/raid1/www/Hosts/bankrupt/TCRLA_Public/090630.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
Tuesday, June 30, 2009, Vol. 10, No. 127
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L BANK: Owner's Trial Set on August 25
SIBL: SFG Receiver Files Suit to Recover CD-Related Proceeds
STANFORD INT'L BANK: Prosecutors Seek to Revoke Owner's Bail
STANFORD INT'L BANK: Former Antiguan Regulator Under House Arrest
A R G E N T I N A
AUTOPISTAS DEL: Fitch Affirms 'B' Rating on $162 Mil. Notes
FINART ARTE: Proofs of Claim Verification Due on August 18
INDUSTRIAS CARSIGOM: Proofs of Claim Verification Due on Sept. 15
MAELMADA SA: Proofs of Claim Verification Due on September 1
MOLINO NUEVO: Proofs of Claim Verification Due on October 23
NUEVO TRANSPORTE: Proofs of Claim Verification Due on August 19
PRODUCTORA RURAL: Proofs of Claim Verification Due on Sept. 7
TECNIFICACION AGRICOLA: Creditors' Proofs of Claim Due on Aug. 18
TELECOM ARGENTINA: Posts PS$961 Million Net Income in 2008
TEXTIL SOPHI: Proofs of Claim Verification Due on September 3
B E R M U D A
220 PLUS: Creditors' Proofs of Debt Due on July 8
220 PLUS: Members' Final Meeting Set for August 6
ARIES MARITIME: Covenant Default, Loss Cue Going Concern Doubt
ARIES MARITIME: Completes Sale of Container Vessel for US$2.3 Mil.
CITIGROUP INC: Hands Out 15 Pink Slips at Bermuda Offices
FJH ASSOCIATES: Creditors' Proofs of Debt Due on July 8
FJH ASSOCIATES: Members' Final Meeting Set for July 27
FJH ASSOCIATES: Creditors' Proofs of Debt Due on July 8
FJH ASSOCIATES: Members' Final Meeting Set for July 28
B R A Z I L
BNDES: Cuts Rates For Capital Goods Exporters
BRASKEM SA: Eyes North America Expansion
CONCESSAO METROVIARIA: Moody's Assigns 'Ba3' Corp. Family Rating
EMBRAER: Sold Add'l Jet to Fuji Dream; Gets New Order From KLM
EMBRAER: Delivers 175 Jets to TRIP Linhas
LEAR CORP: Working on Prepackaged Bankruptcy in U.S.
ODEBRETCH: US$850 Million 10-Year Project Loan Gains Momentum
PROPEX INC: Committee Drops Complaint Against BNP Paribas
C A Y M A N I S L A N D S
CVI GVF: Creditors' Proofs of Debt Due on July 14
GLENVIEW CAPITAL: Creditors' Proofs of Debt Due on July 14
KEPCO CAYMAN: Creditors' Proofs of Debt Due on July 23
KOROKAN FUND: Creditors' Proofs of Debt Due on July 23
MEMORIAL FUND: Creditors' Proofs of Debt Due on July 23
OHCAF (OFFSHORE): Creditors' Proofs of Debt Due on July 14
OHCAF (ONSHORE): Creditors' Proofs of Debt Due on July 14
ORIENT FUNDING: Creditors' Proofs of Debt Due on July 22
R-ONE HOLDING: Creditors' Proofs of Debt Due on July 23
SANDLER CAPITAL: Creditors' Proofs of Debt Due on July 23
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
C H I L E
AES: Chile Court Revokes Plant Permit Given by Regulator to Unit
D O M I N I C A
MAP FINANCIAL: Recurring Losses Cues Going Concern Doubt
METALDYNE CORP: Taps Foley as Attys. for U.S. Bankr. Case
D O M I N I C A N R E P U B L I C
BRITISH AIRWAYS: Launches New Route to Punta Cana
TRICOM SA: Plan Solicitation Period Extended Until August 31
C O L O M B I A
ECOPETROL SA: To Increase This Year's Investments to US$7 Billion
J A M A I C A
AIR JAMAICA: Adds Two Flights to Orlando Route
JUCT: Embarks Ticketing Campaign on Revenue Loss
PETROJAM LIMITED: Minister to Explain US$7-Billion Loss
* JAMAICA: Bauxite & Mining Sector Trading Shows 14% Drop
M E X I C O
CIUDADVICTORIA: Moody's Assigns 'Ba2' Global Scale Rating
HAYES LEMMERZ: Court Establishes July 27 General Bar Date
OCULUS INNOVATIVE: Marcum LLP Raises Going Concern Doubt
P E R U
ASARCO LLC: Seeks to Expand Barclays Role in Assets Sale
P U E R T O R I C O
BURLINGTON COAT: Fitch Affirms Issuer Default Rating at 'B-'
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
===============================
A N T I G U A & B A R B U D A
===============================
STANFORD INT'L BANK: Owner's Trial Set on August 25
---------------------------------------------------
Stanford International Bank Limited (SIBL) owner Robert Allen
Stanford's trial is set to begin on August 25, Anna Driver of
Reuters reports. The report relates U.S. Magistrate Judge Frances
Stacy has yet to rule on whether Mr. Stanford must remain behind
bars while he awaits the said date.
As reported in the Troubled Company Reporter-Latin America on
June 29, 2009, Agence France-Presse News (AFP) said Mr. Stanford
pleaded not guilty to 21 charges of multi-billion dollar fraud,
money-laundering and obstruction. The report related Mr.
Stanford, who appeared in a Houston court Friday, June 25,
forcefully said: "Not guilty."
Laurel Brubaker Calkins of Bloomberg News related Mr. Stanford's
lawyer, Dick DeGuerin, said his client should be released on bond
because he has no intention of fleeing before a trial. “The
government has engineered circumstances designed to thwart Mr.
Stanford’s efforts to voluntarily surrender and appear,” the
report quoted Mr. DeGuerin as saying. “Allen Stanford has shown
he is not a flight risk through his actions thus far.”
According to a TCRLA report on June 24, citing Agence France-
Presse News, Mr. Stanford and four others -- former Stanford
Financial Group (SFG) Chief Investment Office Laura Pendergest-
Holt; former Antigua financial regulatory agency chief Leroy King;
and Stanford-affiliated accountants, Mark Kuhrt and Gilberto Lopez
-- were charged with 21 counts of fraud, money-laundering and
obstruction in a multi-billion scam.
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 SFG court-
appointed receiver Ralph Janvey.
Assistant Attorney General Lanny Breuer, as cited by AFP,
announced in a 57-page indictment that Mr. Stanford could face up
to 250 years in prison if convicted on all charges. AFP noted the
indictment came from a grand jury in Houston, Texas that had been
investigating Stanford Financial Group.
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.
SIBL: SFG Receiver Files Suit to Recover CD-Related Proceeds
------------------------------------------------------------
Stanford Financial Group (SFG) court-appointed receiver, Ralph
Janvey, filed a lawsuit that seeks to recover from certain
customer brokerage accounts more than US$9.5 million in proceeds
related to Stanford International Bank Limited (SIBL) certificates
of deposit.
The lawsuit provides an opportunity for the Court overseeing the
Stanford Estate to resolve important legal issues that will
determine whether and how the Receiver may proceed with other
similar claims to recover CD-related proceeds from other
recipients.
The lawsuit makes clear that the Receiver is not alleging that the
customers – referred to as “relief defendants” – participated in
the fraudulent schemes at issue in the case or otherwise
committed any wrongdoing.
The seven relief defendants named in the complaint were selected
because:
(1) their situations have key facts in common
(they each received CD redemptions between October
2008 and January 2009);
(2) the amount at issue in the aggregate is
substantial yet held by a small number of
individuals; and
(3) they are all represented by the same counsel.
On June 25, 2009, the Receiver filed another similar complaint
against another individual and a related entity to recover more
than US$11 million of such CD-related proceeds. This complaint
also presents a “test case” and is a response to a motion filed by
these relief defendants to unfreeze their accounts.
The U.S. Securities and Exchange Commission has alleged that the
CDs were not genuine investments but rather were part of a massive
Ponzi scheme that defrauded investors out of billions of dollars.
The complaints against the relief defendants request the Court to
order that the CD-related proceeds, including both principal and
interest, be determined to be property of the Estate and held in a
constructive trust for the benefit of the Estate, so that they may
be shared on an equitable basis by all CD investors and other
claimants against the Estate.
In deciding to file these cases against only a small number of
individuals, the Receiver was mindful that the Court-appointed
Examiner has raised objections to the pursuit of such
“clawback” claims.
Filing of these “test cases” provides an appropriate opportunity
for the Court to address these key issues at an early stage. The
lawsuits were filed in the Dallas Federal court that has
jurisdiction over the Receivership.
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.
* * *
The U.S. Securities and Exchange Commission, on Feb. 17, charged
SIBL owner Robert Allen Stanford and three of his companies for
orchestrating a fraudulent, multi-billion dollar investment scheme
centering on an US$8 billion Certificate of Deposit program. 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.
STANFORD INT'L BANK: Prosecutors Seek to Revoke Owner's Bail
------------------------------------------------------------
Prosecutors urged U.S. District Judge David Hittner to revoke
the US$500,000 bail given by U.S. Magistrate Judge Frances Stacy
to Stanford International Bank Limited (SIBL) owner Robert Allen
Stanford, Laurel Brubaker Calkins and Andrew M. Harris of
Bloomberg News report. The report relates prosecutors told Judge
Hittner that Mr. Stanford is “an extreme flight risk” and might
flee to avoid trial on charges against him.
According to the report, prosecutors argued that Mr. Stanford's
dual citizenship and lifestyle of “hop-scotching the globe,” would
make it easy for him to become a fugitive. “That’s been Mr.
Stanford’s life for the last 15 years,” Assistant U.S. Attorney
Gregg Costa told Judge Hittner during a federal court hearing in
Houston, the report relates.
Bloomberg News recalls Judge Stacy ordered Mr. Stanford released
after the June 25 hearing, however, she placed the order on
hold so prosecutors could challenge it before the higher-ranking
Hittner, who ordered him detained until a hearing.
Judge Hittner, the report notes, didn’t indicate when he would
rule, although he promised lawyers he would “get an order out real
quick.” The report relates Judge Hittner said each side would be
allowed to speak at length, after which he said he planned to read
the Stacy bail hearing transcript which wasn’t provided until
after the proceedings started.
As reported in the Troubled Company Reporter-Latin America on
June 29, 2009, Agence France-Presse News (AFP) said Mr. Stanford
pleaded not guilty to 21 charges of multi-billion dollar fraud,
money-laundering and obstruction. Bloomberg News related Mr.
Stanford's lawyer, Dick DeGuerin, said his client should be
released on bond because he has no intention of fleeing before a
trial. According to Bloomberg News, Mr. DeGuerin said Mr.
Stanford voluntarily surrendered his passport two days after the
U.S. Securities and Exchange Commission (SEC) sued him of fraud.
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 SFG court-
appointed receiver Ralph Janvey.
Assistant Attorney General Lanny Breuer, as cited by AFP,
announced in a 57-page indictment that Mr. Stanford could face up
to 250 years in prison if convicted on all charges. AFP noted the
indictment came from a grand jury in Houston, Texas that had been
investigating Stanford Financial Group.
A TCRLA report on June 23, citing RadioJamaica, related that Mr.
Stanford surrendered to U.S. authorities after a warrant was
issued for his arrest on criminal charges. MailOnline News said
Mr. Stanford was arrested in Fredricksburg, Virginia.
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 BANK: Former Antiguan Regulator Under House Arrest
-----------------------------------------------------------------
Former Antiguan Chief Financial Regulator Leroy King -- who was
accused in the alleged multi-billion swindle by Stanford
International Bank Limited (SIBL) owner Robert Allen
Stanford –- is now under house arrest, CaribWorldNews reports.
According to the report, Mr. King, who was arrested on June 24,
was released on about US$190,800 bail on June 25, but placed under
house arrest. The report relates Mr. King is required to check in
with police twice a day and cannot leave home except for medical
appointments.
As reported in the Troubled Cxompany Reporter-Latin America on
June 25, 2009, The Associated Press said Antigua and Barbuda fired
Mr. King four days after U.S. prosecutors charged that he
accepted more than $100,000 in bribes to help Mr. Stanford with an
alleged multi-billion swindle. According to the report, Attorney
General Justin Simon said the government accepted the
recommendation of the country's Financial Services Regulatory
Commission that Mr. King "be dismissed from the commission with
immediate effect."
AP noted prosecutors said Mr. King, who was the Caribbean islands'
top regulator, should have caught the fraud but instead took
bribes to let it continue.
According to a June 24 TCRLA report, citing Agence France-Presse
News, Mr. Stanford and four others -- former Stanford Financial
Group (SFG) Chief Investment Office Laura Pendergest-Holt; former
Antigua financial regulatory agency chief Leroy King; and
Stanford-affiliated accountants, Mark Kuhrt and Gilberto Lopez --
were charged with 21 counts of fraud, money-laundering and
obstruction in a multi-billion scam.
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 SFG court-
appointed 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
=================
AUTOPISTAS DEL: Fitch Affirms 'B' Rating on $162 Mil. Notes
-----------------------------------------------------------
Fitch Ratings affirms the 'B' rating on the $162 million senior
secured notes of Autopistas del Nordeste (Cayman) Limited due
2026. The Rating Outlook is Stable.
The rating reflects the completion of the toll road, Minimum
Revenue Guarantee honored by Government of Dominican Republic, an
unconditional stand-by letter of credit provided by Banco de
Reservas de la Republica Dominicana, (a state-owned financial
institution), and a partial credit guarantee from the Multilateral
Investment Guarantee Agency. The rating is constrained by
significantly low traffic volume and increased reliance on MRG
from GODR (IDR: 'B' by Fitch).
Even though the project has been partially opened to toll traffic
since 2006, the construction for a 106 kilometer toll road was
completed in June 2008, thus completion risk that existed earlier
with the project is no longer present. The road represents a
saving of approximately 85 km of travel distance between Samana
and Santo Domingo. As of March 31, 2009, the project had a cash
balance of approximately $11 million and a $20 million of LOC. It
is worth mentioning that to date GODR has honored the MRG and LOC
remains unutilized. Given that the debt was being capitalized
during construction phase of the project, the debt outstanding as
of March 2009 was at $182 million. As required by the financial
agreements; the project reduced the outstanding debt by
$20 million in July 2008.
Since the opening of all three toll plazas in June 2008, traffic
volume and revenues have been significantly below projections;
thus, increasing reliance on the MRG, which is a constraining
factor to the rating. As of April 2009, the traffic volume was
approximately at 3,183 vehicles per day (v/d) at Toll Plaza 1,
2,527 v/d at Toll Plaza 2, and 2,198 v/d at Toll Plaza 3,
approximately 41%-55% lower than the independent engineer's
projections in the pessimistic scenario. Consequently, the
revenue was approximately 58% below the IE's pessimistic
projections. Fitch believes that unless there is significant
growth in traffic in the next few years, the project would be
highly dependent on the MRG to make debt service payments through
maturity.
Other credit considerations included a MIGA Loan Guarantee. The
MIGA Loan Guarantee covers up to 51% of the scheduled principal
and interest. This guarantee is activated in the event of
transfer restriction, expropriation of funds, war and civil
disturbance, or breach of contract, including minimum revenue
guarantee of the GODR, which is key to the project's dynamics. As
of May 2009, the MIGA guarantee amount was approximately at US$ 95
million. In December 2008, the Congress approved certain
amendments to key memorandums, mitigating the uncertainty of legal
risks associated with the MIGA coverage that existed at financial
close. With this amendment, the MIGA guarantee can be enforced
after the arbitration process in the U.S. courts rather than the
Dominican Republican courts. Fitch views these amendments
favorably, as it reduces the time required for the MIGA guarantee
to be enforced.
The notes were issued to help fund the construction of the Santo
Domingo-Samana toll road in the Dominican Republic. Bonds are
secured by a senior lien on toll revenues and by a MRG provided by
the Government of Dominican Republic.
The project consists of a 106 km toll road connecting the Las
Americas highway from Santo Domingo to the Rincon de Molinillos
junction in Samana. This road is expected to reduce the distance
by 114 km and reduce traveling time commensurately. The road is
being developed under a 33-year concession awarded by the GODR to
a consortium of construction companies (Autopistas del Nordeste,
C. por A.) which include ODINSA, GRODCO, and Remix.
FINART ARTE: Proofs of Claim Verification Due on August 18
----------------------------------------------------------
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.
INDUSTRIAS CARSIGOM: Proofs of Claim Verification Due on Sept. 15
-----------------------------------------------------------------
The court-appointed trustee for Industrias Carsigom S.A.'s
reorganization proceedings, will be verifying creditors' proofs of
claim until September 15, 2009.
The trustee will present the validated claims in court as
individual reports on October 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
December 10, 2009.
Creditors will vote to ratify the completed settlement plan
during the assembly on June 17, 2010.
MAELMADA SA: Proofs of Claim Verification Due on September 1
------------------------------------------------------------
The court-appointed trustee for Maelmada S.A.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
September 1, 2009.
The trustee will present the validated claims in court as
individual reports on October 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
November 25, 2009.
MOLINO NUEVO: Proofs of Claim Verification Due on October 23
------------------------------------------------------------
The court-appointed trustee for Molino Nuevo S.A.'s reorganization
proceedings, will be verifying creditors' proofs of claim until
October 23, 2009.
The trustee will present the validated claims in court as
individual reports on December 4, 2009. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
February 18, 2010.
Creditors will vote to ratify the completed settlement plan
during the assembly on July 2, 2010.
NUEVO TRANSPORTE: Proofs of Claim Verification Due on August 19
---------------------------------------------------------------
The court-appointed trustee for Nuevo Transporte Cordoba S.R.L.'s
reorganization proceedings, will be verifying creditors' proofs of
claim until August 19, 2009.
PRODUCTORA RURAL: Proofs of Claim Verification Due on Sept. 7
-------------------------------------------------------------
The court-appointed trustee for Productora Rural El Mana S.A.'s
reorganization proceedings, will be verifying creditors' proofs of
claim until September 7, 2009.
TECNIFICACION AGRICOLA: Creditors' Proofs of Claim Due on Aug. 18
-----------------------------------------------------------------
The court-appointed trustee for Tecnificacion Agricola S.R.L.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until August 18, 2009.
TELECOM ARGENTINA: Posts PS$961 Million Net Income in 2008
----------------------------------------------------------
Argentina-based Telecom Argentina S.A disclosed its financial
results for the year ended December 31, 2008.
For the year ended December 31, 2008, the company posted
P$10.61 billion net sales, higher compared to the
PS$9.07 billion recorded for the same period last year.
The company posted a net income of PS$961 million for the year-
ended December 31, 2008, higher compared to the P$884 million net
income recorded for the same period in 2007.
The Company's balance sheet as of the end of December 2008 showed
total assets of P$9.65 billion, total liabilities of $5.629
billion and total shareholder's equity of P$4.020 billion.
As of December 31, 2008, the company's balance sheet showed
strained liquidity with total current assets of P$2.59 billion
available to pay total current liabilities of P$4.06 billion.
A copy of the Company's Annual Report with the SEC is available
for free at:
http://www.sec.gov/Archives/edgar/data/932470/000110465909040413/a
09-16713_120f.htm#Item13_DefaultsDividendArrearages_045542
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As reported in the Troubled Company reporter-Latin America on
Feb. 16, 2009, Standard & Poor's Ratings Services lowered Telecom
Argentina SA's foreign currency rating to B-/Stable/ and local
currency rating to B/Stable/. The outlook on both ratings is
stable.
TEXTIL SOPHI: Proofs of Claim Verification Due on September 3
-------------------------------------------------------------
The court-appointed trustee for Textil Sophi S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
September 3, 2009.
The trustee will present the validated claims in court as
individual reports on October 16, 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
November 27, 2009.
=============
B E R M U D A
=============
220 PLUS: Creditors' Proofs of Debt Due on July 8
-------------------------------------------------
The creditors of 220 Plus Bond Trading Limited are required to
file their proofs of debt by July 8, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 22, 2009.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House
5 Park Road, Hamilton HM O9
Bermuda
220 PLUS: Members' Final Meeting Set for August 6
-------------------------------------------------
The members of 220 Plus Bond Trading Limited will hold their final
general meeting on August 6, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on June 22, 2009.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House
5 Park Road, Hamilton HM O9
Bermuda
ARIES MARITIME: Covenant Default, Loss Cue Going Concern Doubt
--------------------------------------------------------------
Aries Maritime Transport Limited has incurred a net loss, has a
net working capital deficit and has not met certain of its
financial covenants of debt agreements with lenders. "These
conditions raise substantial doubt about its ability to continue
as a going concern," PricewaterhouseCoopers S.A. in Athens,
Greece, said in its June 26, 2009 audit report.
The Company had US$317,777,000 in total assets and US$252,261,000
in total liabilities as of December 31, 2008.
During the years ended December 31, 2008 and December 31, 2007,
the Company incurred losses of US$39.8 million and US$8.7 million,
respectively. As at December 31, 2008, the Company reported
working capital deficit of US$231.7 million which includes
US$223.7 million of debt reflected as current.
During the years ended December 31, 2008 and December 31, 2007,
the Company has not been in compliance with these covenants of its
facility agreement:
-- The interest coverage ratio financial covenant, during each
quarter of 2007 and 2008;
-- The minimum working capital financial covenant, as at
December 31, 2007 and during each quarter of 2008, as a
result of the Company's outstanding borrowings being
reflected as current;
-- The adjusted equity ratio financial covenant, as of
December 31, 2008; and
-- The reduction of the outstanding borrowings from their level
of US$284.8 million as at June 11 to US$200 million, by
disposal of vessels, by August 31, 2008.
The outstanding borrowings have been reduced to US$223.7 million
through the sale of three of the Company's vessels, the Arius, MSC
Oslo and Energy 1 for net proceeds of US$59.6 million.
In addition, the Company expects to reduce its outstanding
borrowings to US$221.4 million with net proceeds of US$2.3 million
from the sale of the Ocean Hope.
Due to the current financial turmoil that has significantly
affected the industry and our vessels' values, the Company's
lenders notified it on April 9, 2009, that the Security Value of
the Company's vessels was less than the Security Requirement, as
defined in the credit agreement. However, the Company believes
that the valuations obtained by the lenders are not valid due to
the lack of liquidity in the vessel sale and purchase market as
noted in the various disclaimers included in such valuations.
The Company is currently in discussions with the lenders regarding
the alleged breach of the Security Requirement covenant. The
Company is also seeking waivers in respect of the covenants of
which it is in breach and to restructure its credit facility.
The Company has plans in place to improve performance and
financial strength. These plans mainly relate to the reduction of
vessel operating expenses, the potential sales of one or more
vessels to strengthen financial position and plans for enhancing
equity capital.
On June 24, 2009, the Company signed a non-binding letter of
intent with Grandunion, a company controlled by Michael Zolotas
and Nicholas Fistes, that contemplates, among other things, the
acquisition of three Capesize drybulk carriers with an approximate
net asset value of US$36.0 million in exchange for 15,977,778
newly issued shares of Aries Maritime and a change of control of
the Company's board of directors.
However, there is no assurance that the Company will enter into
definitive agreements with Grandunion or that the Company will be
successful in achieving its objectives.
The Company noted that absent any further relaxation under the
credit facility covenants, the lenders have the ability to demand
repayment of outstanding borrowings.
The lenders notified the Company on October 27, 2008, December 24,
2008, February 6, 2009 and April 3, 2009 that certain events of
default have occurred and continue to occur. In addition, the
lenders have advised the Company that it is not their immediate
intention to take enforcement action, but they reserve their
rights to do so.
"The Company's ability to continue as a going concern is dependent
on management's ability to reach an agreement with its lenders and
to continue to improve the performance of the Company, which
includes achieving profitable operations in the future, and the
continued support of its shareholders and its lenders," the
Company said in a Form 20-F regulatory filing with the U.S.
Securities and Exchange Commission.
A full-text copy of the Company's annual report filed on Form 20-F
is available at no charge at http://ResearchArchives.com/t/s?3e53
Aries Maritime Transport Limited is a Bermuda company incorporated
in January 2005 as a wholly owned indirect subsidiary of Aries
Energy Corporation. Aries Maritime is an international shipping
company that owns product tankers and container vessels. Aries
Maritime's common stock is listed on the Nasdaq Global Market
under the symbol "RAMS." Aries Maritime's principal executive
office is at 18 Zerva Nap., Glyfada, 166 75, Greece.
ARIES MARITIME: Completes Sale of Container Vessel for US$2.3 Mil.
------------------------------------------------------------------
Aries Maritime Transport Limited has completed the sale of the
Ocean Hope, a 1989-built container vessel, to an unrelated third
party for a net price of US$2.3 million. Proceeds from the sale
of the Ocean Hope, which was delivered on June 29, 2009, will be
used to pay down debt under the Company's fully revolving credit
facility.
Jeff Parry, Chief Executive Officer, said, "We are pleased to
complete the sale of the Ocean Hope, the oldest vessel in our
fleet. With this transaction, we have enhanced Aries' fleet
profile and improved the Company's financial position."
About Aries Maritime Transport Limited
Aries Maritime Transport Limited is an international shipping
company that owns and operates products tankers and container
vessels. The Company's products tanker fleet consists of five MR
tankers and four Panamax tankers, all of which are double-hulled.
The Company also owns a fleet of two container vessels, excluding
the Ocean Hope, with a capacity of 2,917 TEU per vessel. Seven of
the Company's 11 vessels are secured on period charters. Charters
for two of the Company's products tanker vessels currently have
profit-sharing components.
Aries Maritime Transport Limited is a Bermuda company incorporated
in January 2005 as a wholly owned indirect subsidiary of Aries
Energy Corporation. Aries Maritime is an international shipping
company that owns product tankers and container vessels. Aries
Maritime's common stock is listed on the Nasdaq Global Market
under the symbol "RAMS." Aries Maritime's principal executive
office is at 18 Zerva Nap., Glyfada, 166 75, Greece.
CITIGROUP INC: Hands Out 15 Pink Slips at Bermuda Offices
---------------------------------------------------------
New York-based Citigroup Inc. has made 15 jobs at its Bermuda
offices redundant as part of a series of job cuts worldwide, Alex
Wright of The Royal Gazette reports.
According to the report, the company employs around 230 people at
its Citi Hedge Fund Services and Citigroup Fund Services (Bermuda)
units within its Global Transaction Services Group, but the
company would not confirm which departments had been affected.
Citigroup, the report recalls, announced in November last year
that it was aiming to axe 52,000 jobs or one-seventh of its
workforce globally, with staff in Bermuda along with their peers
across the world invited to a virtual town hall meeting to be
informed of the lay-offs and the financial condition of the
company.
About Citigroup Inc.
Based in New York, Citigroup Inc. (NYSE: C) --
http://www.citigroup.com/-- is organized into four major segments
-- Consumer Banking, Global Cards, Institutional Clients Group,
and Global Wealth Management. Citigroup had $2.0 trillion in
total assets on $1.9 trillion in total liabilities as of
September 30, 2008.
As reported in the Troubled Company Reporter on November 25, 2008,
the U.S. government entered into an agreement with Citigroup to
provide a package of guarantees, liquidity access, and capital.
As part of the agreement, the U.S. Treasury and the Federal
Deposit Insurance Corporation will provide protection against the
possibility of unusually large losses on an asset pool of
approximately $306 billion of loans and securities backed by
residential and commercial real estate and other such assets,
which will remain on Citigroup's balance sheet. As a fee for this
arrangement, Citigroup issued preferred shares to the Treasury and
FDIC. The Federal Reserve agreed to backstop residual risk in the
asset pool through a non-recourse loan.
Citigroup is one of the banks that, according to results of the
government's stress test, need more capital.
FJH ASSOCIATES: Creditors' Proofs of Debt Due on July 8
-------------------------------------------------------
The creditors of FJH Associates International Fund Limited are
required to file their proofs of debt by July 8, 2009, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on June 19, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
FJH ASSOCIATES: Members' Final Meeting Set for July 27
------------------------------------------------------
The members of FJH Associates International Fund Limited will hold
their final general meeting on July 27, 2009, at 9:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced wind-up proceedings on June 19, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
FJH ASSOCIATES: Creditors' Proofs of Debt Due on July 8
-------------------------------------------------------
The creditors of FJH Associates Asset Management Limited are
required to file their proofs of debt by July 8, 2009, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on June 19, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
FJH ASSOCIATES: Members' Final Meeting Set for July 28
------------------------------------------------------
The members of FJH Associates Asset Management Limited will hold
their final general meeting on July 28, 2009, at 9:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced wind-up proceedings on June 19, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
===========
B R A Z I L
===========
BNDES: Cuts Rates For Capital Goods Exporters
---------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA (BNDES)
said it will lower interest rates for capital goods purchases,
Kenneth Rapoza of Dow Jones Newswires reports.
According to the report, companies looking to finance purchasing
or exporting heavy equipment will see long-term BNDES loan rates
drop to 4.5% per year from 10.25% currently.
Brazil, the report relates, announced a series of stimulus
measures, including lower long-term interest rates of 6% instead
of 6.25%, and an industrial production tax break extension for
automakers and major home appliance manufacturers in an effort to
reduce the effects of the recession.
About BNDES
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 June 25, 2009, the company continues to carry Moody's Ba2
foreign long-term bank deposit rating.
BRASKEM SA: Eyes North America Expansion
----------------------------------------
Brazil-based Braskem S.A. is eyeing expansion in North America
where acquisitions would position it for long-term growth,
Guillermo Parra-Bernal of Reuters reports, citing local newspaper
O Estado de S. Paulo.
“"We believe that sooner or later we will have stakes in assets in
North America to have access to clients, logistics, production and
operations,” Braskem CEO Bernardo Gradin told the local newspaper
in an interview, Reuters relates.
The newspaper, Reuters notes, said Mr. Parra-Bernal declined to
elaborate on the plans, adding there were existing "good assets"
but valuations may have to be analyzed carefully before purchase.
Braskem was not considering large acquisitions so the company
could preserve cash holdings until the worst of the global credit
crunch is over, Mr. Gradin told Estado, the report notes.
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.
CONCESSAO METROVIARIA: Moody's Assigns 'Ba3' Corp. Family Rating
----------------------------------------------------------------
Moody's assigned a Ba3 corporate family rating on the global scale
and A3.br corporate family rating on the Brazilian National Scale
to Concessao Metroviaria Rio de Janeiro S/A. At the same time
Moody's assigned a Br-2 rating to Metro Rio's 180-day
BRL100 million promissory notes. The outlook is stable.
Metro Rio's ratings reflect adequate credit metrics for the rating
category, inherently stable and predictable cash flow derived from
a long-term concession contract, financially strong shareholders
and experienced management along with Moody's view that the
existing BRL400 million debt (contracted as part of the financing
of the acquisition of Metro Rio by the current shareholders) at
the holding company level will not be serviced by Metro Rio's cash
flow. The ratings are constrained by the company's relatively
small size, an aggressive capital expenditures program and the
risks associated with obtaining adequate and timely long-term
funding coupled with the risk of potential political interference
with respect to fare adjustments and/or alterations to the current
expansion plans to the existing mass transportation system.
Metro Rio has posted very strong performance over the past five
years as evidenced by growing net revenues and expanding operating
margins. The CAGR (compound annual growth rate) of net revenues
was 13.2% from 2004 through 2008 while operating margins as
measured by EBITDA grew steadily from 22,4% in 2004 to 35.7% in
2008. The positive impact on cash flow stands out as a major
credit factor. In addition, Metro Rio comfortably met its cash
needs during this period leading to a very low level of
indebtedness. In fact, the only outstanding debt as of March 31,
2009, was related to the concession's financial obligations in the
amount of BRL 354 million which is scheduled to be fully amortized
by 2018.
These accomplishments are an indication of the quality of
management which has been able to achieve significantly better
operating performance with virtually no significant investment in
capacity expansion. As Metro Rio has apparently reached optimum
operational parameters on the existing infrastructure, higher
capital expenditures in the subway network are required to
maintain the upward trend of revenues and operating margins going
forward.
The relative stability and predictability of cash flow has been
assured by a long-term concession contract granted by the
government of the state of Rio de Janeiro in 1998 originally set
to expire in 2018. The terms and conditions of this contract are
relatively simple: Metro Rio has to operate and maintain the metro
system and comply with certain operating performance parameters
which are periodically measured and monitored by the Rio de
Janeiro state government's regulatory agency, AGETRANSP-RJ. The
base fare is adjusted once a year in the month of April in
accordance with the general price index for inflation (IGP-M). As
the bulk of the operating costs are to a large extent within the
company's discretionary control (i.e. labor and electricity), the
annual inflation adjustment on the tariffs has reasonably kept
pace with increased costs and offered adequate compensation.
The major risk associated with the concession rests on the
potential political interference of the government of the state of
Rio de Janeiro (not rated). So far, the current government has
been market-oriented and respectful of contracts. There is no
assurance, however, that a new government administration would
continue to provide timely fare adjustments in the future.
Metro Rio has recently negotiated an extension of the concession
rights with the State Government from 2018 to 2038. Given the
government's budget constraints to invest in the expansion of the
city's subway network and in association with the concession
extension, the two parties reached an agreement by which Metro Rio
has committed to invest approximately BRL 1.2 billion through 2018
on the acquisition of 19 trains (114 cars), the construction of
two subway stations, 3.1 kilometers of additional railroad and the
acquisition of complementary operating systems.
Projections indicate that Metro Rio will post a significant
increase in revenues and operating margins as a result of the
expansion program starting in 2010 when the first investment phase
is concluded, resulting in the inauguration of two subway stations
and the 3.1 kilometers of additional railroad which will link
Lines 1 and 2 of the system, increasing capacity and reduce travel
times. The assumptions used throughout the projections are
aggressive in that management forecasts that the number of
passengers transported per day will dramatically increase during
this period, from 545,000 in 2008 to 811,000 in 2013 with a
commensurate positive impact on operating margins, which are
expected to expand from 35% to around 50% during the same period.
The rationale for these improved metrics rests primarily on the
expected gains to be achieved by eliminating existing bottlenecks,
extensive use of promotions to stimulate new passengers to
substitute other competing means of transportation, such as buses,
to use the subway service during non-peak periods of the day, and
an increase in seat availability through the remodeling of the
existing cars and the acquisition of new ones.
In light of this aggressive investment program, Metro Rio's
leverage will increase materially over the next three years.
Moody's projections indicate that leverage as measured by adjusted
debt (which includes the concession's financial obligations) over
EBITDA will average 4.5x in the next three years then decrease
thereafter. The company is forecasted to benefit from expanded
seat availability and increased demand from passengers throughout
the projection period; however, while the bulk of the capital
expenditures will be made in the first few years, the benefits of
the expected enhanced cash flow will only begin to materialize in
2011 and beyond assuming there are no significant construction
delays.
Given the proven expertise of management and considering the main
characteristics of Metro Rio's concession area, Moody's
understands that the goals envisaged in the projections are
feasible but also represent a major challenge going forward.
Metro Rio has a clear competitive advantage over other available
means of transportation within its concession area given the
general lack of adequate public transportation and urban planning
and lower quality services offered by competing modes of
transportation.
The major downside risks to projections are material delays in the
construction of the additional 3.1 Km of railroad and/or the two
new train stations, a lower-than-expected pace of growth in
additional passenger traffic and volume of sales derived from this
specific investment, a delay in the delivery of trains and an
inability to provide adequate funding in a timely manner to meet
the respective deadlines of the concession obligations.
Moody's understands that the size of the investment along with the
uncertainties as to the adequacy and timing of financial resources
are critical credit risks. Management reports that there have
been advanced negotiations with BNDES (Brazilian National
Development Bank), the CEF (Caixa Economica Federal Bank) and
Japan Bank International Corporation (JBIC) to provide the funding
for distinct components of the proposed investment program.
Nevertheless, there remain uncertainties as to the effective
participation of each source in the overall funding, the basic
contractual conditions and definition of hedging mechanisms to
eventually protect the company against the volatility of foreign
currencies that may be utilized in the funding. Moody's expects
that a large part of the financing of the rolling stock will come
from JBIC.
The immediate parent holding company (MEGAPAR) of Metro Rio
currently has a BRL 400 million short-term debt which is expected
to be replaced by the issuance of long-term debentures. These
debentures would be purchased by the three pension funds (Previ,
Petrus and Funcef), which are the group's ultimate major
shareholders. Management has stated that one of the alternatives
to take the current $400 million of commercial paper borrowings
out of MEGAPAR is to up-stream this debt to the ultimate holding
company, INVEPAR (Investimentos e Participacoes em Infraestrutura
S.A.) following an expected downstream incorporation of Metro Rio
by Megapar and its non-operating subsidiaries. Moody's
understands that this is crucial for Metro Rio's objective to
achieve a more manageable capital structure, which otherwise would
be significantly impaired if part of its cash flow was directed to
serve this debt.
The stable outlook reflects Moody's expectation that Metro Rio
will eventually obtain long-term funding to finance its investment
program and that leverage will remain relatively high over the
next three yeas, but compatible with the rating category. Despite
this expectation, refinancing risk remains a major credit risk
over the short-term. Moody's expects that the existing
BRL400 million debt at the immediate parent holding company level
will not be served by Metro Rio's cash flow and that new
borrowings at the Metro Rio level will contain specific
contractual clauses addressing this issue; existing short-term
working capital financing already contains restrictive covenants.
The short-term rating could see upward pressure if timely and
adequate long-term funding commitments are obtained. The
corporate family ratings could be subject to upward pressure if
operating results indicate solid sales growth and expanded cash
flow so that the Adjusted debt/ EBITDA ratio falls below 3.5x on a
sustainable basis.
Downward rating pressure would occur if adequate financing is not
obtained or if refinancing risk was perceived to be increasing
precipitously or if the Adjusted debt/EBITDA ratio were to
materially 4.5 times for an extended period.
Concessao Metroviaria do Rio de Janeiro S.A., is a public
transportation company that owns the concession to operate Lines 1
and 2 of the subway system in the City of Rio de Janeiro, Brazil.
The concession was granted by the State Government of Rio de
Janeiro in 1998 for a 20- year period and was recently renewed for
additional 20 years, now expiring in January of 2038. The
extension of the concession tenor is subject to the completion of
investments in modernization and expansion. At the end of the
concession period, the assets revert to the State Government of
Rio de Janeiro. Metro Rio reported consolidated net revenues of
BRL 332 million (US$167 million) and EBITDA of BRL 114 million
(US$57 million) in the last twelve months ended March 31, 2009.
In March 2009, the total capital of Metro Rio was acquired by
Megapar Participacoes S.A. for an amount of approximately
BRL1 billion. MEGAPAR is wholly owned by Investimentos e
Participacoes em Infraestrutura S.A. - INVEPAR, a holding company
controlled by three of the largest Brazilian pension funds
(FUNCEF, PETROS and PREVI) and the construction company OAS
(unrated). Invepar also owns the toll road concessions of Linha
Amarela in Rio de Janeiro, Concessionaria Litoral Norte in Bahia
and the recently auctioned Raposo Tavares in Sao Paulo.
EMBRAER: Sold Add'l Jet to Fuji Dream; Gets New Order From KLM
--------------------------------------------------------------
Empresa Brasileira de Aeronautica SA (Embraer) has sold a third E-
Jet -- an Embraer 175 -- to Japan's Fuji Dream Airlines, a unit of
Suzuyo Group, Brazzil Magazine reports.
The report recalls that the original contract, signed in November
2007 with the Suzuyo Group, covered a firm order for two Embraer
170s and purchase rights for another aircraft of the same model.
The report relates the contract was amended, opening the way for
Fuji Dream to order the Embraer 175, which is already included in
Embraer's first quarter firm order backlog.
According to the report, Fuji Dream already received its first two
Embraer 170s and will start revenue services in July. The
delivery of the new aircraft model, the Embraer 175, is scheduled
to take place in 2010, the report says.
Meanwhile, BrazzilMagazine notes Embraer and KLM Cityhopper, KLM's
regional subsidiary, signed a contract for another seven Embraer
190 jets, confirming the options in the original contract,
announced in August 2007. The report says the Dutch airline still
has 11 options to buy Embraer jets. The initial deliveries of this
new order should take place during the first semester of 2010.
About Embraer
Headquartered in Brazil, Empresa Brasileira de Aeronautica SA
(Embraer) -- http://www.embraer.com–- is a company engaged in the
manufacture of aircrafts for commercial aviation, executive jet
and defense and government purposes. The Company has developed a
line of executive jets based on one of its regional jet platforms
and launched executive jets in the entry-level, light, ultra-large
and mid-light/mid-size categories, the Phenom 100/300 family, the
Lineage 1000 and the Legacy 450/500 family, respectively. The
Company supplies defense aircraft for the Brazilian Air Force
based on number of aircraft sold, and sells aircraft to military
forces in Europe, Asia and Latin America. In July 2008, the
Company acquired a 40% interest owned by Liebherr Aerospace SAS in
ELEB–Equipamentos Ltda (ELEB). ELEB is an aerospace system and
component manufacturer, and its products include landing gear
systems, hydraulics and electro-mechanical sub-assemblies, such as
actuators, valves, accumulators and pylons.
* * *
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2009, Bloomberg News said Embraer will lay off around
4,200 workers, which represents 20% of its 21,362 employees, and
reduced its 2009 revenue forecast by 13% due to the global
recession.
EMBRAER: Delivers 175 Jets to TRIP Linhas
-----------------------------------------
Brazil-based Empresa Brasileira de Aeronautica SA ("Embraer") said
it has delivered 175 jet to TRIP Linhas Aereas, the largest
Brazilian regional airline.
The company said it has five firm orders for the EMBRAER 175, in a
deal that includes options for another ten aircraft and purchase
rights for 15 more.
The new aircraft that will be delivered will join TRIP’s fleet,
which currently has another two EMBRAER 175 jets – and this E-Jet
model is operating in Brazil for the first time – all of
which are configured to comfortably accommodate 86 passengers in a
single-class layout. The airplanes are being financed conjointly,
in Brazilian Reals, by the National Social Development
Bank (Banco Nacional de Desenvolvimento Social – BNDES) and the
Bank of Brazil.
About TRIP Linhas Aereas
After over ten years in operation in Brazil, TRIP is now the
largest regional airline in the country, as well as in South
America, serving the most cities with the biggest fleet of
regional aircraft. It is controlled by the Caprioli and Águia
Branca groups, both of which have a long history of
passenger transportation, solid results, and sustained growth.
Today, one of TRIP’s investors is U.S.’s SkyWest, Inc., the
largest regional airline in the world, with 450 aircraft, which
acquired a 20% share.
About Embraer
Headquartered in Brazil, Empresa Brasileira de Aeronautica SA
(Embraer) -- http://www.embraer.com–- is a company engaged in the
manufacture of aircrafts for commercial aviation, executive jet
and defense and government purposes. The Company has developed a
line of executive jets based on one of its regional jet platforms
and launched executive jets in the entry-level, light, ultra-large
and mid-light/mid-size categories, the Phenom 100/300 family, the
Lineage 1000 and the Legacy 450/500 family, respectively. The
Company supplies defense aircraft for the Brazilian Air Force
based on number of aircraft sold, and sells aircraft to military
forces in Europe, Asia and Latin America. In July 2008, the
Company acquired a 40% interest owned by Liebherr Aerospace SAS in
ELEB–Equipamentos Ltda (ELEB). ELEB is an aerospace system and
component manufacturer, and its products include landing gear
systems, hydraulics and electro-mechanical sub-assemblies, such as
actuators, valves, accumulators and pylons.
* * *
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2009, Bloomberg News said Embraer will lay off around
4,200 workers, which represents 20% of its 21,362 employees, and
reduced its 2009 revenue forecast by 13% due to the global
recession.
LEAR CORP: Working on Prepackaged Bankruptcy in U.S.
----------------------------------------------------
Lear Corp. is working on a prepackaged bankruptcy, sources told
Dow Jones Newswires.
Lear is facing a US$38 million interest payment on two bonds
Tuesday. Lear may file for a traditional-style bankruptcy if a
prepackaged bankruptcy deal isn't reached, Dow Jones said.
Craig Trudell and Lauren Coleman at Bloomberg News report, citing
a person familiar with the matter, said Lear may file for
bankruptcy protection as early as June 29 and no later than
July 1.
Current lenders JPMorgan Chase & Co. reportedly will provide
debtor-in-possession financing.
The Troubled Company Reporter on June 26, 2009, said Stroock &
Stroock & Lavan LLP will represent the bondholders; and Simpson
Tchacher & Bartlett LLP will represent creditors. Investment bank
Miller Buckfire & Co. is giving Lear Corp. advice.
As reported by the TCR on June 3, 2009, Lear did not make the
US$38 million semi-annual interest payments due on June 1, 2009,
with respect to its 8.50% senior notes due 2013, and 8.75% senior
notes due 2016. The Company utilized the 30-day grace period
applicable to the interest payments, while it continues
discussions of a possible capital restructuring with its lenders
and certain other parties, according to Matthew J. Simoncini,
senior vice president and chief financial officer of the company.
Under the applicable indentures relating to the senior notes, the
use of the 30-day grace period does not constitute a default that
permits acceleration of the senior notes or any other
indebtedness, Mr. Simoncini said.
On May 13, 2009, the Company entered into an amendment and waiver
under its primary credit facility, wherein the waiver of covenant
defaults under the primary credit facility would terminate if the
Company were to make any payments with respect to the senior
notes. A full-text copy of the second amendment and waiver is
available for free at http://ResearchArchives.com/t/s?3a6e
About Lear Corporation
Based in Southfield, Michigan, Lear Corporation --
http://www.lear.com/-- is one of the world's leading suppliers of
automotive seating systems, electrical distribution systems and
electronic products. The Company's products are designed,
engineered and manufactured by a diverse team of 80,000 employees
at 210 facilities in 36 countries. Lear is traded on the New York
Stock Exchange under the symbol [LEA]. The company has operations
in San Paulo, Brazil.
* * *
Lear had approximatelyUS$1.2 billion in cash and cash equivalents
as of April 4, 2009, as compared to approximately US$1.6 billion
as of December 31, 2008. The decline reflects negative free cash
flow in the first quarter, as well as the termination of an
accounts receivable factoring facility in Europe. Lear had total
assets of US$6.4 billion, current liabilities ofUS$4.4 billion and
long-term liabilities of US$2.0 billion, resulting in US$41.4
million in stockholders' deficit at April 4, 2009.
ODEBRETCH: US$850 Million 10-Year Project Loan Gains Momentum
-------------------------------------------------------------
Construtora Norberto Odebrecht's US$850 million 10-year project
loan, which is still a way from being wrapped up, is gaining
momentum as more banks agree to take tickets in the jumbo
facility, LatinFrance reports.
According to the report, once the company agreed to flex pricing
to 340bp over Libor from 300bp in mid-May, lenders became more
open to participating.
LatinFrance says those likely to be on the final list include:
-- HSBC,
-- Calyon,
-- France’s CIC,
-- Espirito Santo Investment,
-- ING,
-- Portugal’s Caixa Geral de Depositos, and
-- Norwegian commercial lenders, NIBC and DnB
Nor. Banco do Brasil
BNP Paribas, SocGen and Santander are leading the deal, which
steps up to 415bp over Libor in the final year, the report says.
The report notes another US$450 million in ECA financing from Giek
and Kexim is also being provided.
About Odebrecht
Construtora Norberto Odebrecht SA is a Latin American
engineering and construction company fully owned by the
Odebrecht Group, one of the 10 largest Brazilian private groups.
Construtora Norberto is the world's largest builder of
hydroelectric plants, of sanitary and storm sewers, water
treatment and desalination plants, transmission lines and
aqueducts. The Group's main businesses are heavy engineering
and construction based in Rio de Janeiro, Brazil, and Braskem
S.A., its chemicals/petrochemicals company, based in Sao Paulo,
Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 2, 2009, Standard & Poor's Ratings Services assigned a 'BB'
rating to the proposed US$150 million, five-year senior unsecured
notes to be issued by Odebrecht Finance Ltd. The notes will count
on an unconditional and irrevocable guarantee by Brazil-based
heavy engineering and construction company Construtora Norberto
Odebrecht S.A. (CNO; BB/Stable/--).
PROPEX INC: Committee Drops Complaint Against BNP Paribas
---------------------------------------------------------
At the behest of the official committee of unsecured creditors in
Propex Inc.'s case, the U.S. Bankruptcy Court for the Eastern
District of Tennessee dismissed the adversary proceeding commenced
by the Committee against BNP Paribas Securities Corp. and certain
of the Debtors' prepetition lenders. The Committee sought the
dismissal in light of the Court-approved stipulation it entered
into with the Debtors, BNP Paribas and Houlihan Lokey & Zukin Inc.
for the resolution of the Debtors' prepetition secured
indebtedness to BNP Paribas and the Prepetition Lenders.
The Committee sued BNP Paribas and the Prepetition Lenders on
September 23, 2008, challenging the validity of certain liens the
Lenders held under the Prepetition Credit Agreement.
A recently approved stipulation of the parties contemplate the
dismissal of the Committee Complaint versus BNP Paribas, the
allowance of a claim to the Prepetition Lenders equal to the
aggregate prepetition loan of the Debtors of about US$230 million,
and the consent of the Prepetition Lenders to the allocation of
the certain funds and net cash proceeds in the possession of the
Debtors' estates. Under the stipulation, the Prepetition Lenders
also waive any claim arising from adequate protection liens and
claims.
About Propex Inc.
Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber. It also produces
primary and secondary carpet backing. Propex operates in North
America, Europe, and Brazil.
The company and its debtor-affiliates filed for Chapter 11
protection on January 18, 2008 (Bankr. E.D. Tenn. Case No.
08-10249). The Debtors selected Edward L. Ripley, Esq., Henry J.
Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston,
Texas, to represent them. The Official Committee of Unsecured
Creditors tapped Ira S. Dizengoff, Esq., at Akin Gump Strauss
Hauer & Feld, LLP, in New York, to be its counsel.
Propex Inc., and its affiliates delivered to the Court a Joint
Plan of Reorganization and Disclosure Statement on October 29,
2008.
As of June 29, 2008, the Debtors' balance sheet showed total
assets of US$562,700,000, and total debts of US$551,700,000.
Bankruptcy Creditors' Service, Inc., publishes Propex Bankruptcy
News. The newsletter tracks the chapter 11 proceedings
undertaken by Propex Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
==========================
C A Y M A N I S L A N D S
==========================
CVI GVF: Creditors' Proofs of Debt Due on July 14
-------------------------------------------------
The creditors of CVI GVF SPC are required to file their proofs of
debt by July 14, 2009, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 10, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
GLENVIEW CAPITAL: Creditors' Proofs of Debt Due on July 14
----------------------------------------------------------
The creditors of Glenview Capital SPC are required to file their
proofs of debt by July 14, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 10, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
KEPCO CAYMAN: Creditors' Proofs of Debt Due on July 23
------------------------------------------------------
The creditors of Kepco Cayman Company Limited are required to file
their proofs of debt by July 23, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 8, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
KOROKAN FUND: Creditors' Proofs of Debt Due on July 23
------------------------------------------------------
The creditors of Korokan Fund Limited are required to file their
proofs of debt by July 23, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 12, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
MEMORIAL FUND: Creditors' Proofs of Debt Due on July 23
-------------------------------------------------------
The creditors of Memorial Fund Limited are required to file their
proofs of debt by July 23, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 11, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
OHCAF (OFFSHORE): Creditors' Proofs of Debt Due on July 14
----------------------------------------------------------
The creditors of OHCAF (Offshore) SPC are required to file their
proofs of debt by July 14, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 10, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
OHCAF (ONSHORE): Creditors' Proofs of Debt Due on July 14
---------------------------------------------------------
The creditors of OHCAF (Onshore) SPC are required to file their
proofs of debt by July 14, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 10, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
ORIENT FUNDING: Creditors' Proofs of Debt Due on July 22
--------------------------------------------------------
The creditors of Orient Funding II Company Limited are required to
file their proofs of debt by July 22, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 2, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
R-ONE HOLDING: Creditors' Proofs of Debt Due on July 23
-------------------------------------------------------
The creditors of R-One Holding Ltd. are required to file their
proofs of debt by July 23, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 9, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
SANDLER CAPITAL: Creditors' Proofs of Debt Due on July 23
---------------------------------------------------------
The creditors of Sandler Capital SPC are required to file their
proofs of debt by July 23, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 10, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
---------------------------------------------------------
The creditors of Starts (Cayman) Limited 2005-2 are required to
file their proofs of debt by July 22, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 29, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
---------------------------------------------------------
The creditors of Starts (Cayman) Limited 2004-4 are required to
file their proofs of debt by July 22, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 29, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
---------------------------------------------------------
The creditors of Starts (Cayman) Limited 2003-3 are required to
file their proofs of debt by July 22, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 29, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
---------------------------------------------------------
The creditors of Starts (Cayman) Limited 2003-2 are required to
file their proofs of debt by July 22, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 29, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
STARTS (CAYMAN): Creditors' Proofs of Debt Due on July 22
---------------------------------------------------------
The creditors of Starts (Cayman) Limited 2003-1 are required to
file their proofs of debt by July 22, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 29, 2009.
The company's liquidators are:
Victor Murray
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102, Cayman Islands
=========
C H I L E
=========
AES: Chile Court Revokes Plant Permit Given by Regulator to Unit
----------------------------------------------------------------
The Supreme Court of Chile invalidated an environmental permit
granted by the Chilean regulatory authorities for the Campiche
thermal power plant, a 270 MW coal plant located in Ventanas,
Chile (Campiche). The AES Corporation indirectly owns a 71%
interest in Campiche through its subsidiary AES Gener (Gener), the
second largest generator of electricity in Chile.
As a result of the Supreme Court's ruling against the local
permitting authority, Gener is stopping work on Campiche, which
was previously expected to commence commercial operations in the
second quarter of 2011. Construction on the project would resume
when a solution has been implemented which complies with all
applicable laws.
AES issued financial guidance for the years 2009-2011 on May 27,
2009. If the Campiche project is delayed, AES does not anticipate
that the delay would have a material affect on its previously-
issued guidance. However, if Gener is unable to complete the
project, AES may be required to record a non-cash impairment of
Campiche, which could have a material impact on GAAP earnings in
the period in which it is recorded. AES does not anticipate that
any other previously-disclosed guidance would be materially
affected if Gener cannot complete the project.
The 270 MW Campiche plant is one of 26 projects in AES' 3,500 MW
construction program.
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-.
===============
D O M I N I C A
===============
MAP FINANCIAL: Recurring Losses Cues Going Concern Doubt
--------------------------------------------------------
Map Financial Group, Inc., reported a net loss of US$121,880 on
revenues of US$415,756 for the three months ended March 31, 2009.
It reported US$2,047,825 in total assets and US$2,388,597 in total
liabilities, all current, resulting in US$340,772 in stockholders'
deficit.
Map Financial notes it has incurred recurring losses from
operations, and as of March 31, 2009, an accumulated deficit of
US$373,502, the Company's current liabilities exceeded its current
assets by US$608,830 and its total assets by US$340,772.
According to the Company, these factors raise substantial doubt
about the Company's ability to continue as a going concern.
"Over the past year the Company's growth has been funded mainly by
our revolving credit agreement. The Company expects that it will
need to raise substantial additional capital investment to
accomplish its business plan over the next several years. In
addition, the Company may wish to selectively pursue possible
acquisitions of businesses, technologies or products complementary
to those of the Company in the future in order to expand its
presence in the marketplace and achieve operating efficiencies.
However there can be no assurance that these objectives will be
achieved," Map Financial explains.
The Company's subsidiaries entered into a master loan agreement
with MapCash Management, Ltd. in the amount of US$10,000,000.
Advances and any unpaid accrued interest under the terms of the
agreement are due and payable on demand. Interest is charged at a
rate of 15% per annum which is due and payable on the first day of
each January, April, July, and October. The proceeds of the loan
shall be used solely for its working capital needs. On March 5,
2009 the agreement was amended to include a provision indicating
the note will be due on July 10, 2010.
Map Financial Group, Inc. was incorporated under the laws of the
State of Nevada on June 27, 2008, to act as a holding company for
five indirect, wholly owned operating subsidiaries that provide
micro-lending services in the Caribbean. Through the Operating
Subsidiaries, the Company offers short term micro-loans to the
employees of various governmental agencies and private companies
in the Commonwealth of Dominica, Antigua and Barbuda, St. Lucia,
St. Vincent and the Grenadines and Grenada.
Map Financial Group's wholly owned subsidiary is FastCash
International Limited, and its wholly owned subsidiaries are
FastCash International Limited: Financial Services Inc. located in
the Commonwealth of Dominica; FastCash (St. Lucia) Ltd.; FastCash
(Antigua) Ltd; FastCash Ltd (Grenada); Cash Express Ltd (St.
Vincent).
METALDYNE CORP: Taps Foley as Attys. for U.S. Bankr. Case
---------------------------------------------------------
Metaldyne Corp. and its affiliates seek permission from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Foley and Lardner LLP as conflicts and special counsel.
Foley is already familiar with the Debtors' business. Foley has
represented the Debtors in numerous legal matters over the last
several years in nearly all aspects of their businesses.
In the Chapter 11 cases, Foley will handle matters which are not
appropriately handled by general bankruptcy counsel because of a
potential conflict of interest or, alternatively, which can be
more efficiently handled by Foley as the Debtors or general
bankruptcy counsel may request.
The Debtors may seek to utilize Foley's services as special
counsel with respect to any customer-related issues that may arise
in the Chapter 11 cases. Because Foley has substantial experience
with certain of the Debtors' customers, and particularly the North
American original equipment manufacturers, which will fund the
debtor-in-possession financing facility, Foley's services, if
utilized, will be critical to the Debtors' reorganization and any
issues that arise with respect to that facility.
Foley's professionals who will provide work in the Chapter 11
cases are:
Hourly Rate
-----------
Judy A. O'Neill, partner US$675
Victor A. Vilaplana, partner $600
Joanne Lee, bankruptcy counsel $410
Robert Nederhood, corporate $305
Olya Petukhova, bankruptcy counsel $420
Gary Steinbauer, litigation $265
Gregory M. Yatooma, corporate $320
Judy A. O'Neill says the firm is a "disinterested person" as that
term is defined in 11 U.S.C. Sec. 101(14).
About Metaldyne Corporation
Headquartered in Plymouth, Michigan, Metaldyne Corporation --
http://www.metaldyne.com/-- is a wholly owned subsidiary of Asahi
Tec, a Shizuoka, Japan-based chassis and powertrain component
supplier in the passenger car/light truck and medium/heavy truck
segments. Asahi Tec is listed on the Tokyo Stock Exchange.
Metaldyne is a global designer and supplier of metal based
components, assemblies and modules for transportation related
powertrain and chassis applications including engine,
transmission/transfer case, wheel end, and suspension, axle and
driveline, and noise and vibration control products to the motor
vehicle industry.
On January 11, 2007, in connection with a plan of merger, Asahi
Tee Corporation in Japan acquired the shares of Metaldyne. On the
same date, Asahi Tee contributed those shares to Metaldyne
Holdings, and Asahi Tee thereby became the indirect parent of
Metaldyne and its other units. RHJ International S.A. of Belgium
now holds approximately 60.1% of the outstanding capital stock of
Asahi Tec.
The Company own 23 different properties, including 14 domestic
manufacturing facilities in six states, and more than 10
manufacturing facilities North America, Europe, South America and
Asia.
Metaldyne Corporation aka MascoTech, Inc., aka MascoTech Harbor,
Inc., Riverside Acquisition Corporation and Metaldyne Subsidiary
Inc. and its affiliates filed for Chapter 11 on May 27, 2009
(Bankr. S. D. NY Lead Case No. 09-13412). The filing did not
include the company's non-U.S. entities or operations. Richard H.
Engman, Esq., at Jones Day represents the Debtors in their
restructuring efforts. Judy A. O'Neill, Esq., at Foley & Lardner
LLP serves as conflicts counsel; Lazard Freres & Co. LLC and
AlixPartners LLP as financial advisors; and BMC Group Inc. as
claims agent. For the fiscal year ended March 29, 2009, the
company recorded annual revenues of approximately US$1.32 billion.
As of March 29, 2009, utilizing book values, the company had
assets of approximately US$977 million and liabilities of
US$927 million.
===================================
D O M I N I C A N R E P U B L I C
===================================
BRITISH AIRWAYS: Launches New Route to Punta Cana
-------------------------------------------------
British Airways Plc is launching new twice-weekly flights to Punta
Cana in the Dominican Republic and Montego Bay in Jamaica, The
Dominican Today reports.
According to the report, the new routes start October 2009 with
the airline also increasing services to other Caribbean favorites.
British Airways Head of Sales, the report notes, said: the routes
are "popular destinations with our customers and it's due to
demand that we're increasing the number of flights to the region."
About British Airways
Headquartered in Harmondsworth, England, British Airways Plc
(LON:BAY) –- http://www.ba.com/-- is engaged in the operation of
international and domestic scheduled air services for the carriage
of passengers, freight and mail, and the provision of ancillary
services. The Company's principal place of business is Heathrow.
The Company also operates a worldwide air cargo business with its
scheduled passenger services. The Company operates international
scheduled airline route networks, comprising some 300 destinations
at March 31, 2008. During the fiscal year ended March 31, 2008
(fiscal 2008), British Airways carried more than 33 million
passengers. It carried 805,000 tons of cargo to destinations in
Europe, the Americas and worldwide. At March 31, 2008, it had 245
aircraft in service. In July 2008, British Airways plc completed
the purchase of French airline L'Avion.
* * *
As of June 18, 2009, the company continues to carry Moody's Ba2 LT
Corp Family and Probability of Default ratings. The company also
continues to carry Standard and Poor's BB LT Issuer Credit
Ratings.
TRICOM SA: Plan Solicitation Period Extended Until August 31
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
has extended Tricom S.A., et al.'s exclusive period to solicit and
obtain acceptances of their first amended prepackaged joint plan
of reorganization, as amended, until August 31, 2009.
A full-text copy of the disclosure statement relating to the
Debtor's second amended prepackaged joint plan of reorganization
is available at http://bankrupt.com/misc/Tricom.2ndamendedDS.pdf
As reported in the Troubled Company Reporter on June 10, 2009, two
banks filed objections to the approval of Tricom SA's
disclosure statement with respect to its first amended plan,
saying that the disclosure statement fails to satisfy the
"adequate information" requirement of Section 1125 of the
Bankruptcy Code.
Banco Multiple Leon, S.A., with asserted claims of not less than
US$166,019,348, said that the amended plan and disclosure
statement do not accurately set forth all of the terms and
conditions of the Banco Leon Settlement being discussed between
the parties.
On the other hand, Richard E. L. Fogerty and G. James Cleaver, the
joint official liquidators and recognized foreign representatives
of Bancredit Cayman Limited (in official liquidation), the debtor
in a Chapter 15 case in the U.S. Bankruptcy Court for the Southern
District of New York, said that the Debtors' first amended plan
retains many fatal flaws of the original pre-packaged plan and
that the disclosure statement is inadequate in terms of describing
said flaws. The plan, Bancredit said, still favors the Debtors'
existing insiders GFN Parties, former chairman and CEO Manuel
Arturo Pellerano Pena, and other affiliated creditors. Yet,
Bancredit added, the disclosure statement fails to disclose
information on the relationships among these insiders. Even more
importantly, Bancredit related that Mr. Pellerano has filed
indemnification claims against each Debtor, which, if not
otherwise provided for, would present a seemingly insurmountable
impediment to the plan's feasibility.
About Tricom S.A.
Tricom, S.A., was incorporated in the Dominican Republic on
January 25, 1988, as a Sociedad Anonima. Tricom is one of the
pre-eminent full service communications services providers in
the Dominican Republic. Headquartered in Santo Domingo, Tricom
offers local, long distance, and mobile telephone services,
cable television and broadband data transmission and Internet
services, which are provided to more than 729,000 customers.
Tricom's wireless network covers about 90% of the Dominican
Republic's population. Tricom's local service network is 100%
digital. The company also owns interests in undersea fiber-
optic cable networks that connect and transmit telecommunications
signals between Central America, the Caribbean, the United States
and Europe.
Tricom USA, Inc., a wholly owned subsidiary of Tricom, was
incorporated in Delaware in 1992, and at that time was known as
Domtel Communications. A name change was effected in 1997 and
Domtel Communications formally became Tricom USA, Inc. Tricom USA
originates, transports and terminates international long-distance
traffic using switching stations and other telecommunications
equipment located in New York and Florida.
Tricom S.A. and its U.S. affiliates filed for Chapter 11
protection on February 29, 2008 (Bankr. S.D.N.Y. Case No.
08-10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP,
in New York City, represent the Debtors. When the Debtors'
filed for protection from their creditors, they listed total
assets of US$327,600,000 and total debts of US$764,600,000.
===============
C O L O M B I A
===============
ECOPETROL SA: To Increase This Year's Investments to US$7 Billion
-----------------------------------------------------------------
Colombia-based Ecopetrol S.A. plans to increase its investment
plan budget to US$7 billion this year, about US$780 million more
than originally planned, mainly through more acquisitions, Inti
Landauro of Dow Jones Newswires reports, citing Company Chief
Excecutive Officer Javier Gutierrez. The report recalls
originally, the company had announced a US$6.22 billion investment
plan for 2009, which included about US$870 million in
acquisitions.
According to the report, so far this year, Ecopetrol has spent
about US$2 billion to take over other firms. The company acquired
these assets:
-- 50% of Peru's Petrotech Peruana SA for
US$450 million;
-- a 51% stake in the Cartagena refinery from Swiss
commodity company Glencore International
AG for US$549 million;
-- the Colombian unit of France's Etablissements
Maurel et Prom for US$748 million; and
-- a stake in an oil pipeline from Enbridge Inc.
for US$418 million.
Mr. Gutierrez, the report relates, said the company is now
consolidating the acquisitions.
DJ Newswires notes Mr. Gutierrez said Ecopetrol will spend less on
other areas such as refining as a result of the acquisition of
Glencore's stake in the plant. The report relates Mr. Gutierrez
said his company doesn't seek a new partner to replace Glencore
and reiterated the board is considering raising capital on the
Colombian stock market through listing the shares of the refinery.
Ecopetrol will also use part of the cash on the books of the
companies it acquired to invest in exploration and production, the
report says.
Over the next decade, the report notes Ecopetrol plans to invest
US$2.5 billion with its South Korean partner, state-run Korea
National Oil Corp., in Petrotech to boost the asset's output to
50,000 barrels a day from 13,000 barrels. DJ Newswires relates
Ecopetrol will also spend US$2 billion in increasing the capacity
of Hocol SA, the recently acquired unit of Maurel et Prom, to
boost its output to about 50, 000 barrels of oil equivalent a day
from 27,000.
In addition, DJ newswires says the company also plans to boost its
production to one million barrels of oil equivalent a day in 2015,
up from 447,000 barrels a day in 2008 and 482,000 barrels a day
now.
Ecopetrol, the report adds, will keep on boosting its production
in Colombia and will add production from Petrotech and Hocol.
Moreover, DJ Newswires dicloses that the concession contract
signed by BP PLC (BP) and France's Total SA (TOT) to operate the
Cusiana-Cupiagua fields establishes that those companies will have
to start handing over the stake they own in the operations to
Ecopetrol in mid-2010. The report relates the stake transfer will
mean a net production increase of 21,000 barrels of crude a day
for Ecopetrol starting in July 2010.
About Ecopetrol S.A.
Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest
company in Colombia as measured by revenue, profit, assets and
shareholders' equity. The company is Colombia's only vertically
integrated crude oil and natural gas company with operations in
Colombia and overseas. Ecopetrol is one of the 40 largest
petroleum companies in the world and one of the four principal
petroleum companies in Latin America. It is majority owned by the
Republic of Colombia and its shares trade on the Bolsa de Valores
de Colombia S.A. (BVC) under the symbol ECOPETROL. The company
divides its operations into four business segments that include
exploration and production; transportation; refining; and
marketing of crude oil, natural gas and refined-products.
* * *
As of June 19, 2009, the company continues to carry Fitch Ratings'
BB+ foreign currency issuer default ratings.
=============
J A M A I C A
=============
AIR JAMAICA: Adds Two Flights to Orlando Route
----------------------------------------------
Jamaica-based Air Jamaica Limited has added two more flights to
its Orlando schedule, which totals all Jamaica and Orlando flights
to seven, RadioJamaica reports.
According to the report, the flights also provide connections to
Kingston.
Air Jamaica's new summer schedule has 246 weekly flights to 13
destinations.
The ariline's service is between:
-- Jamaica and Toronto,
-- New York's JFK,
-- Chicago's O'Hare,
-- Baltimore,
-- Philadelphia,
-- Orlando,
-- Fort Lauderdale,
-- Havana,
-- Curacao and Nassau, and
-- services between New York and
Barbados and New York and Grenada.
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-.
JUCT: Embarks Ticketing Campaign on Revenue Loss
------------------------------------------------
Jamaica Urban Transit Company (JUTC) was forced to embark on a
ticketing campaign to enforce regulations governing the ticketing
requirements of commuters, after it has incurred revenue losses,
RadioJamaica reports.
According to the report, the company said it will be informing
commuters through a series of sensitization efforts.
The bus company, the report relates, said it has lost considerable
revenue through:
-- issuance of concessionary US$15 tickets to
passengers who are not disabled, elderly or
children; and
-- some cases ticket stubs are issued to passengers
instead of genuine tickets.
The report notes the passengers are advised to keep there tickets
for inspections. The report relates both passengers and bus
operators can be fined, around $20,000 to $50,000, if they are in
breach of the ticketing requirements.
About JUTC
Jamaica Urban Transit Company (JUTC) was established in 1998 to
provide a centrally managed state-of-the-art public bus service.
The government invested US$6 billion aiming to have an efficient
transport system and for the Jamaican people.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2009, Radio Jamaica News said the Jamaican cabinet
approved the granting of a government guarantee for Jamaica Urban
Transit Company to secure a US$425 million loan facility from the
Bank of Nova Scotia. The fund, the report related, will be used
to restructure the bus company's increasing debts.
According to Radio Jamaica, JUTC has defaulted on loan obligations
with RBTT Bank and Petrocaribe Development Fund, among others, due
to cash flow problems.
The Ministry of Information, as cited by Radio Jamaica, stated
that the JUTC operates an overdraft facility of US$520 million at
the National Commercial Bank which expires this month. The report
noted that the Ministry said this facility is consistently
utilised at the upper limit and, on occasions, exceeds the limit
giving rise to the imposition of penalty charges above 43%.
PETROJAM LIMITED: Minister to Explain US$7-Billion Loss
-------------------------------------------------------
Energy Minister James Robertson said he will provide an
explanation next week for the US$7-billion losses racked up by
state-owned oil refinery Petrojam Limited, RadioJamaica reports.
The report relates the minister statement came after Opposition
Phillip Paulwell's inquiries regarding the loss reported by the
refinery.
According to the report, Mr. Paulwell said the Government's
explanation that a significant portion of the losses was due to a
sharp fall in oil prices did not add up. The report relates
Mr. Paulwell said the previous government had left Petrojam in a
profitable state and questioned whether there was a link between
the losses and the E10 project.
About Petrojam Limited
Petrojam Limited -- http://www.petrojam.com-- Jamaica's only
petroleum refinery, is a subsidiary of the Petroleum Corporation
of Jamaica (PCJ), a statutory body created and wholly owned by the
Government of Jamaica. Petrojam was established in 1982 when the
Government of Jamaica purchased the Esso Kingston Refinery, which
had been built, and operated by Esso since March 1964.
Petrojam supplies Jamaica with a full range of domestic,
transportation and industrial petroleum products. In addition,
approximately 10% of total sales volume is exported. Export sales
in 2007 exceeded US$416 Million.
* JAMAICA: Bauxite & Mining Sector Trading Shows 14% Drop
---------------------------------------------------------
Jamaica's bauxite and mining sector showed a downward movement of
almost 14% between the last quarter of 2008 and the end of the
first financial quarter of 2009, RadioJamaica reports.
According to the report, the latest Producer Price Index from the
Statistical Institute of Jamaica (STATIN), shows a 13.8% drop
during that period, while for the fiscal year April 2008 to March
2009, sector prices fell by almost 30%.
In March this year, the report recalls, output prices for the
producers in the Mining and Quarrying sector rose marginally by
4%, led by the Bauxite Mining and Alumina processing industry.
RadioJamaica says the Manufacturing sector on the other hand,
recorded upward movement of 1.7% in March, following an increase
of 3.9% in April.
March 2008 to March 2009 showed an increase in producer prices of
16% for the manufacturing industry, the report adds.
* * *
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
===========
CIUDADVICTORIA: Moody's Assigns 'Ba2' Global Scale Rating
---------------------------------------------------------
Moody's assigned first time issuer ratings of A2.mx (Mexican
National Scale) and Ba2 (Global Scale) to the Municipality of
Ciudad Victoria, Tamaulipas. The ratings reflect the
municipality's low, albeit improving operating balances, offset by
positive consolidated results thanks to significant earmarked
revenues. The ratings also take into account Victoria's low net
direct and indirect debt to operating revenues ratio and absence
of contingent liabilities offset by a narrow, albeit positive
liquidity position.
Ciudad Victoria's gross operating balance for the period 2004-2008
has been improving, but remains weak. Victoria's operating
balance has improved from a peak of -18.3% of operating revenues
in 2004 to 1.8% in 2008, due to the positive behavior of operating
revenues and expense controls. For the period 2004-2008,
operating revenues have increased at a compound annual growth rate
(CAGR) of 12.8%, while current expenditures increased at a CAGR of
7.7%.
On a consolidated basis, Ciudad Victoria's financial performance
has remained positive over the last five years thanks to strong
capital and earmarked transfers from state and federal
governments. Victoria's financial performance featured four cash
financing surpluses that fluctuated from 1.6% to a high 7.2% of
total revenues.
The municipality's debt practices have been conservative during
the last five years. Total outstanding debt at the end of 2008
reached MXN 3.6 million, 0.8% of operating revenues. Although the
municipality has not yet obtained authorization from the state's
congress, it has plans to contract additional debt during 2009.
The maximum amount the municipality is planning to borrow is MXN
50 million (10.9% of operating revenues in 2008), which would
increase net direct and indirect debt to operating revenues ratio
to 10.5% by the end of 2009.
Due to its role as seat of the state government, Ciudad Victoria
benefits from high quality water, road and electricity systems.
Because of this, Victoria's infrastructure needs are lower than
that observed in other Mexican municipalities and are limited
mainly to street repairs. This constitutes a credit strength as
Moody's anticipate lower capital pressures compared to other Ba
rated municipalities.
HAYES LEMMERZ: Court Establishes July 27 General Bar Date
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has set
July 27, 2009, at 5:00 p.m. (prevailing Eastern Time) as the
general bar date for the filing of proofs of claim, including
Section 503(b)(9) claims, in Hayes Lemmerz International, Inc.,
and its debtor-affiliates' bankruptcy cases.
The governmental bar date is November 9, 2009, at 5:00 p.m.
(prevailing Eastern Time).
Proofs of claim must be delivered so as to be received on or
before the applicable bar date, at:
a) If by First-Class Mail:
The Garden City Group, In.
Attn: Hayes Lemmerz International, Inc.
P.O. Box 9000, #6531
Merrick, NY 11566-9000
b) If by Hand Delivery or Overnight Courier:
The Garden City Group, Inc.
Attn: Hayes Lemmerz International, Inc.
105 Maxess Road
Melville, NY 11747
About Hayes Lemmerz
Originally founded in 1908, Hayes Lemmerz International, Inc.
(NasdaqGM: HAYZ) is a worldwide producer of aluminum and steel
wheels for passenger cars and light trucks and of steel wheels for
commercial trucks and trailers. The Company is also a supplier of
automotive powertrain components. The Company has global
operations with 23 facilities, including business, sales offices
and manufacturing facilities, located in 12 countries around the
world. The Company sells products to every major North American,
Asian and European manufacturer of passenger cars and light trucks
and to commercial highway vehicle customers throughout the world.
The Company and certain affiliates filed for bankruptcy on
May 11, 2009 (Bankr. D. Del. Case No. 09-11655) after reaching
agreements with lenders holding a majority of the Company's
secured debt. The Company's principal bankruptcy attorneys are
Skadden, Arps, Slate, Meagher & Flom, LLP. Lazard Freres & Co.,
LLC, serves as the Company's financial advisors. AlixPartners,
LLP, serves as the Company's restructuring advisors. The Garden
City Group, Inc., serves as the Debtors' claims and notice agent.
As of January 31, 2009, the Debtors had total assets of
US$1,336,600,000 and total debts of US$1,405,200,000. This is the
Company's second trip to the bankruptcy court, dubbed a Chapter
22, which was precipitated by an unprecedented slowdown in
industry demand and a tightening of credit markets. The Company
plans to reduce its debt and restructure its balance sheet.
Hayes Lemmerz and its direct and indirect domestic subsidiaries
and one subsidiary in Mexico first filed for bankruptcy in
December 2001 before the U.S. Bankruptcy Court for the District of
Delaware. The Chapter 11 filings were precipitated by declining
market conditions and the Company's excessive debt burdens,
according to Mr. Clawson, who also served as chairman and chief
executive officer at that time. The Court confirmed the Company's
reorganization plan in May 2003, allowing the Company to exit
bankruptcy in June 2003. In accordance with the 2003 Plan,
approximately US$2.1 billion in pre-petition debt and other
liabilities were discharged. The Plan provided for holders of
prepetition secured claims to receive US$478.5 million in cash and
53.1% of the reorganized company common stock. Holders of senior
note claims were to receive US$13 million in cash and 44.9% of the
New Common Stock, and holders of general unsecured claims were to
receive 2% of the New Common Stock. Hayes Lemmerz' prior common
stock and securities were cancelled as of June 3, 2003.
OCULUS INNOVATIVE: Marcum LLP Raises Going Concern Doubt
--------------------------------------------------------
Marcum LLP in New York, in its audit report dated June 10, 2009,
said there is substantial doubt about the ability of Oculus
Innovative Sciences, Inc., to continue as a going concern.
The Company incurred net losses of US$17,656,000 for the year
ended March 31, 2009. At March 31, 2009, the Company had
US$5,447,000 in total assets, US$3,178,000 in total liabilities,
and US$108,482,000 in accumulated deficit. The Company had
working capital of US$1,263,000 as of March 31, 2009.
The Company needs to raise additional capital from external
sources to sustain its operations while continuing the longer term
efforts contemplated under its business plan. The Company expects
to continue incurring losses for the foreseeable future and must
raise additional capital to pursue its product development
initiatives, penetrate markets for the sale of its products and
continue as a going concern. The Company cannot provide any
assurance that it will raise additional capital.
Management believes that the Company has access to capital
resources through possible public or private equity offerings,
debt financings, corporate collaborations or other means; however,
the Company has not secured any commitment for new financing at
this time nor can it provide any assurance that new financing will
be available on commercially acceptable terms, if at all. If the
economic climate in the U.S. does not improve or continues to
deteriorate, the Company's ability to raise additional capital
could be negatively impacted. If the Company is unable to secure
additional capital, it may be required to curtail its research and
development initiatives and take additional measures to reduce
costs in order to conserve its cash in amounts sufficient to
sustain operations and meet it obligations. These measures could
cause significant delays in the Company's efforts to commercialize
its products in the United States, which is critical to the
realization of its business plan and the future operations of the
Company.
On April 1, 2008, the Company conducted a closing of 18,095 shares
of its common stock at a purchase price of US$5.25 per share, and
warrants to purchase an aggregate of 9,047 shares of common stock
at an exercise price of US$6.85 per share for gross proceeds of
US$95,000 (net proceeds of US$36,000 after deducting the placement
agent's commission and other offering expenses).
On February 6, 2009, the Company entered into Purchase Agreements
with a group of accredited investors whereby it raised
US$1,752,803 in gross proceeds (net proceeds of US$1,514,000 after
deducting the placement agent's commission and other offering
expenses) through a private placement of 1,499,411 shares.
On February 24, 2009, the Company entered into a Purchase
Agreement with Robert Burlingame, a director of the Company, and
an accredited investor. Pursuant to the terms of the Purchase
Agreement, the investors agreed to make a US$3,000,000 investment
in the Company. The investors paid US$1,000,000 (net proceeds of
US$948,000 after deducting offering expenses) for 854,701 shares
of common stock on February 24, 2009 and agreed to purchase
1,709,402 shares of common stock for US$2,000,000 no later than
August 1, 2009.
On June 1, 2009, the Company issued the remaining securities
related to the February 24, 2009 private placement. The issuance
comprised of an aggregate of 1,709,402 shares of common stock,
Series A Warrants to purchase an aggregate of 1,000,000 shares of
common stock and Series B Warrants to purchase an aggregate of
1,333,333 shares of common stock to the Investors pro rata to the
investment amount of each Investor. The Company received
US$2,000,000 in connection with this transaction.
The Company has used, or intends to use, the proceeds from the
offerings principally for general corporate purposes, including
working capital.
A full-text copy of the Company's annual report on Form 10-K is
available at no charge at http://ResearchArchives.com/t/s?3e4a
About Oculus Innovative Sciences
Oculus Innovative Sciences, Inc. -- http://www.oculusis.com/--
develops, manufactures and markets a family of products intended
to significantly reduce the need for antibiotics as it prevents
and treats infections in chronic and acute wounds while
simultaneously enhancing wound healing through modes of action
unrelated to the treatment of infection. Oculus Innovative
Sciences has two principal subsidiaries -- Oculus Technologies of
Mexico, S.A. de C.V., organized in Mexico, and Oculus Innovative
Sciences Netherlands, B.V., organized in the Netherlands. On
January 20, 2009, the Company dissolved its subsidiary, Oculus
Innovative Sciences Japan, KK, organized under Japanese law.
=======
P E R U
=======
ASARCO LLC: Seeks to Expand Barclays Role in Assets Sale
--------------------------------------------------------
ASARCO LLC seeks permission from the U.S. Bankruptcy Court for the
Southern District of Texas to expand, effective as of June 1,
2009, Barclays Capital Inc.'s role as its financial advisor and
investment banker in connection with the auction and potential
sale of all or a portion of the assets granted to the Debtors in
connection with the final judgment in the adversary complaint
commenced by ASARCO against Americas Mining Corporation on a
transfer dispute of certain stocks of Southern Peru Copper
Company, now known as Southern Copper Corporation, to AMC, entered
on April 14, 2009, by the U.S. District Court for the Southern
District of Texas, Brownsville Division.
In a separate filing, the Debtors inform the Court that they may
call on these individuals as witnesses during the hearing of the
application:
-- George M. Mack, managing director at Barclays Capital
-- Joseph F. Lapinsky, chief executive officer and president
of ASARCO LLC
-- Any witness called or designated by any other party
-- Any witness necessary to rebut the testimony of any witness
called or designated by any other party, or any evidence
presented or designated by any other party
For several weeks, ASARCO and its advisors have discussed and
evaluated various options for monetizing the SCC Judgment, Jack
L. Kinzie, Esq., at Baker Botts L.L.P., in Dallas, Texas, tells
the Court. He notes that most of the Debtors' creditors, many of
whom have not been paid on account of their claims for more than
six years, desire more cash and more certainty of cash payments
on the effective date of a plan of reorganization.
Pursuant to the parties' engagement letter, Barclays Capital has
recommended a two-step, stalking-horse auction process. The
auction process is intended to meet the Debtors' objectives by
potentially monetizing some or all of the SCC Judgment prior to
the Plan Effective Date, and spreading, or eliminating if the SCC
Judgment is sold as a whole, the inherent delay and appellate
risk among creditors and third-party strategic or financial
investors, Mr. Kinzie says.
The auction of the SCC Judgment will also facilitate a successful
reorganization of ASARCO and benefit the bankruptcy estates to
the extent that the outcome of the auction process may assist the
Court in the valuation of the judgment for confirmation purposes.
If sold as a whole, the SCC Judgment will be assigned to the
purchasers and the proceeds of the sale will be distributed to
creditors in accordance with the Debtors' Plan.
In connection with the SCC Sale Process, Barclays Capital will:
(a) assist ASARCO in analyzing and evaluating various
strategic and financial alternatives available with regard
to the SCC Judgment;
(b) assist ASARCO in connection with a potential sale of the
SCC Judgment;
(c) assist in coordinating potential investors' or purchasers'
due diligence efforts, including creating and maintaining
a data room;
(d) assist in evaluating proposals received from potential
purchasers of the SCC Judgment;
(e) assist ASARCO in negotiations with and related strategy
concerning potential purchasers of the SCC Judgment;
(f) assist ASARCO in developing bidding procedures for the
sale of the SCC Judgment, and assist ASARCO in obtaining
the Court's approval of the procedures;
(g) conduct any auction, as needed, as part of the SCC Sale
Process;
(h) participate in hearings before the Court with respect to
the matters concerning the SCC Sale Process upon which
Barclays Capital has provided advice; and
(i) provide expert witness testimony concerning the SCC Sale
Process.
Barclays Capital's Mark Shapiro, Gil Sanborn, Gary Matt and
George Mack will be leading the team of professionals working on
the contemplated services.
As set forth in the Engagement Letter, Barclays Capital will be
paid:
-- an initial retainer fee of US$1,000,000 payable in cash as
soon as possible following the Court's approval of the
application. A monthly retainer fee of US$150,000 will be
payable on the first business day of each calendar month
thereafter beginning July 1, 2009;
-- if, during the term of the engagement or for a period of 12
months following the effective date of the firm's
termination by ASARCO, other than for cause, a definitive
agreement to effect a sale of the SCC Judgment is entered
into by ASARCO and the sale is consummated, Barclays
Capital would be paid a successful sale fee equal to the
lesser of:
(i) US$6 million; and
(ii) a successful bid fee that would have been payable
pursuant to the Engagement Letter;
-- if, during the term of the engagement, one or more bona
fide offers are submitted to ASARCO prior to the effective
date of a Chapter 11 plan, but ASARCO does not enter into a
definitive sale agreement with respect to any of the Bona
Fide Offers, Barclays Capital will be paid a successful bid
fee equal to 2% of the aggregate amount of cash
consideration proposed in each of the Bona Fide Offers. In
no event will the Successful Bid Fee exceed US$6,000,000;
-- in no event will both the Successful Sale Fee and the
Successful Bid Fee be paid simultaneously; and
-- ASARCO will reimburse Barclays Capital for its reasonable
and duly documented out-of-pocket expenses incurred in
connection with the services Barclays Capital performs
under the Engagement Letter, regardless of whether a sale
of the SCC Judgment is consummated.
George M. Mack, a managing director at Barclays Capital, assures
the Court that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
In a supplemental affidavit submitted to the Court in connection
with the application, Mr. Mack reveals that:
-- Barclays Capital has recently been engaged by the Pension
Benefit Guaranty Corporation to provide investment banking
advisory services regarding matters unrelated to the
Debtors' bankruptcy cases. The PBGC is a member of
ASARCO's Official Committee of Unsecured Creditors;
-- In the summer of 2008, Oscar Pate, son of Judge Robert C.
Pate, the Future Claims Representative appointed in the
cases, was hired by Lehman Brothers, Inc., as an analyst in
its Investment Banking Division. In September 2008, as
part of Barclays Capital's acquisition of Lehman Brothers,
Inc., Oscar became an employee of Barclays Capital. Oscar
works in Barclays Capital's Houston office within the
Natural Resources group, and has no involvement in Barclays
Capital's activities in the Debtors' cases; and
-- Barclays Capital acted as Coordinating Bookrunner for a
US$7.5 billion credit facility for Glencore International AG,
the parent company of Glencore Ltd., a bidder in the 2008
auction which most recently submitted a non-binding
indicative offer for ASARCO's assets on April 21, 2009.
The Barclays Capital team members who worked on the
transaction are based out of the firm's European offices
and have no involvement in Barclays Capital's activities in
the cases.
AMC Objects
Americas Mining Corporation contends that the request to expand
the services of Barclays Capital does not meet the stringent
requirements of Section 328(a) of the Bankruptcy Code to allow
Barclays Capital's compensation to be different from what
previously approved by the Court. The application thinly veils
Barclays Capital's desire to renegotiate the economic terms of
its engagement with ASARCO, AMC alleges.
Section 328 only permits an economic modification, like the one
proposed by the application, at the conclusion of the engagement
and only if the original compensation is shown to be improvident
in light of developments not capable of being anticipated at the
time its terms were approved, Charles A. Beckham, Jr., Esq., at
Haynes and Boone, LLP, in Houston, Texas, points out.
The application should be denied because, in both purpose and
execution, it is rife with problems, Mr. Beckham argues. He adds
that the proposed terms and conditions of the application are
excessive and unreasonable in light of the services offered and
those already being provided by Barclays Capital.
About ASARCO LLC
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.
ASARCO LLC filed for Chapter 11 protection on August 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack
L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts
L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq.,
and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth,
P.C., represent the Debtor in its restructuring efforts. Lehman
Brothers Inc. provides the ASARCO with financial advisory services
and investment banking services. Paul M. Singer, Esq., James C.
McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give
legal advice to the Official Committee of Unsecured Creditors and
David J. Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.
When ASARCO LLC filed for protection from its creditors, it listed
US$600 million in total assets and US$1 billion in total debts.
ASARCO LLC has five affiliates that filed for Chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos.
05-20521 through 05-20525). They are Lac d'Amiante Du Quebec
Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company,
Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. Details
about their asbestos-driven Chapter 11 filings have appeared in
the Troubled Company Reporter since April 18, 2005.
Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-
21346) also filed for Chapter 11 protection, and ASARCO has asked
that the three subsidiary cases be jointly administered with its
Chapter 11 case. On October 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.
ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on December 12, 2006. (Bankr. S.D. Tex. Case No.
06-20774 to 06-20776).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
ASARCO LLC filed a plan of reorganization on July 31, 2008,
premised on the sale of the Debtors' assets to Sterlite USA for
US$2.6 billion. By October 2008, ASARCO LLC informed the Court
that Sterlite refused to close the proposed sale and thus, the
Original Plan could not be confirmed. The parties has since
renewed their purchase and sale agreement and ASARCO LLC has
obtained Court approval of a settlement and release contained in
the new PSA for the sale of the ASARCO assets for US$1.1 billion
in cash and a US$600 million note.
Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted its own plan which allows it to keep its equity
interest in ASARCO LLC by offering full payment to ASARCO's
creditors. AMC offered provide up to US$2.7 billion in cash and a
US$440 million guarantee to assure payment of all allowed creditor
claims, including payment of liabilities relating to asbestos and
environmental claims. AMC's plan is premised on the estimation of
the approximate allowed amount of the claims against ASARCO.
Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by ASARCO LLC and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
====================
P U E R T O R I C O
====================
BURLINGTON COAT: Fitch Affirms Issuer Default Rating at 'B-'
------------------------------------------------------------
Fitch Ratings has affirmed these ratings on Burlington Coat
Factory Warehouse Corp.:
-- Issuer Default Rating at 'B-';
-- US$800 million asset-based revolver at 'B+/RR1';
-- US$900 million term loan at 'B/RR3'.
In addition, Fitch has revised its ratings on these to reflect the
new issue rating definitions as of March 2009:
-- US$305 million senior unsecured notes revised to 'CC/RR6'
from 'CCC/RR6';
-- US$99 million senior discount notes revised to 'C/RR6' from
'CCC-/RR6'.
The company had approximately US$1.3 billion of debt outstanding
as of Feb. 28, 2009. The Rating Outlook has been revised to
Stable from Negative.
The Outlook revision reflects BCF's improving operating
performance, positive free cash flow generation and adequate
liquidity. The ratings continue to reflect BCF's solid brand
recognition as a discounter of apparel and home products with
significant geographic reach as well as the company's negative
comparable store sales, high leverage and intense competition in
the discounted apparel and home furnishings segments.
BCF is nationally recognized with 433 stores in 44 states and
Puerto Rico and US$3.5 billion in revenues in fiscal 2009 that
ended May 30, 2009. The company's business is highly seasonal
with approximately 50% of revenues occurring from September to
January. BCF's comparable store sales improved to -2.5% in fiscal
2009 from -5.2% in fiscal 2008 due to the company's value
offering, which is resonating well with customers in the current
environment, supported by ongoing initiatives to improve product
assortments, deliver values that fit within a good, better and
best pricing strategy and create a positive shopping experience.
However, the continued negative comparable store sales reflect the
ongoing challenging operating environment. Competition in the
discounted apparel and home furnishings segments remains fierce
and highly fragmented.
BCF's operating performance in the last 12 months ended Feb. 28,
2009 strengthened as a result of improvements in initial markups,
fewer markdowns and cost cutting efforts. LTM operating EBIT
margin increased 40 basis points to 2.2% compared to 1.8% in
fiscal 2008. This combined with debt paydown caused LTM leverage,
defined as total adjusted debt/EBITDAR, to decrease to 6.3 times
(x) from 6.9x in fiscal 2008. LTM interest coverage, defined as
EBITDAR/interest expense plus rent, improved slightly to 1.6x from
1.4x over the same period. Fitch anticipates comparable store
sales will remain in the negative low single-digit range in the
current operating environment. This will lead to fiscal 2010
credit metrics to be at similar levels as fiscal 2009.
Fitch expects BCF will have adequate liquidity to meet its near-
term capital and debt service requirements. The company's
$800 million credit facility, which is used for working capital
purposes, expires in May 2011 and Fitch expects the company will
remain within its covenants. There is no significant debt
maturity until 2013. In addition, there are no mandatory
redemption or sinking fund payments on the notes issued by the
company. However, the company is required to make a payment on
the term loan based on 50% of the available free cash flow
generated at the end of each fiscal year. BCF generated positive
free cash flow of US$72 million and had US$27 million of cash and
cash equivalents as well as approximately US$428 million of
availability under the revolver as of Feb. 28, 2009.
The Recovery Ratings reflect Fitch's recovery expectations in a
distressed scenario. Fitch's recovery analysis assumes an
enterprise value of approximately US$1 billion in a distressed
scenario. Applying this value across the capital structure
results in outstanding recovery prospects (91%-100%) for the
asset-based revolver, which resulted in a rating of 'B+/RR1'. The
asset-based revolver is secured by a pledge of inventory and
accounts receivable. The term loan is rated 'B/RR3', reflecting
good recovery prospects (51%-70%), and is secured by property.
The unsecured senior notes at the operating company level are
guaranteed by the holding company and its current and future
restricted subsidiaries.
These notes are revised to 'CC/RR6' from 'CCC/RR6', reflecting
poor recovery prospects (0%-10%). The unsecured senior discount
notes are structurally subordinated at the holding company level.
They are revised to 'C/RR6' from 'CCC-/RR6', reflecting poor
recovery prospects (0%-10%) in a distressed case and are one notch
below the senior notes.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------------ -------
ARGENTINA
SNIAFA SA-B SDAGF US 39681268 -2901931
SOC COMERCIAL PL CAD IX 547961024 -940552960
COMERCIAL PL-ADR SCPDS LI 547961024 -940552960
COMERCIAL PLAT-$ COMED AR 547961024 -940552960
IMPSAT FIBER NET 330902Q GR 535007008 -17165000
IMPSAT FIBER-$US IMPTD AR 535007008 -17165000
SOC COMERCIAL PL CADN SW 547961024 -940552960
COMERCIAL PL-C/E COMEC AR 547961024 -940552960
SOC COMERCIAL PL COME AR 547961024 -940552960
IMPSAT FIBER-C/E IMPTC AR 535007008 -17165000
SOC COMERCIAL PL SCDPF US 547961024 -940552960
IMPSAT FIBER NET XIMPT SM 535007008 -17165000
COMERCIAL PLA-BL COMEB AR 547961024 -940552960
IMPSAT FIBER NET IMPTQ US 535007008 -17165000
IMPSAT FIBER-BLK IMPTB AR 535007008 -17165000
SNIAFA SA SNIA AR 39681268 -2901931
SOC COMERCIAL PL CVVIF US 547961024 -940552960
SNIAFA SA-B SNIA5 AR 39681268 -2901931
IMPSAT FIBER-CED IMPT AR 535007008 -17165000
BRAZIL
PET MANG-RECEIPT RPMG10 BZ 152032000 -351539008
RIOSULENSE SA-PR RSUL4 BZ 116783000 -12607000
RIOSULENSE SA RSUL3 BZ 116783000 -12607000
PET MANG-RECEIPT RPMG9 BZ 152032000 -351539008
TELEBRAS-CM RCPT RCTB30 BZ 428644992 -2437000
PET MANG-RIGHTS RPMG2 BZ 152032000 -351539008
DOCAS IMBITUBA IMBION BZ 207240000 -25727000
TEKA-ADR TKTPY US 438540000 -564327040
STAROUP SA STARON BZ 59539000 -15562000
TEXTEIS RENAUX RENXPN BZ 99602000 -148587008
PET MANG-RIGHTS RPMG1 BZ 152032000 -351539008
TEXTEIS RENAUX RENXON BZ 99602000 -148587008
TELEBRAS-PF RCPT RCTB42 BZ 428644992 -2437000
TECEL S JOSE-PRF SJOS4 BZ 41412000 -42901000
GAZOLA-PREF GAZO4 BZ 27266214 -73665296
SCHLOSSER SA-PRF SCHPN BZ 23121000 -12383100
FERROVIA CEN-DVD VSPT12 BZ 2063975040 -97380000
TELEBRAS-RTS CMN RCTB1 BZ 428644992 -2437000
TEXTEIS RENA-RCT TXRX10 BZ 99602000 -148587008
BOMBRIL BMBBF US 467603008 -475305984
SANESALTO SNST3 BZ 47836610560 -1076702080
SANSUY SA-PREF B SNSYBN BZ 232096000 -106033000
TELEBRAS-ADR RTB US 428644992 -2437000
RIOSULENSE SA-PR RSULPN BZ 116783000 -12607000
SANSUY SNSY3 BZ 232096000 -106033000
TEC TOY SA-PREF TOYDF US 47540000 -18367000
SANSUY-PREF B SNSY6 BZ 232096000 -106033000
MINUPAR-PREF MNPR4 BZ 180171008 -40196000
CTM CITRUS-COM R CTPC1 BZ 79728000 -1381000
NOVA AMERICA SA NOVAON BZ 40955000 -353104000
NOVA AMERICA SA NOVA3B BZ 40955000 -353104000
CTM CITRUS-RCT P CTP6 BZ 79728000 -1381000
NOVA AMERICA-PRF NOVAPN BZ 40955000 -353104000
PARQUE TEM-RT CM PQTM1 BZ 135597008 -436259008
PARQUE TEM-RCT P PQTM10 BZ 135597008 -436259008
PARQUE TEM-DV CM PQT5 BZ 135597008 -436259008
GAZOLA SA GAZON BZ 27266214 -73665296
WETZEL SA-PREF MWELPN BZ 143358000 -9963000
TELEBRAS-RCT PRF TELB10 BZ 428644992 -2437000
FER C ATLANT VSPT3 BZ 2063975040 -97380000
MINUPAR SA-PREF MNPRPN BZ 180171008 -40196000
WETZEL SA-PREF MWET4 BZ 143358000 -9963000
TELEBRAS-ADR TBASY US 428644992 -2437000
NORDON METAL NORDON BZ 36158000 -33675000
NORDON MET-RTS NORD1 BZ 36158000 -33675000
NORDON MET NORD3 BZ 36158000 -33675000
TELEBRAS-CEDEA $ RCT4D AR 428644992 -2437000
TECEL S JOSE SJOS3 BZ 41412000 -42901000
TELEBRAS-CEDE BL RCT4B AR 428644992 -2437000
TELEBRAS-CED C/E RCT4C AR 428644992 -2437000
TELEBRAS-RTS PRF RCTB2 BZ 428644992 -2437000
TELEBRAS-CM RCPT RCTB32 BZ 428644992 -2437000
TELEBRAS-RCT RCTB33 BZ 428644992 -2437000
PET MANGUINH-PRF RPMG4 BZ 152032000 -351539008
TELEBRAS-CM RCPT RCTB31 BZ 428644992 -2437000
TECTOY-PREF TOYB4 BZ 47540000 -18367000
PROMAN PRMN3 BZ 24047000 -467000
PARQUE TEM-RT PF PQTM2 BZ 135597008 -436259008
HOPI HARI-PREF PQTM4 BZ 135597008 -436259008
TELEBRAS SA-RT TELB9 BZ 428644992 -2437000
SAUIPE SA PSEGON BZ 23632000 -17804000
TECTOY TOYB3 BZ 47540000 -18367000
SAUIPE PSEG3 BZ 23632000 -17804000
FABRICA RENAUX FTRX3 BZ 123567000 -72231000
TEC TOY SA-PF B TOYB6 BZ 47540000 -18367000
TECTOY SA-PREF TOYBPN BZ 47540000 -18367000
ARTHUR LANG-RT P ARLA2 BZ 34053000 -26011000
TECTOY-RCT ORD TOYB9 BZ 47540000 -18367000
CIMOB PART-PREF GAFP4 BZ 90471752 -77366408
MMX MINERACAO TRES3 BZ 2328652032 -101079000
RENAUXVIEW SA TXRX3 BZ 99602000 -148587008
CAFE BRASILIA SA CSBRON BZ 36476000 -1193384960
GAZOLA SA-PREF GAZPN BZ 27266214 -73665296
TEXTEIS RENAU-RT TXRX2 BZ 99602000 -148587008
TELEBRAS-ADR TBRAY GR 428644992 -2437000
TECTOY-PF-RTS5/6 TOYB11 BZ 47540000 -18367000
ARTHUR LAN-DVD C ARLA11 BZ 34053000 -26011000
MMX MINERACAO MMXM3 BZ 2328652032 -101079000
TECTOY-RCT PREF TOYB10 BZ 47540000 -18367000
TECTOY TOYB13 BZ 47540000 -18367000
CTM CITRUS-ADR CTMMY US 79728000 -1381000
TEC TOY SA-PREF TOYB5 BZ 47540000 -18367000
TECTOY-RT TOYB2 BZ 47540000 -18367000
MMX MINERACA-GDR 3M11 GR 2328652032 -101079000
SANSUY SA-PREF A SNSYAN BZ 232096000 -106033000
FER C ATL-RCT CM VSPT9 BZ 2063975040 -97380000
BOMBRIL SA-ADR BMBBY US 467603008 -475305984
MINUPAR SA MNPRON BZ 180171008 -40196000
FER C ATLANT-PRF VSPT4 BZ 2063975040 -97380000
WIEST-PREF WISA4 BZ 70872000 -166108000
DTC DIRECT CO SA 1DTCON BZ 11797000 -2671000
MMX MINERACA-GDR XMM CN 2328652032 -101079000
WIEST SA WISAON BZ 70872000 -166108000
KUALA ARTE3 BZ 11856000 -33570000
TEXTEIS RENA-RCT TXRX9 BZ 99602000 -148587008
VARIG SA-PREF VARGPN BZ 2094450944 -10176870400
VARIG PART EM SE VPSC3 BZ 219302992 -690223040
VARIG SA VAGV3 BZ 2094450944 -10176870400
VARIG SA-PREF VAGV4 BZ 2094450944 -10176870400
VARIG PART EM-PR VPSC4 BZ 219302992 -690223040
FER C ATL-RCT PF VSPT10 BZ 2063975040 -97380000
FERROVIA CEN-DVD VSPT11 BZ 2063975040 -97380000
D H B DHBI3 BZ 221336000 -588646016
VARIG PART EM-PR VPTA4 BZ 107416000 -867658048
TELEBRAS-RTS CMN TCLP1 BZ 428644992 -2437000
ESTRELA SA-PREF ESTRPN BZ 116767000 -101057000
ESTRELA SA-PREF ESTR4 BZ 116767000 -101057000
ALL MALHA PAULIS GASC3 BZ 1516712064 -1039704000
TELEBRAS-CM RCPT TELE31 BZ 428644992 -2437000
TEKA-ADR TEKAY US 438540000 -564327040
CTM CITRUS- PR R CTPC2 BZ 79728000 -1381000
TEKA TEKAON BZ 438540000 -564327040
TEKA-PREF TEKAPN BZ 438540000 -564327040
SANSUY SA SNSYON BZ 232096000 -106033000
PARQUE TEM-RCT C PQTM9 BZ 135597008 -436259008
TELEBRAS-PF RCPT TBAPF US 428644992 -2437000
STAROUP SA-PREF STARPN BZ 59539000 -15562000
CORREA RIBEIRO CORR3 BZ 10301000 -547000
TELEBRAS-ADR TBAPY US 428644992 -2437000
TELEBRAS-ADR TBH US 428644992 -2437000
TELEBRAS/W-I-ADR TBH-W US 428644992 -2437000
TELEBRAS SA TBASF US 428644992 -2437000
NOVA AMERICA SA NOVA3 BZ 40955000 -353104000
TELEBRAS-PF RCPT TELE41 BZ 428644992 -2437000
TELEBRAS-CEDE PF RCTB4 AR 428644992 -2437000
TEKA TKTQF US 438540000 -564327040
CONST A LIND-PRF LINDPN BZ 32493000 -26717000
TEKA-PREF TKTPF US 438540000 -564327040
TEKA-ADR TKTQY US 438540000 -564327040
TELEBRAS-RECEIPT TLBRUO BZ 428644992 -2437000
TELEBRAS-PF RCPT TLBRUP BZ 428644992 -2437000
CTM CITRUS-PREF CTMPN BZ 79728000 -1381000
TELEBRAS SA-PREF TLBRPN BZ 428644992 -2437000
TELEBRAS-CEDEA $ TEL4D AR 428644992 -2437000
CHIARELLI SA-PRF CCHI4 BZ 42853000 -85685000
TELEBRAS-BLOCK TELB30 BZ 428644992 -2437000
TELEBRAS-COM RT TELB1 BZ 428644992 -2437000
WETZEL SA MWET3 BZ 143358000 -9963000
TELEBRAS SA-PREF TELB4 BZ 428644992 -2437000
TELEBRAS-RTS PRF TLCP2 BZ 428644992 -2437000
TEKA-PREF TEKA4 BZ 438540000 -564327040
TELEBRAS-CEDE PF TELB4 AR 428644992 -2437000
CAMBUCI SA CAMBON BZ 179864000 -43180000
BUETTNER SA-RT P BUET2 BZ 173032000 -65614996
HAGA HAGA3 BZ 26163226 -115001000
TELEBRAS-PF BLCK TELB40 BZ 428644992 -2437000
MARAMBAIA CTPC3 BZ 79728000 -1381000
CAMBUCI SA CAMB3 BZ 179864000 -43180000
DTC DIRECT CO-RT 1DTCONR BZ 11797000 -2671000
TELEBRAS SA TELB3 BZ 428644992 -2437000
NOVA AMERICA SA 1NOVON BZ 40955000 -353104000
TELEBRAS-PF RCPT CBRZF US 428644992 -2437000
WIEST SA-PREF WISAPN BZ 70872000 -166108000
BUETTNER SA BUETON BZ 173032000 -65614996
BUETTNER SA-PRF BUETPN BZ 173032000 -65614996
BUETTNER BUET3 BZ 173032000 -65614996
WIEST WISA3 BZ 70872000 -166108000
HERCULES SA HERTON BZ 21741000 -286192000
CAF BRASILIA-PRF CAFE4 BZ 36476000 -1193384960
DTCOM- DIRECT-PR DTCY4 BZ 11797000 -2671000
HERCULES SA-PREF HERTPN BZ 21741000 -286192000
CAF BRASILIA CAFE3 BZ 36476000 -1193384960
CHIARELLI SA-PRF CCHPN BZ 42853000 -85685000
MARAMBAIA-PREF CTMMF US 79728000 -1381000
BOTUCATU-PREF STRP4 BZ 59539000 -15562000
RENAUXVIEW SA-PF TXRX4 BZ 99602000 -148587008
CAFE BRASILIA-PR CSBRPN BZ 36476000 -1193384960
CTM CITRUS SA CTMON BZ 79728000 -1381000
GAZOLA-RCPT PREF GAZO10 BZ 27266214 -73665296
NOVA AMERICA-PRF NOVA4B BZ 40955000 -353104000
TELEBRAS SA TLBRON BZ 428644992 -2437000
CTM CITRUS-RCT C CTP5 BZ 79728000 -1381000
CORREA RIBEIRO CORION BZ 10301000 -547000
CORREA RIBEIRO CORIPN BZ 10301000 -547000
WETZEL SA MWELON BZ 143358000 -9963000
TEXTEIS RENAU-RT TXRX1 BZ 99602000 -148587008
BOTUCATU TEXTIL STRP3 BZ 59539000 -15562000
CIA DE RECUPERAC CRSC3B BZ 15755000 -48834000
TELEBRAS-PF RCPT RCTB41 BZ 428644992 -2437000
CORREA RIBEIR-PR CORR4 BZ 10301000 -547000
CIA DE RECUPERAC CRSC3 BZ 15755000 -48834000
HOPI HARI SA PQTM3 BZ 135597008 -436259008
ACO ALTONA-PREF EALT4 BZ 167764992 -20478000
ARTHUR LANG-RC P ARLA10 BZ 34053000 -26011000
ARTHUR LANGE SA ALICON BZ 34053000 -26011000
ARTHUR LANGE-PRF ALICPN BZ 34053000 -26011000
TECTOY-RCPT PF B TOYB12 BZ 47540000 -18367000
ARTHUR LANGE ARLA3 BZ 34053000 -26011000
ARTHUR LANGE-PRF ARLA4 BZ 34053000 -26011000
ARTHUR LAN-DVD P ARLA12 BZ 34053000 -26011000
SANSUY-PREF A SNSY5 BZ 232096000 -106033000
GASCOIGNE EMP-PF 1GASPN BZ 1516712064 -1039704000
CHIARELLI SA CCHON BZ 42853000 -85685000
ACO ALTONA EALT3 BZ 167764992 -20478000
DOCAS SA DOCAON BZ 204272000 -41722000
NOVA AMERICA-PRF 1NOVPN BZ 40955000 -353104000
SAUIPE SA-PREF PSEGPN BZ 23632000 -17804000
BOMBRIL CIRIO-PF BOBRPN BZ 467603008 -475305984
AZEVEDO AZEV3 BZ 114608000 -10504000
VARIG SA VARGON BZ 2094450944 -10176870400
ARTHUR LANG-RC C ARLA9 BZ 34053000 -26011000
BOMBRIL-RIGHTS BOBR1 BZ 467603008 -475305984
DOCAS SA-PREF DOCAPN BZ 204272000 -41722000
BUETTNER-PREF BUET4 BZ 173032000 -65614996
BOMBRIL SA-ADR BMBPY US 467603008 -475305984
BOMBRIL BOBR3 BZ 467603008 -475305984
TELECOMUNICA-ADR 81370Z BZ 428644992 -2437000
BUETTNER SA-RTS BUET1 BZ 173032000 -65614996
BOMBRIL-PREF BOBR4 BZ 467603008 -475305984
BOMBRIL CIRIO SA BOBRON BZ 467603008 -475305984
ARTEX SA ARTXON BZ 11856000 -33570000
ARTEX SA-PREF ARTXPN BZ 11856000 -33570000
CHIARELLI SA CCHI3 BZ 42853000 -85685000
KUALA-PREF ARTE4 BZ 11856000 -33570000
TRESSEM PART SA 1TSSON BZ 2328652032 -101079000
AZEVEDO E TRA-PR AZEVPN BZ 114608000 -10504000
CONST A LIND-PRF CALI4 BZ 32493000 -26717000
AZEVEDO-PREF AZEV4 BZ 114608000 -10504000
AZEVEDO E TRAVAS AZEVON BZ 114608000 -10504000
ALL MALHA PAULIS GASC3B BZ 1516712064 -1039704000
GAZOLA SA-DVD CM GAZO11 BZ 27266214 -73665296
GAZOLA SA-DVD PF GAZO12 BZ 27266214 -73665296
GASCOIGNE EMP-PF GASC4 BZ 1516712064 -1039704000
GASCOIGNE EMP-PF GASC4B BZ 1516712064 -1039704000
GAZOLA GAZO3 BZ 27266214 -73665296
CIMOB PARTIC SA GAFON BZ 90471752 -77366408
DOCAS IMBITUB-PR IMBIPN BZ 207240000 -25727000
SCHLOSSER SCLO3 BZ 23121000 -123831000
GAZOLA-RCPTS CMN GAZO9 BZ 27266214 -73665296
FABRICA RENAUX-P FRNXPN BZ 123567000 -72231000
FABRICA RENAUX-P FTRX4 BZ 123567000 -72231000
TECEL S JOSE-PRF FTSJPN BZ 41412000 -42901000
DHB IND E COM-PR DHBPN BZ 221336000 -588646016
SAUIPE-PREF PSEG4 BZ 23632000 -17804000
CAMBUCI SA-PREF CXDOF US 179864000 -43180000
CIMOB PART-PREF GAFPN BZ 90471752 -77366408
TELEBRAS-ADR TBX GR 428644992 -2437000
CIMOB PARTIC SA GAFP3 BZ 90471752 -77366408
TECTOY SA TOYBON BZ 47540000 -18367000
CONST A LINDEN LINDON BZ 32493000 -26717000
PETRO MANGUINHOS MANGON BZ 152032000 -351539008
TECEL S JOSE FTSJON BZ 41412000 -42901000
SCHLOSSER SA SCHON BZ 23121000 -123831000
PETRO MANGUIN-PF MANGPN BZ 152032000 -351539008
MMX MINERACA-GDR MMXMY US 2328652032 -101079000
MINUPAR MNPR3 BZ 180171008 -40196000
MMX MINERACAO MMXCF US 2328652032 -101079000
PROMAN PRMN3B BZ 24047000 -467000
CAMBUCI SA-PREF CAMB4 BZ 179864000 -43180000
FERRAGENS HAGA-P HAGAPN BZ 26163226 -115001000
HERCULES HETA3 BZ 21741000 -286192000
FER HAGA-PREF HAGA4 BZ 26163226 -115001000
FERRAGENS HAGA HAGAON BZ 26163226 -115001000
HERCULES-PREF HETA4 BZ 21741000 -286192000
DOC IMBITUB-PREF IMBI4 BZ 207240000 -25727000
TELEBRAS-PF RCPT RCTB40 BZ 428644992 -2437000
DOC IMBITUBA-RTP IMBI2 BZ 207240000 -25727000
DOC IMBITUBA IMBI3 BZ 207240000 -25727000
DOCAS SA-RTS PRF DOCA2 BZ 204272000 -41722000
GASCOIGNE EMPREE 1GASON BZ 1516712064 -1039704000
BOMBRIL-RGTS PRE BOBR2 BZ 467603008 -475305984
DOCA INVESTIMENT DOCA3 BZ 204272000 -41722000
DOCA INVESTI-PFD DOCA4 BZ 204272000 -41722000
DTCOM-RT DTCY1 BZ 11797000 -2671000
DOC IMBITUBA-RTC IMBI1 BZ 207240000 -25727000
ACO ALTONA SA EAAON BZ 167764992 -20478000
DTCOM- DIR TO CO DTCY3 BZ 11797000 -2671000
CONST A LINDEN CALI3 BZ 32493000 -26717000
CTM CITRUS-RCT P CTPC10 BZ 79728000 -1381000
MARAMBAIA-PREF CTPC4 BZ 79728000 -1381000
CTM CITRUS-RCT C CTPC9 BZ 79728000 -1381000
TELEBRAS-CED C/E TEL4C AR 428644992 -2437000
SCHLOSSER-PREF SCLO4 BZ 23121000 -123831000
PARQUE TEM-DV PF PQT6 BZ 135597008 -436259008
DHB IND E COM DHBON BZ 221336000 -588646016
FABRICA TECID-RT FTRX1 BZ 123567000 -72231000
VARIG PART EM TR VPTA3 BZ 107416000 -867658048
D H B-PREF DHBI4 BZ 221336000 -588646016
ESTRELA SA ESTR3 BZ 116767000 -101057000
NOVA AMERICA-PRF NOVA4 BZ 40955000 -353104000
RIOSULENSE SA RSULON BZ 116783000 -12607000
ARTHUR LANG-RT C ARLA1 BZ 34053000 -26011000
FABRICA RENAUX FRNXON BZ 123567000 -72231000
TEKA TEKA3 BZ 438540000 -564327040
ESTRELA SA ESTRON BZ 116767000 -101057000
TELEBRAS-CM RCPT TBRTF US 428644992 -2437000
ACO ALTONA-PREF EAAPN BZ 167764992 -20478000
CAMBUCI SA-PREF CAMBPN BZ 179864000 -43180000
COLOMBIA
ENACAR ENACAR CI 2551085824 -36098428928
CHILESAT CO-RTS CHISATOS CI 219760902144 -15259209728
CARVILE CARVILE CI 940892992 -34319321088
ENACAR EMPOF US 2551085824 -36098428928
CHILESAT CO-ADR TL US 219760902144 -15259209728
TELMEX CORP SA CHILESAT CI 219760902144 -15259209728
TELEX-A TELEXA CI 219760902144 -15259209728
ENACAR-RT ENACARO CI 2551085824 -36098428928
CHILESAT CORP SA TELEX CI 219760902144 -15259209728
TELMEX CORP-ADR CSAOY US 219760902144 -15259209728
TELEX-RTS TELEXO CI 219760902144 -15259209728
***********
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 * * *