/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090513.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, May 13, 2009, Vol. 10, No. 93 Headlines A N T I G U A & B A R B U D A STANFORD INT'L BANK: IRS Balks at Antiguan Liquidators' Request A R G E N T I N A BANCO HIPOTECARIO: First Quarter Net Income Up 13% to ARS30 Mln BOIXADER: Proofs of Claim Verification Deadline is June 12 CONTENIDOS: Proofs of Claim Verification Deadline is June 12 ICS COMERCIAL: Proofs of Claim Verification Deadline is June 26 LISNOA SA: Proofs of Claim Verification Deadline is July 17 MARISAL SA: Proofs of Claim Verification Deadline is July 10 PITAGORAS SA: Proofs of Claim Verification Deadline is July 14 RICALUX SACI: Proofs of Claim Verification Deadline is June 23 SUMACREDIT: Proofs of Claim Verification Deadline is July 2 VANK SA: Proofs of Claim Verification Deadline is July 6 B E L I Z E * BELIZE: Supreme Court Rules Ex-Government Loan Unlawful B R A Z I L BANCO PINE: Posts R$20,070 Thousand Net Income in First Quarter BANCO VOTORANTIM: S&P Affirms 'BB+/B' Counterparty Credit Rating BNDES: Petrobras Should Finalize Bank Loan This Month, CFO Says BRASKEM SA: Petroquimica Triunfo's Board Approves Merger C A Y M A N I S L A N D S AJAX RE: S&P Reinstates 'CC' Rating on Class A Sries I Notes BIRMINGHAM LIMITED: Creditors' Proofs of Debt Due on June 30 DANCREST GLOBAL: Creditors' Proofs of Debt Due on June 30 EVEN EUROPEAN: Commences Wind-Up Proceedings FIM RELATIVE: Creditors' Proofs of Debt Due on June 30 HOUSTON ENERGY: Commences Wind-Up Proceedings INTEGRAL TRADE FUND: Creditors' Proofs of Debt Due on June 5 INTEGRAL TRADE MASTER: Creditors' Proofs of Debt Due on June 5 PRIMEO FUND: Appoints Cleaver and Fogerty as Liquidators SORIN CDO: Placed Under Voluntary Wind-Up THE MAGENTA FUND: Commences Wind-Up Proceedings THE MAGENTA MASTER: Commences Wind-Up Proceedings ZAPP (MANAGEMENT): Commences Wind-Up Proceedings C O L O M B I A BANCOLOMBIA: Posts COP51.6 Billion Net Income for April * COLOMBIA: IMF Okays 1-Year SDR6.966 Billion Loan Arrangement G R E N A D A * GRENADA: Taiwan Demands Payment for Loans From Previous Admin J A M A I C A CABLE & WIRELESS: LIME Director Resigns From Post CARIBBEAN CEMENT: Employees Ordered to Get Back to Work NWC: Workers Reject Jamaican Government's Wage Freeze Order M E X I C O BANCA MIFEL: S&P Affirms 'BB-/B' Counterparty Credit Rating DESARROLLADORA METROPOLITANA: Moody's Junks Ratings on Senior Debt P U E R T O R I C O BALLY TECH: Inks Services Contract With Sheraton Puerto Rico V E N E Z U E L A STANFORD INT'L BANK: Venezuela Sells Local Unit for VEB240 Million PDVSA: Ensco Int'l Submits Termination of Operations Notice V I R G I N I S L A N D S KINGATE FUNDS: BVI Supreme Court Appoints Provisional Liquidators X X X X X X X X * Fitch Says Real Global Credit Growth Continues to Fall - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L BANK: IRS Balks at Antiguan Liquidators' Request --------------------------------------------------------------- The United States Internal Revenue Service (IRS) said that Antiguan liquidators seeking U.S. court authority over International Bank Limited (SIBL) may hinder the agency's attempts to collect US$227 million in back taxes, Anna Driver at Reuters reports, citing court papers. The IRS, according to Reuters, argued that the Antigua liquidators had already spoiled computer records from the bank's Canadian office. The report relates the court documents, filed with the U.S. District Court in Dallas, also said: "a tribunal in Antigua, with its reputation as a tax haven country that promotes financial secrecy, may not divulge the financial records of Stanford International Bank sought by the IRS." As reported in the Troubled Company Reporter-Latin America, Nigel Hamilton-Smith and Peter Wastell, client partners at Vantis Business Recovery Services, were appointed as joint liquidators for SIBL on April 15, 2009, by an Order of the High Court of Antigua and Barbuda. Stanford Trust Company Limited meanwhile remains in receivership and the receivers continue with their investigations. The liquidation proceedings have been commenced following the receivership of SIBL, during which time the receivers concluded that it had become clear that the bank's assets were significantly less than its liabilities. Messrs. Hamilton-Smith and Wastell were previously appointed by the Antiguan Financial Services Regulatory Commission as receivers for SIBL. The Securities and Exchange Commission (SEC), on Feb. 17, charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include SIBL, Stanford Group Company (SGC), and investment adviser Stanford Capital Management. As reported in the Troubled Company Reporter-Latin America on April 8, 2009, Bloomberg News said U.S. District Judge David Godbey seized all of Mr. Stanford’s corporate and personal assets and placed them under the control of court-appointed SGC receiver Ralph Janvey. 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 ================= BANCO HIPOTECARIO: First Quarter Net Income Up 13% to ARS30 Mln --------------------------------------------------------------- Banco Hipotecario S.A.'s first quarter net income increased 13.0% to ARS30.0 million from the same period last year, and 104.6% higher from the last quarter. The bank's financial income was similar to the previous quarter and increased 45.4% with respect to the same quarter of last year, while financial expenditure decreased 20.3% in the quarter and was 28.2% higher than last year. Banco Hipotecario's financial margins of ARS126.8 million were 93.1% higher than the previous quarter and 95.2% higher than a year ago. The bank's deposits grew 30.3% QoQ and 103.5% YoY. Banco Hipotecario S.A. is a commercial bank that accepts deposits and offers retail and commercial banking services. Banco Hipotecario offers mortgage, personal and corporate loans, credit cards, and insurance services. It operates through a network of 43 branches and 43 additional points of sale located in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on April 1, 2009, Standard & Poor's Ratings Services lowered its counterparty creditrating on Banco Hipotecario S.A. and the ratings on two of the bank's notes issues to 'CC' from 'B-', following the announcement of a cash tender offer that S&P considers distressed under its criteria. BOIXADER: Proofs of Claim Verification Deadline is June 12 ---------------------------------------------------------- The court-appointed trustee for Boixader & Picardi S.R.L.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until June 12, 2009. The trustee will present the validated claims in court as individual reports on August 7, 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 21, 2009. CONTENIDOS: Proofs of Claim Verification Deadline is June 12 ------------------------------------------------------------ The court-appointed trustee for Contenidos Editoriales S.R.L.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until June 12, 2009. The trustee will present the validated claims in court as individual reports on August 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 September 22, 2009. ICS COMERCIAL: Proofs of Claim Verification Deadline is June 26 --------------------------------------------------------------- The court-appointed trustee for ICS Comercial S.A.'s reorganization proceedings, will be verifying creditors' proofs of claim until June 26, 2009. The trustee will present the validated claims in court as individual reports on August 28, 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 October 6, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on May 26, 2010. LISNOA SA: Proofs of Claim Verification Deadline is July 17 ----------------------------------------------------------- The court-appointed trustee for Lisnoa S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until July 17, 2009. The trustee will present the validated claims in court as individual reports on September 14, 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 October 27, 2009. MARISAL SA: Proofs of Claim Verification Deadline is July 10 ------------------------------------------------------------ The court-appointed trustee for Marisal S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until July 10, 2009. PITAGORAS SA: Proofs of Claim Verification Deadline is July 14 -------------------------------------------------------------- The court-appointed trustee for Pitagoras S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until July 14, 2009. The trustee will present the validated claims in court as individual reports on September 9, 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 October 22, 2009. RICALUX SACI: Proofs of Claim Verification Deadline is June 23 -------------------------------------------------------------- The court-appointed trustee for Ricalux S.A.C.I.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until June 23, 2009. The trustee will present the validated claims in court as individual reports on August 26, 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 October 7, 2009. SUMACREDIT: Proofs of Claim Verification Deadline is July 2 ----------------------------------------------------------- The court-appointed trustee for Sumacredit Cooperativa de Credito y Vivienda Limitada's bankruptcy proceedings, will be verifying creditors' proofs of claim until July 2, 2009. The trustee will present the validated claims in court as individual reports on August 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 24, 2009. VANK SA: Proofs of Claim Verification Deadline is July 6 -------------------------------------------------------- The court-appointed trustee for Vank S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until July 6, 2009. The trustee will present the validated claims in court as individual reports on August 19, 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 October 1, 2009. =========== B E L I Z E =========== * BELIZE: Supreme Court Rules Ex-Government Loan Unlawful --------------------------------------------------------- Belize Supreme Court Madam Justice Minnet Hafiz declared a Loan Note dated March 23, 2007 -- signed by the former Prime Minister and Minister of Finance Said Musa -- promising to pay Belize Bank Limited the sum of BZ$33.5 million (US$17.1 million), as unlawful and could have been a criminal offence, Caribbean360.com reports. The report says Ms. Hafiz ruled that the loan contravened section 7(1) and (2) of the Finance and Audit (Reform) Act, 2005, which requires a resolution of the National Assembly before the government could enter into any loan agreement of or above the equivalent of BZ$10 million (US$5.1 million). No such resolution had been obtained, the report notes. "As the Loan Note has now been declared unlawful and therefore void, it follows that the Belize Bank has no right to retain this money which should be returned to the government of Belize," the Dean Barrow administration said in a statement obtained by the news agency. "The government is advised that apart from any civil liability which may be incurred by the Bank in that behalf, the retention of money in such circumstances may also amount to a criminal offence." "The government is carefully considering its options as to what further action should be taken in this respect," the statement added. According to Caribbean360.com, the case was brought by the Association of Concerned Belizeans and other public-spirited persons and organisations. * * * According to Moody's Rating Site, Belize continues to carry a Caa1 foreign and local currency rating. =========== B R A Z I L =========== BANCO PINE: Posts R$20,070 Thousand Net Income in First Quarter --------------------------------------------------------------- Banco Pine recorded a R$20,070 thousand net income in the first quarter 2009. The annualized Return on Average Equity (ROAE) was 10.1% in the period. The bank's recurring administrative expenses declined by 17.5% to R$25,271 thousand in first quarter and 31.1% in the fourth quarter. This reduction is the result of strict cost control and budget discipline, the bank said. Banco Pine's total loan portfolio, reached R$3.9 billion on March 31, 2009, a 9.2% decrease in the quarter. The bank's corporate loan portfolio, Banco PINE's core business, ended March at R$2.8 billion, contracting 7.4% in the first quarter, while trade Finance portfolio presented strong growth in the quarter of 27.3%, despite the slight appreciation of the Brazilian real in the period. Banco Pine's fist quarter cash position remained comfortable, representing 51% of time deposits. The Bank's Capital Adequacy Ratio stood at 18.6%, which demonstrates a comfortable capital position. About Banco Pine Headquartered in Sao Paulo, Brazil, Banco Pine was established in 1997 by the brothers Nelson and Noberto Pinheiro after the sale in 1996 of their participation in another family institution. A comprehensive corporate and operational restructuring was implemented and in the first half of 2005 Noberto Pinheiro became the bank's majority shareholder. In April 2007, Banco Pine went public by placing non-voting preferred shares at the Bovespa Level 1 on the New Brazilian Stock Market. These shares enjoy a tag-along privilege, giving minority shareholders 100% of the value of the block of controlling shares in the event of the sale of the institution. * * * As reported in the Troubled Company Reporter-Latin America on May 7, 2009, Fitch Ratings affirmed Banco Pine S.A.'s currency Long-term Issuer Default Rating at 'B+'; currency Short-term IDR at 'B'; and Individual Rating at 'D'. BANCO VOTORANTIM: S&P Affirms 'BB+/B' Counterparty Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB+/ B' global scale counterparty credit rating and its 'brAA+/brA-1' Brazil national scale rating on Banco Votorantim S.A. The ratings on Banco Votorantim S.A. incorporate the challenges it faces in the very competitive, lower margin wholesale banking segment, and possible deterioration in the asset quality of its auto loan portfolio in a more negative economic environment. This follows a long period of healthy growth. The rating benefits from the support of its shareholders, the bank's strong brand name and track record, its experienced management team, and agile decision making. The strategic partnership with Banco do Brasil S.A (BdB; BBB-/Stable/--) through the sale by Votorantim Financas S.A. of 49.99% voting and 50.00% total capital was very positive and supportive in S&P's view. For BdB, it was a good opportunity to strength its modest positioning in the vehicle financing market. It will also strengthen BdB's position in segments such as corporate banking, capital markets, and brokerage. For Banco Votorantim, the deal is very important in terms of growth prospects as it leverages the bank's origination and distribution and ties the bank to a strong and relevant partner, allowing access to stable long-term funding to support its growth. Although the transaction is subject to Central Bank approval, S&P believes that it is only a question of time and do not expect objections to arise. The ratings on Banco Votorantim incorporate support from the announced strategic partnership because it improves the bank's financial flexibility and growth prospects. S&P also expects Votorantim Group (BBB/Negative/--) to support the bank if needed, as it did in the past via capital injections. The stable outlook reflects S&P's expectation that the bank will be able to sustain its good asset-quality indicators close to current levels, even in a more challenging operating environment. S&P could lower the ratings or revise the outlook to negative if asset quality deteriorates considerably from current levels, if it surpasses the industry average, or if S&P sees a major shift in the shareholders' implicit support or strategy. S&P does not expect an upward rating movement in the next 12 months due to the challenging operating environment that lies ahead for financial institutions in general. BNDES: Petrobras Should Finalize Bank Loan This Month, CFO Says --------------------------------------------------------------- Brazilian state-run oil Petroleo Brasileiro S.A.(Petrobras) should complete its 2009 financing needs by the end of May, when a loan package with Banco Nacional de Desenvolvimento Economico e Social SA (BNDES) should be finalized, Jeff Fick of Dow Jones Newswires reports, citing Petrobras Chief Financial Officer Almir Barbassa. In January, the report recalls Petrobras said it would receive US$11.9 billion in 2009 from the BNDES to help fund the company's planned investments of US$28.6 billion. "We're currently completing discussions with the BNDES, and the amount financed should be finalized by the end of this month," the report quoted Mr. Barbassa as saying. According to the report, Mr. Barbassa said Petrobras also raised US$6.5 billion in a bridge loan from a consortium of local and international banks to help fund the planned investments. Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As of April 22, 2009, Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. The rating was assigned in August 2007. BRASKEM SA: Petroquimica Triunfo's Board Approves Merger -------------------------------------------------------- Braskem SA, Petroleo Brasileiro S.A. (Petrobras), and Petrobras Quimica S.A.- Petroquisa (Petroquisa) disclosed the merger of Petroquimica Triunfo S.A. (Triunfo) into Braskem. The move was approved during an extraordinary general meeting held by Triunfo, following the terms of the Protocol and Justification of Merger of Triunfo into Braskem signed on April 7, 2009, with the consequential extinction of Triunfo and its universal succession by Braskem. About Braskem S.A. Braskem S.A. -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As reported by the Troubled Company Teporter-Latin America on Jan. 23, 2009, Fitch Ratings affirmed Braskem S.A.'s ratings: -- Foreign currency long-term Issuer Default Rating (IDR) at 'BB+'; -- Local currency long-term IDR at 'BB+'; -- National long-term rating at 'AA(bra)'; -- Unsecured senior notes due 2014, 2017, 2018 at 'BB+'; -- Unsecured senior perpetual bonds at 'BB+'; -- 13th debenture issue,at 'AA(bra)'. ========================== C A Y M A N I S L A N D S ========================== AJAX RE: S&P Reinstates 'CC' Rating on Class A Sries I Notes ------------------------------------------------------------ Standard & Poor's Ratings Services reinstated its rating on Ajax Re Ltd.'s class A principal-at-risk variable-rate series I notes, which S&P withdrew on May 8 due to an administrative error. The reinstated rating on the notes is 'CC/Watch Neg'. S&P then lowered the reinstated rating to 'D', removed it from CreditWatch negative, and withdrew it. The notes initially became vulnerable to nonpayment due to Ajax Re's indirect exposure to Lehman Brothers Holdings Inc. as guarantor of Lehman Brothers Special Financing, the total return swap counterparty. S&P first downgraded the notes on Sept. 30, 2008. Ajax Re has previously paid the quarterly scheduled interest payments, but the ultimate payment of principal was not made in full on May 8, 2008 due to a shortfall in the realizable value of the collateral assets under the TRS. S&P's systems automatically withdraw ratings on the legal final maturity date. S&P thus withdrew the rating on the notes on May 8 without the rating first being lowered to 'D' to reflect the payment default. This media release corrects that error. Following reinstatement of the rating on the notes, S&P lowered the rating to 'D' from 'CC' and removed it from CreditWatch negative due to the aforementioned principal payment default. BIRMINGHAM LIMITED: Creditors' Proofs of Debt Due on June 30 ------------------------------------------------------------ The creditors of Birmingham Limited are required to file their proofs of debt by June 30, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on January 23, 2009. The company's liquidators are: Ian Goddard Cereita Lawrence P.O. Box 10338, Grand Cayman KY1-1003 Telephone: (345) 949-7232 Facsimile: (345) 949-7230 DANCREST GLOBAL: Creditors' Proofs of Debt Due on June 30 --------------------------------------------------------- The creditors of Dancrest Global Equity Fund, Ltd. are required to file their proofs of debt by June 30, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on February 20, 2009. The company's liquidator is: James Keyes 101 Front Street, Hamilton HM 12 Bermuda EVEN EUROPEAN: Commences Wind-Up Proceedings -------------------------------------------- On April 16, 2009, the sole shareholder of Even European Opportunities Ltd. passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 FIM RELATIVE: Creditors' Proofs of Debt Due on June 30 ------------------------------------------------------ The creditors of FIM Relative Value Fund, Ltd. are required to file their proofs of debt by June 30, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 30, 2008. The company's liquidator is: James Keyes 101 Front Street, Hamilton HM 12 Bermuda HOUSTON ENERGY: Commences Wind-Up Proceedings --------------------------------------------- On April 14, 2009, the shareholder of Houston Energy International Ltd. passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Stephen H. Pouns c/o Ian Gobin Walkers Walker House, 87 Mary Street PO Box 908GT, George Town Grand Cayman KY1-9001, Cayman Islands Telephone: +44 (0)20 7220 4987 Facsimile: +44 (0)20 7220 4998 INTEGRAL TRADE FUND: Creditors' Proofs of Debt Due on June 5 ------------------------------------------------------------ The creditors of Integral Trade Fund Limited are required to file their proofs of debt by June 5, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 16, 2006. The company's liquidator is: Ogier c/o Colin J. MacKay Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 INTEGRAL TRADE MASTER: Creditors' Proofs of Debt Due on June 5 -------------------------------------------------------------- The creditors of Integral Trade Master Fund SPC are required to file their proofs of debt by June 5, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 16, 2006. The company's liquidator is: Ogier c/o Colin J. MacKay Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 PRIMEO FUND: Appoints Cleaver and Fogerty as Liquidators -------------------------------------------------------- On January 23, 2009, Richard E.L. Fogerty and G. James Cleaver was appointed as liquidators of Primeo Fund. The Liquidators can be reached at: Richard E.L. Fogerty G. James Cleaver Zolfo Cooper PO Box 1102, 4th Floor, Bermuda House George Town, Grand Cayman, Cayman Islands Telephone: 345 946 0081 Facsimile: 345 946 0082 SORIN CDO: Placed Under Voluntary Wind-Up ----------------------------------------- On April 20, 2009, the sole shareholder of Sorin CDO V Ltd. Passed a resolution that voluntarily winds 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 THE MAGENTA FUND: Commences Wind-Up Proceedings ----------------------------------------------- On April 16, 2009, the sole shareholder of The Magenta Fund Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Avalon Ltd. Landmark Square, 1st Floor, 64 Earth Close West Bay Beach, PO Box 715, George Town Grand Cayman KY1-1107, Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 THE MAGENTA MASTER: Commences Wind-Up Proceedings ------------------------------------------------- On April 15, 2009, the sole shareholder of The Magenta Master Fund passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Avalon Ltd. Landmark Square, 1st Floor, 64 Earth Close West Bay Beach, PO Box 715, George Town Grand Cayman KY1-1107, Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 ZAPP (MANAGEMENT): Commences Wind-Up Proceedings ------------------------------------------------ On April 16, 2009, the shareholder of Zapp (Management) Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Bruce David Mcnaught FCA c/o Charles Lee Walkers 6 Gracechurch Street, London, EC3V 0AT Granary House, The Grange St Peter Port, Guernsey, GY1 2QG Telephone: +44 (0)20 7220 4994 Facsimile: +44 (0)20 7220 4998 =============== C O L O M B I A =============== BANCOLOMBIA: Posts COP51.6 Billion Net Income for April ------------------------------------------------------- Bancolombia S.A. reported unconsolidated net income of COP51.6 billion for the month ended April 30, 2009. Net income for Bancolombia on an unconsolidated basis totaled COP413.8 billion for the first four months of 2009, decreasing 2.6% as compared to the same period last year. The bank's net interest income, including interest from investment securities, totaled COP249.3 billion in April 2009, while for the four month period ended April 30, 2009, net interest income totaled COP945.9 billion, increasing 18.5% as compared to the same period last year. Bancolombia's net fees and income from services totaled COP67.8 billion in April 2009, while for the four month period ended April 30, 2009, net fees and income from services totaled COP268.1 billion, which represents an increase of 7.7% as compared to the same period of 2008. The bank's total assets (unconsolidated) amounted to COP40.4 trillion, gross loans amounted to COP27.9 trillion, deposits totaled COP26.2 trillion and Bancolombia's total shareholders' equity amounted to COP5.9 trillion. Bancolombia's unconsolidated level of past due loans (overdue more than 30 days) as a percentage of total loans was 3.95% as of April 30, 2009, and the coverage for past due loans was 138.8% as of the same date. Meanwhile, According to ASOBANCARIA -- Colombia's national banking association -- Bancolombia's market share of the Colombian financial system as of April 2009, were: -- 21.7% of total net loans, -- 21.3% of total checking accounts, -- 19.4% of total savings accounts, -- 18.3% of time deposits, and -- 19.3% of total deposits. About Bancolombia 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. * * * Based on Moody's Web site, the company continues to carry Ba2 foreign currency deposits rating and D financial strength rating. * COLOMBIA: IMF Okays 1-Year SDR6.966 Billion Loan Arrangement -------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) approved a one-year SDR6.966 billion (about US$10.5 billion) arrangement for Colombia under the Flexible Credit Line. The Colombian authorities have stated they intend to treat the arrangement as precautionary and not draw on the line. The FCL is available to countries, such as Colombia, that have demonstrated a very strong track record of sound macroeconomic policies and institutional frameworks. The arrangement for Colombia is the second commitment in Latin America and the third overall under the IMF’s FCL, which was created in the context of a major overhaul of the Fund’s lending framework on March 24, 2009. The FCL is designed to help countries’ crisis prevention efforts by providing the flexibility to draw on the credit line at any time. Disbursements are not phased nor conditioned on compliance with policy targets as in traditional IMF-supported programs. This flexible access is justified on the basis that the strict qualification criteria for the FCL provides assurances that sound economic policies will remain in place to confront the challenges ahead. Following the Executive Board discussion, John Lipsky, First Deputy Managing Director and Acting Chair said: “During the last decade, Colombia has maintained a very strong macroeconomic performance, underpinned by solid institutional policy frameworks. GDP growth has been robust. The inflation targeting regime brought inflation down to single digits. Anchored on its medium term fiscal framework, Colombia’s debt ratios have declined substantially. The flexible exchange rate regime and prudent debt management have helped to reduce balance sheet vulnerabilities. Strong supervision and regulation have kept the financial system sound. “Notwithstanding its very strong fundamentals, Colombia’s near term outlook has been adversely affected by the global environment. While the flexible exchange rate absorbed the first round effects of the global crisis, weak external demand has led to a contraction of exports and a considerable slowdown in economic activity. Nonetheless, the financial system has not experienced major strains since the onset of the global crisis, and the Government of Colombia has maintained access to international capital markets at favorable terms. “The authorities’ policy response to the global crisis has been prudent and appropriate. With inflation abating, monetary policy has been eased. The authorities are also allowing automatic fiscal stabilizers to operate fully, while preserving medium-term fiscal sustainability. The exchange rate has been an effective shock absorber with limited rules-based intervention to smooth volatility, and reserve losses have been small. The authorities have taken timely steps to protect the financial system by increasing the deposit insurance coverage. They have also averted a possible liquidity crunch by securing external financing to the state-owned foreign trade bank which is providing loans to banks and corporations facing reduced access to external trade credit. “The one-year arrangement under the IMF’s Flexible Credit Line, which the authorities intend to treat as precautionary, will play an important role in bolstering confidence in the authorities’ policy framework and strategy at a time of heightened global uncertainty. Colombia’s strong fundamentals and institutional frameworks, its proven track record of sound macroeconomic policies, and the additional insurance provided by the FCL arrangement, give confidence that the authorities are well prepared to manage potential risks and pressures in the event that the global environment deteriorates further,” Mr. Lipsky said. * * * As reported by the Troubled Company Reporter-Latin America on January 9, 2009, Fitch Ratings assigned a long-term foreign currency Issuer Default Rating of 'BB+' to the Republic of Colombia 10-year US$1 billion Eurobond (7.375% coupon). ============= G R E N A D A ============= * GRENADA: Taiwan Demands Payment for Loans From Previous Admin --------------------------------------------------------------- The Export-Import Bank of the Republic of China on Taiwan has issued a notice to the Grenada government for the repayment of four loans, worth around US$25 million, given to the previous administration, Caribbean360.com reports. The report relates the bank said it will pursue all legal avenues to recover the debt. According to Caribbean360.com, Taiwan said the former Keith Mitchell government did not repay the money that was borrowed between 1990 and 2001. A court in the United States had previously ordered Grenada to repay the money, following the failure of the then government to service the loans, the report says. "Government is considering all its options as it seeks to resolve this matter. As a first step, Government will need to retain new legal consul in New York where the judgment was rendered to ensure Grenada's interest is adequately represented," the report quoted Grenada Finance Minister Nazim Burke as saying. ============= J A M A I C A ============= CABLE & WIRELESS: LIME Director Resigns From Post ------------------------------------------------- Lime (formerly Cable & Wireless Jamaica), a unit of Cable & Wireless plc, disclosed that Jorge Diaz has resigned as director from the company's Board effective May 6, 2009. Mr. Diaz also served as a member of the Audit Committee. The company said the resignation was not related to any disagreement in respect of accounting principles or practices, financial statement disclosure or any other material issue impacting on the Audit Committee or his ability to properly carry out the functions delegated by the Board. 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. CARIBBEAN CEMENT: Employees Ordered to Get Back to Work ------------------------------------------------------- Jamaica's Industrial Dispute Tribunal (IDT) has ordered staff at the Caribbean Cement Company to resume work, The Gleaner reports. Labour Minister Pearnel Charles told The Gleaner that the matter was brought before the IDT on Sunday after unions representing workers at the cement company failed to show up for meetings at the ministry. Mr. Charles, as cited in the report, said union representatives had failed to honour his requests to attend a number of the meetings at his offices on North Street on the weekend. Meanwhile, RadioJamaica reports that Vice President of the National Workers Union Granville Valentine said he was unaware of the IDT's ruling or that the matter had been referred to the IDT. He said he had not received any correspondence on the matter from either the Ministry of Labour or the IDT, the report relates. About Caribbean Cement Headquartered in Rockfort, Kingston, Jamaica, Caribbean Cement Company Limited -- http://www.caribcement.com-- has been producing a consistently high quality of portland cement using one hundred percent Jamaican raw materials since 1952. Carib Cement has as a subsidiary company Jamaica Gypsum and Quarries Limited (JGQ), which supplies the company with the gypsum used in the manufacture of its cement. The company exports its surplus gypsum and boasts its own ports for the shipment abroad of both its cement and gypsum. The company is a major contributor to the Jamaican economy and employs some 250 persons. NWC: Workers Reject Jamaican Government's Wage Freeze Order ----------------------------------------------------------- Workers at the National Water Commission (NWC) rejected the Jamaican government's decision to freeze their wages, RadioJamaica reports. Also, the report says a meeting between officials of the Ministry of Finance and representatives of the Jamaica Confederation of Trade Unions (JCTU) collapsed without a deal to settle the impasse. According to the report, the Ministry of Finance is sticking to its position that public sector workers and those employed to agencies owned by the state will not be paid an increase this year. The report relates the National Workers Union (NWU), which represents some NWC workers, says the workers have a signed contract and will not accept a wage freeze. As reported in the Troubled Company Reporter-Latin America on May 12, 2009, RadioJamaica said some of NWC's operations are facing uncertainty following the workers' decision to take industrial action. However, RadioJamaica noted it is still not clear what action the workers intend to take. According to RadioJamaica, the NWC management said it is awaiting further instructions from the Government regarding adjustments to salaries, and Corporate Public Relations Manager Charles Buchanan called on the workers to hold strain until a final determination is made. About NWC The National Water Commission -- http://www.nwcjamaica.com-- is a statutory organisation charged with the responsibility of providing potable water and wastewater services for the people of Jamaica. Although there are other water service providers such as Parish Councils and private water companies, none provides as much as the National Water Commission. =========== M E X I C O =========== BANCA MIFEL: S&P Affirms 'BB-/B' Counterparty Credit Rating ----------------------------------------------------------- Standard & Poor's Rating Services said that it affirmed its 'BB-/B' counterparty credit rating on Banca Mifel S.A. At the same time, S&P affirmed its 'mxBBB+/mxA-2' national scale (CaVal) CCR on Mifel. The outlook on both ratings is stable. S&P also affirmed its 'B-' rating on Mifel's $100 million perpetual, noncumulative, nonpreferred subordinated notes. S&P has also assigned a rating of 'BB-/B' to Mifel's certificate of deposit. "Our ratings on Mifel are constrained by the bank's poor profitability, its low capitalization levels, and the difficult operating environment. The bank's improving asset quality, stable and loyal client base, and capable management support the ratings," said Standard & Poor's credit analyst Laurence Wattraint. Mifel's asset quality has dramatically improved in 2008. The bank's NPA-to-total loan ratio dropped to 2.83% by March 2009 from 8.12% at the end of 2007, thanks to better credit practices resulting in less need for restructuring and improved collections. Going forward, S&P expects Mifel to maintain NPAs around 3.5% as some restructuring might be needed in this more difficult economic environment. Nonperforming loan coverage through loan loss provisions remains low at 82% as of March 2009. S&P expects the bank to improve that ratio even though it will put further pressure on the bank's already poor profitability. "The stable outlook reflects our opinion that Mifel will continue to improve its credit processes and maintain adequate liquidity. S&P does not foresee any positive rating action during 2009 due to pressures on profitability and the overall difficult economic environment. If the bank shows a loss, or if its ATE falls below 7% by year-end 2009, the rating could be lowered," Ms. Wattraint added. DESARROLLADORA METROPOLITANA: Moody's Junks Ratings on Senior Debt ------------------------------------------------------------------ Moody's de Mexico has downgraded the ratings of Desarrolladora Metropolitana SA de CV to Ca from B2 senior unsecured debt; to Ca, from B2 global scale local currency issuer rating and to Ca.mx, from Ba1.mx national scale issuer rating. The ratings are under review for possible downgrade. The rating action reflects the potential for above-average loss severity on Demet's senior unsecured debt as, the company failed to pay the debt service due on May 8, 2009 on its US dollar senior unsecured global bonds with a maturity of May 9, 2017. The bonds currently have a balance of approximately US$174 million, and the company has a 30 day grace period (until June 8, 2009) to pay the defaulted debt service. The company's failure to repay the debt service payment by June 8, 2009 will most likely lead to an imminent acceleration of the total debt balance. In its review Moody's will monitor Demet's ability to repay its debt service and refinance other debt obligations, in light of the extremely constrained Mexican as well as global credit and capital markets. Moody's will also closely monitor the firm's operating and credit statistics, and its ultimate strategic direction and capital structure. These ratings were downgraded and are under review for possible downgrade: * Desarrolladora Metropolitana SA de CV -- global scale local currency issuer rating to Ca, from B2; national scale issuer rating to Ca.mx, from Ba1.mx, senior unsecured long-term debt to Ca, from B2. Moody's last rating action with respect to Demet was on April 12, 2007, when Moody's assigned a B2 rating to the company's senior notes. Desarrolladora Metropolitana is a homebuilder engaged in the development, construction, marketing and sale of affordable housing in Mexico. ==================== P U E R T O R I C O ==================== BALLY TECH: Inks Services Contract With Sheraton Puerto Rico ------------------------------------------------------------ Bally Technologies Inc. will provide a comprehensive slot accounting, player-tracking, and marketing system solution for the opening of the new Sheraton Puerto Rico Convention Center Hotel & Casino this November in San Juan. After a highly competitive and exhaustive evaluation process, Bally was selected to provide a complete solution for the new casino's high-speed Ethernet-based casino floor. Bally's solution includes its new Microsoft Windows Version 11.0 of its powerful slot accounting and player-tracking system; 465 iVIEW displays; a full suite of marketing, promotions, and customer-relationship solutions including Bally Power Bonusing(TM); Bally's award- winning Business Intelligence Solutions; TableView real-time table rating and player-tracking system; and the new Download Configuration Manager, a server application that allows casino operators to view, examine, and manage their floor configuration from a central location. "We considered a number of factors when selecting our systems partner, and we ultimately chose Bally because of their outstanding reputation for customer support and their broad portfolio of marketing and promotions solutions," said Robin Powell, Principal of Talisman Group, the consulting firm developing and executing the concept and installation of the casino for Interlink Group, the managing partner at the Sheraton Puerto Rico Convention Center Hotel & Casino. About Sheraton Puerto Rico The Sheraton Puerto Rico Convention Center Hotel & Casino -- http://www.starwoodhotels.com.-- is located amidst the Puerto Rico Convention Center District facing the Bay of San Juan. The facility features a 500-room hotel resort, 35,000 square-foot conference center, five restaurants, and a casino that will open with more than 450 slot machines and 16 table games. About Bally Technologies Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide- area progressives and Class II lottery and central determination games and platforms. Bally Technologies also offers an array of casino management, slot accounting, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Mississippi. The company's South American operations are located in Argentina. The company also has operations in France, Germany, Macau, China, India, and the United Kingdom. * * * As reported by the Troubled Company Reporter - Latin America on October 9, 2008, Fitch Ratings assigned a 'BB+' rating to Bally Technologies, Inc.'s new US$300 million credit facility. The credit facility rating is two notches above Bally's 'BB-' Issuer Default Rating due to Fitch's view of strong over- collateralization of that debt. The Rating Outlook is Positive. ================= V E N E Z U E L A ================= STANFORD INT'L BANK: Venezuela Sells Local Unit for VEB240 Million ------------------------------------------------------------------ The Venezuelan government sold Stanford Bank SA, the Venezuelan unit of Stanford International Bank Limited (SIBL), for VEB240 million (US$111.6 million) to Banco Nacional de Credito (BNC), Darcy Crowe of Dow Jones Newswires reports. The report relates BNC will merge with the local Stanford bank and part of the payment will be used to cover losses generated by SIBL. According to the report, the merged bank will be called Banco Nacional de Credito. Government officials, DJ Newswires notes, said the government will not receive any income from the sale. As reported in the Troubled Company Reporter-Latin America on Feb. 27, 2009, The Associated Press said SIBL's Venezuelan unit was put up for sale after the goverment seized its business. The AP recalled Venezuela's government seized temporary control of Stanford Bank SA after panicked withdrawals on news of U.S. fraud charges against bank owner Robert Allen Stanford and three of his companies. The Securities and Exchange Commission (SEC), on Feb. 17, charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include SIBL, Stanford Group Company (SGC), and investment adviser Stanford Capital Management. According to a TCR-LA April 8 report, citing Bloomberg News, U.S. District Judge David Godbey seized all of Mr. Stanford’s corporate and personal assets and placed them under the control of court-appointed SGC receiver Ralph Janvey. 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. PDVSA: Ensco Int'l Submits Termination of Operations Notice ----------------------------------------------------------- Ensco International Incorporated provided an update on the status of the ENSCO 69 jackup drilling rig given recent events in Venezuela. As previously disclosed, since May 2007, ENSCO 69 has been contracted to Petrosucre, a subsidiary of Petroleos de Venezuela S.A., the national oil company of Venezuela ("PDVSA"). In January 2009, Ensco suspended drilling operations after Petrosucre failed to meet commitments regarding the payment of past due invoices. Petrosucre subsequently resumed ENSCO 69 drilling operations with its employees and a portion of the Venezuelan crews utilized by Ensco, under observation by Ensco’s supervisory rig personnel. Petrosucre advised Ensco at the time that it was temporarily taking over operations on the rig. Since January 2009, Ensco has engaged in discussions and exchanges of correspondence with Petrosucre regarding each party's contractual rights and obligations, but a resolution has not been reached. In prior disclosure, Ensco noted that should a satisfactory resolution not be reached, Ensco may submit a notice of termination as outlined in the provisions of the contract giving Ensco a right to terminate in the event of non-payment. Given Petrosucre’s non-payment of past due invoices for an extended period of time and the absence of a resolution, Ensco said it submitted a notice of termination. During the notice period that extends through approximately May 30, 2009, Petrosucre may resolve the matter by paying past due invoices or negotiating a satisfactory arrangement with Ensco. If not, as previously disclosed, Ensco said it may then terminate the contract. Ensco’s supervisory personnel continue to observe operations on ENSCO 69. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported by the Troubled Company Reporter on Nov. 26, 2008, Fitch Ratings affirmed CITGO Petroleum Corp's Issuer Default Rating and outstanding debt ratings: -- IDR at 'BB-'; -- US$1.15 billion senior secured revolving credit facility maturing in 2010 at 'BBB-'; -- US$700 million secured term-loan maturing in 2012 at 'BBB-'; -- US$515 million secured term-loan maturing in 2012 at 'BBB-'; -- Fixed-rate industrial revenue bonds at 'BBB-'. ========================== V I R G I N I S L A N D S ========================== KINGATE FUNDS: BVI Supreme Court Appoints Provisional Liquidators ---------------------------------------------------------------- The Eastern Caribbean Supreme Court in the British Virgin Islands has appointed William Tacon and Richard Fogerty of Zolfo Cooper as Joint Provisional Liquidators of Kingate Global Fund Limited and Kingate Euro Fund Limited. The Funds, both of which were fully invested in Bernard L. Madoff Investment Securities LLC, are registered in the British Virgin Islands with investors in many parts of the world. “Our function as Joint Provisional Liquidators is to identify, manage, secure and preserve the underlying assets of the Funds. The terms of the BVI Court order and the provisions of the BVI Insolvency Act of 2003 outline our responsibilities throughout this process,” said Mr. Tacon. “We will be reporting to the BVI Court shortly to provide an update on the actions taken since our appointment. At this stage we are not asking investors to submit details of their interests or claims in the Funds, that process will occur later, assuming full liquidation ensues.” The court-appointed Trustee for the liquidation of Bernard L. Madoff Investments Securities LLC, Mr. Irving Picard, recently initiated a legal action against the Funds in the United States Bankruptcy Court for the Southern District of New York. “The lawsuits against the Funds which have been filed by Mr. Picard will also be an immediate priority for the Joint Provisional Liquidators,” added Mr. Tacon. About Zolfo Cooper Zolfo Cooper is a leading provider of insolvency and restructuring services in the Caribbean region from its offices in the British Virgin Islands and Cayman Islands. Zolfo Cooper also has offices in North America and Europe and a network of associated firms throughout the Far East and Australia. =============== X X X X X X X X =============== * Fitch Says Real Global Credit Growth Continues to Fall -------------------------------------------------------- In its latest semi-annual 'Bank Systemic Risk' report, Fitch Ratings' Sovereign group says that median real global credit growth continues to fall - having peaked at a record 15% in 2007, it halved in 2008 to just over 7% and is forecast at barely 3% for 2009. Furthermore, only a dozen countries - most obviously China - are likely to see double digit real credit growth this year. Having been published since 2005, the report updates the leading Macro-Prudential and Banking System indicators of bank systemic stress and, in this edition, incorporates results from a preliminary study of the role of house prices in the current global financial crisis. In a previous report Fitch concluded that the evidence from earlier banking crises was both too sparse and too variable to suggest an obvious threshold above which real house prices could reliably be said to threaten country banking system problems. From the evidence of the current crisis, however, it seems that this threshold is relatively low. The median deviation of real house prices from trend ahead of all past crises is around 15% - similar to the 16% seen in Ireland - and this is the figure Fitch will now use as an additional trigger to determine when a country moves into the highest Macro Prudential risk category - MPI 3 (when accompanied by a rise in the credit/GDP ratio to more than 5% above trend). Such an updated model would have anticipated the US and UK banking crises, as well as Belgium and also Ireland (which was already MPI 3 due to an appreciated real exchange rate). However, some countries which have seen house prices rise to more than 15% above trend - e.g. Denmark, France, New Zealand and Sweden - have so far escaped widespread banking system problems. And not all countries that have suffered banking crises had the highest Macro Prudential risk indicators, notably Germany, Switzerland and the Netherlands, suggesting that banking problems in these countries were more due to foreign lending than domestic lending. By end-2008, well over one-third (32) of the 86 countries in Fitch's report were MPI 3. Nine of these were due to the new house price methodology and six were added since the last report based on the original methodology. A further quarter showed more moderate signs of excessive lending and asset price appreciation and/or real exchange rate appreciation (MPI 2) (unchanged since the last report). In regional terms, Emerging Europe continues to have the greatest proportion (68%) of systems in the highest risk category (MPI 3) but developed countries have the next highest proportion (41%). Fitch's BSR methodology continues to focus mostly on trends in credit/GDP. However, the experience of Emerging Europe has shown that rapid credit growth can give earlier warning of potential problems, before credit/GDP rises above critical thresholds. Double digit real credit growth warrants close scrutiny anywhere - China's will be amongst the highest this year at over 20%, based on developments in Q1 alone, and if sustained will eventually place China in a higher risk category (currently MPI 1). The global banking crisis has radically changed the landscape of global banking system strength, as summarized in Fitch's second systemic risk indicator - the Banking System Indicator. Whereas the typical developed country system used to be 'BSI B' (strong) - on a scale from 'A' (very strong) to 'E' (very weak) - a majority are now in the 'C' category (adequate), though twelve developed country systems remain 'strong' (BSI B). The typical emerging market system remains 'C' or 'D'. *********** 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 2009. 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 * * *