TCRLA_Public/090206.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Friday, February 6, 2009, Vol. 9, No. 26

                            Headlines

A R G E N T I N A

BISS SA: Proofs of Claim Verification Due on March 2
CASAF SA: Proofs of Claim Verification Due on April 22
SOLUCIONES ECOLOGICAS: Proofs of Claim Verification Due on May 14


B E R M U D A

FREMONT REINSURANCE: Court to Hear Wind-Up Petition on February 27
LAZARD EUROPEAN: Creditors' Proofs of Debt Due on February 18
LAZARD EUROPEAN: Members' Final Meeting Set for March 11
VANGUARD INSURANCE: Court to Hear Wind-Up Petition on February 27


B R A Z I L

CAIXA ECONOMICA: To Finance National Housing Program


C A Y M A N  I S L A N D S

ABACAS INVESTMENTS: Placed Under Voluntary Liquidation
ANSBACHER (CAYMAN): Placed Under Voluntary Liquidation
ANSBACHER CORPORATE: Placed Under Voluntary Liquidation
COMTEL BRASILEIRA: Members Receive Wind-Up Report
FLAMING SPIRIT: Placed Under Voluntary Liquidation

LEVERAGED SHORT: Placed Under Voluntary Liquidation
TDC LIMITED: Placed Under Voluntary Liquidation
TESTUDO RE: Placed Under Voluntary Liquidation
TRANSAMERICA LONG/SHORT ET AL: Placed Under Voluntary Liquidation
TRIBECA ASIA: Placed Under Voluntary Liquidation

TRIBECA ASIAN EQUITY: Placed Under Voluntary Liquidation
TRIBECA ASIAN MACRO: Placed Under Voluntary Liquidation
TRIBECA ASIAN STRATEGIES: Placed Under Voluntary Liquidation
TRIBECA CONSUMER: Placed Under Voluntary Liquidation
TRIBECA EUROPEAN: Placed Under Voluntary Liquidation

TRIBECA GLOBAL: Placed Under Voluntary Liquidation
TRIBECA TECHNOLOGY: Placed Under Voluntary Liquidation
TRIBECA UTILITY: Placed Under Voluntary Liquidation
VAAM HOLDINGS: Placed Under Voluntary Liquidation
VENN GLOBAL: Placed Under Voluntary Liquidation


C O L O M B I A

ECOPETROL: Increases Interest in Fuerte Norte & Fuerte Sur Blocks


E C U A D O R

* ECUADOR: Gets Only One Marginal Oil Fields Development Offer


D O M I N I C A N  R E P U B L I C

* DOMINICAN REPUBLIC: 4 Largest Banks Cut Interest Rates


G R E N A D A

* GRENADA: Government Concerned About CL Financial Bailout


J A M A I C A

* JAMAICA: Currency Decline Increases National Debt to $1.1 Tril.


M E X I C O

VITRO SAB: Grace Period to Make US$44.8MM Payments Ends March 4
* Moody's Assigns 'Ba2' Rating on Municipality of Nicolas Romero


T R I N I D A D  &  T O B A G O

CL FINANCIAL: Govt. Bailout in Limbo; Parliament Yet to OK Plan


V E N E Z U E L A

CITGO PETROLEUM: S&P Puts 'BB' Rating on Negative Watch
PDVSA: Owes Over VEB1 Bil. to Contractors, Fedecamaras Pres. Says


                         - - - - -


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

BISS SA: Proofs of Claim Verification Due on March 2
----------------------------------------------------
Eduardo Gruden, the court-appointed trustee for BISS SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until March 2, 2009.

Mr. Gruden will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 10 in Buenos Aires, with the assistance of Clerk
No. 20, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Eduardo Gruden
         Presidente Roque Saenz Pena 1219
         Buenos Aires, Argentina


CASAF SA: Proofs of Claim Verification Due on April 22
------------------------------------------------------
Beatriz Stachevsky, the court-appointed trustee for Casaf SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until April 22, 2009.

Ms. Stachevsky will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 3 in Buenos Aires, with the assistance of Clerk
No. 6, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Beatriz Stachevsky
         avenida Cordoba 817
         Buenos Aires, Argentina


SOLUCIONES ECOLOGICAS: Proofs of Claim Verification Due on May 14
-----------------------------------------------------------------
Fernando Altare, the court-appointed trustee for Soluciones
Ecologicas SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until May 14, 2009.

Mr. Altare will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 14 in Buenos Aires, with the assistance of Clerk
No. 28, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Fernando Altare
         Piedras 153
         Buenos Aires, Argentina



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

FREMONT REINSURANCE: Court to Hear Wind-Up Petition on February 27
------------------------------------------------------------------
A petition to have Fremont Reinsurance Co. Ltd.'s operations wound
up will be heard before the High Court of Bermuda on Feb. 27,
2009, at 9:30 a.m.


LAZARD EUROPEAN: Creditors' Proofs of Debt Due on February 18
-------------------------------------------------------------
The creditors of Lazard European Opportunities, Ltd. are required
to file their proofs of debt by February 18, 2009, to be included
in the company's dividend distribution.

The company commenced liquidation proceedings on Feb. 2, 2009.

The company's liquidator is:

          Robin J. Mayor
          Clarendon House, Church Street
          Hamilton, Bermuda


LAZARD EUROPEAN: Members' Final Meeting Set for March 11
--------------------------------------------------------
The members of Lazard European Opportunities, Ltd. will hold their
final general meeting on March 11, 2009, at 9:30 a.m., at the
offices of Messrs. Conyers Dill & Pearman, Clarendon House, in
Church Street, Hamilton.

At the meeting, Robin J. Mayor, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


VANGUARD INSURANCE: Court to Hear Wind-Up Petition on February 27
-----------------------------------------------------------------
A petition to have Vanguard Insurance Company Ltd.'s operations
wound up will be heard before the High Court of Bermuda on
Feb. 27, 2009, at 9:30 a.m.




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

CAIXA ECONOMICA: To Finance National Housing Program
----------------------------------------------------
Caixa Economica Federal will finance Brazil's new national housing
program, which foresees the construction of 500,000 low-price
houses, Xinhua News reports, citing President Luiz Inacio Lula da
Silva.

According to the report, the program is expected to offer job
opportunities and help fight against the impact of the
international financial crisis in the country.

President Lula, the report relates, said abandoned buildings owned
by the federal government will also be converted into public
housing units.

Headquartered in Brasilia, Caixa Economica Federal --
http://www.caixa.gov.br-- is a Brazilian bank and one of the
largest government-owned financial institutions in Latin America.
Founded in Jan. 12, 1861, Caixa Economica is the second biggest
Brazilian bank, second only to Banco do Brasil, and offers
services in thousands of Brazilian towns, ranking third in Brazil
in number of branches.  The company has more than 32 million
accounts and controls more than US$170 billion.  It is responsible
for executing policies in the areas of housing and basic
sanitation, the administration of social funds and programs and
federal lotteries.

                          *    *    *

Caixa Economica Federal continues to carry a Ba2 foreign currency
deposit rating from Moody's Investors Service.  The rating was
assigned by Moody's in May 2008.



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

ABACAS INVESTMENTS: Placed Under Voluntary Liquidation
------------------------------------------------------
On December 12, 2008, the ordinary shareholder of Abacas
Investments Limited 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 company's dividend
distribution.

The company's liquidator is:

          Vijayabalan Murugesu
          c/o Ogier
          Queensgate House, South Church Street
          PO Box 1234, Grand Cayman KY1-1108
          Cayman Islands
          Telephone: 345 815 1481
          Facsimile: 345 945 6265


ANSBACHER (CAYMAN): Placed Under Voluntary Liquidation
------------------------------------------------------
At an extraordinary general meeting held on December 12, 2008, the
shareholders of Ansbacher (Cayman) Limited resolved to voluntarily
liquidate the company's business.

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

The company's liquidators are:

          Huw Moses
          Carlos de Serpa Pimentel
          Clifton House, 75 Fort Street
          PO Box 190, Grand Cayman KY1-1104


ANSBACHER CORPORATE: Placed Under Voluntary Liquidation
------------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Ansbacher Corporate Services (Cayman) Ltd.
resolved to voluntarily liquidate the company's business.

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

The company's liquidators are:

          Huw Moses
          Carlos de Serpa Pimentel
          Clifton House, 75 Fort Street
          PO Box 190, Grand Cayman KY1-1104


COMTEL BRASILEIRA: Members Receive Wind-Up Report
-------------------------------------------------
The members of Comtel Brasileira Inc. met on January 23, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         David Dyer
         P.O. Box 1984, Grand Cayman KY1-1104
         Telephone: (345) 949 8244
         Facsimile: (345) 949 5223


FLAMING SPIRIT: Placed Under Voluntary Liquidation
--------------------------------------------------
At an extraordinary general meeting held on December 12, 2008, the
shareholders of Flaming Spirit Ltd resolved to voluntarily
liquidate the company's business.

Only creditors who were able to file their proofs of debt by
January 31, 2009, will be included in the company's dividend
distribution.

The company's liquidators are:

         Connan Hill
         Bronwynne R. Arch
         P.O. Box 1109, Grand Cayman KY-1102
         Cayman Islands
         Telephone: 949-7755
         Facsimile: 949-7634


LEVERAGED SHORT: Placed Under Voluntary Liquidation
---------------------------------------------------
On December 2, 2008, the sole shareholder of Leveraged Short
Equity Index Hedge Hub Ltd. passed a written resolution that
voluntarily liquidates the company's business.

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


TDC LIMITED: Placed Under Voluntary Liquidation
-----------------------------------------------
At an extraordinary general meeting held on December 12, 2008, the
members of TDC Limited resolved to voluntarily liquidate the
company's business.

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

The company's liquidators are:

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


TESTUDO RE: Placed Under Voluntary Liquidation
----------------------------------------------
At an extraordinary general meeting held on December 1, 2008, the
shareholders of Testudo Re Cayman Ltd resolved to voluntarily
liquidate the company's business.

The company's liquidator is:

         Stuart Jessop
         5th Floor, Windward 3, Regatta Office Park
         West Bay Road, PO Box 2185
         Grand Cayman KY1-1105 Cayman Islands


TRANSAMERICA LONG/SHORT ET AL: Placed Under Voluntary Liquidation
-----------------------------------------------------------------
On December 8, 2008, the shareholders passed a resolution that
voluntarily wind up the operations of:

   -- Transamerica Long/Short Fund Ltd; and
   -- Transamerica Long/Short Trading Ltd.

The company's liquidators are:

         Jan Neveril
         Giles Kerley
         Maples Finance Limited, P.O. Box 1093GT
         Grand Cayman, Cayman Islands


TRIBECA ASIA: Placed Under Voluntary Liquidation
------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Tribeca Asia Pacific Equity Ltd. resolved to
voluntarily liquidate the company's business.

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

The company's liquidators are:

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


TRIBECA ASIAN EQUITY: Placed Under Voluntary Liquidation
--------------------------------------------------------
At an extraordinary general meeting held on December 12, 2008, the
shareholders of Tribeca Asian Equity Ltd. resolved to voluntarily
liquidate the company's business.

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

The company's liquidators are:

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


TRIBECA ASIAN MACRO: Placed Under Voluntary Liquidation
-------------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Tribeca Asian Macro Ltd. resolved to voluntarily
liquidate the company's business.

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

The company's liquidators are:

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


TRIBECA ASIAN STRATEGIES: Placed Under Voluntary Liquidation
------------------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Tribeca Asian Strategies Ltd. resolved to
voluntarily liquidate the company's business.

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

The company's liquidators are:

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


TRIBECA CONSUMER: Placed Under Voluntary Liquidation
----------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Tribeca Consumer Large Cap Long Short Ltd resolved
to voluntarily liquidate the company's business.

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

The company's liquidators are:

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


TRIBECA EUROPEAN: Placed Under Voluntary Liquidation
----------------------------------------------------
At an extraordinary general meeting held on December 12, 2008, the
shareholders of Tribeca European Strategies Ltd. resolved to
voluntarily liquidate the company's business.

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

The company's liquidators are:

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


TRIBECA GLOBAL: Placed Under Voluntary Liquidation
--------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Tribeca Global Investments Ltd. resolved to
voluntarily liquidate the company's business.

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

The company's liquidators are:

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


TRIBECA TECHNOLOGY: Placed Under Voluntary Liquidation
------------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Tribeca Technology Long Short Ltd. resolved to
voluntarily liquidate the company's business.

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

The company's liquidators are:

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


TRIBECA UTILITY: Placed Under Voluntary Liquidation
---------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Tribeca Utility Long Short Ltd. resolved to
voluntarily liquidate the company's business.

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

The company's liquidators are:

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


VAAM HOLDINGS: Placed Under Voluntary Liquidation
-------------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Vaam Holdings Corp. resolved to voluntarily
liquidate the company's business.

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

The company's liquidators are:

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


VENN GLOBAL: Placed Under Voluntary Liquidation
-----------------------------------------------
At an extraordinary general meeting held on December 11, 2008, the
shareholders of Venn Global Opportunities Fund Ltd resolved to
voluntarily liquidate the company's business.

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

The company's liquidators are:

         Giles Kerley
         Jan Neveril
         Maples Finance Limited, P.O. Box 1093GT
         Grand Cayman, Cayman Islands



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

ECOPETROL: Increases Interest in Fuerte Norte & Fuerte Sur Blocks
-----------------------------------------------------------------
Ecopetrol S.A. and BHP Billiton Petroleum Corporation, through its
Colombian subsidiary, executed an agreement to increase
Ecopetrol's interest in the Fuerte Norte and Fuerte Sur blocks,
both located in the Colombian Caribbean Ocean.

Pursuant to the terms of the agreement, BHP Billiton will assign
to Ecopetrol 25% of its participation in the two blocks, as a
result of which each company will have a 50% interest on the
blocks.

The Fuerte Norte and Fuerte Sur blocks correspond to the
hydrocarbons exploration and exploitation contracts executed in
April 2006 by BHP Billiton and Ecopetrol with the National
Hydrocarbons Agency (ANH) and the joint operation agreements
executed by the parties in June 2007.

The two blocks, with an approximate size of 954,050 hectares, are
part of the projects located offshore in the Colombian Caribbean
Ocean.

The assignment of the interest by BHP Billinton to Ecopetrol
requires approval by the ANH.

                        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: Gets Only One Marginal Oil Fields Development Offer
--------------------------------------------------------------
Colombian-Ecuadorian consortium Interpec -- composed of Ecuador's
PECS Iecontsa S.A. and Colombia's Integral de Servicios Tecnicos
S.A. -- was the only group to submit technical and economic
proposals to develop marginal oil fields in Ecuador's Amazonia
region, Mercedes Alvaro of Dow Jones Newswire reports.

The international tender, the report recounts, was called last
year and involved the Eno-Ron, Ocano-Pena-Blanca and Chanangue oil
marginal fields.

Government-owned Petroecuador will study the proposal and in 13
days announce whether it will award the fields, the report says.

According to the report, German Avila, legal representative of the
consortium, said Interpec plans to invest about US$30 million for
each field to obtain a maximum of 3,000 barrels of oil per day.

                         *     *     *

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-'.



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

* DOMINICAN REPUBLIC: 4 Largest Banks Cut Interest Rates
--------------------------------------------------------
Four of Dominican Republic's largest banks have announced interest
rate cuts, dr1 News reports.  The report relates Scotiabank, Banco
Leon, the BHD and Banco de Reservas have all cut their rates in
recent days.

According to the report, Bank Superintendent Rafael Camilo said
that it was time for rates to be cut given that the Central Bank's
monetary policy had been relaxed.  The rates would go back down to
their 2008 levels before beginning to spike, he said.

Mr. Camilo, the report notes, added that following the measures
taken by the Central Bank in December and the rate reductions, it
was only right to reduce bank interest rates in order to take some
of the pressure off the middle classes.

The report notes Mr. Camilo also said the move was aimed at
helping "energize" the economy.

                          *     *     *

According to Moody's Investors Service, the country continues to
carry a B2 foreign currency rating with a stable outlook, and a B2
local currency rating with stable outlook.



=============
G R E N A D A
=============

* GRENADA: Government Concerned About CL Financial Bailout
----------------------------------------------------------
The Grenada government and its citizens are keenly following the
takeover of one of the Caribbean's leading investment companies,
CL Financial, Oscar Ramjeet of Caribbean Net News reports.

As reported in the Troubled Company Reporter-Latin America on
February 5, 2009, Trinidad & Tobago Newsday said CL Financial
tapped London lawyers to seek advise regarding the bail out deal
hammered out between the conglomerate, Central Bank and the
Trinidad and Tobago government and which saw a memorandum of
understanding (MOU) being signed between the parties.

According to Newsday, the move by CL Financial comes just days
after the Government and group worked out a deal to keep its
subsidiary, Clico Life Insurance Co Ltd, afloat and is the latest
development in an already muddled transaction.

As part of the MOU, the report related, the Central Bank announced
that it will take control of CL Financial's bank, Clico Investment
Bank (CIB), and its investment arm Caribbean Money Market Brokers
(CMMB), by transferring its assets and deposits and liabilities to
wholly government-owned First Citizens Bank.

In exchange for this lifeline, CL Financial Group will divest its
assets, including its 55% share in Republic Bank and its share in
Methanol Holdings Trinidad Ltd to First Citizens, effectively
giving control of both entities to the Government, Newsday noted.

According to Caribbean Net News, the CL Group has shares in
Republic Bank, which operates in Grenada, British American
Insurance, CLICO, and the Grenada Broadcasting Network, GBN.

In a statement obtained by Caribbean Net News, the Ministry of
Finance in St George's said that it was aware of recent
developments with the CL Financial Group and was assessing the
impact and implications of the developments on all CL affiliates
including British American Insurance Companies and Republic Bank.

The government's primary concern was the impact of the
developments on policyholders and depositors in Grenada, the
Ministry said in the statement.

Caribbean Net News notes that the Ministry, headed by Finance
Minister Nazim Burke, was in contact with representatives of the
various CL related companies, and Eastern Caribbean Central Bank
(ECCB), which in turn is in communication with the Central Bank of
Trinidad and Tobago.

The Finance Ministry, Caribbean Net News says, noted that the
developments involving CL affected not just Grenada, but all
member states of the Organisation of Eastern Caribbean States
(OECS).  Because of this, the Ministry of Finance said that a
coordinated regional response was being considered, the same
report adds.



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

* JAMAICA: Currency Decline Increases National Debt to $1.1 Tril.
-----------------------------------------------------------------
Jamaica's debt increased $119 billion to $1.1 trillion since the
start of the fiscal year in April as the slide in the value of the
Jamaican dollar against the American currency since the latter
part of 2008 helped to push up the debt stock, Radio Jamaica
reports.

Citing information from the Ministry of Finance, the report
relates at the end of last year, Jamaica owed its overseas
creditors $510 billion while $608 billion was due in domestic
debt.

According to the report, the country's external debt, which stood
at $438 billion in April when the US dollar was being sold for
$71, was $72 billion higher in December when the currency was
trading in the region of $80.

                          *     *     *

According to Moody's Web site, the country continues to hold
a B1 foreign currency rating and a Ba2 local currency rating.



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

VITRO SAB: Grace Period to Make US$44.8MM Payments Ends March 4
---------------------------------------------------------------
Vitro, S.A.B. de C.V.'s deadline to make scheduled interest
payments of US$12.9 million dollars on its 8.625% Senior Notes due
2012 and US$31.9 million dollars on its 9.125% Senior Notes due
2017, expired February 2.

The company has a 30 day-grace period to make the interest
payments.  Non-payment within the 30-day period would constitute a
separate event of default under the indentures governing the 2012
Notes and the 2017 Notes.

Vitro said Jan. 29 that four of the counterparties have provided
notice, invoking the agreements governing derivative financial
instruments, stating that the failure of the company to pay an
aggregate of approximately US$293 million dollars -- including
approximately US$80 million held as cash collateral by such
Counterparties -- constitutes events of default under the DFI
Agreements, and have effectively demanded payment of such amounts.
As of December 31, 2008, the company  had a net loss of
approximately  US$358 million dollars, including a loss of
approximately US$33 million dollars related to the only open
derivative financial instruments covering natural gas contracts
from 2009-2011 with Pemex.

The events of default under the DFI Agreements result in an event
of default under the indentures governing the Senior Notes, as
described below and the 11.75% Senior Notes due 2013, enabling the
trustees of such Notes, or with respect to each of the 2012 Notes,
the 2017 Notes, and the 2013 Notes, the holders of 25% or more in
principal amount of such Notes, to declare the US$300 million
dollars principal amount (and accrued interest) of the 2012 Notes,
the US$700 million dollars principal amount (and accrued interest)
of the 2017 Notes, respectively and the US$216 million dollars
principal outstanding amount (and accrued interest) of the 2013
Notes, to be immediately due and payable.

The failure of the company to make the payments due under the DFI
Agreements also results in events of default under various other
financing agreements of the Company and its subsidiaries,
aggregating approximately US$81 million dollars and permitting
lenders under such facilities to declare borrowings under these
agreements to be immediately due and payable. In addition, the
Company and its subsidiaries are also in default under loan
agreements of approximately US$17 million dollars, and the Lenders
may declare such debt to immediately due and payable. As of
December 31, 2008, the Counterparties held an aggregate of
approximately US$85 million dollars (not including accrued
interest), as cash collateral for the obligations of the Company
and/or its subsidiaries under the DFI Agreements.

In light of these four Counterparties notices and in order to
preserve the necessary cash to continue operations, the company
said it does not intend to make scheduled payments due February 2,
2009 of interest of US$12.9 million dollars on its 8.625% Senior
Notes due 2012 and US$31.9 million dollars on its 9.125% Senior
Notes due 2017.  The failure of the Company to make the interest
payments within 30 days after the scheduled payment date would
constitute a separate event of default under the indentures
governing the 2012 Notes and the 2017 Notes.

Vitro intends to maintain its operations and continue its business
relationships with its customers and suppliers as it seeks to
achieve a restructuring of its indebtedness. As of December 31,
2008, the Company had unrestricted cash on hand and cash
equivalents of approximately US$103 million dollars, for operating
costs and expenses.

Vitro has initiated discussions with the Counterparties, its
bondholders and its creditors to achieve an organized financial
restructuring to improve its balance sheet and it continues to
analyze its alternatives in regard with the DFI Agreements. There
can be no assurance that the Company's discussions with the
Counterparties, its bondholders, and other creditors will be
successful. Vitro will provide information, from time to time, as
appropriate, about developments of these discussions with the
Counterparties, its bondholders, and its creditors.

The Company has adopted a significant and focused cost reduction
plan, which includes reducing the Company's workforce, canceling
airplane leasing contracts, divesture of non productive assets and
eliminating the outsourcing of non-strategic services, as part of
the measures that have been adopted by the Company to improve its
Balance Sheet. It is estimated that these initiatives, as well as
those aimed at reducing operating costs, drastically reducing
corporate expenses and improve efficiency, will represent annual
savings between US$80 and US$120 million dollars. Vitro is
confident that it is taking the right steps to position the
Company for the future.

                          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'.


* Moody's Assigns 'Ba2' Rating on Municipality of Nicolas Romero
----------------------------------------------------------------
Moody's assigned A2.mx (Mexican National Scale) and Ba2 (Global
Scale) ratings to the Municipality of Nicolas Romero Ps. 68
million loan from Interacciones.  The ratings are supported by the
use of a trust mechanism that isolates the loan's payment source
from the municipality, as well as the pledge as payment of federal
participation revenue that is expected to be sufficient to cover
debt service requirements even under severe stress scenarios.  The
loan ratings, nonetheless, are constrained by the municipality's
relatively low issuer ratings of Baa2.mx (Mexican National Scale)
and B1 (Global Scale), the added risk posed by the possibility
that minor events of an administrative nature could result in an
acceleration or early amortization of the loan and the presence of
a debt agreement with ISSEMyM.

The loan from Interacciones matures in June 2023 and is payable
under the terms of a loan contract and a Master Trust Agreement
(201) established with Banco Monex as trustee.  Interest on the
loan is paid monthly at a variable interest rate, while principal
will be paid in 176 monthly installments beginning in November
2008.  The ratings assigned herein are based on documentation
received by Moody's as of the rating assignment date.  Moody's
will review all of the definitive documents governing the loan
payable under the trust agreement.  In the event that the final
documentation differs significantly from the drafts submitted to
us, Moody's will assess what effects these differences may have on
the rating and act accordingly.

The key factors affecting the loan ratings are:

1.  The municipality's issuer rating of Baa2.mx (Mexican National
Scale) and B1 (global scale).  As the loan constitutes a direct
and binding obligation of the Municipality of Nicolas Romero, its
issuer ratings provide the floor to the loan by incorporating the
municipality's credit standing: one that features weak financial
performance; a high level of accounts payable with suppliers; a
weak economic base; and the large contingent liability posed by
the poor financial condition of the municipal water company
(SAPASNIR).  If federal participation revenue flowing to the trust
were insufficient to fund the payment and /or reserve accounts,
the municipality would be obligated to provide these amounts from
other available sources.

2. The use of a trust mechanism to which the municipality has
pledged a portion of its federal participation revenue.  With
funds deposited directly by the State into the trust in accordance
with an irrevocable instruction issued by the municipality, the
lender's interests are duly protected.  While the pledge of a
portion of the municipality's federal participation revenue is
regarded as weaker than a pledge of the rights to receive such
revenue, it still provides security above that of the issuer given
that the municipality does not have control of the assets
(participaciones) prior to their being deposited in the trust.

3. The pledge as payment source for the loan of 30% of the
municipality federal participation revenue, a pledge that is
expected to result in an ample level of debt service coverage even
under severe stress scenarios.  DSC is expected to ranged from a
minimum of 8.1 times at the outset in November 2008 and 14.6 times
on average for the life of the loan: levels that largely mitigate
the risk posed by a future increase in interest rates or by a drop
in participation revenues due to high seasonality or negative
quarterly or annual adjustments made by the federal treasury.

4. The bank's right to declare an acceleration or early
amortization of the loan for lack of compliance with relatively
minor obligations could introduce volatility and result in a harsh
penalty for relatively minor offenses.  This risk is enhanced by
the absence of a defined cure period to remedy events of non-
compliance.

5. The presence of a debt agreement with ISSEMyM signed in July
2007 whereby the municipality pledged its participation revenues
to pay its debt of Ps. 95.5 million with this institution.
Although this debt agreement does not have priority of payment
over the Interacciones loan, as it is not registered in the
state's debt registry.

6. The availability of a limited level of reserves for the payment
of interest and principal equal to 2.0% of the initial loan amount
or roughly an average of 2 months of debt service, and with the
obligation to maintain it at a minimum level of 1.5 months.  While
the level of reserves is relatively lower than that of other loans
rated by Moody's, it offers some protection to creditors from
unexpected fluctuations in the flow of funds or timing of the
transfer of funds.  This reserve is already fully funded and will
be maintained until maturity.



===============================
T R I N I D A D  &  T O B A G O
===============================

CL FINANCIAL: Govt. Bailout in Limbo; Parliament Yet to OK Plan
---------------------------------------------------------------
Trinidad and Tobago's plan to bailout CL Financial Ltd is on hold
as the Patrick Manning administration is unable to get the
parliamentary support for legislation needed for the rescue plan,
Caribbean360 News reports.

The report relates that amid the debate on the Central Bank
(Amendment) Bill and the Insurance (Amendment) Bill, backbencher
Dr. Keith Rowley and members of the Opposition were unable to
reach agreement with other government MPs.

According to the report, with one of those MPs, Dr. Rowley,
refusing to give his support and the Opposition asking for more
time to study the legislation, the government could not get enough
backing to get through with the government rescue plan.

As reported by Reuters on January 30, 2009, Trinidad and Tobago
seized control of Clico Investment Bank as part of a bid to bail
out a number of cash-strapped companies belonging to CL Financial.

According to Reuters, the central bank said all third party assets
and liabilities on the books of Clico and its Caribbean Money
Market Brokers unit would be transferred to state-owned First
Citizens Bank.   Central Bank Governor Ewart Williams, the same
report related, said the move is aimed to ensuring resources are
available to meet withdrawals by bank depositors and by
policyholders of the Clico Insurance company.

Reuters disclosed that Mr. Williams said the government's move was
prompted by liquidity concerns stemming from the impact of
methanol and real estate prices on the CL Financial's finances.

Meanwhile, CL Financial Chairman Lawrence Duprey, as cited by
Reuters, said the situation at Clico Investment Bank, Clico
Insurance and the British American Insurance company, another firm
it owns, "threaten the interest of depositors, policyholders and
creditors of these institutions."

Reuters noted that Mr. Williams said CL Financial had agreed to
divest additional assets to help fund the deficit.

Mr. Williams said the government will provide additional funds.
"Government funding will be provided in exchange for collateral
and an equity interest in Clico.  It will also act as a catalyst
for implementing a change in the current business model and
corporate governance structure of Clico," Reuters quoted Mr.
Williams as saying.

However, Caribbean360 News points out, unless the Bills are
passed, the bailout plan cannot go ahead.  The legislation is
needed to provide the required oversight for insurance companies
and will give regulators the authority to go ahead with the CLICO
takeover, the same report says.

Caribbean360 News relates that Dr. Rowley said he will not support
any Bill that puts billions more dollars in the hands of Calder
Hart, Chairman of the National Insurance Board (NIB) which will
take control of 55% of the shares in Republic Bank Limited on
behalf of the government.  He has recommended that there be a
holding company instead, the same report notes.

According to CaribbeanNet News, Prime Minister Patrick Manning, in
a debate, said CLICO is US$8 billion in the red, and that is far
from the final figure.

The Prime Minister, in his presentation, said he could not
understand how in this context that the Opposition Leader Basdeo
Panday is insisting, instead of government taking control of the
company, that the government lends to Clico.

CaribbeanNet News relates, citing The Trinidad Express, Prime
Minister Manning said the Opposition Leader was seeking to give
the impression that if anyone was culpable it was the government
of Trinidad and Tobago.

Meanwhile, Caribbean360 News notes that the Central Bank of
Barbados has committed financial support to CLICO Mortgage and
Finance Corporation (CMFC), one of the companies in the CL
Financial Group.

The Central Bank said that it would deposit up to BDS$10 million
(US$5 million) with CMFC and open a facility in the event that the
company needs access liquidity, the same report adds.

       Mr. Duprey Wants to Remain as CL Financial Head

Top United Kingdom attorneys representing Lawrence Duprey's CL
Financial Group have written to Finance Minister Karen Nunez-
Tesheira and Central Bank Governor Ewart Williams to settle
unresolved issues in Government's bailout package for the
distressed conglomerate, Trinidad & Tobago Express reports.

According to the report, one of the issues to be hammered out
would be if Mr. Duprey stayed on as chairman of CL Financial.

Mr. Duprey told the Express in an interview that he would step
down as CLICO chairman, but had no reason to remove himself as
chairman of the CL Financial Group.

                        About CL Financial

CL Financial is the largest privately held conglomerate in
Trinidad and Tobago and one of the largest privately held
corporations in the entire Caribbean.  Founded as an insurance
company, Colonial Life Insurance Company (CLICO) by Cyril Duprey,
it was expanded into a diversified company by his nephew, Lawrence
Duprey.  CL Financial is now one of the largest local
conglomerates in the region, encompassing over 65 companies in 32
countries worldwide with total assets standing at roughly US$100
billion.



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

CITGO PETROLEUM: S&P Puts 'BB' Rating on Negative Watch
-------------------------------------------------------
Standard & Poor's Ratings Services said that it took several
rating actions on companies in the refining industry following the
completion of a sector review.  Liquidity concerns and S&P's
expectations that industry conditions could remain weak for 2009
and possibly beyond were key factors behind the rating actions.
S&P expect margins to remain thin and product demand weak.

                         Rating Actions

      Sunoco Inc. To BBB/Negative/A-3 From BBB/Stable/A-2

The negative outlook reflects S&P's concerns that refining margins
will remain weak in 2009 and possibly well beyond.  Furthermore,
Sunoco's limited ability to process disadvantaged crudes, its
geographic concentration in the highly competitive PADD I region,
and its significant near-term regulatory and required capital
expenditures place the company at a relative disadvantage.  Only
partially offsetting these concerns are the company's growing and
more stable coke and logistics business units, as well as its
moderate debt.  Despite the negative outlook on Sunoco, S&P
affirmed the 'BBB' rating and kept the stable outlook on the
company's partially owned subsidiary, Sunoco Logistics Partners
L.P.

  CITGO Petroleum Corp. To BB/Watch Neg/-- From BB/Negative/--

The CreditWatch placement reflects S&P's concerns about CITGO's
tight liquidity.  Certain technical restrictions in the company's
$450 million account receivable securitization program have
significantly restricted availability and usage.  The company is
seeking approval to amend the facility, which would allow CITGO to
considerably enhance its liquidity position.  S&P expects the
amendment to go through but, given the thin liquidity levels
currently, any delay or outcomes contrary to S&P's expectations
could leave the company vulnerable to unexpected calls on
liquidity.  S&P could lower the rating by more than one notch if
the amendment is unsuccessful or delayed further than expected.
However, if the amendment is approved as proposed, S&P could
affirm CITGO's current ratings and outlook.

     United Refining Co. To B/Negative/-- From B/Stable/--

The outlook revision reflects S&P's expectation of weak financial
performance and credit metrics for 2009 and possibly beyond.
Interest expense coverage is likely to remain weak at 2x or lower,
and adjusted debt leverage could continue to exceed 7x.  Adequate
liquidity provided primarily by its US$130 million credit
facility, which was near full availability as of Jan. 12, 2009,
supports the ratings.

Western Refining Inc. To B+/Negative/-- From B+/Watch Neg/--

The rating action reflects strong results in the second half of
2008 and S&P's expectations for improved first-quarter results
versus year-ago levels.  Hence, Western should have an adequate
covenant cushion as it continues to pursue debt reduction through
asset sales.  In particular, near-term compliance with its debt
leverage covenant, 5x as of March 31 and 4.75x as of June 30,
should be achievable.  Nevertheless, the negative outlook reflects
the potential for a downgrade if Western fails to deleverage, or
if the cushion to its Sept. 30 debt leverage covenant of 4.5x
becomes thin.

                          Ratings List

                   Outlook Action/Downgraded

                           Sunoco Inc.

                           To                  From
                           --                  ----
  Corporate credit rating  BBB/Negative/A-3    BBB/Stable/A-2

                         Outlook Action

                      United Refining Co.

                             To                  From
                             --                  ----
    Corporate credit rating  B/Negative/--       B/Stable/--

                       CreditWatch Action

                      CITGO Petroleum Corp.

                             To                  From
                             --                  ----
Corporate credit rating     BB/Watch Neg/--     BB/Negative/--

                     Western Refining Inc.

                            To                  From
                            --                  ----
Corporate credit rating     B+/Negative/--      B+/Watch Neg/--


      N.B. -- This does not include all ratings affected.


PDVSA: Owes Over VEB1 Bil. to Contractors, Fedecamaras Pres. Says
-----------------------------------------------------------------
Petroleos de Venezuela ("PDVSA") owes over a billion bolivares to
some 230 contractors and is endangering the economic stability of
the suppliers with a potential loss of around 25,000 jobs, Pr-
Inside.com reports, citing Zulia State Federation of Chambers of
Commerce & Industry ("Fedecamaras") President Nestor Borjas.

"At this time there are 230 oil contractors in Zulia State whose
existence is endangered because PDVSA owes them more than a
billion bolivares and as a consequence there are some 25,000
endangered.  We could see a great fall in the Zulia State economy
since at least 50% of regional GDP depends on oil revenues,"  Mr.
Borjas was quoted by the report as saying.

Mr. Borjas, as cited by the report, emphasized that Zulia
"contributes 17% of national GDP and any political and/or economic
abuse of Zulia companies may have serious effects on the nation's
economy."

As reported in the Troubled Company Reporter-Latin America on
Feb. 3, 2009, Bloomberg News said PDVSA will begin paying off
debts owed to service providers after contractors idled drilling
rigs.  The same report related the company is also
beginning talks with oil field service providers to lower their
rates amid the plunge in oil prices in the second half of 2008.

According to TCRLA report on Jan. 20, 2009, citing Dow Jones
Newswires, PDVSA's debt to its suppliers may have risen by as much
as US$3 billion as it struggles to pay its bills as cash flow
dries up due to rock-bottom oil prices.

Dow Jones Newswires said the company has fallen several months
behind on payments to oil service companies and other suppliers
that keep its oil business running, a source of concern for many
in the industry.

As of September, the report related bills owed to suppliers stood
at US$7.86 billion, a 39% jump from the same nine-month period in
2007.

Dow Jones added French oil services company Schlumberger Ltd.
("SLB") and U.S. firm Halliburton Co. ("HAL") are now owed a
combined US$800 million to US$1 billion by some estimates.

                          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.

                        *     *     *

Petroleos de Venezuela S.A. continues to carry a 'BB-' long-term
corporate credit rating from Standard & Poor's with stable
outlook.  The rating was affirmed by S&P in April 2008.



                            ***********

Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.

Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marie Therese V. Profetana, Marites O. Claro, Joy
A. Agravente, Pius Xerxes V. Tovilla, Rousel Elaine C. Tumanda,
Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman,
Editors.


Copyright 2008.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


           * * * End of Transmission * * *