TCRLA_Public/090128.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 28, 2009, Vol. 9, No. 19

                            Headlines

A R G E N T I N A

BANCO REGIONAL: Moody's Puts 'D-' First-Time Bank Strength Rating
FIDEICOMISO FINANCIERO: Moody's Assigns 'Ba1' Global Note Rating
INMUNOLAB SA: Trustee Verifying Proofs of Claim Until May 21
SEGONA SA: Trustee Verifying Proofs of Claim Until November 4


B E R M U D A

ACA ASSURANCE: Creditors' Proofs of Debt Due on February 6
ACA ASSURANCE: Members' Final Meeting Set for February 25
METRORED GROUP: Creditors' Proofs of Debt Due on February 6
METRORED GROUP: Members' Final Meeting Set for February 24
PREMIER LIFE: Creditors' Proofs of Debt Due on February 6

PREMIER LIFE: Members' Final Meeting Set for February 25


B R A Z I L

AMERICAN INT'L: Seeks Bids for Fund Management Business
BANCO DO BRASIL: Shares Hit One-Week High After Posting 4Q Gain
BANCO DO BRASIL: To Release 2008 Earnings on February 3
GLOBAL CROSSING: Expands Fiber Optic Network in Brazil
VITRO SAB: Moody's Downgrades Senior Unsecured Rating to 'Ca'

VOTORANTIM PARTICIPACOES: S&P Changes Outlook to Negative
VOTORANTIM CELULOSE: Aracruz Deal Cues S&P's Negative CreditWatch
* BRAZIL: Local Companies Default Rate Up 36% in December


C A Y M A N  I S L A N D S

AXA NEW HORIZONS: Placed Under Voluntary Liquidation
CASTLEROCK AIRCRAFT: Placed Under Voluntary Liquidation
CSERE ATRIUM: Placed Under Voluntary Liquidation
CSERE DUMFRIES: Placed Under Voluntary Liquidation
CSERE MILTON: Placed Under Voluntary Liquidation

EIRE HALIFAX: Placed Under Voluntary Liquidation
EIRE MANCHESTER: Placed Under Voluntary Liquidation
GC GLOBAL: Placed Under Voluntary Liquidation
INFINITY ABSOLUTE: Placed Under Voluntary Liquidation
NEW HARVEST: Placed Under Voluntary Liquidation

NORMA CDO: Placed Under Voluntary Liquidation
OFFALY LIMITED: Placed Under Voluntary Liquidation
ORIES HOLDING: Placed Under Voluntary Liquidation
PANGAEA CLO 2007-2: Placed Under Voluntary Liquidation
PORTMARNOCK LIMITED: Placed Under Voluntary Liquidation

ROSCOMMON LIMITED: Placed Under Voluntary Liquidation
SAL 95: Placed Under Voluntary Liquidation
TITANIUM FUND: Placed Under Voluntary Liquidation
VINTRY INVESTMENTS: Placed Under Voluntary Liquidation
YA 95 A: Placed Under Voluntary Liquidation


C O L O M B I A

BANCOLOMBIA: Board OKs Issuance of Subordinated Ordinary Notes
ECOPETROL: Mulls Petro-Tech Stake Acquisition


E C U A D O R

* ECUADOR: Sees Oil Prices at US$55 Per Barrel This Year


M E X I C O

COMERCI: May Sell Land and Credit Unit to Repay Debts
LIBRAMIENTO DE MATEHUALA: Moody's Confirms National Scale Rating
* MEXICO: Peso & Bond Drop on Concern U.S. Demand to Decline


T U R K S  &  C A I C O S  I S L A N D S

TCI NEW MEDIA: To Close Down by Months End


V E N E Z U E L A

* VENEZUELA: OPEC is Ready for More Cuts, President Chavez Says


X X X X X X X

* CARIBBEAN ISLANDS: Local Resort Adds to Island Job Cuts


                         - - - - -


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

BANCO REGIONAL: Moody's Puts 'D-' First-Time Bank Strength Rating
-----------------------------------------------------------------
Moody's Investors Service assigned a first-time bank financial
strength rating of D- (minus) to Banco Regional de Cuyo S.A.  At
the same time, Moody's gave the bank long- and short-term global
local-currency deposit ratings of Ba2 and Not Prime, as well as
long- and short-term foreign-currency deposit ratings of Caa1 and
Not Prime. Moody's also assigned the bank Aa2.ar local-currency
and Ba1.ar foreign-currency deposit ratings on the Argentine
national scale.

The outlooks on all ratings are stable.

At the same time, Moody's affirmed Banco Supervielle S.A.'s BFSR
of D- (minus) and Ba2/Not Prime and Caa1/Not Prime ratings for
global local and foreign currency deposits.  Moreover, the
national scale of Aa2.ar and Ba1.ar for local and foreign currency
deposits were also affirmed.

Moody's said the D- BFSR reflects Banco Regional de Cuyo's
alignment with Banco Supervielle's (its shareholder´s) ratings.
Regional de Cuyo was acquired by Supervielle in September 2008 and
it should be absorbed by the parent bank by mid 2009 though
retaining its well recognized brand.  Although small in size,
Regional de Cuyo has adequate financial metrics and a franchise
that is focused on lending to small and medium companies, and
individuals, mainly in the province of Mendoza, where it has
reasonably good branch coverage.  Regional de Cuyo's franchise is
seen as complementary to Supervielle's, which is active in the
neighboring province of San Luis.  The ratings therefore, reflect
Moody's views that business and operational synergies that can be
achieved are positive to the acquisition, as they may translate
into earnings and funding diversification, as well as in broader
market coverage.

The ratings also incorporate the agency's assessment of Regional
de Cuyo's risk management practices in light of its limited
corporate governance, which derives from the bank's family
ownership and lack of board independence.

Nevetheless, the ratings also capture the challenges arising from
the merger process itself and the operating environment.  Moody's
also pointed out that Regional de Cuyo faces harsh competition
from peers.

Moody's Ba2 global local-currency deposit rating reflects Banco
Regional de Cuyo's Baseline Credit Assessment of Ba3, as well as
Moody's assessment of a high probability that systemic support
would be extended to the bank in case of stress because of its
relatively important market share in terms of deposits in a
consolidated basis.  Such an assessment results in a one-notch
lift of the local currency rating to Ba2.

Banco Regional de Cuyo S.A. is headquartered in Mendoza,
Argentina, and it had assets of Ar$ 587.7 million, deposits of Ar$
473.1 million, and equity of Ar$ 58.7 million, as of September
2008.

These ratings were assigned to Banco Regional de Cuyo S.A.

  -- Bank Financial Strength Rating: D-, with stable outlook.

  -- Long- and short-term global local-currency deposit ratings:
     Ba2 and Not Prime, with stable outlook.

  -- Long- and short-term foreign-currency deposit ratings: Caa1
     and Not Prime, with stable outlook.

  -- Long-Term National Scale Local-Currency Deposit Rating:
     Aa2.ar, with stable outlook.

  -- Long -Term National Scale Foreign-Currency Deposit Rating:
     Ba1.ar, with stable outlook.

These Banco Supervielle S.A.'s ratings were affirmed:

  -- Bank Financial Strength Rating: D-, with stable outlook.

  -- Long- and short-term global local-currency deposit ratings:
     Ba2 and Not Prime, with stable outlook.

  -- Long- and short-term foreign-currency deposit ratings: Caa1
     and Not Prime, with stable outlook.

  -- Long-Term National Scale Local-Currency Deposit Rating:
     Aa2.ar, with stable outlook.

  -- Long -Term National Scale Foreign-Currency Deposit Rating:
     Ba1.ar, with stable outlook.


FIDEICOMISO FINANCIERO: Moody's Assigns 'Ba1' Global Note Rating
----------------------------------------------------------------
Moody's Latin America has assigned a rating of Aaa.ar (Argentine
National Scale) and of Ba1 (Global Scale, Local Currency) to the
Class A Fixed Rate and Floating Rate Debt Securities of
Fideicomiso Financiero Supervielle Créditos Banex XXVI issued by
Deutsche Bank S.A. - acting solely in its capacity as Issuer and
Trustee.  This issuance is not an obligation of Deutsche Bank S.A.
and therefore the rating assigned does not reflect the credit
quality of Deutsche Bank S.A.

Moody's also assigned ratings of Caa3.ar (Argentine National
Scale) and Caa3 (Global Scale, Local Currency) to the Class B
Fixed Rate Securities; and ratings of C.ar (Argentine National
Scale) and C (Global Scale, Local Currency) to the subordinated
Certificates.

The assigned ratings are based on these factors:

  - The credit quality of the securitized personal loans

  - The ability and willingness of ANSES to make monthly pensions

  - The ability of Banco Supervielle to act as the servicer of the
    pool

  - The ability of Deutsche Bank S.A. to act as trustee in this
    transaction

  - Initial credit enhancement provided through subordination

  - The availability of various reserve accounts, and

  - The legal structure of the transaction.

                       The Securitized Pool

The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 28,118 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banex
(now Banco Supervielle), in an aggregate amount of Ar$ 70,000,371.
As of September 26, 2008, the cut off rate of the pool, the
securitized loans exhibited delinquencies no higher than 30 days
past due.

These personal loans are granted to pensioners that receive their
monthly pensions from ANSES (Argentina's National Governmental
Agency of Social Security - Administración Nacional de la
Seguridad Social).  Banco Supervielle is the payment agent for
this government entity and deducts the monthly loan installment
directly from the borrower's paycheck.  The pool is also
constituted by loans granted to government employees of the
Province of San Luis.

                            Structure

Deutsche Bank S.A. (Issuer and Trustee) issued three classes of
Debt Securities (Class A Fixed Rate Securities, Floating Rate
Securities and Class B Fixed Rate Securities) and one class of
Certificates, all denominated in Argentine pesos.

The Class A Fixed Rate Debt Securities will bear a fixed interest
rate of 22%.  The Floating Rate Debt Securities will bear a BADLAR
interest rate plus 425 basis points.  The Floating Rate Debt
Securities' interest rate will never be higher than 29% or lower
than 16%.  The Class B Fixed Rate Securities will bear a fixed
interest rate of 21%.

Overall credit enhancement is comprised of subordination, various
reserve funds and excess spread.

                        Rating Methodology

Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of
Supervielle's portfolio.  In addition, Moody's considered factors
common to consumer loans securitizations such as delinquencies,
prepayments and losses; as well as specific factors related to the
Argentine market, such as the probability of an increase in losses
if there are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities.  Monte Carlo simulations were run, which
determines the expected loss for the rated securities.

In assigning the rating to this transaction, Moody's assumed a
triangular distribution for losses centered around the most likely
scenario of 10%.  Also, Moody's assumed a triangular distribution
for the prepayments centered around a most likely scenario of 12%.

Moody's also considered the risk that a disruption in the flow of
payments from ANSES or the Government of San Luis to pensioners
and employees respectively, could severely affect the performance
of the pool.  Moody's believes that the ratings assigned are
consistent with this risk.

Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction.

                           Rating Action

Originator: Banco Banex S.A. (now Banco Supervielle S.A.)

  -- Ar$ 30,100,000 in Class A Fixed Rate Debt Securities of
     "Fideicomiso Financiero Supervielle Créditos Banex XXVI",
     rated Aaa.ar (Argentine National Scale) and Ba1 (Global
     Scale, Local Currency)

  -- Ar$ 29,400,000 in Floating Rate Debt Securities of
     "Fideicomiso Financiero Supervielle Créditos Banex XXVI",
     rated Aaa.ar (Argentine National Scale) and Ba1 (Global
     Scale, Local Currency)

  -- Ar$ 7,000,000 in Class B Fixed Rate Debt Securities of
     "Fideicomiso Financiero Supervielle Créditos Banex XXVI",
     rated Caa3.ar (Argentine National Scale) and Caa3 (Global
     Scale, Local Currency)

  -- Ar$ 3,500,000 in Certificates of "Fideicomiso Financiero
     Supervielle Créditos Banex XXVI", rated C.ar (Argentine
     National Scale) and C (Global Scale, Local Currency)


INMUNOLAB SA: Trustee Verifying Proofs of Claim Until May 21
------------------------------------------------------------
The court-appointed trustee for Inmunolab S.A.'s reorganization
proceedings will be verifying creditors' proofs of claim until
May 21, 2009.

Creditors will vote to ratify the completed settlement plan
during the assembly on February 17, 2011.


SEGONA SA: Trustee Verifying Proofs of Claim Until November 4
-------------------------------------------------------------
The court-appointed trustee for Segona S.A.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
November 4, 2008.

The trustee will present the validated claims in court as
individual reports on December 17, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
March 6, 2009.



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

ACA ASSURANCE: Creditors' Proofs of Debt Due on February 6
----------------------------------------------------------
The creditors of ACA Assurance, Ltd. are required to file their
proofs of debt by February 6, 2009, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Jan. 22, 2009.

The company's liquidator is:

          Robin J. Mayor
          Clarendon House
          Church Street, Hamilton
          Bermuda


ACA ASSURANCE: Members' Final Meeting Set for February 25
---------------------------------------------------------
The members of ACA Assurance, Ltd. will hold their final general
meeting on February 25, 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 Jan. 22, 2009.

The company's liquidator is:

          Robin J. Mayor
          Clarendon House
          Church Street, Hamilton
          Bermuda


METRORED GROUP: Creditors' Proofs of Debt Due on February 6
-----------------------------------------------------------
The creditors of Metrored Group, Ltd. are required to file their
proofs of debt by February 6, 2009, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Jan. 23, 2009.

The company's liquidator is:

          Robin J. Mayor
          Clarendon House
          Church Street, Hamilton
          Bermuda


METRORED GROUP: Members' Final Meeting Set for February 24
----------------------------------------------------------
The members of Metrored Group, Ltd. will hold their final general
meeting on February 24, 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 Jan. 23, 2009.

The company's liquidator is:

          Robin J. Mayor
          Clarendon House
          Church Street, Hamilton
          Bermuda


PREMIER LIFE: Creditors' Proofs of Debt Due on February 6
---------------------------------------------------------
The creditors of Premier Life (Bermuda) Limited are required to
file their proofs of debt by February 6, 2009, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on Jan. 22, 2009.

The company's liquidator is:

          Ronald D. Hunter
          10689 North Pennsylvania
          Indianapolis, Indiana
          USA


PREMIER LIFE: Members' Final Meeting Set for February 25
--------------------------------------------------------
The members of Premier Life (Bermuda) Limited will hold their
final general meeting on February 25, 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 Jan. 22, 2009.

The company's liquidator is:

          Ronald D. Hunter
          10689 North Pennsylvania
          Indianapolis, Indiana
          USA



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

AMERICAN INT'L: Seeks Bids for Fund Management Business
-------------------------------------------------------
American International Group Inc plans to divest its Fund
Management Business, which operates 15 existing fund programs with
over US$12.4 billion in assets under management and US$5.2 billion
in equity capital commitments as of September 30, 2008.

In a statement Monday, AIG said the Fund Management Business is a
global asset advisor headquartered in New York with regional
operations in Europe, Japan, Latin America and Asia and includes
committed equity capital that has been funded or is to be funded
by AIG as a sponsor or co-investor.

Bank of America and Merrill Lynch, GRE's financial advisors, have
begun to solicit interest for the Fund Management Business.

Separately, Bloomberg News reports that according to Reuters, AIG
has received bids from investors including sovereign wealth funds
in Singapore, China and the Middle East for its aircraft leasing
unit, International Lease Finance Corp.

The report relates Reuters's sources said among the initial
bidders for the unit are Singapore's Temasek Holdings Pte, Dubai's
investment arm Istithmar World, the Kuwait Investment Authority
and China Investment Corp.

Private equity firms including Carlyle Group, TPG Capital LP and
Kohlberg Kravis Roberts & Co. are also bidding, the report says
citing Reuters.

While the timing of the auction for the unit, which could be worth
as much as US$8 billion, is unclear, the second round of bids
could come in the third week of February, Bloomberg News adds,
citing Reuters.

                            About AIG

Based in New York, American International Group, Inc. (AIG) is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions.  AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer.  In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world.  AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.

During the third quarter of 2008, requirements to post collateral
in connection with AIG Financial Products Corp.'s credit default
swap portfolio and other AIGFP transactions and to fund returns of
securities lending collateral placed stress on AIG's liquidity.
AIG's stock price declined from US$22.76 on Sept. 8, 2008, to
US$4.76 on Sept. 15, 2008.  On that date, AIG's long-term debt
ratings were downgraded by Standard & Poor's, a division of The
McGraw- Hill Companies, Inc., Moody's Investors Service and Fitch
Ratings, which triggered additional requirements for liquidity.
These and other events severely limited AIG's access to debt and
equity markets.

On Sept. 22, 2008, AIG entered into an US$85 billion revolving
credit agreement with the Federal Reserve Bank of New York and,
pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000
shares of Series C Perpetual, Convertible, Participating Preferred
Stock to a trust for the benefit of the United States Treasury.
At Sept. 30, 2008, amounts owed under the facility created
pursuant to the Fed Credit Agreement totaled US$63 billion,
including accrued fees and interest.

Since Sept. 30, AIG has borrowed additional amounts under the
Fed Facility and has announced plans to sell assets and businesses
to repay amounts owed in connection with the Fed Credit Agreement.
In addition, subsequent to Sept. 30, 2008, certain of AIG's
domestic life insurance subsidiaries entered into an agreement
with the NY Fed pursuant to which the NY Fed has borrowed, in
return for cash collateral, investment grade fixed maturity
securities from the insurance subsidiaries.

On Nov. 10, 2008, the U.S. Treasury agreed to purchase, through
its Troubled Asset Relief Program, US$40 billion of newly issued
AIG perpetual preferred shares and warrants to purchase a number
of shares of common stock of AIG equal to 2% of the issued and
outstanding shares as of the purchase date.  All of the proceeds
will be used to pay down a portion of the Federal Reserve Bank of
New York credit facility.  The perpetual preferred shares will
carry a 10% coupon with cumulative dividends.

AIG and the Fed also agreed to revise the existing FRBNY credit
facility.  The loan terms were extended from two to five years to
give AIG time to complete its planned asset sales in an orderly
manner.  The equity interest that taxpayers will hold in AIG,
coupled with the warrants, will total 79.9%.

At Sept. 30, 2008, AIG had US$1.022 trillion in total consolidated
assets and US$950.9 billion in total debts.  Shareholders' equity
was US$71.18 billion, including the addition of US$23 billion of
consideration received for preferred stock not yet issued.


BANCO DO BRASIL: Shares Hit One-Week High After Posting 4Q Gain
---------------------------------------------------------------
Banco do Brasil SA's shares climbed 6.1% to BRL14.11 on Jan. 26,
the highest closing price since Jan. 19, after saying it will
report an extraordinary gain in the fourth quarter, Telma Marotto
of Bloomberg News reports.

As reported in the Troubled Company Reporter-Latin America on
January 27, 2009, Bloomberg News said Banco do Brasil said it will
have a one-time gain of BRL2.52 billion (US$1 billion) in the
fourth quarter.

The report related CVM, Brazil securities regulator, said the bank
will post a BRL5.3 billion profit from its pension fund plans and
BRL2.8 billion in losses related to its health plans and taxes.

"The recent announcement allows a significant improvement in BB's
balance sheet indicators and should serve as a catalyst for the
stock," Bloomberg News quoted Jorg Friedemann, analyst with Bank
of America Merrill Lynch, as saying.

According to the report, the bank also said it will set aside an
additional BRL1.7 billion for bad loans because of a possible
increase in default rates.

Bloomberg News notes Mario Pierry, Deutsche Bank AG analyst,
maintained a "buy" rating for Banco do Brasil.

Saul Martinez, an analyst with JPMorgan Chase & Co, estimated the
gain will boost fourth-quarter profit by about BRL1.5 billion
after taxes, Bloomberg News adds.

                      About Banco do Brasil

Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                          *     *     *

As reported by the Troubled Company Reporter - Latin America on
Jan. 20, 2009, Fitch Ratings affirmed these ratings of Banco do
Brasil S.A.:

  -- Long-term foreign and local currency Issuer Default Rating at
     'BBB-'
  -- Short-term foreign and local currency IDR at 'F3'
  -- Support Rating at '2'
  -- Individual Rating at 'C/D'
  -- Support Rating Floor at 'BBB-'
  -- National Long-term rating at 'AA+(bra)'
  -- National Short-term rating at 'F1+(bra)'


BANCO DO BRASIL: To Release 2008 Earnings on February 3
-------------------------------------------------------
Banco do Brasil SA will release its 2008 Earnings Results through
a conference call webcast on Tuesday, February 3, 2009 at 8:30 AM
ET.

To participate, log-on to its website at
http://www.prnewswireweb.com.br/player/?id=347

or contact:

    Jean Philippe Leroy at 55-11-2178-6229; or
    Ivani Benazzi de Andrade at 55-11-2178-6218

Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                          *     *     *

As reported by the Troubled Company Reporter - Latin America on
Jan. 20, 2009, Fitch Ratings affirmed these ratings of Banco do
Brasil S.A.:

  -- Long-term foreign and local currency Issuer Default Rating at
     'BBB-'
  -- Short-term foreign and local currency IDR at 'F3'
  -- Support Rating at '2'
  -- Individual Rating at 'C/D'
  -- Support Rating Floor at 'BBB-'
  -- National Long-term rating at 'AA+(bra)'
  -- National Short-term rating at 'F1+(bra)'


GLOBAL CROSSING: Expands Fiber Optic Network in Brazil
------------------------------------------------------
Global Crossing has completed the construction of a new, 126 km
fiber optic network in the interior region of the state of Sao
Paulo, interconnecting the cities of Hortolandia and Sorocaba.

Previously, Global Crossing had a number of circuits in that
region, but depended on other providers to complete its back-up or
redundancy capability.  With the new seamless network, which has
18 pairs of fibers, Global Crossing is now able to better serve
its customers' needs, while increasing the security and
reliability of the services.

"This new ring shows Global Crossing's commitment to the Brazilian
market, as the company continues to strategically invest in
network infrastructure and top-notch technologies to constantly
improve the quality and the reach of the services that we provide
to our customers regionally and globally," said Marcos Malfatti,
senior sales vice president for Global Crossing Brazil.
"Additionally, we will be able to generate more business
opportunities and enable more routes now."

The new ring is part of Global Crossing's metropolitan networks in
Brazil. Currently, Global Crossing has 15 metropolitan networks
and 15 data centers in Latin America.  The company owns one of the
world's largest IP-based fiber optic networks, which reaches more
than 60 countries worldwide.

                       About Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- is a leading
global IP solutions provider with the world's first integrated
global IP-based network. The company offers a full range of secure
data, voice, and video products to approximately 40 percent of the
Fortune 500, as well as to 700 carriers, mobile operators and
ISPs. It delivers services to more than 690 cities in more than 60
countries and six continents around the globe.

In Latin America, Global Crossing´s business has operations in
Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru, Mexico,
Venezuela, the United States (Florida) and the Caribbean region.
In addition to its IP-based, fiber-optic network, Global
Crossing's regional infrastructure includes 15 metropolitan
networks and 15 world-class data centers located in the main
business centers of Latin America.

                          *     *     *

As reported by the Troubled Company Reporter-Latin America on
Jan. 23, 2009, Moody's Investors Service assigned a Caa1 corporate
family rating to Global Crossing Limited and a B2 rating to the
company's US$350 million senior secured term loan.  The
preferential access to realization proceeds provided by the
security package allows the term loan credit facility's rating to
be B2, two notches above the Caa1 CFR. GCL was also assigned a
speculative grade liquidity rating of SGL-3 (indicating adequate
liquidity).  The ratings outlook is stable.


VITRO SAB: Moody's Downgrades Senior Unsecured Rating to 'Ca'
-------------------------------------------------------------
Moody's Investors Service downgraded Vitro, S.A.B. de C.V.'s
senior unsecured debt and corporate family ratings to Ca from
Caa1.  This rating action concludes the rating review initiated on
October 30, 2008.  The ratings outlook is negative.

The downgrade reflects Moody's belief that Vitro's liquidity has
continued to weaken in the past several weeks as economic
conditions in the company's key markets have deteriorated further,
increasing the likelihood that it may not be able to meet its
upcoming near term financial obligations.  The latter include a
US$45 million coupon payment on February 1, 2009 under its 2012
and 2017 notes and an estimated US$20 million in long term debt
maturities during 1Q09.  The company also has a contractual
commitment to pay about US$29 million in remaining ten monthly
installments during 2009, related to the put option exercised by
its Spanish joint venture partner in 2008.

As of September 30, 2008, Vitro had US$72 million in unrestricted
cash reserves, covering short term debt 0.46 times.  For the 12
months ended September 30, 2008, estimated free cash flow was a
negative US$135 million after dividends, requiring continued
rollover of an estimated US$70 million in revolving short term
bank debt mainly located at operating subsidiaries.  The receipt
of the outstanding US$20 million payment related to Vitro's Vimex
plant, expected for December 2008, would provide modest, though
only limited, upside to the company's current liquidity position.
Moody's believes that continued cyclical earnings pressures may
cause free cash flow to remain weak during 2009 despite
significant ongoing cost reduction efforts and a likely material
cut in capital spending.  In addition, on December 18, 2008, Vitro
announced that it expects significantly lower revenues from Modelo
in 2009, its largest glass container client, likely exacerbating
margin pressures.  In recent years, Modelo has accounted for
around 14% of the revenues of Vitro's glass container division and
7% of its consolidated revenues, implying significantly lower
capacity utilization should most of these sales be lost without
other clients substituting for them.

While Vitro's adjusted LTM Debt/EBITDA was about 4.4 times, pro
forma leverage would have been significantly higher, well above
5.0 times, when including US$100 million in off-balance sheet debt
from Bancomext obtained in November 2008 plus an assumed US$235
million in derivative liabilities (still under negotiation; net of
US$85 million in collateral), and excluding debt and EBITDA
related to its Comegua joint venture, which was deconsolidated in
December 2008.

The Ca rating reflects the expectation of modest recovery for the
senior unsecured debt class in the case of default.  The negative
outlook reflects the risk that ultimate recovery level may be
lower than currently expected.

The last rating action on Vitro was on October 30, 2008, when
Moody's downgraded the company's ratings to Caa1 from B2 and left
the ratings on review for further downgrade.

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V., is
Mexico's leading glass manufacturer with revenues of
US$2.75 billion for the 12 months ended September 30, 2008.  Vitro
operates through two divisions, glass containers and flat glass,
which cater to a wide range of end markets, including the
construction and automotive sectors for flat glass and the soft
drink, beer, wine and liquor, food and cosmetics industries for
glass containers.


VOTORANTIM PARTICIPACOES: S&P Changes Outlook to Negative
---------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Brazil-based conglomerate Votorantim Participacoes S.A.
to negative from stable.  At the same time, S&P affirmed its 'BBB'
corporate credit rating on the company.

"The outlook revision reflects the increasing uncertainty that the
group's consolidated credit metrics will meet S&P's long-term
targets for the current rating amid the negative operating and
financial outlook for 2009," said Standard & Poor's credit analyst
Reginaldo Takara.

The group's main business units are already facing unfavorable
pricing and market conditions, at a time when consolidated
financial leverage is historically high after significant
investments in capacity expansions and acquisitions.  Therefore,
S&P believes it will take longer for credit metrics to converge
with S&P's long-term targets, built into the rating, of total debt
to EBITDA of less than 2x and funds from operations to total debt
of more than 35% until 2010 or 2011.

However, although the difficult economy will pressure cash flow,
S&P believes the group has room to adjust its strategy to preserve
liquidity and reduce net debt, bringing cash flow coverage more in
line with the current ratings.  Recent strategic moves related to
Banco Votorantim S.A. (BV; BB+/Stable/B) and Aracruz Celulose S.A.
(BB/Watch Pos/--) show that the group can consolidate its business
lines while reducing the holding company's direct exposure.

The ratings on VPar continue to reflect its broad business
diversification in segments benefiting from strong fundamentals
and low business correlation, for historically stable operating
margins and cash flows.  The rating also reflects VPar's moderate
financial policy, which has helped it achieve very strong
liquidity and appropriate net debt levels.

These positives are balanced by VPar's significant geographic
concentration and high gross debt relative to its own history and
the rating category -- particularly at a time when cash flow is
under pressure and refinancing conditions have deteriorated
generally.  The ratings also take into account the positive effect
of the sale of a 49.9% voting stake in BV to Banco do Brasil S.A.
(BdB; BBB-/Stable/A-3), which modestly reinforced the group's
liquidity but significantly reduced its exposure to the more
volatile financial sector.


VOTORANTIM CELULOSE: Aracruz Deal Cues S&P's Negative CreditWatch
-----------------------------------------------------------------
A previously published version of this report incorrectly
identified the entities that are to provide additional capital to
VCP.  A corrected version follows.

Standard & Poor's Ratings Services said that it placed its 'BBB'
corporate credit rating on Votorantim Celulose e Papel S.A. on
CreditWatch with negative implications.

At the same time, S&P placed its 'BB' corporate credit rating on
Aracruz Celulose S.A. on CreditWatch with positive implications.

The CreditWatch listings follow VCP's announcement that it has
reached an agreement to acquire 28.03% of the voting shares of
Aracruz held by Arapar S.A. (unrated) for BRL2.71 billion (about
US$1.18 billion).

Because the third controlling shareholder of Aracruz, Arainvest
Participacoees S.A. (unrated), has tag-along rights, the offer
includes an equivalent offer for Arainvest's voting shares. If
this offer is accepted, it would give VCP control of 84% of
Aracruz's voting shares.

The acquisition plan anticipates BRL4.25 billion in capitalization
for VCP, which is to include fresh money from Votorantim
Industrial (VID; unrated), BNDES Participacoes S.A. (BNDESPar;
unrated), and potentially from existing minority shareholders.

After the conclusion of the acquisition, and assuming that
Arainvest will not exercise its preferential rights on Aracruz's
shares, VCP and Aracruz would become a single economic entity,
listed on the Brazilian Stock Exchange and controlled by VID and
BNDESPar through a shareholders' agreement.

The consolidation of VCP and Aracruz would strengthen their
leadership in market pulp, with a total capacity of 5.8 million
tons per year.

"We expect the larger scale of the new entity to generate
synergies and cost savings in administrative expenses, production,
capital investments, and logistics, improving the company's cost
position and business profile," said Standard & Poor's credit
analyst Marcelo Costa.  "However, the significant increase in
leverage resulting from the share acquisition and from the losses
Aracruz has reported in its derivative position would raise
financial risk at the new company."

Resolution of the CreditWatch listing will depend on the
conclusion of the offer and S&P's assessment of the new entity's
credit risk.  S&P will monitor the resulting ownership and
corporate structure, debt leverage and amortization profile,
revised capital spending program, amount of new money VCP is to
receive in its planned capitalization, and synergies that this
merger might capture.


* BRAZIL: Local Companies Default Rate Up 36% in December
----------------------------------------------------------
The default rate of Brazilian companies increased 36% in December
from the same period in 2007, the highest increase since 1999,
Xinhua News reports, citing a study released by credit consulting
company Serasa Experian.

According to the report, December's default rate was up 5.9% from
November.  In 2008, the default rate among Brazilian companies was
up 4.8% compared with 2007, the report says.

Serasa Experian, the report notes, said the high default rate was
caused by the international financial crisis and its impact on
Brazil, namely the reduction of both credit and demand.

Xinhua News adds Serasa Experian said an increase the default rate
of consumers, also caused by the crisis, was another factor in the
default rate of the companies.

                          *     *     *

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
==========================

AXA NEW HORIZONS: Placed Under Voluntary Liquidation
----------------------------------------------------
On December 8, 2008, the sole shareholder of AXA New Horizons
Cayman Fund, Ltd. passed a written resolution that voluntarily
wind up the company's operations.

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


CASTLEROCK AIRCRAFT: Placed Under Voluntary Liquidation
-------------------------------------------------------
On December 10, 2008, the sole shareholder of Castlerock Aircraft
Limited passed a written resolution that voluntarily wind up the
company's operations.

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


CSERE ATRIUM: Placed Under Voluntary Liquidation
------------------------------------------------
On December 10, 2008, the sole shareholder of Csere Atrium
(Freehold) Limited passed a written resolution that voluntarily
wind up the company's operations.

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


CSERE DUMFRIES: Placed Under Voluntary Liquidation
------------------------------------------------
On December 10, 2008, the sole shareholder of Csere Dumfries
(Freehold) Limited passed a written resolution that voluntarily
wind up the company's operations.

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


CSERE MILTON: Placed Under Voluntary Liquidation
------------------------------------------------
On December 10, 2008, the sole shareholder of Csere Milton Keynes
(Freehold) Limited passed a written resolution that voluntarily
wind up the company's operations.

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


EIRE HALIFAX: Placed Under Voluntary Liquidation
------------------------------------------------
On December 10, 2008, the sole shareholder of Eire Halifax
(Freehold) Limited passed a written resolution that voluntarily
wind up the company's operations.

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


EIRE MANCHESTER: Placed Under Voluntary Liquidation
---------------------------------------------------
On December 10, 2008, the sole shareholder of Eire Manchester
(Freehold) Limited passed a written resolution that voluntarily
wind up the company's operations.

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


GC GLOBAL: Placed Under Voluntary Liquidation
---------------------------------------------
On December 9, 2008, the sole shareholder of GC Global Partners
Offshore I, Ltd. passed a written resolution that voluntarily wind
up the company's operations.

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


INFINITY ABSOLUTE: Placed Under Voluntary Liquidation
-----------------------------------------------------
On December 10, 2008, the sole shareholder of Infinity Absolute
Fund passed a written resolution that voluntarily wind up the
company's operations.

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


NEW HARVEST: Placed Under Voluntary Liquidation
-----------------------------------------------
On December 10, 2008, the sole shareholder of New Harvest
Investment Limited passed a written resolution that voluntarily
wind up the company's operations.

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


NORMA CDO: Placed Under Voluntary Liquidation
---------------------------------------------
On December 10, 2008, the sole shareholder of Norma CDO I Ltd.
resolved through a written resolution to voluntarily wind up the
company's operations.

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


OFFALY LIMITED: Placed Under Voluntary Liquidation
--------------------------------------------------
On December 10, 2008, the sole shareholder of Offaly Limited
passed a written resolution that voluntarily wind up the company's
operations.

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


ORIES HOLDING: Placed Under Voluntary Liquidation
-------------------------------------------------
On December 10, 2008, the sole shareholder of Ories Holding
Company passed a written resolution that voluntarily wind up the
company's operations.

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


PANGAEA CLO 2007-2: Placed Under Voluntary Liquidation
------------------------------------------------------
On December 10, 2008, the sole shareholder of Pangaea CLO 2007-2
Ltd. passed a written resolution that voluntarily wind up the
company's operations.

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


PORTMARNOCK LIMITED: Placed Under Voluntary Liquidation
-------------------------------------------------------
On December 10, 2008, the sole shareholder of Portmarnock Limited
passed a written resolution that voluntarily wind up the company's
operations.

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


ROSCOMMON LIMITED: Placed Under Voluntary Liquidation
-----------------------------------------------------
On December 10, 2008, the sole shareholder of Roscommon Limited
passed a written resolution that voluntarily wind up the company's
operations.

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


SAL 95: Placed Under Voluntary Liquidation
------------------------------------------
On December 10, 2008, the shareholder of Sal 95 Limited passed a
resolution that voluntarily wind up the company's operations.

The company's liquidator is:

          Trident Liquidators (Cayman) Limited
          c/o Philip Sutcliffe
          Trident Trust Company (Cayman) Limited
          P.O. Box 847, George Town
          Grand Cayman KY1-1103
          Telephone: (345) 949 0880
          Facsimile: (345) 949 0881


TITANIUM FUND: Placed Under Voluntary Liquidation
-------------------------------------------------
On December 10, 2008, the sole shareholder of Titanium Fund passed
a written resolution that voluntarily wind up the company's
operations.

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


VINTRY INVESTMENTS: Placed Under Voluntary Liquidation
------------------------------------------------------
At an extraordinary general meeting held on December 9, 2008, the
members of Vintry Investments (Cayman) Limited resolved to
voluntarily liquidate the company's business.

The company's liquidator is:

          Jonathan Foster
          c/o Messrs. Maples and Calder, Attorneys-at-law
          PO Box 309, Ugland House
          Grand Cayman KY1-1104, Cayman Islands


YA 95 A: Placed Under Voluntary Liquidation
-------------------------------------------
On December 11, 2008, the shareholder of YA 95 A Limited passed a
resolution that voluntarily wind up the company's operations.

The company's liquidator is:

          Trident Liquidators (Cayman) Limited
          c/o Philip Sutcliffe
          Trident Trust Company (Cayman) Limited
          P.O. Box 847, George Town
          Grand Cayman KY1-1103
          Telephone: (345) 949 0880
          Facsimile: (345) 949 0881



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

BANCOLOMBIA: Board OKs Issuance of Subordinated Ordinary Notes
-------------------------------------------------------------
Bancolombia S.A.'s Board of Directors approved the issuance of
Bonos Ordinarios Subordinados:

   -- The Subordinated Ordinary Notes will be offered in Colombia
      in multiple and successive issuances up to an aggregate
      principal amount of one trillion Colombian pesos
      (Ps$1,000,000,000,000).

   -- According to the Reglamento de Emision y Colocacion de
      Multiples y Sucesivas Emisiones de Bonos Ordinarios
      Subordinados (the "Subordinated Ordinary Notes Terms")
      approved by the Board of Directors of Bancolombia, which
      define the financial terms and maximum interest rates of the
      Subordinated Ordinary Notes, the issuances of Subordinated
      Ordinary Notes may consist of multiple series.

   -- The Board of Directors of Bancolombia authorized the legal
      representative of Bancolombia to conduct the offerings of
      the Subordinated Ordinary Notes pursuant to the Subordinated
      Ordinary Notes Terms and to carry out any actions necessary
      for the issuance of the Subordinated Ordinary Notes,
      including obtaining government approvals.

The proceeds from the offerings will be used for general corporate
purposes of Bancolombia, which include carrying out the business
authorized to financial institutions in accordance with applicable
law.

                      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.


ECOPETROL: Mulls Petro-Tech Stake Acquisition
---------------------------------------------
Ecopetrol SA may buy crude oil producer Petro-Tech Peruana SA, as
it plans to increase investment in Peru's oil and natural gas
industry, Alex Emery of Bloomberg News reports, citing Colombian
Energy Minister Hernan Martinez.

"Yes, it's a possibility that we have been looking at, and
obviously, we are continuing to evaluate it.  It's one of the
possible ways to expand Colombian investments in Peru," Reuters
quoted Minister Martinez as saying.

Ecopetrol President Javier Gutierre, Bloomberg News relates, said
the company plans to spend US$60 billion by 2015 to meet its goal
of pumping 1 million barrels a day, up from this year's 650,000
barrels, and to more than double its refining capacity.  Of US$6.2
billion in planned spending for next year, including US$1 billion
for exploration, US$2.72 billion for boosting output and US$870
million for acquisitions, President Gutierrez said, the same
report relates.

Reuters says Peru's government is actively encouraging foreign
companies to invest to help boost oil and gas output.  Last year,
Reuters recounts, Chinese state oil firms were reported to be
preparing bids for Petro-Tech, a deal that was then estimated to
be worth between US$1.5 and US$2.5 billion.

                         About Petro-Tech

Petro-Tech, a unit of Houston-based Offshore International Group,
produces 11,000 barrels per day of crude and 15.6 million cubic
feet of gas.

                       About Ecopetrol S.A.

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.



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

* ECUADOR: Sees Oil Prices at US$55 Per Barrel This Year
--------------------------------------------------------
OPEC member Ecuador sees oil prices averaging around US$55 per
barrel this year, Alonso Soto of Reuters reports, citing Oil
Minister Derlis Palacios.

"Ecuador has restructured its 2009 budget with a WTI (West Texas
Intermediate) price of US$55 per barrel ... we are talking about
around US$40 for our oil," Reuters quoted Minister Palacios as
saying.

According to the report, Ecuador has slashed investment in its key
energy sector as falling oil prices curtailed income.

As reported in the Troubled Company Reporter Latin-America on
January 27, 2009, The Latin America Herald Tribune said state oil
company Petroecuador will carry out a restructuring plan that
includes eliminating 1,500 jobs.

Reuters says lower state investment could hurt the country's oil
output already hit by dwindling private investment as the
government tries to rework current foreign oil deals

                           *     *     *

As reported in the Troubled Company Reporter - Latin America on
December 17, 2008, Fitch Ratings downgraded Ecuador's long-term
foreign currency Issuer Default Rating (IDR) to 'RD' from 'CCC'
following the expiration of the grace period for the coupon
payment on the 2012 global bonds that was due on Nov. 15 and the
government's announcement that it will selectively default on all
global bonds.  The short-term foreign currency rating was
downgraded to 'D' from 'C'.  The country ceiling remains at 'B-'.



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

COMERCI: May Sell Land and Credit Unit to Repay Debts
-----------------------------------------------------
Controladora Comercial Mexicana SAB de CV ("Comerci") may sell
land and Prestacomer credit unit to pay off creditors, Bu Hugh
Collins Bloombeg News reports, citing Excelsior.

Bloomberg News relates Excelsior reported that Jose Calvillo, the
Comercial Mexicana executive overseeing the company's debt
restructuring, said the supermarket chain is considering selling
assets outside of its main business to repay debts estimated at
US$2 billion.

As reported in the Troubled Company Reporter - Latin America on
November 28, 2008, Reuters said Comerci's holders of around
MP1.5 billion (US$114 million) want all their money, without a
negotiated reduction, after the company defaulted due to the
global crisis and plummeting peso.

The report related that Comerci failed to make payments on local
notes held by some 1,000 investors, from funds to individuals, and
was expected by analysts to try to negotiate reduced payments.

Reuters noted that the retailer's creditors include six banks that
backed up its trading in derivatives for over US$1 billion, five
banks that extended loans, as well as bond holders.

The company has made two failed attempts in recent weeks to obtain
protection from creditors and is currently fighting in court for a
favorable ruling, the report added.

                          About Comerci

Controladora Comercial Mexicana SAB de CV (CCM) --
http://www.comerci.com.mx --  is a Mexican holding company that,
through its subsidiaries, operates several chains of retail
stores, as well as a chain of family restaurants under the
Restaurantes California brand name.  In addition, CCM owns a 50%
interest in the Costco de Mexico, a joint venture with Costco
Wholesale Corporation, which operates a chain of membership
warehouses in Mexico.  The Company's store chains include
Comercial Mexicana, City Market, Mega, Bodega CM, Sumesa and
Alprecio, among others.  As of December 31, 2007, CCM operated 214
commercial units and 71 restaurants across Mexico.  The Company's
retail outlets sell a variety of food items, including basic
groceries and perishables, and non-food items, which include
electronics, home furnishings, personal hygiene products and
clothing.  CCM is a parent of Tiendas Comercial Mexicana SA de CV,
Tiendas Sumesa SA de CV, Restaurantes California SA de CV and
Costco de Mexico SA de CV, among others.


LIBRAMIENTO DE MATEHUALA: Moody's Confirms National Scale Rating
----------------------------------------------------------------
Moody's has confirmed the Aa2.mx (Mexico National Scale Rating) on
the Libramiento de Matehuala Toll Road. The last rating action on
Libramiento de Matehuala was on July 3, 2008 when the Mexico
National Scale Rating was changed to Aa2.mx from Aaa.mx and put
under review for downgrade, pending evaluation of the project's
operating and financial performance and expectations for the
future.

The last rating action reflected the downgrade of XL Capital
Assurance to B2 from A3 which resulted in the mapping of the
Mexican National Scale Rating to the project's underlying rating
of Baa3 (Global Scale) rather than to the rating of the guarantor.
The confirmation of the Aa2.mx is based on the positive trends in
traffic and revenues as well as the factors comparing favorably to
those of other rated toll roads in Mexico. Moody's affirms the
Libramiento de Matehuala's underlying rating of Baa3 (Global
Scale, Local Currency Rating) with a stable outlook.  The ratings
reflect an assessment of the rating factors outlined in the
Moody's Rating Methodology for Operational Toll Roads.

The toll road is performing well, as evidenced by the increases in
both traffic and revenues over the last three year period (2006-
2008).  On average, total traffic has increased close to 9%
annually during this time, and Average Annual Daily Traffic has
exceeded the expectations generated in the base case scenario.
The increases in traffic compare favorably to the GDP growth in
Mexico and the U.S., which expanded at 3.4% and 2.3% respectively
during this period.  Given the nature of the road along the NAFTA
corridor, its success depends more on the broader economic
situation of Mexico and the United States, than that of the
immediate area, which is relatively limited.  Historically,
revenues have also performed satisfactorily, increasing 15%
annually on average over the same three year period spanning 2006-
2008.

Given the economic recession in the U.S. and the global financial
crisis, the expectation is that trade related traffic will decline
in 2009 as consumer demand in the United States continues to
tighten.  Once the U.S. and Mexican economies begin a process of
recovery, Moody's expect at least moderate increases in trade
related traffic.  The project should, however, be able to
withstand a period of declining traffic, if that occurs, given
their current levels of debt service coverage and the amount held
in the debt service reserve account.

Debt service coverage has been satisfactory over the last two full
years.  In 2006 and 2007, the project generated a DSCR averaging
1.7x.  The preliminary estimate for 2008 is that DSCR will be in
the same range.

The debt structure provides relatively strong investor protections
including use of all excess cash to pay down principal.  The
structure does not allow for dividend payments until all senior
debt is paid off.  The project has been making additional
principal payments and hence the amount outstanding today,
measured in UDIs, is below that of what was expected to be paid on
the amortization schedule.  The transaction also provides for a
12-month debt service reserve fund, which is fully funded in cash.

The Certificates were issued in December 2005 through a special
purpose trust through HSBC Mexico, S.A., Institución de Banca
Múltiple, Grupo Financiero HSBC, División Fiduciaria, and are
secured by the toll collection rights embodied in the concession
agreement between Desarrolladora de Concesiones Omega S.A. de C.V.
and the Secretary of Transportation and Communications.

Libramiento Matehuala is a 14-kilometer long toll road that was
built as an alternative/bypass parallel to Boulevard Matehuala,
which bisects the city of Matehuala, located in central Mexico in
the state of San Luis Potosi.  Although short relative to most
toll roads, the Libramiento de Matehuala is an integral component
of Federal Highway 57, which connects Mexico City with Laredo,
Texas and beyond.  The Laredo port of entry handles approximately
44% and 35% of all U.S./Mexico exports and imports, respectively.

Desarrolladora de Concesiones Omega, S.A. de C.V. was established
in 2003 solely to construct, own and operate the Libramiento
Carretera Matehuala for a period of 30 years to 2033.  The
concessionaire is 98% owned by Omega Corp, S.A. de C.V.
Moody's Mexico National Scale ratings are opinions of the relative
credit worthiness of issuers and issues within Mexico.  The
Moody's Global Scale rating for borrowings in local currency
allows investors to compare the state's creditworthiness to all
other issuers in the world rather than merely in Mexico.  It
incorporates all Mexico-related risks, including the potential
volatility of the Mexican economy.  For comparative purposes,
Moody's Global Scale, Local Currency rating for domestic debt
issued by the Mexican government is Baa1.


* MEXICO: Peso & Bond Drop on Concern U.S. Demand to Decline
------------------------------------------------------------
Mexico's peso and bonds fell on concern growing job losses in the
U.S. will further erode demand for Mexican exports, Valerie Rota
of Bloomberg News reports.

According to the report, the peso's decline extended its loss this
month to 2.8%, the worst performance against the dollar among the
six most-traded currencies in Latin America.

"There hasn't been a correction in risk perception," Bloomberg
quoted Eduardo Perez, who oversees US$5 billion in assets at Grupo
Nacional Provincial SA in Mexico City, as saying.  "There are
still a lot of elements of uncertainty," he said.

Bloomberg News notes Alfredo Thorne, JPMorgan Chase & Co.'s head
of Latin America research, said Mexico's economy will contract
1.6% this year.

The report relates Alonso Cervera, a Latin America economist at
Credit Suisse Group, said Mexico's current-account deficit will
likely swell to 4% of gross domestic product in 2009, from 2
percent of GDP last year.

Meanwhile, Bloomberg News says yields on Mexico's benchmark
government bonds rose for a second day on January 26, after
reaching a nine-month low.  The yield has fallen 3.73 percentage
points from a 3 1/2-year high in November, the report recounts.

The report adds Manuel Galvan, a fixed-income strategist at
Metanalisis SA, said the yield on the security due in 2024 may
fall another half-percentage point over the coming weeks on bets
the decelerating economy will slow inflation this year.



========================================
T U R K S  &  C A I C O S  I S L A N D S
========================================

TCI NEW MEDIA: To Close Down by Months End
------------------------------------------
Government television station channel 7, TCI New Media, will be
closing down soon, possibly by the end of January due to lack of
funding, Turks and Caicos Net News reports, citing unnamed
sources.

According to the report, TCI New Media was started under the
current administration as an outlet for government-related news.
However, the report relates no license was issued and it operated
illegally for some months.

The People's Democratic Movement (PDM) opposition brought this
issue to the House of Assembly last year and the Michael Misick-
led government established a broadcast commission to legalize the
station, the report recounts.

The report says that during the debate on this issue, the ruling
Progressive National Party (PNP) was allotted the lion's share of
the broadcast time and the opposition a minimum.

During the House meeting, Turks and Caicos Net News relates, the
opposition put forth the proposition that most of the time the New
Media broadcasts were nothing more than propaganda and therefore
they were entitled to equal time.



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

* VENEZUELA: OPEC is Ready for More Cuts, President Chavez Says
---------------------------------------------------------------
The Organization of Petroleum Exporting Countries ("OPEC") is
ready to cut more crude production to defend world oil prices hurt
by the global financial crisis, Patricia Rondon of Reuters
reports, citing Venezuelan President Hugo Chavez.

Last month, the report recounts, OPEC agreed to slash its output
by 2.2 million barrels per day after crude prices fell more than
US$100 from highs in July after economic turmoil battered demand.

"I said a few weeks ago, if we have to cut 4 million more, we will
cut them, we are not going to let the prices fall again to where
they were ten years ago, at US$6 a barrel," Reuters quoted
President Chavez as saying.

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

                          *     *     *

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
=============

* CARIBBEAN ISLANDS: Local Resort Adds to Island Job Cuts
---------------------------------------------------------
The Westin and Sheraton Grand Bahama Our Lucaya Resort is adding
to the job loss woes across the Caribbean, with 181 of its
beachfront employees, or 18% of its workforce, has been let go,
CaribWorld News reports.

The report relates hotel officials of the New York-based Starwood
Hotels & Resorts Worldwide Inc. said the U.S. recession continues
to keep travelers put.

According to the report, the latest job losses add to those by
other big named hotels across the island and the region:

  -- Atlantis Resort with about 800 dismissed workers;
  -- Baha Mar Resorts Ltd. with some 80 laid off employees at two
     Bahamas locations;
  -- Sandals with 650 job cut in December; and
  -- Wyndham Rio Mar Beach Resort and Spa with 200 slashed jobs.

The job cuts, CaribWorld News relates, are not limited to tourism:

  -- Wyeth Pharmaceuticals cut 276 in Puerto Rico;
  -- Sugar Company of Jamaica sent 8,000 workers home; and
  -- Rusal of Jamaica cut 150 jobs and another 600 in Guyana.

Other companies in the Caribbean, the report notes, are also
planning to have job cuts:

  -- Hewlett-Packard Co. will cut nearly 100 workers in Puerto
     Rico by the end of April;
  -- Digicel to cut 10% of its Caribbean workforce; and
  -- LIME will cut 1,200 jobs.

CaribWorld News says the UN has forecast that the Caribbean
economy is set to see a rise in unemployment rates this year to
between 7.8% and 8.1% as a result of the international crisis.


                            ***********

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.


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