/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090224.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 Tuesday, February 24, 2009, Vol. 9, No. 38 Headlines A N T I G U A & B A R B U D A STANFORD INT'L BANK: ECCB Takes Over BOA Amid US$8-BB Fraud Case STANFORD INT'L BANK: LIAT Says Owner Doesn't Own Shares in Airline A R G E N T I N A 2MINDS SERVICIOS: Asks for Opening of Preventive Contests AEROPOL SA: Asks for Opening of Preventive Contests COAMAR SA: Asks for Opening of Preventive Contests EL MILAGRO: Proofs of Claim Verification Due on March 2 GRUPO ASUNCION: Ceases Servicing of Payments JALIL HERMANOS: Proofs of Claim Verification Due on April 17 B A R B A D O S FOUR SEASONS: Halts Hotel Construction; 700 Jobs Affected B E R M U D A BBL LIMITED: Creditors' Proofs of Debt Due on March 6 BBL LIMITED: Members' Final General Meeting Set for March 27 BERMUDA ROCK: Creditors' Proofs of Debt Due on March 6 BERMUDA ROCK: Member to Receive Wind-Up Report on March 25 CONOCO SERVICES: Creditors' Proofs of Debt Due on March 6 CONOCO SERVICES: Members to Receive Wind-Up Report on March 27 CONOCO SOUTH: Creditors' Proofs of Debt Due on March 6 CONOCO SOUTH: Members to Receive Wind-Up Report on March 27 B R A Z I L BANCO ITAU: Cuts 100 Jobs From Brokerage & Investment Bank Units GERDAU SA: Weak Q4 Results Won't Affect Moody's 'Ba1' Rating GAFISA SA: Moody's Affirms Corporate Family Rating at 'Ba2' C A Y M A N I S L A N D S CRAFT 2003-2: Members Receive Wind-Up Report CRAFT JSS: Members Receive Wind-Up Report C-SQUARED: Members Receive Wind-Up Report FLP HOLDINGS: Members Receive Wind-Up Report JUPITER HIGH: Members Receive Wind-Up Report KAILUA INVESTMENT: Members Receive Wind-Up Report KOREA FIRST: Members Receive Wind-Up Report LANCER FUNDING: Members Receive Wind-Up Report ML CBO: Members Receive Wind-Up Report MORTGAGED ASSET: Members Receive Wind-Up Report MOVIDA ASSET: Members Receive Wind-Up Report MYSTIC POINT: Members Receive Wind-Up Report NEW INVESTMENTS: Members Receive Wind-Up Report NIEUW HAARLEM: Members Receive Wind-Up Report NORTHLAND FUNDING: Members Receive Wind-Up Report PPB INTERNATIONAL: Members Receive Wind-Up Report PINNACLE PEAK: Members Receive Wind-Up Report SENECA CBO: Members Receive Wind-Up Report STACK 2007-1: Members Receive Wind-Up Report STONEY LANE: Members Receive Wind-Up Report * CAYMAN ISLANDS: Gov't to Borrow US$185 Mln for 2009 Projects C H I L E AUTOPISTA DEL MAIPO: Moody's Sets Global Rating at 'Baa3' G U A D E L O U P E * GUADELOUPE: France Asks Unions & Employers to Accept Aid Package J A M A I C A AIR JAMAICA: Asks Foreign Creditors Not to Seize Assets AIR JAMAICA: To Sell Two Planes to Raise Funds for Business Plan AIR JAMAICA: To Keep Current Cargo Services Despite Flight Cuts CASH PLUS: Court Appoints Hugh Wildman as Bankruptcy Trustee GOODYEAR TIRE: Posts US$16 Mln Loss on Jamaican Unit Liquidation M E X I C O CITIGROUP INC: Committed to its Mexican Unit, CEO Pandit Says FUNDACION INTEGRAL: S&P Assigns 'BB-' Counterparty Credit Rating RINKER MATERIALS: Moody's Downgrades Senior Notes to 'B1' T R I N I D A D & T O B A G O CL FINANCIAL: May Use Cash from Rum Distillery to Pay Loan Balance HCU: Liquidator Says Company Assets Still Unsold X X X X X X X X * Large Companies With Insolvent Balance Sheets - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L BANK: ECCB Takes Over BOA Amid US$8-BB Fraud Case ---------------------------------------------------------------- Eastern Caribbean Central Bank (“ECCB”) took over Stanford Group- owned Bank of Antigua (“BOA”) on Feb. 22, amid a US$8 billion fraud charge againts its owner, Robert Allen Stanford, and his companies, Trinidad and Tobago Express reports. As reported in the Troubled Company Reporter-Latin America on February 19, 2009, the U.S. Securities and Exchange Commission charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include Antiguan-based Stanford International Bank Limited (SIBL), Houston-based broker-dealer and investment adviser Stanford Group Company (SGC), and investment adviser Stanford Capital Management. The SEC also charged SIBL chief financial officer James Davis as well as Laura Pendergest- Holt, chief investment officer of Stanford Financial Group (SFG), in the enforcement action. According to the Express, the Monetary Council of the ECCB completed all relevant legal and other arrangements for the Bank of Antigua to open its doors as a new Eastern Caribbean Amalgamated Bank (ECAB). Caribbean Net News relates the development in the Organisation of Eastern Caribbean States (“OECS”) banking and financial system began unfolding on Friday afternoon as depositors were desperately queuing up at branches to withdraw funds from the Bank of Antigua that held combined assets and deposits of EC$700 million. The Express says the Monetary Council of the ECCB approved a new ownership plan, involving five indigenous private and state-owned banks within the OECS, to form the new Eastern Caribbean Amalgamated Bank. The indigenous banks are: * St Kitts, Nevis and Anguilla National Bank; * Eastern Caribbean Financial Holdings (Bank of St Lucia); * Antigua Commercial Bank; * National Commercial Bank of St Vincent and the Grenadines; and * National Bank of Dominica. About Bank of Antigua The Bank of Antigua (BOA) –- http://www.bankofantigua.com/–- was incorporated on February 10, 1981 in St. John's, and opened its doors for business in November of that year. The bank is a member of Stanford Financial Group, after the group acquired the bank in December 1990. About SIBL Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. STANFORD INT'L BANK: LIAT Says Owner Doesn't Own Shares in Airline ------------------------------------------------------------------ LIAT has denied rumors that Robert Allen Standford and his companies has stakes in the airline, Caribbean Net News reports. “The Stanford Financial Group has no stake or interest in LIAT and has never had a stake or interest in the company,” the report quoted LIAT Chief Executive Officer Mark Darby as saying. As reported in the Troubled Company Reporter-Latin America on February 19, 2009, the U.S. Securities and Exchange Commission charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include Antiguan-based Stanford International Bank Limited (SIBL), Houston-based broker-dealer and investment adviser Stanford Group Company (SGC), and investment adviser Stanford Capital Management. The SEC also charged SIBL chief financial officer James Davis as well as Laura Pendergest- Holt, chief investment officer of Stanford Financial Group (SFG), in the enforcement action. According to Caribbean Net News, Mr. Darby said LIAT is 90% owned by governments of Antigua and Barbuda, Barbados and St Vincent and the Grenadines, while the remaining 10% is owned by other regional governments and minority shareholders. Mr. Darby, as cited by Carribean Net News, clarified: –- LIAT held talks for a possible merger with Stanford Financial Group in 2006 and 2007 but no transaction was ever concluded; –- LIAT is not in receipt of any loan from Mr. Stanford or the Stanford Financial Group; and –- LIAT did not take over or acquire formerly-owned Stanford airlines, Caribbean Star or Caribbean Sun. LIAT merely acquired some of the assets of these former airlines including Caribbean Star aircraft leases which were added. About LIAT Headquartered in Antigua and Barbuda, LIAT -- http://www.liatairline.com -- is a passenger airline with a fleet of Dash 8 turboprop aircraft. The carrier transports passengers to more than 20 destinations in the Caribbean. The company has expanded by buying key operating assets of former rival Caribbean Star, including additional Dash 8s. Before the acquisition was completed in November 2007, LIAT and Caribbean Star had formed a commercial alliance that integrated many of their operations. Among LIAT's major shareholders are the governments of several Caribbean nations, including Antigua, Barbados, the Grenadines, and St. Vincent. About SIBL Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. ================= A R G E N T I N A ================= 2MINDS SERVICIOS: Asks for Opening of Preventive Contests --------------------------------------------------------- 2Minds Servicios Informaticos S.R.L. asked for the opening of the preventive contest before the National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 10. The company stopped servicing ita payments on April 15, 2008. AEROPOL SA: Asks for Opening of Preventive Contests --------------------------------------------------- Aeropol S.A. asked for the opening of the preventive contest before the National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 50. The company stopped servicing ita payments on Feb. 11, 2009. COAMAR SA: Asks for Opening of Preventive Contests -------------------------------------------------- Coamar S.A. asked for the opening of the preventive contest before the National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 27. EL MILAGRO: Proofs of Claim Verification Due on March 2 ------------------------------------------------------- The court-appointed trustee for El Milagro S.H.'s reorganization proceedings, will be verifying creditors' proofs of claim until March 2, 2009. GRUPO ASUNCION: Ceases Servicing of Payments -------------------------------------------- Grupo Asuncion S.R.L. Stopped servicing its payments on June 2008. The company declared liabilities of US$471.200 before the National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11. JALIL HERMANOS: Proofs of Claim Verification Due on April 17 ------------------------------------------------------------ The court-appointed trustee for Jalil Hermanos S.C.C.'s reorganization proceedings, will be verifying creditors' proofs of claim until April 17, 2009. =============== B A R B A D O S =============== FOUR SEASONS: Halts Hotel Construction; 700 Jobs Affected --------------------------------------------------------- Four Seasons hotel in Barbados unexpectedly halted contruction at its Black Rock site on Feb. 19, leaving 700 workers with no jobs, Oscar Ramjeet of Caribbean Net News reports. The workers, the report relates, were seen leaving the Black Rock site, along with equipment being towed away by major contractors. According to the report, an unnamed source said the Royal Bank of Scotland and Iceland-owned Kaupthing Singer and Friedlander, which together had been in discussion with the developers on loan financing for a major part of the US$200 million project, had been experiencing some challenges as a result of the global economic turmoil, and that might be one of the reasons for the shutdown. The Four Seasons project has 22 investors -- 20 foreign and two local, the report says. Four Seasons Hotels -- http://www.fourseasons.com-- manages some 75 luxury hotels and resorts in more than 30 countries. Most properties are operated under the Four Seasons name, but some are Regent hotels. It has ownership interests in only about half of its properties, having shifted from a hotel owner to a hotel operator in the 1990s. In 2007 Four Seasons Hotels board members took the company private. ============= B E R M U D A ============= BBL LIMITED: Creditors' Proofs of Debt Due on March 6 ----------------------------------------------------- The creditors of BBL Limited are required to file their proofs of debt by March 6, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 18, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda BBL LIMITED: Members' Final General Meeting Set for March 27 ------------------------------------------------------------ The members of BBL Limited will hold their final general meeting on March 27, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Feb. 18, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda BERMUDA ROCK: Creditors' Proofs of Debt Due on March 6 ------------------------------------------------------ The creditors of Bermuda Rock Fund Ltd. are required to file their proofs of debt by March 6, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 19, 2009. The company's liquidator is: Michael Schroter Maxwell R. Roberts Building 1 Church Street Hamilton, Bermuda BERMUDA ROCK: Member to Receive Wind-Up Report on March 25 ---------------------------------------------------------- The sole member of Bermuda Rock Fund Ltd. will hold the final general meeting on March 25, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Feb. 19, 2009. The company's liquidator is: Michael Schroter Maxwell R. Roberts Building 1 Church Street Hamilton, Bermuda CONOCO SERVICES: Creditors' Proofs of Debt Due on March 6 --------------------------------------------------------- The creditors of Conoco Services Ltd. are required to file their proofs of debt by March 6, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda CONOCO SERVICES: Members to Receive Wind-Up Report on March 27 -------------------------------------------------------------- The members of Conoco Services Ltd. will hold the final general meeting on March 27, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Feb. 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda CONOCO SOUTH: Creditors' Proofs of Debt Due on March 6 ------------------------------------------------------ The creditors of Conoco South Sokang Ltd. are required to file their proofs of debt by March 6, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda CONOCO SOUTH: Members to Receive Wind-Up Report on March 27 ----------------------------------------------------------- The members of Conoco South Sokang Ltd. will hold the final general meeting on March 27, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Feb. 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda =========== B R A Z I L =========== BANCO ITAU: Cuts 100 Jobs From Brokerage & Investment Bank Units ---------------------------------------------------------------- Banco Itau Holding Financeira SA (formerly known as Banco Itau SA) fired about 100 workers from its brokerage and investment banking units after suffering from a strong contraction since the beginning of the international crisis, Fabiola Moura of Bloomberg News reports. The company in an email statement obtained by the news agency said: “It was necessary to carry out an adjustment in the investment bank and brokerage structures.” As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2009, Reuters said Brazil's central bank approved the planned merger between financial operations of Banco Itau S.A. and Uniao de Bancos Brasileiros S.A. ("Unibanco"). According to the TCRLA report, the joint-venture provides for a corporate restructuring, which will cause the migration of the current shareholders of Unibanco Holdings S.A. ("Unibanco Holdings") and Unibanco to a public listed company to be called Itau Unibanco Holding S.A., currently Banco Itau Holding Financeira S.A. ("Itaú Unibanco Holding"), which will be made through a merger of shares. Itau Unibanco Holding will have Itausa and the controlling shareholders of Unibanco Holdings control to be exerted by means of a non-financial institution to be incorporated for the purpose of this transaction. About Uniao de Bancos Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. As of Feb. 23, 2009, the bank continues to carry Moody's Investors Service's Ba2 foreign currency deposit rating. About Banco Itau Banco Itau Holding Financeira S.A. -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA(Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. The bank has offices in Miami, New York, Hongkong, Lisbon, Luxembourg, Bahamas, the Cayman Islands, Chile and Uruguay. As of Feb. 23, 2009, the company continues to carry Fitch's C individual rating. GERDAU SA: Weak Q4 Results Won't Affect Moody's 'Ba1' Rating ------------------------------------------------------------ Moody's Investors Service commented that weaker than expected fourth quarter 2008 results of Gerdau S.A. and of its subsidiary Gerdau Ameristeel Corporation will have no immediate impact on their Ba1 Corporate Family Ratings or their stable outlook. Moody's still anticipates that the group's leverage will remain within a tolerable range for the current ratings on a full-year 2009 basis and liquidity is strong at both companies. Ameristeel is rated the same as Gerdau, reflecting Moody's view of high correlation based on the strong support provided by Gerdau and its Brazilian subsidiaries to the North American subsidiary. Despite the weak fourth quarter performance in North America and Latin America (ex-Brazil), Moody's expect some improvement in the group's operating margins in the first quarter of 2009 as benefits from operational adjustments materialize. On a consolidated basis, leverage should remain manageable and liquidity strong due to lower capital expenditures and dividends. However, Moody's notes that a prolonged steel industry slow down similar to that experienced during the last months of 2008 could cause covenant headroom to tighten substantially over the coming quarters. Please see Moody's Issuer Comment for further detail at Moodys.com. The last rating action was on December 19, 2008, when the Ba1 ratings of Gerdau and Ameristeel were affirmed and the outlook for all ratings was changed to stable from positive. Gerdau Ameristeel, headquartered in Tampa, Florida, serves customers in the U.S. and Canada through a vertically integrated network of 19 minimills, 23 scrap recycling facilities and 60 downstream operations. The company had net revenues of US$ 8.5 billion in 2008. Gerdau S.A., headquartered in Porto Alegre, Brazil, is the largest long steel producer in the Americas, with consolidated net revenues of approximately US$ 23 billion in 2008. GAFISA SA: Moody's Affirms Corporate Family Rating at 'Ba2' ----------------------------------------------------------- Moody's has affirmed Gafisa's Ba2 local currency corporate family rating, but changed the outlook to negative from stable. At the same time, Gafisa's Brazilian national scale corporate family rating was downgraded to A1.br from Aa3.br. The rating action was primarily prompted by Moody's view that Gafisa's liquidity is weaker following the use of BRL230 million of cash to capitalize Tenda, its subsidiary in the low income segment. This reduction in Gafisa's cash level is likely to cause a breach of Moody's liquidity trigger for downward pressure on its rating, which requires the maintenance of cash and cash equivalents at Gafisa sufficient to cover twice the last quarter's negative cash flow from operations (a deficit of BRL232 million in Q3 08). For Moody's analysis of Gafisa's current rating and outlook, Moody's have considered Gafisa's corporate family rating without Tenda since Moody's expect Tenda to operate on a stand-alone basis going forward, without further financial support from Gafisa, but also without any dividend contribution to Gafisa. However, if Tenda were to face financial difficulties, Moody's believes that there is a risk that Gafisa would financially support Tenda due to the image risk and the importance of the low income segment to Gafisa's long term growth plans. The rating action also factors in current market conditions in terms of more restricted liquidity and higher cost of financing combined with a weaker macro-economic environment for Brazil. The weaker economy is impacting consumer confidence, which could result in slower sales and weaker margins if Gafisa responds by reducing prices. The current weaker economic environment combined with a likely higher cost of debt could challenge Gafisa's ability to generate FFO / Total Debt (cash flow from operations before working capital changes divided by total gross debt) above 15%, which is another trigger for downward pressure on Gafisa's rating. On October 21, 2008, Gafisa acquired 60% of Tenda with a capitalization of BRL 230 million in cash at Tenda and merged the company with its pre-existing subsidiary focusing on the lower- income housing segment, FIT. Tenda is focused on the lower-income housing segment and already experienced higher cancellation rates in 2008, partly due to its weaker underwriting standards. While Moody's expect Tenda to benefit over time from Gafisa's ownership in terms of better financial expertise and more rigorous credit approval standards, a more severe economic downturn in Brazil that leads to significantly higher unemployment could drive up Tenda's cancellation rates and even Gafisa's to a lesser extent, impacting their overall credit profile. Gafisa's Ba2 rating continues to be supported by its solid market position with a solid brand and long track record of operations since 1954, its diversified product portfolio and geographic diversification of its operations. The rating further reflects Gafisa's experienced and conservative management team, which has enabled the company to acquire 73% of its land bank through swap agreements, preserving most of its cash for working capital needs. Moody's further recognize the faster-growth opportunities at Tenda due to the concentration of the Brazilian housing deficit among lower-income families and the government incentives and planned programs to support homebuilders more focused on lower-income housing. Gafisa's Ba2 local currency corporate family rating reflects its global default and loss expectation, while the A1.br national scale rating reflects the standing of Gafisa's credit quality relative to its domestic peers. Moody's National Scale Ratings are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs in Brazil are designated by the ".br" suffix. Issuers or issues rated A1.br demonstrate strong creditworthiness relative to other domestic issuers. NSRs differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country. Gafisa's ratings would likely be downgraded if there is significant deterioration in the quality of Gafisa's receivables or if the company is unable to reduce its working capital needs and improve cash flow from operations in a slowing economic environment. A downgrade could also be triggered by further capital injections or evidence of financial support to Tenda. Quantitatively, Gafisa's rating would likely be downgraded if its Debt to Capitalization is sustained above 50% (48% for LTM ended September 30, 2008) or if FFO / Debt drops below 15% (25% for LTM ended September 30, 2008). A downgrade could also be triggered by a deterioration in Gafisa's liquidity profile due to slower than expected disbursements from credit lines that the company has available with commercial banks through the Housing Finance System (Sistema Financeiro de Habitacao). A stabilization of Gafisa's rating outlook would require the company to improve its liquidity profile and be able to sustainably cover at least two quarters of working capital needs with its cash balance or other committed sources of liquidity and maintain FFO / Debt above 15%. Moody's last rating action on Gafisa was on August 13, 2008, when a Ba2 local currency corporate family rating and a Aa3.br Brazilian national scale corporate family rating were assigned with a stable outlook. Gafisa's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Gafisa's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. Headquartered in São Paulo, Brazil and founded in 1954, Gafisa is one of the largest fully integrated homebuilders in the country ranking second in terms of revenues and volumes, and also one of the most diversified in terms of product offering to different income levels and geographies, operating in 20 different states. ========================== C A Y M A N I S L A N D S ========================== CRAFT 2003-2: Members Receive Wind-Up Report -------------------------------------------- The members of CRAFT 2003-2, Ltd. met on January 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Chris Marett Emile Small Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands CRAFT JSS: Members Receive Wind-Up Report ----------------------------------------- The members of CRAFT JSS 2003-3, Ltd. met on January 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Chris Marett Emile Small Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands C-SQUARED: Members Receive Wind-Up Report ----------------------------------------- The members of C-Squared CDO Ltd. met on January 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Emile Small Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands FLP HOLDINGS: Members Receive Wind-Up Report -------------------------------------------- The members of FLP Holdings Limited met on January 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Prashant Veturkar Andrew Millar Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands JUPITER HIGH: Members Receive Wind-Up Report -------------------------------------------- The members of Jupiter High Grade CDO VII, Ltd. met on January 22, 2009, and received the liquidators' report on the company's wind- up proceedings and property disposal. The Liquidators can be reached at: Martin Couch Emile Small Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands KAILUA INVESTMENT: Members Receive Wind-Up Report ------------------------------------------------- The members of Kailua Investment Limited met on January 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Jan Neveril Giles Kerley Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands KOREA FIRST: Members Receive Wind-Up Report ------------------------------------------- The members of Korea First Mortgage No. 1 Limited met on Jan. 22, 2009, and received the liquidators' report on the company's wind- up proceedings and property disposal. The Liquidators can be reached at: Prashant Veturkar Jan Neveril Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands LANCER FUNDING: Members Receive Wind-Up Report ------------------------------------------- The members of Lancer Funding II, Ltd. met on Jan. 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Andrew Millar Prashant Veturkar Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands ML CBO: Members Receive Wind-Up Report -------------------------------------- The members of ML CBO XXIV (Cayman) Ltd. met on Jan. 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Emile Small Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands MORTGAGED ASSET: Members Receive Wind-Up Report ----------------------------------------------- The members of Mortgaged Asset Return Investment Opportunities Corporation met on Jan. 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Jan Neveril Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands MOVIDA ASSET: Members Receive Wind-Up Report -------------------------------------------- The members of Movida Asset Co., Ltd met on Jan. 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Carl Gosselin Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands MYSTIC POINT: Members Receive Wind-Up Report -------------------------------------------- The members of Mystic Point CDO, Ltd. met on Jan. 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Carl Gosselin Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands NEW INVESTMENTS: Members Receive Wind-Up Report ----------------------------------------------- The members of New Investments Limited met on Jan. 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Jan Neveril Bobby Toor Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands NIEUW HAARLEM: Members Receive Wind-Up Report --------------------------------------------- The members of Nieuw Haarlem CDO Ltd. met on Jan. 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Carlos Farjallah Carl Gosselin Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands NORTHLAND FUNDING: Members Receive Wind-Up Report ------------------------------------------------- The members of Northland Funding I Ltd met on Jan. 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Chris Marett Onson Mukwedeya Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands PPB INTERNATIONAL: Members Receive Wind-Up Report ------------------------------------------------- The members of PPB International I Ltd. met on Jan. 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Jan Neveril Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands PINNACLE PEAK: Members Receive Wind-Up Report --------------------------------------------- The members of Pinnacle Peak CDO II, Ltd. met on Jan. 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Jan Neveril Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands SENECA CBO: Members Receive Wind-Up Report ------------------------------------------ The members of Seneca CBO IV, Limited met on Jan. 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Andrew Millar Carl Gosselin Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands STACK 2007-1: Members Receive Wind-Up Report -------------------------------------------- The members of Stack 2007-1 Ltd. met on Jan. 22, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Chris Marett Carl Gosselin Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands STONEY LANE: Members Receive Wind-Up Report ------------------------------------------- The members of Stoney Lane Funding II Ltd. met on Jan. 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Emile Small Maples Finance Limited P.O. Box 1093GT Grand Cayman Cayman Islands * CAYMAN ISLANDS: Gov't to Borrow US$185 Mln for 2009 Projects -------------------------------------------------------------- Cayman Islands' government will secure US$185 million in long-term financing to fund requirements for its 2008/09 budgetary year capital expenditure and investment projects, Cayman Net News reports. The government, the report relates, will issue a bond in the international market to be floated by Scotiabank and Trust (Cayman) Ltd and US-based JP Morgan. According to the report, Cayman-based Scotiabank Trust will coordinate the bond issue and JP Morgan will be the lead negotiator for the public offering. The bonds, the report notes, are to carry a 15 or 20-year repayment condition, and should be completed before June 30, 2009. Meanwhile, Cayman Net News relates that the government's bridge financing has been secured from a consortium of two local retail banks - Scotiabank and Royal Bank of Canada – and the government has already drawn down US$90 million, with an option to withdraw another US$95 million, all of which is to be repaid when the bonds are successfully floated. Cayman Net News says repayment will be made in equal quarterly installments, with interest also paid quarterly but on the reducing balance of money owed. Government reserves the option to pay interest on a fixed or floating rate basis, the report adds. ========= C H I L E ========= AUTOPISTA DEL MAIPO: Moody's Sets Global Rating at 'Baa3' --------------------------------------------------------- Moody's Investors Service has published the underlying rating of Baa3 (Global Scale, local currency) on Autopista del Maipo. The last rating action was taken on December 18, 2006 when the Series B bonds were assigned a rating that reflected the claims paying ability of MBIA at that time. Moody's ratings on securities that are backed by a financial guarantor are generally maintained at a level equal to the higher of (a) the guarantor or (b) the published underlying rating. The current rating on MBIA Insurance Corporation is B3. The Baa3 rating incorporates the road's importance as a major portion of Route 5, which in its entirety spans the entire length of Chile from its border with Peru to the end point of the country to the South; the presence of a flexible concession time and a Minimum Revenue Guarantee by the Chilean Ministry of Public Works; and Autopista del Maipo's favorable annual increases in traffic and revenue, resulting in debt service coverage ratios that are well in line with expectations and with those of other toll roads in the same rating category. The rating outlook is stable. Autopista del Maipo represents a 237 kilometers portion of Route 5, beginning in the southern portion of Santiago and ending in the town of Talca. The road has two main line plazas and 34 access plazas. The concession also includes the Acceso Sur, a 46km dual road that begins at a crossing the Vespucio Sur urban toll road in Santiago (rated Baa3) and will be fully operational in 2010. There is currently no comparable alternative route and the construction of future alternatives is challenging due to geographic and funding constraints. The concession was granted by the Chilean MOP in 1998 for a period of 25 years. Amendments to the concession now allow for a flexible concession term based on achieving a predetermined amount of revenue, calculated at net present value. Traffic patterns along Route 5 are well established and there is a relatively long history of tolled and non-tolled operations. Traffic along the toll road has demonstrated positive growth trends in recent years, and on average, increased 9.9% annually for the 2006-2008 periods. Chile's growth is forecasted to slow to as little as 2.0% in 2009 given the effects on Chile's economy of the current global financial crisis. Moody's expects that the concession will be able to manage periods of slower traffic with the application of conservative management and tapping into additional liquidity if necessary. Commuter vehicles make up approximately 76% of total traffic. Toll related revenues have also demonstrated positive trends, averaging 13% in the same three year period. Increases in tolls, as allowed by the concession, could to a certain extent continue to provide revenue growth if traffic slowed down more than expected. Moody's DSCR (which specifies coverage of debt as it if were on an annualized schedule) of 1.80x for the full year 2007 is in line with similarly rated toll road projects. In addition to the flexible concession term, another positive factor is the restriction on dividend distribution until all debt is paid, with the exception of a permitted dividends approved by MBIA and which are derived principally from MOP funds and not out of operations. The debt is currently supported by a liquidity facility from ABN-Amro that is accessible until 2014. The extension of the line of credit for a longer period of time was curtailed by the initial downgrade of MBIA from Aaa in June 2008. Moody's expects that the concessionaire will replace the line of credit facility with one of equal credit quality and on time. Autopista del Maipo is owned by Cintra Chile Ltda (99.9%) and Ferrovial Agroman Chile S.A. (.1%). Cintra operates five toll road concessions in Chile -- all located on Route 5 - and is an experienced and well-known concessionaire. =================== G U A D E L O U P E =================== * GUADELOUPE: France Asks Unions & Employers to Accept Aid Package ------------------------------------------------------------------ France Prime Minister Francois Fillon asked unions and employers in Guadeloupe to accept a new aid package and end a month-long strike on the French Caribbean island, Reuters reports. Protesters, the report relates, are asking for a 200-euro monthly wage increase for poor workers to cope with the rising cost of living in the island. Reuters notes the strike escalated to violence when a union leader was killed and shops were burned and looted. According to Reuters, President Nicolas Sarkozy announced measures worth EUR580 million (US$729 million) to help France's overseas regions, including aid to poor families, relief from social security contributions, and price controls. "Now I'm expecting employers to propose an increase in wages," Mr. Fillon was quoted by Reuters as saying. "I'm expecting the unions to appreciate the importance of the efforts that have been made," he added. However, the union described the latest offer as inadequate and refused to call an end to the strike, which has paralysed Guadeloupe. "There is nothing new in Nicolas Sarkozy's announcement. It's still far from what we are demanding, which is a 200 euro salary increase," said the news agency quoted Elie Domota, leader of the island's mass protest movement, as saying. Employers have mentioned possible increases of EUR35 to EUR120, depending on the sector, the report says. ============= J A M A I C A ============= AIR JAMAICA: Asks Foreign Creditors Not to Seize Assets ------------------------------------------------------- Air Jamaica is trying to convince angry foreign creditors not to seize assets amid the airline's millions of U.S. Dollars in unpaid bills, Radio Jamaica News reports, citing President and Chief Executive Officer Bruce Nobles. According to the report, Mr. Nobles said the airline has been faced with a dramatic reduction in passenger loads which has resulted in a fall off in revenue coupled with “a very difficulty financing environment”. "We start getting almost daily threats to seize assets or shut the airline down a number of times...it has become a very challenging time...that situation still exists today, that hasn't mitigated at all, we are still in that same situation. Creditors are very concerned and in some cases are still taking action," the report quoted Mr. Nobles as saying. Mr. Nobles, the report relates, said he has been eye-balling the anxious creditors with a view to regularising payments. "Quite frankly what we did was go to our creditors and said ‘look, we think we have a plan to fix this airline and make it profitable but it is going to take us a little time to work with you and we need your help because you will be better off with an airline that is profitable, or is breaking even, going forward and paying its bills rather than shutting us down," the report quoted Mr. Nobles as saying. 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. AIR JAMAICA: To Sell Two Planes to Raise Funds for Business Plan ---------------------------------------------------------------- Air Jamaica plans to sell the only two (A320) planes it owns as it seeks to raise much-needed funds to finance its new business plan, Ingrid Brown of the Jamaica Observer reports. As reported in the Troubled Company Reporter-Latin America on Feb. 2, 2009, Jamaica Information Service News said Air Jamaica has unveiled a three-point business plan, which include job cuts and eliminatation of six routes, namely flights to Atlanta, Miami, Los Angeles, Barbados, Grenada and the island of Grand Cayman. The Jamaica Gleaner noted President and Chief Executive Officer Bruce Nobles said the national airline projected to break even in six months and make a profit next year. However, Mr. Nobles said the airline needed US$135 million in the next six months to pay for its losses and to facilitate the transition process as it prepares for divestment, Radio Jamica News added. Mr. Nobles told the Observer in an interview the lease on one of the planes recently ended, while the lease on the other is expected to end next month. One of the aircrafts is already on the table, while ownership of the second plane will be transferred to one of the major lessors for a portion of outstanding amounts owed on other leased aircraft, the Observer cited Mr. Nobles as saying. The Observer relates Mr. Nobles said Air Jamaica could get as much as US$13 million for the aircraft, while the price of the one to be transferred to the lessor will be negotiated at market value. In addition, the company may return some of the other leased aircraft and restructure the amount of money owed, he added. Asked by the Observer why the planes were being sold instead of retaining them and returning some on lease, Mr. Nobles said that could not be done. "We can't just give back aircraft when we have an agreement that we are going to lease the aeroplanes for 10 years, so the process of returning an aircraft is a little complicated," the Observer quoted Mr. Nobles as saying. The Observer notes Mr. Nobles said the lease on two other aircraft ends later this year and Air Jamaica has already indicated its intention to return them six months early. 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. AIR JAMAICA: To Keep Current Cargo Services Despite Flight Cuts --------------------------------------------------------------- Air Jamaica President and CEO Bruce R. Nobles confirmed that the airline will maintain its current cargo services from Miami, Los Angeles, and Atlanta, despite its soon-to-be discontinued passenger service from these cities as part of its 2009 Business Plan, Travel Agent Central News reports. “Our cargo business is not only important to our own operations, but also plays an important role in Jamaica’s productive sector. We are not making any changes and our cargo customers can continue to depend on us,” Mr. Nobles said in a written release obtained by Travel Agent. As reported in the Troubled Company Reporter-Latin America on Feb. 2, 2009, Jamaica Information Service News said Air Jamaica is revamping its operations to reduce losses, and unveiled a three- point business plan, which is aimed at keeping the company operating throughout this year, and to position it on a path towards financial stability. According to the Associated Press, the airline said it will eliminate six routes and cut jobs this month due to the global economic crisis. The AP disclosed flights to Atlanta, Miami, Los Angeles, Barbados, Grenada and the island of Grand Cayman will be cut late this month. 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. CASH PLUS: Court Appoints Hugh Wildman as Bankruptcy Trustee ------------------------------------------------------------ Hugh Wildman has been appointed as bankruptcy trustee for Cash Plus Limited, Jamaica Gleaner reports. "There are lots of things there to do with Cash Plus and I am getting a feel of it," the report quoted Mr. Wildman, who took charge in the new position on February 11, as saying. His post makes him the de facto provisional liquidator of Cash Plus and its affiliates, which are in receivership, the report relates. According to the report, Mr. Wildman said he is reviewing numerous Cash Plus files and has been getting solid support from staff, as well as from Andrew Gyles, deputy administrator general, who had been acting as trustee in bankruptcy since L. Monty Kandekore, the head of the department, resigned last year. Mr. Wildman, the report notes, said he was aware that hundreds of investors were anxiously awaiting the outcome of the court's decision as to whether they would recover investments. "If there is any scope for investors to get back anything, then we will do our best for them to get back something," he told The Gleaner in an interview. About Cash Plus Cash Plus Limited is an investment club in Jamaica. It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. In April 2008, the Supreme Court of Jamaica placed Cash Plus in receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14, 2008. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. GOODYEAR TIRE: Posts US$16 Mln Loss on Jamaican Unit Liquidation ---------------------------------------------------------------- Goodyear Tire & Rubber Company, in a statement announcing its fourth quarter and full year 2008 results, said it recorded a US$16 million after-tax loss due to the liquidation of its Jamaican subsidiary, Goodyear Jamaica Limited, The Jamaica Observer reports. Goodyear Jamaica Limited's shareholders, the report recounts, held an extraordinary general meeting on December 19, 2008 where shareholders voted on the resolution to liquidate the company and have the net proceeds from that liquidation distributed among them. According to the report, drastic devaluation of the dollar versus the US since the beginning of the year – 10% - cut a sizeable chunk of the parent's cut. The Observer notes the Jamaican unit has seen its net profit drop from J$73 million in 2005 to less than J$14 million last year, while posting a net loss of J$3 million for the nine months to September 30, 2008, from a J$9 million net loss in the same period of 2007. Furthermore, Goodyear Tire has seen a far greater drop in profitability in its Jamaican operations than from the rest of the region since 2005. The company's Jamaican segment, the report says, saw profit from operations of J$42 million in 2005 fall to a net loss of J$38 million in 2007, and incurred operating loss of J$54 million for the nine months to September 30, 2008 - worse than the J$45 million loss from operations it reported during the comparative period in 2007. Goodyear Tire, the report adds, made US$367 million operating income on US$2.1 billion net sales across the entire Latin American region, which saw unit sales in 2008 drop by 1.8 million units or 8.3 per cent from the 2007 period. About Goodyear Jamaica Limited Goodyear Jamaica Limited (JAM:GYR) -- http://www.goodyear.com.jm/ -- is engaged in the importation and distribution of tires, tubes and related rubber products, all of which are imported from related parties. Its product portfolio includes tires for automobiles, light trucks, commercial trucks and farm vehicles. In addition to Goodyear tires, the Company produces tires under the Kelly brand name. The Company's operations are focused in two geographic segments: Jamaica and the Caribbean, and Central and South America. The Company is a 60% subsidiary of the Goodyear Tire & Rubber Company, in Akron, Ohio, United States. About Goodyear Tire & Rubber Company Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 60 facilities in 26 countries and employs 80,000 people worldwide. Goodyear has subsidiaries in New Zealand, Australia, Venezuela, Peru, Mexico, Luxembourg, Finland, Korea, and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 14, 2009, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit and other ratings on The Goodyear Tire & Rubber Co. and removed them from CreditWatch, where they had been placed with negative implications on Nov. 13, 2008. The outlook is stable. =========== M E X I C O =========== CITIGROUP INC: Committed to its Mexican Unit, CEO Pandit Says ------------------------------------------------------------- Citigroup Inc. Chief Executive Officer Vikram Pandit said the bank is committed to its Mexican unit, Grupo Financiero Banamex SA ("Banamex"), Andres R. Martinez of Bloomberg News reports. “I want to make it very clear: Citi and Banamex are one and the same,” the report quoted Mr. Pandit as saying. “The future of Citi is in emerging markets. It’s in Latin America. It’s in Mexico with Banamex,” he added. As reported in the Troubled Company Reporter on Feb. 18, 2009, The Wall Street Journal, citing people familiar with the matter, said Citigroup executives have considered selling Mexican Banamex. The WSJ's sources said that Citigroup is considering which pieces of the firm could be sold to generate cash if needed. The WSJ reported that Citigroup has posted US$28.55 billion in net losses in the past five quarters, and the U.S. government has kept urging the company to keep shrinking. The WSJ stated that if Citigroup's financial position continues to deteriorate, it could sell Banamex. According to the WSJ, Citigroup hasn't officially started exploring a sale of Banamex and said that the Mexican company has a bright future as part of a slimmed-down Citigroup. WSJ said that a sale of Banamex could attract interest from banks in Latin America, Europe, and U.S. banks. Bankers say that Banco Itau and the HSBC Holdings PLC might want to buy Banamex, WSJ related. About Citigroup Based in New York, Citigroup (NYSE: C) -- http://www.citigroup.com -- is organized into four major segments -- Consumer Banking, Global Cards, Institutional Clients Group, and Global Wealth Management. Citi had US$2.0 trillion in total assets on $1.9 trillion in total liabilities as of Sept. 30, 2008. As reported in the Troubled Company Reporter on Nov. 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. As part of the agreement, the U.S. Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately US$306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup will issue preferred shares to the Treasury and FDIC. In addition and if necessary, the Federal Reserve will backstop residual risk in the asset pool through a non-recourse loan. FUNDACION INTEGRAL: S&P Assigns 'BB-' Counterparty Credit Rating ---------------------------------------------------------------- Standard & Poor's Rating Services said that it assigned its 'BB-/B' counterparty credit rating and its 'mxBBB/mxA-3' national scale credit rating to Fundacion Integral Comunitaria A.C. (FINCA Mexico). The outlook on both scales is stable. "The ratings on FINCA Mexico reflect high competition in the Mexican microfinance market and S&P's concerns about the increasing debt burden in this niche. In combination with a less- favorable economic environment, this could hurt the foundation's asset quality," said Standard & Poor's credit analyst Alfonso J. Novelo. As the company seeks to expand its geographic presence in the United Mexican States, S&P believes that operating risk exposures will become more difficult to manage. A seasoned management team and FINCA Mexico's good profitability and capitalization levels counterbalance these weaknesses. FINCA Mexico is a microfinance company focused on giving credit to urban and rural low-income families. Approximately 95% of its portfolio is oriented to group credits. In the current environment, FINCA Mexico has faced a significant increase in competition from other microfinance entities and increasing interest in this sector from larger financial institutions with more financial flexibility and better funding sources. In addition, the labor force in this sector shows high rotation levels, and the entrance of a number of new small participants to this market has resulted in higher debt burdens for creditors. These factors have also hurt the foundation's asset quality. Although more competition in the market has pressured profitability indicators, FINCA Mexico maintains good profitability through high net interest income and continued loan growth. Microcredit operations normally present high operating costs, given the small amount of the loans and more costly underwriting and collection processes than for other financial institutions. Although efficiency ratios compare negatively to those of other microfinance companies (88%), final profitability ratios during the past five years are good and compare positively with those of rated peers. By the end of October 2008, the company registered a return on assets of 5.2%. The stable outlook reflects S&P's expectation that FINCA Mexico will be able to sustain its good internal capital generation and maintain adequate growth rates of its credit portfolio in a more challenging economic environment. A significant deterioration of FINCA Mexico's asset quality or a substantial reduction in its profitability indicators could pressure the ratings. RINKER MATERIALS: Moody's Downgrades Senior Notes to 'B1' --------------------------------------------------------- Moody's Investors Service downgraded the rating of Rinker Materials LLC's senior notes to B1 from Ba3. The rating remains on review for further downgrade. The downgrade primarily reflects the imminent refinancing risk that Rinker's ultimate parent, Cemex, S.A.B. de C.V., faces in 2009 amid difficult credit market conditions and negative performance trends across Cemex's major markets. Moody's notes that Rinker's rating reflects Cemex's consolidated credit profile due to both companies' operational and financial integration and the cross default clauses in Cemex's existing debt agreements. "Cemex's January bank debt restructuring was a positive but at the same time the company provided a weak 2009 EBITDA guidance and still has to address major additional near term debt maturities," said Moody's Vice President Sebastian Hofmeister. According to the analyst, Cemex will have to rely on asset disposals and access to external funding sources in order to meet near to medium term debt obligations, which include US$4.1 billion of debt maturities in 2009 that significantly exceed cash reserves and expected free cash flow. The rating review will primarily focus on Cemex's ability to generate cash from asset disposals over the coming months in order to meet its 2009 debt maturities. To a lesser extent, the review will also consider the company's plans for addressing its 2010 and 2011 refinancing needs and reducing debt in order to return to a healthier capital structure. Cemex's operating performance continued to deteriorate in 4Q08 as aggressive company-wide cost reductions and generally resilient pricing could not fully offset challenging economic conditions in key U.S. and Spanish markets. Reported EBITDA only dropped a modest 5% for the full 2008 because of a favorable comparison base with 2007 (when Rinker was only consolidated for the six months starting July 1, 2007) but was down 14% in 2H08 and 27% in 4Q08 vs. the same periods in 2007. Full year 2008 EBITDA was modestly affected by the deconsolidation of Venezuela as of August 1, 2008 but also included US$310 million related to the sale of emission allowances in the EU. In 4Q08, Cemex reported a US$1.5 billion impairment loss, mainly related to goodwill incurred with the 2007 Rinker purchase and reported below EBITDA in other expenses. In early February, Cemex stated that it expects EBITDA for 2009 in the range of US$3.5 billion to US$3.7 billion, which would imply a 15% to 19% drop from 2008. The US$700 million of cost savings the company now expects under its global, already largely implemented "internal PMI" program is not expected to fully mitigate continued volume decline and negative exchange rate effects. Cemex stated that its earnings guidance excludes the potential benefits from infrastructure components of government stimulus packages. Moody's believes that meaningful benefits from higher public spending are unlikely to be felt before 2010. Moody's also believes that Cemex's important Mexican market could come under increasing pressure in 2009 as local economic growth decelerates. Weaker earnings and the abrupt depreciation of the Mexican peso in 4Q08 caused leverage to increase markedly, with Debt/EBITDA adjusted for perpetual notes and off balance sheet debt rising to 5.3 times at year-end 2008 from about 4.8 times in 3Q08. EBIT/Interest adjusted for perpetual coupon dividends was 2.3 times, down from 3.3 times in 2007, while adjusted Free cash flow/ Debt came in at 3%. Under Moody's building materials methodology, these metrics map to single-B scores, with the exception of EBIT/Interest which is in line with a Ba. For 2009, Moody's expects credit metrics to remain weak even if Cemex meets its current earnings, asset disposal and debt reduction targets. Adjusted Debt/EBITDA will likely remain well above 5 times, while adjusted EBIT/Interest could potentially drop below 2 times. Despite the successful conclusion of recent refinancing efforts in January, Cemex's liquidity remains tight because cash and expected free cash flow only cover a portion of upcoming debt maturities. Cemex continues to rely on achieving major asset disposals amid currently uncertain market conditions -- it expects about US$2 billion in divestiture proceeds in 2009 -- and on the availability of external financing. Moody's estimates that Cemex faces a US$2 billion funding gap in 2009, with US$2.1 billion in expected cash sources excluding uncommitted divestitures covering about half of the US$4.1 billion in 2009 debt maturities. Estimated cash sources mainly include US$1.2 billion free cash flow after perpetual coupon dividends and the new, low US$650 million capex budget, about US$500 million in cash available for debt reduction (US$990 million at year-end 2008 adjusted for estimated operational needs) and around US$400 million in proceeds from the Austrian and Hungarian divestitures (both are contractually committed but the antitrust approval is still pending for the Austrian assets). Cemex's 2009 divestment program includes the Australian concrete pipe business as well as a range of other non-core assets which the company has not specified publicly. Cemex may also obtain payments related to the nationalization of its Venezuelan operation in 2008, although related amounts and timing remain uncertain. Cemex' currently weak liquidity also reflects Moody's expectation of a tight cushion under the amended max Net Debt/EBITDA covenant in 2009 and additional major debt maturities of about US$3.5 billion in 2010 and US$7.7 billion in 2011. The Net Debt/EBITDA covenant threshold will increase from 4.5 times in 1Q09 to 4.75 times in 2Q09 and then gradually step down to 3.5 times by 3Q11. Net Debt/EBITDA was 4.0 times in 4Q08, vs. 3.4 times in 3Q08. Cemex intends to address its 2010 and 2011 debt maturities as soon as markets permit. Moody's believes that the company currently does not maintain meaningful availability under credit facilities. As of December 31, 2008, Cemex's total adjusted debt was US$24.2 billion, flat vs. September 30, 2008. Adjusted debt included US$18.8 billion in reported debt (as per Mexican GAAP), US$3 billion in perpetuals (down from US$4 billion but offset by a similar increase in reported debt because of the reclassification of a perpetual loan facility), and US$2.4 billion in adjustments for securitization, capitalized leases and under-funded pension obligations. In 2009, Cemex intends to reduce reported debt by about US$3.6 billion using free cash flow and asset divestiture proceeds. Under its hybrid methodology, Moody's treats Cemex's perpetuals as 100% debt, in line with the treatment under U.S. GAAP. Rinker's rating continues to reflect Cemex's strong business profile, with leading market positions and solid diversification across a number of major countries and product lines. Cemex's business consists of cement, ready mix and aggregates with most of the earnings coming from North America and Europe. In 2008, Mexico generated 33% of consolidated EBITDA, the U.S. 16% and Spain 11%. The UK's EBITDA contribution was only 1% although the country accounts for 8% of revenues. South/Central America and the Caribbean contributed about 15% and other Europe (which besides France and Germany also includes several Central and Eastern European countries) accounted for 12% of EBITDA. The last rating action on Rinker was a downgrade to Ba3 from Ba1 on December 19, 2008. Rinker Materials LLC (Rinker, formerly Rinker Materials Corporation), a U.S. entity, is owned by Cemex, Inc., which is the intermediate holding company of Cemex, S.A.B. de C.V.'s U.S. operations and in turn is owned by Cemex Espana, the holding for Cemex's non-Mexican business. Cemex, headquartered in Monterrey, Mexico, is a leading global building materials company that manufactures and distributes building products such as cement, ready mix concrete and aggregates, with customers in more than 50 countries. Cemex gained control of Australia-based Rinker Group Limited, Rinker's former parent company, in June 2007. In 2008, Cemex reported revenues and EBITDA reached of US$21.7 billion and US$4.3 billion, respectively. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: May Use Cash from Rum Distillery to Pay Loan Balance ------------------------------------------------------------------ CL Financial Limited might have to use the cash from its rum distillery in Jamaica to finance the balance of the US$340 million (TT$2.1 billion) loan it made from the purchase of the Jamaican conglomerate Lascelles de Mercado, Trinidad and Tobago Newsday reports. CL Financial Group Financial Director Michael Carballo, the report relates, sought to allay shareholder concerns by saying the Appleton, a high profile rum brand under Lascelles, is not for sale. The report recounts CL Financial spent US$676 million on the total investment cost to purchase 86.87% of Lascelles. Mr. Carballo told Newsday in an interview that CL Financial would consider selling other assets of the Jamaican conglomerate to finance the Lascelles debt. About CL Financial According to Wikipedia, CL Financial Limited 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. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2009, the Trinidad and Tobago Express said Central Bank Governor Ewart Williams disclosed that an examination of insurance company CLICO, dissolved finance house CLICO Investment Bank and other CL Financial companies, showed a deficit between $6 billion and $8 billion. Tobago President George Maxwell Richards, The Express related, signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. According to the Trinidad and Tobago Newsday, the government used $1 billion of taxpayers money to help protect depositors and policyholders. T&T Newsday related Governor Williams pleaded with policy holders not to withdraw money from Clico, amid the unit's increasing $10 billion debt. HCU: Liquidator Says Company Assets Still Unsold ------------------------------------------------ Liquidator Ramdath Dave Rampersad has denied rumors that major assets of the Hindu Credit Union(“HCU”) have been sold nor any arrangements have been made for this to occur, Trinidad and Tobago Newsday reports. As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2009, Trinidad and Tobago Newsday said the Members of Credit Union Member Group ("CRMG") are planning to write again to Prime Minister Patrick Manning and Financial Minister Karen Nunez- Tesheira asking them to stop the liquidation of HCU's assets. Trinidad and Tobago Express said HCU sold 13 of its vehicles to help pay off a $400 million deficit. According to Caribbean Net News, Trinidad and Tobago's Fraud Squad and Anti Corruption Bureau conducted an investigation into HCU's financial operations on reports of several discrepancies and financial improprieties involving tens of millions of dollars. HCU liquidator Ramdath Rampersad, as cited by the Express, said the money from the liquidation is being used to pay creditors; salaries for the remaining staff members, and phone, electricity and water bills. The Express related that Mr. Rampersad said the liquidation would continue until HCU President Harnarine's appeal to stop the process is approved by March 2009. According to the Express, loans are also being serviced by customers and are being used to pay preferential creditors like the National Insurance Board, Water and Sewerage Authority and the Board of Inland Revenue. However, The Express says, customers who have not been re-paid are protesting for the return of their money. Mr. Rampersad added that HCU was also servicing a loan from a commercial bank, the report notes. CRMG Public Relation Officer Deosaran Bisnath, as cited by Newsday, said depositors and shareholders were concerned that buildings and properties would be sold next, adding that since the HCU's assets were valued less than its liabilities, members would lose most of their investments. About Hindu Credit Hindu Credit Union Co-Operative Society Limited (HCU) --http://www.ourhcu.com/-- is headquartered in Borough, Chaguanas, in Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on July 28, 2008, the High Court of Trinidad and Tobago granted the government full control of Hindu Credit as the company faces financial difficulties, leaving depositors in limbo despite requests from lawyers. In June 2008, chartered accountants Ernst and Young inspected Hindu Credit's books, accounts, and records after a public outcry and calls for an internal audit. Charles Mitchell, the Commissioner for Co-Operative Development, represents Hindu Credit's depositors. =============== X X X X X X X X =============== * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------------ ------- ARGENTINA SOC COMERCIAL PL CAD IX 422118016 -747305024 COMERCIAL PLA-BL COMEB AR 422118016 -747305024 SOC COMERCIAL PL CVVIF US 422118016 -747305024 COMERCIAL PL-ADR SCPDS LI 422118016 -747305024 SOC COMERCIAL PL CADN SW 422118016 -747305024 SOC COMERCIAL PL COME AR 422118016 -747305024 COMERCIAL PL-C/E COMEC AR 422118016 -747305024 IMPSAT FIBER-CED IMPT AR 535007008 -17165000 SOC COMERCIAL PL SCDPF US 422118016 -747305024 IMPSAT FIBER NET IMPTQ US 535007008 -17165000 IMPSAT FIBER NET XIMPT SM 535007008 -17165000 IMPSAT FIBER-BLK IMPTB AR 535007008 -17165000 IMPSAT FIBER-C/E IMPTC AR 535007008 -17165000 IMPSAT FIBER-$US IMPTD AR 535007008 -17165000 COMERCIAL PLAT-$ COMED AR 422118016 -747305024 IMPSAT FIBER NET 330902Q GR 535007008 -17165000 BRAZIL CAFE BRASILIA-PR CSBRPN BZ 38244000 -1042639040 TELEBRAS-RTS PRF TLCP2 BZ 226080000 -187984000 TELEBRAS-ADR RTB US 226080000 -187984000 ARTHUR LANGE ARLA3 BZ 34053000 -26011000 CONST A LINDEN CALI3 BZ 51808000 -13659000 SCHLOSSER-PREF SCLO4 BZ 45358000 -95113000 FABRICA RENAUX-P FRNXPN BZ 126672000 -55261000 SCHLOSSER SA-PRF SCHPN BZ 45358000 -95113000 SCHLOSSER SCLO3 BZ 45358000 -95113000 CONST A LINDEN LINDON BZ 51808000 -13659000 TELEBRAS-PF RCPT RCTB41 BZ 226080000 -187984000 TELEBRAS-PF RCPT RCTB42 BZ 226080000 -187984000 TELEBRAS/W-I-ADR TBH-W US 226080000 -187984000 TELEBRAS-PF RCPT RCTB40 BZ 226080000 -187984000 RIMET REEMON BZ 144454000 -232197008 RIMET-PREF REEMPN BZ 144454000 -232197008 TECEL S JOSE-PRF SJOS4 BZ 79567000 -37557000 RIMET-PREF REEM4 BZ 144454000 -232197008 TECEL S JOSE SJOS3 BZ 79567000 -37557000 TELEBRAS-PF RCPT TBAPF US 226080000 -187984000 BUETTNER SA-RTS BUET1 BZ 148186992 -54926000 BOTUCATU TEXTIL STRP3 BZ 66833000 -3164000 GASCOIGNE EMP-PF GASC4 BZ 1586146944 -1048602048 TELEBRAS SA TBASF US 226080000 -187984000 TELEBRAS-CEDE PF RCTB4 AR 226080000 -187984000 TECBLU-PREF A TBLUAN BZ 14637000 -13127000 BOMBRIL-RIGHTS BOBR1 BZ 442846016 -485678016 TELEBRAS-ADR TBH US 226080000 -187984000 BUETTNER SA-RT P BUET2 BZ 148186992 -54926000 CYRELA COMME-ADR CYRLY US 695033024 -4282000 RIMET REEM3 BZ 144454000 -232197008 TECBLU-RCPT CMN TEN8 BZ 14637000 -13127000 SANSUY SA-PREF A SNSYAN BZ 235182000 -63134000 STAROUP SA STARON BZ 66833000 -3164000 MINUPAR-PREF MNPR4 BZ 179201008 -34191000 DTCOM- DIRECT-PR DTCY4 BZ 11902000 -16264999 SANSUY SNSY3 BZ 235182000 -63134000 NORDON METAL NORDON BZ 36317000 -33521000 NOVA AMERICA SA NOVA3 BZ 40955000 -353104000 NORDON MET-RTS NORD1 BZ 36317000 -33521000 BOMBRIL SA-ADR BMBBY US 442846016 -485678016 ARTHUR LANG-RC P ARLA10 BZ 34053000 -26011000 TELEBRAS-CM RCPT TBRTF US 226080000 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BZ 206494000 -23571000 DTCOM-RT DTCY1 BZ 11902000 -16264999 CTM CITRUS-RCT C CTPC9 BZ 79728000 -1381000 WETZEL SA-PREF MWET4 BZ 150210992 -8903000 MARAMBAIA CTPC3 BZ 79728000 -1381000 ARTHUR LANGE SA ALICON BZ 34053000 -26011000 CAMBUCI SA-PREF CXDOF US 177378992 -42495000 TELEBRAS-CED C/E TEL4C AR 226080000 -187984000 DHB IND E COM DHBON BZ 221336000 -588646016 SANSUY-PREF B SNSY6 BZ 235182000 -63134000 TEKA TEKA3 BZ 526557984 -449536992 ESTRELA SA ESTRON BZ 153186000 -80125000 DHB IND E COM-PR DHBPN BZ 221336000 -588646016 ESTRELA SA ESTR3 BZ 153186000 -80125000 ESTRELA SA-PREF ESTR4 BZ 153186000 -80125000 F GUIMARAES FGUI3 BZ 24631000 -224564000 MARAMBAIA-PREF CTPC4 BZ 79728000 -1381000 FABRICA RENAUX FRNXON BZ 126672000 -55261000 F GUIMARAES-PREF FGUI4 BZ 24631000 -224564000 ACO ALTONA-PREF EAAPN BZ 170270992 -31429000 ACO ALTONA SA EAAON BZ 170270992 -31429000 N.A. DTCY9 BZ 11902000 -16264999 D H B DHBI3 BZ 221336000 -588646016 MINUPAR SA-PREF MNPRPN BZ 179201008 -34191000 FERREIRA GUIMARA FGUION BZ 24631000 -224564000 ACO ALTONA-PREF EALT4 BZ 170270992 -31429000 COLOMBIA ENACAR ENACAR CI 3226756096 -9463063552 N.A. CARVILEO CI 1295758976 -6212240384 ENACAR-RT ENACARO CI 3226756096 -9463063552 CARVILE CARVILE CI 1295758976 -6212240384 ENACAR EMPOF US 3226756096 -9463063552 *********** 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 * * *