TCRLA_Public/090121.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      L A T I N  A M E R I C A

            Wednesday, January 21, 2009, Vol. 9, No. 14

                            Headlines

A R G E N T I N A

FIDEICOMISO FINANCIERO: Moody's Assigns 'B1' Currency Rating
TELECOM ARGENTINA: Shifts Focus to Broadband Market


B E R M U D A

WURSTON LIMITED: Creditors' Proofs of Debt Due on January 30
WURSTON LIMITED: Members' Final Meeting Set for February 18


B R A Z I L

BANCO CITIBANK: Moody's Affirms Currency Deposit Rating at 'Ba2'
BRASKEM SA: To Restart Ethylene Unit by Months End
MARGEN SA: Rio Verde Court Approves Bankruptcy Petition
* Moody's Reviews Ratings on Eight Consigned Loans for Likely Cuts


C A Y M A N  I S L A N D S

NEWSTAR ARCTURUS: Members Receive Wind-Up Report
NH CAPITAL: Members Receive Wind-Up Report
NIGHTINGALE LEASING: Members Hear Wind-Up Report
NO LOAN BUSINESS: Members Hear Wind-Up Report
NO LOAN CRYSTAL: Members Hear Wind-Up Report

NO LOAN PRIME: Members Hear Wind-Up Report
OIL INTERNATIONAL: Members Receive Wind-Up Report
OLYMPIA PLACE: Members Receive Wind-Up Report
PURE HOLDINGS: Members Receive Wind-Up Report
PURE JSPC: Members Receive Wind-Up Report

QVP CDO: Members Receive Wind-Up Report
SIS CAYMAN: Members Hear Wind-Up Report
SKYER II: Members to Hear Wind-Up Report on January 22
SOUND BEACH: Members Hear Wind-Up Report
SSG CLO: Members Hear Wind-Up Report

STACK 2007-3: Members Receive Wind-Up Report
STONY CREEK: Members Receive Wind-Up Report
SUMIFOREST LEASING: Members Receive Wind-Up Report
TREMONT HEDGE: Members Receive Wind-Up Report
UNWANTED II: Members Hear Wind-Up Report


C O L O M B I A

ECOPETROL: Shares Fall After Interbolsa Rating Cut, Oil Price Drop
ECOPETROL: Denies Reports on Peruvian E&P Acquisition
BANCOLOMBIA: Sees 50% Decline in Colombian Banks Loans Growth


D O M I N I C A N  R E P U B L I C

BANINTER: Gov't Seizes Assets for Auction Amid US$2.5BB Fraud Case


E C U A D O R

ECUADOR: S&P Downgrades Rating on US$650MM Bond Due 2015 to 'D'
PETROECUADOR: Cuts Price Differential on Oriente & Napo Crudes


M E X I C O

INDUSTRIAS UNIDAS: S&P Junks Corp. Credit Rating; Outlook Negative


V E N E Z U E L A

* VENEZUELA: Says US$70/Barrel of Oil Will Maintain Investments


X X X X X X X X

* U.N. Sees Increase in Unemployment Rates in the Caribbean


                         - - - - -


=================
A R G E N T I N A
=================

FIDEICOMISO FINANCIERO: Moody's Assigns 'B1' Currency Rating
------------------------------------------------------------
Moody's Latin America has assigned a national scale rating of
Aa3.ar and a global local currency rating of B1 to the debt
securities of Fideicomiso Financiero Agro Alianza I issued by
Banco de Valores - acting solely in its capacity as Issuer and
Trustee.

The rated securities are backed by a pool of bills of exchange
signed by agricultural producers in Argentina.  The bills of
exchange are guaranteed by Garantizar S.G.R., which is a financial
guarantor in Argentina.  Garantizar has a local currency national
scale rating of Aa3.ar and a global local currency rating of B1.

                            Structure

Banco de Valores S.A. (Issuer and Trustee) issued one class of
debt securities denominated in Argentine pesos.  The rated
securities will bear a 8% annual interest rate.

The rated securities will be repaid from cash flow arising from
the assets of the Trust, constituted by a pool of fixed rate bills
of exchange denominated in US dollars signed by agricultural
producers and guaranteed by Garantizar S.G.R.  The bills of
exchange will have the same interest rate as the rated securities.
The promise to investors is to receive the payment of interest and
principal by the legal final maturity of the transaction, which
will occur 240 days after the closing date of the transaction.

If, eight days before each payment date, the funds on deposit in
the trust account are not sufficient to make payments to
investors, the Trustee is obligated to request Garantizar to make
payment under the bills of exchange. Garantizar, in turn, will
have five days to make this payment into the trust account.  Under
the terms of the transaction documents, the trustee has up to two
days to distribute interest and principal payments to investors.
Interest on the securities will accrue up to the date on which the
funds are initially deposited by either Garantizar, the exporter,
or the individual producers into the Trust account.

                            Tax Regime

On August 1, 2008, the Argentine Government published the Decree
1207/08 which eliminated certain tax-income exemptions for
financial trusts in Argentina.  These exemptions were originally
established in 1999 to promote the use of securitization as a
financing vehicle in the local capital markets.

Moody's notes that assets and liabilities are matched in this
transaction; therefore, there is no positive taxable income.

                        Rating Methodology

The rating assigned to this transaction is primarily based on the
rating of the guarantor of the underlying assets, Garantizar
S.G.R.  Therefore, any future change in the rating of the
guarantor may lead to a change in the rating assigned to this
transaction.  The rating addresses the payment of interest and
principal on the legal final maturity date of the securities.

Garantizar guarantees irrevocably and unconditionally the payment
of all the bills of exchange if -for any reason- 8 days before the
final maturity there are no sufficient funds in the trust account
to make a full of principal and interest payment to investors.
The guarantee has no termination events or exceptions to payment.
Although the guarantee provided by Garantizar covers the
securitized assets and not the liabilities, the rating assigned to
the securities is equivalent to the rating of Garantizar because
there is a complete match between the amount, interest rate and
currency of the aggregated assets and the rated securities.  All
the underlying assets will accrue the same interest rate than the
liabilities.  Also, trust expenses are sized and funded at closing
from bond proceeds.

Despite the fact that the rated securities (and the bills of
exchange) are denominated in US dollars, they are payable in
Argentine pesos at the exchange rate published by Banco de la
Nación Argentina as of the day prior to the date that the funds
are initially deposited into the Trust account.  As a result, the
dollar is used as a currency of reference and not as a currency of
payment.  For that reason, the transaction is considered to be
denominated in local currency.

                          Rating Action
  -- US$ 2,325,000 in Fixed Rate Debt Securities of "Fideicomiso
     Financiero Agro Alianza I", rated Aa3.ar (Argentine National
     Scale) and B1 (Global Scale, Local Currency).


TELECOM ARGENTINA: Shifts Focus to Broadband Market
---------------------------------------------------
Telecom Argentina S.A., under its broadband label Arnet, has begun
selling PCs and laptops with its broadband services included, in a
bid to increase its broadband subscriptions, Telegeography News
reports.

According to the report, the company is slowly shifting its focus
away from the fixed line market to concentrate on broadband.

The report says based on TeleGeography's GlobalComms database,
Telecom Argentina's broadband subscriber base increased from
375,000 to 976,000 between September 2007 and September 2008 and
in the same month had a market share of 33.8%.

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.



=============
B E R M U D A
=============

WURSTON LIMITED: Creditors' Proofs of Debt Due on January 30
------------------------------------------------------------
The creditors of Wurston Limited are required to file their proofs
of debt by January 30, 2009, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Jan. 13, 2009.

The company's liquidator is:

          Robin J. Mayor
          Clarendon House, Church Street
          Hamilton
          Bermuda


WURSTON LIMITED: Members' Final Meeting Set for February 18
-----------------------------------------------------------
The members of Wurston Limited will meet on February 18, 2009, at
9:30 a.m., to receive the liquidator's report on the company's
wind-up proceedings and property disposal.

The company commenced liquidation proceedings on Jan. 13, 2009.

The company's liquidator is:

          Robin J. Mayor
          Clarendon House, Church Street
          Hamilton
          Bermuda



===========
B R A Z I L
===========

BANCO CITIBANK: Moody's Affirms Currency Deposit Rating at 'Ba2'
----------------------------------------------------------------
Moody's Investors Service placed Banco Citibank S.A.'s bank
financial strength rating of C- on review for possible downgrade
and lowered its baseline credit assessment to Baa2 from Baa1.  At
the same time, Moody's affirmed Citibank's foreign currency
deposit ratings of Ba2 and Not Prime and foreign currency senior
unsecured debt rating of Baa3, all with stable outlook.

The review follows the actions taken by Moody's on the ratings of
Citigroup Inc. and its lead bank Citibank N.A., on January 16,
2009.

Moody's noted that the rating review was prompted by the downgrade
of Citigroup's financial strength rating due to its weakened
financial condition.  The review of Banco Citibank will focus on
assessing the implications for the Brazilian's operations and
performance of the continued weakening of the parent company's
financial profile.  Banco Citibank maintains significant funding,
operational, and business relationship with the parent including
sharing the same brand, products, and customers.  Moody's will
also consider the potential impact of the parent's planned global
business line restructuring on the Brazilian franchise.

Moody's also said that the review of the C- bank financial
strength is indicative that the rating is less robust relative to
that of other C-rated banks, and has therefore lowered the
baseline credit assessment to Baa2.

Nevertheless, the rating agency recognizes that Citibank's long-
track record of operations in Brazil, well established image in
corporate banking, and services to high net worth individuals are
positive to the bank's financial strength.

Banco Citibank S.A. is headquartered in São Paulo, Brazil, and had
total assets of R$39.9 billion (US$20.8 billion) and equity of
R$4.2 billion (US$2.2 billion) in September 2008.

Moody's last rating action on Citibank was on August 23, 2007,
when Moody's upgraded the bank's long-term foreign currency
deposits, in connection with Moody's upgrade of Brazil's country
ratings.

These actions related to Banco Citibank have been taken:

  -- C- bank financial strength rating: on review for possible
     downgrade

These ratings of Banco Citibank have been affirmed:

  -- Ba2/ Not Prime foreign currency deposit rating, stable
     outlook

  -- Baa3 foreign currency senior debt rating, stable outlook


BRASKEM SA: To Restart Ethylene Unit by Months End
--------------------------------------------------
Braskem S.A. Braskem S.A. will begin the restart process of a
naphtha cracker at the Triunfo Complex in Rio Grande do Sul,
Brazil by the end of January.

In December 2008, the chemical company shut down two naphtha
cracker units, including the 720,000-metric-ton-per-year Cracker 1
at Triunfo because of a reduction in demand for ethylene products
domestically and internationally.

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
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.

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 a year earlier, affected by the devaluation of the
real in the period.


MARGEN SA: Rio Verde Court Approves Bankruptcy Petition
-------------------------------------------------------
Brazilian meatpacker Margen SA's request for bankruptcy protection
was approved by a Rio Verde court in Brazil, Carlos Caminada of
Bloomberg News reports, citing Valor Economico.

The report recounts the company filed for bankruptcy in October
with BRL331 million (US$141 million) of debt.

According to the report, company lawyer Murillo Lobo said the
court allowed Margen SA to restructure its debt.

The newspaper, the report notes, said creditors will vote on a
restructuring plan in July.

Bloomberg News adds that Valor newspaper said sales at Margen fell
40% last year from 2007 to BRL932 million.


* Moody's Reviews Ratings on Eight Consigned Loans for Likely Cuts
------------------------------------------------------------------
Moody's America Latina placed on review for possible downgrade the
ratings of eight consigned loan securitizations, including:

  - BMG Fundo de Investimento em Direitos Creditórios -- Créditos
    Consignados V

  - BMG Fundo de Investimento em Direitos Creditórios - Créditos
    Consignados VI

  - BMG Fundo de Investimento em Direitos Creditórios Consignados
    Públicos VII

  - Fundo Bonsucesso de Investimento em Direitos Creditórios -
    Empréstimos com Consignação em Folha, Series 2006-1

  - FIDC BCSUL Verax II, Series 2006-1 and 2007-1

  - Fundo de Investimento em Direitos Creditórios Intermedium
    Créditos Consignados, Series 2007-1 and 2008-1

This rating action reflects Moody's concerns with respect to the
deterioration of the business environment in which Brazilian small
and medium-size banks operate, challenging their business
sustainability.

In December 2008 the ratings of Banco BMG were downgraded to Ba2
from Ba1 (global long-term local currency deposit rating) and to
Aa3.br from Aa2.br (long-term national scale deposit rating), with
stable outlook; the ratings of Banco Cruzeiro do Sul were
downgraded to Ba2 from Ba1 (global long-term local currency
deposit rating) and to A1.br from Aa2.br (national scale deposit
rating), with negative outlook; and the ratings of Banco
Bonsucesso were downgraded to Ba3 from Ba2 (global long-term local
and foreign currency deposit ratings) and to A2.br from A1.br
(national scale deposit rating), with negative outlook.  The
ratings of Banco Bonsucesso were subsequently withdrawn for
business reasons.

The banks that originate the loans play an important role as
primary servicers of the securitized assets.  Since performance of
the securitized consigned loans could be affected by any
disruption in servicing, the higher likelihood of financial
distress of the primary servicer, in these cases, the originating
banks, could have a negative impact on servicing and could in turn
increase the probability of deterioration in performance.

Moody's review will focus on the risk of disruption in servicing
the securitized consigned loans and the sufficiency of cash
reserves and payment reserves available in the transactions to
mitigate this servicing risk.

                        Rating Methodology

The rating methodology used to rate consigned-loan backed
transactions is based on historical performance data, the deal's
structural features and qualitative assessments.  The performance
data includes, among others, historical information about the
origination of receivables, delinquencies, and prepayments.  The
qualitative assessment includes, among other factors, a review of
origination and credit approval processes and servicing.

Moody's estimates the expected loss of the securitized pool based
on the analysis of the originating bank's static pool data, which
is incorporated in a cash flow model to determine the expected
loss for the rated securities.  The cash flow model simulates a
wind-down scenario, which would occur under an early amortization.
Concentration risk is an essential factor in the analysis.
Moody's considers the risk that a jurisdiction fails to transfer
to the servicer the cash flow coming from collections on the loan
installments deducted from employee's paychecks.  This risk is
usually the result of short-to-medium term liquidity pressures
observed at the jurisdiction level and it is expected to be
mitigated by the fund's eligibility criteria.  In order to test
the transaction for concentration per jurisdiction, Moody's runs a
simulation considering the worst-possible portfolio composition,
given the concentration limits allowed in the transaction and the
expected losses assumed for each paying entity in the pool.  This
ensures that the expected loss on the pool, given the permitted
concentrations, is consistent with the expected loss from the
rated securities.

Moody's also analyzes structural features such as the triggers
present in the transaction and the availability of reserve
accounts.

The resulting expected losses for the securities deriving from the
cash flow model are ultimately mapped to a global rating.  Moody's
considers these results, together with the analysis of the
transaction's qualitative factors and structural features, to
arrive at a final rating in the global scale, which is further
mapped to an equivalent rating in the Brazilian national rating
scale.

                          Rating Action

The complete rating action is:

  - BMG Fundo de Investimento em Direitos Creditórios -- Créditos
    Consignados V: - Baa3 rating (Global Scale, Local Currency)
    and Aaa.br rating (Brazilian National Scale) placed on review
    for possible downgrade; the last rating action occurred on
    August 04, 2006, when the ratings were assigned

  - BMG Fundo de Investimento em Direitos Creditórios - Créditos
    Consignados VI: Baa3 rating (Global Scale, Local Currency) and
    Aaa.br (Brazilian National Scale) placed on review for
    possible downgrade; the last rating action occurred on
    December 20, 2007, when the ratings were assigned

  - BMG Fundo de Investimento em Direitos Creditórios Consignados
    Públicos VII: Baa3 rating (Global Scale, Local Currency) and
    Aaa.br (Brazilian National Scale) placed on review for
    possible downgrade; the last rating action occurred on May 08,
    2008, when the ratings were assigned

  - Fundo Bonsucesso de Investimento em Direitos Creditórios -
    Empréstimos com Consignaçao em Folha, Series 2006-1: Baa2
    rating (Global Scale, Local Currency) and Aaa.br (Brazilian
    National Scale) placed on review for possible downgrade; the
    last rating action occurred on August 24, 2006, when the
    ratings were assigned

  - FIDC BCSUL Verax II, Series 2006-1 and 2007-1: Baa2 rating
    (Global Scale, Local Currency) and Aaa.br (Brazilian National
    Scale) placed on review for possible downgrade; the last
    rating actions occurred on September 14, 2006 and March 09,
    2007, respectively, when the ratings were assigned

  - Fundo de Investimento em Direitos Creditórios Intermedium
    Créditos Consignados, Series 2007-1 and 2008-1: Baa3 rating
    (Global Scale, Local Currency) and Aaa.br (Brazilian National
    Scale) placed on review for possible downgrade; the last
    rating actions occurred on September 25, 2007 and August 21,
    2008, respectively, when the ratings were assigned



==========================
C A Y M A N  I S L A N D S
==========================

NEWSTAR ARCTURUS: Members Receive Wind-Up Report
------------------------------------------------
The members of Newstar Arcturus CLO I Ltd. met on January 8, 2009,
and received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Kareem Robinson
          Jan Neveril
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


NH CAPITAL: Members Receive Wind-Up Report
------------------------------------------
The members of NH Capital (Cayman) Limited met on January 8, 2009,
and received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Giles Kerley
          Phillip Hinds
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


NIGHTINGALE LEASING: Members Hear Wind-Up Report
------------------------------------------------
The members of Nightingale Leasing Limited met on January 8, 2009,
and received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Melanie Whittaker
          Carl Gosselin
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


NO LOAN BUSINESS: Members Hear Wind-Up Report
---------------------------------------------
The members of No Loan Business II Funding met on January 8, 2009,
and received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Martin Couch
          Emile Small
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


NO LOAN CRYSTAL: Members Hear Wind-Up Report
--------------------------------------------
The members of No Loan Crystal Funding met on January 8, 2009, and
received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Martin Couch
          Jan Neveril
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


NO LOAN PRIME: Members Hear Wind-Up Report
------------------------------------------
The members of No Loan Prime Funding met on January 8, 2009, and
received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Martin Couch
          Jan Neveril
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


OIL INTERNATIONAL: Members Receive Wind-Up Report
-------------------------------------------------
The members of Oil International Limited met on January 8, 2009,
and received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Jan Neveril
          Carl Gosselin
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


OLYMPIA PLACE: Members Receive Wind-Up Report
---------------------------------------------
The members of Olympia Place 2002-1 Limited met on January 8,
2009, and received the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

          Emile Small
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


PURE HOLDINGS: Members Receive Wind-Up Report
---------------------------------------------
The members of Pure Holdings met on January 8, 2009, and received
the liquidators' report on the company's wind-up proceedings and
property disposal.

The company's liquidators are:

          Bobby Toor
          Jan Neveril
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


PURE JSPC: Members Receive Wind-Up Report
-----------------------------------------
The members of Pure JSPC Holdings met on January 8, 2009, and
received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Bobby Toor
          Jan Neveril
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


QVP CDO: Members Receive Wind-Up Report
---------------------------------------
The members of QVP CDO Ltd. met on January 8, 2009, and received
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Onson Mukwedeya
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


SIS CAYMAN: Members Hear Wind-Up Report
---------------------------------------
The members of Sis Cayman Ltd. met on January 8, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Emile Small
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


SKYER II: Members to Hear Wind-Up Report on January 22
------------------------------------------------------
The members of Skyer II Limited will meet on January 22, 2009, to
hear the liquidators' report on the company's wind-up proceedings
and property disposal.

The company's liquidators are:

          Prashant Veturkar
          Jan Neveril
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


SOUND BEACH: Members Hear Wind-Up Report
---------------------------------------
The members of Sound Beach CLO 1 Ltd. met on January 8, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Bobby Toor
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


SSG CLO: Members Hear Wind-Up Report
------------------------------------
The members of SSG CLO I Ltd. met on January 8, 2009, and received
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidators are:

          Onson Mukwedeya
          Guy Major
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


STACK 2007-3: Members Receive Wind-Up Report
--------------------------------------------
The members of Stack 2007-3 Ltd. met on January 8, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Emile Small
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


STONY CREEK: Members Receive Wind-Up Report
-------------------------------------------
The members of Stony Creek CLO met on January 8, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Emile Small
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


SUMIFOREST LEASING: Members Receive Wind-Up Report
--------------------------------------------------
The members of Sumiforest Leasing Limited met on January 8, 2009,
and received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Emile Small
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


TREMONT HEDGE: Members Receive Wind-Up Report
---------------------------------------------
The members of Tremont Hedge Fund Limited met on January 8, 2009,
and received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Guy Major
          Giles Kerley
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands


UNWANTED II: Members Hear Wind-Up Report
----------------------------------------
The members of Unwanted II Ltd. met on January 8, 2009, and
received the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Kareem Robinson
          Prashant Veturkar
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands



===============
C O L O M B I A
===============

ECOPETROL: Shares Fall After Interbolsa Rating Cut, Oil Price Drop
------------------------------------------------------------------
Ecopetrol S.A.'s shares dropped 1.5% to 2,015 pesos on January 14,
the lowest in two weeks in Bogota trading, after brokerage
Interbolsa SA advised investors to sell and the price of oil slid
below US$36 a barrel, James Attwood of Bloomberg News reported.

According to the report, Ecopetrol was cut to "sell" from "hold"
on the prospect of further declines in oil prices.  The shares
probably will fall to 1,865 pesos this year, down from a previous
estimate of 2,130 pesos, analysts Juan Dauder and Natalia Agudelo
wrote in a note to clients, the report relates.

Bloomberg News notes the downgrade came after the U.S. Energy
Department reduced its forecast for crude prices this year by 15%
to US$43.25 a barrel as the economic slump in the U.S., Europe and
Japan cuts global fuel demand.

                         About Ecopetrol

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.


ECOPETROL: Denies Reports on Peruvian E&P Acquisition
-----------------------------------------------------
Ecopetrol S.A. denied reports that it has plans to buy Peruvian
E&P junior Petro-Tech, Energy Current News reports.

The report relates Ecopetrol said, "It is not true the operation
has closed."

"In line with the company's international plans, Ecopetrol is
analyzing investment opportunities in several countries, including
Peru," the company was quoted by the report as saying.

The report recounts, citing Peruvian newspaper La Republica,
Ecopetrol and Korea's state oil company KNOC were interested in
forming a joint venture to buy Petro-Tech worth from US$1.5
billion to US$2.5 billion

                         About Ecopetrol

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.


BANCOLOMBIA: Sees 50% Decline in Colombian Banks Loans Growth
-------------------------------------------------------------
Colombian banks' loan growth this year will decrease by 50%
from last year as the steepest economic slowdown in seven years
squeezes consumers, Andrea Jaramillo of Bloomberg News reports,
citing Bancolombia SA Chief Executive Officer Jorge Londono.

CEO Londono told Bloomberg in an interview that Colombia's lending
will grow no more than 10% after a 20% rise last year, earnings at
Bancolombia will increase at a slower pace while provisions for
bad loans will climb.

"Maintaining the level of profit growth won't be possible, as it
won't be possible to maintain the level of growth in lending," the
news agency quoted CEO Londono as saying.  "Still, we can maintain
the bank's operation at profitable levels even with a rise in
defaults and the consequent increase in provisions."

CEO Londono, the report notes, said Colombia bad loans rose to
about 4% last year from 3% in 2007.

"We don't rule out an increase in defaults, but in no way will it
be catastrophic," Bloomberg News quoted CEO Londono as saying.

Meanwhile, Bloomberg News says according to CEO Londono,
Bancolombia will likely increase lending to companies as consumers
cut back on taking out loans.

"The risk situation and the economy's behavior will probably lead
us to have more appetite for growth and find higher quality demand
in the business sector," the report quoted CEO Londono as saying.
Bancolombia doesn't plan to buy units of banks that are forced to
sell amid the current market turmoil, he added.

                      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 Stock 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.



==================================
D O M I N I C A N  R E P U B L I C
==================================

BANINTER: Gov't Seizes Assets for Auction Amid US$2.5BB Fraud Case
------------------------------------------------------------------
Dominican Republic-based bank Baninter's properties were taken by
the Seized Assets Safeguard Office and handed to the Central
Bank's Liquidation Commission for auctioning, The Dominican Today
reports.

The report relates the seizing of assets is in compliance with the
Court of Appeals Chamber Penal sentence, ratified by the Supreme
Court last year.

As reported in the Troubled Company Reporter - Latin America on
Nov 11, 2003, Business News Americas, citing local newspaper
Listin Digital, said Baninter was intervened by the Dominican
government after it was found to have engaged in massive
fraudulent operations that drained it of about US$657 million.
The country's central bank and the private banking sector
allocated 50 billion pesos to Baninter account holders, the report
added.

According to Dominican Today, the bank's seized goods were:

  -- the company's MEDCOM, S.A., which include:

     * RNN (Channel 27),
     * Telecentro (Channel 13),
     * Ringo Records,
     * RCC Records,
     * Belleza Dominicana,

  -- three aircraft,
  -- radio stations across the country, and
  -- two properties of former Baninter president Ramon Baez
     Figueroa located in Casa de Campo's Marina.

Commission member Luis Pina, the Dominican newspaper notes, said
the inventories will now be verified and the properties appraised,
to put them on auction.

The Commission, according to the report, said it will continue
looking for other Baninter assets which aren't in the sentence to
confiscate and auction them, but affirmed that employees of those
companies will continue to work normally, changing only the
administration.



=============
E C U A D O R
=============

ECUADOR: S&P Downgrades Rating on US$650MM Bond Due 2015 to 'D'
---------------------------------------------------------------
On Jan. 16, 2009, Standard & Poor's Ratings Services revised its
long-term rating on the Republic of Ecuador's US$650 million
global bond due 2015 to 'D' from 'C'.  At the same time, S&P
removed the rating from CreditWatch, where it had been placed with
negative implications on Nov. 14, 2008.  The 'D' rating reflects
the trustee's inability to disburse to bondholders the scheduled
US$30.5 million coupon due on the bond at the end of the 30-day
grace period, which was Jan. 15, 2009.  In a notice to bondholders
on Jan. 15, the trustee wrote that to date, Ecuador had not
notified the successor trustee of revised record and payment
dates.  This disallowed the payment despite Ecuador's deposit of
sufficient funds.  When the trustee receives notification, it will
take an additional 25 days to disburse the funds.

In addition, S&P revised its recovery rating on Ecuador's global
bond due 2012 and its global bond due 2030 to '5', indicating
S&P's expectation for modest (10% to 30%) recovery, from '6'.  The
revision reflects the fact that the government has signaled its
intention to pursue a restructuring with bondholders on these
bonds instead of outright repudiation.

The government went into selective default after it failed to make
the Dec. 15, 2008, interest payment on its global bond due 2012.
The rating on the outstanding US$2.7 billion global bond due 2030
remains unchanged at 'C'.  S&P does not expect the government to
make the next coupon payment of US$135 million on Feb. 15, 2009,
at which time S&P would revise the rating to 'D'.  Ecuador's
transfer and convertibility assessment remains unchanged at
'CCC-'.

                              Outlook

The outlook for Ecuador's economic and fiscal prospects has
deteriorated markedly in the past few months as oil prices have
plummeted and remittances have declined.  S&P now expects economic
growth to fall by nearly 1% in 2009.  Furthermore, its fiscal
deficit will increase, and Ecuador will finance the deficit
largely by the use of its reserves and the local social security
fund.  Additionally, legal action could lead to the government
missing a payment if bondholders of defaulted debt try to attach
payments on the 2015 bond, given the fact that the bond is pari
passu with the rest of Ecuador's global bonds.  The prospect of
legal action and the deterioration of the economy signal that
even though Ecuador seems willing to make payments on the 2015
bond, S&P has doubts about the country's ability to pay.  For this
reason, the recovery rating remains at '5'.

The outlook for Ecuador's economic and fiscal prospects has
deteriorated markedly in the past few months as oil prices have
plummeted and remittances have declined. S&P now expects economic
growth to fall by nearly 1% in 2009.  Furthermore, its fiscal
deficit will increase, and Ecuador will finance the deficit
largely by the use of its reserves and the local social security
fund.  Additionally, legal action could lead to the government
missing a payment if bondholders of defaulted debt try to attach
payments on the 2015 bond, given the fact that the bond is pari
passu with the rest of Ecuador's global bonds.  The prospect of
legal action and the deterioration of the economy signal that
even though Ecuador seems willing to make payments on the 2015
bond, S&P has doubts about the country's ability to pay.  For this
reason, the recovery rating remains at '5'.

                           Ratings List

                   Revised; CreditWatch Action

                                        To                 From
                                        --                 ----
Senior Unsecured
US$650 million global bond due 2015     D              C/Watch Neg

                             Revised

                                        To                 From
                                        --                 ----
Senior Unsecured
  US$1.25 bil 12% Callable bnds ser 144A due 11/15/2012
   Recovery Rating                      5                  6

  US$2.7 bil step up callable bnds due 08/15/2030
   Recovery Rating                      5                  6


PETROECUADOR: Cuts Price Differential on Oriente & Napo Crudes
--------------------------------------------------------------
Petroecuador has lowered its price differential with West Texas
Intermediate price ("WTI") to US$3.62 a barrel from Jan. 1,
increasing the price of its Oriente crude oil, Petroleumworld.com
reports.

Under the new price differential, the report relates, the Oriente
Crude is now calculated at West Texas Intermediate price minus
US$13.59 per barrel from WTI minus US$17.21 in December.

According to the report, the new price applies to all contracts,
except those for the Far East, where the price will be calculated
relative to Asia's benchmark Oman crude.

Petroecuador's Napo Crude, the report notes, has been lowered to
the forecasted price differential of US$3.15 a barrel.

Petroleumworld.com adds Petroecuador is offering Napo Crude WTI at
minus US$19.55 a barrel in January from WTI minus US$22.70 in
December.

                        About Petroecuador

Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government.  It produces crude
petroleum and natural gas.

                          *     *     *

In previous years, Petroecuador, according to published reports,
was faced with cash-problems.  The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors.  The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings.  In 2008, a new management team was
appointed to turn around the company's operations.



===========
M E X I C O
===========

INDUSTRIAS UNIDAS: S&P Junks Corp. Credit Rating; Outlook Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term local and
foreign currency corporate credit rating on Industrias Unidas S.A.
de C.V. (IUSA) to 'CCC+' from 'B-'.  The issuer's corporate credit
national scale rating was lowered to 'mxB+' from 'mxBB'.  The
outlook is negative.  The recovery rating of 4 is not affected.

The downgrade reflects the renewed weakness in IUSA's financial
performance during the third quarter of 2008 as a result of
declining sales volumes stemming from the accelerating downturn in
commercial construction activity in the U.S. and the company's
exposure to copper price volatility, which have severely hurt its
margins.  The rating action also reflects S&P's ongoing concerns
regarding IUSA's liquidity, particularly its ability to refinance
its U.S. subsidiaries' credit facilities -- due in March and May
of 2009 -- under the difficult credit market conditions.  Although
S&P believes that IUSA should be able to refinance these
facilities, S&P also believes that the likely terms and conditions
of these agreements could further constrain its financial
flexibility.

The ratings assigned to IUSA reflect the inherent cyclicality of
the construction industry, commodity price volatility, competitive
pressure on core products and markets, low or negative operating
margins, and high leverage relative to operating cash flow
generation.  These factors are partially offset by the company's
leading market positions in Mexico and the U.S., its diversified
product mix, and some geographic diversification in the
manufacturing and distribution of copper tubing, copper alloy
products, valves, controls, watt-hour meters, wire and cable, and
electrical devices.  The ratings also incorporate S&P's
expectation that IUSA will continue to follow a disciplined
commercial strategy and increase its offering of value-added
products.

IUSA's financial performance during the third quarter of 2008 was
affected by the persisting weakness in the U.S. residential
housing market, decreasing IUSA's volume by 16%.  IUSA has
responded by focusing on value-added products to gradually reduce
its exposure to the residential housing market in the U.S. and to
reduce margin volatility somewhat.  This strategy will be
supported by the Eagle Project, a new plant that will allow the
company to produce tubing for the heating, ventilation, air
conditioning, and refrigeration sector.  However, the plant is
still in the testing phase, with IUSA expecting it to be ready to
start producing in February 2009.  Furthermore, while this
strategy should reduce margin volatility somewhat in the medium-
to-long term, in the short term, lower capacity utilization,
particularly in the U.S., has hurt results.

Alongside the deterioration of IUSA's profitability, as evidenced
by the 2.9% EBITDA margin during the third quarter of 2008, its
key financial ratios have similarly been affected negatively.  For
the 12 months ended Sept. 30, 2008, IUSA recorded EBITDA interest
coverage and total debt-to-EBITDA of about 0.5x and 10.0x,
respectively.  As of September 2008, in S&P's calculations, IUSA's
debt totaled US$675 million, which includes about US$169.8 million
in a supplier credit facility that S&P considers to be a debt-like
obligation.

IUSA is one of Mexico's largest and most diversified industrial
companies, offering a large variety of products through integrated
manufacturing and distribution operations mainly in Mexico and the
U.S.  The company's operations focus on seven principal
businesses: copper tubing, wire and cable, copper alloys,
electrical products, watt-hour meters, valves and controls, and
diversified assets.



=================
V E N E Z U E L A
=================

* VENEZUELA: Says US$70/Barrel of Oil Will Maintain Investments
---------------------------------------------------------------
Venezuela needs oil prices to rise to about US$70 a barrel to
sustain investments in fields and avoid shortages, Bloomberg News
reports, citing Venezuelan Energy and Oil Minister Rafael Ramirez.

Minister Ramirez, in an interview, told Bloomberg that the country
is discussing prices with other members of the Organization of
Petroleum Exporting Countries.

"We've spoken of a price band of US$80 to US$100 a barrel," the
news agency quoted Minister Ramirez as saying.  "The priority is
to stabilize the market and avoid a cycle of disinvestment,"
particularly in projects such as deep water and the Canadian tar
sands, he said.

According to the report, Venezuela and other oil-exporting nations
are facing falling revenue after crude plummeted 73% in the past
six months.

Venezuela, the report relates, would be open to an additional OPEC
output reduction amid an "evident oversupply of oil" in the
market, Minister Ramirez said.

Bloomberg News recounts OPEC trimmed 2.46 million barrels a day
from its members' production quotas at a December 17 meeting.
Venezuela President Chavez had mentioned a possible further cut of
2 million barrels a day, the report notes.

As reported in the Troubled Company Reporter - Latin America on
January 9, 2009, the Ministry of the People's Power for Energy and
Petroleum of Venezuela executed a 189,000 barrels-per-day oil
production cut, following OPEC's 151st (Extraordinary) Conference.

The TCRLA related the production cut of 189,000 b/d, effective
from January 1, 2009, added to the reductions of 46,000 b/d and
129,000 b/d, implemented by PDVSA, according to the OPEC
decisions, determined during the meetings of September and October
of 2008, for a total general reduction of 364,000 b/d, that place
the current Venezuelan production on 3 millions 11 thousand
barrels per day of oil.

According to Moody's Rating Agency, Venezuela continues to carry
a B2 foreign currency rating and a B1 local currency rating with
stable outlook.



===============
X X X X X X X X
===============

* U.N. Sees Increase in Unemployment Rates in the Caribbean
-----------------------------------------------------------
The Caribbean economy is set to see a rise in unemployment rates
this year, CaribWorldNews reports, citing a United Nations report
called World Economic Situation and Prospects 2009.

According to CaribWorldNews, the U.N. report claimed the region
could see a rise in unemployment rates from 7.5% in 2008 to a
range between 7.8% and 8.1% as a result of the international
crisis.

CaribWorldNews relates that the U.N. report said: "Economic growth
in Latin America and the Caribbean is expected to slow markedly in
2009.   The key drag is the fall in commodity prices. In addition,
domestic credit is expected to tighten in many economies.
Inflationary pressures, which surged during 2008 owing to the
increasing costs of energy, transportation and food, should
decelerate in 2009," the document added.

"The rise in unemployment is set to reverse the positive trend of
recent years, when employment quality had improved and the
unemployment rate had fallen to 7.5%," The Jamaican Observer
quoted the UN as saying in its report.

The economic growth in the Caribbean and Latin America is expected
to slow markedly in 2009, the U.N. report added, The Observer
relates.


                            ***********

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 * * *