/raid1/www/Hosts/bankrupt/TCRLA_Public/090311.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, March 11, 2009, Vol. 9, No. 49
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L: Receiver Aids Ex-Clients in Moving Unfrozen Assets
STANFORD INT'L BANK: Stanford Group Cuts 1,000 Jobs
STANFORD INT'L BANK: FBI Tries to Identify Fraud “Victims”
A R G E N T I N A
CONINDUS SRL: Proofs of Claim Verification Due on May 22
DONA CAROLINA: Asks for Opening of Preventive Contest
INDUSTRIAS CARSIGOM: Asks for Opening of Preventive Contest
MAC FRUT: Trustee Verifying Proofs of Claim Until April 20
PRECEDER SA: Trustee Verifying Proofs of Claim Until May 5
B E R M U D A
BRUSWICK BERMUDA: Creditors' Proofs of Debt Due on March 18
BRUNSWICK BERMUDA: Members to Hear Wind-Up Report on April 3
GOLDEN OCEAN: To Meet with Bondholders to Seek Covenant Relief
MAN MULTI-STRATEGY: Creditors' Proofs of Debt Due on March 18
MAN MULTI-STRATEGY: Members to Hear Wind-Up Report on April 8
MEDITERRANEAN RESOURCES: Creditors' Proofs of Debt Due on March 18
MEDITERRANEAN RESOURCES: Members to Hear Wind-Up Report on April 8
MEDITERRANEAN RESOURCES: Creditors' Proofs of Debt Due on March 18
MEDITERRANEAN RESOURCES: Members to Hear Wind-Up Report on April 7
MINERVA SA: Assures Position Amid Instability in Beef Industry
MULTI-STRATEGY SERIES: Creditors' Proofs of Debt Due on March 18
MULTI-STRATEGY SERIES: Members to Hear Wind-Up Report on April 7
SUBARBAN FINANCE: Creditors' Proofs of Debt Due on March 20
SUBARBAN FINANCE: Members to Receive Wind-Up Report on April 8
SUBARBAN FINANCE: Creditors' Proofs of Debt Due on March 22
SUBARBAN FINANCE: Members to Receive Wind-Up Report on April 8
B R A Z I L
AMAZONIA CELULAR: S&P Withdraws 'BB+' Issuer Credit Rating
BRACOL HOLDING: S&P Puts 'B+' Rating on Negative CreditWatch
CITIGROUP INC: To Sell Redecard SA's 12% Stake
MINERVA SA: S&P Puts 'B' Corporate Rating on Negative CreditWatch
MERILL LYNCH: Latin American Banker Gets US$7 Mln Bonus for 2008
C A Y M A N I S L A N D S
ANSUZ INVESTMENTS: Shareholders Receive Wind-Up Report
BENNINGTON FINANCE: Members Receive Wind-Up Report
FORTIS US ET AL: Liquidator Presents Wind-Up Report
GLACIER SCS: Shareholders Receive Wind-Up Report
HEDGE VISION: Shareholders Receive Wind-Up Report
INSTRATA CAPITAL: Shareholders Receive Wind-Up Report
IRON HORSE: Shareholder Receives Wind-Up Report
MM&E EVENT: Shareholders Receive Wind-Up Report
OPPORTUNITY OFFSHORE: Members Receive Wind-Up Report
OPUS SELECT ET AL: Liquidator Presents Wind-Up Report
PYLOS II: Shareholders Receive Wind-Up Report
ROBECO WPG: Shareholders Receive Wind-Up Report
SBG HOLDINGS: Shareholders Receive Wind-Up Report
SEARCH EMPLOYEE: Shareholders Receive Wind-Up Report
SEARCH MASTER: Shareholders Receive Wind-Up Report
STONEGATE CREDIT ET AL: Liquidator Presents Wind-Up Report
C H I L E
EMPRESAS IANSA: Fitch Downgrades Issuer Default Rating to 'B-'
G U Y A N A
CL FIN'L: Clico Guyana Has Investment in Bahamas, Minister Says
J A M A I C A
JPSCO: Delays Submission of Tariff Adjustment
CABLE & WIRELESS: LIME Faces $1.7 Billion Digicel Suit
M E X I C O
CEMEX SA: Starts Debt Renegotiation Talks After Bond Sale Delay
CEMEX SAB: Fitch Downgrades Currency Issuer Default Ratings to 'B'
MAXCOM TELECOM: Names William Nazaret as Chief Operating Officer
MAXCOM TELECOMUNICACIONES: S&P Affirms 'B' Corporate Rating
T R I N I D A D & T O B A G O
CL FINANCIAL: Chairman Spends US$1.5 Billion on Florida Properties
* TRINIDAD & TOBAGO: To Give Out VSEP to 2,000 Gov't Employees
V E N E Z U E L A
PDVSA: Signs Temporary Deal to Develop LNG Trains
X X X X X X X X
* Brown Rudnick Gets “Deal of the Year” Award From Latin Lawyer
- - - - -
===============================
A N T I G U A & B A R B U D A
===============================
STANFORD INT'L: Receiver Aids Ex-Clients in Moving Unfrozen Assets
------------------------------------------------------------------
The receiver for Stanford Financial Group, Ralph Janvey, issued a
"road map" aimed at helping former clients move accounts that are
no longer frozen to new accounts, Kristen Hays of Houston
Chronicle reports.
The Chronicle relates that among Mr. Janvey’s instructions for
transferring assets from accounts that have been released from the
freeze were:
* Eligible accounts are those in custody of Pershing that
contained less than US$250,000 as of Feb. 27, and are not
owned by any of the defendants, directors, senior management
or financial advisers who received fees and commissions.
* Investors wishing to transfer accounts must first contact a
new brokerage firm and open a new account. That will include
filling out an Automated Customer Account Transfer Service
form, so the new firm can present it to Pershing and launch
the transfer process. The forms can be obtained at brokerage
firms or their Web sites.
* If investors have Stanford-managed accounts in addition to
accounts held by Pershing, all will remain frozen until
otherwise announced.
As reported in the Troubled Company Reporter-Latin America on
March 9, 2009, the United States Court handling the case against
Texas billionaire Robert Allen Stanford issued an order to
unfreeze approximately 12,000 Stanford investor accounts held at
Pershing LLC, at the request of Mr. Janvey.
CaribbeanWorldNews recalled Judge Godbey earlier ruled the
U.S. Securities and Exchange Commission could maintain the freeze
over Mr. Stanford's assets and set a March 12 hearing to decide on
the SEC’s request to make the temporary injunction permanent.
The U.S. SEC, on Feb. 17, 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 Stanford
International Bank, Stanford Group Company (SGC), and investment
adviser Stanford Capital Management.
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: Stanford Group Cuts 1,000 Jobs
---------------------------------------------------
Court Appointed Stanford Financial Group receiver, Ralph Janvey,
notified approximately 1,000 employees in Stanford’s U.S. offices
that their employment has been terminated. The terminated
employees constitute approximately 85% of Stanford’s U.S.
employees.
Mr. Janvey was appointed by a Federal district court on
February 16, 2009 to take possession of all assets of Stanford
International Bank Ltd., Stanford Group Company, Stanford Capital
Management LLC, Robert Allen Stanford, James M. Davis, Laura
Pendergest-Holt, and all entities and assets they control.
The U.S. Securities and Exchange Commission, on Feb. 17, 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. Janvey has the duty of conserving and preserving the value of
the receivership estate, which includes the various Stanford
entities. After a review of the circumstances, Mr. Janvey
concluded that continuing employment for these employees is not in
the interest of conserving and preserving the value of the estate
because there are insufficient resources to continue to compensate
all present employees.
Stanford Financial Group and its affiliates are permanently
reducing their workforce at certain U.S. facilities and locations,
and the Receiver expects that most of Stanford’s businesses and
operations will be discontinued or wound down. A small number of
U.S. employees will be retained to assist with the process of
winding down operations and settling the receivership estate.
Most of these are employed at Stanford’s Houston headquarters.
All the employment separations were effective March 6, 2009.
Regular salary and benefits was discontinued immediately. With a
few exceptions, employees provided with the separation of service
notice will be paid on March 13 for the period from February 16
through and including March 6. Employees will not receive any
severance compensation or bonus.
Decisions regarding Stanford’s employees in locations outside the
U.S. will be made and announced in the next few weeks.
As previously announced, Mr. Janvey’s investigation to date
indicates that the liquidity situation and overall financial
condition of the Stanford entities can only be described as
dire. According to unaudited financial statements as of
December 31, 2008, Stanford has amassed tens of millions of
dollars in unpaid bills, and to date the receivership accounting
team has been able to identify only a limited amount of available
cash on hand. Evidence is also mounting that the assets of the
Receivership estate will be only a fraction of the amount needed
to satisfy the anticipated claims against the estate.
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: FBI Tries to Identify Fraud “Victims”
----------------------------------------------------------
The U.S. Federal Bureau of Investigation are asking investors of
Stanford Financial Group to provide investigators with the amount
of their losses and recent statements, Justin Blum of Bloomberg
News reports. “The FBI is seeking to gather additional
information from investors in order to identify victims and
determine the extent of any potential fraud,” the FBI said in a
statement obtained by the news agency.
The U.S. Securities and Exchange Commission, on Feb. 17, 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 Stanford International Bank Ltd, Stanford Group
Company and investment adviser Stanford Capital Management.
According to Bloomberg News, the statement said if investigators
determine that those who provide information were victimized by
Mr. Stanford, “the FBI will be in touch.”
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.
* * *
The U.S. Securities and Exchange Commission, on Feb. 17, 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 Stanford International Bank, Stanford Group
Company (SGC), and investment adviser Stanford Capital Management.
=================
A R G E N T I N A
=================
CONINDUS SRL: Proofs of Claim Verification Due on May 22
--------------------------------------------------------
Nelida Cunarro, the court-appointed trustee for Conindus SRL's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until May 22, 2009.
Ms. Cunarro will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 20 in Buenos Aires, with the assistance of Clerk
No. 40, 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.
DONA CAROLINA: Asks for Opening of Preventive Contest
-----------------------------------------------------
Dona Carolina SA asked for the opening of its preventive contest.
The company stopped its payment on October 30, 2008.
INDUSTRIAS CARSIGOM: Asks for Opening of Preventive Contest
-----------------------------------------------------------
Industrias Carsigom SA asked for the opening of preventive contest
before the National Commercial Court of First Instance No. 21 in
Buenos Aires, with the assistance of Clerk No. 41.
MAC FRUT: Trustee Verifying Proofs of Claim Until April 20
----------------------------------------------------------
The court-appointed trustee for Mac Frut S.A.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
April 20, 2009.
The trustee will present the validated claims in court as
individual reports on June 3, 2009. The National Commercial Court
of First Instance in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion,
and the objections and challenges that will be raised by the
company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
July 16, 2009.
PRECEDER SA: Trustee Verifying Proofs of Claim Until May 5
----------------------------------------------------------
The court-appointed trustee for Preceder S.A.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
May 5, 2009.
=============
B E R M U D A
=============
BRUSWICK BERMUDA: Creditors' Proofs of Debt Due on March 18
-----------------------------------------------------------
The creditors of Bruswick Bermuda Recreation Holdings Limited are
required to file their proofs of debt by March 18, 2009, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Feb. 26, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House
Church Street, Hamilton
Bermuda
BRUNSWICK BERMUDA: Members to Hear Wind-Up Report on April 3
------------------------------------------------------------
The members of Brunswick Bermuda Recreation Holdings Limited will
hold their meeting on April 3, 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. 26, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House
Church Street, Hamilton
Bermuda
GOLDEN OCEAN: To Meet with Bondholders to Seek Covenant Relief
--------------------------------------------------------------
Golden Ocean Group Ltd plans to summon a bondholders' meeting
where it will propose to remove the market adjusted equity ratio
covenants from the its convertible bond loan agreement. Through
this move, Golden Ocean said it will not be in breach of the loan
agreement, an event which could have triggered a cross default
with remaining existing financing.
As reported in the Troubled Company Reporter-Latin America on
March 9, 2009, The Financial Times said Golden Ocean avoided a
potential covenant breach after Hemen Holdings Ltd, an investment
vehicle of its chief executive John Fredriksen, acquired two
thirds of a convertible bond issue whose terms require the Oslo-
listed dry bulk shipowner to maintain a market capitalization
above a set value.
In a March 5 release, Golden Ocean said that Hemen purchased
US$165.3 million of nominal amount of the 3.625 % Golden Ocean
Group Convertible Bond Issue 2007/2012. The purchase price was
30% plus accrued interest. Settlement date will be March 10,
2009.
Golden Ocean said that in order to complete a successful financial
restructuring of the company and create a solid platform for
future operation, it will be dependent on reducing its financial
commitments and make sure that it is fully funded going forward.
The company has entered into discussions with certain
counterparties and financiers in order to achieve this.
In view of the tight cash situation, Golden Ocean it is dependent
on coming to a conclusion to these discussions within the next few
weeks. Such a solution is likely to include injection of some
amount of new equity, the company said.
About Golden Ocean
Golden Ocean Group Limited (GOGL), formerly a subsidiary of
Frontline Ltd –- http://www.goldenocean.no/– is a company
incorporated in Bermuda and listed in Norway. It is principally
engaged in dry bulk shipping. It operates a fleet of owned and
leased panamax and capesize dry bulk vessels. The Company also
trades freight forward agreements for the purpose of managing its
exposure to vessel spot market rates and for speculating. It is
operational through a number of wholly owned subsidiaries in
Liberia, Singapore, Norway and Bermuda. Golden Ocean Group
Limited has an office presence in Bermuda, Norway and Singapore.
MAN MULTI-STRATEGY: Creditors' Proofs of Debt Due on March 18
-------------------------------------------------------------
The creditors of Man Multi-Strategy Series C Ltd are required to
file their proofs of debt by March 18, 2009, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2009.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9
Bermuda
MAN MULTI-STRATEGY: Members to Hear Wind-Up Report on April 8
-------------------------------------------------------------
The members of Man Multi-Strategy Series C Ltd will hold their
meeting on April 8, 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 March 2, 2009.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9
Bermuda
MEDITERRANEAN RESOURCES: Creditors' Proofs of Debt Due on March 18
------------------------------------------------------------------
The creditors of Mediterranean Resources (Bermuda) Ltd. are
required to file their proofs of debt by March 18, 2009, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House
Church Street, Hamilton
Bermuda
MEDITERRANEAN RESOURCES: Members to Hear Wind-Up Report on April 8
------------------------------------------------------------------
The members of Mediterranean Resources (Bermuda) Ltd. will hold
their meeting on April 8, 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 March 2, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House
Church Street, Hamilton
Bermuda
MEDITERRANEAN RESOURCES: Creditors' Proofs of Debt Due on March 18
------------------------------------------------------------------
The creditors of Mediterranean Resources (Holdings) Ltd. are
required to file their proofs of debt by March 18, 2009, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House
Church Street, Hamilton
Bermuda
MEDITERRANEAN RESOURCES: Members to Hear Wind-Up Report on April 7
------------------------------------------------------------------
The members of Mediterranean Resources (Holdings) Ltd. will hold
their meeting on April 7, 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 March 2, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House
Church Street, Hamilton
Bermuda
MINERVA SA: Assures Position Amid Instability in Beef Industry
--------------------------------------------------------------
Minerva S.A. disclosed that its solid capital structure and
management strategies continue to assure it a comfortable
position, despite the recent instability that is adversely
affecting companies in the industry.
Minerva said its financial position, current liquidity exceeds
short-term debt maturities, minimizing any refinancing risks.
According to the company, its position is underpinned by solid
financial policies, with the company maintaining a high cash
balance, which ended February at approximately R$450 million, and
at least 80% of debt concentrated in the long term. In addition
to these financial aspects, the company's strategy of capturing
new markets has helped safeguard its operations. In its sales
strategy, one of Minerva’s main advantages is the highly
diversified list of countries in which it operates and its market
segmentation, with a focus on solid clients with strong track
records, especially in terms of payment.
As a result, Minerva said it has not suffered any payment problems
involving its international clients, including those in Russia,
where the level of receivables is at normal levels. In fact,
receivables performance exceeded Minerva’s own expectations, with
export receivable terms shortening to 45 days, from 50 days in
3Q08, despite the highly volatile market environment.
Minerva’s advantages includes its operational flexibility, agile
sales structure and complete control of processes, as well as the
geographic diversification of its plants and the broad reach of
its extensive distribution system for small and midsized
retailers, with approximately 18,000 points of sale.
Moreover, Minerva maintains a conservative acquisition and
expansion policy, placing a priority on moderate, though solid and
secure, growth, while avoiding accelerated expansions that expose
the Company to risks and losses. Reflecting these structural and
strategic advantages, Minerva has not experienced any margin
compression so far in 2009, and is planning to scale up production
in March by approximately 20% in relation to February, to capacity
utilization of 75%. Furthermore, export volumes have already
begun to recover in February, reflecting Minerva’s penetration in
robust markets such as the Middle East and Northern Africa.
Minerva’s share of Brazil’s fresh beef export revenue expanded to
16.4% in 4Q08, up from 11.0% in 3Q08.
About Minerva S.A.
Minerva S.A. is one of the leading producers and sellers of beef,
leather and live cattle in Brazil, and is one of the country’s
three largest exporters in the sector in terms of gross revenue,
exporting to some 80 countries. The company has slaughter
capacity of 5,500 head/day, processing capacity of 1,300 tons/day
and leather capacity of 5,000 hides/day. With a presence in the
Brazilian states of São Paulo, Goias, Tocantins, Mato Grosso do
Sul as well as in Paraguay, Minerva operates seven slaughter and
deboning plants, two tanneries and five distribution centers. In
the 12 months ended September 30, 2008, the company recorded net
sales revenue of R$2.1 billion, up 53% on the same period a year
earlier.
MULTI-STRATEGY SERIES: Creditors' Proofs of Debt Due on March 18
----------------------------------------------------------------
The creditors of Multi-Strategy Series C Trading Ltd are required
to file their proofs of debt by March 18, 2009, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2009.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9
Bermuda
MULTI-STRATEGY SERIES: Members to Hear Wind-Up Report on April 7
----------------------------------------------------------------
The members of Multi-Strategy Series C Trading Ltd will hold their
meeting on April 7, 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 March 2, 2009.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9
Bermuda
SUBARBAN FINANCE: Creditors' Proofs of Debt Due on March 20
-----------------------------------------------------------
The creditors of Subarban Finance Company are required to file
their proofs of debt by March 20, 2009, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Feb. 20, 2009.
The company's liquidator is:
Mike Morrison
KPMG Advisory Limited crown House
4 Par-la-Ville Road, Hamilton HM 08
Bermuda
SUBARBAN FINANCE: Members to Receive Wind-Up Report on April 8
--------------------------------------------------------------
The members of Subarban Finance Company will hold a meeting on
April 8, 2009, at 10:00 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. 20, 2009.
The company's liquidator is:
Mike Morrison
KPMG Advisory Limited crown House
4 Par-la-Ville Road, Hamilton HM 08
Bermuda
SUBARBAN FINANCE: Creditors' Proofs of Debt Due on March 22
-----------------------------------------------------------
The creditors of Subarban Finance Company II UL are required to
file their proofs of debt by March 22, 2009, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Feb. 20, 2009.
The company's liquidator is:
Mike Morrison
KPMG Advisory Limited crown House
4 Par-la-Ville Road, Hamilton HM 08
Bermuda
SUBARBAN FINANCE: Members to Receive Wind-Up Report on April 8
--------------------------------------------------------------
The members of Subarban Finance Company II UL will hold a meeting
on April 8, 2009, at 10:00 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. 20, 2009.
The company's liquidator is:
Mike Morrison
KPMG Advisory Limited crown House
4 Par-la-Ville Road, Hamilton HM 08
Bermuda
===========
B R A Z I L
===========
AMAZONIA CELULAR: S&P Withdraws 'BB+' Issuer Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said that it has withdrawn its
'BB+' long-term issuer credit rating on Amazonia Celular S.A. at
the issuer's request. The company is a local mobile player with
operations concentrated in the northern region of Brazil. In
December 2007, Telemar Norte Leste S.A. (Tmar; global scale
rating: BB+/Positive/--) reached an agreement to acquire Amazonia
from Vivo Participacoes S.A. (Vivo; national scale rating:
brAA-/Stable/--).
At the same time, S&P withdrew its 'BB' long-term issuer credit
rating on Telemig Celular S.A., also at the issuer's request. The
company is a local mobile player with operations concentrated in
the Brazilian state of Minas Gerais. In August 2007, Vivo reached
an agreement to acquire control of both Telemig and Amazonia. The
transaction was concluded in April 2008 after Vivo received
approval from the regulatory agency, Agencia Nacional de
Telecomunicacoes, to sell Amazonia to Telemar.
BRACOL HOLDING: S&P Puts 'B+' Rating on Negative CreditWatch
------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'B+'
long-term corporate credit rating on Brazil-based company Bracol
Holding Ltda. on CreditWatch with negative implications,
reflecting the recent deterioration of market and credit
conditions for the beef sector in Brazil.
The ratings on Bracol ultimately reflects the credit quality of
its beef subsidiary, Bertin S.A. (not rated), a large beef and
dairy company in Brazil that accounts for approximately 97% of
Bracol's consolidated net revenues and nearly all its consolidated
total debt as of September 2008. Bracol's adjusted total debt
amounted to $3.2 billion as of Sept. 30, 2008 (including
acquisition obligations, discounted receivables, and renegotiated
taxes).
"The CreditWatch placement reflects our opinion that the
challenging operating conditions in Brazil will affect Bracol
significantly. Bracol's weakening credit metrics and the
significant acquisition commitments it must pay throughout 2009
put downward pressure on the company's credit profile," said
Standard & Poor's credit analyst Flavia Bedran.
Beef companies in Brazil have faced severe working capital
pressures in recent months, due to longer receivable terms in
export markets, fiercer competition in the domestic market, low
operating profitability and negative operating cash flows due to
high cattle costs and difficult cattle sourcing, and tight bank
credit availability to Brazilian beef companies, particularly
after the recent series of defaults in the industry.
Despite the significant challenges currently faced by Brazilian
beef companies, S&P sees positive factors developing that may
offset the negative trend. Export markets have shown some signs
of recovery in February and March 2009, suggesting that beef
export volumes and prices may improve in the next quarters and
reduce the competitive pressure in the Brazilian domestic market;
that would also allow for domestic beef prices to improve,
strengthening the sector's profitability. In addition to seasonal
factors (which S&P expects to increase cattle supply in the next
months), S&P expects cattle costs to decline because Brazilian
slaughtering capacity has been significantly reduced after several
companies have shut down. Bracol also benefits from its
increasing market position in the dairy industry, whose product
mix remain focused on higher-value-added products and that S&P
expects to add business diversity in the medium term.
S&P expects to resolve the CreditWatch listing in the next couple
of months, as S&P get more detailed information about the
company's liquidity and operating performance. S&P is likely to
have more clarity on market trends in the next months as well, as
the potential positive effects of lower slaughtering capacity in
Brazil become more visible. S&P currently expect to lower the
ratings by one notch if S&P confirm that Bracol's cash reserves
have been reduced due to the current environment or if the
company's credit metrics are likely to remain significantly weaker
than historical levels for the next year or so. However, a
negative rating revision of more than one notch could be warranted
if S&P conclude that the deterioration in operating cash flows and
liquidity is significantly more severe than S&P initially
estimated.
CITIGROUP INC: To Sell Redecard SA's 12% Stake
----------------------------------------------
Citigroup Inc. plans to sell a 12% stake in Redecard SA, through a
public offering that may raise more than BRL1.8 billion
(US$778 million) for the U.S. Bank, Paulo Winterstein of Bloomberg
News reports.
According to the report, the sale represents 82 million voting
shares and may be increased by an additional 8.3 million shares to
meet investor demand. Citigroup, the report relates, may also
sell a further 16.4 million shares should shareholder Banco Itau
Holding Financeira SA decide not to increase its stake.
Bloomberg News notes Chief Executive Officer Vikram Pandit is
shedding Citigroup’s businesses to free up capital after the bank
posted a record US$18.7 billion loss in 2008.
“Finding a strategic partner willing to invest R$2.1 billion of
its capital in the current market environment is a very difficult
task,” Credit Suisse AG analyst Marcello Telles wrote in a Feb. 27
note, the report says.
Redecard SA –- https://services.redecard.com.br/novoportal/ -- is
a Brazil-based company that provides credit and debit cards and
transaction-related services. The company’s product line includes
credit and debit cards, phone shop services, point of sale (POS)
electronic terminals used for electronic transactions, the
prepayment of credit card financial transaction settlements, bank
check verification services via POS, benefit card and private
label cards, among other services. Redecard captures, transmits
and processes transactions for merchants through credit cards,
such as MasterCard, MasterCard Electronic and Diners Club
International, and debit card, including MasterCard Maestro,
Maestro and RedeShop. Its main shareholders are Banco Citibank
SA, Banco Itaucard SA, Dibens Leasing SA Arrendamento Mercantil
and Unibanco Participacoes Societarias SA. As of November 18,
2008, the Company announced a strategic partnership with Cetelem
and MasterCard.
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.
MINERVA SA: S&P Puts 'B' Corporate Rating on Negative CreditWatch
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has placed its 'B'
corporate credit rating on Brazil-based beef producer Minerva S.A.
on CreditWatch with negative implications. The CreditWatch
placement reflects the recent deterioration of market and credit
conditions in the Brazilian beef industry. Minerva reported total
debt of $596.3 million as of Sept. 30, 2008.
"Brazilian beef producers are facing severe operational pressures:
longer receivable terms in export markets; fiercer competition in
the domestic market; low operating profitability and negative
operating cash flows, due to high cattle costs and difficult
cattle sourcing; and tight bank credit availability to Brazilian
beef companies, particularly so after a series of recent defaults
in the industry," said Standard & Poor's credit analyst Piero
Parolin.
In this challenging environment, Minerva is particularly exposed
to exports of fresh cuts, since about 70% of its total revenues
are derived from exports. Credit constraints in key export
markets such as Russia, Ukraine, and Iran have led to extended
receivable terms in these countries, putting further pressure on
working capital, even considering Minerva has required advances
from clients and that the company scaled back production in
fourth-quarter 2008 and early 2009. Although S&P believes
Minerva's liquidity is currently manageable and in excess of
short-term debt maturities, exposure to short-term debt is high,
posing refinancing risks late in 2009 and 2010. Even considering
that the company benefits from some operating flexibility (it
counts on higher capacity in deboning than in slaughtering), S&P
think the company's operating cash flows have been affected by the
current economic situation.
S&P also believes that Minerva's refinancing risk is somewhat
heightened due to its bond incurrence covenants, which would
restrict the company's ability to raise any additional debt other
than refinancing in the next few quarters. Minerva's total debt
to EBITDA and EBITDA interest coverage ratios were at 7.1x and
1.3x, respectively, as of Sept. 30, 2008. S&P expects these
figures to deteriorate through the end of 2009, because of the
currency depreciation on the company's predominantly U.S. dollar-
denominated debt position combined with weaker operating cash
flows--regardless of the positive effect the currency depreciation
has on Minerva's export profitability. On the other hand, Minerva
expects to receive funding from the Brazilian Development Bank and
Banco do Amazonas S.A., which may partially offset refinancing
risks in the next couple of months, but this does not provide the
company with relevant additional liquidity.
Despite the significant challenges currently faced by Brazilian
beef companies, S&P see positive factors developing that may
offset the negative trend. While still skittish, export markets
are showing some signs of recovery in February and March 2009,
suggesting that beef export volumes and prices may strengthen in
the coming quarters, reducing the competitive pressure within
Brazil's domestic market. This would also allow domestic beef
prices to rise, bringing the sector's profitability back in the
black. In addition to seasonal factors (which are expected to
increase cattle supply in the next few months), cattle costs are
also expected to decline, because a significant share of Brazil's
slaughtering capacity has been taken out of commission after
several companies shut down operations.
"In resolving the CreditWatch placement, S&P will evaluate these
developments in the company's internal and external markets, as
well as the future new credit availability conditions for the
Brazilian beef industry as a whole: the company's ability to
manage its leveraged capital structure; the impact of the balance
between beef supply and demand on Minerva's profitability; and the
firm's liquidity development and the resultant consequences on its
ability to face short-term obligations. S&P's current expectation
is that the ratings could be lowered by one notch if S&P confirm
that Minerva's cash flow trend will reduce liquidity until the end
of the year, posing refinancing pressures on Minerva late in 2009
and into 2010, provided that market conditions do not further
deteriorate," Mr. Parolin added.
MERILL LYNCH: Latin American Banker Gets US$7 Mln Bonus for 2008
----------------------------------------------------------------
Merrill Lynch & Co paid Latin American investment banker Alexandre
Bettamio, whom it poached from UBS AG, at least US$7 million in
guaranteed bonuses for 2008, Reuters reports, citing The Wall
Street Journal's sources.
According to the report, sources told the Journal that the firm's
investment bankers in Latin America, including Brazil, Mexico and
Argentina, earned revenue of about US$50 million through late
December, while piling up at least US$100 million in expenses,
most of them compensation-related.
Merrill Lynch & Co. Inc. -- http://www.ml.com/-- is a wealth
management, capital markets and advisory companies with offices in
40 countries and territories. As an investment bank, it is a
leading global trader and underwriter of securities and
derivatives across a broad range of asset classes and serves as a
strategic advisor to corporations, governments, institutions and
individuals worldwide. Merrill Lynch owns approximately half of
BlackRock, one of the world's largest publicly traded investment
management companies with more than $1 trillion in assets under
management. Merrill Lynch's operations are organized into two
business segments: Global Markets and Investment Banking (GMI) and
Global Wealth Management (GWM). GMI provides service global
markets and origination products and services to corporate,
institutional, and government clients around the world. GWM
creates and distributes investment products and services for
individuals, small- and mid-size businesses, and employee benefit
plans.
As reported by the Troubled Company Reporter on September 15,
2008, Merrill has had tens of billions of dollars worth of risky,
illiquid assets carried on balance sheets that were leveraged at a
debt-to-equity ratio of more than 20 to one in the past 15 months.
The Wall Street Journal said that when the crisis started, the
assets kept deteriorating in value and couldn't easily be sold,
eating into the firm's capital cushion. Merrill's balance sheet
topped US$900 billion recently, WSJ added. As reported by the TCR
on October 21, 2008, Merrill disclosed a net loss from continuing
operations for the third quarter of 2008 of US$5.1 billion,
compared with a net loss from continuing operations of US$2.4
billion for the third quarter of 2007. Merrill's net loss for the
third quarter of 2008 was US$5.2 billion, compared with a net loss
of US$2.2 billion, for the year-ago quarter.
==========================
C A Y M A N I S L A N D S
==========================
ANSUZ INVESTMENTS: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of Ansuz Investments met on Feb. 19, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Arnbjorn Ingimundarson
Vitki ehf., Laugavegi 3
101 Reyjavik, Iceland
BENNINGTON FINANCE: Members Receive Wind-Up Report
--------------------------------------------------
The members of Bennington Finance Limited met on February 19,
2009, and received the liquidators' report on the company's wind-
up proceedings and property disposal.
The Liquidators can be reached at:
Onson Mukwedeya
Christopher Bryan
Maples Finance Limited
P.O. Box 1093GT, Grand Cayman
Cayman Islands
FORTIS US ET AL: Liquidator Presents Wind-Up Report
---------------------------------------------------
On February 19, 2009, Giles Kerley and Jan Neveril presented the
companies' wind-up report and property disposal to the members of:
-- Fortis US Equity 130/30 Limited; and
-- Fortis US Equity 130/30 Master Fund Limited.
The Liquidators can be reached at:
Giles Kerley
Jan Neveril
Maples Finance Limited
P.O. Box 1093GT Grand Cayman
Cayman Islands
GLACIER SCS: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Glacier SCS GP Limited met on February 20,
2009, and received the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
HEDGE VISION: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Hedge Vision Japan Fund met on Feb. 20, 2009,
and received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Avalon Management Limited
Zephyr House, Third Floor
122 Mary Street
P.O. Box 715, Grand Cayman KY1-1107
Cayman Islands
INSTRATA CAPITAL: Shareholders Receive Wind-Up Report
-----------------------------------------------------
The shareholders of Instrata Capital met on Feb. 19, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Reid Services Limited
Clifton House, 75 Fort Street
P.O. Box 1350, Grand Cayman KY1-1108
Cayman Islands
IRON HORSE: Shareholder Receives Wind-Up Report
-----------------------------------------------
The shareholder of Iron Horse Offshore Capital Partners, Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal on February 18, 2009.
The company's liquidator is:
Ogier
c/o Jody Powery-Gilbert
Telephone: (345) 949-9876
Facsimile: (345) 945-8604
MM&E EVENT: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of MM&E Event Driven Offshore Fund met on
Feb. 20, 2009, and received the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
OPPORTUNITY OFFSHORE: Members Receive Wind-Up Report
----------------------------------------------------
The members of Opportunity Offshore Feeder Fund Ltd. met on
February 19, 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
OPUS SELECT ET AL: Liquidator Presents Wind-Up Report
-----------------------------------------------------
On February 26, 2009, Philip Hughes presented the companies' wind-
up report and property disposal to the members of:
-- Opus Select Strategies – Best Ideas Fund, Ltd.; and
-- Opus Select Strategies – Best Ideas Master Fund, Ltd.
The Liquidator can be reached at:
Philip Hughes
Telephone: 345 815-1402
Facsimile: 345 945-6265
PYLOS II: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of Pylos II Limited met on February 19, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ellen J. Christian
Piccadilly Cayman Limited
Telephone: 345 945-9208
Fax: 345 945-9210
c/o BNP Paribas Bank & Trust Cayman Limited
3rd Floor Royal Bank House
Shedden Road
George Town, Grand Cayman
ROBECO WPG: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of Robeco WPG Distressed/Special Situations
Overseas Fund Ltd met on Feb. 24, 2009, and received the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ogier
c/o Jody Powery-Gilbert
Telephone: (345) 949 9876
Facsimile: (345) 945 8604
SBG HOLDINGS: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of SBG Holdings (Cayman) Ltd. met on Feb. 20,
2009, and received the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
SEARCH EMPLOYEE: Shareholders Receive Wind-Up Report
----------------------------------------------------
The shareholders of Search Employee Participation Ltd met on
Feb. 23, 2009, and received the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Yan-Yan Li
Tel: (345) 949-2648
Fax: (345) 949-8613
c/o SAIL Advisors Ltd.
Cheung Kong Center, 57th Floor
2 Queen’s Road Central
Hong Kong
SEARCH MASTER: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Search Master GP Ltd. met on Feb. 23, 2009,
and received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Yan-Yan Li
Tel: (345) 949-2648
Fax: (345) 949-8613
c/o SAIL Advisors Ltd.
Cheung Kong Center, 57th Floor
2 Queen’s Road Central
Hong Kong
STONEGATE CREDIT ET AL: Liquidator Presents Wind-Up Report
----------------------------------------------------------
On February 18, 2009, Ogier presented the companies' wind-up
report and property disposal to the members of:
-- Stonegate Credit Opportunities Master Fund, Ltd; and
-- Stonegate Credit Opportunities Offshore Fund, Ltd.
The Liquidator can be reached at:
Ogier
c/o Jody Powery-Gilbert
Telephone: (345) 949-9876
Facsimile: (345) 945-8604
=========
C H I L E
=========
EMPRESAS IANSA: Fitch Downgrades Issuer Default Rating to 'B-'
--------------------------------------------------------------
Fitch Ratings has downgraded these ratings of Empresas Iansa S.A.:
-- Local Currency Issuer Default Rating to 'B-' from 'BB-';
-- Foreign Currency IDR to 'B-' from 'BB-';
-- Senior unsecured notes due 2012 to 'B+/RR2' from 'BB-';
-- National Scale Rating to 'BB- (chl)' from 'BBB-(chl)';
-- National Scale Equity Rating to Level 4 from Level 3.
All of the ratings remain on Rating Watch Negative. The rating
actions reflect Iansa's failure to meet projected improvements in
its financial results as of December 2008. Although Iansa was able
to strengthen its cash flow generation during the fourth quarter
of 2008 and reduced its leverage by 11% (in USD terms), Iansa's
financial debt/EBITDA ratio equaled 11.3 times (x), well above the
8.0x expected by Fitch given the scenarios presented by management
at year end 2008.
The Rating Watch Negative reflects Iansa's tight liquidity
position, with 55% of its debt concentrated in short-term lines of
credit which are generating increased financial expenses. Over the
near term, the assigned ratings could be negatively pressured
further if Iansa's sugar and juice concentrate businesses do not
show improvement over the next few months as this could hinder
efforts to reduce short-term debt levels and boost liquidity.
Fitch has assigned an 'RR2' Recovery Rating to Iansa's Yankee
Bond, indicating that in the event of financial difficulties
Iansa's unsecured notes have an expected average recovery level of
between 71%-90%. This rating reflects Fitch's methodology which
includes a recovery analysis when the assigned IDR of an issuer
falls below 'B+'.
During 2008, Iansa's EBITDA reached US$18.1 million, 43% below the
previous year's total. A significant reduction in its sugar output
adversely affected the profitability of its sugar and sub-products
businesses, which accounted for 51% of sales. Iansa offset a
portion of the sugar production shortfall through lower margined
imports and the resale of sugar. The profitability of sugar
operations was also affected by increased energy and labor costs.
Juice concentrates, which accounted for 18% of sales, recorded
operational losses during 2008. These were principally attributed
to a mismatch between raw material purchases and product sales.
Iansa's financial debt totaled US$205 million as of year end 2008,
compared to US$108 million as of Dec. 31, 2007. The increase in
leverage is mainly attributed to the incorporation of short-term
obligations during the first quarter of 2008 following the merger
of its juice concentrate business, as well as higher working
capital requirements in this segment due to increased raw material
costs and shipping delays. Iansa's US$100 million Yankee Bond due
in 2012 accounts for the majority of its long-term debt. Iansa has
repurchased approximately US$13 million of this bond.
Although Iansa's cash balances totaled US$39 million at year end
2008, liquidity remains very tight as US$82 million of Iansa's
debt is associated with short-term banking credit facilities. It
is important to note that affiliate Patagoniafresh accounts for
US$48 million of these lines and that its leverage indicators
exceed the terms set by one of the banks, raising concerns
regarding the ease of renewing these credit lines. Iansa's
liquidity has also been pressured by increasing interest expenses
(US$13 million in 2008 versus US$8 million in 2007). The
EBITDA/interest expense ratio fell to 1.4x as of year end 2008,
compared to 3.9x during the same period in 2007. The Yankee Bond
coverage ratio requirement of 2.4x was in compliance as of year
end 2008. If Iansa is not be able to meet this requirement,
Iansa's will be subject to various restrictions, including
limitations on additional leverage, dividends levels and capital
expenditures.
Although the sale of Patagoniafresh's inventories, totaling 3.5
million gallons, could ease liquidity concerns during the first
semester of 2009, Iansa will have to address peak working capital
requirements during the third quarter. Though management projects
a significant improvement in Patagoniafresh's financial results
this year, the 40% increase in price paid to beet producers this
season could pressure the business unit's profitability, affecting
consolidated operating cash flows. As a result, Fitch expects
Iansa to have limited success reducing overall debt levels by year
end 2009 and, thus, posting only slightly improved credit
protection indicators to those recorded at year end 2008.
Iansa is the sole producer of sugar in Chile, which is
complemented by sugar subproducts (coseta and molasses), animal
feed and agricultural supplies. The non-sugar businesses include:
i) juice concentrate for the export market under a joint-venture
with Cargill and Jucosa (Patagoniafresh S.A.); ii) tomato paste in
Peru (Icatom S.A.); iii) pet food; and iv) vegetable oil, both
under the subsidiary Iansagro S.A. Iansa's property is
concentrated in ED&F Man, a sugar trader based in England, which
indirectly owns 27.4% of the company's stock.
===========
G U Y A N A
===========
CL FIN'L: Clico Guyana Has Investment in Bahamas, Minister Says
---------------------------------------------------------------
Guyana Finance Ministry received documents from the Judicial
Manager of CLICO Guyana showing an existing relationship between
CLICO Life and General Insurance Company South America Limited
(CLICO Guyana) and CLICO Bahamas Limited and its predecessor
British Fidelity Assurance, Caribbean Net News reports, citing
Minister of Finance Minister Ashni Singh.
According to the report, Mr. Singh said the documents provided a
transparent paper trail of transactions at every stage of the
investment with instructions to several local banks for wire
transfers to CLICO Bahamas. Additional proof was also provided
from annuity instruments and certificate of deposits along with
other correspondence as evidence of an existing relationship, he
said.
The report relates Mr. Singh said that the Ministry had also
received from CLICO Guyana through its Judicial Manager details
such as names and telephone numbers of contact persons, e-mails,
pertinent in the execution and discharge of a financial investment
in CLICO Bahamas.
As reported in the Troubled Company Reporter-Latin America on
March 5, 2009, Caribbean Net News said Bahamas Prime Minister
Hubert Ingraham told Guyana President Bharrat Jagdeo, that there
seems to be no record that the Guyana government has invested 53%
of CLICO Life and General Insurance Company South America Limited
(CLICO Guyana) assets in Clico (Bahamas) Limited.
According to Caribbean Net News, Mr. Ingraham did acknowledge that
Guyana's claim does, however, this represent a very serious
potential impairment for the Guyana operations given that it has
place its operation into judicial management.
Trinidad and Tobago Newsday said the Guyana government has placed
CLICO Guyana's operations under judicial management prior to
winding up of the company. The government's move, the report
related, follows the liquidation of Clico (Bahamas), which has a
51% stake in CLICO Guyana.
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.
=============
J A M A I C A
=============
JPSCO: Delays Submission of Tariff Adjustment
---------------------------------------------
The Jamaica Public Service Company (JPSCO) delayed submitting its
application for a tariff adjustment to the Office of Utilities
Regulation (OUR), Radio Jamaica News reports. The power company,
the report relates, was scheduled to submit its application on
March 6, after the March 1 deadline.
However, JPS advised OUR that a formal application for a tariff
adjustment would be made by March 9.
As reported in the Troubled Company Reporter-Latin America on
March 9, 2009, Radio Jamaica said JPSCO may shutdown its
operations if the company fails to settle a long-standing dispute
over outstanding payments to employees. The same report related
employees unions contend that the payments are owed for overtime
work and redundancy adjustments from 2001 to 2007, which amounts
to about $600 million.
CABLE & WIRELESS: LIME Faces $1.7 Billion Digicel Suit
------------------------------------------------------
Lime (formerly Cable & Wireless Jamaica) has informed the Jamaica
Stock Exchange that Digicel has filed a suit claiming $1.7
billion, Radio Jamaica reports.
The report relates the suit is in regard to a $1.4 billion that
LIME said is lawfully retained in accordance with the Office of
Utilities Regulation approved regulatory regime, which took effect
in 2001 when Digicel first interconnected with LIME.
Regarding the remaining $300 million, the report notes, LIME said
this relates to its "homefone" service.
However, the report says Digicel is claiming it as revenue for the
differential paid by LIME landline customers.
Lime (formerly Cable & Wireless Jamaica) --
http://home.cwjamaica.com/ -- is a provider of national and
international fixed line services. The company is owned 82% by
Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica
Digiport International Limited, a company which provides high
speed data and other telecommunications services exclusively to
freezone and offshore companies.
About Cable & Wireless
Headquartered in London, England, Cable & Wireless plc --
http://www.cw.com/-- is an international telecommunications
company. The Company offers mobile, broadband and domestic and
international fixed line services to homes, small and medium-sized
enterprises, corporate customers and governments. It operates in
39 countries through four major operations in the Caribbean,
Panama, Macau and Monaco & Islands. It operates through two
businesses: International and Europe, Asia & US. Its
International business operates full service telecommunications
companies through four major operations in the Caribbean, Panama,
Macau and Monaco and Islands. Its Europe, Asia & US provides
enterprise and carrier solutions to the largest users of telecom
services across the United Kingdom, continental Europe, Asia and
the United States. Its subsidiaries include Cable & Wireless UK,
Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable &
Wireless (Barbados) Ltd and Monaco Telecom SAM.
* * *
According to Bloomberg data, Cable & Wireless plc continues to
carry Moody's "Ba3" long-term corporate family rating, "B1" senior
unsecured debt rating and "Ba3" probability of default rating with
a stable outlook.
The company continues to Standard & Poor's "BB-" long-term foreign
and local issuer credit ratings and "B" short-term foreign and
local issuer credit ratings.
===========
M E X I C O
===========
CEMEX SA: Starts Debt Renegotiation Talks After Bond Sale Delay
---------------------------------------------------------------
Cemex S.A.B. de C.V started discussions with banks to renegotiate
about US$14.5 billion of debt after postponing its bond sale,
Thomas Black of Bloomberg News reports.
Company spokesman Jorge Perez, the report relates, said the
US$14.5 billion is all of Cemex’s bank debt and doesn’t include
any bonds. At the end of December, Cemex had total debt of
US$18.8 billion, the same report notes.
As reported in the Troubled Company Reporter-Latin America on
March 10, 2009, Bloomberg News said Cemex S.A.B. delayed a US$500
million bond sale after its borrowing costs surged amid a tumble
in global financial markets, with plans to revive the offering as
early as next week. The cost of protecting Cemex’s debt against
default jumped on March 6, to the highest since at least November
2005, according to Bloomberg data.
Reuters recalled Cemex has been slammed by debt problems after its
ambitious Rinker takeover in 2007, slumping sales, and losses on
derivatives amid turmoil caused by the global credit debacle.
Carlos Hermosillo, an equity analyst with the Mexico City-based
brokerage Vector Casa de Bolsa, as cited by Bloomberg News, said
the debt refinancing will be “more complicated” than the US$4
billion transaction that Cemex announced in January with its five
lead banks. “When you’re talking about amounts this size, it
almost no longer becomes voluntary,” Bloomberg News quoted Mr.
Hermosillo as saying.
Mr. Hermosill, the report notes, said that banks will now be “more
motivated” to roll over debt on concern that failure to do so
could push the company into default. “None of the banks wants to
take legal action.”
About Cemex
Headquartered in Mexico, Cemex S.A.B. de C.V. --
http://www.cemex.com/-- is a growing global building solutions
company that provides high quality products and reliable service
to customers and communities in more than 50 countries throughout
the world, including Argentina, Colombia and Venezuela.
Commemorating its 100th anniversary in 2006, Cemex has a rich
history of improving the well-being of those it serves through its
efforts to pursue innovative industry solutions and efficiency
advancements and to promote a sustainable future.
* * *
As reported by the Troubled Company Reporter-Latin America on
November 26, 2008, Fitch Ratings downgraded Cemex, S.A.B. de
C.V.'s 'BBB-' foreign currency Issuer Default Rating to 'BB+';
'BBB-' local currency IDR to 'BB+'; and 'BBB-' Senior unsecured
debt obligations to 'BB+'. The Rating Outlook is Negative.
According to Fitch, the rating actions reflect weaker than
expected operating results and higher leverage levels than
previously anticipated due to economic weakness in most of the
company's important markets.
CEMEX SAB: Fitch Downgrades Currency Issuer Default Ratings to 'B'
-----------------------------------------------------------------
Fitch Ratings has downgraded Cemex, S.A.B. de C.V. (Cemex) and
related entities' ratings:
Cemex
-- Foreign currency Issuer Default Rating (IDR) to 'B' from
'BB';
-- Local currency IDR to 'B' from 'BB';
-- Long-term national scale rating to 'BB-(mex)' from 'A+
(mex)';
-- MXN5 billion Certificados Bursatiles program to 'BB- (mex)'
from 'A+ (mex)';
-- MXN30 billion Programa Dual Revolvente de Certificados
Bursatiles program to 'BB-(mex)' from 'A+(mex)';
-- Senior unsecured debt obligations to 'B+/RR3' from ‘BB’;
-- Unsecured debt issued through the Certificados Bursatiles
program to 'BB-(mex)' from 'A+(mex)';
-- Short-term national scale rating to 'B (mex)' from
‘F1(mex)’;
-- MXN2.5 billion short-term portion of Programa Dual
Revolvente de Certificados Bursatiles program to ‘B (mex)’
from 'F1(mex)'.
Cemex Espana S.A. (Cemex Espana)
-- IDR to 'B' from 'BB';
-- Senior unsecured debt obligations to 'B+/RR3’ from 'BB'.
Rinker Materials Corporation
-- US$150 million senior unsecured notes due 2025 to 'B+/RR3’
from 'BB'.
Fitch has placed all of these ratings on Rating Watch Negative.
The rating downgrades follows Cemex’s announcement that it has
indefinitely postponed its capital markets transaction and that it
has initiated negotiations with its core banks to renegotiate its
bank debt in order to boost near-term liquidity and extend debt
maturities coming due primarily with its banks. The ‘B’ and ‘BB-
(mex)’ ratings reflect Cemex’s high leverage, deteriorating
economic conditions, poor liquidity and limited access to the
capital markets. Balanced against this high level of risks is
consideration for the support Cemex has received from the
government and its bank groups.
The Rating Watch Negative underscores the challenges Cemex will
face as it seeks to renegotiate with banks in a manner that will
allow it to meet its debt coming due over the next few months. If
successful, Cemex’s risk will remain high until it reaches a
broader agreement with the banks that will allow it to lengthen
the maturity schedule of a significant portion of its debt that
comes due in 2009, 2010 and 2011. The Rating Watch Negative also
incorporates the heightened volatility in the market during the
past couple of weeks and a view that the macro-economic situation
faced by Cemex could worsen beyond Fitch’s forecasted EBITDAR of
around US$3.4 billion.
Cemex had total adjusted debt of US$23 billion as of Dec. 31, 2008
and cash and marketable securities of US$993 million; adjusted
debt includes total debt plus perpetual debt and operating leases.
During 2008, Cemex generated US$4.6 billion of EBITDAR, resulting
in a total adjusted debt to EBITDAR ratio of about 5.0 times (x).
During the fourth quarter of 2008 Cemex's EBITDAR declined to
about US$860 million from about US$1.35 billion during the prior
quarter. Factoring in seasonality, the numbers were still
substantially lower than those during the last quarter of 2007,
when Cemex's EBITDAR was US$1.15 billion. The drop-off in EBITDAR
was driven by steep declines in sales volumes and the devaluation
of the Mexican peso, British pound and Euro versus the U.S.
dollar. Cemex’s debt maturities during the second, third and
fourth quarter of 2009 are US$473 million, US$428 million and
US$2.2 billion. In 2010 and 2011, Cemex faces debt amortizations
of US$3.8 billion and US$7.8 billion, respectively.
About Cemex
Cemex is the third-largest cement producer in the world based on
production capacity of approximately 97 million metric tons and
operates in more than 50 countries. The company is also the
global leader in the ready mix concrete market with sales of over
80.5 million cubic meters, and an important global player in the
aggregates business with sales of 222.7 million tons. In 2008,
Cemex generated US$4.370 billion of EBITDA on US$21.8 billion of
sales revenues.
MAXCOM TELECOM: Names William Nazaret as Chief Operating Officer
----------------------------------------------------------------
Maxcom Telecomunicaciones S.A.B. de C.V. has appointed William
Nazaret as Maxcom's Chief Operating Officer, effective immediately
and will report directly to Maxcom's CEO, Eduardo Vazquez.
"The leadership change that we are announcing will be a strong
addition to the extraordinary depth of talent and experience that
we enjoy throughout Maxcom. Mr. Nazaret has the kind of
background that will help strengthen our position in the
marketplace and across our network," said Eduardo Vazquez,
Maxcom's Chairman of the Board and Chief Executive Officer.
"His expertise in telecom and technology, as well as the insights
he brings to strategy and planning, represent key requisites for
this juncture of our Company as we continue to focus on
profitability and enhancing our commitment to quality."
Mr. Nazaret was most recently Director of Brightstar Corporation.
Prior to that, he served as Chief Executive Officer and President
of Central America for Digicel in El Salvador; and Chief Executive
Officer and President of Digitel in Venezuela. Earlier in his
career, Mr. Nazaret served as Chief Executive Officer of
Intellisense in the United States, Vice President of Time Warner
Cable, Senior Information Technology Sales Executive for Sun
Microsystems, Chief Technology Officer for ECCS and Technical
Staff Member for AT&T Bell Laboratories. He began his career at
the Massachusetts Institute of Technology as a Faculty Member.
Mr. Nazaret has a Master's Degree and Ph.D. in Statistical
Computing from the University of California at Berkeley and has a
Bachelor's Degree from Universidad Simon Bolivar in Venezuela.
About Maxcom
Headquartered in Mexico City, Mexico, Mexico Maxcom
Telecomunicaciones S.A.B. de C.V. -– http://www.maxcom.com.mx/--
is a facilities-based telecommunications provider using a "smart-
build" approach to deliver last-mile connectivity to micro, small
and medium- sized businesses and residential customers in the
Mexican territory. Maxcom launched commercial operations in May
1999 and is currently offering local, long distance, data, value-
added, CATV and IP-based services on a full basis in greater
metropolitan Mexico City, Puebla, Tehuacan, San Luis, and
Queretaro, and on a selected basis in several cities in Mexico.
MAXCOM TELECOMUNICACIONES: S&P Affirms 'B' Corporate Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Mexico City-based Maxcom Telecomunicaciones S.A.B. de
C.V. to stable from positive. At the same time, S&P affirmed its
'B' long-term corporate credit rating and its 'B' senior secured
debt rating on Maxcom. The recovery rating of '3' in not
affected.
"The outlook revision reflects the deterioration in the company's
profitability as a result of the weakening of the Mexican peso,
since 30% of its network costs and 8% of its expenses are exposed
to the U.S. dollar. Increased bad-debt expenses, higher long-
distance and TV programming content costs, and lower voice average
revenues per unit also influenced the rating action," said
Standard & Poor's credit analyst Marcela Duenas. Furthermore, the
decline in profitability has increased the company's leverage and
has heightened the risk of a covenant breach in Maxcom's senior
secured notes. However, a breach of this covenant will only limit
the company's ability to incur additional indebtedness.
The 'B' rating on Maxcom reflects S&P's concerns about the
greater-than-expected impact of Mexico's economic downturn on the
company's operations, particularly the softening of its revenue
and EBITDA growth. Maxcom also faces strong competition from
wireline and fixed wireless local telephone operators, mobile
telephony, and cable operators. In addition, frequent management
changes continue to be a rating factor, such as the recent
departure of the CEO.
Maxcom's adequate liquidity; its complete offering of telecom
services, including third-party wireless phone services and video
on its network; its "triple-play" and "quadruple-play" bundled
packages at very competitive prices; its network expansion
strategy, which is based on building clusters (meaning the network
is completed first in one geographic area and then spread to
another); and its expertise in managing customer credit partially
mitigate the weaknesses.
An early mover when offering new services, local access provider
Maxcom is basically a voice-driven, middle- to low-income
residential and small and midsize enterprise-oriented company.
Its growth strategy is based on clusters, and it offers packages
at competitive prices relative to the incumbent's regulated
nationwide prices. The company is the smallest of the three
significant local-access providers in the country, with 365,312
voice revenue generating units and total RGUs of 474,534 as of
December 2008. Maxcom has a local presence in the cities of
Mexico City, Puebla, Querétaro, Tehuacan, and San Luis Potosí.
The stable outlook reflects that, notwithstanding the current
downturn in the Mexican economy, the company's liquidity is
sufficient to support Maxcom's operations and debt service
obligations during 2009. S&P could revise the outlook to negative
if the company maintains a high cash burn during 2009, limiting
its financial flexibility. On the other hand, demonstration that
the company can limit its cash burn, improve its EBITDA margin
toward 30%, and achieve a total debt-to-EBITDA ratio close to 3x
would support an outlook revision to positive.
===============================
T R I N I D A D & T O B A G O
===============================
CL FINANCIAL: Chairman Spends US$1.5 Billion on Florida Properties
------------------------------------------------------------------
It was found out that CL Financial Limited Chairman Lawrence
Duprey has bought or developed a dozen properties; and spent an
estimated US$1.5 billion in several properties in Florida for the
last five years, Oscar Ramjeet of Caribbean Net News reports,
citing the Trinidad Guardian.
The Guardian, the report relates, said Mr. Duprey's Florida
company called DYL Development Group, which in 2005 announced more
than US$1 billion in new development in South Florida, has
undertaken these projects:
* 50-storey condominium project called Infinity at Brickell,
which has 459 residences and is located on Brickell Avenue;
* 69-storey office office/condominium complex with 550
residences called Infinity II on Brickell Avenue;
* twin 23-storey towers comprising 345 hotel rooms and 171
condominium residences for a hotel in Fort Lauderdale; and
* 50 unit luxury high-rise oceanfront condominium complex in
Fort Lauderdale, where the prices ranged from US$900,000 to
more than US$2 million.
According to the report, Mr. Duprey also brought 121,533 square
feet of motel buildings in Fort Lauderdale, which was bought by
Capri Resorts LLC for US$35 million in 2005. The investment,
Caribbean Net News relates, appeared in the CL Financial annual
report in 2004 as an associated company, with CL Financial holding
a 26.88% interest. However, the investment did not appear in the
CL Financial annual reports after 2005 and there is no mention of
it being sold, the report notes.
Caribbean Net News, citing The Guardian, says Mr. Duprey purchased
a 1.98 acre parcel of land in Broward County in 2008, through a
company called Dalco Properties, which Mr. Duprey and Winston Fifi
were the officers in 2000, while Duprey, his wife Sylvia Baldini
and Andrew Gross were listed as the officers of the company in
2008.
In 2008, Caribbean Net News recalls, the CL Financial group spent
US$300 million buying 6,000 acres of land that is described as
"rural" in Osceola County in Florida.
Caribbean Net News adds that in 2004, another company by Mr.
Duprey, Colonial Development, received a loan of US$45.6 million
from Chicago-based Corus Bank for the Europa By-The-Sea project.
In 2006, the same bank lent an affiliate of DYL Development US$140
million on the Infinity at Brickwell property in 2005, the report
says. Florida court records, the report relates, indicate that
the mortgage was amended eight times between 2005 and December
2007, when the loan's maturity was extended, with US$6 million
outstanding, DYL is required to pay US$2 million up front, plus a
US$100,000 extension fee and US$1 million each quarter, with the
total due last Feb. 29, 2009.
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.
* TRINIDAD & TOBAGO: To Give Out VSEP to 2,000 Gov't Employees
--------------------------------------------------------------
Trinidad and Tobago Finance Ministry has made plans to offer
Voluntary Employee Separation Packages (VSEP) to 2,000 employees
of Board of Inland Revenue (BIR) and the Customs and Excise
Division, Oscar Ramjeet of Caribbean Net News reports.
"We did a kind of cursory number and it looks as though it might
in the vicinity of $300 million and $350 million to be paid out,”
Finance Minister Karen Nunez-Tesheira was quoted by the report as
saying.
According to the report, citing the Trinidad Express, Ms. Nunez-
Tesheira said that while "automatic transfer" for those employees
to the Trinidad and Tobago Revenue Authority (TTRA) had been
explored, it was not a option. The laid off workers will “get an
opportunity to re apply" and once they met the required criteria
most of them will be hired to work for the TTRA, she said.
=================
V E N E Z U E L A
=================
PDVSA: Signs Temporary Deal to Develop LNG Trains
-------------------------------------------------
Petroleos de Venezuela will spend around US$200 million this year
following the signing of temporary agreements to advance the
formation of two JVs that will develop LNG trains, Business News
Americas reports. The projects are being developed under the
Delta Caribe Oriental plan.
Business News Americas relates the temporary agreements will be in
place while the companies conduct initial engineering and also
negotiate both natural gas purchases and LNG sales.
The company, the report notes, said the two JVs will be charged
with the design, construction and operation of the two trains in
addition to the supporting pipelines.
According to the report, the first train will have an investment
of US$6.4 billion. PDVSA, the report notes, will hold a 60% stake
in the joint venture, Portugal's Galp will hold 15%, Chevron 10%
and Japan's Mitsubishi-Mitsui a 5% stake.
Business News Americas relates PDVSA will also have a 60% stake in
the JV formed to develop the second train, Galp with a 15% stake,
Argentina's state energy company Enarsa 10%, Mitsubishi-Mitsui 5%
and Japan's Itochu 10%. A total of US$5.2 billion will be spent
to develop the second train, the report says.
The report says the first LNG train, with an annual capacity of
4.7Mt, will use gas from the Plataforma Deltana's block 2, while
the second train, with the same annual capacity, will use gas from
PDVSA's Mariscal Sucre field.
PDVSA, the report says, is also developing a third train with
various partners.
About Petroleos de Venezuela
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.
===============
X X X X X X X X
===============
* Brown Rudnick Gets “Deal of the Year” Award From Latin Lawyer
---------------------------------------------------------------
The publishers of Latin Lawyer magazine recognized the
international law firm of Brown Rudnick for its role as legal
counsel to the Ad Hoc Committee of Bondholders of the Cerro Negro
heavy oil project in Venezuela, owned in a joint venture by
subsidiaries of ExxonMobil, BP, and Petróleos de Venezuela, S.A.
The “Deal of the Year” award specifically acknowledges the
successful resolution of the Cerro Negro oil restructuring case.
On behalf of the Ad Hoc Committee of Cerro Negro Bondholders,
Brown Rudnick successfully negotiated to obtain full payment on
the bonds, including interest and a premium. The deal was
structured as a tender offer in which 99.11% of bonds were sold by
clients and other bondholders to PDVSA at a purchase price
exceeding US$500 million – equivalent to par, plus accrued
interest, plus a significant premium.
In representing its client, Brown Rudnick formed a
multidisciplinary team of attorneys from the Firm’s bankruptcy,
finance, corporate and litigation practices. The legal team was
led by Edward Weisfelner (Chair, Bankruptcy and Corporate
Restructuring), Sigmund Wissner-Gross (Partner, Litigation),
Andrew P. Strehle (Partner, Finance), Philip J. Flink (Partner,
Corporate), and Robert L. Murray (Partner, Corporate), with
support from 40 other attorneys, paralegals and administrative
staff.
Latin Lawyer Magazine's independent team of journalists provides
news and analysis of deals, cases and legal, practice management
and policy developments across the region, alongside interviews
with key private practice, in-house and government lawyers
influencing those developments. The team also researches the
LATIN LAWYER 250 - Latin America's leading business law firms, an
annual review of the legal marketplace in 18 national Latin
American jurisdictions, complete with analysis of the Latin
American practices of international law firms.
About Brown Rudnick LLP
Brown Rudnick -- http://www.brownrudnick.com-- is an
international law firm with offices in the United States and
Europe. The firm represents clients from around the world,
providing business-focused solutions that address today’s ever-
changing, ever-demanding competitive marketplace. With an
entrepreneurial and collaborative mindset, Brown Rudnick offers a
broad slate of capabilities and talents in areas that include:
Bankruptcy & Corporate Restructuring, Finance, Complex Litigation,
Corporate & Securities, Energy, Government Law & Strategies,
Health Law, Intellectual Property and Real Estate.
***********
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 * * *