TCRLA_Public/090129.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Thursday, January 29, 2009, Vol. 9, No. 20

                            Headlines

B E R M U D A

AVOCET EUROPEAN: Creditors' Proofs of Debt Due on February 13
AVOCET G.P.: Creditors' Proofs of Debt Due on February 13
CROATIANSUN LIMITED: Creditors' Proofs of Debt Due on February 13
JUPITER ASIA: Creditors' Proofs of Debt Due on February 13


B R A Z I L

* BRAZIL: Loan Defaults Rise to 6-Yr High in Dec. as Economy Slows
* BRAZIL: Current Account Fell Into Deficit Last Year


C A Y M A N  I S L A N D S

APOLLO SPIRES: Enters Wind-Up Proceedings
ARDEN PREMIER: Placed Under Voluntary Liquidation
BT CASCADES: Enters Wind-Up Proceedings
BT CASCADES: Enters Wind-Up Proceedings
BT NOTES: Enters Wind-Up Proceedings

CEDAR INTERNATIONAL: Enters Wind-Up Proceedings
CPT500: Commences Liquidation Proceedings
EURO CBO: Enters Wind-Up Proceedings
FIRST COMMERCE: Enters Wind-Up Proceedings
FLAME INC: Enters Wind-Up Proceedings

HARBOR DRIVE: Commences Liquidation Proceedings
HEART BEAT: Enters Wind-Up Proceedings
KATONAH II: Enters Wind-Up Proceedings
MURJAN 2: Enters Wind-Up Proceedings
OXFORD OPTIONCO ET AL: Placed Under Voluntary Liquidation

PANTERA UBER: Placed Under Voluntary Liquidation
RAINIER CBO: Enters Wind-Up Proceedings
SEQUOIA CAPITAL: Placed Under Voluntary Liquidation
SIGNUM SAPPHIRE: Enters Wind-Up Proceedings
VINTRY INVESTMENTS: Creditors' Proofs of Debt Due on January 31


E C U A D O R

* ECUADOR: To Comply With OPEC's Supply Cut


J A M A I C A

AIR JAMAICA: To Cut 6 Routes and Eliminate Jobs in February


M E X I C O

CEMEX SAB: Restructures US$4 Billion Short-Term Debt
VITRO SAB: Tells Bond Holders to Ready for Restructuring Talks
VITRO SAB: Unit Agrees to Extension of Shares Purchase Payment
* MEXICO: Central Bank Sees 1.8% Decrease in 2009 GDP


V E N E Z U E L A

PDVSA: Petrosucre JV Takes Over Ensco Drilling Rig in Dispute


V I R G I N  I S L A N D S

PALADRU SERVICE: German Lender Forces Company Into Receivership


                         - - - - -


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

AVOCET EUROPEAN: Creditors' Proofs of Debt Due on February 13
-------------------------------------------------------------
The creditors of Avocet European Technology Fund Limited are
required to file their proofs of debt by February 13, 2009, to be
included in the company's dividend distribution.

The company commenced liquidation proceeding on January 27, 2009.

The company's liquidator is:

          Ian Pilgrim
          c/o Mayflower Management Services Limited
          Bamboo Gate, 1 1 Harbour Road
          Paget PG01, Bermuda


AVOCET G.P.: Creditors' Proofs of Debt Due on February 13
---------------------------------------------------------
The creditors of Avocet G.P. (Bermuda) Limited are required to
file their proofs of debt by February 13, 2009, to be included in
the company's dividend distribution.

The company commenced liquidation proceeding on January 27, 2009.

The company's liquidator is:

          Ian Pilgrim
          c/o Mayflower Management Services Limited
          Bamboo Gate, 1 1 Harbour Road
          Paget PG01, Bermuda


CROATIANSUN LIMITED: Creditors' Proofs of Debt Due on February 13
-----------------------------------------------------------------
The creditors of Croatiansun Limited are required to file their
proofs of debt by February 13, 2009, to be included in the
company's dividend distribution.

The company commenced liquidation proceeding on January 27, 2009.

The company's liquidator is:

          Ian Pilgrim
          c/o Mayflower Management Services Limited
          Bamboo Gate, 1 1 Harbour Road
          Paget PG01, Bermuda


JUPITER ASIA: Creditors' Proofs of Debt Due on February 13
----------------------------------------------------------
The creditors of Jupiter Asia Pacific Hedge Fund Limited are
required to file their proofs of debt by February 13, 2009, to be
included in the company's dividend distribution.

The company commenced liquidation proceeding on January 27, 2009.

The company's liquidator is:

          Ian Pilgrim
          c/o Mayflower Management Services Limited
          Bamboo Gate, 1 1 Harbour Road
          Paget PG01, Bermuda




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

* BRAZIL: Loan Defaults Rise to 6-Yr High in Dec. as Economy Slows
------------------------------------------------------------------
Brazil's loan defaults surged in December to the highest since
September 2002, as the country's economy slowed and the credit
crisis increased borrowing costs, making it more difficult for
consumers to repay debt, Bloomberg News reports.

The report relates Brazil's central bank said the default rate on
personal loans in Brazil increased to 8.1% in December from 7.8%
in November, while bank lending expanded 1.6% to IDR1.23 trillion
(US$530 billion).

"Things will worsen in the first quarter," Luis Miguel Santacreu,
an analyst at Austin Rating in Sao Paulo, told Bloomberg in an
interview.  "We will see the clearer effects of events such as
higher unemployment in coming months," he said.

According to the report, the average annual interest rate banks
charge customers increased to 43.2% in December from 33.8% a year
earlier, and rose to 43.3% in the first two weeks of this month.
In an effort to stem that increase, the report relates the central
bank cut its benchmark rate by a full percentage point on Jan. 21,
from a two-year high of 13.75%.

"Defaults increased a lot because interest rates are very high,"
Bloomberg quoted Altamir Lopes, head of the central bank's
economic research department, as saying.  "In moments of crisis,
there's an increase in defaults.  We expect this to normalize in a
short period of time," he said.

As reported in the Troubled Company Reporter-Latin America on
January 28, 2009, Xinhua News said a study released by credit
consulting company Serasa Experian posted that the default rate of
Brazilian companies increased 36% in December from the same period
in 2007, the highest increase since 1999.

According to Xinhua, 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 same report noted.

Central Bank President Henrique Meirelles, Bloomberg News relates,
said global credit crisis and a worldwide economic slump have
constrained lending in Brazil and eroded consumer confidence.
Local banks have eased up on lending somewhat, though financing
costs remain high, he added.

Meanwhile, Bloomberg News says the government announced that it
was freezing BRL37.2 billion of its planned spending for 2009 as
tax collection declines amid flagging economic growth.

                          *     *     *

According to Moody's Rating Agency, the country continues to carry
a BA1 local and foreign currency rating.




* BRAZIL: Current Account Fell Into Deficit Last Year
-----------------------------------------------------
Brazil's current account fell into deficit in 2008, for the first
time in six years as the global financial crisis prompted
foreigners to repatriate assets, squeezing the country's trade
surplus, Reuters reports, citing central bank data.

Brazil ran a current account deficit last year of US$28.3 billion,
reversing a surplus of US$1.55 billion in 2007, the report says.

"In 2008, our balance of payments showed a significant
deterioration ... because of the international crisis,"  the
report quoted Altamir Lopes, head of the central bank's economic
research department, as saying.

According to the report, the current account deficit, along with a
rise in portfolio investment outflows, also hurt Brazil's broader
balance of payments even as foreign direct investment surged to an
all-time high, the data cited by Reuters showed.

Reuters notes that a near 40% jump in income repatriation by
multinational companies in need of cash at home and a sharp
narrowing of the trade surplus helped pushed the country's current
account into deficit last year.

With a global economic recovery nowhere in sight, analysts expect
Brazil's current account to remain in deficit this year, though
sluggish domestic growth and lower company profits could limit the
fallout, the report states.

Mr. Lopez, as cited by Reuters, said income repatriation and a
near halving of Brazil's trade surplus also hurt Brazil's current
account last year.

Reuters recounts income repatriation rose 17.7% in December from a
year ago to US$4 billion.  For the year, corporate remittances
totaled US$40.6 billion, a 38.5% increase over 2007, the report
notes.

The trade surplus narrowed to US$24.7 billion last year from
US$40 billion in 2007 as the global crisis hurt demand for
Brazil's exports and knocked prices, the report adds.

                           *     *     *

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

APOLLO SPIRES: Enters Wind-Up Proceedings
-----------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Apollo Spires Limited resolved to voluntarily wind
up the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


ARDEN PREMIER: Placed Under Voluntary Liquidation
-------------------------------------------------
On December 9, 2008, the sole shareholder of Arden Premier Fund
SPC passed a resolution that voluntarily wind up the company's
operations.

Only creditors who were able to file their proofs of debt by
January 5, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          Ogier
          c/o Angus Davison
          Queensgate House, South Church Street
          PO Box 1234, Grand Cayman KY1-1108
          Cayman Islands
          Telephone: (345) 949 9876
          Facsimile: (345) 949 1986


BT CASCADES: Enters Wind-Up Proceedings
---------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of BT Cascades No. 2 Limited resolved to voluntarily
wind up the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


BT CASCADES: Enters Wind-Up Proceedings
---------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of BT Cascades No. 3 Limited resolved to voluntarily
wind up the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


BT NOTES: Enters Wind-Up Proceedings
------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of BT Notes Limited resolved to voluntarily wind up
the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


CEDAR INTERNATIONAL: Enters Wind-Up Proceedings
-----------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Cedar International Securities Limited resolved to
voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


CPT500: Commences Liquidation Proceedings
-----------------------------------------
On December 3, 2008, the sole shareholder of CPT500 passed a
special 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


EURO CBO: Enters Wind-Up Proceedings
------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Euro CBO Services Ltd. resolved to voluntarily
wind up the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


FIRST COMMERCE: Enters Wind-Up Proceedings
------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of First Commerce resolved to voluntarily wind up the
company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


FLAME INC: Enters Wind-Up Proceedings
-------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Flame Inc. resolved to voluntarily wind up the
company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


HARBOR DRIVE: Commences Liquidation Proceedings
-----------------------------------------------
On November 27, 2008, the sole shareholder of Harbor Drive Fund,
Ltd. passed a special 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


HEART BEAT: Enters Wind-Up Proceedings
--------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Heart Beat Funding 2, Inc. resolved to voluntarily
wind up the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


KATONAH II: Enters Wind-Up Proceedings
--------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Katonah II, Ltd. resolved to voluntarily wind up
the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


MURJAN 2: Enters Wind-Up Proceedings
------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Murjan 2 Limited resolved to voluntarily wind up
the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


OXFORD OPTIONCO ET AL: Placed Under Voluntary Liquidation
---------------------------------------------------------
On December 9, 2008, the shareholder of Oxford Optionco Ltd. and
Oxford Optionco 0 Limited adopted a resolution that voluntarily
wind up the companies' operations.

Only creditors who were able to file their proofs of debt by
January 22, 2009, will be included in the companies' dividend
distribution.

The companies' liquidator is:

          John Sutlic
          c/o Kim Charaman
          Close Brothers (Cayman) Limited
          Harbour Place, Fourth Floor
          P.O. Box 1034, Grand Cayman KY1-1102
          Telephone: (345) 949 8455
          Facsimile: (345) 949 8499


PANTERA UBER: Placed Under Voluntary Liquidation
------------------------------------------------
On December 11, 2008, the sole shareholder of Pantera Uber
Consumer Master Fund Ltd. passed a resolution that voluntarily
wind up the company's operations.

Only creditors who were able to file their proofs of debt by
January 7, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          Ogier
          c/o Angus Davison
          Queensgate House, South Church Street
          PO Box 1234, Grand Cayman KY1-1108
          Cayman Islands
          Telephone: (345) 949 9876
          Facsimile: (345) 949 1986


RAINIER CBO: Enters Wind-Up Proceedings
---------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
members of Rainier CBO I Ltd. resolved to voluntarily wind up the
company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


SEQUOIA CAPITAL: Placed Under Voluntary Liquidation
---------------------------------------------------
On December 9, 2008, the sole shareholder of Sequoia Capital
Management International Limited passed a special resolution that
voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
January 20, 2009, will be included in the company's dividend
distribution.

The company's liquidator is:

          John Ralph Wardlaw
          c/o Lewis Holdway
          20 Queen Street, Melbourne Victoria
          Australia
          Tel: +61 3 9629 9629
          Fax: +61 3 9629 9630


SIGNUM SAPPHIRE: Enters Wind-Up Proceedings
-------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Signum Sapphire Limited resolved to voluntarily
wind up the company's operations.

Only creditors who were able to file their proofs of debt by
January 23, 2009, will be included in the companies' dividend
distribution.

The company's liquidator is:

          David Dyer
          c/o Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall, Cricket Square
          171 Elgin Avenue, George Town
          Grand Cayman KY1-1104, Cayman Islands


VINTRY INVESTMENTS: Creditors' Proofs of Debt Due on January 31
---------------------------------------------------------------
The creditors of Vintry Investments (Cayman) Limited are required
to file their proofs of debt by January 31, 2009, to be included
in the company's dividend distribution.

The company's liquidator is:

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



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

* ECUADOR: To Comply With OPEC's Supply Cut
-------------------------------------------
Ecuador will reduce state oil output to comply with OPEC's supply
cut and expects its production to remain unchanged this year at
around 270,000 barrels per day, Alonso Soto of Reuters reports,
citing Oil Minister Derlis Palacios.

According to the report, Ecuador has slashed investment in the key
oil sector as falling oil prices crimp the country's income.

Still, Minister Palacios said state oil company, Petroecuador,
will start to slash output by 18,000 bpd to comply with OPEC
supply cut in an effort to lift oil prices, the report relates.

"Petroecuador and (its affiliate) Petroamazonas will lower output
by 18,000 bpd in coming days," Reuters quoted Minister Palacios as
saying.

Reuters says Ecuador has to cut output by 40,000 bpd to comply
with the cartel's supply reduction.

                          *     *     *

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-'.



=============
J A M A I C A
=============

AIR JAMAICA: To Cut 6 Routes and Eliminate Jobs in February
-----------------------------------------------------------
Debt-ridden Air Jamaica will eliminate six routes and cut jobs
next month due to global meltdown in the economy, various reports
say.

Associated Press relates Air Jamaica CEO Bruce Noble said flights
to Atlanta, Miami, Los Angeles, Barbados, Grenada and the island
of Grand Cayman will be cut in late February.  The carrier had to
"cut routes where we are losing money," he said.

According to CaribWorldNews, the cuts will result in job losses in
those areas and the reduction of the airline's fleet to nine
aircraft.

Mr. Bruce Noble, AP relates, said the number of workers will be
dismissed around the same time of the route cuts.

CaribWorldNews notes Mr. Nobles said the cuts are designed to
respond to the current global economic downturn, quickly stem the
substantial cash losses at the company, and position the airline
on a path to financial stability going forward.

Officials, CaribWorldNews relates, also said the beleaguered
airline will restructure existing leases and negotiate aircraft
returns to trim cost.

AP says Jamaica expects to divest itself from the airline by
April.

As reported in the Troubled Company Reporter - Latin America on
January 7, 2008, Jamaica News said the National Workers Union
("NWU"), one of the union representing Air Jamaica workers,
suggested the government should seriously consider delaying the
stake sale of Air Jamaica.  The union said hope is fading that
the March 31 deadline for the divestment will be met, the same
report related.

Radio Jamaica News earlier reported Air Jamaica still has no clear
buyer as the three months divestment deadline expiration
approaches.  The report said the deepening financial woes in the
global economy could put a damper on efforts by the Bruce Golding
administration to get the loss-making Air Carrier off its books.

Radio Jamaica News, citing Air Jamaica President and Chief
Executive Officer, Bruce Nobles, said that while discussions are
underway with several interested parties, the impact of the
economic crunch could make the sale a difficult one.  However, he
remains optimistic despite the daunting economic challenges, the
same report said.

A TCR-LA report on November 20, 2008 said according to Jamaican
Information Service, Mr. Nobles and his team had been in
discussion with potential purchasers to ensure the divestment is
completed by the deadline.  The Government has contracted the
services of IFC, the private sector arm of the World Bank, as
consultants and advisers in the divestment process, the same
report added.

On Jan. 8, 2009, the TCR-LA, citing Jamaica Gleaner, said a local
group in Jamaica is reportedly considering to become a major
player in troubled airline Air Jamaica's future operations.

According to the report, vice president of NWU, Granville
Valentine, said members of the group have so far approached the
union for consultations on the matter.

RadioJamica News notes a source said a question mark has been
placed beside a local consortium that has presented an offer for
Air Jamaica.  Checks are being made on its financial backing to
determine whether it has the cash to operate Air Jamaica after
it's removed from state control, the same report relates.

                        About Air Jamaica

Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969.  It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America.  Air Jamaica offers vacation packages
through Air Jamaica Vacations.  The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.

The Jamaican government owned 25% of the company after it went
private in 1994. However, in late 2004, the government assumed
full ownership of the airline after an investor group turned over
its 75% stake.  The Jamaican government does not plan to own Air
Jamaica permanently.

                          *     *     *

As reported by the Troubled Company Reporter-Latin America on
Nov. 6, 2008, Moody's Investors Service placed the debt ratings of
Air Jamaica Limited, B1 senior unsecured notes guaranteed by the
Government of Jamaica, on review for possible downgrade.  The
review coincides with Moody's action placing the ratings of the
Government of Jamaica under review for downgrade on November 4,
2008.



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

CEMEX SAB: Restructures US$4 Billion Short-Term Debt
----------------------------------------------------
CEMEX, S.A.B. de C.V. said it has successfully completed its
refinancing plan.

The Wall Street Journal relates the cement maker had restructured
US$4 billion in short-term debt, a day before it is expected to
post its first quarterly loss in a decade.  The Journal says based
on median estimate of seven analysts polled by Dow Jones
Newswires, the company, heavily exposed to the U.S. housing
market, is expected to show a net loss of US$242 million in the
last quarter of 2008.  CEMEX is scheduled to release its quarterly
results today, Thursday, January 29.

CEMEX had previously announced that it had selected five banks to:

   i) negotiate new long-term syndicated facilities
      to replace existing short-term bilateral facilities;

  ii) extend the maturity by one year of a portion of the
      US$3.0 billion Rinker Group Limited acquisition
      syndicated loan facility due in December 2009; and

iii) amend the leverage ratio covenant, among other
      conditions, of certain existing syndicated loan
      facilities.

The final key components of the refinancing plan include:

    * US$2.3 billion of short-term bilateral
      facilities originally scheduled to mature
      in 2009 and early 2010 were refinanced in two
      long-term syndicated facilities.  The final
      maturity for the amounts refinanced in these new
      long-term facilities is February 2011, with
      US$607 million amortizing in 2009 and
      US$536 million amortizing in 2010.

    * CEMEX extended to December 2010 US$1.7 billion
      of the US$3 billion syndicated loan facility
      which was originally due in December of 2009.

    * CEMEX amended and increased in December 2008,
      among other terms, the leverage ratio provisions
      in its existing syndicated facilities.  The new
      leverage ratio requirement at the CEMEX, S.A.B.
      de C.V. level is a Net Debt of no more than
      4.5 times the trailing-twelve-month EBITDA in
      December 31, 2008, increasing to 4.75 times in
      June 30, 2009, and gradually decreasing to
      3.5 times by September 30, 2011 and thereafter.

Rodrigo Treviņo, CEMEX's Chief Financial Officer, said: "We are
pleased with the outcome of this refinancing, as it demonstrates
the health of CEMEX's business model and it is evidence of the
support of our banks.  This was another important step to
strengthen our capital structure and to lengthen the maturity
profile of our debt."

CEMEX, S.A.B. de C.V. (NYSE: CX) -- http://www.cemex.com/-- is a
holding company primarily engaged, through its operating
subsidiaries, in the production, distribution, marketing and sale
of cement, ready-mix concrete, aggregates and clinker.  The
company is a global cement manufacturer with operations in North
America, Europe, South America, Central America, the Caribbean,
Africa, the Middle East, Oceania and Asia.  As of December 31,
2007, the company's main cement production facilities were located
in Mexico, the United States, Spain, the United Kingdom, Germany,
Poland, Croatia, Latvia, Venezuela, Colombia, Costa Rica, the
Dominican Republic, Panama, Nicaragua, Puerto Rico, Egypt, the
Philippines and Thailand.  On August 28, 2007, CEMEX completed the
acquisition of 100% of the Rinker Group Limited.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on Jan.
23, 2009,
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Cemex S.A.B. de C.V. and Cemex's key operating
subsidiaries (Cemex Espana, S.A., Cemex Mexico S.A. de C.V., and
Cemex Inc.) to 'BB+' from 'BBB-', and placed the ratings on
CreditWatch with negative implications, meaning that the rating
could either be lowered or affirmed following the completion of
S&P's review.  The long-term Mexican national scale rating on
Cemex also was lowered, to 'mxAA-' from
'mxAA'.  At the same time, S&P lowered its rating on Cemex's
fixed-to-floating callable perpetual debentures to 'BB' from
'BB+'.

The rating downgrades reflect S&P's expectations that Cemex's
financial performance for 2009 will be under further pressure
given the weakening of economic growth prospects in Cemex's
principal markets and around the world.  About 74% of the
company's revenue is concentrated in the U.S., Mexico, and Spain
-- all of which S&P expects to record negative growth in this
year, which will translate into lower volumes and cash flow
generation compared with 2008, the rating agency said.


VITRO SAB: Tells Bond Holders to Ready for Restructuring Talks
--------------------------------------------------------------
Vitro, S.A.B. de C.V, the Mexican glassmaker that rating companies
said may miss a US$45 million interest payment next week, told
bondholders to prepare for restructuring negotiations, Thomas
Black of Bloomberg News reports, citing Carlos Legaspy, president
of Precise Investment Management, an investment firm in San Diego,
and James Harper, an analyst with BCP Securities in New York.

According to the report, Blackstone Group LP, hired by Vitro in
November to help restructure its liabilities, held the call with
creditors on January 27, but declined to say on the call if Vitro
will make the interest payment by the Feb. 1 due date.

"They want the creditors to organize to start talks," President
Legaspy told Bloomberg in a telephone interview.

Bloomberg News notes Vitro's bonds due in 2012 and 2017, which
both have Feb. 1 interest payments, have sunk to below 25 cents on
the dollar as the company's profit has been eroded by slumping
demand for glass and losses from derivatives on natural gas
prices.

"Vitro representatives as well as legal and financial advisors
have been engaged in discussions with our bondholders and
counterparties over the last several weeks in order to enhance the
company's financial flexibility," Vitro said in an e-mailed
statement in response to Bloomberg questions.  "We continue to
work with our bondholders to reach a solution that is in our
mutual interest," the company said.

                           About Vitro

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.

                           *    *    *

As reported by the Troubled Company Reporter-Latin America on
January 28, 2009, Moody's Investors Service downgraded Vitro,
S.A.B. de C.V.'s senior unsecured debt and corporate family
ratings to Ca from Caa1.  The ratings outlook is negative.

Fitch Ratings also downgraded these ratings for Vitro, S.A.B. de
C.V.:

  -- Long-term Issuer Default Rating to 'CC' from 'B-';

  -- Long-term local currency IDR to 'CC' from 'B-';

  -- US$300 million senior notes due 2012 to 'CC/RR4' from 'B-
     /RR4';

  -- US$225 million senior notes due 2013 to 'CC/RR4' from 'B-
     /RR4';

  -- US$700 million senior notes due 2017 to 'CC/RR4' from 'B-
     /RR4'.


VITRO SAB: Unit Agrees to Extension of Shares Purchase Payment
--------------------------------------------------------------
Vitro S.A.B. de C.V. said its subsidiary, Vimexico S.A. de C.V.,
in conjunction with the Prado Family members and Invergar
Participaciones Inmobiliarias S.L., the joint venture partners in
its Spanish subsidiary Vitro Cristalglass S.L., agreed to extend
distribution of payment for the purchase by Vimexico of its joint
venture partners' 40% stake in Vitro Cristalglass through the
remainder of 2009.

During the third quarter of 2008, Vimexico made a partial payment
to its joint venture partners of approximately EUR4 million.

The agreement to extend the payment period for its joint venture
partners' interest in Vitro Cristalglass is consistent with a
number of actions Vitro has undertaken to strengthen its balance
sheet and enhance liquidity.

                     About Vitro Cristalglass

Vitro Cristalglass, part of Vitro's Flat Glass business unit, is
the industry leader in the manufacturing, distribution and
marketing of specialty glass for the construction industry in
Spain and Portugal.  It also participates in the French
construction industry through its subsidiary, Vitro Cristalglass
France.

                           About Vitro

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.

                            *    *    *

As reported by the Troubled Company Reporter-Latin America on
Jan. 27, 2009, Fitch Ratings downgraded these ratings for Vitro,
S.A.B. de C.V.:

  -- Long-term Issuer Default Rating to 'CC' from 'B-';

  -- Long-term local currency IDR to 'CC' from 'B-';

  -- US$300 million senior notes due 2012 to 'CC/RR4' from 'B-
     /RR4';

  -- US$225 million senior notes due 2013 to 'CC/RR4' from 'B-
     /RR4';

  -- US$700 million senior notes due 2017 to 'CC/RR4' from 'B-
     /RR4'.


* MEXICO: Central Bank Sees 1.8% Decrease in 2009 GDP
-----------------------------------------------------
Mexico's central bank said gross domestic product may shrink 0.8%
to 1.8% in 2009, after growing 1.5% last year, Bloomberg News
reports, citing Bank Governor Guillermo Ortiz.

The report relates the central bank also said Mexico will lose
160,000 to 340,000 formal jobs this year.

According to the report, bank policy makers said Mexico will be
harder hit than previously predicted by the recession in the U.S.,
which buys 80% of Mexican exports.

"As we expect a contraction in the economy, this corresponds to
any definition of recession," Bloomberg quoted Mr. Ortiz as
saying.

The Central bank, the report notes, said weaker economic activity
gives the central bank "margin to relax" monetary policy.  Policy
makers cut the benchmark rate to 7.75% from 8.25% on Jan. 16, the
first time the bank cut rates in almost three years, Bloomberg
News recounts.

"Unlike previous financial crises, the current crisis is of a
global nature," the central bank said in a statement obtained by
Bloomberg.  Economic and financial uncertainty "have adversely
affected Mexico and its financial markets," it added.

Meanwhile, Bloomberg News adds the central bank forecasts
inflation will slow to less than 4% at the end of this year, and
reach the bank's target of 3% by the end of 2010.



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

PDVSA: Petrosucre JV Takes Over Ensco Drilling Rig in Dispute
-------------------------------------------------------------
Petroleos de Venezuela SA's Petrosucre joint venture "assumed
operational control" of Ensco International Inc.'s offshore
drilling rig Ensco 69 after the Dallas-based company halted
operations in a payment dispute, Steven Bodzin of Bloomberg News
reports.

According to Bloomberg News, Petrosucre is a joint venture of
PDVSA and Eni SpA, Italy's biggest energy company.  The venture
pumps the Corocoro oilfield.  ConocoPhillips was a partner on the
field until it left the country in 2007 over Venezuela's
unilateral contract changes.

The report relates PDVSA's accounts payable to suppliers have
risen along with a plunge in oil prices since July.  Crude oil has
fallen by more than US$100 a barrel since setting a record
US$147.27 a barrel July 11, the report says.

PDVSA, Bloomberg News recounts, was paying Ensco about US$185,000
a day to use the rig in 400-foot-deep water.  The rig is Ensco's
only piece of equipment in Venezuela and has been working since
2006, at a cost to PDVSA of US$110 million, according to a PDVSA
statement obtained by Bloomberg.

"Ensco's decision to halt drilling operations was taken in the
course of negotiations on the terms and conditions for the
payments of accounts payable for services provided to the joint
venture that began in December 2008," Bloomberg quoted PDVSA as
saying.

PDVSA, the report relates, said Ensco didn't accept "a range of
proposals and payment formulas presented by the joint venture."
Shutting down operations without 30 days notice violated and
nullified the service contract, PDVSA added.

Bloomberg News, citing a company financial report, notes PDVSA
accounts payable climbed 39% to US$7.86 billion at the end of
September from the end of December.

                           About PDVSA

Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's
state oil company in charge of the development of the petroleum,
petrochemical, and coal industry, as well as planning,
coordinating, supervising, and controlling the operational
activities of its divisions, both in Venezuela and abroad.

                           *     *     *

As reported by the Troubled Company Reporter on Nov. 26, 2008,
Fitch Ratings affirmed CITGO Petroleum Corp's Issuer Default
Rating and outstanding debt ratings:

  -- IDR at 'BB-';

  -- US$1.15 billion senior secured revolving credit facility
     maturing in 2010 at 'BBB-';

  -- US$700 million secured term-loan maturing in 2012 at 'BBB-';

  -- US$515 million secured term-loan maturing in 2012 at 'BBB-';

  -- Fixed-rate industrial revenue bonds at 'BBB-'.



==========================
V I R G I N  I S L A N D S
==========================

PALADRU SERVICE: German Lender Forces Company Into Receivership
---------------------------------------------------------------
Paladru Service Corporation has been forced into receivership by
its German bank lender, believed to be Deutsche Bank, following
the collapse of Crossways Shopping Centre, PropertyWeek.com
reports.

The report relates it was thought that Paladru purchased the
Crossways Shopping, which is also in receivership, from Kenmore
Property in 2006.  The shopping center has struggled to finance
development opportunities and has suffered from a high vacancy
level and the downturn in property and retail, the report says.

According to the report, the German lender has appointed GVA
Grimley as receiver.

PropertyWeek.com notes Robert Belcher, director and appointed
receiver at GVA Grimley, said: "The reason for the receivership is
that there is money owing on the debt and the demand has been
served by the mortgagor."

"The parties concerned wanted their funds back and decided to
appoint us as receiver to do that," the report quoted Mr. Belcher
as saying.

"We are still formulating a strategy to report to the banks as to
the best way forward.  Part of this will include a valuation of
the asset," Mr. Belcher said.

"A disposal will certainly take place, but no timescale has yet
been agreed.  In terms of the company structure of Paladru, I have
not yet got to the bottom of it yet," Mr. Belcher added.

                       About Paladru Service

Paladru Service Corporation is an offshore special purpose vehicle
set up by private investors thought to be based in the British
Virgin Islands.



                            ***********

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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