TCRLA_Public/090703.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      L A T I N  A M E R I C A

              Friday, July 3, 2009, Vol. 10, No. 130

                            Headlines

A N T I G U A  &  B A R B U D A

STANFORD INT'L: Judge Revokes Bail; Owner to Stay in Jail
STANFORD INT'L: SFG CEO James Davis to Plead Guilty, Lawyer Says


A R G E N T I N A

ADMINISTRADORA DE BIENES: Verifying Proofs of Claim Until Sept. 21
AGROLUB SRL: Trustee Verifying Proofs of Claim Until Sept. 7
COMPANIA ALIMENTARIA: Asks for Opening of Preventive Contest
GAOMA SA: Trustee Verifying Proofs of Claim Until August 31
JUGOS CONCENTRADOS: Verifying Proofs of Claim Until Sept. 11

MADERO TANGO: Asks for Opening of Preventive Contest
TUTTOSPORT SA: Proofs of Claim Verification Due on September 3
YPF SA: AES Corp's Brazil Units Seek US$1.05BB Damages From Firm
YPF SA: Parties Express Interest in Acquiring Stake


B E R M U D A

MAN-GLENWOOD NEXUS: Creditors' Proofs of Debt Due on July 10
MAN-GLENWOOD NEXUS: Members' Final Meeting Set for August 11
MAN-GLENWOOD NEXUS: Creditors' Proofs of Debt Due on July 10
MAN-GLENWOOD NEXUS: Members' Final Meeting Set for August 11
PPM MGP: Members' Final Meeting Set for August 3


B R A Z I L

BANCO BRADESCO: In Talks to Acquire Porto Seguro
BANCO DO BRASIL: To Increase Lending by BRL80 Billion
BR MALLS: Raised BRL727 Million Through a Follow-on Offering
BANCO MERCANTIL: S&P Affirms 'B/B' Counterparty Credit Rating
REDE ENERGIA: Moody's Cuts Rating on US$575 Mil. Bonds to 'Ca'

AES CORP: Brazil Units Seek US$1.05 Billion Damages From YPF SA
* BRAZIL: To Implement Plans to Accelerate Economy Recovery


C A Y M A N  I S L A N D S

ALVERSTOKE OPPORTUNITIES: Shareholders' Meeting Set for July 24
AVENUE ASIA: Shareholders' Final Meeting Set for July 22
BLACKSTONE KAILIX: Shareholders' Final Meeting Set for July 22
CRATOS CLO: Shareholders' Meeting Set for July 24
MANGART LEVERAGED: Members' Final Meeting Slated for July 14

MCT SPECIAL: Shareholders' Final Meeting Set for July 24
MGS CORPORATION: Members to Receive Wind-Up Report on July 22
NEW HORIZON: Shareholders' Final Meeting Set for July 24
RAMIUS MERGER: Shareholders' Final Meeting Set for July 24
SCM CHINA: Members to Receive Wind-Up Report on July 22

SQUIRE INVESTMENTS: Members Receive Wind-Up Report
THAMES RIVER: Members to Receive Wind-Up Report on July 23
TOP RESULT: Shareholders' Final Meeting Set for July 23
VELVET HILL: Members' Final Meeting Slated for Sept. 29
YORK INVESTMENTS: Members Receive Wind-Up Report


H A I T I

* HAITI: IMF and World Bank Approve US$1.2 Billion Debt Relief


J A M A I C A

DICIGEL GROUP: Honduras Ops. Unaffected by Coup, Spokesman Says


M E X I C O

CEMEX SAB: In Dispute With McCrory Over Construction Payment
GRUMA SAB: Auditor Raises Going Concern Doubt


T R I N I D A D  &  T O B A G O

CL FINANCIAL: Assets Sale Put on Hold, Inspector Says


V E N E Z U E L A

BANCO UNIVERSAL: Moody's Puts Low-B Deposit Ratings on Review
BANCO DE VENEZUELA: Moody's Puts Low-B Deposit Ratings on Review
GRUPO SANTANDER: Moody's Puts Ba1 Deposit Rating on Review
MERCANTIL, C.A.: Moody's Puts Low-B Deposit Ratings on Review
PETROLEOS DE VENEZUELA: Fitch Assigns 'B+/RR4' Rating on Notes


V I R G I N  I S L A N D S

PLAZA MANAGEMENT: Chapter 15 Settlement Approved


X X X X X X X X

LEAR CORP: Operations Outside U.S. Excluded from Bankr. Filing
* Eastern Caribbean Central Bank Sees Decline in Economy


                         - - - - -


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

STANFORD INT'L: Judge Revokes Bail; Owner to Stay in Jail
---------------------------------------------------------
Stanford International Bank Limited owner Robert Allen Stanford
will remain in jail while he awaits trial after U.S. District
Judge David Hittner revoked a magistrate judge's decision that
allowed him bail, Juan Lozano of The Associated Press reports.

As reported in the Troubled Company Reporter-Latin America on
June 30, 2009, Bloomberg News said prosecutors urged Judge Hittner
to revoke the US$500,000 bail given by U.S. Magistrate Judge
Frances Stacy to Mr. Stanford.  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
related.

Agence France-Presse News said Mr. Stanford pleaded not guilty to
21 charges of multi-billion dollar fraud, money-laundering and
obstruction of justice.  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.

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.  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.

On February 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control.  The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.

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.


STANFORD INT'L: SFG CEO James Davis to Plead Guilty, Lawyer Says
----------------------------------------------------------------
Stanford Group Chief Financial Officer James Davis will plead
guilty to the charges filed against him, as part of a federal
probe of a multi-billion Ponzi scheme, Andrew M. Harris and Laurel
Brubaker Calkins of Bloomberg News report, citing Mr. Davis'
lawyer David Finn.  The report relates Mr. Finn said his client
will continue to cooperate with the investigation and “assist the
prosecution’s attempts to find the billions that Stanford sent to
Switzerland and other banks in Europe.”

According to the report, Mr. Finn said Mr. Davis will initially
enter a “not guilty” plea before a federal magistrate, then change
that plea in a later appearance before a U.S. District Court
judge.  Houston Executive Assistant U.S. Attorney Nancy Herrera
told Bloomberg News in an interview that she “cannot confirm or
deny anything” except that Davis will be arraigned before
Magistrate Judge Calvin Botley on July 13.

Mr. Davis, as cited by Bloomberg News, was charged with conspiracy
to commit mail, wire and securities fraud, as well as mail fraud
and conspiracy to obstruct a SEC investigation.

                 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.

On February 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control.  The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.

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.


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

ADMINISTRADORA DE BIENES: Verifying Proofs of Claim Until Sept. 21
------------------------------------------------------------------
The court-appointed trustee for Administradora de Bienes Raices
Meridien S.A.'s bankruptcy proceedings will be verifying
creditors' proofs of claim until September 21, 2009.

The trustee will present the validated claims in court as
individual reports on November 2, 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 14, 2009.


AGROLUB SRL: Trustee Verifying Proofs of Claim Until Sept. 7
------------------------------------------------------------
The court-appointed trustee for Agrolub S.R.L.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
September 7, 2009.

The trustee will present the validated claims in court as
individual reports on October 20, 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 30, 2009.


COMPANIA ALIMENTARIA: Asks for Opening of Preventive Contest
------------------------------------------------------------
Compania Alimentaria Americana S.A. asked for the opening of
preventive contest before the National Commercial Court of First
Instance No. 5 in Buenos Aires, with the assistance of Clerk
No. 10.


GAOMA SA: Trustee Verifying Proofs of Claim Until August 31
-----------------------------------------------------------
The court-appointed trustee for Gaoma S.A.'s reorganization
proceedings will be verifying creditors' proofs of claim until
August 31, 2009.

The trustee will present the validated claims in court as
individual reports on October 13, 2009.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.

Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
November 24, 2009.

Creditors will vote to ratify the completed settlement plan
during the assembly on May 24, 2010.


JUGOS CONCENTRADOS: Verifying Proofs of Claim Until Sept. 11
------------------------------------------------------------
The court-appointed trustee for Jugos Concentrados Argentinos
S.A.'s bankruptcy proceedings will be verifying creditors' proofs
of claim until September 11, 2009.

The trustee will present the validated claims in court as
individual reports on October 23, 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 4, 2009.


MADERO TANGO: Asks for Opening of Preventive Contest
----------------------------------------------------
Madero Tango S.A. asked for the opening of preventive contest
before the National Commercial Court of First Instance No. 7 in
Buenos Aires, with the assistance of Clerk No. 13.


TUTTOSPORT SA: Proofs of Claim Verification Due on September 3
--------------------------------------------------------------
Jose Luis Iglesias, the court-appointed trustee for Tuttosport
S.A.'s bankruptcy proceeding, will be verifying creditors' proofs
of claim until September 3, 2009.

Mr. Iglesias will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 45, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.


YPF SA: AES Corp's Brazil Units Seek US$1.05BB Damages From Firm
-----------------------------------------------------------------
AES Uruguaiana Empreendimentos SA and Companhia de Gas do Estado
do Rio Grande do Sul, the Brazilian units of The AES Corporation,
are seeking US$1.05 billion in damages from YPF SA (YPF), a unit
of Spain's Repsol, over disputed natural gas contracts, Matthew
Cowley of Dow Jones Newswires reports.

According to the report, YPF SA said the claims arise from the
Argentine government's decisions to oblige the company to deliver
natural gas to the domestic market regardless of other contracts
it had in place, and to impose direct limits on natural gas
exports.  "As a result of these measures, from 2004 to the
present, we have been forced in many instances to partially or
fully suspend natural gas export deliveries that are contemplated
by our contracts with export customers," the report quoted YPF as
saying.

DJ Newswires recalls during the 2001-2002 crisis, the Argentine
government devalued the currency and froze utility rates, meaning
natural gas companies were receiving one third of the values under
their contracts.  The report relates investment and production
slowed, while a number of companies had contracts with overseas
customers, which were paying far higher prices than the local
market, leading to shortages in Argentina.

YPF SA, the report notes, said it has appealed the government's
measures in court but that in the meantime it heeded the requests
to avoid "the revocation of our export permits or other
penalties."  The report relates YPF SA said the government
intervention is an event of force majeure that releases it from
any liability.


AES Uruguaiana and Sulgas filed the case at the International
Chamber of Commerce.


YPF SA: Parties Express Interest in Acquiring Stake
---------------------------------------------------
Spanish-based Repsol YPF SA has been approached by companies
interested in its US$12 billion Argentine unit, YPF SA, Joao Lima
and Matthew Craze of Bloomberg News report.  The report relates
Repsol YPF said none of the proposals is “firm,” and a public
offering of a minority stake in YPF also remains “open.”

According to the report, Chief Executive Officer Antonio Brufau
wants to cut Repsol’s stake in YPF after Argentine restrictions on
natural gas exports and price caps on crude reduced profitability.
The report notes that the company also needs to raise funds for
production, including in the deepwater fields off Brazil where
Brufau said last year Repsol would spend at least US$1.5 billion
developing deposits.

Repsol, the report says, delayed a public offering of a stake in
YPF in November after paying US$15.5 billion for more than 80
percent of YPF in 1999.  Last year Repsol sold a 15% stake in YPF
SA for US$2.2 billion to Argentine investor Enrique Eskenazi, the
report recalls.

As reported in the Troubled Company Reporter-Latin America on
July 2, 2009, Bloomberg News said China National Petroleum Corp.
is seeking to revive a failed attempt to buy stakes in YPF S.A.
The report related CNPC's third attempt will likely face strong
political opposition in Argentina.  According to the report, CNPC
may offer to buy as much as 75% of YPF, valued at about US$17
billion, while Chinese rival Cnooc Ltd. is interested in a 25%
stake.

                        About YPF S.A.

Headquartered in Buenos Aires, Argentina, YPF S.A. is an
integrated oil and gas company engaged in the exploration,
development and production of oil and gas, natural gas and
electricity-generation activities (upstream), the refining,
marketing, transportation and distribution of oil and a range of
petroleum products, petroleum derivatives, petrochemicals and
liquid petroleum gas (downstream).  The company is a subsidiary
of Repsol YPF, S.A., a Spanish company engaged in oil
exploration and refining, which holds 99.04% of its shares.  Its
international operations are conducted through its subsidiaries,
YPF International S.A. and YPF Holdings Inc.

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 9, 2009, Moody's Investors Service downgraded YPF S.A.'s
global local currency rating to Ba1 from Baa2, concluding a review
for possible downgrade announced in December 2008.  (YPF's Ba2
foreign currency bond rating, also under review for downgrade, was
withdrawn when the rated bond issue matured in February 2009.)
The rating outlook is stable.



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

MAN-GLENWOOD NEXUS: Creditors' Proofs of Debt Due on July 10
------------------------------------------------------------
The creditors of Man-Glenwood Nexus Dollar Trading Limited are
required to file their proofs of debt by July 10, 2009, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on June 24, 2009.

The company's liquidator is:

          Beverly Mathias
          c/o Argonaut Limited
          Argonaut House
          5 Park Road, Hamilton HM O9
          Bermuda


MAN-GLENWOOD NEXUS: Members' Final Meeting Set for August 11
------------------------------------------------------------
The members of Man-Glenwood Nexus Dollar Trading Limited will hold
their final general meeting on August 11, 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 24, 2009.

The company's liquidator is:

          Beverly Mathias
          c/o Argonaut Limited
          Argonaut House
          5 Park Road, Hamilton HM O9
          Bermuda


MAN-GLENWOOD NEXUS: Creditors' Proofs of Debt Due on July 10
------------------------------------------------------------
The creditors of Man-Glenwood Nexus Euro Trading Limited are
required to file their proofs of debt by July 10, 2009, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on June 24, 2009.

The company's liquidator is:

          Beverly Mathias
          c/o Argonaut Limited
          Argonaut House
          5 Park Road, Hamilton HM O9
          Bermuda


MAN-GLENWOOD NEXUS: Members' Final Meeting Set for August 11
------------------------------------------------------------
The members of Man-Glenwood Nexus Euro Trading Limited will hold
their final general meeting on August 11, 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 24, 2009.

The company's liquidator is:

          Beverly Mathias
          c/o Argonaut Limited
          Argonaut House
          5 Park Road, Hamilton HM O9
          Bermuda


PPM MGP: Members' Final Meeting Set for August 3
------------------------------------------------
The members of PPM MGP (Bermuda), Ltd. will hold their final
general meeting on August 3, 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 24, 2009.

The company's liquidator is:

          Robin J. Mayor
          Clarendon House, Church Street
          Hamilton, Bermuda



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

BANCO BRADESCO: In Talks to Acquire Porto Seguro
------------------------------------------------
Banco Bradesco S.A. is in talks to acquire Porto Seguro, a Sao
Paulo-based independent insurer, LatinFrance reports.  The report
relates Porto Seguro owns a share in the bank's auto insurance
arm, Bradesco Auto RE.

According to the report, citing a report by local paper Valor,
Bradesco seeks to boost ownership of the insurer in exchange for
ceding a larger piece of the auto insurer to Porto Seguro.  The
report relates Valor said that the bank move aims to keep
competitors from building up a stronger position in the company
that could eventually lead to a takeover.

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, and Japan.  Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers.  The bank
also provides personal and commercial loans, along with leasing
services.

                       *     *     *

As of July 2, 2009, the company continues to carry Moody's Ba2
foreign LT bank Deposits rating.


BANCO DO BRASIL: To Increase Lending by BRL80 Billion
-----------------------------------------------------
State-owned Banco do Brasil SA said it may increase its lending by
a further B80 billion (US$41.2 billion) for the remainder of 2009,
Rogerio Jelmayer of Dow Jones Newswires reports, citing Bank
President Aldemir Bendini in an interview with O Estado de S.
Paulo newspaper.

According to the report, the bank's total credit portfolio
increased 41.3% to BRL254 billion from the same perion in 2008.

Meanwhile, the report notes Mr. Bendini said the bank could resume
talks to acquire Banco do Estado do Espirito Santo (Banestes).
"We suspended talks but we agreed to resume talks in the future,"
the report quoted Mr. Bendini as saying.

As reported in the Troubled Company Reporter-Latin America on
June 24, 2009, Dow Jones Newswires said Banco do Brasil said it is
no longer looking to acquire a stake in Banestes, but did not give
reasons for canceling the deal.  A TCRLA report on February 10,
citing Reuters, recalled that Banco do Brasil started negotiations
to buy Banestes from Bazil's southeastern state of Espirito Santo.
The report related Espirito Santo agreed to non-binding talks with
Banco do Brasil.

                     About Banco do Brasil

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

                       *     *     *

As of July 1, 2009, the company continues to carry Moody's Ba2
Foreign LT Bank Deposit Rating.


BR MALLS: Raised BRL727 Million Through a Follow-on Offering
------------------------------------------------------------
Brazil-based BR Malls Participacoes SA raised BRL727 million
through a follow-on offering priced on July 1, LatinFrance
reports.  The report relates the company sold 48.46 million shares
at BRL15.00, a 1.6% discount to the closing price of BRL15.25.

According to the report, the issuer capped the sale at 48 million
because it did not see the need to raise additional cash.

The report notes an unnamed banker managing the transaction said
that selling shareholders chose not to divest holdings beyond the
18m they had originally planned to offer.  The book was over 3x
subscribed, he added.

LatinFrance says the follow-on was led by Itau BBA, with UBS
Pactual, Santander and Citi as joint bookrunners.

                        About BR Malls

Headquartered in Rio de Janeiro, Brazil, BR Malls Participacoes
S.A. is the largest integrated shopping mall company in Brazil
with a portfolio of 34 malls, representing 985.2 thousand square
meters in total Gross Leasable Area (GLA) and 429.1 thousand
square meters in owned GLA.

                         *     *     *

As of July 1, 2009, the company continues to carry Standard and
Poor's "BB-" LT Issuer Credit ratings.  The company also continues
to carry Fitch Ratings' "BB-" LT Issuer Default ratings and "BB-"
Senior Secured debt ratings.


BANCO MERCANTIL: S&P Affirms 'B/B' Counterparty Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B/B'
global-scale counterparty credit and 'brBBB-' Brazilian national-
scale ratings on Banco Mercantil do Brasil S.A.  The outlook
remains stable.

"The ratings on BMB reflect its weak operating performance, as its
low profitability demonstrates," noted Standard & Poor's credit
analyst Marcelo Peixoto.  "The ratings are also based on BMB's
underutilization of its costly regional retail structure as well
as the risky profile of its credit portfolio, which shows weaker-
than-industry asset-quality ratios as measured by nonperforming
loans."  Partially offsetting those risks are BMB's adequate
liquidity and good funding profile, as the bank benefits from a
rather stable flow of deposits from its retail network, with low
dependence on institutional investors.  BMB also has demonstrated
a good track record of operations in its regional market.

The bank's historically weak profitability indicates that it has
yet to leverage a more robust stream of revenues from its costly
retail structure.  The bank's average return on assets has been
consistently less than 1% in the past several years (0.4% in March
2009) and remains well below industry standards.  Its efficiency
ratio, as calculated by Standard & Poor's, improved to 63% in the
first quarter of 2009.  This was the best level in the past four
years and was the result of continuous efforts on costs and
expenses management, which included closing unprofitable branches,
investing in technology, and processes rationalization.  The
bank's steps to improve its operating performance include
divesting noncore business and focusing on fee-generated revenues
and cross-selling opportunities.

The stable outlook incorporates BMB's weak profitability prospects
and S&P's expectation that the bank will be able to manage asset-
quality indicators close to current levels, even in a more
challenging operating environment.  S&P could lower the ratings or
revise the outlook to negative if one or more of these happens:

A significant deterioration in credit quality, as measured by
nonperforming loans closer to 12%.  A dramatic change in the
bank's funding profile (which S&P currently see as unlikely) or
liquidity position.  Capitalization that prevents the bank from
growing in the medium term.

An upward rating movement or a positive outlook would depend on
gains of scale and improvement of its revenues stream under
adequate credit risk management, improving BMB's profitability
level.


REDE ENERGIA: Moody's Cuts Rating on US$575 Mil. Bonds to 'Ca'
--------------------------------------------------------------
Moody's Investors Service downgraded to Ca from Caa3 the senior
unsecured US$575 million perpetual bonds issued by Rede Energia
S.A.  At the same time, Moody's confirmed Rede's Caa1 local
currency corporate family rating and assigned a negative outlook.
In addition, Moody's confirmed the issuer ratings for Rede's
operating companies, and changed the outlook to negative.  This
concludes the review for downgrade initiated on April 23 2009.

The downgrade of Rede's perpetual bonds was prompted by the
conclusion of the tender offer for the existing US$575 million
perpetual bonds initiated this June, which is deemed as a
distressed exchange and thus classified as a default under Moody's
standard definition.  According to management, US$78.4 million or
approximately 14% of the outstanding amount has been tendered.

This tender offer is being treated as a distressed exchange since
it imposed a large economic loss versus the price at which the
bonds were issued in 2007.  It is also important to note that,
historically, most exchange offers made by corporate issuers rated
Caa1 and below have been determined to be distressed exchanges by
Moody's.  In Rede's case, the relatively small size of the tender
offer is expected to be followed by additional debt restructuring
so that Rede can attain a more manageable debt level that can be
adequately served by expected upstream dividends from its
subsidiaries.

The negative outlook reflects the uncertainties regarding the
company's ability to accomplish a more adequate level of debt
compatible with its cash generation capabilities along with an
appropriate lengthening of its debt profile.  Moody's recognizes
that the balance remaining from the one-year BRL 320 million
promissory notes utilized in the tender offer will reduce
immediate liquidity pressure as the bulk of these financial
resources of around BRL 240 million will most likely be used to
pay down more expensive existing short-term debt.  However, the
impact of the recent tender offer on the overall level of
indebtedness is very limited.

Management has signaled that the BRL 320 million promissory notes
will be taken out by the issuance of long-term debt.  The sale of
some generation assets is being considered to reduce the overall
debt burden but the amount that could be raised is not clear.
These measures could potentially pave the way for an improved
capital structure depending upon the amount and the timeliness of
new financial resources stemming either from a sale of assets or a
new equity investor.  While the extension of debt maturities may
temporarily relieve liquidity pressure, those measures do not
address the holding company's current unsustainable level of debt.

Going forward, Moody's will review any new capital structure in
conjunction with other risk factors with a particular focus on
measures to reduce the level of debt mainly at the holding company
level and evaluate the effectiveness of management's current
business and financial strategy to accomplish stronger cash
generation at the level of its subsidiaries.

Ratings with negative outlook include:

  -- Caa1 / Caa1.br Corporate Family Ratings for Rede Energia S.A.

  -- Ca Senior Unsecured rating for Rede's US$575 million
     perpetual bonds

  -- B3 / B1.br Issuer Ratings for Centrais Eletricas do Para S.A.

  -- B3 / B1.br Issuer Ratings for Centrais Eletricas Mato-
     grossenses S.A.

  -- B3 / B1.br Issuer Ratings for Comp. de Ener. Eletr. do Est.
     do Tocantins

The last rating action for Rede was on June 03, 2009, when Moody's
announced that it would continue its review for downgrade of its
ratings for Rede Energia S.A. and Rede's operating subsidiaries
following the company's BRL 300 million repurchase offer to
holders of Rede's US$575 million in unsecured perpetual bonds.

Rede Energia S.A., headquartered in Sao Paulo, Brazil, is a
holding company with interests in electricity distribution and
generation.  Through majority-owned subsidiaries Companhia de
Energia Eletrica do Estado do Tocantins - Celtins, Centrais
Eletricas Matogrossenses S.A. - Cemat, Centrais Eletricas do Para
S.A. - Celpa and Empresa Energ. do Mato Grosso Sul - Enersul, the
group operates concessions to distribute electricity in the states
of Tocantins, Mato Grosso, Para and Mato Grosso do Sul,
respectively.  In addition, Rede operates small power distribution
concessions in a number of municipalities in the states of Sao
Paulo, Minas Gerais and Parana.  Overall, the group serves
approximately 4.2 million clients.  In 2008, Rede reported
consolidated net revenues of BRL 4.0 billion (US$2.2 billion) and
distributed 16TWh of electricity, which is equivalent to
approximately 4.5% of the electricity consumed in the country's
national integrated system during this period.

AES CORP: Brazil Units Seek US$1.05 Billion Damages From YPF SA
---------------------------------------------------------------
AES Uruguaiana Empreendimentos SA and Companhia de Gas do Estado
do Rio Grande do Sul, the Brazilian units of The AES Corporation,
are seeking US$1.05 billion in damages from YPF SA (YPF), a unit
of Spain's Repsol, over disputed natural gas contracts, Matthew
Cowley of Dow Jones Newswires reports.

According to the report, YPF SA said the claims arise from the
Argentine government's decisions to oblige the company to deliver
natural gas to the domestic market regardless of other contracts
it had in place, and to impose direct limits on natural gas
exports.  "As a result of these measures, from 2004 to the
present, we have been forced in many instances to partially or
fully suspend natural gas export deliveries that are contemplated
by our contracts with export customers," the report quoted YPF as
saying.

DJ Newswires recalls during the 2001-2002 crisis, the Argentine
government devalued the currency and froze utility rates, meaning
natural gas companies were receiving one third of the values under
their contracts.  The report relates investment and production
slowed, while a number of companies had contracts with overseas
customers, which were paying far higher prices than the local
market, leading to shortages in Argentina.

YPF SA, the report notes, said it has appealed the government's
measures in court but that in the meantime it heeded the requests
to avoid "the revocation of our export permits or other
penalties."  The report relates YPF SA said the government
intervention is an event of force majeure that releases it from
any liability.


AES Uruguaiana and Sulgas filed the case at the International
Chamber of Commerce.


* BRAZIL: To Implement Plans to Accelerate Economy Recovery
-----------------------------------------------------------
Brazil plans to cut sales taxes on 70 capital goods and lower the
long-term interest rate charged by state development bank, BNDES,
aimed to accelerate the recovery of the country's economy,
BrazzilMagazine reports, citing Finance Minister Guido Mantega.

According to the report, Mr. Mantega also said that the government
will also extend existing tax breaks on the purchase of cars, home
appliances, construction materials and some food staples until at
least October.  The report relates the rate charged by the BNDES
will be reduced to a record 6%, from 6.25%.

The so-called TJLP rate, the report notes, has remained unchanged
at 6.25% since July 2007.

"We are giving a boost to a sector that suffered badly in the
crisis, which is the capital goods sector," the report quoted
Mr. Mantega as saying.

As reported in the Troubled Company Reporter-Latin America on
June 11, 2009, Bloomberg News said Brazil's first quarter gross
domestic product fell 1.8% from a year ago and dropped 0.8% from
the previous quarter causing bond yields to jump the most in
nearly two months as investors increased bets the central bank
will slow the pace of interest rate cuts.  The report related the
second straight quarterly contraction pushed the country's economy
into recession for the first time since 2003.

                        *     *     *

The country continues to carry Moody's Rating Agency's "Ba1" local
and foreign currency ratings.



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

ALVERSTOKE OPPORTUNITIES: Shareholders' Meeting Set for July 24
---------------------------------------------------------------
The shareholders of Alverstoke Opportunities Fund (Cayman) Ltd.
will hold their final meeting on July 24, 2009, at 10:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

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


AVENUE ASIA: Shareholders' Final Meeting Set for July 22
--------------------------------------------------------
The shareholders of Avenue Asia Equity International, Ltd. will
hold their final meeting on July 22, 2009, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Marc Lasry
          535 Madison Avenue
          New York, NY 10022, U.S.A.


BLACKSTONE KAILIX: Shareholders' Final Meeting Set for July 22
--------------------------------------------------------------
The shareholders of Blackstone Kailix Offshore Fund Ltd. will hold
their final meeting on July 22, 2009, to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Robert L. Friedman
          345 Park Avenue
          New York, NY 10154, U.S.A.


CRATOS CLO: Shareholders' Meeting Set for July 24
-------------------------------------------------
The shareholders of Cratos Clo II Ltd. will hold their final
meeting on July 24, 2009, at 11:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


MANGART LEVERAGED: Members' Final Meeting Slated for July 14
------------------------------------------------------------
The members of Mangart Leveraged Fund Limited will hold their
final meeting on July 14, 2009, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Ian Stokoe
          c/o Ross Lister
          PO Box 258, Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345) 949 8743
          Facsimile: (345) 945 4237


MCT SPECIAL: Shareholders' Final Meeting Set for July 24
--------------------------------------------------------
The shareholders of MCT Special Situations Fund will hold their
final meeting on July 24, 2009, at 10:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


MGS CORPORATION: Members to Receive Wind-Up Report on July 22
-------------------------------------------------------------
The members of MGS Corporation will hold their final general
meeting on July 22, 2009, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106, Grand Cayman KY1-1205


NEW HORIZON: Shareholders' Final Meeting Set for July 24
--------------------------------------------------------
The shareholders of New Horizon Company Ltd. will hold their final
meeting on July 24, 2009, at 11:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


RAMIUS MERGER: Shareholders' Final Meeting Set for July 24
----------------------------------------------------------
The shareholders of Ramius Merger Arbitrage Fund Ltd. will hold
their final meeting on July 24, 2009, at 10:45 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


SCM CHINA: Members to Receive Wind-Up Report on July 22
-------------------------------------------------------
The members of SCM China Limited will hold their final general
meeting on July 22, 2009, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Benjamin K. Y. Lee
          c/o Maples and Calder, Attorneys-at-law
          PO Box 309, Ugland House
          Grand Cayman KY1-1104, Cayman Islands


SQUIRE INVESTMENTS: Members Receive Wind-Up Report
--------------------------------------------------
The members of Squire Investments Limited met on May 28, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Buchanan Limited
          P.O. Box 1170, George Town, Grand Cayman


THAMES RIVER: Members to Receive Wind-Up Report on July 23
----------------------------------------------------------
The members of Thames River Kingsway Plus Fund Limited will hold
their final general meeting on July 23, 2009, at 10:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Ian Stokoe
          c/o Jodi Jones
          Telephone: (345) 914 8694
          Facsimile: (345) 945 4237
          PO Box 258, Grand Cayman KY1-1104
          Cayman Islands


TOP RESULT: Shareholders' Final Meeting Set for July 23
-------------------------------------------------------
The shareholders of Top Result Interactive Limited will hold their
final meeting on July 23, 2009, at 2:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Wong Hon Chiu, Stephen
          Admiralty Centre, 22nd Floor
          Tower 2, 18 Harcourt Road
          Hong Kong


VELVET HILL: Members' Final Meeting Slated for Sept. 29
-------------------------------------------------------
The members of Velvet Hill Fund SPC will hold their final meeting
on Sept. 29, 2009, at 11:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

Chris Johnson is the company's liquidator.


YORK INVESTMENTS: Members Receive Wind-Up Report
------------------------------------------------
The members of York Investments Limited met on May 28, 2009, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Buchanan Limited
          P.O. Box 1170, George Town, Grand Cayman



=========
H A I T I
=========

* HAITI: IMF and World Bank Approve US$1.2 Billion Debt Relief
--------------------------------------------------------------
Haiti was granted US$1.2 billion of debt relief by reaching the
completion point under the Enhanced Heavily Indebted Poor
Countries Initiative approved by the Boards of the International
Development Association and the International Monetary Fund.  Debt
service savings result from the HIPC Initiative (US$265 million)
and the Multilateral Debt Relief Initiative (US$972.7 million).

To reach the completion point, Haiti carried out a number of
reforms despite a challenging environment marked by major natural
disasters, a food and fuel crisis, difficult political conditions,
and the impact of the global economic downturn.  These reforms
were aimed at establishing a more stable macroeconomic environment
and at implementing its national poverty reduction strategy.
Haiti strengthened public expenditure management by better
focusing poverty reduction spending, producing audited government
accounts, ensuring commitment to an asset declaration law, and
adopting a law on public procurement.

In addition, Haiti strengthened tax and customs administration and
improved debt management and reporting.  In education, Haiti
established a financing mechanism to allow over 50,000 children to
attend school, allocated over 20 percent of recurrent spending to
education, and made progress toward implementing the teacher
training program.  In health, Haiti approved an HIV/AIDS
prevention and treatment plan and improved immunization rates for
measles and DPT3.

“We are very pleased that the Boards of the Bank and the Fund have
granted Haiti debt relief.  This will significantly reduce Haiti’s
debt burden and effectively free resources for growth and poverty
reduction” said Yvonne Tsikata, the World Bank’s Director for the
Caribbean.  “We congratulate the Haitian authorities on this
achievement.  Going forward, Haiti must take advantage of this
opportunity by managing future borrowing prudently, and continuing
its efforts and progress towards stronger public expenditure
management and public procurement,” Mr. Tsikata added.

Debt relief under the Enhanced HIPC Initiative amounts to US$140.3
million in end-September 2005 net present value (NPV) terms1.
Haiti is expected to receive the equivalent of US$265 million of
debt relief in nominal terms2 under the HIPC Initiative and
expected additional bilateral relief.  Haiti’s public debt as of
end-September 2008 amounted to 36 percent of GDP, most of which—
about 28 percent of GDP—is owed to external creditors.  The
largest share of Haiti’s external debt is owed to the Inter-
American Development Bank (41 percent of total external debt), the
World Bank (27 percent), and bilateral creditors (24 percent).

By reaching the HIPC completion point, Haiti now is eligible under
the MDRI for further debt relief from IDA and the Inter-American
Development Bank (IADB).  MDRI relief would save Haiti US$972.7
million in debt service of which US$486.7 million owed to IDA and
US$486 million to the IADB.  While the IMF is a participant in the
MDRI, Haiti does not have any MDRI-eligible debt to the IMF.

“This is a very positive development for Haiti”, said Finance
Minister Daniel Dorsainvil.  “The debt relief will help us invest
in growth and poverty reduction programs.  Haiti has demonstrated
over the past four to five years that it can commit itself to a
menu of reforms and respect this commitment.”

“To reach the completion point under the Enhanced HIPC Initiative
is a key milestone, and the authorities are to be commended for
this important achievement amid severe external shocks,” said
Corinne Delechat, mission chief for Haiti in the IMF’s Western
Hemisphere Department.  “Debt relief will significantly reduce
Haiti’s debt burden and make it possible to increase poverty-
reducing spending, allowing further progress toward the Millennium
Development Goals.  In spite of the debt relief, Haiti’s
vulnerability to shocks remains high.  A major challenge ahead
will be to lock in the gains of debt relief through prudent fiscal
policy, improved quality and efficiency of public spending,
strengthened domestic revenue mobilization, and donor grant
financing.”



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

DICIGEL GROUP: Honduras Ops. Unaffected by Coup, Spokesman Says
---------------------------------------------------------------
Digicel Group said it operations in Honduras are unaffected amidst
the political turmoil in the country, Mark Titus of the Jamaica
Gleaner reports.

"So far, everyone is at work", Digicel spokesperson Antonia Graham
told Wednesday Business in an interview, the report relates.
"There is no impact whatsoever on our operations there at this
time," Ms. Graham added.

According to the report, Digicel's partner, FIMI Wireless --
operates in Central America through an associate company, The Cell
Zone -- said its operations have not been touched by the violence.
The Cell Zone operates 25 stores throughout Honduras and employs
more than 100 people.

"We were open up to [June 26], but decided to close.  I need to
ensure that my workers are safe and that they will be able to go
back home easily and safely," the report quoted FIMI Chief
Executive Bernard Henry.  "What is happening there is just a
bloodless coup and things will be returning to normal quickly.
Even though they are having some protests on the street, people
are still walking around," Mr. Henry added.

The country's president Manuel Zelaya was ousted from the the
palace in Tegulcigalpa and sent him into exile in Costa Rica
sending Honduras into a state of turmoil.

Digicel's investments in Honduras reached US$450 million over the
past six months, the report notes.

                     About Digicel Group

Digicel Group -- www.digicelgroup.com -- is renowned for
competitive rates, unbeatable coverage, superior customer care, a
wide variety of products and services and state-of-the-art
handsets. By offering innovative wireless services and community
support, Digicel has become a leading brand across its 31 markets
worldwide.

Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide. Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos. The Caribbean company also has coverage
in St. Martin and St. Barths. Digicel Pacific comprises Fiji,
Papua New Guinea, Samoa, Tonga and Vanuatu.

                        *     *     *

As of June 25, the company continues to carry these low ratings
from Moody's:

   -- LT Corp Family Rating at B2
   -- Senior Undecured Debt Rating at Caa1
   -- probability of Default at B2



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

CEMEX SAB: In Dispute With McCrory Over Construction Payment
------------------------------------------------------------
Cemex S.A.B. de C.V. and McCrory Engineering are in a payment
dispute over a due for a concrete plant constructed for the
company, James Stagg of Construction Journal.com reports.

According to the report, Cemex has withheld 20% of the GBP1.6
million owed to the batching plant specialist, claiming that the
plant isn’t delivering the required run rates; while McCrory
insists it has met its obligation to deliver a state of the art
plant.  The report relates the disagreement follows the delivery
of Cemex’s Kingsmead batching plant, for which the company
withheld 10% until completion of the Stepney site.

“We’ve built plants for Cemex in Northern Ireland and never had a
problem.  Now we’ve delivered two fantastic plants in the UK and
all I want is payment.  “We’re owed over GBP260,000, which is a
lot of money for a family owned company,” the report quoted
McCrory Sales Manager Alan Stewart as saying.

                          About Cemex

Headquartered in Mexico, Cemex S.A.B. de C.V. --
http://www.cemex.com/-- is a growing global building solutions
company that provides high quality products and reliable service
to customers and communities in more than 50 countries throughout
the world, including Argentina, Colombia and Venezuela.
Commemorating its 100th anniversary in 2006, Cemex has a rich
history of improving the well-being of those it serves through its
efforts to pursue innovative industry solutions and efficiency
advancements and to promote a sustainable future.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 17, 2009, Fitch Ratings has placed these ratings of Cemex,
S.A.B. de C.V., and its subsidiaries on Rating Watch Evolving:

Cemex

  -- Foreign currency Issuer Default Rating 'B';

  -- Local currency IDR 'B';

  -- Long-term national scale rating 'BB-(mex)';

  -- MXN5 billion Certificados Bursatiles program 'BB- (mex)';

  -- MXN30 billion Programa Dual Revolvente de Certificados
     Bursatiles program 'BB-(mex)';

  -- Senior unsecured debt obligations 'B+/RR3'';

  -- Unsecured debt issued through the Certificados Bursatiles
     program 'BB-(mex)';

  -- Short-term national scale rating 'B (mex)';

  -- MXN2.5 billion short-term portion of Programa Dual Revolvente
     de Certificados Bursatiles program 'B (mex)'.


GRUMA SAB: Auditor Raises Going Concern Doubt
---------------------------------------------
Gruma, S.A.B. de C.V. incurred a net loss of Ps.12,339,758 in
fiscal year ended December 31, 2008, and had obligations to its
derivative counterparties as of December 31, 2008 in the amount of
Ps.11,230,170.  In addition, the company had long-term debt in the
amount of Ps.11,728,068 as of December 31, 2008, some of which it
will be required to renegotiate in order to be able to finance its
obligations to its derivative counterparties on a long-term basis.
"These facts raise substantial doubt about the Company’s ability
to continue as a going concern," PricewaterhouseCoopers LLP, in
Monterrey, Mexico, auditor of the Company, said.

The company posted Ps.44,792,572,000 net sales for the year ended
December 31, 2008, higher compared to the Ps.35,816,040,000 net
sales recorded for the same period in 2007.

As of December 2008, the company reported Ps.44,434,677,000 in
total assets, Ps.14,992,562,000 in current liabilities, and
Ps.20,160,565,000 in long-term liabilities.

On March 19, 2009, the Company entered into a term sheet that
provides for the financing of the obligations that would result
from the termination of all of its foreign exchange derivative
instruments that it had entered with Credit Suisse, Deutsche Bank
and JP Morgan Chase as counterparties.  On March 23, 2009, the
Company and the Derivative Counterparties agreed to terminate
certain additional derivative instruments and fixed the total
amount of obligations payable by the Company to the Derivative
Counterparties at US$668.3 million.  In connection with the Term
Sheet, the Company and the Derivative Counterparties have agreed
to negotiate in good faith to convert the Termination Amounts into
a secured term loan within 120 days of March 23, 2009.

As a condition of the Financing, the Term Sheet establishes a term
of 120 days for performing the following:

   (a) the Company and its counterparties should formalize this
       preliminary agreement,

   (b) the Company should enter into agreements to amend and
       restate its existing major credit facilities, and

   (c) the Company should settle the remaining derivative open
       positions.

If the Company, the Derivative Counterparties and its creditors
fail to enter into an agreement within the 120-day period
contemplated by the Term Sheet, the Termination Amount of US$668.3
million together with interest accrued will become immediately due
and payable.  In addition, if the Company fails to enter into the
agreement contemplated by the Term Sheet, certain other
indebtedness of the Company could become due and payable in the
event of the exercise by the creditors of their right to
accelerate repayment of these obligations under specified events
of default.

Management of the Company believes it will sign the final
agreement and will successfully renegotiate the bank loans subject
to this agreement.  If the Company is unable to successfully
consummate the Financing and the Credit Agreement Amendments, it
will attempt to restructure or refinance its existing financial
obligations, seek additional equity capital or sell assets since
it does not have sufficient liquidity to repay the US$668.3
million obligation owing to the Derivative Counterparties, and
other indebtedness that may become due at that time.  Although the
Company expects the successful consummation of the Financing and
the Credit Agreement Amendments, there can be no assurance that
this will be consummated.

A copy of the Company's Annual Report with the SEC is available
for free at http://ResearchArchives.com/t/s?3e92

                       About Gruma, S.A.B.

Headquartered in Monterrey, Mexico, Gruma, S.A.B. de C.V. --
http://www.gruma.com-- is a corn flour and tortilla producer and
distributor. The company conducts its U.S. and European operations
principally through its subsidiary, Gruma Corporation, which
manufactures and distributes corn flour, packaged tortillas, corn
chips and related products.  As of Dec. 31, 2007, Gruma held
approximately 8.62 % of the capital stock of Grupo Financiero
Banorte, S.A.B. de C.V.

                        *     *     *

As of July 1, 2009, the company continues to carry Standard and
Poor's B+ LT Issuer Credit ratings.  The company also continues to
carry Fitch Ratings' B+ LT Issuer Default ratings and B- Senior
Unsecured Debt ratings.



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

CL FINANCIAL: Assets Sale Put on Hold, Inspector Says
-----------------------------------------------------
CL Financial Limited's plan sale of its assets -- 55% stake in
Republic Bank and a 56% in Methanol Holdings in Trinidad &
Tobago -- is momentarily put on hold until the global economy
strengthens and stabilizes, LatinFrance report, citing Carl
Hiralal, inspector of financial institutions at T&T’s central
bank.

“There has been no decision to sell yet.  These are good assets
and this is not the best time to sell them,” Mr. Hiralal told
LatinFinance in an interview.

According to the report, bankers in Trinidad said that Canada’s
CIBC, which holds a 91% stake in the country’s First Caribbean
Bank, is the most likely buyer of the 55% stake in Republic.  The
report relates an unnamed banker said that the Republic Bank's
stakes could cost US$1.3 billion.

                       About CL Financial

CL Financial Limited is a privately held conglomerate in Trinidad
and Tobago.  Founded as an insurance company, Colonial Life
Insurance Company by Cyril Duprey, it was expanded into a
diversified company by his nephew, Lawrence Duprey.  CL Financial
is now one of the largest local conglomerates in the region,
encompassing over 65 companies in 32 countries worldwide with
total assets standing at roughly US$100 billion.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2009, the Trinidad and Tobago Express said Tobago
President George Maxwell Richards signed bailout bills for CL
Financial, giving the government the authority to control the
company's unit, Colonial Life Insurance Company, and giving the
central bank extensive powers to treat with CL Financial's
collapse and the consequent systemic crisis.



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

BANCO UNIVERSAL: Moody's Puts Low-B Deposit Ratings on Review
-------------------------------------------------------------
Moody's Investors Service has placed the Ba2 and Ba1 local
currency deposit ratings of Mercantil, C.A., Banco Universal and
Banco de Venezuela, S.A., Grupo Santander, respectively, on review
for possible downgrade in light of its global reassessment of the
level of systemic support currently incorporated in bank ratings.
At the same time, Moody's affirmed Mercantil's D- bank financial
strength rating with a stable outlook and placed Banvenez's D-
bank financial strength rating on review for possible downgrade.
Moody's only rates Mercantil and Banvenez in Venezuela.

The review of the local currency deposit ratings will determine to
what extent the level of systemic support incorporated in the
ratings should be more aligned to the Venezuelan government's B1
local currency bond rating.  Moody's expects to conclude the
review over the next three months.  The banks' B3/Not Prime
foreign currency deposit ratings were not affected by this review
and were therefore affirmed with a stable outlook.

The rating agency noted that the review of Banvenez's Ba1 local
currency deposit rating will also consider the elimination of
parental support currently incorporated in the rating as a result
of the bank's sale by Banco Santander, S.A., to the Venezuelan
government.

            Actions On Bank Financial Strength Ratings

The affirmation of Mercantil's D- bank financial strength rating
was based on Moody's scenario analysis of expected losses on the
bank's loan and investment portfolios, considering both
anticipated and highly stressed scenarios and the resulting impact
on the bank's capitalization.  This approach places greater
emphasis on capital adequacy and on the ability to replenish
capital through future earnings generation in the context of
Venezuela's economic downturn.

Moody's said that the review of Banvenez's bank financial strength
rating of D- will focus on the potential consequences of this sale
to the bank's strategic positioning and franchise value, as well
as to its overall risk management, including shifts in asset
allocation and profitability targets.  An assessment of transition
risk will also be part of the review.

Moody's indicated that its bank financial strength rating
methodology remains unchanged, though the weight attached to
capital and future core earnings has been increased to better
reflect the potential impact of the current financial crisis on
banks globally.

            Review Of Local Currency Deposit Ratings

The review of local currency deposit ratings will consider the
extent to which the Venezuelan government's ability to provide
support to its banking system, if needed, may converge with the
government's own debt capacity as a result of the ongoing global
economic and credit crisis.

Moody's believes that most governments are at least as likely, if
not more likely, to support their banking systems as they are to
service their own debts -- a view that has traditionally led to
bank ratings often benefiting from significant uplift due to
systemic support.  However, as the financial crisis continues, the
capacity of a country and its central bank to support the nation's
banks converges with, and may be constrained by, the government's
own debt capacity.

Factors that Moody's will consider in its assessment of systemic
support include (i) the size of the banking system in relation to
government resources, (ii) the foreign currency obligations of the
banking system relative to the government's own foreign exchange
resources, (iii) changes to the government's political patterns,
and (iv) the level of stress in the banking system.

The Venezuelan banking system is relatively small when compared to
the government's resources, with limited foreign currency
obligations.  However, Venezuelan banks have for some time managed
their operations in a highly unpredictable legal and economic
environment.  Continued high inflation in 2009 coupled with the
expected negative economic growth may also likely stress the
banks' performance as a result of lower business volumes and
declining asset quality.

The last actions taken on Mercantil and Banvenez were on
January 15, 2009, when Moody's confirmed the banks' B3 foreign
currency deposit ratings, which had been placed on review for
possible upgrade on September 19, 2008.  These actions were in
line with those pertaining to Venezuela's country ceiling for
foreign currency deposits, which constrains the B3 foreign
currency deposit rating of Mercantil and Banvenez.

These ratings were affected:

Mercantil, C.A., Banco Universal

  -- Bank financial strength rating of D-, affirmed

  -- Long term local currency deposit rating of Ba2, placed on
     review for possible downgrade

  -- Short term local currency deposit rating of Not Prime,
     affirmed

  -- Long term foreign currency deposit rating of B3, affirmed

  -- Short term foreign currency deposit rating of Not Prime,
     affirmed

Banco de Venezuela, S.A., Grupo Santander

  -- Bank financial strength rating of D-, placed on review for
     possible downgrade

  -- Long term local currency deposit rating of Ba1, placed on
     review for possible downgrade

  -- Short term local currency deposit rating of Not Prime,
     affirmed

  -- Long term foreign currency deposit rating of B3, affirmed

  -- Short term foreign currency deposit rating of Not Prime,
     affirmed


BANCO DE VENEZUELA: Moody's Puts Low-B Deposit Ratings on Review
----------------------------------------------------------------
Moody's Investors Service has placed the Ba2 and Ba1 local
currency deposit ratings of Mercantil, C.A., Banco Universal and
Banco de Venezuela, S.A., Grupo Santander, respectively, on review
for possible downgrade in light of its global reassessment of the
level of systemic support currently incorporated in bank ratings.
At the same time, Moody's affirmed Mercantil's D- bank financial
strength rating with a stable outlook and placed Banvenez's D-
bank financial strength rating on review for possible downgrade.
Moody's only rates Mercantil and Banvenez in Venezuela.

The review of the local currency deposit ratings will determine to
what extent the level of systemic support incorporated in the
ratings should be more aligned to the Venezuelan government's B1
local currency bond rating.  Moody's expects to conclude the
review over the next three months.  The banks' B3/Not Prime
foreign currency deposit ratings were not affected by this review
and were therefore affirmed with a stable outlook.

The rating agency noted that the review of Banvenez's Ba1 local
currency deposit rating will also consider the elimination of
parental support currently incorporated in the rating as a result
of the bank's sale by Banco Santander, S.A., to the Venezuelan
government.

            Actions On Bank Financial Strength Ratings

The affirmation of Mercantil's D- bank financial strength rating
was based on Moody's scenario analysis of expected losses on the
bank's loan and investment portfolios, considering both
anticipated and highly stressed scenarios and the resulting impact
on the bank's capitalization.  This approach places greater
emphasis on capital adequacy and on the ability to replenish
capital through future earnings generation in the context of
Venezuela's economic downturn.

Moody's said that the review of Banvenez's bank financial strength
rating of D- will focus on the potential consequences of this sale
to the bank's strategic positioning and franchise value, as well
as to its overall risk management, including shifts in asset
allocation and profitability targets.  An assessment of transition
risk will also be part of the review.

Moody's indicated that its bank financial strength rating
methodology remains unchanged, though the weight attached to
capital and future core earnings has been increased to better
reflect the potential impact of the current financial crisis on
banks globally.

            Review Of Local Currency Deposit Ratings

The review of local currency deposit ratings will consider the
extent to which the Venezuelan government's ability to provide
support to its banking system, if needed, may converge with the
government's own debt capacity as a result of the ongoing global
economic and credit crisis.

Moody's believes that most governments are at least as likely, if
not more likely, to support their banking systems as they are to
service their own debts -- a view that has traditionally led to
bank ratings often benefiting from significant uplift due to
systemic support.  However, as the financial crisis continues, the
capacity of a country and its central bank to support the nation's
banks converges with, and may be constrained by, the government's
own debt capacity.

Factors that Moody's will consider in its assessment of systemic
support include (i) the size of the banking system in relation to
government resources, (ii) the foreign currency obligations of the
banking system relative to the government's own foreign exchange
resources, (iii) changes to the government's political patterns,
and (iv) the level of stress in the banking system.

The Venezuelan banking system is relatively small when compared to
the government's resources, with limited foreign currency
obligations.  However, Venezuelan banks have for some time managed
their operations in a highly unpredictable legal and economic
environment.  Continued high inflation in 2009 coupled with the
expected negative economic growth may also likely stress the
banks' performance as a result of lower business volumes and
declining asset quality.

The last actions taken on Mercantil and Banvenez were on
January 15, 2009, when Moody's confirmed the banks' B3 foreign
currency deposit ratings, which had been placed on review for
possible upgrade on September 19, 2008.  These actions were in
line with those pertaining to Venezuela's country ceiling for
foreign currency deposits, which constrains the B3 foreign
currency deposit rating of Mercantil and Banvenez.

These ratings were affected:

Mercantil, C.A., Banco Universal

  -- Bank financial strength rating of D-, affirmed

  -- Long term local currency deposit rating of Ba2, placed on
     review for possible downgrade

  -- Short term local currency deposit rating of Not Prime,
     affirmed

  -- Long term foreign currency deposit rating of B3, affirmed

  -- Short term foreign currency deposit rating of Not Prime,
     affirmed

Banco de Venezuela, S.A., Grupo Santander

  -- Bank financial strength rating of D-, placed on review for
     possible downgrade

  -- Long term local currency deposit rating of Ba1, placed on
     review for possible downgrade

  -- Short term local currency deposit rating of Not Prime,
     affirmed

  -- Long term foreign currency deposit rating of B3, affirmed

  -- Short term foreign currency deposit rating of Not Prime,
     affirmed


GRUPO SANTANDER: Moody's Puts Ba1 Deposit Rating on Review
----------------------------------------------------------
Moody's Investors Service has placed the Ba2 and Ba1 local
currency deposit ratings of Mercantil, C.A., Banco Universal and
Banco de Venezuela, S.A., Grupo Santander, respectively, on review
for possible downgrade in light of its global reassessment of the
level of systemic support currently incorporated in bank ratings.
At the same time, Moody's affirmed Mercantil's D- bank financial
strength rating with a stable outlook and placed Banvenez's D-
bank financial strength rating on review for possible downgrade.
Moody's only rates Mercantil and Banvenez in Venezuela.

The review of the local currency deposit ratings will determine to
what extent the level of systemic support incorporated in the
ratings should be more aligned to the Venezuelan government's B1
local currency bond rating.  Moody's expects to conclude the
review over the next three months.  The banks' B3/Not Prime
foreign currency deposit ratings were not affected by this review
and were therefore affirmed with a stable outlook.

The rating agency noted that the review of Banvenez's Ba1 local
currency deposit rating will also consider the elimination of
parental support currently incorporated in the rating as a result
of the bank's sale by Banco Santander, S.A., to the Venezuelan
government.

            Actions On Bank Financial Strength Ratings

The affirmation of Mercantil's D- bank financial strength rating
was based on Moody's scenario analysis of expected losses on the
bank's loan and investment portfolios, considering both
anticipated and highly stressed scenarios and the resulting impact
on the bank's capitalization.  This approach places greater
emphasis on capital adequacy and on the ability to replenish
capital through future earnings generation in the context of
Venezuela's economic downturn.

Moody's said that the review of Banvenez's bank financial strength
rating of D- will focus on the potential consequences of this sale
to the bank's strategic positioning and franchise value, as well
as to its overall risk management, including shifts in asset
allocation and profitability targets.  An assessment of transition
risk will also be part of the review.

Moody's indicated that its bank financial strength rating
methodology remains unchanged, though the weight attached to
capital and future core earnings has been increased to better
reflect the potential impact of the current financial crisis on
banks globally.

            Review Of Local Currency Deposit Ratings

The review of local currency deposit ratings will consider the
extent to which the Venezuelan government's ability to provide
support to its banking system, if needed, may converge with the
government's own debt capacity as a result of the ongoing global
economic and credit crisis.

Moody's believes that most governments are at least as likely, if
not more likely, to support their banking systems as they are to
service their own debts -- a view that has traditionally led to
bank ratings often benefiting from significant uplift due to
systemic support.  However, as the financial crisis continues, the
capacity of a country and its central bank to support the nation's
banks converges with, and may be constrained by, the government's
own debt capacity.

Factors that Moody's will consider in its assessment of systemic
support include (i) the size of the banking system in relation to
government resources, (ii) the foreign currency obligations of the
banking system relative to the government's own foreign exchange
resources, (iii) changes to the government's political patterns,
and (iv) the level of stress in the banking system.

The Venezuelan banking system is relatively small when compared to
the government's resources, with limited foreign currency
obligations.  However, Venezuelan banks have for some time managed
their operations in a highly unpredictable legal and economic
environment.  Continued high inflation in 2009 coupled with the
expected negative economic growth may also likely stress the
banks' performance as a result of lower business volumes and
declining asset quality.

The last actions taken on Mercantil and Banvenez were on
January 15, 2009, when Moody's confirmed the banks' B3 foreign
currency deposit ratings, which had been placed on review for
possible upgrade on September 19, 2008.  These actions were in
line with those pertaining to Venezuela's country ceiling for
foreign currency deposits, which constrains the B3 foreign
currency deposit rating of Mercantil and Banvenez.

These ratings were affected:

Mercantil, C.A., Banco Universal

  -- Bank financial strength rating of D-, affirmed

  -- Long term local currency deposit rating of Ba2, placed on
     review for possible downgrade

  -- Short term local currency deposit rating of Not Prime,
     affirmed

  -- Long term foreign currency deposit rating of B3, affirmed

  -- Short term foreign currency deposit rating of Not Prime,
     affirmed

Banco de Venezuela, S.A., Grupo Santander

  -- Bank financial strength rating of D-, placed on review for
     possible downgrade

  -- Long term local currency deposit rating of Ba1, placed on
     review for possible downgrade

  -- Short term local currency deposit rating of Not Prime,
     affirmed

  -- Long term foreign currency deposit rating of B3, affirmed

  -- Short term foreign currency deposit rating of Not Prime,
     affirmed


MERCANTIL, C.A.: Moody's Puts Low-B Deposit Ratings on Review
-------------------------------------------------------------
Moody's Investors Service has placed the Ba2 and Ba1 local
currency deposit ratings of Mercantil, C.A., Banco Universal and
Banco de Venezuela, S.A., Grupo Santander, respectively, on review
for possible downgrade in light of its global reassessment of the
level of systemic support currently incorporated in bank ratings.
At the same time, Moody's affirmed Mercantil's D- bank financial
strength rating with a stable outlook and placed Banvenez's D-
bank financial strength rating on review for possible downgrade.
Moody's only rates Mercantil and Banvenez in Venezuela.

The review of the local currency deposit ratings will determine to
what extent the level of systemic support incorporated in the
ratings should be more aligned to the Venezuelan government's B1
local currency bond rating.  Moody's expects to conclude the
review over the next three months.  The banks' B3/Not Prime
foreign currency deposit ratings were not affected by this review
and were therefore affirmed with a stable outlook.

The rating agency noted that the review of Banvenez's Ba1 local
currency deposit rating will also consider the elimination of
parental support currently incorporated in the rating as a result
of the bank's sale by Banco Santander, S.A., to the Venezuelan
government.

            Actions On Bank Financial Strength Ratings

The affirmation of Mercantil's D- bank financial strength rating
was based on Moody's scenario analysis of expected losses on the
bank's loan and investment portfolios, considering both
anticipated and highly stressed scenarios and the resulting impact
on the bank's capitalization.  This approach places greater
emphasis on capital adequacy and on the ability to replenish
capital through future earnings generation in the context of
Venezuela's economic downturn.

Moody's said that the review of Banvenez's bank financial strength
rating of D- will focus on the potential consequences of this sale
to the bank's strategic positioning and franchise value, as well
as to its overall risk management, including shifts in asset
allocation and profitability targets.  An assessment of transition
risk will also be part of the review.

Moody's indicated that its bank financial strength rating
methodology remains unchanged, though the weight attached to
capital and future core earnings has been increased to better
reflect the potential impact of the current financial crisis on
banks globally.

            Review Of Local Currency Deposit Ratings

The review of local currency deposit ratings will consider the
extent to which the Venezuelan government's ability to provide
support to its banking system, if needed, may converge with the
government's own debt capacity as a result of the ongoing global
economic and credit crisis.

Moody's believes that most governments are at least as likely, if
not more likely, to support their banking systems as they are to
service their own debts -- a view that has traditionally led to
bank ratings often benefiting from significant uplift due to
systemic support.  However, as the financial crisis continues, the
capacity of a country and its central bank to support the nation's
banks converges with, and may be constrained by, the government's
own debt capacity.

Factors that Moody's will consider in its assessment of systemic
support include (i) the size of the banking system in relation to
government resources, (ii) the foreign currency obligations of the
banking system relative to the government's own foreign exchange
resources, (iii) changes to the government's political patterns,
and (iv) the level of stress in the banking system.

The Venezuelan banking system is relatively small when compared to
the government's resources, with limited foreign currency
obligations.  However, Venezuelan banks have for some time managed
their operations in a highly unpredictable legal and economic
environment.  Continued high inflation in 2009 coupled with the
expected negative economic growth may also likely stress the
banks' performance as a result of lower business volumes and
declining asset quality.

The last actions taken on Mercantil and Banvenez were on
January 15, 2009, when Moody's confirmed the banks' B3 foreign
currency deposit ratings, which had been placed on review for
possible upgrade on September 19, 2008.  These actions were in
line with those pertaining to Venezuela's country ceiling for
foreign currency deposits, which constrains the B3 foreign
currency deposit rating of Mercantil and Banvenez.

These ratings were affected:

Mercantil, C.A., Banco Universal

  -- Bank financial strength rating of D-, affirmed

  -- Long term local currency deposit rating of Ba2, placed on
     review for possible downgrade

  -- Short term local currency deposit rating of Not Prime,
     affirmed

  -- Long term foreign currency deposit rating of B3, affirmed

  -- Short term foreign currency deposit rating of Not Prime,
     affirmed

Banco de Venezuela, S.A., Grupo Santander

  -- Bank financial strength rating of D-, placed on review for
     possible downgrade

  -- Long term local currency deposit rating of Ba1, placed on
     review for possible downgrade

  -- Short term local currency deposit rating of Not Prime,
     affirmed

  -- Long term foreign currency deposit rating of B3, affirmed

  -- Short term foreign currency deposit rating of Not Prime,
     affirmed


PETROLEOS DE VENEZUELA: Fitch Assigns 'B+/RR4' Rating on Notes
--------------------------------------------------------------
Fitch Ratings has assigned a 'B+/RR4' rating to Petroleos de
Venezuela S.A.'s proposed US$3 billion zero coupon notes due in
2011.  These notes will be registered at Euroclear and/or
Clearstream.  Proceeds from the issuance are expected to be used
to fund capital expenditures and for other general corporate
purposes.  Fitch also has these ratings on PDVSA:

  -- Foreign currency Issuer Default Rating 'B+';
  -- Local currency IDR 'B+';
  -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4';
  -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4';
  -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4';
  -- Long-term National Scale rating of 'AAA(ven)'.

The Rating Outlook is Stable.

PDVSA's credit quality is inextricably linked to that of the
government of Venezuela.  It is a state-owned entity, whose
royalties and tax payments represent more than 50% of the
government's revenues, and it is of strategic importance to the
economic and social policies of the country.  In the past two
years, the government has used PDVSA's balance sheet to
nationalize electricity companies, as well as to acquire
industrial companies.  The government also took the additional
step during 2008 of changing PDVSA's charter and mission statement
to allow it to participate in any industry that could contribute
to the social development of the country, including health care,
education and agriculture.

PDVSA continues to be an important player in global energy.  A
strong balance sheet in line with worldwide competitors, sizeable
proven hydrocarbon reserves, strategic interests in international
downstream assets, private participation in upstream operations
and geographic proximity to the North American market provide
important competitive advantages that are difficult to undermine.
PDVSA's nature as a state-owned entity, combined with increased
government control over business strategies and internal
resources, underscores the close link between the company's credit
profile and that of the sovereign.

Venezuela's reported oil production has remained relatively stable
during the past four years at approximately 3.25 million barrels
per day despite high level of upstream investments.  From 2002 to
2005, total capital expenditures at PDVSA averaged US$3.1 billion
per year.  In 2006, 2007 and 2008, they climbed to US$7.2 billion,
US$12.8 billion and US$18.4 billion, respectively.  Higher oil
prices have also resulted in much higher contributions by PDVSA to
the government in the form of royalties, taxes, dividends, and
transfers to social and development funds.

During 2008, these contributions totaled approximately
US$40.6 billion compared to US$43.7 billion in 2007.  PDVSA's cash
generation is expected to drop sharply in 2009 due to lower
hydrocarbon prices.  Lower cash flow may reduce investments and/or
increase leverage to help the government fund capex and possible
macroeconomic imbalances. Despite lower expected prices, the
company's planned investments are sizeable, totaling an estimated
US$121.5 billion over the next five years, of which up to
US$27.7 billion may not be related to the oil and gas industry.
Expropriation of multinational oil companies' investments in the
heavy oil projects during 2007 by the Venezuelan government and
more recently the nationalization of oil and gas service companies
could make it difficult to attract the needed capital and
expertise to increase production.  In addition, the arbitration
initiated by ExxonMobil and ConocoPhillips to recover the market
value of their projects could delay private sector participation
in the industry's development.

As of Dec. 31, 2008 total debt equalled US$15.1 billion.  An
estimated 11% or US$1.7 billion of the company's obligations were
characterized as short term compared to US$4.5 billion
unrestricted cash on hand.  Overall, PDVSA has an attractive
balance sheet, with total debt to EBITDA averaging 0.3 times (x)
since 2004 and total debt to capitalization of 11%.  Adjusted debt
over EBITDAR is in line with worldwide competitors at 1.1x as of
the end of 2008.  However, PDVSA has limited access to
international capital markets and its cost of capital remains
vulnerable to investor concerns over the company's exposure to
sovereign risk.

Liquidity is highly dependent on cash on hand and cash flow
generation which turned negative at the end of 2008.  In the
fourth quarter last year PDVSA's EBITDA was negative US$6 billion
due to a 58% decline in price of the Venezuelan oil mix, higher
costs that reflect an inflation rate of about 30% while the
foreign exchange rate remains fixed, and substantial subsidies in
the domestic market.  Fitch expects margin pressures to continue
in the first half of 2009 and to be exacerbated by PDVSA's 364
Mbpd oil production cuts to comply with OPEC quotas that took
effect Jan. 1, 2009.  Margins should improve in the second half
the year as oil prices increase and the company reduces costs
through the recently announced nationalization of oil service
companies.

PDVSA is Venezuela's national oil company, with reported oil
production of 3.235 MMbpd, refining capacity of 3.035 MMbpd and
proved developed hydrocarbon reserves of 22.967 MMMboe as of
December 2008.



==========================
V I R G I N  I S L A N D S
==========================

PLAZA MANAGEMENT: Chapter 15 Settlement Approved
------------------------------------------------
Plaza Management Overseas SA received approval from the U.S.
Bankruptcy Court for the District of New Jersey in Newark for a
settlement with an affiliate of Zurich-based Credit Suisse Group
AG, Bloomberg's Bill Rochelle reported.  The settlement covers
capital calls and “satisfies all obligations to creditors,” the
bankruptcy judge said in his opinion, according to the report.

As reported by Troubled Company Reporter on May 27, 2009, the
Bankruptcy Court ruled that Plaza Management's bankruptcy in the
British Virgin Islands is the "foreign main proceeding."  Plaza
Management obtained the ruling after it presented the settlement
with Credit Suisse Group.

The Credit Suisse affiliate had previously argued in filing with
the U.S. Bankruptcy Court for the District of New Jersey that
there is "substantial evidence that the Debtors have attempted to
orchestrate a fraud" on lenders. Credit Suisse points to what it
called a "sham" settlement in which assets worth more than $340
million were transferred to a related party.  Saying it invested
more than $750 million, Credit Suisse then said that Plaza
Management is not eligible for Chapter 15 because the procedures
in the British Virgin Islands don't have court supervision and
aren't bankruptcy or insolvency proceedings.

British virgin Islands-based Plaza Management Overseas SA is a
family-owned manager of investment portfolios.  It filed for
Chapter 15 protection on March 18 (Bankr. D. N.J., Case No. 09-
16545).



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

LEAR CORP: Operations Outside U.S. Excluded from Bankr. Filing
--------------------------------------------------------------
Lear Corporation has reached an agreement in principle regarding a
consensual debt restructuring with steering committees
representing its secured lenders and its bondholders.  The Company
plans to commence shortly the proposed restructuring under court
supervision pursuant to a voluntary bankruptcy filing under
Chapter 11 of the United States Bankruptcy Code by the Company and
certain of its U.S. and Canadian subsidiaries.  The agreement in
principle provides that, subject to certain limited exceptions,
Lear's trade creditors will be paid in full.

The Company anticipates being in default under its 8.50% Senior
Notes due in 2013 and 8.75% Senior Notes due in 2016, as the
30-day grace period applicable to the semi-annual interest payment
due on such notes will expire on July 2, 2009.  In addition, in
light of the pending reorganization plan, the Company has not made
principal and interest payments due under its senior credit
facility on June 30.

            Operations Outside North American Excluded

Lear's subsidiaries outside the U.S. and Canada would not be part
of the bankruptcy filing.  The Company's operations outside the
United States and Canada are well-capitalized, well-positioned and
have a strong backlog of new business.

Given the unprecedented economic downturn and corresponding
decline in global automobile production volumes, as well as
continued difficult conditions in credit markets generally, Lear's
Board of Directors concluded that to protect the long-term
business interests of the Company, this protective action was the
fastest and most effective way to delever its capital structure.
During the reorganization process, Lear is committed to continuing
to deliver to its customers the superior quality, service and
innovation they expect.

The Company's restructuring plan has the support of a majority of
the members of a steering committee of the Company's secured
lenders and a steering committee of bondholders acting on behalf
of an ad hoc group of bondholders.  The Company is seeking support
for its restructuring plan from additional lenders and
bondholders.  However, no assurance can be given as to the level
of additional support for the restructuring the Company ultimately
will be able to obtain from its lenders and bondholders.

              $500-Mil. DIP Loan from JPMorgan, Citi

The Company has received commitments from a syndicate of secured
lenders, led by J.P. Morgan and Citigroup, for $500 million in new
money debtor-in-possession financing.  The proposed DIP financing,
subject to customary conditions, provides additional financial
flexibility that supplements Lear's significant existing cash
balances.  Additionally, the DIP agreement provides that, subject
to certain conditions, the DIP financing will convert into exit
financing with a three-year term upon Lear's emergence from
Chapter 11.

Simpson Thacher & Bartlett LLP is representing JP Morgan as
administrative agent for Lear's senior secured lenders, including
pre-petition credit agreement lenders, DIP lenders and
exit/emergence lenders.  The Simpson Thacher team includes
bankruptcy partner Ken Ziman and financial services partner JT
Knight.

Bob Rossiter, Lear's Chairman, Chief Executive Officer and
President, said, "This restructuring is being undertaken to
maximize the long-term value of the Company.  Lear is a leading
global Tier 1 automotive supplier with excellent technical
capabilities in critical product lines -- seating systems, power
distribution and electronics, as well as a competitive, low-cost
footprint, a diverse customer base, a solid backlog of new
business and a strong cash position. With these strengths and the
additional flexibility we will have as a result of the proposed
DIP facility, we intend to complete the restructuring as quickly
as possible, and emerge as an even stronger and more competitive
partner to our customers."

Bob Rossiter continued, "We want to assure everyone -- customers,
suppliers, employees, and the communities of which we are a part
-- that Lear is committed to positioning our business for
sustainable success. We believe that the agreement in principle
with the steering committees of our secured lenders and
bondholders to support our plan of reorganization will enable us
to emerge expeditiously."

                         About Lear Corp.

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's headquarters are in Southfield, Michigan, and Lear is
traded on the New York Stock Exchange under the symbol [LEA].


* Eastern Caribbean Central Bank Sees Decline in Economy
--------------------------------------------------------
The economic situation for countries of the Eastern Caribbean
Currency Union is expected to decline in coming months,
Caribbean360.com reports.

According to the report, the Eastern Caribbean Central Bank
Governor Sir Dwight Venner said real Gross Domestic Product in the
Currency Union is projected to decline this year and next year.
"The projected decline in tourism and construction is over 14% in
2009 and a little less in 2010.  Governments' current revenue is
projected to fall by approximately 12.9% in 2009," the report
quoted Sir Dwight as saying.

Mr. Venner, the report relates, said the developments in the
international economy have eroded conditions in the ECCU.

The report notes Mr. Venner said inflows of travel receipts and
foreign direct investment (FDI) have contracted.

"Travel receipts fell by 2.5% in 2008, in contrast to a 3.0%
increase in 2007.  Foreign direct investment decreased by 29.1%,
consistent with the slow-down in direct investment-related
construction activity in some member countries.  By contrast an
increase of 14.6% was recorded in FDI inflows for 2007.  These
inflows have accounted for, on average 27.5% and 22.5% of GDP
respectively from 2005 through 2008," the report quoted Mr. Venner
as saying.  "This had a negative impact on central governments'
finances and debt," Mr. Venner added.


                            ***********

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.


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