/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090318.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 18, 2009, Vol. 9, No. 54 Headlines A N T I G U A & B A R B U D A STANFORD INT'L BANK: IRS Seeks US$227Mln in Back Taxes From Owner A R G E N T I N A AEROPOL SA: Proofs of Claim Verification Due on May 27 AGROVERSATIL SA: Trustee Verifying Proofs of Claim Until April 24 BANCO CETELEM: Moody's Lowers Bank Financial Strength Rating to E+ CIMACO SA: Trustee Verifying Proofs of Claim Until May 5 CLINICA PRIVADA: Trustee Verifying Proofs of Claim Until May 29 MAC FRUT: Proofs of Claim Verification Due on April 20 RAMON ALBERTO: Proofs of Claim Verification Due on June 3 RUTA 5 SA: Trustee Verifying Proofs of Claim Until May 12 SERVIPALLETS SA: Asks for Opening of Preventive Contest STANDARD BANK: Moody's Lifts Bank Financial Strength Rating to 'D' B E L I Z E HL'S ENTERPRISE: Two Tax Cases Presented to Revenue Magistrate B R A Z I L BRASCAN RESIDENTIAL: Fitch Assigns 'BB-' Issuer Default Rating COSAN LTD: S&P Puts 'BB-' Corporate Rating on Negative CreditWatch GERDAU SA: Ratings Cut to “Underperform” at Santander SA TELE NORTE: UBS AG Raises Company to “Buy” on Strong Cash Flow C A Y M A N I S L A N D S BRAC 2: Shareholders Receive Wind-Up Report CARLUCCI INVESTMENTS: Members Receive Wind-Up Report CHANNEL BRIDGE ET AL: Liquidator to Present Wind-Up Report CIBC GLOBAL: Sole Shareholder Hears Wind-Up Report D.B. ZWIRN: Members to Receive Wind-Up Report on March 19 EOC CORP: Shareholders to Hear Wind-Up Report Today GLAUX INVESTMENTS: Shareholders Receive Wind-Up Report HARBOR DRIVE: Shareholders Receive Wind-Up Report IRONOPOLIS FUND: Members Receive Wind-Up Report MJX MACRO: Liquidator Presents Wind-Up Report NITC (CAYMAN ISLANDS): Shareholders Receive Wind-Up Report PENGANA ABSOLUTE: Shareholders Receive Wind-Up Report PIONEER FUND: Sole Member Hears Wind-Up Report ROCKBAY CAPITAL ET AL: Liquidator to Present Wind-Up Report SATURN INC: Shareholders Receive Wind-Up Report SS7 HOLDINGS: Shareholders Receive Wind-Up Report TUTSAN INVESTMENTS: Shareholders Receive Wind-Up Report ZS CAYMAN: Shareholders Receive Wind-Up Report J A M A I C A AIR JAMAICA: Government to Reveal Divestment Update This Week CABLE & WIRELESS: Regulator Ready to Intervene in Digicel Dispute JPSCO: IDT to Begin Hearing on Workers Payments Dispute M E X I C O SARE HOLDING: Moody's Affirms Ba3 Senior Unsecured Debt Rating V E N E Z U E L A PDVSA: To Sign Guangdong Joint Venture With China National - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L BANK: IRS Seeks US$227Mln in Back Taxes From Owner ----------------------------------------------------------------- The United States Internal Revenue Service (IRS) filed a motion on March 13 in the US District Court in Dallas, asking a judge to let it continue to seek at least US$226.6 million in back taxes from Robert Allen Stanford, Bloomberg News reports. 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, and investment adviser Stanford Capital Management. “The IRS shall file a fairly significant claim against Mr. Stanford,” agency lawyer Manuel Lena Jr. wrote in the motion to intervene in the case brought against Mr. Stanford by the SEC, Bloomberg News relates. Mr. Lena, Bloomberg News notes, said Mr. Stanford’s federal tax bill has doubled from the previously reported as penalties and interest piled up, and it may grow further because Stanford hasn’t filed his 2007 tax return. The report recalls Mr. Stanford claimed residence in the British Virgin Islands since 2006, and by law is required to file his tax returns with the territorial Virgin Islands Internal Revenue Bureau, not with the IRS, which has the right to audit the returns. It isn’t known whether Stanford filed returns with the territorial tax collector, Bloomberg News say. Bloomberg News notes Mr. Stanford arrived in the Virgin Islands months after suing the IRS in February 2006 to contest a tax bill for 1999-2003 that had grown to US$104.2 million by August 2008, according to liens on his properties in Florida and Texas. Mr. Lena, the report relates, said in court papers that the IRS had also placed liens on his assets in St Croix. US$104 Million Tax Lien As reported in the Troubled Company Reporter-Latin America on February 27, 2009, The Miami Herald News said the U.S. IRS filed a federal tax lien for US$104,236,285.85 against Mr. Stanford and his ex-wife, Susan Stanford in the Miami-Dade Circuit Court. The court records cited by The Herald said the IRS lien, filed Aug. 21, 2008, in Miami, covers tax years 2002 through 2004. The same report related based on tax court records, the Stanfords are challenging IRS assessments in U.S. Tax Court related to federal income taxes for other years, and have fought tax bills at least as far back as 1996. According to the Herald, an unnamed Stanford employee said Mr. Stanford retained Brendan V. Sullivan, a senior partner at the Washington, D.C., law firm of Williams & Connolly, to represent him in his legal woes. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. ================= A R G E N T I N A ================= AEROPOL SA: Proofs of Claim Verification Due on May 27 ------------------------------------------------------ The court-appointed trustee for Aeropol SA's reorganization proceedings, will be verifying creditors' proofs of claim until May 27, 2009. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 50, 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. Creditors will vote to ratify the completed settlement plan during the assembly on May 20, 2010. AGROVERSATIL SA: Trustee Verifying Proofs of Claim Until April 24 ----------------------------------------------------------------- The court-appointed trustee for Agroversatil S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until April 24, 2009. The trustee will present the validated claims in court as individual reports on June 10, 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 23, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on February 11, 2010. BANCO CETELEM: Moody's Lowers Bank Financial Strength Rating to E+ ------------------------------------------------------------------ Moody's Investors Service downgraded Banco Cetelem Argentina's bank financial strength rating to E+ from D-. The E+ BFSR translates into a baseline credit assessment of B1. At the same time, Moody's affirmed the bank's global local currency rating at Ba1, which incorporates both the assessment of very high parental support from its ultimate parent, BNP Paribas (France), as well as very low systemic support. Moody's also assigned a Not Prime short-term local currency deposit rating. Moody's also affirmed the bank's Caa1/Not Prime long and short term foreign currency deposit ratings and the bank's Aaa.ar and Ba1.ar national scale local and foreign currency deposit ratings, respectively. All ratings have stable outlook. The rating action reflects Banco Cetelem Argentina's weakening profitability and asset quality partly due to its niche focus on consumer credit, a business model that is particularly susceptible to economic cycles. During 2008, the credit quality of the loan book deteriorated significantly which led the bank to register much higher provisions. Earnings were also negatively affected by moderating business volumes in response to milder demand, as well as a surge in operating costs relative to revenues. Moody's noted it believes the bank will continue to be challenged to grow earnings and maintain good asset quality in light of the economic slowdown anticipated for Argentina during 2009. Banco Cetelem Argentina S.A., located in Buenos Aires, Argentina, is a subsidiary of Cetelem S.A. (France) and a member of the BNP Paribas Group. Banco Cetelem Argentina's liabilities are guaranteed by BNP Paribas. As of December 31, 2008 Banco Cetelem Argentina had Ar$ 269.26 million (US$ 77.97 million) in assets and Ar$ 27.54 million (US$ 7.97 million) in equity. This rating of Banco Cetelem Argentina was downgraded: -- Bank Financial Strength Rating: E+, with stable outlook These ratings of Banco Cetelem Argentina were affirmed: -- Long Term Global Local Currency Deposit Rating: Ba1, with stable outlook -- Foreign Currency Deposit Rating: Caa1/ Not Prime, with stable outlook -- National Scale Local Currency Deposit Rating: Aaa.ar, with stable outlook -- National Scale Foreign Currency Deposit Rating: Ba1.ar, with stable outlook This rating of Banco Cetelem Argentina was assigned: -- Short Term Local Currency Deposit Rating: Not Prime, with stable outlook CIMACO SA: Trustee Verifying Proofs of Claim Until May 5 -------------------------------------------------------- The court-appointed trustee for Cimaco S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until May 5, 2009. CLINICA PRIVADA: Trustee Verifying Proofs of Claim Until May 29 --------------------------------------------------------------- The court-appointed trustee for Clinica Privada Florencio Varela S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until May 29, 2009. The trustee will present the validated claims in court as individual reports on July 13, 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 September 15, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on May 4, 2010. MAC FRUT: Proofs of Claim Verification Due on April 20 ------------------------------------------------------ Mirta Andrada, the court-appointed trustee for Mac Frut SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until April 20, 2009. Ms. Andrada will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 46, 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: Mirta Andrada Avenida Corrientes 676 Buenos Aires, Argentina RAMON ALBERTO: Proofs of Claim Verification Due on June 3 --------------------------------------------------------- Mirta Polistina, the court-appointed trustee for Ramon Alberto Forti SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 3, 2009. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 50, 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: Mirta Polistina Hipolito Yrigoyen 4027 Buenos Aires, Argentina RUTA 5 SA: Trustee Verifying Proofs of Claim Until May 12 ---------------------------------------------------------- The court-appointed trustee for Ruta 5 S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until May 12, 2009. The trustee will present the validated claims in court as individual reports on June 22, 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 18, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on February 16, 2010. SERVIPALLETS SA: Asks for Opening of Preventive Contest ------------------------------------------------------- Servipallets SA asked for the opening of preventive contest. The company stopped its payment on March 9, 2009. STANDARD BANK: Moody's Lifts Bank Financial Strength Rating to 'D' ------------------------------------------------------------------ Moody's Investors Service upgraded Standard Bank Argentina S.A's bank financial strength rating to D from D- . The rating has a stable outlook. At the same time, Moody's affirmed the long- and short-term global local-currency deposit ratings of Ba1 and Not Prime as well as the long- and short-term foreign currency deposit ratings of Caa1 and Not Prime. The Aaa.ar local-currency and a Ba1.ar foreign- currency deposit ratings in the Argentine national scale were also affirmed. Moody's noted that the upgrade of Standard's BFSR recognizes the successful integration of the business and operations it acquired from BankBoston in 2007. The rating action also incorporates Standard's improved financial performance which resulted from its adequate positioning of a new banking brand in the competitive Argentinean banking segment. In that regard, Moody's said that the bank's 2008 pre-provision profits were supported by improved recurring earnings generation, as management focused on expanding the consumer and corporate lending business (up by 9.63%), as well as boosting fee- generating income (up by 55.6%), during 2008. The rating is also supported by Standard's adequate asset quality indicators when compared to similar rated peers in Argentina and in the Latin American region. The bank's sizeable deposit franchise is a strength in the ratings and has proven sustainable to recent ownership change and to the recent heightened of market volatility and investors selectiveness. Conversely, Moody's believes that as the business dynamics change -- along with the anticipated economic slowdown in Argentina in 2009 -- Standard Bank is likely to be challenged to manage potential worsening in asset quality and pressures in its profitability. Moody's explained that it has applied a number of scenarios (base and stressed) to Standard Bank's loan book to test the bank asset quality and how the bank capitalization would be affected as asset quality deteriorates. In both cases the current level of capitalization will remain above the minimum capital required by the Argentinean regulator. Moreover, Standard well resisted the liquidity stress test, which was based on past liquidity stress experience in Argentina. Moody's Ba1 global local-currency deposit rating incorporates Standard's baseline credit assessment of Ba2, which is mapped from the D BFSR, as well as Moody's assessment of a high probability of parental support and moderate systemic support. Standard Bank is a full-service operation bank with a network of 93 branches in Argentina. The bank is the eight private bank in terms of deposits with a market share of 3.0% of total deposits. As of December 2008 the Bank had Ar$ 10.275 million in assets and Ar$801 million in equity. This rating was upgraded: -- Bank Financial Strength Rating: D from D- (D minus), with stable outlook These ratings were affirmed: -- Long- and short-term local-currency deposit ratings: Ba1 / Not-Prime, with stable outlook -- Long- and short-term foreign-currency deposit ratings: Caa1 / Not-Prime, with stable outlook -- Long- term local-currency national scale rating: Aaa.ar -- Long- term foreign-currency national scale rating: Ba1.ar =========== B E L I Z E =========== HL'S ENTERPRISE: Two Tax Cases Presented to Revenue Magistrate -------------------------------------------------------------- The two tax cases against HL's Enterprise was presented to Revenue Magistrate Edd P. Usher on March 5, 2009, Amandala News reported. The report related the company, Social Security, and General Sales Tax (GST) office were present in the event, and was represented by their lawyers -- Hubert Elrington, Oswald Twist, and Jacqueline Meighan, respectively. According to the report, Mr. Twist argued that the Notice of Bankruptcy that the country's oldest food chain issued to its debtors did not constitute a bankruptcy declaration within the meaning of the Bankruptcy Act under the Laws of Belize. However, the report said Mr. Elrington told Magistrate Usher that for the purposes of the Bankruptcy Act, the Notice of Bankruptcy serves the same purpose of explaining that the company was unable to meet its financial obligation. The report recalled HL’s Enterprise filed for bankruptcy in February after it was unable to pay its debt to General Sales Tax and Social Security Board. Amandala News noted Mr. Usher told the parties it would wait for the Supreme Court decision on the company’s bankruptcy claim. Mr. Usher, the report related, also indicated: * he does not have the legal authority to proceed with the claims of the company’s bills at the present time; * only the official receiver has that kind of authority to discuss or make commitment regarding the company’s finances; and * the board of directors of the company is now only acting as Trustees of the company, due to the declaration of the company’s bankruptcy petition. Amandala News said the company is still obligated to pay its bills to Social Security, which is classified in the Social Security Act as a “Secure Creditor.” Mr. Usher, the report added, adjourned the two tax cases until a later date after the Supreme Court makes an order and a receivership is appointed to deal with the affairs of the company. =========== B R A Z I L =========== BRASCAN RESIDENTIAL: Fitch Assigns 'BB-' Issuer Default Rating -------------------------------------------------------------- Fitch Ratings has assigned Brascan Residential Properties S.A. Issuer Default Ratings and other ratings: -- Foreign Currency IDR of 'BB-'; -- Local Currency IDR of 'BB-'; -- Long-term National Rating of 'A+(bra)'. BRP's ratings reflect the integration of the company's operations, which include a solid and geographically diversified land bank (potential sales value - PSV- of BRL16.4 billion), the strong shareholders structure as well as BRP's consistently improving operating and financial performance over the past three years. Furthermore, the ratings take into consideration the competitive advantages obtained from the merger with Company S.A. (Company) in October 2008, as well as the adequate performance, liquidity and leverage ratios recorded on a combined pro-forma basis. BRP's Negative Outlook is consistent with the rating action taken by Fitch for the overall homebuilding sector on Jan. 21, 2009, reflecting the expectation that homebuilders in Brazil will face a challenging operating environment as well as significant financial pressures in 2009 and 2010. The ratings incorporate the negative impact that the merger with Company (rated by Fitch, with IDR 'BB-' and National Scale Rating 'A+(bra)'; Negative Outlook) will have on the BRP's financial profile, although financials should still be above-industry-norms. For the latest 12 months ending Sept. 30, 2008, the combined entity's pro-forma EBITDA margin was 32.9%, which is below BRP's 39.1% stand-alone margin but above industry average. The merger with Company will moderately weaken BRP's stand-alone leverage, although the combined entity's leverage will remain stronger on average than many of its peers. The combined total debt/EBITDA and net debt/EBITDA were 2.3 times (x) and 1.3x, respectively, as of Sept. 30, 2008, verses BRP's total debt/EBITDA and net debt/EBITDA on a stand alone basis were 1.8x and 1.0x, respectively, during the same period. Leverage ratios are expected to increase over the next three years, primarily due to an increase in Housing Financial System loans. It should be noted that these loans do not affect cash flow for principal repayment. With more than half of future debt expected to be funded through SFH loans, total debt/EBITDA is expected to reach a maximum of 3.5x by 2011, while cash should amount to at least BRL200 million. Pro-forma liquidity and debt structure for the combined entity is expected to be adequate. The merger positively benefited Company's financial position while increasing BRP's share of the Sao Paulo real estate market, which positions the combined company well for the challenging environment ahead. On Sept. 30, 2008, the combined entity recorded BRL336 million of total cash on a pro-forma basis, equivalent to 111% of the combined short-term debt and 44% of the combined total debt. Receivables of completed units not linked to debt amounted to BRL449 million on a pro-forma basis, representing significant liquidity reserves for the combined entity. The BRL200 million paid by BRP to Company's former shareholders in the fourth quarter 2008 (4Q08) is expected to be replaced through a new capital subscription announced on Jan. 15, 2009 in order to maintain the entity's solid liquidity position. BRP is a real estate holding company that specializes in high- to low-middle income residential projects and office buildings, with the company's operations enjoying significant geographic diversification. The combined group is indirectly controlled by Brookfield Asset Management, an international asset manager of US$90 billion, including US$38 billion in real estate assets. BAM is rated 'BBB+' by Fitch, with Stable Outlook. COSAN LTD: S&P Puts 'BB-' Corporate Rating on Negative CreditWatch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'BB-' corporate credit ratings on Cosan Ltd. and its Brazilian operating subsidiary Cosan S.A. Industria e Comercio on CreditWatch negative. The CreditWatch listing follows Cosan's announcement that it has signed a memorandum of understanding with Rezende Barbosa S.A. Administracao e Participacoes (Rezende Barbosa; not rated), the controlling shareholder of Nova America S.A. Agroenenergia (Nova America; not rated), to combine their interests in the sugar and ethanol business. "With four mills and an estimated crushing capacity of 10.6 million tons of sugar, Nova America is one of the sector's largest players. The company also benefits from the brand name "Uniao"--the leader in Brazil's refined sugar retail market. The transaction will be equity financed, as it will not imply a cash payment from Cosan to Rezende Barbosa. Upon the conclusion of the deal, Rezende Barbosa will become one of Cosan's largest shareholders with an approximate 11% stake. On the other hand, Cosan will assume Nova America's R$1.145 billion indebtedness, placing considerable pressure on its consolidated credit metrics. According to Cosan, it is currently in an advanced stage in renegotiating the refinancing terms of a major portion of this debt position with Nova America's creditors, aiming at extending the maturities up to five years, which would reduce immediate cash flow pressures," said Standard & Poor's credit analyst Reginaldo Takara. The conclusion of the deal is subject to the successful debt renegotiation. Cosan expects to derive a number of mutually advantageous benefits through the acquisition and expand its presence in the sugar and ethanol market. Nevertheless, the CreditWatch listing reflects downward pressure on the ratings due to the increased financial leverage from assuming Nova America's debt and potential deterioration in the company's financial metrics in the face of uncertainty regarding current market trends and their effect on the company's profitability and cash flows. "We expect to resolve the CreditWatch listing in the next couple of months as S&P obtain further information on the company's ultimate capital structure and projected consolidated cash flows over the next few years," Mr. Takara added. GERDAU SA: Ratings Cut to “Underperform” at Santander SA -------------------------------------------------------- Gerdau S.A.'s rating was cut to “underperform” from “buy” at Santander SA, citing a potential debt downgrade and Brazil’s deepening recession, Veronica Navarro Espinosa of Bloomberg News reports. “Indebtedness has become a concern; we believe that Gerdau will likely lose its investment-grade status,” Santander analysts led by Felipe Reis wrote in a report obtained by the news agency. The 12-month target share price was cut to BRL14.30 from BRL21, Bloomberg News relates. “Gerdau’s operating performance was more strongly affected by the crisis and sooner than we anticipated,” Mr. Reis was quoted by the report as saying. According to Bloomberg News, Santander forecasts earnings before interest, taxes, depreciation and amortization will be BRL5.9 billion (US$2.6 billion) in 2009, 30% below the bank’s previous estimate. About Gerdau S.A. Headquartered in Porto Alegre, Brazil, Gerdau S.A. -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 28, 2008, Moody's Investors Service changed to positive from stable the outlook of all ratings related to Gerdau S.A. (Ba1 Corporate Family Rating and Ba1 US$600 million guaranteed perpetual bonds). TELE NORTE: UBS AG Raises Company to “Buy” on Strong Cash Flow -------------------------------------------------------------- Tele Norte Leste Participacoes S.A.'s shares increased 2.6% to BRL31.19, on March 16, at 1:37 p.m. New York time in Sao Paulo trading, after UBS AG raised the company to “buy” on the outlook for “strong” cash flow, Paulo Winterstein of Bloomberg News reports. “Potential synergy gains the company expects to obtain after integrating Brasil Telecom and also a faster drop in local interest rates, which is particularly important for a company as leveraged as Telemar, are pointing to free cash flow yields of 15 percent,” analyst Carlos Sequeira wrote in a note obtained by the news agency. According to the report, Mr. Sequeira said Tele Norte, which paid BRL5.37 billion (US$2.37 billion) to take over Brasil Telecom Participacoes SA, will likely reduce costs by about BRL700 million after the purchase is completed. The company may also save BRL250 million in 2009 tax payments, and BRL285 million in tax savings next year, from amortization of goodwill, the Rio de Janeiro-based analyst added. The report relates Mr. Sequeira said the money saved from lower interest payments as Brazil’s benchmark rate falls may be used to pay down debt or as part of dividends. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes S.A. -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As of March 9, 2009, the company continues to carry Standard and Poors long- term issuer credit rating at BB+. ========================== C A Y M A N I S L A N D S ========================== BRAC 2: Shareholders Receive Wind-Up Report ------------------------------------------- The shareholders of BRAC 2 Company met on March 4, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. 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 CARLUCCI INVESTMENTS: Members Receive Wind-Up Report ---------------------------------------------------- The members of Carlucci Investments Ltd. met on March 2, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 SMB, Grand Cayman CHANNEL BRIDGE ET AL: Liquidator to Present Wind-Up Report ---------------------------------------------------------- On March 19, 2009, Boussard & Gavaudan Asset Management, LP will present the companies' wind-up report and property disposal to the members of: -- Channel Bridge Special Situations Fund Limited; and -- Channel Bridge special Situations Master Fund Limited. The Liquidator can be reached at: Boussard & Gavaudan Asset Management, LP Calder House, 1 Dover Street, W1S 4LA London c/o Maples Corporate Services Limited PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands CIBC GLOBAL: Sole Shareholder Hears Wind-Up Report -------------------------------------------------- The sole shareholder of CIBC Global (Cayman) Ltd. received on March 2, 2009, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o James Bagnall Telephone: (345) 949-9876 Facsimile: (345) 949-1986 D.B. ZWIRN: Members to Receive Wind-Up Report on March 19 --------------------------------------------------------- The members of D.B. Zwirn Equity Investments Holdings (Cayman) Limited will meet on March 19, 2009, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lawrence Cutler c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104, Cayman Islands EOC CORP: Shareholders to Hear Wind-Up Report Today --------------------------------------------------- The shareholders of EOC Corp VI will meet today, March 18, 2009, to hear the liquidator's report on the company's wind-up proceedings and property disposal. 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: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Glaux Investments Limited met on March 5, 2009, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Raymond E. Whittaker c/o FCM LTD. PO Box 1982, Grand Cayman KY1-1104 Cayman Islands Tel: 345-946-5125 Fax: 345-946-5126 HARBOR DRIVE: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Harbor Drive Master Fund, Ltd. met on March 6, 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 IRONOPOLIS FUND: Members Receive Wind-Up Report ----------------------------------------------- The members of Ironopolis Fund met on March 5, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Giles Kerley Jan Neveril Maples Finance Limited P.O. Box 1093GT, Grand Cayman Cayman Islands MJX MACRO: Liquidator Presents Wind-Up Report --------------------------------------------- On March 10, 2009, Maricorp Services Ltd. will present the companies' wind-up report and property disposal to the members of: -- MJX Macro Strategies, Ltd.; and -- MJX Macro Strategies Master Fund, Ltd. The Liquidator can be reached at: Maricorp Services Ltd. 31 The Strand, 46 Canal Point Drive P.O. Box 2075, Grand Cayman KY1-1105 Cayman Islands NITC (CAYMAN ISLANDS): Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of NITC (Cayman Islands) Ltd. met on March 3, 2009, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Chang Yuo-Seng No. 56, Lane 111, Min Chuan Road, Hsin Chu Taiwan, R.O.C PENGANA ABSOLUTE: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Pengana Absolute Return Real Estate Fund met on March 6, 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 PIONEER FUND: Sole Member Hears Wind-Up Report ---------------------------------------------- The sole member of Pioneer Fund received on March 10, 2009, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Dirserv Ltd. c/o PO Box 1043, Grand Cayman KY1-1102 Cayman Islands Tel: 949-0050 Fax: 949-8062 ROCKBAY CAPITAL ET AL: Liquidator to Present Wind-Up Report ----------------------------------------------------------- On May 29, 2009, Chris Johnson will present the companies' wind-up report and property disposal to the members of: -- Rockbay Capital SI Master Fund, Ltd; and -- Rockbay Capital SI Offshore Fund, Ltd. The Liquidator can be reached at: Chris Johnson c/o John D’Cunha PO Box 2499, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 946-0820 Facsimile: (345) 946-0864 SATURN INC: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Saturn Inc. met on March 9, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. 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: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of SS7 Holdings Inc. met on March 6, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345) 949-8244 Facsimile: (345) 949-5223 TUTSAN INVESTMENTS: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Tutsan Investments Limited met on March 5, 2009, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Raymond E. Whittaker c/o FCM LTD. PO Box 1982, Grand Cayman KY1-1104 Cayman Islands Tel: 345-946-5125 Fax: 345-946-5126 ZS CAYMAN: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of ZS Cayman L.L.C. met on March 6, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robert Horne 1133 Avenue of Americas New York NY 10036, USA ============= J A M A I C A ============= AIR JAMAICA: Government to Reveal Divestment Update This Week ------------------------------------------------------------- The Jamaican government will reveal this week if the March 31 deadline for the divestment of Air Jamaica Limited will be met, Ingrid Brown of Jamaica Observer reports, citing Minister without portfolio in the Ministry of Finance, Don Wehby. "I will be having a meeting today, March 18, and after that meeting I will be making a statement on the matter," the report quoted Mr. Wehby as saying. The report relates Dennis Lalor who is heading up the Air Jamaica Privatisation Committee, and who is also the official spokesperson, declined to comment. An unnamed source told the Observer that while the deal might not be finalized by March 31, a Memorandum of Understanding (MoU) could be signed by then, outlining the terms both parties would agree to generally. The report relates the source added the negotiations were still ongoing and as such a final decision had not been reached as yet. Could Liquidate if No Buyer Emerges As reported in the Troubled Company Reporter-Latin America on Feb. 10, 2009, The Jamaica Gleaner said Mr. Wehby, head of Air Jamaica Privatisation Committee, is giving the Jamaican government an option to liquidate Air Jamaica if no viable investor was found by the divestment deadline on March 31. According to The Gleaner, Mr. Wehby said liquidation is a better option than rolling out a new round of subsidies for the struggling flagship airline in the fiscal year ahead. "Trying to keep it could result in a forced closure because of the lack of funds to carry the airline, especially in the context of the present world economic downturn and the hard demands that are being made on the budget," Mr. Wehby was quoted by the Gleaner as saying. The Jamaica Gleaner said the Air Jamaica Privatization Committee confirmed it's been in serious discussions with three prospective investors regarding the divestment of the national airline. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government owned 25% of the company after it went private in 1994. However, in late 2004, the government assumed full ownership of the airline after an investor group turned over its 75% stake. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported by the Troubled Company Reporter-Latin America on Nov. 6, 2008, Moody's Investors Service placed the debt ratings of Air Jamaica Limited, B1 senior unsecured notes guaranteed by the Government of Jamaica, on review for possible downgrade. The review coincides with Moody's action placing the ratings of the Government of Jamaica under review for downgrade on November 4, 2008. CABLE & WIRELESS: Regulator Ready to Intervene in Digicel Dispute ----------------------------------------------------------------- Jamaican Telecommunications Minister Derrick Smith said his Ministry stands ready to directly intervene in the on-going dispute between LIME (formerly Cable & Wireless Jamaica) and Digicel Jamaica, Radio Jamaica News reports. "At present, the dispute does not really require the Ministry to be directly involved (but) we have intervene ... we've had meetings with both parties but the Office of Utilities Regulations (OUR) and the Fair Trading Commission are currently dealing with this issue. On Thursday, I met with the Office of the Utilities Regulation (OUR) and they confirmed that they are meeting with the parties, dealing with this dispute," the report quoted Mr. Smith as saying. According to the report, the country's leading cellular service providers have been locked in a fierce battle for market share and supremacy which has spilled over into the courts. As reported in the Troubled Company Reporter-Latin America on March 17, 2009, Cayman Net News said Digicel Jamaica will file a defamation suit against competitor LIME in Kingston, contesting charges that the Irish telecommunications giant had blocked incoming calls to LIME customers. The report relates Digicel said the suit comes in reaction to “damaging allegations” made by its competitor, accusing the operator of blocking calls to Jamaica from LIME customers across the region. The Jamaica Gleaner said LIME accused rival Digicel of blocking calls from LIME customers in other Caribbean countries to the Digicel network in Jamaica. Lawrence McNaughton, LIME's executive vice-president of carrier services for the Caribbean, told The Gleaner in an interview that LIME customers in the Caribbean and some parts of the United Kingdom, United States and Canada were unable to contact Digicel customers in Jamaica because Digicel turned down a number of circuits, which take traffic from the rest of the region and from the US and other locations. The Gleaner said Digicel rejected LIME's claim, stating instead that at 4 p.m. January 7, Digicel customers were unable to call LIME landlines as they appeared to be have been blocked at the LIME end. LIME executives denied the allegations, the same report related. About LIME 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. * * * As of March 17, 2009, 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 also continues to Standard & Poor's "BB-" long-term foreign and local issuer credit ratings and "B" short-term foreign and local issuer credit ratings. JPSCO: IDT to Begin Hearing on Workers Payments Dispute ------------------------------------------------------- Jamaica's Industrial Disputes Tribunal (IDT) is expected to begin the hearings this week into the dispute between Jamaica Public Service Company (JPSCO)'s management and some of its workers, Radio Jamaica News reports. 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 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. Labor Minister Pearnel Charles, as cited by Radio Jamaica, said IDT will seek to interpret and clarify the agreement with a view of settling the dispute. "We want to have this finally settled and therefore the (I) have signed the order and it has been transmitted to the IDT. I expect that shortly they will meet and a final decision will be made," Mr. Charles was quoted by the report as saying. According to the report, the Labor Ministry obtained the 28 day injunction barring JPSCO employees from taking industrial action after efforts by the union and management to settle the matter failed. About JPSCO Headquartered in Kingston, Jamaica -- https://www.jpsco.com -- Jamaica Public Service Company Limited (JPSCO) is an integrated electric utility company and the sole distributor of electricity in Jamaica. The company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. Japanese-based Marubeni Corporation owns 80 percent of the company. The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has approximately 582,000 customers who are served by a workforce of over 1,600 employees. The Company owns and operates 28 generating plants, 54 substations, and approximately 14,000 kilometers of distribution and transmission lines. =========== M E X I C O =========== SARE HOLDING: Moody's Affirms Ba3 Senior Unsecured Debt Rating -------------------------------------------------------------- Moody's de Mexico downgraded the national scale senior unsecured debt rating of Sare Holding, S.A.B. de C.V. to Baa1.mx, from A3.mx. Concurrently, Moody's also affirmed Sare's global local currency senior unsecured debt rating at Ba3. The rating outlook was revised to negative, from stable. These ratings actions reflect the weakening of Sare's operating profits and its credit metrics, specifically interest coverage, debt to EBITDA and leverage levels. Furthermore, the company's incremental high rise construction of middle and higher income buildings has placed and will continue to place pressure on the company's receivables collection cycle, which has been extended towards the end of year. These projects have also significantly increased Sare's capital deployment, while providing slower cash inflow. The company's debt profile, in the past 12 months, has been shortened substantially, through the large use of short-term debt. Positively, Sare is addressing this challenge by refinancing approximately MXN$1,000 million pesos in short-term debt, with secured bank construction financing ranging from two to three years. The refinancings are expected to be closed by 2Q09. However, the cost of capital will increase, while the leverage levels will remain at current levels, at a minimum, for the rest of the year. The negative rating outlook reflects Moody's expectation that the company may continue to experience deterioration in its operating profits and credit metrics, if projected sales and collections of receivables (cash flows) for its high rise middle and higher income developments do not meet the company's expectations for 2009. Moody's also expects that Sare's leverage levels will not start declining until later in 2009 and the current economic downturn and credit crisis will continue to pressure the company's operating and credit metrics in the interim. According to Moody's, the current ratings reflect Sare's business model as a home developer for all income sectors of the market (with a focus on low- and middle-income buyers, which are thriving demographic sectors), its strong land reserve strategy, its good position in markets with strong demographic growth, its limited regional concentration, and its experienced management team that has been able to withstand periods of severe economic stress. It is one of the largest home developers in Mexico with over 40 years of real estate experience, with continued solid earnings and solid credit metrics. The company has proven efficient controls, construction expertise, sophisticated operating systems, and a diversified portfolio of housing developments. Sare has been in business since 1967, developing single-family homes and office buildings since 1977. Sare is a publicly traded company, which enhances its transparency and corporate governance. Moody's stated that a return to stable would be predicated on a reduction in leverage (as defined by debt to EBITDA) to under 2x on a consistent basis, as well as successfully restructuring and/or paying down all remaining short-dated debt maturities. A return to stable would also reflect adequate liquidity, with cash/ ST debt greater than 1x. A rating upgrade is unlikely at this time. Negative rating pressure will result from substantial missteps in the completion of high-rise projects as well as collections and sales of the units. Any liquidity issues and or any material breach in bond covenants, resulting in an acceleration of debt occur would result in a ratings downgrade. A weakening of the company's credit statistics: Total Debt/Total Assets moving closer to 30%; Debt/EBITDA moving closer to 3x; and fixed charge coverage close to 3.5x on a consistent basis would also pressure the ratings. Shifts in governmental housing policies combined with a substantial increase in interest rates would also place negative pressure on the ratings. These ratings were downgraded with a negative outlook: * Sare Holding, S.A.B. de C.V. -- national scale senior unsecured debt rating to Baa1.mx, from A3.mx; national scale issuer rating to Baa1.mx, from A3.mx These ratings were affirmed with a negative outlook: * Sare Holding, S.A.B. de C.V. -- Ba3 global scale local currency senior unsecured debt rating; Ba3 global scale local currency issuer rating. Moody's last action with respect to Sare took place on April 17, 2008 when Moody's assigned an A3.mx national scale rating, and a Ba3 global scale local currency issuer rating, to Sare's proposed senior unsecured notes. The rating outlook was stable Sare Holding, S.A.B de C.V, based in Mexico City, Mexico, is a fully integrated, diversified homebuilder engaged in the development, construction, marketing, consulting, and sales of affordable, middle- and upper income housing developments in Mexico. Sare was founded in 1967 and first developed single- family homes and office buildings in 1977. Sare has an important presence in Mexico City and nine different states in the country: State of Mexico, Jalisco, Puebla, Michoacan, Guanajuato, Queretaro, Quintana Roo, Guerrero and Morelos. Sare Holding, S.A.B. de C.V. is one of the top eight home developers in Mexico. As of December 31, 2008, Sare reported approximately $8.5 billion Mexican pesos in assets and $4.6 billion Mexican pesos in shareholders equity. Sare's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Sare's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. ================= V E N E Z U E L A ================= PDVSA: To Sign Guangdong Joint Venture With China National ---------------------------------------------------------- China National Petroleum Corp. (CNPC) will submit a plan to set up joint venture refinery with Petroleos de Venezuelas SA (PDVSA) in Guangdong province, Xinhua News reports, citing Jiang Jiemin, president of CNPC. According to the report, Mr. Jiang said the refinery will process 20 million tons of crude oil annually, an equivalent of 400,000 barrels per day. The report relates Mr. Jiang said CNPC will own 51% in the JV and PDVSA will take the rest. 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. * * * As of March 16, 2009, Petroleos de Venezuela continues to carry a 'BB-' local currency issuer rating from Moody's Ratings. The company also continues to carry Standard and Poor's BB- Issuer Credit Ratings. *********** 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 * * *