoly concerns in the local telecommunications market, the government moved to deter Telefonica from trying to boost its participation in Telecom Argentina. "The deal being studied would result, prima facie, in economic consolidation and could affect the general economic interest," the antitrust commission was quoted by the news agency as saying. The report says Argentine firm is indirectly controlled by Telecom Italia and Argentina's Werthein family, through a company called Sofora Telecomunicaciones S.A. Telecom Italia has an option to buy the Wertheins' stake in Sofora, but the commission's decision temporarily bars such a move, Reuters notes. About Telecom Argentina Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone-related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. * * * As reported by the Troubled Company Reporter - Latin America on Dec. 23, 2008, Fitch Ratings lowered Telecom Argentina's local currency Issuer Default Rating to 'B-' from 'B' and its Country Ceiling to 'B' from 'B+'. These rating action follows the downgrade of the Republic of Argentina's local currency Issuer Default Rating to 'B-' from 'B' and its Country Ceiling to 'B' from 'B+'. The corporate ratings have been downgraded by Fitch. They have also been removed from Rating Watch Negative, and a Rating Outlook of Stable has been assigned. UNITRANS LTDA: Verifying Proofs of Claim Until March 20 ------------------------------------------------------- The court-appointed trustee for Unitrans Ltda.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 20, 2009. The trustee will present the validated claims in court as individual reports on May 8, 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 23, 2009. VALPLAST SRL: Verifying Proofs of Claim Until March 26 ------------------------------------------------------ The court-appointed trustee for Valplast S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 26, 2009. The trustee will present the validated claims in court as individual reports on May 29, 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 August 10, 2009. ============= B E R M U D A ============= GE CAPITAL: Commences Liquidation Proceedings --------------------------------------------- The members of GE Capital Investments met on December 10, 2008, and resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 29, 2008, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton in the Islands of Bermuda GE CAPITAL: Members' Final Meeting Set for January 16 ----------------------------------------------------- The members of GE Capital Investments will hold their final general meeting on January 16, 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. 10, 2008. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton in the Islands of Bermuda GE CAPITAL: Members' Final Meeting Set for January 19 ----------------------------------------------------- The members of GE Capital Hong Kong Investments will hold their final general meeting on January 19, 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. 10, 2008. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton in the Islands of Bermuda GE CAPITAL: Commences Liquidation Proceedings --------------------------------------------- The members of GE Capital Hong Kong Investments met on Dec. 10, 2008, and resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 29, 2008, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton in the Islands of Bermuda MAN VISION: Placed Under Voluntary Liquidation ---------------------------------------------- The members of Man Vision EUR Trading Ltd met on Dec. 11, 2008, and resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 29, 2008, will be included in the company's dividend distribution. The company's liquidator is: Beverly Mathias c/o Argonaut Limited 5 Park Road, Hamilton HM O9 Bermuda, in the Islands of Bermuda MAN VISION: Members' Final Meeting Set for January 16 ----------------------------------------------------- The members of Man Vision EUR Trading Ltd will hold their final general meeting on January 16, 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. 11, 2008. The company's liquidator is: Beverly Mathias c/o Argonaut Limited 5 Park Road, Hamilton HM O9 Bermuda, in the Islands of Bermuda MEDITOR MASTER: Commences Liquidation Proceedings ------------------------------------------------- The members of Meditor Master Hawk Fund Limited resolved to voluntarily liquidate the company's business on Dec. 9, 2008. Only creditors who were able to file their proofs of debt by Dec. 29, 2008, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton in the Islands of Bermuda MEDITOR MASTER: Members' Final Meeting Set for January 16 --------------------------------------------------------- The members of Meditor Master Hawk Fund Limited will hold their final general meeting on January 16, 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. 9, 2008. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton in the Islands of Bermuda RISK INTERMEDIATION: Commences Liquidation Proceedings ------------------------------------------------------ The members of Risk Intermediation Structured Capital (Bermuda) Ltd. met on December 9, 2008, and resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 29, 2008, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton in the Islands of Bermuda RISK INTERMEDIATION: Members' Final Meeting Set for January 16 -------------------------------------------------------------- The members of Risk Intermediation Structured Capital (Bermuda) Ltd. will hold their final general meeting on January 16, 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. 9, 2008. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton in the Islands of Bermuda WP STEWART: Receives NYSE Notice on Low Market Capitalization ------------------------------------------------------------- W.P. Stewart & Co. Ltd. has been notified by the New York Stock Exchange that the company is considered below continued listing criteria since its average market capitalization was less than US$25 million over a 30 trading-day period. In light of such non- compliance, the company's common shares will not continue to be eligible for trading on the NYSE. Under applicable NYSE procedures, the company has 10 days from the receipt of official notice of non-compliance to appeal the delisting proceedings with the NYSE. The company does not expect to submit an appeal of the NYSE delisting. In conversations with the NYSE, it was determined that trading of the Company's common shares on the NYSE will be suspended effective at the opening of the market on Friday, January 9, 2009. In light of such delisting and for the other reasons explained below, the company intends to terminate the registration of its common shares under the Securities Exchange Act of 1934 ("Exchange Act"). On or before January 30, 2009, the company will file with the SEC a Form 15, Notice of Termination of Registration and Suspension of Duty to File, to terminate its reporting obligations under the Exchange Act. When the Form 15 has been filed, the Company's obligation to file certain reports with the SEC, such as Forms 20-F and 6-K, will be suspended. The deregistration of the company's common shares under the Exchange Act will become effective 90 days after the date on which the Form 15 was filed. The company is eligible to deregister under the Exchange Act because its common shares were held of record by fewer than 300 persons on January 1, 2009, the beginning of its fiscal year. The company has applied to the Bermuda Stock Exchange to convert its secondary listing on the BSX to a primary listing. The company expects its common shares will also continue to trade in the Pink Sheets, a centralized electronic quotation service for over-the-counter securities, so long as market makers demonstrate an interest in trading in the company's common shares. The company will provide its new ticker symbol for trading on the Pink Sheets as soon as it becomes available. Although the company currently intends to publicly provide information necessary to maintain trading in these markets, including quarterly earnings reports consistent with its historical practice, the company can give no assurance that its common shares will continue to be actively traded on the Pink Sheets, on the BSX or on any other securities exchange or quotation medium. The company's client portfolios significantly outperformed the S&P 500 in 2008, and the company continues to seek opportunities to grow its business. In relation to the announcements, Mark Phelps, President and Chief Executive Officer, commented: "2008 has been a challenging year for W.P. Stewart, exacerbated by the dramatic fall in the stock market in the second half of the year. Nevertheless, against this background the company has continued to restructure itself and has performed relatively well for its clients compared to the market. We have also welcomed Arrow Capital Management as a significant new shareholder through the investment by several of its funds. As we move into 2009, it is clear that we need to take further steps to reduce costs, consolidate the corporate structure and enter into new distribution arrangements that will enable us once again to grow our assets under management. The deregistering of the common shares and ceasing to trade on the NYSE will go a significant way toward reducing the company's costs, and it will better enable management to focus on investment performance and potential new distribution arrangements that are central to our long-term strategy for success. Following the delisting of the company's common shares on the NYSE, we expect that shareholders will be able to continue trading on the BSX and the Pink Sheets and have taken steps to facilitate continued trading in these markets." In light of the severe downturn in the securities markets and the global economic recession, the company has now concluded that it can no longer sustain the burdens of being a publicly reporting company under the Exchange Act. The Board of Directors' decision to deregister under the Exchange Act was based on the recommendation of a Special Committee of independent directors. The Special Committee and the Board were of the view that compliance with the reporting requirements of the Exchange Act and with the requirements of the Sarbanes-Oxley Act of 2002 is disproportionately expensive and unduly complex in relation to the Company's business, earnings and size. The Board of Directors believes that its decision will result in significant cost-savings and will enable management to focus more intensely on delivering long-term shareholder value. In reaching its decision, the Board considered a number of specific factors, including among other things: -- the ongoing direct and indirect costs of Exchange Act compliance and the disproportionate impact of the foregoing costs on the Company's profitability; -- the significant burden on the Company's management involved in the preparation of the Company's public reports and compliance with accounting and other requirements of the Exchange Act; -- the limited benefits to the Company and its unaffiliated shareholders from the Company's status as a "reporting company" in light of, among other things, the fact that the price of the common shares has been low and the common shares have had limited liquidity in recent periods; -- the availability of a means to provide continued transparency and some liquidity for shareholders in the Pink Sheets and on the BSX; -- the market value of the common shares and the Company's imminent delisting from the NYSE; and -- the substantially reduced scale of operations of the Company over the past two years. Stock Repurchase Program The company also disclosed that its Board of Directors has authorized a stock repurchase program of up to US$1.5 million of repurchase cost. The company said that such purchases may be made in the discretion of the company from time to time at prevailing prices in the open market, by block purchases, in private transactions or in derivative transactions in compliance with any applicable SEC or BSX regulations. The company has approximately 5.54 million common shares outstanding. Any repurchased shares will be canceled or held in treasury for general corporate purposes. The company intends to fund any such repurchases with cash on hand. Investment Performance Update The performance for the W.P. Stewart U.S. Equity Composite (the "Composite") for the year ended December 31, 2008 was -30.2%, pre- fee, and -31.2%, post-fee, compared to -37.0% for the S&P 500. These performance results are preliminary and subject to change on final reconciliation of all relevant data. The company releases composite portfolio investment returns on a monthly basis. In respect of the above results, Alex von Furstenberg of Arrow Capital Management stated, "While W.P. Stewart's market value has dramatically declined since our initial investment, we are very pleased with the firm's investment performance and the steps it has taken to prepare for growth in the years ahead. I remain convinced that the kind of high quality work that the firm does will be very much back in favor as investors take stock of what has happened in the recent past." Assets Under Management Assets under management ("AUM") at September 30, 2008 were approximately US$1.9 billion, compared with approximately US$2.2 billion at June 30, 2008. In the attached tables a complete breakdown of AUM flows with comparisons to earlier periods is provided. As of December 31, 2008, AUM was approximately $1.4 billion; the majority of the decline from September 30, 2008 reflects market value changes. Third Quarter 2008 Financial Results The company reported a net loss of US$31.2 million, or US$0.62 per share (diluted) and US$0.62 per share (basic), for the third quarter ended September 30, 2008. This loss includes third quarter non-recurring, cash and non-cash charges of approximately US$22.2 million or US$0.44 per share (diluted). Of such amount, the non-recurring, non-cash charges of approximately US$18.7 million related to an impairment of intangible assets and goodwill, representing a complete write-down of the remaining balance. The impairment of intangible assets reflects a decrease in assets under management, the fees from which were supporting intangible assets per the Financial Accounting Standards Board (SFAS No. 142) and the impairment of goodwill is the result of the decline in market capitalization as compared with the value of shareholder's equity. In addition, non-recurring, cash charges of approximately US$3.5 million were incurred in the period reflecting agreements with certain employees whose employment terminated during the quarter and the initiative to complete a strategic transaction, which initiative resulted in an investment by funds managed by Arrow Capital Management. Excluding these non-recurring, cash and non-cash charges, the third quarter 2008 net loss was US$9.0 million, or US$0.18 per share (diluted). These results compare with net income in the third quarter of 2007 of US$9.2 million, or US$0.20 per share (diluted) and US$0.20 per share (basic). These prior year results include a non-recurring gain on the sale of the company's aircraft of US$10.2 million, post tax, as well as non-recurring expenses of US$2.0 million related to agreements with employees whose employment with the Company terminated in the quarter. Net results on a cash basis for the quarter ended September 30, 2008 were -US$7.6 million (net loss of US$31.2 million adjusted to include US$23.6 million, representing non-cash income and expenses consisting of unrealized gains and losses, non-cash compensation, depreciation, amortization and other non-cash charges, including the non-recurring impairment charges referred to above, on a tax- effected basis), or - US$0.15 per share (diluted). In the same quarter of the prior year, cash earnings were US$13.3 million (net income of US$9.2 million adjusted for the inclusion of US$4.1 million representing non-cash income and expenses consisting of unrealized gains and losses, non-cash compensation, depreciation, amortization and other non-cash charges on a tax-effected basis), or US$0.29 per share (diluted). For the third quarter of 2008 there were 50,406,516 common shares outstanding on a weighted average diluted basis (50,406,516 - weighted average basic) compared to 46,242,070 common shares outstanding for the third quarter of 2007 on the same weighted average diluted basis (46,190,607 - weighted average basic). Subsequent to the third quarter, the company completed a one-for- ten share consolidation, pursuant to which every ten common shares, par value US$0.001 per share, outstanding as of November 19, 2008 were consolidated, reclassified and converted into one new common share of the company, par value US$0.01 per share. All share numbers and per share dollar figures for the period ended September 30, 2008 are provided prior to, and without giving effect to, the share consolidation. Nine Month Results For the nine months ended September 30, 2008 the net loss was US$42.8 million, or US$0.90 per share (diluted) and US$0.90 per share (basic), on revenues of US$27.7 million. This loss includes non-recurring cash and non-cash charges of approximately US$24.4 million or US$0.51 per share (diluted). For the nine- month period there were non-recurring, non-cash charges of approximately US$18.8 million or US$0.39 per share (diluted), which as noted above for the third quarter, included US$18.7 million related to an impairment of intangible assets and goodwill. In addition, during the nine-month period there were certain non-recurring cash charges related to agreements with certain employees whose employment terminated during the year and our initiative to complete a strategic transaction, which initiative resulted in an investment by funds managed by Arrow Capital Management. Excluding these non-recurring, cash and non- cash charges, for the nine months ended 2008, the net loss was US$18.3 million, or US$0.38 per share (diluted). For the nine months ended September 30, 2007 the company recorded a net loss of US$10.4 million or US$0.23 per share (diluted) and US$0.23 per share (basic), on revenues of US$84.8 million. These results include a non-recurring gain on the sale of the company's aircraft of US$10.2 million, post tax, offset by non- recurring charges of approximately US$18.0 million, taken in the second quarter of 2007, related to an impairment of intangible assets and non-recurring charges of approximately US$7.8 million related to agreements with certain employees, reached in the first and third quarters of 2007, whose employment with the company terminated in those quarters. Net results on a cash basis for the nine months ended September 30, 2008 were -US$10.3 million (net loss of US$42.8 million adjusted to include US$32.5 million, representing non-cash income and expenses consisting of unrealized gains and losses, non-cash compensation, depreciation, amortization and other non-cash charges, including the non-recurring impairment charges referred to above, on a tax-effected basis), or -US$0.22 per share (diluted). In the same period of the prior year, cash earnings were US$26.0 million (net loss of US$10.4 million adjusted for the inclusion of US$36.4 million representing non-cash income and expenses consisting of unrealized gains and losses, non-cash compensation, depreciation, amortization and other non-cash charges, including a non-recurring impairment charge, on a tax- effected basis), or US$0.56 per share (diluted). For the nine months ended September 30, 2008, there were 47,738,182 common shares outstanding on a weighted average diluted basis (47,738,182 - weighted average basic) compared to 46,097,326 common shares outstanding for the same period in 2007 on the same weighted average diluted basis (46,071,553 - weighted average basic). Included with this release are tables containing revenue and expense detail for the third quarter and nine months ended 30 September 2008 with comparisons with prior periods. Other Items The average gross management fee was 1.09%, annualized, for the quarter ended September 30, 2008 and 1.07%, annualized, for the nine months ended September 30, 2008 compared to 1.05% and 1.07%, annualized, for each of the comparable periods of the prior year. Excluding performance fee based accounts, the average gross management fee was 1.30%, annualized, for the quarter ended September 30, 2008 and 1.26%, annualized, for the nine months ended September 30, 2008 compared to 1.27% and 1.23%, annualized, for each of the comparable periods of the prior year. For the third quarter of 2008 non-cash compensation expense related to the company's restricted share issuances to employees was approximately US$3.5 million. For the nine months ended September 30, 2008, these non-cash compensation charges were approximately US$10.2 million. In the third quarter and nine months of 2007, these non-cash compensation charges were approximately US$4.6 million and US$13.9 million, respectively. These non-cash compensation expenses are included in "employee compensation and benefits". The company currently anticipates that full year 2008 total revenue will be in the range of approximately US$31.5 million to US$32.5 million. The company will not recognize further impairment charges due to the total impairment reported above for the third quarter of 2008. The company had cash and marketable securities at September 30, 2008 of US$44.6 million. The company has no debt. As of December 31, 2008, the company had cash and marketable securities balances in excess of US$41.0 million. Shareholders' equity at September 30, 2008 was approximately US$47.5 million. About W.P. Stewart & Co W.P. Stewart & Co., Ltd. -- http://www.wpstewart.com-- is an asset management company that has provided research-intensive equity investment management services to clients worldwide. Headquartered in Hamilton, Bermuda, with additional operations or affiliates in the United States, Europe, Asia and the Netherlands Antilles, W.P. Stewart & Co. managed approximately US$4.1 billion in assets, as of December 31, 2007 and approximately US$2.8 billion at May 16, 2008. The company's client accounts are primarily for high-net-worth individuals and trusts, partnerships, private corporations and other entities, in which high-net-worth individuals have a substantial interest, as well as for institutions. Its client base is geographically diverse, with 31% of its assets under management from non-United States clients. XL CAPITAL: Unit Taps Michael Martin as Chief Property Underwriter ------------------------------------------------------------------ XL Insurance, the global insurance operations of XL Capital Ltd, named Mike Martin as Chief Property Underwriter for the Americas. Commenting on the appointment, John Gallagher, XL Insurance's Chief Underwriting Officer for Global Property, said: "Mike's appointment is well-deserved. It underscores his solid track record for profitable underwriting and his commitment to providing XL Insurance clients with appropriate property coverages, risk engineering and loss prevention guidance. Mike's technical underwriting expertise, knowledge of our clients' industries and overall enthusiasm personify why XL Insurance's property team has the reputation that it does in our market." Mr. Martin was previously XL Insurance's Property Underwriting Manager for the Southeastern U.S. and Latin America. He joined XL Insurance in 2001 when XL acquired Winterthur International. Prior experience also included working with Industrial Risk Insurers. Throughout his career, Mr. Martin has garnered considerable global underwriting experience from his management responsibilities for XL Insurance's property underwriting in Latin America as well as from positions held in Zurich, Bermuda, Chicago, Dallas and North Carolina. According to Mr. Martin, "We have a strong domestic and international business model that allows XL underwriting teams to offer our clients large blocks of Property capacity as well as provide value added services via XL's global platform. Additionally, our risk engineers are dedicated to not only helping us in the underwriting process but helping our clients find effective ways to identify potential risks and the best ways to prevent and reduce the probability of future losses. Whether it is helping clients prepare for hurricane season or an expansion of their facilities, XL Insurance invests the time and the underwriting and engineering talent necessary to help our clients actively manage property risks." About XL Insurance "XL Insurance" -- http://www.xlinsurance.com-- is the global brand used by member insurers of the XL Capital Ltd (NYSE: XL) group of companies. 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 =========== BLOCKBUSTER INC: Bank Loan Sells at 41% Discount ------------------------------------------------ Participations in a syndicated loan under which BlockBuster is a borrower traded in the secondary market at 58.80 cents-on-the- dollar during the week ended January 2, 2009, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.30 percentage points from the previous week, the Journal relates. BlockBuster pays interest at 375 points above LIBOR. The bank loan matures on August 20, 2011. The bank loan carries Moody's B1 rating and Standard & Poor's B rating. Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/-- is a provider of in-home movie and game entertainment, with over 7,800 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, and Australia. * * * In August 2008, Moody's Investors Service downgraded Blockbuster Inc.'s probability of default rating to Caa1 from B3. The company's Caa1 corporate family rating, Caa2 senior subordinated note rating, and SGL-4 speculative grade liquidity rating were affirmed. At the same time, Moody's raised the company's secured bank facilities to B1 from B3. Moody's said that the outlook remains negative. In December 2007, Fitch Ratings affirmed Blockbuster Inc.'s long- term Issuer Default Rating at 'CCC' and the senior subordinated notes at 'CC/RR6'. Fitch said that the rating outlook is stable. TELE NORTE: Shares Hit One-Month Low on Goldman Sachs Downgrade --------------------------------------------------------------- Tele Norte Leste Participacoes S.A.'s shares dropped 5.8% to BRL30.50 in Sao Paulo trading in a month after Goldman Sachs Group Inc. cut the stock to "neutral" on concern its entry into Sao Paulo may hurt earnings, Paulo Winterstein of Bloomberg News reports. According to the report, Analyst Stephen Graham, in a note to clients, said the company's entry into the Sao Paulo mobile-phone market last year was "aggressive" and will likely lead to losses before interest, taxes, depreciation and amortization for its Sao Paulo operations. The costs of integrating Brasil Telecom Participacoes SA likely pulled down margins on consolidated earnings before interest, taxes, depreciation and amortization to 33% in 2008 from 37% in 2007, Mr. Graham wrote. Mr. Graham, the report relates, wrote that new subscriptions have slowed after the first month of promotions and signal problems "have hurt word-of-mouth advertising." Mr. Graham, Bloomberg News notes, also wrote that the company's shares, which have outperformed the Bovespa index over the past year, are now fully pricing in the takeover of Brasil Telecom. Mr. Graham previously had a "buy" rating on the shares, the report recalls. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes S.A. -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * In April 2007, Standard & Poor's Ratings Services placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. * BRAZIL: Nov. Industrial Output Drops Lowest in 7 Years -------------------------------------------------------- Brazil's industrial output dropped 6.2% in November from the year- ago month, the biggest drop since December 2001, Bloomberg News reports, citing the country's national statistic agency. The drop, the report relates, is fueling expectations that the central bank will cut interest rates more than economists had expected this month. The decline was more than the median forecast of a 4.3% decline in a Bloomberg survey of 20 economists. Production fell 5.2% from October, its biggest monthly decline since May 1995, the report says. "The reading surprised even the most pessimistic analysts," the report quoted Alexandre Lintz, chief strategist in Brazil with BNP Paribas, as saying. "This reinforces the call that the central bank will start cutting rates this month by more than 25 basis points," Mr. Lintz said. Bloomberg News says Brazil this year will expand at its slowest pace since 2003. Gross domestic product this year may expand at less than half the pace forecast by the central bank for 2008, as the global credit crunch saps demand for products from cars to computers, according to the median forecast in a central bank survey of about 100 economists, the report notes. Bloomberg News recalls November output was dragged lower by a 30% annual decline in computer manufacturing, followed by an 18.3% drop in automobile production. In total, 22 of 27 industries and 64% of 755 products experienced declines, while production of capital goods expanded by 3.6%, the same report relates. Meanwhile, Bloomberg News notes Brazil's automobile industry has trimmed 500 jobs since the crisis began and carmakers such as Fiat Spa and General Motors Corp gave thousands of workers early vacations last month. To fill the gap left by scarce credit, the federal and state governments have pledged BRL8 billion (US$3.62 billion) to the financial arms of carmakers who saw sales plunge 25% in November, the biggest drop in five years, the report says. Bloomberg News adds the yield on Brazil's interest rate future contracts fell across the board as traders increased bets the central bank will start cutting rates in January. 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 ========================== ACORN ALTERNATIVE: Placed Under Voluntary Liquidation ----------------------------------------------------- On November 26, 2008, the sole shareholder of Acorn Alternative Strategies (Plus) Limited resolved to voluntarily liquidate the company's business. Only creditors can file their proofs of debt today, by Jan. 8, 2009, will be included in the company's dividend distribution. The company's liquidators are: Linburgh Martin John Sutlic P.O. Box 1034, Grand Cayman KY1-1102 Telephone:(345) 949 8455 Facsimile:(345) 949 8499 AIREXEC SERVICES: Enters Liquidation Proceedings ------------------------------------------------ On November 14, 2008, the shareholder of Airexec Services (Cayman) Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman KY1-1107 Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 BLUEFOX HOLDINGS: Placed Under Voluntary Liquidation ---------------------------------------------------- The sole shareholder of Bluefox Holdings SPC. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 29, 2008, will be included in the company's dividend distribution. The company's liquidator is: Marc Brune c/o Ogier Fiduciary Services (Cayman) Limited Queensgate House, South Church Street PO Box 1234, George Town Grand Cayman KY1-1108 COLUMBUS INC: Enters Liquidation Proceedings -------------------------------------------- On October 11, 2008, the shareholder of Columbus Inc resolved to voluntarily liquidate the company's business. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman KY1-1107 Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 CRESCENT POINT: Placed Under Voluntary Liquidation -------------------------------------------------- On October 2, 2008, the sole shareholder of Crescent Point Mena Ltd. resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt today, Jan. 8, 2009, will be included in the company's dividend distribution. The company's liquidators are: Linburgh Martin John Sutlic c/o Neil Gray Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, Grand Cayman Telephone:(345) 949 8455 Facsimile:(345) 949 8499 JRG INVESTMENTS: Enters Liquidation Proceedings ----------------------------------------------- At an extraordinary general meeting held on November 27, 2008, the shareholder of JRG Investments Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694GT, Grand Cayman Cayman Islands Telephone:949 8666 Facsimile:949 0626 LATROBE FUNDING: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary general meeting held on November 27, 2008, the shareholders of Latrobe Funding Limited resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt by Jan. 9, 2009, will be included in the company's dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104 Cayman Islands MUTUAL FUND: Placed Under Voluntary Liquidation ----------------------------------------------- On November 27, 2008, the shareholder of Mutual Fund Basket Reference Fund (13-A) Limited resolved to voluntarily liquidate the company's business. Only creditors can file their proofs of debt today, by Jan. 8, 2009, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106SMB, Grand Cayman MUTUAL FUND: Placed Under Voluntary Liquidation ----------------------------------------------- On November 27, 2008, the shareholder of Mutual Fund Basket Master Fund (12) resolved to voluntarily liquidate the company's business. Only creditors can file their proofs of debt today, by Jan. 8, 2009, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106SMB, Grand Cayman MUTUAL FUND: Placed Under Voluntary Liquidation ----------------------------------------------- On November 27, 2008, the shareholder of Mutual Fund Basket Reference Fund (10-A) Limited resolved to voluntarily liquidate the company's business. Only creditors can file their proofs of debt today, by Jan. 8, 2009, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106SMB, Grand Cayman MUTUAL FUND: Placed Under Voluntary Liquidation ----------------------------------------------- On November 27, 2008, the shareholder of Mutual Fund Basket Reference Fund (10-B) Limited resolved to voluntarily liquidate the company's business. Only creditors can file their proofs of debt today, by Jan. 8, 2009, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106SMB, Grand Cayman OTKRITIE RUSSIAN: Placed Under Voluntary Liquidation ---------------------------------------------------- On December 8, 2008, the sole shareholder of Otkritie Russian Electricity Sector Fund resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 7, 2009, will be included in the company's dividend distribution. 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 PGS FOCUS-PAULSON: Enters Liquidation Proceedings ------------------------------------------------- On November 27, 2008, the shareholder of PGS Focus-Paulson Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman KY1-1107 Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 PTMM CAYMAN I: Placed Under Voluntary Liquidation ------------------------------------------------- On November 25, 2008, the sole shareholder of PTMM Cayman I resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 7, 2009, will be included in the company's dividend distribution. 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 RALEIGH WASTE: Placed Under Voluntary Liquidation ------------------------------------------------- At an extraordinary general meeting held on November 24, 2008, the shareholders of Raleigh Waste Management Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 29, 2008, will be included in the company's dividend distribution. The company's liquidator is: Robert Allan c/o Sydney J. Coleman P.O. Box 1111, Grand Cayman Cayman Islands Telephone:345 949 5122 Facsimile:345 949 7920 REEM INDIA: Placed Under Voluntary Liquidation ---------------------------------------------- On November 27, 2008, the sole shareholder of Reem India Realty Investment Fund resolved to voluntarily liquidate the company's business. Only creditors can file their proofs of debt today, by Jan. 8, 2009, will be included in the company's dividend distribution. The company's liquidator is: John Sutlic c/o Kim Charaman Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman, KY1-1102 Telephone:(345) 949 8455 Facsimile:(345) 949 8499 SEBAGO PARTNERS: Placed Under Voluntary Liquidation --------------------------------------------------- On November 25, 2008, the sole shareholder of Sebago Partners Offshore, Ltd. resolved to voluntarily liquidate the company's business. Only creditors can file their proofs of debt by Jan. 9, 2009, will be included in the company's dividend distribution. The company's liquidator is: Richard L. Finlay c/o Noel Webb P.O. Box 2681, Grand Cayman KY1-1111 Telephone:(345) 945 3901 Facsimile:(345) 945 3902 TABWT CAPITAL: Commences Liquidation Proceedings ------------------------------------------------ At an extraordinary general meeting held on November 27, 2008, the shareholders of Tabwt Capital Limited resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt by Jan. 9, 2009, will be included in the company's dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104 Cayman Islands TRANSPARENT VALUE: Placed Under Voluntary Liquidation ----------------------------------------------------- On November 26, 2008, the sole shareholder of Transparent Value Equity Fund, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 7, 2009, will be included in the company's dividend distribution. 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 TRANSPARENT VALUE: Placed Under Voluntary Liquidation ----------------------------------------------------- On November 26, 2008, the sole shareholder of Transparent Value Equity Master Fund, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 7, 2009, will be included in the company's dividend distribution. 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 O L O M B I A =============== GRAN TIERRA: Protests Cost Firm 80% in Lost Oil Output ------------------------------------------------------ Canadian company Gran Tierra Energy Inc lost as much as 80% of its production since late November as protests over pyramid schemes shut down pipeline access in Colombia, Steven Bodzin of Bloomberg News reports. Company CEO Dana Coffield told Bloomberg News in a telephone interview that Gran Tierra plans to restart production now that the general strike ended. "We haven't restarted operations yet but are in the process of starting to do so," Mr. Coffield said. According to Bloomberg News, drilling at Gran Tierra's Costayaco field was also delayed by the strike. Gran Tierra produced 4,200 barrels a day of oil and natural gas liquids in the third quarter, the report says. About Gran Tierra Gran Tierra Energy Inc. -- http://www.grantierra.com-- is an independent energy company engaged in oil and gas exploration, development and production. The Company owns oil and gas properties in Colombia, Argentina and Peru. During the year ended December 31, 2007, the Company held interests in producing and properties in Colombia, Argentina and Peru. During 2007, the Company drilled two discovery wells in the Putumayo Basin, the Juanambu-1 well in the Guayuyaco Block and the Costayaco-1 well in the Chaza Block. The Company also acquired 70 square kilometers of three dimensional seismic on the Chaza block, and commenced drilling the Costayaco-2 well, which it completed drilling in January 2008. On November 14, 2008, Gran Tierra Energy Inc. and Solana Resources Limited announced that they have completed the business combination of Gran Tierra and Solana, persuant to which Gran Tierra became an intermediate-sized producer with production in excess of 11,600 barrels of oil equivalent per day (boe/d). =================================== D O M I N I C A N R E P U B L I C =================================== CAP CANA: Defaults on US$250 Mil. Sr. Secured Notes, Seeks Waiver ----------------------------------------------------------------- Cap Cana S.A. is launching a new consent solicitation (the "Consent Solicitation") with respect to its US$250 million outstanding principal amount of 9.625% Senior Secured Notes due 2013 (the "Notes"), the company said in a statement. The company said it is seeking to obtain a waiver on the Notes due to a technical default that resulted from the company's not depositing in the Debt Service Reserve Account, by January 2, 2009, funds equal to the interest payment on the Notes that comes due on May 3, 2009 (the "Reserve Requirement"), as required under the terms of the indenture governing the Notes (the "Indenture"), and an extension of the period for replenishing the Debt Service Reserve Account to February 24, 2009. Cap Cana is soliciting consents from the holders of record as of January 7, 2009, to approve an amendment to the Indenture. Cap Cana intends to launch an exchange offer in January 2009 to provide holders of Notes an option to exchange their Notes. The exchange offer represents part of the Company's comprehensive restructuring and debt reduction plan designed to improve the company's capital structure and financial position in response to the worldwide downturn in the credit and real estate markets. The company stated that it is encouraged by the ongoing discussions with holders of the Notes regarding an amicable and proactive restructuring process. The purpose of the Consent Solicitation, in addition to obtaining a waiver of the default that arose on January 2, 2009, is to extend the deadline for the deposit of the Reserve Requirement from January 2, 2009 to February 24, 2009, thus providing Cap Cana with sufficient time to complete the contemplated exchange offer. The proposed waiver and amendment to the Indenture requires the consent of holders of a majority in aggregate principal amount of the Notes outstanding. The Consent Solicitation will expire at 5:00 p.m., New York City time, on Thursday, January 15, 2009, unless the consent solicitation is extended by Cap Cana, in its sole discretion. The terms and conditions of the Consent Solicitation are described in the Consent Solicitation Statement, dated January 7, 2009 (the "Consent Solicitation Statement"), which is being sent to all holders of record as of January 7, 2009. Holders of the Notes may obtain copies of these documents from: Weston International Capital Markets LLC 15th Floor 150 East 58th Street New York, NY 10155 Tel. No.: (212) 888-4560 About Cap Cana Cap Cana S.A. is owner and developer of a resort complex on the Dominican easter tip. * * * As reported by the Troubled Company Reporter - Latin America on Nov. 4, 2008, Fitch Ratings downgraded the rating on Cap Cana, S.A.'s US$250 million senior secured notes from 'B' to 'CCC/RR4'. The rating is also placed on Rating Watch Negative. The action follows a significant deterioration in market conditions and an increase in refinance risk associated with a Cap Cana US$100 million bridge loan coming due on Nov. 19, 2008. The inability to access capital markets coupled with a significant decrease in property sales has created a lack of liquidity for the project, which is expected to severely constrain its ability to continue normal operations. * DOMINICAN REPUBLIC: Gov't to Pay US$358MM Debt to Power Firms --------------------------------------------------------------- The Dominican Republic government will pay its US$357.7 million corporate debt, excluding the bill for December that expires this month, to energy distributors and generators, The Dominican Today reports, citing Radhames Segura, head of the state-owned energy companies ("CDEEE"). Mr. Segura, the report relates, affirmed that the power sector moves toward a sustained recovery. According to the report, the CDEEE administrator said president Leonel Fernandez and electricity sector officials met in the early hours to discuss the prospects for the new year. According to Moody's Investors Service, the country continues to carry a B2 foreign currency rating with a stable outlook, and a B2 local currency rating with stable outlook. ============= J A M A I C A ============= AIR JAMAICA: Local Group Mulls Investing in Airline --------------------------------------------------- A local group in Jamaica is reportedly considering to become a major player in troubled airline Air Jamaica's future operations, Jamaica Gleaner reports. According to the report, vice president of National Workers Union ("NWU"), Granville Valentine, said members of the group have so far approached the union for consultations on the matter. The government, the report notes, said it's now in the final phase of the divestment process for the airline. As reported in the Troubled Company Reporter - Latin America on January 7, 2008, Jamaica News said NWU, one of the union representing the Air Jamaica workers, is suggesting that the Jamaican government should seriously consider delaying the stake sale of Air Jamaica. The union said hope is fading that the March 31 deadline for the divestment will be met, the same report related. According to a TCRLA report citing Radio Jamaica News, Air Jamaica still has no clear buyer as the three months divestment deadline expiration approaches. According to the report, the deepening financial woes in the global economy could put a damper on efforts by the Bruce Golding administration to get the loss-making Air Carrier off its books. The TCRLA, citing Radio Jamaica News, related Air Jamaica President and Chief Executive Officer, Bruce Nobles, told RJR News that while discussions are underway with several interested parties, the impact of the economic crunch could make the sale a difficult one. However, he remains optimistic despite the daunting economic challenges, the same report said. According to a TCRLA report on November 20, Jamaican Information Service said 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. 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. NTCS: Must Pay US$17 Million Debt to Maintain Operations -------------------------------------------------------- Jamaica's transport ministry is insisting that the National Transport Cooperative Society ("NTCS") must pay its sub franchise fees owed to the ministry before its license will be renewed, Jamaica Gleaner reports. According to the report, NTCS is currently operating without a license after its operating license expired last December, which is yet to be renewed by the ministry. The NTCS, Jamaica Gleaner says, has since been seeking an extension for the payment but the transport ministry said the bus company owes at least US$17 million in fees, which have been outstanding since last year August. The ministry is insisting that the outstanding fees be paid before an extension is considered, the report relates. Reginald Allen, communications manager at the transport ministry, said the bus company has also failed to provide audited financial statements on its operations, which was a requirement for the extension of the license, the report notes. The ministry, the report adds, said if the issue is not resolved it might have to take legal action to recover the outstanding fees. About National Transport The National Transport Cooperative Society provides bus service in sections of the Kingston Metropolitan Transport Region. *********** 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 * * *