TCRLA_Public/090618.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

              Thursday, June 18, 2009, Vol. 10, No. 119

                            Headlines

A N T I G U A  &  B A R B U D A

STANFORD INT'L: SFG Reciever Returns Owner's Jets for US$4.8Mln
STANFORD INT'L: Owner's Lawyers Allege Baker Botts Conflict Case


A R G E N T I N A

CENTRALES TERMICAS: Asks for Preventive Contest
FIDEICOMISO FINANCIERO: Moody's Assigns 'Ba3' Global Scale Rating
FEMME SRL: Proofs of Claim Verification Due on August 4
FINART ARTE: Proofs of Claim Verification Due on August 18
LO COCO: Asks for Own Bankruptcy

SERUCIAL SA: Requests for Preventive Contest
TRADER GROUP: Proofs of Claim Verification Due on August 3


B E R M U D A

JDA ARTHUR: Creditors' Proofs of Debt Due on July 1
JDA ARTHUR: Members to Receive Wind-Up Report on July 20


B R A Z I L

AES CORP: Brazil Unit to Cut Electricity Rates
BANCO DO BRASIL: BEP Acquisition Plan Gets Cade Approval
BRASKEM SA: Raises BRL250 Million Securitization
GERDAU SA: Deutsche Bank Upgrades Firm From Sell to Hold
JBS SA: Brazilian Unit Under Police Probe for Meat Industry Graft

MAGNESITA REFRATARIOS: Moody's Cuts Corp. Family Rating to 'B2'
TAM SA: Records 86.6% International Market Share in May


C A Y M A N  I S L A N D S

ARIENCE CAPITAL: Placed Under Voluntary Wind-Up
ARIENCE CAPITAL: Shareholders Opt to Wind Up Operations
ARIENCE CAPITAL: Shareholders Opt to Wind Up Operations
ARIENCE CAPITAL: Shareholders Opt to Wind Up Operations
CAIRN HIGH: S&P Downgrades Ratings on Tier 1 & 2 Mezzanine Notes

J.P. MORGAN: Shareholders' Final Meeting Set for July 10
MSS CONVERTIBLE: Shareholders' Final Meeting Set for July 10
MSS CONVERTIBLE: Shareholders' Final Meeting Set for July 10
MSS DISTRESSED: Shareholders' Final Meeting Set for July 10
MSS EQUITY: Shareholders' Final Meeting Set for July 10

MSS EQUITY: Shareholders' Final Meeting Set for July 10
MSS EQUITY: Shareholders' Final Meeting Set for July 10
MSS EQUITY: Shareholders' Final Meeting Set for July 10
PALIO PORTFOLIO: Final General Meeting Set for July 8
QUO VADIS: Shareholders' Final Meeting Set for July 10

YMS FUNDING: Shareholders' Final Meeting Set for July 10


C H I L E

EDELNOR: Mulls US$50 Million Short-Term Bank Loan to Pay Debt


C O L O M B I A

* COLOMBIA: Mulls Additional US$1.5 Billion Loan on Int'l Markets


D O M I N I C A N  R E P U B L I C

* DOMINICAN REP: Foreign Debt Down by US$155.6 Million in 6 Months


E C U A D O R

* ECUADOR: Won't Stop Multilateral Debt Payments, Minister Says


J A M A I C A

AIR JAMAICA: To Operate 2-Weekly Flights Bet. New York & Barbados
CALDON FINANCE: Appeal Court Sets Former Operations Manager Free
* JAMAICA: Falling Demand Cuts Trade Deficit


M E X I C O

INFU TRUST: S&P Downgrades Ratings on US$180 Mil. Notes to 'BB'


V E N E Z U E L A

PDVSA: Exterran Holdings Mulls Filing Claims Against Firm
PDVSA: Food Distribution Unit Lays Off 27% of Workforce


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                         - - - - -


===============================
A N T I G U A  &  B A R B U D A
===============================

STANFORD INT'L: SFG Reciever Returns Owner's Jets for US$4.8Mln
-----------------------------------------------------------------
Stanford Financial Group (SFG) court-appointed receiver, Ralph
Janvey, has reached a deal to return Stanford International Bank
Limited (SIBL) owner Robert Allen Stanford's five luxury aircraft
to leasing agent VFS Financing Inc. in exchange for US$4.8
million, Chris Baltimore of Reuters reports, citing a court
filing.  The report relates the cash payment would come from
collateral posted by Mr. Stanford in the form of letters of credit
for US$10.5 million.

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, SIBL, Stanford Group Company (SGC), and
investment adviser Stanford Capital Management.  According to a
TCR-LA report on April 8, 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 Mr. Janvey.

According to Reuters, Mr. Janvey said Mr. Stanford's jets -- a
Global Express, two Hawker 800XPs, and two Gulfstream Ivs -- were
appraised in March to have a fair market value of US$62.2 million
and a liquidation value of US$67.695 million.  The report relates
Mr. Janvey said the value is well below the US$74.6 million that
Mr. Stanford still owes on the aircraft, with debt payments of
about US$745,000 a month.  Mr. Janvey, Reuters notes, said the
aircrafts are now hangared at Sugar Land Regional Airport south of
Houston and racking up fees for maintenance, hangar leasing, and
other expenses at the rate of over US$235,000 a month.

The settlement "is fair, reasonable and in the best interest" of
Stanford's estate, the report quoted Mr. Janvey as saying.  The
alternative -- for VFS to declare foreclose on the aircraft --
would likely result in a "fire sale" price, he added.

                   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.


STANFORD INT'L: Owner's Lawyers Allege Baker Botts Conflict Case
----------------------------------------------------------------
The lawyers of Stanford International Bank Limited (SIBL) owner,
Robert Allen Stanford, said that Houston-based law firm Baker
Botts LLP should be disqualified from representing Stanford
Financial Group (SFG) court-appointed receiver, Ralph Janvey,
Andrew M. Harris of Bloomberg News reports.  The report relates
Mr. Stanford's lawyers told U.S. District Judge David Godbey that,
“Baker Botts represented Mr. Stanford in the formation of [SIBL].”

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, SIBL, Stanford Group Company (SGC), and
investment adviser Stanford Capital Management.  According to a
TCR-LA report on April 8, citing Bloomberg News, Judge Godbey
seized all of Mr. Stanford's corporate and personal assets and
placed them under the control of Mr. Janvey.

A Baker Botts spokesman Michael Cinelli, as cited by Bloomberg
News, denied that the firm had represented Mr. Stanford or aided
in the formation of the Antigua-based bank.  “We have no record of
ever having represented Allen Stanford, Guardian International
Bank or Stanford International Bank,” Mr. Cinelli told Bloomberg
News in a phone interview.  “We did not represent anyone in the
formation of Stanford International Bank,” he added.

According to Bloomberg News, Mr. Cinelli said the firm represented
a related party from October 1985 to February 1986 regarding the
subject of doing business in the Caribbean generally.  “That work
involved two meetings and a total of 5-1/2 hours of time” for
which the firm billed US$850, the report quoted Mr. Cinelli as
saying.  The report relates Mr. Cinelli added that both the
associate and partner who did that work left the firm “many years
ago.”

Bloomberg News says Mr. Cinelli added that the prior work bears no
relationship to the work the firm is doing for Mr. Janvey and they
have no conflict of interest.



=================
A R G E N T I N A
=================

CENTRALES TERMICAS: Asks for Preventive Contest
-----------------------------------------------
Centrales Termicas Patagonicas S.A. asked for preventive contest.

The company stopped making its payments on Sept. 4, 2007.


FIDEICOMISO FINANCIERO: Moody's Assigns 'Ba3' Global Scale Rating
-----------------------------------------------------------------
Moody's Latin America has assigned a rating of Aaa.ar (Argentine
National Scale) and Ba3 (Global Scale, Local Currency) to the Debt
Securities (VDF) of Fideicomiso Financiero Tarjeta Privada XVI,
issued by Banco de Valores S.A. (acting solely in its capacity as
Trustee).  Moody's also assigned a rating of Ca.ar (Argentine
National Scale) and Ca (Global Scale, Local Currency) to the
subordinated Certificates.

The securities are backed by a pool of credit card receivables
originated by Banco Privado de Inversiones S.A. located in
Argentina.  Interest and principal on the VDF are payable from the
cash flow of the credit card receivables.

The ratings assigned are based on these factors:

  -- The credit quality of the securitized pool;

  -- The credit enhancement provided through the 20% initial
     subordination level;

  -- The ability of Banco Macro Bansud to act as backup servicer
     in the transaction;

  -- The availability of several reserve funds; and,

  -- The legal structure of the transaction.

                            Structure

Banco de Valores S.A. (Issuer and Trustee) issued one class of
peso-denominated, floating-rate bonds (VDF) and a residual
certificate, all of them backed by a pool of credit card
receivables originated by BPI.  The VDF original balance is equal
to 80% of the original issuance amount.  The transaction has an
expected maturity of 7 months and a legal maturity date of 24
months.

At closing, the VDF were backed by credit card outstanding
balances generated by eligible accounts.  The ownership of those
accounts remains with the originator but the receivables are
assigned to the trust.  The transaction has five reserve funds: an
expense fund, a liquidity reserve fund, a backup servicer
replacement fund, and sinking funds for interest and principal.

The VDF will bear a floating interest rate (Badlar + 400 bps) with
a minimum rate of 20% and a maximum rate of 28%.  If an early
amortization event occurs, the revolving period will terminate
automatically.

After the grace period of two months and beginning in the third
month after closing, scheduled interest and principal will be paid
in that order, on each payment date.  Principal is scheduled to be
paid in five monthly installments.  If the scheduled principal is
not paid on time, it will not constitute an event of default under
the terms of the transaction documents, given that the promise to
investors is to receive ultimate principal before the legal final
maturity date.

During the revolving period, the originator will sell new
receivables to the trust.  These receivables will be purchased
from the cash flow coming from collections.  The documents of the
transaction allow for a direct offset of these two cashflows. By
having this procedure no cash has to be transferred back and forth
to the trust account and as a result, trust expenses are
minimized.

                       Seller And Servicer

BPI is the seller of the receivables and the primary servicer of
the transaction.  The bank was founded in 1993 to provide
financial services to the middle-high and high income segment of
the market.  In 1996, BPI began issuing MasterCard and Visa credit
cards to its customers.

Banco Macro S.A. is the designated backup servicer. If a servicer
replacement trigger is hit, the trustee is obligated to
immediately notify BM and Visa and MasterCard.  The trustee, who
receives pool and borrower data from the servicer on a monthly
basis, will transfer this information to the backup servicer.  In
addition, Visa and MasterCard will also have duplicate data which
they can transfer to BM, if necessary.  Given that BM is a member
of the Visa and MasterCard system, the transfer of data should be
straightforward.

BM will be entitled to receive this information as the new owner
of the accounts according to the conditional assignment contract
which will become effective upon the occurrence of a servicer
replacement event.  Thus, even if BPI's membership in the Visa and
MasterCard networks is terminated, credit card customers will not
have their credit lines suspended.

The servicer will transfer collections to the trust account on a
weekly basis.  As a result, there is one week of commingling risk
at the originator/servicer level which may affect the deal should
the originator/servicer enter into a reorganization procedure.
This risk is mitigated by the ability of BM, once it is appointed
as backup servicer, to service the receivables, and by the
servicer replacement reserve account that will be funded at
closing with 0.5 times the next interest payment.  This reserve
account can be used to pay interest during the transition process.
In addition, there is another reserve account equivalent to 1.5
times the next interest payment.  These aggregated funds provide a
total coverage of two monthly interest payments.

Rating Action

Originator: Banco Privado de Inversiones S.A.

  -- $19.2 Million Pesos in Floating Rate Securities of
     "Fideicomiso Financiero Tarjeta Privada XVI", VDF rated
     Aaa.ar (National Scale Rating) and Ba3 (Global Scale, Local
     Currency).

  -- $4.8 Million Pesos in Certificates of "Fideicomiso Financiero
     Tarjeta Privada XVI", CP rated Ca.ar (National Scale Rating)
     and Ca (Global Scale, Local Currency).


FEMME SRL: Proofs of Claim Verification Due on August 4
-------------------------------------------------------
Carlos Alberto Perez, the court-appointed trustee for Femme
S.R.L.'s bankruptcy proceedings, will be verifying creditors'
proofs of claim until August 4, 2009.

Mr. Perez 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. 45, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by the company and its creditors.

The Trustee can be reached at:

          Carlos Alberto Perez
          Montevideo 76
          Buenos Aires, Argentina


FINART ARTE: Proofs of Claim Verification Due on August 18
----------------------------------------------------------
Antonio Melegari, the court-appointed trustee for Finart Arte y
Joyeria S.R.L.'s bankruptcy proceedings, will be verifying
creditors' proofs of claim until August 18, 2009.

Mr. Melegari will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 7, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

          Antonio Melegari
          Bartolome Mitre 1131
          Buenos Aires, Argentina


LO COCO: Asks for Own Bankruptcy
--------------------------------
Lo Coco S.A. asked for its own bankruptcy.

The company stopped making its payments on December 22, 2008.


SERUCIAL SA: Requests for Preventive Contest
--------------------------------------------
Serucial S.A. requests for preventive contest.

The company stopped making its payments on February 26.


TRADER GROUP: Proofs of Claim Verification Due on August 3
----------------------------------------------------------
Hugo Mancusi, the court-appointed trustee for Trader Group S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until August 3, 2009.

Mr. Mancusi will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 51, 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:

          Hugo Mancusi
          Av. Corrientes 3169
          Buenos Aires, Argentina



=============
B E R M U D A
=============

JDA ARTHUR: Creditors' Proofs of Debt Due on July 1
---------------------------------------------------
The creditors of JDA Arthur Software, Ltd. are required to file
their proofs of debt by July 1, 2009, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on June 11, 2009.

The company's liquidator is:

          Jennifer Y. Fraser
          Canon's Court, 22 Victoria Street
          Hamilton, Bermuda


JDA ARTHUR: Members to Receive Wind-Up Report on July 20
--------------------------------------------------------
The members of JDA Arthur Software, Ltd. will hold their meeting
on July 20, 2009, at 9:00 a.m., to hear the liquidator's report on
the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on June 11, 2009.

The company's liquidator is:

          Jennifer Y. Fraser
          Canon's Court, 22 Victoria Street
          Hamilton, Bermuda



===========
B R A Z I L
===========

AES CORP: Brazil Unit to Cut Electricity Rates
----------------------------------------------
Brazil-based AES Eletropaulo, a subsidiary of The AES Corporation,
said it plans a reduction of energy prices, Rogerio Jelmayer of
Dow Jones Newswires reports, citing a company statement.  The
report relates the company move will take effect on July 4.

According to the report, the move is part of new methodology to
calculate energy prices adopted by the Brazilian energy regulator,
Aneel, which subjects energy companies operating in the regulated
markets to price increases or decreases so long as they are
providing a public service.

Annel, the report relates, determined a cut in prices by 7.59% in
the latest prices revision last year.  However, DJ Newswires says
under the new methodology the regulator revised it to 8.07%.

                     About AES Eletropaulo

AES Eletropaulo is a major Brazilian power distributor in the
state of Sao Paulo, created in the breakup of the old state-owned
power distribution company Eletropaulo that monopolized
electricity distribution in Săo Paulo from 1981 to 1999.
The similarity of the names makes most old customers call it
simply Eletropaulo.

Eletropaulo has around 5 million customers, and it's stock is
traded on Bovespa, where it is part of the Ibovespa index.  The
company is majority owned by AES Corporation.

                      About AES Corporation

The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of
the world's largest global power companies, with 2007 revenues of
US$13.6 billion.  With operations in 29 countries on five
continents, AES's generation and distribution facilities have the
capacity to serve 100 million people worldwide.

                          *     *     *

As of June 18, 2009, the company continues to carry these low
ratings from Moody's:

   -- Senior Secured Debt at Ba3
   -- LT Corp Family rating at Ba1
   -- Bank Loan Debt at Ba1
   -- Senior Unsecured Debt Rating at Ba1

from Fitch:

  -- LT Issuer Default Ratings at B+
  -- Senior Secured Debt Rating at BB+
  -- Bank Loan Debt Rating at BB+
  -- Senior Unsecured Debt rating at BB

AES Corp also continues to carry Standard and Poor's LT Issuer
Credit ratings at BB-.


BANCO DO BRASIL: BEP Acquisition Plan Gets Cade Approval
--------------------------------------------------------
The Brazilian Justice Ministry Anti-Trust Division (Cade) has
given the green light to Banco do Brasil SA for its planned
acquisition of the state bank of Piaui (BEP), Rogerio Jelmayer of
Dow Jones Newswires reports.  The report relates Cade approved the
acquisition with no restrictions.

DJ Newswires recalls Banco do Brasil announced the acquisition of
BEP at the end of last year for BRL81.7 million (US$41 million).

According to the report, BEP operates in Brazil's Northeastern
state of Piaui and has BRL330 million in assets and 89,000
clients.

                     About Banco do Brasil

Banco do Brasil SA is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and more than 7,000
points of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                       *     *     *

As of June 18, 2009, the company continues to carry Moody's Ba2
Foreign LT Bank Deposit Rating.


BRASKEM SA: Raises BRL250 Million Securitization
------------------------------------------------
Brazil-owned Braskem S.A. has raised BRL250 million securitization
in Brazil, LatinFrance reports.

According to the report, an unnamed investor on the transaction
said the BRL227 million senior tranche priced at CDI plus 140bp is
well below the stated maximum of 300bp.  The report relates a
structured finance expert eyeing local flow said pricing is
roughly in line with what some higher-rated 2-year debentures have
been coming at.

LatinFrance notes a buysider said an BRL18 million mezzanine piece
came at CDI plus 750bp, top of the targeted range.

An unnamed executive involved in the transaction, the report
relates, said books were heavily oversubscribed as asset managers,
hedge funds, and – in the case of the senior AAA tranche – pension
funds and insurance companies sought participation.

The securities are backed by supplier receivables, LatinFrance
says.

                       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 of June 17, 2009, the company continues to carry Fitch Ratings'
BB+ currency long-term Issuer Default Ratings, BB+ unsecured
senior notes due 2014, 2017, 2018.


GERDAU SA: Deutsche Bank Upgrades Firm From Sell to Hold
--------------------------------------------------------
Brazil-based Gerdau S.A. has been upgraded by Deutsche Bank from
“sell” to “hold”, Streetinsider.com reports.

The report relates an unnamed Deutsche analyst said: "Our previous
downgrade was essentially founded on the company’s leverage
position, concerns about 1H09 results and the potential for
further deterioration in the steel markets.  GGB’s debt position
has improved modestly but its financial risk has declined via the
capital markets.  Also, product prices in Brazil have performed
better than we forecasted (translates to higher estimates), the
market has reacted well to disappointing results to date and
demand data-points in key markets (Brazil and North America) have
improved recently. In total, we now believe that Gerdau’s shares
are fairly valued."

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 of June 17, 2009, the company continues to carry Moody's Ba1 LT
Corp Family rating and Ba1 Senior Unsecured Debt Ratings.


JBS SA: Brazilian Unit Under Police Probe for Meat Industry Graft
-----------------------------------------------------------------
JBS SA's Brazil unit in the Rondonia state is under federal police
and prosecutors investigation as part of a probe into alleged
graft in the country's meatpacking industry, Carlos Caminada of
Bloomberg News reports.

Camila Moreira of Reuters relates that public prosecutor Reginaldo
Trindade, who is leading the probe, said the company's Rondonia
operations was under investigation for arranging for inspectors to
turn a blind eye to their allegedly adding water to meats to boost
weights.

JBS spokeswoman Vanessa Esteves told Reuters by e-mail that the
company's legal department was looking into the investigation and
would comment on the case after it had a better understanding of
prosecutors' concerns.

According to Reuters, the widespread corruption case has targeted
several companies in Brazil's beef industry.  Other meatpackers
and leather companies including Bihl, Margen and Curtume Nossa
Senhora Aparecida are also part of the investigation into the
bribing of public officials, racketeering, corruption, fraud and
collusion, an unnamed representative at the federal prosecutor's
office told Reuters in an interview.

The report relates the prosecutor's office said that officials at
the Banco da Amazonia bank, as well as local and federal
representatives of several governmental offices and ministries are
involved.

                          About JBS SA

JBS SA is one of the world's largest beef producers with
operations in Brazil, the United States, Argentina, Australia and
Italy.  The company is the largest producer and exporter of fresh
meat and meat by-products in Brazil, Argentina and Australian and
the third largest in the USA.

                          *      *     *

As of June 17, 2009, the company continues to carry Moody's B1 LT
Corp rating and B1 Senior Unsecured Debt rating.  The company also
continues to carry Standard and Poors LT issuer Credit ratings B+.


MAGNESITA REFRATARIOS: Moody's Cuts Corp. Family Rating to 'B2'
---------------------------------------------------------------
Moody's Investors Service has downgraded Magnesita Refratarios
S.A.'s corporate family ratings to B2 from Ba3 on the global scale
and to Ba2.br from A3.br on the Brazilian national scale.  The
ratings outlook is negative.  This action concludes the review
process initiated on April 3, 2009.

The downgrade reflects the company's excessive leverage as
measured by Total Adjusted Net Debt to EBITDA of 5.9x as of
March 31, 2009 (pro-forma for 12 months of LWB Refractories GmbH
acquired in November 2008) and Moody's expectation that the weak
market conditions will persist over the near term resulting in
further increase in leverage.  Besides the sharply weakened
operational performance during recent quarters, the higher
leverage also reflects the impact of the weaker Brazilian currency
on substantial amount of unhedged foreign currency debt.  Interest
coverage should remain thin as measured by EBIT to Interest
Expense of below 1x.

As a result of increased leverage, Magnesita had breached the
financial covenants as of March 31, 2009 under the US$475 million
6-year loan granted by J.P.Morgan to fund the acquisition of LWB.
A 90-day waiver was granted by J.P.Morgan, while new financial
covenants are being negotiated.  The early repayment of
J.P.Morgan's loan would trigger cross-default of BRL 933 million
in other debts, implying the immediate repayment of about 85% of
the company's total bank debt.  The current rating assumes that
Magnesita will successfully conclude negotiations regarding the
resetting of the financial covenants.  Moody's believe that
exports should continue to be impacted by the lower demand for
Magnesita's products globally, thus likely reducing its access to
new export-related loans in the short-term to roll over maturing
export-related working capital, which could result in a lower
financial flexibility and a cash drain for the company.

The weakened operating performance of Magnesita in recent quarters
depicted lower-than-anticipated resilience of its business model
to the capacity utilization of the steel industry, which
represents some 70% of consolidated revenues.  Accordingly, and
based on Moody's current negative outlook for the global steel
industry, Moody's anticipate a slow recovery of Magnesita's
operating performance and limited ability to adjust working
capital to the lower activity level, challenging its ability to
reduce leverage in the near term.  Moody's acknowledge, however,
that Magnesita has successfully implemented significant cost-
cutting measures and scaled back capital spending.

Besides the elevated leverage, the B2 corporate family rating of
Magnesita takes into consideration its relative small size when
compared to global mining companies and its high exposure to the
cyclical steel industry.  Also, Magnesita's high exposure to
foreign currency debt is a constraining factor as long as LWB's
weak operating performance persists.  As a positive credit aspect,
the rating incorporates the company's strong market position as a
leading supplier of refractories supported by long-standing client
relationships and significant import barriers in Brazil.  The
Brazilian operations have a high level of vertical integration,
including sizeable prime-quality mineral reserves, substantial
electricity self-sufficiency and efficient logistics.  The
acquisition of LWB, while helping to improve client and geographic
diversity, incorporates significant integration risks and provides
limited potential for operational synergies, although Moody's
would expect some efficiency improvements as Magnesita replicates
its cost-focused management model in its offshore subsidiaries.

While the B2 global scale rating reflects the default and loss
expectation of Magnesita on a global basis, the Ba2.br national
scale rating reflects the standing of their credit quality
relative to other domestic issuers.  National Scale Ratings are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks.  Issuers rated Ba2.br
demonstrate below-average creditworthiness relative to other
domestic issuers.  NSRs in Brazil are designated by the ".br"
suffix.  NSRs differ from global scale ratings in that they are
not globally comparable to the full universe of Moody's rated
entities, but only with other rated entities within the same
country.

The negative outlook reflects Moody's expectation of a slow
recovery of the steel industry globally, affecting Magnesita's
ability to significantly reduce its leverage over the near term
and the likelihood of a reduction of its financial flexibility due
to reduced exports to back trade-related working capital.  Moody's
believe, however, that Magnesita will be able to renegotiate its
financial covenants albeit at higher cost.

The ratings of Magnesita could be downgraded if liquidity
deteriorates as cash balance is utilized to fund negative free
cash flows or in case of an unfavorable outcome of the ongoing
renegotiation of financial covenants with banks resulting in the
acceleration of long term debt maturities.

Given Moody's expectation of a slow recovery of operating
performance and cash flow, the maintenance of high leverage, and
the challenges related to the integration of LWB, a positive
pressure on Magnesita's ratings or outlook is not foreseen in the
near term.

The last rating action was on April 3, 2009, when Moody's
downgraded Magnesita's corporate family ratings to Ba3 from Ba1 on
the global scale and to A3.br from Aa2.br on the Brazilian
national scale.  The ratings remained under review for possible
further downgrade.

Magnesita Refratarios S.A. is the largest manufacturer of
refractories in Latin America and the third largest worldwide,
with operations in Brazil, U.S., Europe and Asia.  Pro-forma for
twelve months of LWB's operations, Magnesita reported consolidated
revenues of BRL 2,244 million (US$1,131 million converted by the
average exchange rate) in last twelve months ended March 31, 2009.


TAM SA: Records 86.6% International Market Share in May
-------------------------------------------------------
TAM S.A. reports operating data for May 2009, as disclosed by the
Brazilian National Civil Aviation Agency (ANAC).

According to ANCC, the airline registered 13.9% reduction in
domestic demand, measured in RPKs compared to the same period last
year, and 11.0% increase in domestic supply, measured in ASK.  In
May, market demand decreased 5.5% and market supply increased
12.2%.   TAM SA registered domestic market share (RPK) of 44.9%, a
4.4 p.p. decrease compared to the same period in 2008.  The
airline's domestic load factor was 56.7%, 2.5 p.p. lower than the
market average of 59.2%.

In the international market, TAM SA registered 10.8% growth in RPK
and 25.9% in ASK, compared to May 2008.  The airline attained
market share of 86.8%, representing 12.6 p.p. growth year on year.
TAM SA also attained a 65.5% load factor, 3.2 p.p. higher than the
market average of 62.4%.

                         About TAM S.A.

Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/--
has business agreements with the regional airlines Pantanal,
Passaredo, Total and Trip.  As of Jan. 14, the daily flight on the
Corumba -- Campo Grande route in Mato Grosso do Sul began to be
operated by a partnership with Trip.  With the expansion of the
agreement with NHT, TAM will now be serving 82 destinations in
Brazil, 45 of which with its own flights.  In addition, the
company is strengthening its presence in Rio Grande do Sul and
Santa Catarina.

                          *     *     *

As of June 17, 2009, the company continues to carry Fitch
Ratings' 'BB' Foreign and Local Currency Issuer Default Ratings.
The company also continues to carry Moody's B1 LT Corp Family
Rating and Senior Unsecured Debt Ratings.



==========================
C A Y M A N  I S L A N D S
==========================

ARIENCE CAPITAL: Placed Under Voluntary Wind-Up
-----------------------------------------------
On May 4, 2009, the sole shareholder of Arience Capital
Concentrated Offshore Fund, Ltd. passed a resolution that
voluntarily winds up the company's operations.

The company'a liquidator is:

          Walkers Corporate Services Limited
          Telephone: (345) 914-6314
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands
          c/o Anthony Johnson


ARIENCE CAPITAL: Shareholders Opt to Wind Up Operations
-------------------------------------------------------
On May 19, 2009, the shareholders of Arience Capital Offshore
Fund, Ltd. passed a resolution that voluntarily winds up the
company's operations.

The company'a liquidator is:

          Walkers Corporate Services Limited
          Telephone: (345) 914-6314
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands
          c/o Anthony Johnson


ARIENCE CAPITAL: Shareholders Opt to Wind Up Operations
-------------------------------------------------------
On May 4, 2009, the sole shareholder of Arience Capital
Concentrated Master Fund, Ltd. passed a resolution that
voluntarily winds up the company's operations.

The company'a liquidator is:

          Walkers Corporate Services Limited
          Telephone: (345) 914-6314
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands
          c/o Anthony Johnson


ARIENCE CAPITAL: Shareholders Opt to Wind Up Operations
-------------------------------------------------------
On May 19, 2009, the sole shareholder of Arience Capital Master
Fund, Ltd passed a resolution that voluntarily winds up the
company's operations.

The company'a liquidator is:

          Walkers Corporate Services Limited
          c/o Anthony Johnson
          Telephone: (345) 914-6314
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


CAIRN HIGH: S&P Downgrades Ratings on Tier 1 & 2 Mezzanine Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the Tier 1 and 2 mezzanine notes issued by Cairn High Grade
Funding I Ltd.

These rating actions reflect S&P's assessment of the credit
deterioration of the assets in the transaction's underlying
portfolio of U.S. prime and subprime residential mortgage-backed
securities since S&P's last review in May 2009.

During S&P's May review and in line with the application of S&P's
revised assumptions for the treatment of structured finance assets
that have ratings on CreditWatch negative and are currently held
within collateralized debt obligation transactions, S&P lowered
the ratings of assets on CreditWatch negative in most cases by
three notches, and in certain cases by six to nine notches.  Some
of these assets have seen more severe downgrades than S&P
originally anticipated.  According to S&P's analysis, about 23% of
the total portfolio remains on CreditWatch negative.

In S&P's opinion, credit deterioration has led to an increase in
scenario default rates.  At the same time, S&P's cash flow
analysis indicates that break-even default rates for the Tier 1
and 2 mezzanine notes have fallen.  As a result, the available
credit enhancement for the Tier 1 and 2 mezzanine notes is, in
S&P's view, no longer commensurate with the existing ratings.  S&P
has therefore lowered the ratings.

Cairn High Grade Funding I is a cash flow CDO transaction that
closed originally in January 2006 as a SIV-lite structure (SIV--
structured investment vehicle).  It was subsequently restructured
into a static cash flow CDO of asset-backed securities transaction
in August 2007.

Cairn High Grade Funding I has issued asset-backed commercial
paper, Tier 1 and 2 mezzanine notes, and capital notes.

The restructuring of the vehicle in August 2007 included an
increase in the committed liquidity to 100% from 25% of the CP
outstanding, which was used to redeem the full notional of the
maturing CP.  The Tier 1 and 2 mezzanine notes bear no interest,
but are entitled to distributions of excess cash flows after the
principal is reduced to $1.  S&P's ratings on the Tier 1 and 2
mezzanine notes do not address the likelihood of receipt of excess
distributions.

                           Ratings List

                 Cairn High Grade Funding I Ltd.
   $126 Million Mezzanine Notes And $36 Million Capital Notes

                           Ratings Lowered

                                   Rating
                                   ------
           Class           To                     From
           -----           --                     ----
           Tier 1 Mez      BBB                    A
           Tier 2 Mez      B-                     BB


J.P. MORGAN: Shareholders' Final Meeting Set for July 10
--------------------------------------------------------
The shareholders of J.P. Morgan Cayman Limited will hold their
final meeting on July 10, 2009, at 8:30 a.m., to receive 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


MSS CONVERTIBLE: Shareholders' Final Meeting Set for July 10
------------------------------------------------------------
The shareholders of MSS Convertible Arbitrage 2 will hold their
final meeting on July 10, 2009, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Walkers Corporate Services Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


MSS CONVERTIBLE: Shareholders' Final Meeting Set for July 10
------------------------------------------------------------
The shareholders of MSS Convertible Arbitrage 4 will hold their
final meeting on July 10, 2009, at 9:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Walkers Corporate Services Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


MSS DISTRESSED: Shareholders' Final Meeting Set for July 10
-----------------------------------------------------------
The shareholders of MSS Distressed and Opportunities 3 will hold
their final meeting on July 10, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Walkers Corporate Services Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


MSS EQUITY: Shareholders' Final Meeting Set for July 10
-------------------------------------------------------
The shareholders of MSS Equity Arbitrage 2 will hold their final
meeting on July 10, 2009, at 9:45 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Walkers Corporate Services Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


MSS EQUITY: Shareholders' Final Meeting Set for July 10
-------------------------------------------------------
The shareholders of MSS Equity Hedge 6 will hold their final
meeting on July 10, 2009, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Walkers Corporate Services Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


MSS EQUITY: Shareholders' Final Meeting Set for July 10
-------------------------------------------------------
The shareholders of MSS Equity Hedge 12 will hold their final
meeting on July 10, 2009, at 10:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Walkers Corporate Services Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


MSS EQUITY: Shareholders' Final Meeting Set for July 10
-------------------------------------------------------
The shareholders of MSS Equity Hedge 15 will hold their final
meeting on July 10, 2009, at 10:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Walkers Corporate Services Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


PALIO PORTFOLIO: Final General Meeting Set for July 8
-----------------------------------------------------
The members of Palio Portfolio Limited will hold their final
general meeting on July 8, 2009, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          John Sutlic
          c/o Kim Charaman
          Close Brothers (Cayman) Limited
          Harbour Place, Fourth Floor
          P.O. Box 1034, Grand Cayman KY1-1102
          Telephone: (345) 949 8455
          Facsimile: (345) 949 8499
          e-mail: kcharaman@cbcl.com.ky


QUO VADIS: Shareholders' Final Meeting Set for July 10
------------------------------------------------------
The shareholders of Quo Vadis Ltd. will hold their final meeting
on July 10, 2009, at 10:45 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Walkers Corporate Services Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands


YMS FUNDING: Shareholders' Final Meeting Set for July 10
--------------------------------------------------------
The shareholders of YMS Funding will hold their final meeting on
July 10, 2009, at 8:45 a.m., to receive 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



=========
C H I L E
=========

EDELNOR: Mulls US$50 Million Short-Term Bank Loan to Pay Debt
-------------------------------------------------------------
Empresa Electrica del Norte Grande SA (Edelnor) plans to take out
a US$50 million short-term bank loan, Julian Dowling of Dow Jones
Newswires reports.  The report relates the company will use the
loan to help pay a US$187 million debt with ABN AMRO bank.

According to the report, Edelnor plans to pay the whole debt on
July 7 with its own funds and the bank loan.

DJ Newwires recalls the company contracted the debt in 2002.

Heaquartered in Chile, Empresa Electrica Del Norte Grande S.A.
(aka Edelnor) -- http://www.edelnor.cl/-- is principally
engaged in the generation, transportation, distribution and
supply of electricity.  Edelnor is also engaged in the purchase,
transportation and sale of all types of fuel: liquid, solid and
gaseous.  The company offers advising services in engineering
and management, as well as maintenance and repair of electronic
systems.

                         *     *     *

As of June 18, 2009, the company continues to carry Moody's Ba3
rating.  The company also continues to carry Standard and Poor's
LT Issuer Credit ratings at BB-.



===============
C O L O M B I A
===============

* COLOMBIA: Mulls Additional US$1.5 Billion Loan on Int'l Markets
-----------------------------------------------------------------
The Colombian government plans to borrow an additional US$1.5
billion on the international capital markets as part of US$3.7
billion it will need to raise to meet re-adjusted 2010 funding
needs, LatinFrance reports, citing Finance Minister Oscar Ivan
Zuluaga.  “We don’t need to decrease spending.  This deficit is
caused by external shocks,” the report quoted Mr. Zuluaga as
saying.  Therefore the government is able to safely cover it by
borrowing more, he added.

According to the report, the debt would be in addition to
US$1 billion raised in April through the sale of 7.375% of 2019
bonds, also earmarked for pre-funding.  LatinFrance relates
Colombia plans to raise the remaining US$2.2billion from
multilateral sources, which Mr. Zuluaga notes is consistent with
what it has raised from multilaterals in each of the past few
years.

                         *     *     *

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).



==================================
D O M I N I C A N  R E P U B L I C
==================================

* DOMINICAN REP: Foreign Debt Down by US$155.6 Million in 6 Months
------------------------------------------------------------------
Dominican Republic's foreign debt is US$7.08 billion as of
June 16, 2009, The Dominican Today report, citing Hacienda
Ministry.  The report relates the Ministry said the debt fell
US$155.6 million from December 2008 to June 16.

However the report says Hacienda ministry disclosed a US$39.1
million increase in the local debt, from US$11.2 billion in 2008
to US$11.3 billion as of April.  "We pay more than we received,
and when one pays more than what it’s received, the debt falls,"
the ministry was quoted by the report as saying.

According to the report, the ministry said the US$1.17 billion is
consigned for the debt service in this year’s Government Budget,
which includes capital and interest payments.



=============
E C U A D O R
=============

* ECUADOR: Won't Stop Multilateral Debt Payments, Minister Says
---------------------------------------------------------------
The Ecuadorian government doesn't plan to stop or renegotiate
payments of multilateral and bilateral debt, Mercedes Alvaro of
Dow Jones Newswires reports, citing Finance Minister Maria Elsa
Viteri.  "I have not spoken of suspension of payments or
renegotiation," the report quoted Ms. Viteri as saying.  "We want
an open dialogue with multilateral and bilateral lenders.  If
there were problems in the past, it is necessary to talk about
them," she added.

As reported in the Troubled Company Reporter-Latin America on
June 16, 2009, Bloomberg News said Ecuador will review the
legitimacy of loans from multilateral lenders and other
governments in the coming months after completing a buyback plan
on US$3.2 billion in defaulted bonds.  The report related Ecuador
President Rafael Correa said the government must decide how to
treat the debts, which accounted for two-thirds of the US$10
billion the country owed as of December, when it defaulted.

According to DJ Newswires, a government commission, which has
looked into Ecuador's debt, said multilateral lenders like the
Inter-American Development Bank, the World Bank and the
International Monetary Fund have shifted loans in the past,
breaking their rules to use these loans to pay debt and aid
creditors.  "We don't want the errors of the past to be repeated
in the future," DJ Newswires quoted Ms. Viteri as saying.  "We
have an excellent relationship with multilateral lenders," she
added.

                        *     *     *

As reported by the Troubled Company Reporter - Latin America on
December 17, 2008, Fitch Ratings downgraded Ecuador's long-
term foreign currency Issuer Default Rating (IDR) to 'RD' from
'CCC' following the expiration of the grace period for the coupon
payment on the 2012 global bonds that was due on Nov. 15 and the
government's announcement that it will selectively default on all
global bonds.  The short-term foreign currency rating was
downgraded to 'D' from 'C'.  The country ceiling remains at 'B-'.



=============
J A M A I C A
=============

AIR JAMAICA: To Operate 2-Weekly Flights Bet. New York & Barbados
-----------------------------------------------------------------
Air Jamaica Limited will operate two weekly flights between New
York and Barbados from July 2 to August 30, 2009.

The airline said its twice weekly flights will depart John F.
Kennedy Airport (JFK) each Thursday and Sunday at 12:50 a.m. and
arrive in Barbados (BGI) at 5:00 a.m.  The return flight will
depart Barbados at 6:30 a.m. and arrive at JFK at 11:30 a.m.

                        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 of June 18, 2009, the company continues to carry Moody's LT
Corp Family rating and Senior Unsecured Debt rating at B2.  The
company also continues to carry Standard and Poor's LT Foreign
Issuer Credit Rating at B-.


CALDON FINANCE: Appeal Court Sets Former Operations Manager Free
----------------------------------------------------------------
Appellate Court President Justice Seymour Panton –– along with
justices Hazel Harris and Mahadev Dukharan -- spared Former Caldon
Finance Group Acting Operations Manager, Nicole Ann Fullerton,
from imprisonment after overturning her conviction and sentence
for fraudulent conversion, Paul Henry of the Jamaica Observer
reports.

The report relates Justice Panton, who presided over the case,
said Ms. Fullerton's conviction in the Corporate Area Resident
Magistrate's Court three years ago was "unreasonable" and was not
supported by evidence.  "We find that the verdict is unreasonable,
having regard to the evidence; having so we can't allow it to
stand," the report quoted Ms. Panton as saying.

Ms. Fullerton, the Observer recalls, was convicted of three counts
of fraudulent conversion on October 19, 2006 in the Corporate Area
Resident Magistrate's Court.  The report relates on March 1, 2007,
she was sentenced to 12 months' imprisonment on each count, which
were to run concurrently.

As reported in the Troubled Company Reporter-Latin America on
October 5, 2006, RadioJamaica said Ms. Fullerton allegedly
defrauded Colin Karjohn -- a St. Catherine businessman -- of US$15
million in 1998, investing it on Caldon Finance.  Mr. Karjohn had
given Ms. Fullerton and her father, former Caldon Finance Chief
Henry Fullerton, the amount to invest in government treasury
bills.

The Observer notes Mr. Karjohn alleged that he gave Ms. Fullerton
the money to invest in treasury bills but that she instead
invested it in Caldon Finance.  The report relates the prosecution
had contended that Ms. Fullerton personally benefited from the
money and that she knew about Caldon Finance's pending collapse at
the time she took the money from Mr. Karjohn.

However, the Observer notes Justice Panton said there was no proof
that Ms. Fullerton knew about the company's pending collapse nor
was the money entrusted to Ms Fullerton.  Instead, the money was
entrusted to Caldon Finance, Justice Panton said.

The Observer relates Justice Panton added that Mr. Karjohn could
not have given the money to the appellant for investment in
treasury bills, as Caldon Finance was not licensed to deal in that
instrument, as opposed to Mr. Karjohn's bank, the Bank of Nova
Scotia, from which he drew the money for investment.

Based on the evidence, Mr. Karjohn gave up the money for
investment in instruments other than treasury bills in order to
reap greater returns, Justice Panton added, the report says.

                        *     *     *

Caldon Finance collapsed after Dr. Omar Davies, Jamaica's
Minister of Finance and Planning, suspended the operations of
its main unit -- Caldon Finance Merchant Bank -- and installed a
temporary manager.  Efforts to liquidate Caldon Finance are
still being made.  Reports say that the completion of the
process could take a while due to a number of outstanding court
cases involving the firm's assets.  Raphael Gordon, the
company's liquidator, said that until the issues are dealt with,
the liquidation would remain a work in progress especially as it
relates to secured creditors.


* JAMAICA: Falling Demand Cuts Trade Deficit
--------------------------------------------
The drop in demands for goods and services due to the economic
recession caused a reduction in Jamaica's trade deficit,
RadioJamaica reports.

According to the report, released preliminary data for the January
to February period showed the gap between imports and exports was
reduced by 32% (US$292 million) to US$625 million from US$918
million last year.

The report notes Jamaicans imported US$846 million worth of goods
that was significantly less than the US$1.3 billion spent on
imports last year.  The report relates the country was able to
save on its import bill due to the sharp decline in the cost of
oil.

                         *     *     *

According to Moody's Web site, the country continues to hold
a B1 foreign currency rating and a Ba2 local currency rating.



===========
M E X I C O
===========

INFU TRUST: S&P Downgrades Ratings on US$180 Mil. Notes to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Infu
Trust's US$180 million 7.135% fixed-rate notes series 2005 due
December 2013 and Mexican Unidades De Inversion 190.2 million
(Mexican pesos 690.56 million equivalent; one UDI equals MXN3.63)
5.80% fixed-rate notes series 2005 due December 2013 to 'BB' from
'BBB-', and removed the ratings from CreditWatch with negative
implications, where they were placed Feb. 24, 2009.

The rating actions reflect the significant performance
deterioration of the transaction's underlying collateral in the
past two quarterly collection and payment periods.  This
deterioration is due, in S&P's opinion, to a combination of
several factors, including a severe global economic slowdown, a
decline in the number of passengers frequenting the Mexico City
International Airport, the depreciation of Mexico's currency, and
a sudden and severe outbreak of Influenza-A in Mexico during the
second quarter of 2009.  These events have severely weakened the
transactions' collections, which consist of current and future
cash flows originated by Inmobiliaria Fumisa S.A. de C.V.'s rights
(the underlying collateral) in MCIA's Terminal 1.  These cash
flows are derived from sublease contracts for certain commercial
areas, the operation and exploitation of the parking lot adjacent
to MCIA's international terminal, and the operation of certain air
bridges within MCIA's international terminal.

The transactions' quarterly net collections (net of expenses) have
been decreasing since September 2008, and are currently 28% lower
than those observed at that time.  The number of international
passengers who use MCIA's Terminal 1 decreased to 1,126,508 in
second-quarter 2009 from a historical quarterly average of
1,882,540.  Although the Influenza-A outbreak is no longer a
severe health issue in Mexico, its effects on both domestic and
international travel at MCIA have been severe.

On June 1, 2009, investors in series 2005 approved an amendment to
the transactions' indentures, which included some changes to the
trigger events, among other things.  The transactions' current
debt service coverage ratios are equal to 1x (including an amount
of US$580,070.08 that was deposited into the coverage reserve
account on June 1, 2009), a decrease from the 1.19x reported on
the March 2009 payment.  S&P will continue to surveil the ratings
on these transactions, and S&P will revise them as necessary to
reflect any future changes in the transactions' underlying credit
quality.

Fumisa is a Mexican-based construction company that MCIA
contracted to construct and remodel certain areas of the airport.
The transaction benefits from U.S. dollar- and Mexican peso-
denominated cash flows derived from the assets sold to the trust,
overcollateralization, a reserve account that is equal to
approximately two full amortization and interest payments, and a
trigger reserve account, as well as several trigger and early
amortization events designed to mitigate adverse events affecting
the revenue stream.



=================
V E N E Z U E L A
=================

PDVSA: Exterran Holdings Mulls Filing Claims Against Firm
---------------------------------------------------------
U.S. oilfield services company Exterran Holdings, in a regulatory
filing with the Securities and Exchange Commission, said that it
reserves the right to seek full compensation for any and all
expropriated investments under all applicable legal regimes,
including investment treaties and customary international law, in
connection with actions by the Venezuelan State-owned oil company,
Petroleos de Venezuela S.A.

On June 2, 2009, PDVSA commenced taking possession of Exterran's
assets and operations in a number of locations in Venezuela.
PDVSA has assumed control over substantially all of Exterran's
assets and operations in Venezuela.  "We are unable to predict
what, if any, compensation Venezuela will ultimately offer in
exchange for any such assets and, accordingly, we are unable to
predict what, if any, compensation we ultimately will receive,"
Exterran said.

Exterran maintains insurance with a policy limit of US$50 million
for the risk of expropriation of its investments in Venezuela.

For the year ended December 31, 2008, Exterran's operations in
Venezuela accounted for US$159.7 million, or 5%, of its revenue
and US$84.2 million, or 8%, of its gross margin.  As of March 31,
2009, Exterran had total assets in Venezuela with a net book value
of approximately US$399.3 million, including receivables of
US$107.2 million, primarily related to projects for PDVSA and its
affiliates.

As reported in the Troubled Company Reporter-Latin America on
May 7, 2009, Bloomberg News said PDVSA will take over some oil
field services being carried out by private companies after
lawmakers approved a bill to increase government control.  The
National Assembly gave preliminary approval to allow the
government to take over activities including water injection into
oil wells, compressing natural gas and management of docks and
boats in Lake Maracaibo, Energy and Mines Commission Head Angel
Rodriguez said in an e-mailed statement obtained by Bloomberg
News.  The same report said based on the statement, if the state
took control from a company, the government would assess payment
at so- called book value and deduct labor and environmental costs.
Payment would be in cash, or securities, it added.  According to
Bloomberg News, Venezuela has called on services companies to
lower fees by as much as 40% this year as PDVSA faces increased
debt after oil prices plunged.

                        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 in the Troubled Company Reporter-Latin America on
Jun 16, 2009 Standard & Poor's Ratings Services lowered its long-
term corporate credit rating on Petroleos de Venezuela S.A. to
'B+' from 'BB-'.  The outlook remains negative.


PDVSA: Food Distribution Unit Lays Off 27% of Workforce
-------------------------------------------------------
A group of hired workers at state-run food producer and
distribution program Pdval, a unit of Petroleos de Venezuela,
complained about a wave of layoffs in the company, Ernesto J Tovar
of El Universal News reports.

According to the report, the hired workers who were employed in
five contractor firms of Pdval reported that about 800 people in
the Caracas Capital District and in the states of Miranda and
Vargas were "removed" from their jobs based on termination of the
contract.  The report relates the workers complained that the
Executive branch of government promised to include them in Pdvsa's
payroll, but the promise was never fulfilled.

The report notes that the 800 people dismissed comprises almost
27% of the 3,000 workers with Pdval at the end of March.

                        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 in the Troubled Company Reporter-Latin America on
June 16, 2009, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Petroleos de Venezuela S.A.
to 'B+' from 'BB-'.  The outlook remains negative.



===============
X X X X X X X X
===============

* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

June 21-24, 2009
INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
    BANKRUPTCY PROFESSIONALS
       8th International World Congress
          TBA
             Contact: http://www.insol.org/

July 16-19, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Mt. Washington Inn
          Bretton Woods, New Hampshire
             Contact: http://www.abiworld.org/

July 29-Aug. 1, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Westin Hilton Head Island Resort & Spa,
       Hilton Head Island, S.C.
          Contact: http://www.abiworld.org/

Aug. 6-8, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Conference
       Hotel Hershey, Hershey, Pa.
          Contact: http://www.abiworld.org/

Sept. 10-11, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Complex Financial Restructuring Program
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
    17th Annual Southwest Bankruptcy Conference
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Oct. 2, 2009
AMERICAN BANKRUPTCY INSTITUTE
    ABI/GULC "Views from the Bench"
       Georgetown University Law Center, Washington, D.C.
          Contact: http://www.abiworld.org/

Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       Marriott Desert Ridge, Phoenix, Arizona
          Contact: 312-578-6900; http://www.turnaround.org/

Oct. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
    NCBJ/ABI Educational Program
       Paris Las Vegas, Las Vegas, Nev.
          Contact: http://www.abiworld.org/

Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
    21st Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.
          Contact: http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/



                            ***********

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 * * *