/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090313.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, March 13, 2009, Vol. 9, No. 51 Headlines A N T I G U A & B A R B U D A STANFORD GROUP: Receiver Sues N.Y. Landlord for Ending Lease STANFORD INT'L BANK: Stanford Group Cuts 170 Jobs in Florida A R G E N T I N A APRINTA SA: Proofs of Claim Verification Due on May 4 GLOBAL MEDIC: Trustee Verifying Proofs of Claim Until April 16 MASTERING SA: Proofs of Claim Verification Due on April 23 MUTUAL AGUA: Asks for Opening of Preventive Contest V8 BAR: Trustee Verifying Proofs of Claim Until May 4 B A H A M AS CL FINANCIAL: Bahamas Has US$23 Mln Annuities Tied to Clico B E R M U D A CHASE RE: Creditors' Proofs of Debt Due on March 25 CHASE RE: Members' Meeting Set for April 15 EUROPEAN TECHNOLOGY: Creditors' Proofs of Debt Due on March 25 EUROPEAN TECHNOLOGY: Members' Meeting Set for April 15 EUROPEAN TECHNOLOGY: Creditors' Proofs of Debt Due on March 25 EUROPEAN TECHNOLOGY: Members' Meeting Set for April 15 KIC LTD: Supreme Court Enters Wind-Up Order C A Y M A N I S L A N D S BRAC 2: Placed Under Voluntary Liquidation CHARLEMAGNE CAPITAL: Commences Wind-Up Proceedings DD ACQUISITION ET AL: Commences Liquidation Proceedings DD 2 ACQUISITION: Commences Liquidation Proceedings ECONERGY GRAND: Placed Under Voluntary Wind-Up EOC CORP VI: Commences Wind-Up Proceedings EOC CORP: Creditors' Proofs of Debt Due on March 18 GLAUX INVESTMENTS: Commences Wind-Up Proceedings HARBOR DRIVE: Commences Wind-Up Proceedings INVESTCORP INTERLACHEN ET AL: Commences Liquidation Proceedings MIDAS FUND: Commences Liquidation Proceedings P7S1 MANAGEMENT: Placed Under Voluntary Wind-Up PENGANA ABSOLUTE: Commences Wind-Up Proceedings RAMIUS FIXED: Placed Under Voluntary Liquidation RAMIUS OPPORTUNISTIC: Placed Under Voluntary Liquidation SATURN INC: Commences Wind-Up Proceedings SS7 HOLDINGS: Commences Liquidation Proceedings TUTSAN INVESTMENTS: Commences Wind-Up Proceedings ZS CAYMAN: Placed Under Voluntary Wind-Up * CAYMAN ISLANDS: Lawyers Say Toxic Asset Funds Increasing C H I L E CSAV: Shares Plunge to 6-Year Low on Debt Payment Concerns C O L O M B I A BANCOLOMBIA: Falls One-Week Low as BofA Cuts Shares to “Neutral” BANCOLOMBIA: Posts Ps. 177.1 Billion Net Income in February E C U A D O R * ECUADOR: Loan Default Hinders Bank Financing, Pres. Correa Says J A M A I C A JCSA: Independent Auditor to Probe Financial Affairs M E X I C O CEMEX SAB: Shares Hit One Month High on Refinance Optimism N E T H E R L A N D S A N T I L L E S WINAIR: To End Flights to St Kitts by End of March T R I N I D A D & T O B A G O CL FINANCIAL: Gov't to Borrow More to Rescue Company CL FIN'L: Finance Minister Closed CLICO Accounts Before Melt Down V E N E Z U E L A PDVSA: To Continue Paying Debts After Revision of Tariffs - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD GROUP: Receiver Sues N.Y. Landlord for Ending Lease ------------------------------------------------------------ Ralph Janvey, the court-appointed receiver for companies controlled by Texas financier R. Allen Stanford, sued a New York landlord to assert "wrongful termination" of a lease for Stanford Group Co.'s midtown Manhattan offices, Carla Main of Bloomberg said. The Bloomberg report said that the complaint filed March 6 in New York State Supreme Court said that Stanford leased four floors from the landlord, 330 Madison Co., beginning in February 2005. 330 Madison claimed March 3 that Stanford was in default and was terminating the lease. Mr. Janvey, however, asserts that the lease has not expired and has important economic value to the receivership estate. About Stanford Group 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 Robert Allen 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. 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. STANFORD INT'L BANK: Stanford Group Cuts 170 Jobs in Florida ------------------------------------------------------------ Stanford Financial Group laid off more than 170 workers in Florida, Jamaica Gleaner reports. The report relates the Florida State Department of Labour said most of the affected jobs were based in Miami, where 95 people were sent home from the firm's downtown office. According to the report, disclosures filed on March 9 showed 46 employees were also sent home from offices in Boca Raton, and smaller numbers in Fort Lauderdale, Vero Beach, Longboat Key and Orlando. The labour department, the report notes, said the layoffs took effect on March 6. 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 Robert Allen 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. 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. ================= A R G E N T I N A ================= APRINTA SA: Proofs of Claim Verification Due on May 4 ----------------------------------------------------- Carlos Bavio, the court-appointed trustee for Aprinta SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 4, 2009. Mr. Bavio will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 22 in Buenos Aires, with the assistance of Clerk No. 44, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Carlos Bavio Pavon 4374 Buenos Aires, Argentina GLOBAL MEDIC: Trustee Verifying Proofs of Claim Until April 16 -------------------------------------------------------------- The court-appointed trustee for Global Medic S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until April 16, 2009. The trustee will present the validated claims in court as individual reports on June 4, 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 17, 2009. MASTERING SA: Proofs of Claim Verification Due on April 23 ---------------------------------------------------------- Mario Cabrosi, the court-appointed trustee for Mastering SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until April 23, 2009. Mr. Cabrosi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 4 in Buenos Aires, with the assistance of Clerk No. 7, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Mario Cabrosi Cramer 2111 Buenos Aires, Argentina MUTUAL AGUA: Asks for Opening of Preventive Contest --------------------------------------------------- Mutual Agua y Energia Electrica Capital Federal asked for the opening of preventive contest. V8 BAR: Trustee Verifying Proofs of Claim Until May 4 ----------------------------------------------------- The court-appointed trustee for V8 Bar S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until May 4, 2009. The trustee will present the validated claims in court as individual reports on June 17, 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 August 13, 2009. ============ B A H A M AS ============ CL FINANCIAL: Bahamas Has US$23 Mln Annuities Tied to Clico ----------------------------------------------------------- Bahamian professionals, religious leaders, businesses, churches and two government entities - Bahamasair and the Broadcasting Corporation Of The Bahamas - collectively have US$23 million in annuities tied up in CLICO Bahamas Limited, a unit of CL Financial Limited, Nassau Guardian reports. According to the report, employees of the Broadcasting Corporation have nearly US$800 000 of pension money at stake in CLICO, while employees of Bahamasair have tied up nearly US$3 million in annuities. Nearly 400 annuities are on CLICO’s books, The Guardian notes. As reported in the Troubled Company Reporter-Latin America on Feb. 27, 2009, CaribWorldNews said the Bahamian Supreme Court granted a request from the islands government to liquidate Clico Bahamas for the protection of company shareholders. Craig Gomez of Baker Tilley Gomez was appointed as the liquidator of the company, according to CaribWorldNews. The Guardian relates people who invested in annuities in the company are said to be deeply concerned about whether they will get a return on their investments, or get back the money they put in. The Guardian recalls one week ago, Prime Minister Hubert Ingraham said it was too early to tell whether policyholders would lose any money as a result of the winding up of CLICO, noting “discussions that will be held between the liquidator and the local insurers [prospective buyers] will include benefits for both policyholders and annuity depositors.” Mr. Ingraham however later pointed out that annuity holders “are not likely to be as favourably rewarded at the end of the day as some other policyholders”, The Guardian notes. 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. ============= B E R M U D A ============= CHASE RE: Creditors' Proofs of Debt Due on March 25 --------------------------------------------------- The creditors of Chase Re Limited are required to file their proofs of debt by March 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 6, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda CHASE RE: Members' Meeting Set for April 15 ------------------------------------------- The members of Chase Re Limited will hold their final general meeting on April 15, 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 6, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda EUROPEAN TECHNOLOGY: Creditors' Proofs of Debt Due on March 25 -------------------------------------------------------------- The creditors of European Technology Ventures Atlantic Limited are required to file their proofs of debt by March 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 4, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda EUROPEAN TECHNOLOGY: Members' Meeting Set for April 15 ------------------------------------------------------ The members of European Technology Ventures Atlantic Limited will hold their final general meeting on April 15, 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 4, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda EUROPEAN TECHNOLOGY: Creditors' Proofs of Debt Due on March 25 -------------------------------------------------------------- The creditors of European Technology Ventures International Limited are required to file their proofs of debt by March 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 4, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda EUROPEAN TECHNOLOGY: Members' Meeting Set for April 15 ------------------------------------------------------ The members of European Technology Ventures International Limited will hold their final general meeting on April 15, 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 4, 2009. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda KIC LTD: Supreme Court Enters Wind-Up Order ------------------------------------------- On March 6, 2009, the Supreme Court entered an order to have KIC Ltd's operations wound up. Mark W. R. Smith of Deloitte & Touche was appointed as provisional liquidator. ========================== C A Y M A N I S L A N D S ========================== BRAC 2: Placed Under Voluntary Liquidation ------------------------------------------ On October 29, 2008, the sole shareholder of Brac 2 Company resolved to voluntarily liquidate the company's business. The company's liquidators are: Max Lever Stephen Marquardt c/o Matthew Goucke Walkers Walker House, 87 Mary Street, George Town Grand Cayman KY1-9001, Cayman Islands Tel: 345 914-6332 Fax: 345 814-8332 e-mail: matthew.goucke@walkersglobal.com CHARLEMAGNE CAPITAL: Commences Wind-Up Proceedings -------------------------------------------------- At an extraordinary general meeting held on December 22, 2008, the shareholders of Charlemagne Capital Russia Value Fund resolved to voluntarily wind up the company's operations. The company's liquidators are: Jane Bates Rebecca Taylor c/o Maples and Calder PO Box 309, Ugland House Grand Cayman KY1-1104, Cayman Islands DD ACQUISITION ET AL: Commences Liquidation Proceedings ------------------------------------------------------- On January 13, 2009, the shareholder resolved to voluntarily liquidate the business of: -- DD Acquisition Cayman LLC; -- DD Acquisition Cayman II LLC.; and -- DD Acquisition Cayman II-2 LLC. Only creditors who were able to file their proofs of debt by March 9, 2009, will be included in the company's dividend distribution. The companies' liquidator is: Richard E. L. Fogerty c/o Barry Hunte Kroll (Cayman) Limited, Cayman Financial Centre Bermuda House, 4th Floor Dr. Roy’s Drive, Grand Cayman Telephone: +1 (345) 946-0081 Fax: +1 (345) 946-0082 e-mail: barry.hunte@krollcayman.ky DD 2 ACQUISITION: Commences Liquidation Proceedings --------------------------------------------------- On January 13, 2009, the shareholder of DD 2 Acquisition Cayman LLC passed a resolution that voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by March 9, 2009, will be included in the company's dividend distribution. The company's liquidator is: Richard E. L. Fogerty c/o Barry Hunte Kroll (Cayman) Limited, Cayman Financial Centre Bermuda House, 4th Floor Dr. Roy’s Drive, Grand Cayman Telephone: +1 (345) 946-0081 Fax: +1 (345) 946-0082 e-mail: barry.hunte@krollcayman.ky ECONERGY GRAND: Placed Under Voluntary Wind-Up ---------------------------------------------- On January 12, 2009, the sole shareholder of Econergy Grand Cayman Holdings, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by March 9, 2009, will be included in the company's dividend distribution. The company's liquidator is: Avalon Management Limited c/o Mourant du Feu & Jeune Telephone: (+1) 345 949-4123 Facsimile: (+1) 345 949- 4647 EOC CORP VI: Commences Wind-Up Proceedings ------------------------------------------ At an extraordinary general meeting held on January 6, 2009, the shareholders of EOC Corp VI resolved to voluntarily wind up the company's operations. The company's liquidator is: Robert Bigelow III c/o Blue River Asset Management, LLC 7 North Willow Street, Suite 8A Montclair EOC CORP: Creditors' Proofs of Debt Due on March 18 --------------------------------------------------- The creditors of EOC Corp VI are required to file their proofs of debt by March 18, 2009, to be included in the company's dividend distribution. The company's liquidator is: Robert Bigelow III c/o Blue River Asset Management, LLC 7 North Willow Street, Suite 8A Montclair, NJ 07042, USA GLAUX INVESTMENTS: Commences Wind-Up Proceedings ------------------------------------------------ At an extraordinary general meeting held on January 5, 2009, the shareholders of Glaux Investments Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM LTD. Governor’s Square Ground Floor, West Bay Road PO Box 1982, Grand Cayman KY1-1104 Cayman Islands HARBOR DRIVE: Commences Wind-Up Proceedings ------------------------------------------- On January 14, 2009, the sole shareholder of Harbor Drive Master Fund, Ltd. resolved to voluntarily wind up the company's operations. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6314 INVESTCORP INTERLACHEN ET AL: Commences Liquidation Proceedings --------------------------------------------------------------- On December 28, 2008, the shareholders resolved to voluntarily liquidate the business of: -- Investcorp Interlachen Fixed Income Fund Limited; and -- Investcorp Interlachen Fixed Income Master Fund Limited. Only creditors who were able to file their proofs of debt by Feb. 23, 2009, will be included in the company's dividend distribution. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-5122 Facsimile: (345) 949-7920 MIDAS FUND: Commences Liquidation Proceedings --------------------------------------------- On January 9, 2009, the shareholder of Midas Fund Ltd. passed a resolution that voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by March 9, 2009, will be included in the company's dividend distribution. The company's liquidator is: Richard E. L. Fogerty c/o Barry Hunte Kroll (Cayman) Limited, Cayman Financial Centre Bermuda House, 4th Floor Dr. Roy’s Drive, Grand Cayman Telephone: +1 (345) 946-0081 Fax: +1 (345) 946-0082 e-mail: barry.hunte@krollcayman.ky P7S1 MANAGEMENT: Placed Under Voluntary Wind-Up ----------------------------------------------- On January 8, 2009, the sole shareholder of P7S1 Management Co. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by March 9, 2009, will be included in the company's dividend distribution. The company's liquidator is: Avalon Management Limited c/o Mourant du Feu & Jeune Telephone: (+1) 345 949-4123 Facsimile: (+1) 345 949- 4647 PENGANA ABSOLUTE: Commences Wind-Up Proceedings ----------------------------------------------- On January 16, 2009, the sole shareholder of Pengana Absolute Return Real Estate Fund resolved to voluntarily wind up the company's operations. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Telephone: (345) 914-6314 RAMIUS FIXED: Placed Under Voluntary Liquidation ------------------------------------------------ On December 30, 2008, the shareholders of Ramius Fixed Income Arbitrage FOF Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Ramius Fund of Funds Group LLC 599 Lexington Avenue 19th Floor, New York, NY 10022 RAMIUS OPPORTUNISTIC: Placed Under Voluntary Liquidation -------------------------------------------------------- On December 30, 2008, the shareholders of Ramius Opportunistic Equity FOF Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Ramius Fund of Funds Group LLC 599 Lexington Avenue 19th Floor, New York, NY 10022 SATURN INC: Commences Wind-Up Proceedings ----------------------------------------- On December 26, 2008, the shareholders of Saturn Inc passed a resolution that voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by March 2, 2009, will be included in the company's dividend distribution. The company's liquidator is: Prasob Snongjati 9 Ratchadapisek Road 30th Floor Zone A Jatujak, Bangkok, Thailand 10900 Tel: +662 544 2449-51 Fax: +662 544 3317 SS7 HOLDINGS: Commences Liquidation Proceedings ----------------------------------------------- At an extraordinary general meeting held on January 16, 2009, the shareholders of SS7 Holdings Inc. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by March 6, 2009, will be included in the company's dividend distribution. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue George Town, Grand Cayman KY1-1104 Cayman Islands TUTSAN INVESTMENTS: Commences Wind-Up Proceedings ------------------------------------------------- At an extraordinary general meeting held on January 5, 2009, the shareholders of Tutsan Investments Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM LTD. Governor’s Square Ground Floor, West Bay Road PO Box 1982, Grand Cayman KY1-1104 Cayman Islands ZS CAYMAN: Placed Under Voluntary Wind-Up ----------------------------------------- On January 15, 2009, the shareholders of ZS Cayman L.L.C. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by March 5, 2009, will be included in the company's dividend distribution. The company's liquidator is: Robert Horne 1133 Avenue of Americas New York NY 10036, USA * CAYMAN ISLANDS: Lawyers Say Toxic Asset Funds Increasing ---------------------------------------------------------- Distressed asset funds targeting US toxic bank assets are being set up at a rapid clip using Cayman Islands legal structures, Kevin Drawbaugh of Reuters reports. "There are a lot of funds being established now to take on the toxic assets," Charles Jennings, managing partner at the law firm of Maples and Calder, told Reuters in an interview. Prominent hedge fund, private equity and other distressed asset investors are involved, said Henry Smith, also a partner at the firm, which specializes in international and offshore law, particularly Cayman Islands financial law, the report relates. According to the report, the Obama administration is working on a public-private partnership approach to valuing toxic assets and moving as much as US$1 trillion of them off the balance sheets of major financial institutions. These assets, the report relates, many backed by troubled subprime mortgage loans, are central to the credit market crisis disrupting the global financial system and dragging down the economy. Reuters notes Mr. Smith said a Cayman-based fund for buying toxic assets would use a typical structure, with a master fund in the Cayman Islands, a Delaware-based feeder fund for US taxable investors, and a Cayman feeder fund for non-US investors and tax- exempt US investors. Cayman Island, the report says, has been under pressure from congressional investigators over tax issues. Reuters recalls legislation introduced in the Senate targets offshore financial havens such as Switzerland and the Cayman Islands for shutdown. ========= C H I L E ========= CSAV: Shares Plunge to 6-Year Low on Debt Payment Concerns ---------------------------------------------------------- Compania Sud Americana De Vapores (CSAV) plunged as much as 13.9% and closed at a six-year low, yesterday, March 12, on speculation it will struggle to pay maturing debt, Nathan Gill of Bloomberg News reports. The report relates the share tumble, which followed an 8.7% slide yesterday, prompted the Santiago Stock Exchange to request financial information from the company. Vapores Chief Executive Juan Antonio Alvarez replied in a statement obtained by the news agency that the company has “no relevant news” to report beyond what was made available in its last quarterly results. “There’s a rumor that they need cash,” Bloomberg News quoted Cristina Acle, director of equity research at CorpResearch SA, said today by phone from Santiago, as saying. “The problem with Vapores is that they have very opaque finances. You can’t see all of Vapores debt in their financial sheets. This adds risk to the company.” The report notes Valparaiso, Chile-based Vapores fell 2.3% to 317.9 pesos at 5 p.m. New York time, yesterday, in Santiago trading. It dropped 20% in the past six days, the report adds. About Compania Sud Compania Sud Americana De Vapores (CSAV) -– http://www.csav.cl -- is a Chilean shipping company. The sphere of the Company's activities extends across five continents. Its services feature a comprehensive service for general cargo, bulk cargo, fresh and frozen products and vehicles, using both owned and chartered vessels. CSAV provides permanent sailings from certain ports through its line service, fixed itineraries and operates a fleet of vessels able to convey a large number of containers and a variety of conventional cargoes. CSVA also owns vessels specially designed for frozen cargo, cars, bulk cargo and forest products. In addition to complementary storage areas and pier services, an intermodal service has also been established, which combines different means of carriage. CSAV provides these services in conjunction with its subsidiaries: Sudamericana Agencias Aereas y Maritimas S.A., as a maritime forwarding agency, and COSAN, a container terminal in Santiago. * * * As of March 13, 2009, the company continues to carry Moody's LT Corp Family Rating at Caa2, Bank Loan Debt Rating at B3, Senior Unsecured Debt at Caa2, and Probability of Default Rating at Caa1. The company also continues to carry Standard and Poor's LT Issuer Credit Ratings at CCC. It also continues to carry Fitch Ratings' LT Issuer Default Rating at C, Bank Loan Debt Rating at B-, and Senior Unsecured Debt Rating at C. =============== C O L O M B I A =============== BANCOLOMBIA: Falls One-Week Low as BofA Cuts Shares to “Neutral” --------------------------------------------------------------- Bancolombia S.A.'s preferred shares lost 1.1% to 11,300 pesos on March 11 at 2:11 p.m. NY in Bogota trading, the lowest since March 5, after Bank of America Corp. downgraded the company's shares to “neutral” from “buy” on concern that the slumping Colombian economy will lead to lower earnings, Andrea Jaramillo of Bloomberg News reports. The company's shares, the report relates, have fallen 12% this year, while the American depositary receipts slid 1.4% to US$17.89. Colombia is being hurt by the global slowdown as exports to the U.S. and neighboring Venezuela slow and inflows from foreign direct investment and remittances drop, analysts Lucas Ramirez and Jorg Friedemann wrote in a report obtained by the news agency. “The less benign macro environment in 2009 is likely to put pressure on earnings of the banking sector due to a further deterioration in credit quality and continued pressure on bank provision expenses,” Bloomberg News quoted the analysts as saying. About Bancolombia S.A. Bancolombia S.A. is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2008, Moody's Investors Service upgraded Bancolombia SA's Foreign currency deposits rating to Ba2, stable from Ba3 and Foreign currency subordinated debt rating to Baa3, stable from Ba1. BANCOLOMBIA: Posts Ps. 177.1 Billion Net Income in February ----------------------------------------------------------- Bancolombia S.A. reported unconsolidated net income of Ps. 177.1 billion for the month ended February 28, 2009. Net income for Bancolombia on an unconsolidated basis totaled Ps. 233.2 billion for the first two months of 2009. Net interest income, including investment securities, totaled Ps. 225.4 billion in February 2009. For the two month period ended February 28, 2009, net interest income totaled Ps. 458.4 billion, increasing 23.4% as compared to the same period last year. Net fees and income from services in February 2009 totaled Ps. 64.2 billion. For the two month period ended February 28, 2009, net fees and income from services totaled Ps. 128.6 billion, which represents an increase of 4.7% as compared to the same period of 2008. Other operating income totaled Ps. 116.0 billion in February 2009. For the two month period ended February 28, 2009, other operating income totaled Ps. 112.9 billion, increasing 141.8% as compared to the same period last year. Bancolombia notes that a considerable part of this revenue comes from dividend income received from subsidiaries, which is eliminated in the consolidated results as it is an intercompany transaction. As a result, this dividend income is only recorded in Bancolombia's unconsolidated results. The Bank also notes that the item line of income from derivative financial instruments was negatively impacted by a Ps. 21.5 billion charge in February, related to rule changes concerning valuation methodologies for derivative instruments established by Colombian regulators. Net provisions charges totaled Ps. 38.7 billion in February 2009, decreasing 53.0% as compared to the figure presented in January 2009. Net provisions totaled Ps. 121.0 billion for the two month period ended February 28, 2009, which represents an increase of 172.2% as compared to the same period of 2008. Operating expenses totaled Ps. 165.4 billion in February 2009. For the two month period ended February 28, 2009, operating expenses totaled Ps. 321.6 billion, increasing 17.3% as compared to the same period of 2008. Total assets (unconsolidated) amounted to Ps. 40.2 trillion, gross loans amounted to Ps. 28.1 trillion, deposits totaled Ps. 26.4 trillion and Bancolombia's total shareholders' equity amounted to Ps. 6.3 trillion. Bancolombia's unconsolidated level of past due loans (overdue more than 30 days) as a percentage of total loans amounted to 3.60% as of February 28, 2009, and the coverage for past due loans was 141.18% as of the same date. About Bancolombia S.A. Bancolombia S.A. is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2008, Moody's Investors Service upgraded Bancolombia SA's Foreign currency deposits rating to Ba2, stable from Ba3 and Foreign currency subordinated debt rating to Baa3, stable from Ba1. ============= E C U A D O R ============= * ECUADOR: Loan Default Hinders Bank Financing, Pres. Correa Says ----------------------------------------------------------------- Ecuador President Rafael Correa said his government’s default on US$3.2 billion in foreign bonds has made it harder for local banks to get financing, Stephan Kueffner of Bloomberg News reports, citing El Telegrafo newspaper. According to the report, the global financial crisis has also played a part in limiting access to credit, Mr. Correa added in an interview with the newspaper. Bloomberg News relates the newspaper reported Mr. Correa said the liquidity crisis is forcing the government and the banking system to work together. In December, Bloomberg News recalls, Mr. Correa halted payment on foreign bonds he called “illegal” and “illegitimate.” As reported in the Troubled Company Reporter - Latin America on November 21, 2008, Bloomberg News said Ecuador may halt bond payments after its debt audit commission uncovered "illegality and illegitimacy" in the country's foreign obligations. The commission said the government's global bonds due in 2012 and 2030 "show serious signs of illegality," such as a lack of government authorization for their issuance, the same report said. ============= J A M A I C A ============= JCSA: Independent Auditor to Probe Financial Affairs ---------------------------------------------------- An independent auditor will be brought in to ivestigate Jamaica Civil Service Association (JCSA)'s accounts following questions regarding the organization's financial affairs, RadioJamaica reports. RadioJamaica relates the decision for an auditor probe was made during a special meeting of the Association's General Council to address concerns regarding possible mismanagement of the Association's finances. According to the report, the members are seeking answers on: -- whether officers of the Association, including President Wayne Jones, are being paid salaries; –- whether the salaries were officially authorised; –- details on the management of the JCSA's bank accounts and investment instruments; and –- information on how donations are managed. The auditor, the report says, will probe the Council's books after the organization reviewed a report on the management of the JCSA's finances. =========== M E X I C O =========== CEMEX SAB: Shares Hit One Month High on Refinance Optimism ---------------------------------------------------------- Cemex S.A.B de C.V's shares rose the most in three months and call options jumped on speculation its creditor banks will refinance the company’s debt to avoid pushing it into default, Thomas Black of Bloomberg News reports. The report relates Cemex’s American depositary receipts surged 16% to US$5.83, yesterday, March 12, in New York Stock Exchange composite trading, the most since Dec. 16, while call-option volume was three times greater than puts. The most actively traded March call contract, which bets shares will rise above US$5, doubled to 80 cents, the report says. “An agreement with the banks is the most likely outcome,” Patricio Rivera, an analyst with the Mexico City-based brokerage Grupo Financiero IXE, told Bloomberg News in an interview. “If you let the company default, the process of collecting could be longer and it could add costs that could be avoided with a fair refinancing transaction.” As reported in the Troubled Company Reporter-Latin America on March 11, 2009, Bloomberg News said Cemex started discussions with banks to renegotiate about US$14.5 billion of debt after postponing its bond sale. Company spokesman Jorge Perez, the report related, 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 noted. Bloomberg News recalled that Cemex 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. About Cemex Cemex S.A.B de C.V 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. * * * As reported by the Troubled Company Reporter-Latin America on March 2, 2009, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit ratings on Cemex S.A.B de C.V. and its key operating subsidiaries (Cemex Espana S.A., Cemex Mexico S.A. de C.V., and Cemex Inc.) remain on CreditWatch, where they were placed with negative implications on Jan. 21, 2009. At the same time, S&P assigned a 'BB+' rating to Cemex's intermediate-maturity notes in the amount of about US$500 million. The recovery rating is '3', indicating that lenders can expect substantial (70% to 90%) recovery in the event of a payment default. ====================================== N E T H E R L A N D S A N T I L L E S ====================================== WINAIR: To End Flights to St Kitts by End of March -------------------------------------------------- Windward Islands Airways (Winair), after 30 years of flights, will stop scheduled flights to St Kitts by the end of March due to increased competition, fluctuating fuel prices, and the increase in other operational costs, Caribbean360.com reports, citing St Kitts' Minister of State for Information, Senator Nigel Carty. "WINAIR alluded to a decreasing trend in passenger volume from St. Kitts, and has deemed the recent losses unsustainable, and has made a decision to discontinue its services to and from St Kitts by March 29, 2009,” the report quoted Mr. Carty as saying. Mr. Carty, the report relates, said the government requested a full analysis from WINAIR with a view to exploring how it could assist in keeping the services of the airline in St Kitts, but he said "there was no scenario presented by WINAIR that made an economically-acceptable case for the government to pursue". According to the report, Antigua-based carrier, LIAT, will now be the only scheduled carrier between St Kitts' Robert L Bradshaw International Airport and the Dutch/French Caribbean island following Winair's move. Caribbean360.com recalls WINAIR will also cutt services to Dominica and Tortola from its schedule and reducing its service to Antigua to a weekly flight. About Winair Headquartered in the Netherlands Antilles, Windward Islands Airways (Winair) –- http://www.fly-winair.com/–- is a government owned airline founded in 1961. It has a fleet of eight aircraft serving ten destinations, all within the Leeward Islands group of the Lesser Antilles in the North East Caribbean. ============================= T R I N I D A D & T O B A G O ============================= CL FINANCIAL: Gov't to Borrow More to Rescue Company ---------------------------------------------------- CL Financial Limited's financial crisis will force Trinidad and Tobago's to borrow more this year to sustain its rescue of the cash-strapped conglomerate, Curtis Rampersad of Trinidad and Tobago Express reports. According to the report, Central Bank Governor Ewart Williams said the plunging crude oil prices had already forced the State to curb its expenditure and could lead to increased borrowing this year. "The CL Financial crisis will add to that borrowing," the report quoted Mr. Williams as saying. The Express relates as the Government and the Central Bank continue work to evaluate certain CL Financial assets to ultimately divest them, Mr. Williams said the money earned from the sale of these assets would come back to the country, and this would ensure that the "burden on the taxpayer will be as small as possible". 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. CL FIN'L: Finance Minister Closed CLICO Accounts Before Melt Down ----------------------------------------------------------------- Trinidad and Tobago Finance Minister Karen Nunez-Tesheira closed two U.S. dollar accounts with CLICO Investment Bank on Dec. 31, 2008, before the company's meltdown this year, CaribWorldNews reports. CaribWorldNews says documents obtained by the Trinidad Express showed that Ms. Nunez-Tesheira paid a 'break rate' of 3.5% for closing two accounts at CIB worth a total of US$48,549.91, before they were due to mature on April 30, 2009 and August 13, 2009 respectively. Ms. Nunez-Tesheira, the report recalls, claimed in a Parliamentary statement on February 2 that she made the withdrawals because the accounts had matured by December 31, 2008. CaribWorldNews relates Ms. Nunez-Tesheira, in a comment to the Express, said she did not realize and was not informed by anyone at CIB that she was breaking the accounts. As reported in the Troubled Company Reporter-Latin America on March 10, 2009, Caribbean Net News said CL Financial's official filing with the Registrar's office reveals that Ms. Nunez- Tesheira, who presides over the billion-dollar bailout of CL Financial Group, owned 10,410 ordinary shares in the group. The revelations, the report related, raise questions whether Ms. Nunez-Tesheira has a serious conflict of interest, why she had not disclosed her ownership of CL Financial shares before and why the shares are held in her name and not in a blind trust. 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. ================= V E N E Z U E L A ================= PDVSA: To Continue Paying Debts After Revision of Tariffs --------------------------------------------------------- Petroleos de Venezuela S.A. (PDVSA), which paid 10% of its existing debt, said it will pay the remaining debt after a revision of tariffs by suppliers, El Universal News reports. On March 4, 2009, the Troubled Company Reporter-Latin America, citing Bloomberg News, reported the company said it will begin paying as many as 6,000 contractors and domestic vendors in a “massive” process to bring up-to-date their payments. The company, the report related, will immediately recognize back-pay with at least 90% of contractors and service providers. According to El Universal, it repaid total debt to most of the contractors, but it paid part of it to a group of service companies because their contracts are being examined by the industry. The report notes according to the payment schedule for debt implemented by PDVSA, the big contractors received 10% of the outstanding debt and the rest will be paid as long as the service companies cut their tariffs. PDVSA, El Universal says, has asked contractors, including oil drill companies, to cut tariffs by 50% in average, due to the new realities of the market, in an environment characterized by low crude oil prices. About PDVSA Petroleos de Venezuela S.A. -- 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 continues to carry a 'BB-' long-term corporate credit rating from Standard & Poor's with stable outlook. The rating was affirmed by S&P in April 2008. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marie Therese V. Profetana, Marites O. Claro, Joy A. Agravente, Pius Xerxes V. Tovilla, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *