/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090727.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 Monday, July 27, 2009, Vol. 10, No. 146 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Owner Seeks to Block Sale of Private-Equity Stake STANFORD INT'L: SFG Receiver May Get Involved in Local Liquidation A R G E N T I N A PUENTE HNOS: Moody's Affirms 'B3' Global Insurance Rating * ARGENTINA: Economy Won’t Fall Into a Recession, Minister Says B A R B A D O S * BARBADOS: Signs EUR10.13MM Financing Deal With European Union B E R M U D A FOUNDING PARTNERS: Supreme Court Enters Wind-Up Order MEA GP: Creditors' Proofs of Debt Due on August 5 MEA GP: Members' Final Meeting Set for August 25 XL CAPITAL: Sells U.S. Life Reinsurance Scor Group's Unit B R A Z I L CAIXA ECONOMICA: Expects Good Mortgage Growth in 2010 COMPANHIA DE SANEAMENTO: Moody's Confirms 'Ba3' Rating on Bonds COSAN SA: Fitch Assigns Issuer Default Rating at 'BB-' USINAS SIDERURGICAS: Says Worst Slump is Over C A Y M A N I S L A N D S BROOKLANDS EURO: Fitch Downgrades Ratings on Six 2002-1 Notes DARWIN ALPHA: Placed Under Voluntary Wind-Up H3 JAPAN: Creditors' Proofs of Debt Due on July 31 LONGACRE EUROPEAN: Creditors' Proofs of Debt Due on July 31 MALLET GLOBAL: Creditors' Proofs of Debt Due on July 29 MEDIA PARTNERS: Creditors' Proofs of Debt Due on August 21 MEDIANATION INC: Creditors' Proofs of Debt Due on August 21 PERCEPTION INVESTMENTS: Shareholder Receives Wind-Up Report SPRINGBOK CAPITAL: Creditors' Proofs of Debt Due on July 28 VOLKSWAGEN INVESTMENTS: Placed Under Voluntary Wind-Up WOODALLEN GLOBAL: Creditors' Proofs of Debt Due on July 28 C O L O M B I A BANCOLOMBIA SA: Sees Loan Portfolio to Grow 10% Or More in 2009 ECOPETROL SA: Gov't May Sell 89.9% Stake to Finance Projects D O M I N I C A DOMINICA AGRICULTURAL: CariCRIS Assigns BB+ Currency Ratings D O M I N I C A N R E P U B L I C BANCO BHD: Fitch Affirms Issuer Default Rating at 'B' BANCO MULTIPLE: Fitch Affirms Issuer Default Rating at 'B-' G U A T E M A L A BANCO INDUSTRIAL: Moody's Affirms 'D' Bank Strength Rating J A M A I C A CASH PLUS: Supreme Court Issues Official Shutdown Order M E X I C O ALESTRA S: Fitch Affirms Issuer Default Rating at 'B+' CEMEX SAB: Expects to Posts Drop in Q2 Sales & Profits CORPORACION DURANGO: Mexican Court OKs Reorganization Plan P E R U DOE RUN PERU: Has Agreement to Furlough Employees DOE RUN PERU: Peruvian Gov't May Extend PAMA Deadline T R I N I D A D & T O B A G O BRITISH WEST: Gov't to Stick to 20 Cents Per Share Offer for Stock CL FINANCIAL: Mulls Gov't-Backed Bonds to Raise Money to Pay Debt CL FINANCIAL: Clico Investment Bank to Auction Off Assets V E N E Z U E L A PETROLEOS DE VENEZUELA: Faces Labor Tension X X X X X X X X * BOND PRICING: For the Week July 20 to July 24, 2009 - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Owner Seeks to Block Sale of Private-Equity Stake ----------------------------------------------------------------- Robert Allen Stanford's lawyers asked U.S. District Judge David Godbey in Dallas to block plans by the Stanford Financial Group court-appointed receiver, Ralph Janvey, to sell some of Mr. Stanford's private-equity portfolio, Laurel Brubaker Calkins at Bloomberg News reports. As reported in the Troubled Company Reporter-Latin America on July 23, 2009, Bloomberg News said Mr. Janvey asked for emergency approval to sell Mr. Stanford's stake in two limited partnerships to avoid meeting cash calls or diluting the investments. The report related Kevin Sadler, a lawyer for receiver Mr. Janvey, said in a court filing that Mr. Stanford’s companies are already past-due on US$2.5 million in capital calls issued by two Israeli development funds since the U.S. Securities and Exchange Commission sued Mr. Stanford and seized his businesses. If the stakes aren’t sold by July 27, Mr. Stanford’s US$14.3 million investment in the two funds will shrink to US$400,000, Mr. Sadler added. Bloomberg News noted that Mr. Janvey’s advisers negotiated a sale price of US$4.1 million for the stakes in Israel Opportunity Fund I and II, which would generate US$1.6 million in cash for the receivership estate. The report related that the remaining US$2.5 million would go to cover the outstanding capital calls and relieve the Stanford companies of US$61 million in future capital commitments to the two funds. 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 before the U.S. District Court in Dallas, Texas, 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 criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). STANFORD INT'L: SFG Receiver May Get Involved in Local Liquidation ------------------------------------------------------------------ Caribbean360.com reports Stanford Financial Group court-appointed receiver, Ralph Janvey, may get involved in Stanford International Bank Limited's liquidation proceedings after the Eastern Caribbean Court of Appeal said that he can challenge a High Court in Antigua's statement, which said he has no right to take part in the process. Caribbean360.com says Mr. Janvey was denied any role in winding up operations at SIBL by the Antigua and Barbuda High Court in April. SIBL proceedings are being led by joint liquidators Nigel Hamilton-Smith and Peter Wastell, client partners at British firm Vantis Business Recovery Services. "The Court of Appeal decided that the U.S. receiver should be given leave to appeal against Justice Harris' refusal to allow the U.S. receiver to participate in the winding up petition as an interested person," the report quoted Stuart Isaac QC, one of the attorneys representing Mr. Janvey, as saying. "That matter will now proceed to a full hearing in front of the Court of Appeal at one of its future sessions," Mr. QC said. However, the report points out that the Court of Appeal denied Mr. Janvey's request for a stay of execution that would prevent Mr. Hamilton-Smith and Mr. Wastell from carrying out their duties as liquidators. The report relates it also decided not to allow him to admit new evidence in his appeal against the High Court decision. According to Caribbean360.com, Mr. Janvey has been challenging the Antigua liquidators for control of all the assets that have been located. As reported in the Troubled Company Reporter-Latin America on July 7, 2009, a trial court in the United Kingdom issued a decision that recognized the Antiguan Liquidators as "foreign representatives" in the U.K. for SIBL, and recognized the Antiguan liquidation proceeding for SIBL as the "foreign main proceeding" for SIBL, at least so far as UK law goes. In the same decision, the court also recognized, as a matter of U.K. law, the Receiver as the receiver for the other defendants in the U.S. receivership. If the decision is not reversed on appeal, and ignoring any asset freezes, the decision would give the Antiguan Liquidators powers over assets of SIB that are located in the United Kingdom. Caribbean360.com says Mr. Janvey has since appealed that ruling. 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 before the U.S. District Court in Dallas, Texas, 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 criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). ================= A R G E N T I N A ================= PUENTE HNOS: Moody's Affirms 'B3' Global Insurance Rating --------------------------------------------------------- Moody's Latin America has affirmed Puente Hnos SGR's B3 global local-currency insurance financial strength rating; at the same time, it upgraded to A3.ar from Baa1.ar its IFS rating for Puente on Argentina's national scale. Both ratings now carry a stable outlook. According to Moody's, the affirmation of Puente's B3 IFS primarily reflects its stable financial and business profile. The recent financial performance of the guarantor is indicated by its adequate profitability and fee growth and low leverage. The company maintains a high degree of integration with Puente Sociedad de Bolsa -- a Buenos Aires Stock Exchange brokerage firm which is part of the same economic group. The integration with the group's brokerage firm has benefited Puente because this sponsor of the guarantor enjoys significant market share in the local check-trading business, which Puente in turn guarantees. Furthermore, management's ongoing plans to enter and develop new markets are another positive development, as this could improve its overall market presence and size. Moody's also noted another positive credit consideration, which is the recent favorable decision by the National Chamber of Appealing for Commercial Issues regarding Puente's ability to continue operating normally as a financial guarantor in Argentina. Previously, in 2007, the Small and Medium Size Secretary had imposed the revocation of Puente's authorization to operate in the market but on June 2, 2009, the National Chamber of Appealing for Commercial Issues declared the revocation null or invalid. Although the uncertainties related to Puente's potential business revocation and liquidation are no longer present, other rating factors are constraining the positive regulatory development. Specifically, Moody's cited the deteriorating credit quality of the guarantor's investments, the currently weaker operating environment in Argentina and the recessionary economy and activity in the country which could increase claims and/or diminish future recoveries for Puente under the guarantees. Among Moody's other concerns are the expected increase in Puente's operational leverage (the ratio of outstanding guarantees to investments) going forward given the removal of the regulatory uncertainty facing the company, as well as its still relatively high client concentration among its guarantees and the owners' aggressive capital management of the company in terms of their extracting significant dividends. Although these credit concerns resulted in the affirmation of global local-currency IFS rating, Moody's said the recent removal of the regulatory uncertainty and the ability of the guarantor to now expand its business was positive enough to warrant the upgrade in the national scale IFS rating to A3.ar from Baa1.ar. Moody's also noted that Puente's better profitability and operational leverage relative to other B3 guarantors and insurers in Argentina was a driver of the upgrade of the national scale rating. Based in Buenos Aires, Puente Hnos. SGR is a small financial guarantor; it reported total assets of AR$26 million as of the first quarter of 2009, ended March 31. Outstanding guarantees reached almost AR$24 million, and the company posted a net profit of AR$0.1 million, which was in line with that of the same period in 2008. NOTE: Moody's national scale insurance financial strength ratings rank an enterprise's financial strength on a relative basis in comparison with other firms within the same country. Such ratings are designed for use at the local (national) level, and they are not globally comparable. For Argentine companies, national scale ratings carry the identifier of ".ar". In contrast, global local- currency insurance-financial strength ratings indicate the relative credit risk of an insurance company on a globally comparable scale. In the case of ratings of insurers domiciled in a country with a speculative grade sovereign rating, these ratings are the result of these, among several factors: the political risk; the risk of a generalized debt moratorium; the weakness of the legal environment or framework; and the risk of interference in the functioning of the financial system. Taken together, the national scale and global local-currency ratings provide a more comprehensive opinion about the credit risk of the company. Moody's insurance financial strength ratings are opinions about the ability of insurance companies to punctually pay senior policyholder claims and obligations. * ARGENTINA: Economy Won’t Fall Into a Recession, Minister Says --------------------------------------------------------------- Argentina’s economy won’t fall into a recession this year amidst economists' forecast that the country's economy will shrink in 2009, Bill Faries at Bloomberg News reports, citing Cabinet Chief Anibal Fernandez Argentina’s economy will contract 3.3 percent this year after growing 6.8 percent in 2008, according to the median estimate of six economists surveyed by Bloomberg. The report relates the government on July 17 reported that the economy in May failed to post year- on-year growth for the first time since November 2002. According to the report, citing the National Statistics Agency, industrial production rose for the first time this year in June, climbing 0.6% from a year earlier, while output fell a seasonally adjusted 0.6% from May. The report notes economists and politicians including Vice President Julio Cobos said the the National Statistics Agency’s reports overestimate growth and underestimate inflation. Economy Minister Amado Boudou unveiled on July 21 a plan to help “strengthen” the institute, Bloomberg News says. * * * As reported by the Troubled Company Reporter - Latin America on December 23, 2008, Fitch Ratings downgraded the Republic of Argentina's long-term local currency issuer default rating to 'B-'; country ceiling to 'B'; and performing bonds in foreign and local currency governed by Argentine law to 'B-/RR4'. The rating outlook on the local currency IDR is Stable. In addition, Fitch affirmed the country's long-term foreign currency IDR remains in Restricted Default ('RD'); short-term IDR at 'B'; performing bonds in foreign currency governed by foreign law at 'B-/RR4'; defaulted senior unsecured notes at 'CC/RR4'; and defaulted collateralized Brady bonds at 'CCC-/RR3'. =============== B A R B A D O S =============== * BARBADOS: Signs EUR10.13MM Financing Deal With European Union --------------------------------------------------------------- Barbados signed a EUR10.13 million (BDS $28 million) financing agreement with the European Union to assist with the modernization of this country's International Business and Financial Services Sector. The funds will also give effect to the European Community's contribution to the 2008 Annual Action Programme on Accompanying Measures for Sugar Protocol Countries. Minister of State in the Ministry of Finance, Investment and Telecommunications, Senator Darcy Boyce, signed the accord on behalf of the Barbados Government, while Head of the European Delegation, Ambassador Mr. Valeriano Diaz, initialed on behalf of Europe. The ceremony was held in the Committee Room of Parliament Buildings. The first tranche of 4.75 M Euros (BDS $13M) will be made available subject to compliance with EU General Conditions, while the second tranche will be disbursed against specific performance indicators such as quarterly or annual reports. The money is part of the EU's annual development assistance, following the reform of the European Union's sugar regime. In his remarks, Senator Boyce said: "The resources of the Accompanying Measures for Sugar Protocol Countries Initiative 2007-2010 is provided by way of Budget Support rather than direct Project Financing as occurred in previous programmes. In order to qualify, it therefore requires the preparation of a Multi-Annual Action Plan which consists of a number of projects for the said period, that is, 2007 - 2010. One such project is the support to the International Business and Financial Services Sector." The Barbados-European Union relationship at the national level is governed essentially by three main instruments, the Ninth European Development Fund Country Strategy Paper and National Indicative Programme (NIP) 2002 - 2007; the 10th EDF Country Strategy Paper and NIP 2008 - 2013, and the Barbados Adaptation Strategy 2006 - 2014, through the Accompanying Measures for Sugar Protocol Countries. The Country Strategy Paper of the Ninth EDF provided for approximately Euros $10.5 million or (BDS. $27.2 million) in budget support to reform the Health Sector, a project that has been ongoing for the last four years and set to end this year. The Program seeks to implement priority areas of the National Strategic Plan for Health, 2002-2012. It also provides for a Technical Cooperation Facility in the amount of Euros $300,000 (BDS. $778,000) to support initiatives complementary to the Health Sector. A major initiative funded by the Facility has been the establishment of the Non-State Actors Advisory Panel. The 10th EDF covers the period 2008 - 2013 and provides approximately Euros $9.8 million (BDS. $24.7 million), its major focus is on the development of skills which will absorb 85 per cent of the resources under this program. According to Senator Boyce "the most significant resources from the European Commission will come from the mechanism, the AMPS. This mechanism arose out of the 2006-2014 Barbados Adaptation Strategy which was established to support Sugar Protocol Countries as a result of a 36 per cent decline in sugar export revenues, provides grant funding to the tune of 37.4 M Euros or BDS. 90M for budget support for the period 2007- 2010. " Ambassador Diaz in commending the Government of Barbados, said it "should be recognized for its unwavering guard of an international reputation as a jurisdiction of quality and integrity in the realm of international business and financial services". He added: "The expansion of this sector is naturally central to the country's economic diversification strategy and the EC is committed to continue supporting its expansion." The EC will be contributing BDS$1.2 M in technical assistance towards the establishment of an international Institute of Financial Risk and Regulation. This institute will share the physical premises of the Cave Hill School of Business of the University of the West Indies, and will have the principle purpose of becoming an internationally accredited centre, developing world-class training regulators, relevant Government officials, private risk managers and general managers in financial service companies in the areas of anti-money laundering, financial regulation, corporate governance and risk management. It will also seek to offer courses that lead to internationally recognized certification in these specific and related areas." Through support to the International Business and Financial Services Sector, the program will contribute significantly to addressing priorities in respect of competitiveness, employment creation and the maintenance of real wages. ============= B E R M U D A ============= FOUNDING PARTNERS: Supreme Court Enters Wind-Up Order ----------------------------------------------------- On July 17, 2009, an order to wind up the operations of Founding Partners Capital (Bermuda) Limited was made by the Supreme Court of Bermuda. The official receiver was appointed as provisional liquidator. MEA GP: Creditors' Proofs of Debt Due on August 5 ------------------------------------------------- The creditors of MEA GP Ltd are required to file their proofs of debt by August 5, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 17, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda MEA GP: Members' Final Meeting Set for August 25 ------------------------------------------------ The members of MEA GP Ltd will hold their final general meeting on August 25, 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 July 17, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda XL CAPITAL: Sells U.S. Life Reinsurance Scor Group's Unit --------------------------------------------------------- XL Capital Ltd. has sold its U.S. life reinsurance operations, XL Re Life America Inc., to Scor Global Life US (SGL), a unit of Paris-based Scor Group, for US$45.1 million, Jonathan Kent at the Royal Gazette reports. The report relates XL Capital said it was exploring options for its life businesses as it sought to sharpen its focus on its core property and casualty units. According to the report, an XL spokeswoman said that the deal would not affect any Bermuda-based staff, only a small number of US-based employees. "SGL intends to offer employment to the XLRLA team upon consummation of the transaction," Scor said in a statement obtained by the news agency. The transaction is expected to close on September 30, 2009 and is subject to regulatory approval and normal closing conditions, the report says. About XL Capital Headquartered in Hamilton, Bermuda, XL Capital Ltd provides insurance and reinsurance coverages through its operating subsidiaries to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. As of December 31, 2008, XL Capital Ltd reported total invested assets of US$34.3 billion and shareholders' equity of US$6.6 billion. * * * As reported by the Troubled Company Reporter-Latin America on Feb. 18, 2009, Moody's Investors Service affirmed XL Capital Ltd's "Ba1" preferred stock rating. =========== B R A Z I L =========== CAIXA ECONOMICA: Expects Good Mortgage Growth in 2010 ----------------------------------------------------- Caixa Economica Federal expects "good growth" in real estate loans in 2010 on booming demand for low-income housing, Elzio Barreto at Reuters reports, citing Chief Executive Maria Fernanda Ramos Coelho. According to the report, the bank's total credit portfolio has reached BRL100 billion (US$52.5 billion), surpassing the target of BRL90 billion set for the end of 2009. The report relates the bank has already revised its target for the loan portfolio twice because of an increase in mortgages and loans backed by worker salaries. "We have had really strong growth," Mr. Coelho told Reuters in an interview. Reuters says the bank's credit portfolio has surged nearly 60% over the past year, with room to boost lending by another BRL70 billion based on its capital requirements. Marcos Vasconcelos, the bank's vice president of control and risk, the report notes, said default rates as measured by loans that have remained unpaid for more than 90 days have remained stable for consumer loans, near the 5.9% level at the end of 2008. Reuters recalls the bank has lent about BRL19 billion in mortgages so far in 2009, from an average of BRL5 billion just four years ago. The report relates it has revised its target for mortgage lending this year to BRL26 billion from BRL22 billion as demand for low-income housing surged after the government unveiled a US$15 billion plan to build 1 million homes by 2011. Caixa Economica expects to settle by October discussions with the central bank over rules to issue mortgage-backed securities, the report adds. About Caixa Economica Headquartered in Brasilia, Caixa Economica Federal -- http://www.caixa.gov.br-- is a Brazilian bank and one of the largest government-owned financial institutions in Latin America. Founded in Jan. 12, 1861, Caixa Economica is the second biggest Brazilian bank, second only to Banco do Brasil, and offers services in thousands of Brazilian towns, ranking third in Brazil in number of branches. The company has more than 32 million accounts and controls more than US$170 billion. It is responsible for executing policies in the areas of housing and basic sanitation, the administration of social funds and programs and federal lotteries. * * * Caixa Economica Federal continues to carry a Ba2 foreign currency deposit rating from Moody's Investors Service. The rating was assigned by Moody's in May 2008. COMPANHIA DE SANEAMENTO: Moody's Confirms 'Ba3' Rating on Bonds --------------------------------------------------------------- Moody's confirmed the Ba3 local currency and A3.br on the Brazilian National Scale rating for the existing BRL166 million unsecured debentures due 2012 issued by Companhia de Saneamento do Parana - Sanepar but changed the outlook to negative. This concludes the review for possible downgrade that was initiated on December 12, 2008. The negative outlook reflects Moody's growing concerns with the impact of the continuing tariff freeze implemented by the Government State of Parana since 2005 on the company's cash flow, the uncertainties about the designation of the existing BRL789 million of advances for future capital increase and the ongoing shareholder dispute. The review of Sanepar's ratings was prompted by the announcement of its board of directors last December to convert around BRL789 million in intended advances for future capital increase into debt. This decision was, in Moody's opinion, a response by the major shareholder, the State Government of Parana, which was not allowed to convert these resources into capital. The equity conversion, primarily planned to be approved in a shareholders meeting scheduled for 10/20/2008, did not occur in the face of a court decision that prevented the state government from further increasing its equity participation in the company. The court decision was in response to the request of the minority shareholder, Domino Holdings S.A which was another step in a long judicial dispute that dates back to 2003 between the State Government and Domino on a shareholders agreement to control Sanepar. Another shareholders meeting to approve a capitalization of around BRL340 million was scheduled for July 16, 2009; however, once again Domino obtained a court injunction to prevent the capitalization until the dispute over the shareholders agreement is resolved. While the conversion of the advances into debt does not seem to be in the best interest of any of the shareholders, Moody's does not rule out that such a decision will be enforced if the State Government of Parana and Domino do not reach a definite agreement on the control of Sanepar's capital. There also remain uncertainties as to the final maturity, amortization schedule and interest rates in case these advances for future capital increase effectively become debt and the impact this would have on the company's liquidity position. The tariff freeze in place since 2005 also poses additional concerns on the company's ability to generate adequate cash flow in the face of a relatively sizeable capital expansion program. Preliminary projections indicate that despite lower operating margins stemming from no tariff adjustment in the past four years, Sanepar should still post healthy operating margins in 2009 while maintaining leverage at satisfactory levels compatible with the current Ba3 rating category. Nevertheless, operating margins and metrics will continue to weaken which could create downward rating pressure in 2010, particularly if expansion plans continue. The last rating action on Sanepar was December 12, 2008 when all ratings were placed under review for possible downgrade. Sanepar's ratings were assigned by evaluating factors believed to be relevant to its credit profile, such as i) the business risk and competitive position of Sanepar versus others within its industry or sector, ii) the capital structure and financial risk of Sanepar, iii) the projected performance of Sanepar over the near to intermediate term, and iv) Sanepar's history of achieving consistent operating performance and meeting financial plan goals. These attributes were compared against other issuers both within and outside of Sanepar's core peer group and Sanepar's ratings are believed to be comparable to ratings assigned to other issuers of similar credit risk. Headquartered in Curitiba, Brazil, Companhia de Saneamento do Parana - Sanepar is majority owned and controlled by the government of the State of Parana. Sanepar provides water treatment and distribution to 8.8 million consumers, and sewage service to 5.2 million consumers in 344 municipalities in the state of Parana and one municipality in the state of Santa Catarina. In the last twelve months ending March 31, 2009, SANEPAR reported net earnings of BRL131 million (US$66 million) on BRL1,301 million (US$656 million) in net revenues. COSAN SA: Fitch Assigns Issuer Default Rating at 'BB-' ------------------------------------------------------ Fitch Ratings has assigned 'BB-' local and foreign currency Issuer Default Ratings and a 'A-(bra)' National Scale Rating to Cosan S.A. Industria e Comercio and its subsidiary Cosan Combustiveis e Lubrificantes Ltda. Fitch has also assigned a 'BB-' rating to CCL's proposed US$300 million senior unsecured notes due 2014 issued through its wholly owned subsidiary, CCL Finance Ltd. The notes will be unconditionally and irrevocably guaranteed by CCL. The Rating Outlook for Cosan and CCL is Stable. Cosan's credit ratings reflect its strong market position as Latin America's largest agroenergy company. This position has enabled Cosan to access both the equity and debt capital markets frequently, mitigating to an extent the company's exposure to commodity price cyclicality, its volatile cash flow generation and its aggressive growth-by-acquisition strategy. Cosan's ratings also reflect the company's high leverage and its exposure to foreign exchange risk, as about 63% of its revenues during the fiscal year ended March 31, 2009 were related to exports. Cosan's ratings are exposed to event risk in the form of a large debt-led acquisition. The current rating category does not factor in any headroom for acquisitions, and it incorporates an expectation that Cosan's credit measures will gradually strengthen over the next few years as the company benefits from the results of its recent acquisitions and investments. The ratings further incorporate Cosan's attractive cost structure, a result of Brazil's competitive advantage in producing sugar and ethanol, the favorable outlook for ethanol consumption in the country and the strong long-term fundamentals of the sugar market. On Dec. 1, 2008, Cosan increased the integration of its business when it completed the purchase of Exxon's fuel distribution assets in Brazil (now under the name of CCL). This acquisition increased Cosan's refinancing risk as it was partially funded with BRL1.1 billion promissory notes from Bradesco. This note was originally scheduled to be repaid during November 2009, and Cosan has recently obtained a stand-by credit facility that enables this maturity to be postponed to November 2010 at their discretion. It represents the largest near-term refinancing risk for them. Given the characteristically tight margins in the distribution business, CCL presents a high refinancing risk on a standalone basis for the proposed US$ 300 million issuance of notes. Even though this issuance does not bear a formal guarantee from Cosan S.A., Fitch views CCL as a fully integrated business of Cosan, with centralized cash management and a strategic connection to the core businesses. As a result, CCL and the proposed note issuance have been assigned the same rating as Cosan. Cosan is expected to continue to invest in companies that will improve the vertical integration of its businesses, such as logistics, distribution and energy co-generation. Not only will these investments make cash flow more stable and predictable, but they should also create additional competitive advantages by eliminating logistics bottlenecks and strengthening the company's business flexibility. In the 11 months ended March 31, 2009, Cosan generated R$718 million of EBITDA and R$370 million of Funds From Operations. These figures (which include four months of CCL operations) compare favorably to an EBITDA of R$173 million and FFO of R$55 million obtained in the 12 months ended April 30, 2008. The improvements were boosted by improved sugar prices and higher average foreign exchange rates. Cosan's financial leverage is high compared to the average for the rating category. As of the fiscal year ended March 31, 2009, Cosan had a total adjusted debt to adjusted EBITDA ratio of 5.4 times (x), an improvement from 8.8x as of April 30, 2008. On a net basis, the adjusted leverage was at 4.1x in FY09, compared to 1.1x in FY08, as most of the cash proceeds from Cosan's equity raises were used in its investment program during FY09. The high leverage is mitigated by Cosan's satisfactory track record in accessing capital markets and the long-term profile of its debt. Consolidated adjusted total debt as of March 31, 2009 was R$4.9 billion and cash and marketable securities was R$719 million. Cosan's financial obligations are relatively evenly distributed between local and foreign currency debt. The average US$1 billion annual export flow and the long-term nature of the US$ debt (74% is long-term, and 37% of that relates to perpetual bonds) offset the foreign exchange risk associated with its debt. Cosan's aggressive expansion strategy is the major source of liquidity pressure for Cosan, as reflected by the company's recurring negative free cash flow. Cosan has been able to rely on its access to debt and equity capital markets (and to a lesser extent its own operational cash flow) to support this growth and keep a balanced liquidity position. In 2007, the parent holding company Cosan Ltd.'s successfully raised US$1.1 billion in its IPO at NYSE, and in 2008 Cosan S.A also raised BRL500 million in additional third-party equity. Around 42% of the company's total debt is related to capital markets (US$450 million in perpetual bonds and US$400 million senior unsecured notes maturing in 2017). With annual revenues of R$6 billion in the 11-month fiscal year closed in March 2009, Cosan is Brazil's largest producer, trader and exporter of sugar and ethanol. The sugar and ethanol business is carried out in 21 mills, (not including two greenfields starting-up in FY10), four refineries and two port terminals, which allow the group to run a vertically-integrated operation. After the recent announced merger with Nova America, it will reach a crushing capacity of 57 million tons of sugar cane, which represents 13% of Brazilian market and is nearly three times as much as the second largest player. USINAS SIDERURGICAS: Says Worst Slump is Over --------------------------------------------- Alexander Ragir and Diana Kinch at Bloomberg News report that Usinas Siderurgicas de Minas Gerais SA said the worst slump in the Company's history is over. According to the report, Company Chief Executive Officer Marco Antonio Castello Branco said Usiminas was “over” the worst period its history and Brazilian steel demand will “recover gradually” this quarter after stockpiles fell. The report relates the company said it will boost production to meet rebounding demand. The company's steel output, the report notes, may recover to 90% of full capacity levels during the second half of the year, from 50% in the second quarter. It will also restart two blast furnaces -- Ipatinga furnace and Cubatao furnace -- as domestic demand for flat-rolled steel and exports recovers, the company said in a statement obtained by the news agency. The report relates Ipatinga was switched off by the end of July 2008, and the Cubatao furnace by the end of August 2008. About Usinas Siderurgicas Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas do Minas Gerais S.A. aka Usiminas -- http://www.usiminas.com.br-- is principally engaged in the steel industry. The company has a production capacity of 4.7 million tons of crude steel per annum. The company produces non-coated steel (including slabs, heavy plates, hot- and cold-rolled sheets and coils) and galvanized sheets and coils. The company provides its products to the automotive, piping, building and electrical/electronic and agricultural and road machinery industries. In addition to its core business operations, it is also involved in the commercialization, import and export of raw materials, steel products and by-products; the provision of project development and research services; the provision of personnel training services, and the provision of mining, transportation, construction and technical assistance services. The company's products are sold in Brazil, as well as exported to other Latin American countries, the United States, China and South Korea, among others. * * * As of June 19, 2009, the company continues to carry Moody's Ba1 Suboridate Debt rating. ========================== C A Y M A N I S L A N D S ========================== BROOKLANDS EURO: Fitch Downgrades Ratings on Six 2002-1 Notes ------------------------------------------------------------- Fitch Ratings has downgraded six classes of Brooklands Euro Reference-Linked Notes 2002-1 and affirmed three classes: -- Class A+ (ISIN XS0238513344) affirmed at 'BB'; Outlook Negative; assigned a Loss Severity Rating of 'LS-3' -- Class A (ISIN XS0148886913) affirmed at 'CCC'; 'RR3' -- Class B1 (ISIN XS0148887481) downgraded to 'C' from 'CC'; Recovery Rating revised to 'RR6' from 'RR5' -- Class B2 (ISIN XS0148887721) downgraded to 'C' from 'CC'; Recovery Rating revised to 'RR6' from 'RR5' -- Class C (ISIN XS0148887994) affirmed at 'C'; Recovery Rating is 'RR6' -- Class D (ISIN XS0148888372) downgraded to 'D' from 'C'; Recovery Rating is 'RR6' -- Class E1 (ISIN XS0148888703) downgraded to 'D' from 'C'; Recovery Rating is 'RR6' -- Class E2 (ISIN XS0148889180) downgraded to 'D' from 'C'; Recovery Rating is 'RR6' -- Class G1 (ISIN XS0148948291) downgraded to 'C' from 'CC'; Recovery Rating revised to 'RR6' from 'RR5' The downgrades of classes D, E1 and E2 are a result of their principal write-downs following determination of the credit protection payment with respect to three credit events on RMBS assets. In addition, since Fitch's last review in March 2009, the transaction has experienced two more RMBS credit events which have not been settled. Currently, the reported principal value of both Class E1 and E2 is zero, while the Class D principal balance has decreased to EUR9.8 million. The downgrades of classes B1 and B2 reflect the decrease of their credit enhancement levels to 2.5%. These current levels of CE protection compare unfavorably with the current level of portfolio credit risk, with 22% of the portfolio rated in the 'BB' category, 5.3% in the 'B' category and 4.3% rated 'CCC+' or below. Given the thin nature of the two Class B tranches, Fitch has revised their respective Recovery Ratings to 'RR6' to reflect poor recovery prospects (0-10%) given default. Regarding the Class D notes, after determination of the two new credit events, Fitch expects that the Class D will be completely written-down at which point the Class C notes will begin to suffer principal write-downs. The downgrade of Class G1, comprising parts of Class B2 and F notes (equity notes), reflects the current credit risk of Class B2 and the zero principal value of Class F. The Class G1 note will continue to receive interest as long as the underlying Class B2 component receives cash flow. The issuer, Brooklands, is a special purpose vehicle incorporated with limited liability under the laws of the Cayman Islands. Brooklands provides protection to UBS AG, London Branch ('A+'/'F1+'/Outlook Stable) on a portfolio of reference credits with an initial notional value of EUR1bn. The ratings of Class A+ to E notes address the full and timely payment of interest and ultimate payment of principal. The ratings of the Class G1 notes address the ultimate payment of principal and a total return of 1% p.a. DARWIN ALPHA: Placed Under Voluntary Wind-Up -------------------------------------------- On April 30, 2009, a resolution was passed by the general partner of Darwin Alpha Recovery Master Fund L.P. that the partnership be wound up and dissolved in accordance with the terms of the Partnership Agreement. H3 JAPAN: Creditors' Proofs of Debt Due on July 31 -------------------------------------------------- The creditors of H3 Japan Fund are required to file their proofs of debt by July 31, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 9, 2009. The company's liquidator is: Avalon Management Limited Mourant du Feu & Jeune Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 or; Avalon Management Limited Harbour Centre, 42 North Church Street P.O. Box 1348, George Town Grand Cayman KY1-1108, Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 LONGACRE EUROPEAN: Creditors' Proofs of Debt Due on July 31 ----------------------------------------------------------- The creditors of Longacre European Capital (GP), Ltd. are required to file their proofs of debt by July 31, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 9, 2009. The company's liquidator is: Avalon Management Limited Mourant du Feu & Jeune Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 or; Avalon Management Limited Harbour Centre, 42 North Church Street P.O. Box 1348, George Town Grand Cayman KY1-1108, Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 MALLET GLOBAL: Creditors' Proofs of Debt Due on July 29 ------------------------------------------------------- The creditors of Mallet Global Events Master Fund, L.P. are required to file their proofs of debt by July 29, 2009, to be included in the partnership's dividend distribution. The partnership commenced wind-up proceedings on June 15, 2009. The partnership's liquidator is: Ogier c/o Shameer Jasani Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815 1802 Facsimile: (345) 949 1986 MEDIA PARTNERS: Creditors' Proofs of Debt Due on August 21 ---------------------------------------------------------- The creditors of Media Partners International Holdings Inc. are required to file their proofs of debt by August 21, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 25, 2009. The company's liquidator is: Wong Hon Chiu, Stephen Admiralty Centre, Tower 2, 22nd Floor 18 Harcourt Road, Hong Kong MEDIANATION INC: Creditors' Proofs of Debt Due on August 21 ----------------------------------------------------------- The creditors of Medianation Inc are required to file their proofs of debt by August 21, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 25, 2009. The company's liquidator is: Wong Hon Chiu, Stephen Admiralty Centre, 22nd Floor, Tower 2 18 Harcourt Road, Hong Kong PERCEPTION INVESTMENTS: Shareholder Receives Wind-Up Report ----------------------------------------------------------- The shareholder of Perception Investments Limited received on July 3, 2009, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Corporate Services Limited c/o Lindsay Cox P.O. Box 484GT, Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 949-7755 Facsimile: (345) 949-7634 SPRINGBOK CAPITAL: Creditors' Proofs of Debt Due on July 28 ----------------------------------------------------------- The creditors of Springbok Capital Master Fund, L.P. are required to file their proofs of debt by July 28, 2009, to be included in the partnership's dividend distribution. The partnership commenced wind-up proceedings on June 15, 2009. The partnership's liquidator is: Ogier c/o Shameer Jasani Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815 1802 Facsimile: (345) 949 1986 VOLKSWAGEN INVESTMENTS: Placed Under Voluntary Wind-Up ------------------------------------------------------ On June 17, 2009, a resolution was passed by the general partner of Volkswagen Investments Limited Partnership that the partnership be wound up and dissolved in accordance with the terms of the Partnership Agreement. WOODALLEN GLOBAL: Creditors' Proofs of Debt Due on July 28 ---------------------------------------------------------- The creditors of Woodallen Global Macro Master Fund, L.P. are required to file their proofs of debt by July 28, 2009, to be included in the partnership's dividend distribution. The partnership commenced wind-up proceedings on June 19, 2009. The partnership's liquidator is: Alan Tooker c/o Ogier Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: 345 769 3400 Facsimile: 345 769 3404 =============== C O L O M B I A =============== BANCOLOMBIA SA: Sees Loan Portfolio to Grow 10% Or More in 2009 --------------------------------------------------------------- Bancolombia S.A. expects its total loan portfolio rising 10% or "slightly more" in 2009 compared with 2008, Bancolombia Chief Executive Jorge Londono told Dow Jones Newswires in an interview. Inti Landauro at Dow Jones Newswires reports that the bank's total loan portfolio was worth COP44.64 trillion (US$22.85 billion) at the end of 2008. The report recalls six months, Mr. Londono, had said ago the bank's loan portfolio would grow between 8% and 10% this year. According to the report, Mr. Londono said the Colombian economy is going through the current crisis rather well. The report relates the country's economy in the second half of this year will probably be better than in the first half of this year, which will mean an improvement of business for Bancolombia. The report notes Mr. Londono said that due to the economic slump, the growth of Bancolombia's net profit has shrunk, though the slowdown was expected. "The slowdown was a bit weaker than what we had expected," Mr. Londono added. The report relates in 2008, the bank reported a record net profit of COP1.29 trillion, 19% higher than the profit reported in 2007; while return on equity was higher than 24% in 2008, but that ratio will be difficult to match in 2009. Dow Jones Newswires says in the first quarter of this year, the bank's consolidated net profit had expanded 23% to COP290 billion and a survey of five analysts shows they expect net profit to fall a median 20% in the second quarter to COP301 billion. As reported in the Troubled Company Reporter-Latin America on July 9, 2009, Bancolombia S.A.'s shareholders approved the issuance of up to 80 million preferred shares and authorized the company's board of directors to determine the specific terms of the issuance, including applicable timing for the offering or offerings of the preferred shares. Dow Jones Newswires notes Mr. Londono said the proceeds of such a sale would be used to increase the bank's ratio of equity to total assets in case the local regulators raise the legal minimum threshold. Proceeds would also be used to provide enough equity to boost lending if the economy picks up faster than expected or, possibly, to finance an acquisition. Mr. Londono added. About Bancolombia S.A. Bancolombia S.A. is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * In May 2009, Moody's Investors Service upgraded from D to D+, Bancolombia S.A.'s financial strength rating. The outlook on the BFSR was changed to "stable", from "positive". Bancolombia's long-term and short-term local currency deposit ratings of "Baa2" and "Prime- 3", as well as the long-term and short-term foreign currency deposit ratings of "Ba2" and "Not Prime" were affirmed by Moody's. Bancolombia's foreign currency subordinated debt rating of"Baa3" was also affirmed with a stable outlook by the rating firm. Fitch Ratings affirmed on June 2009 Bancolombia's long- and short- term Issuer Default Ratings and outstanding debt ratings as follows: Long-term foreign currency IDR at 'BB+'; Short-term foreign currency IDR at 'B'; Long-term local currency IDR at 'BB+'; Short-term local currency IDR at 'B'; Individual at 'C/D'; Support at '3'; Support Floor at 'BB-'. At the same time the rating for Bancolombia's subordinated debt maturing May 2017 was affirmed at 'BB'. The Rating Outlook is Stable. ECOPETROL SA: Gov't May Sell 89.9% Stake to Finance Projects ------------------------------------------------------------ The Colombian government is evaluating the possibility of selling part of its 89.9% stake in state-controlled oil company Ecopetrol SA to finance the construction of highway projects, Inti Landauro at Dow Jones Newswires reports, citing Finance Minister Oscar Ivan Zuluaga. According to the report, Mr. Zuluaga said the government has no concrete plans regarding the possible sale of Ecopetrol shares. The report relates a law approved by Congress authorizes the government to sell an additional 9.9% of Ecopterol after it floated 10.1% of the company. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. under the symbol ECOPETROL. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined-products. * * * As reported in the Troubled Company Reporter-Latin America on July 15, 2009 , Fitch Ratings assigned a 'BB+' rating to Ecopetrol S.A.'s proposed issuance of at least US$1 billion senior unsecured notes due 2019. Proceeds will be used for investments and general corporate purposes. =============== D O M I N I C A =============== DOMINICA AGRICULTURAL: CariCRIS Assigns BB+ Currency Ratings ------------------------------------------------------------ Caribbean Information and Credit Rating Services Limited has assigned ratings of CariBB+ (Foreign Currency Rating) and CariBB+ (Local Currency Rating) on its regional rating scale to the debt issue of the size of US$10 million of Dominica Agricultural, Industrial and Development Bank. These ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean is speculative. Dominica Agricultural, Industrial and Development Bank (DAID Bank) credit risk profile reflect the fact that it operates exclusively in a relatively weak, highly indebted economy and that it has limited access to funding for its core business. Additionally, its stagnated loan portfolio exhibits high levels of NPLs, increasing loan write offs and rescheduling. These weaknesses are, to some extent, mitigated by support from the Government of Dominica, its moderate financial performance and positive liquidity gaps. Going forward, access to increased funding as well as the planned organizational restructuring may improve the credit profile of the company. The bank operates exclusively in a relatively weak, highly indebted economy. Dominica’s economy is small, open and highly susceptible to exogenous factors such as international prices for oil, bananas and commodities. Additionally, the performance of its main sector, agriculture, remains highly vulnerable to natural disasters as evidenced by the passage of Hurricane Dean in 2007 and Hurricane Omar in 2008, both of which caused substantial losses. The tourism sector has limited growth potential which is further constrained by inadequate air access, lack of tourism infrastructure and a depressed travel market stemming from the global financial crisis. The fiscal performance continues to be strained as the government focuses on debt reduction. The economy’s high dependence on grant funding and remittances will be further curtailed as the global credit crunch persists. There has been limited access to credit lines from (international development agencies), the company’s primary funding sources. In the last 8 years DAID Bank has been unable to access credit lines from the Caribbean Development Bank as no Government guarantees were forthcoming while Dominica was under an International Monetary Fund program. Additionally, no funding was sought from the European Investment Bank because of foreign exchange losses which impacted earnings. The cessation of deposit-taking in December 2008 places an additional resource constraint. Limited access to funding led to marginal growth in the Bank’s asset base in the last 5 years. Moreover, the existing loan portfolio is characterized by high levels of non-performing loans (NPLs) and weak assets which CariCRIS estimates to be around 25% of gross loans in FY2008. The loan portfolio is concentrated in the education and mortgage sectors representing 56% of total loans in FY2008. An increase in the number of rescheduled loans as well as write offs has contributed to a fall in NPLs. Nevertheless, provisions for loan loss have been adequate, averaging EC $11.1 million for the period FY2004 to FY2008. These credit weaknesses are, to some extent, tempered by: The Government of the Commonwealth of Dominica, the majority shareholder, has over the years supported the Bank by providing guarantees for all its loans. By mandate, the DAID Bank is expected to fund higher-risk projects normally eschewed by their commercial banking counterparts. CariCRIS believes the company’s operations are of strategic importance specifically as a vehicle for the implementation of government’s economic and social development goals which is reflected in the loan composition. Government support is also manifested in the Bank’s tax-free status and its decision to forego dividends from DAID Bank. The GOCD has a moral obligation to continue to provide support to the Bank as it operations have far reaching implications on the social fabric. Additionally, by statute the government is obligated to provide financial support in times of financial distress. The Banks’ financial performance has been moderate in the last 5 years even in the face of limited funds available to grow its loan portfolio. The 5-year average for total income was EC $6.9 million, profits after tax was around EC $1 million (in the last 2 years), net interest income averaged EC $6.4 million and the Bank earned comfortable interest spreads of 4.4%. The company’s tax free status allows it to book higher levels of profits. On the other hand, dividend payouts to Dominica Social Security are fixed at EC $250,000 regardless of profit levels. The senior management team at DAID Bank is highly qualified and experienced in the regional financial sector. There is also a high level of stability as the average tenure is around 20 years. The recently appointed General Manager has over 20 years experience in development financing. Management has been able to generate profits for the period FY2006 to FY2008 and grow the loan portfolio, albeit marginally, against a backdrop of scarce funding since 2002. For the past four years DAID Bank had recorded positive liquidity gaps for all its maturity buckets with 10% in the less than 1 year bucket which augurs well for meeting short term liabilities. ================================== D O M I N I C A N R E P U B L I C ================================== BANCO BHD: Fitch Affirms Issuer Default Rating at 'B' ----------------------------------------------------- Fitch Ratings upgrades Dominican Republic-based Banco BHD's ratings: -- Long-term National rating to 'AA-(dom)' from 'A+(dom)'; -- Short-term National rating to 'F-1+(dom)' from 'F-1(dom)'. Fitch also affirms BHD's international ratings as specified in the full list of rating actions below. The Rating Outlook for BHD's international Issuer Default Ratings was revised to Stable from Positive given the challenging operating environment and the need to keep enhancing its capital base compared to other regional and international players rated in the higher end of the 'B' rating category. The upgrade of BHD's national scale rating reflects the bank's improved and sustained profitability, sound asset quality and improved market share and capital ratios; which compares favorably with local peers. Going forward, future changes to BHD's international and national ratings will be contingent upon a significant improvement of its capital base (in absolute terms and in regards to its quality); while a higher than expected deterioration of its profitability and asset quality indicators could result in a negative trend for its ratings. Also as part of the same rating action, Fitch Dominicana upgraded several ratings of subsidiaries of Centro Financiero BHD (sole shareholder of BHD) under the presumption of expected support that BHD would provide in case it should be required to those entities. Fitch takes these ratings actions on Banco BHD and its subsidiaries: Banco BHD -- Long-term foreign and local currency IDRs affirmed at 'B'; -- Short-term foreign and local currency IDRs affirmed at 'B'; -- Support affirmed at '5'; -- Individual affirmed at 'D'; -- Long-term National rating upgraded to 'AA-(dom)' from 'A+(dom)'; -- Short-term National rating upgraded to 'F-1+(dom)' from 'F- 1(dom); -- The Support Floor affirmed at 'NF'. The Outlook for the IDRs is revised to Stable from Positive. Banco de Ahorro y Credito Pyme BHD, S.A. -- Long-term National rating upgraded to 'AA-(dom)' from 'A+(dom)'; -- Short-term National rating upgraded to 'F-1+(dom)' from 'F- 1(dom). BHD Valores Puesto de Bolsa, S.A. -- Long-term National rating upgraded to 'AA-(dom)' from 'A+(dom)'; -- Short-term National rating upgraded to 'F-1+(dom)' from 'F- 1(dom). -- Senior Unsecured National rating upgraded to 'AA-(dom)' from 'A+(dom)'. BHD International Bank (Panama) SA -- Long-term National rating upgraded to 'AA-(dom)' from 'A+(dom)'; -- Short-term National rating upgraded to 'F-1+(dom)' from 'F- 1(dom). BHD's ratings reflect its diversified retail deposit base, adequate market share, good liquidity, improved asset quality and profitability, competent management, and robust shareholder structure. Capital levels are still the main challenge of the bank relative to other banks in the region, while further income diversification will enhance its profitability. In the case of the other three subsidiaries of Centro Financiero BHD, their ratings are based on the expected support from BHD should it be required from those entities, since these entities provide complementary services to the bank and are clearly linked to the franchise of the bank in the Dominican Republic and Panama (international bank license. Significant loan growth and the clean-up of the legacy portfolio from previous mergers and the economic crisis in 2003-2004, along with a revamped credit risk control policy, have allowed BHD to dramatically improve its asset quality ratios. At March 31, 2009, past due loans represented slightly more than 2% of total loans, in line with the average for the past three years and below its closest competitors. In comparison, loan loss reserves at 5% of total loans are adequate. Nonetheless, the lower expected economic activity in the Dominican Republic and the need to test the new risk tools demands a cautious monitoring of the portfolio to avoid unexpected increases of past due levels. Improved efficiency, although still weak by international standards, and relatively low loan loss provisions charges have allowed BHD to enhance its profitability. The return on average assets ratio improved to 3.2% in 1Q'09, as compared with less than 2% in 2005. Despite the volatility of the environment, high competition, and higher expected provision expenses, the bank's current income stream should allow maintaining ROAA ratios at least above 2% and, jointly with a prudent dividend policy, steady improvement in BHD's capital ratio. Moderate dividends and improved profitability have benefited BHD's capital ratios. At March 2009, BHD had an equity-to-assets ratio of 8.7% and a total capital ratio of 14.6%. If the burden of fixed and foreclosed assets is excluded, Fitch's free capital ratio would be 4.9%, improved from previous periods but still considered tight. As of March 2009, BHD ranked third among 12 commercial banks, with a 12% market share by total assets. At Dec. 30, 2008, Grupo BHD controlled 51% of Centro Financiero BHD, the sole shareholder of BHD, with Banco de Sabadell of Spain and Banco Popular de Puerto Rico together holding 40% and International Finance Corporation controlling 9%. BANCO MULTIPLE: Fitch Affirms Issuer Default Rating at 'B-' ----------------------------------------------------------- Fitch Ratings has affirmed Banco Multiple Leon S.A.'s ratings: -- Foreign Currency Issuer Default Rating at 'B-'; -- Local Currency IDR at 'B-'; -- Short-Term Foreign Currency IDR at 'B'; -- Short-Term Local Currency IDR at 'B'; -- Individual Rating at 'D/E'; -- Support Rating of at '5'; -- Support Floor at 'NF'; -- National Long-Term Rating at 'BBB+(dom)'; -- National Short-Term Rating at 'F-2(dom)'; -- National Subordinated Debt Rating at 'BBB-(dom)'. The Rating Outlook is Stable. BML's ratings reflect adequate liquidity ratios and the positive trend on its capitalization and asset diversification. The operational support of its sole shareholder, the Leon family, is also reflected. On the other hand, BML's ratings are still limited by its relatively volatile asset quality and profitability metrics and the burden imposed by a challenging operating environment. BML's ratings would be positively affected by improvements to its asset quality metrics and profitability. A reversion of its capital ratios or further deterioration of its profitability and/or asset quality can negatively affect its ratings. BML shareholders are committed to improving the capital base of the bank in terms of quantity and quality. As such, no cash dividends have been paid since 2004, while during 2009, a new minority shareholder agreed to inject an initial US$12 million into BML's capital. As a consequence, BML's equity-to-assets ratio improved to 8% on May 31, 2009 (6.5% in 2004), while the burden of fixed and foreclosed assets decreased to 49% from more than 200% in 2005. In May 2009, the Fitch free capital ratio stood at 4%, improved from previous periods but still considered tight. In May 2009, a new minority shareholder was incorporated into BML's capital structure. With this agreement, Darby injected US$12 million into BML capital (about 11.7% of the bank equity at that time) and retained the right to increase its participation up to 25% of the bank's equity in the next 12 months. BML shareholders identify Darby as a strategic partner that would provide not only fresh capital but also its experience and know- how in the administration of a minority position in several banks in Latin America, as well as the expertise of Franklin Templeton Investments. This agreement allows Darby to name two directors on the BML board. Despite the steady increase of its net interest revenue and stable, although low, other operating income, the significant burden of loan loss provisions and still weak efficiency levels keep pressuring BML's overall profitability. After posting positive results in 2006, operating profit still represents less than 1% of average assets. Due to the volatility of the environment, high competition, and higher expected provision expenses, the current income stream of the bank could still be insufficient to cover unexpected swings of expenses. Asset quality metrics are still affected by the legacy of some older corporate loans and the natural seasoning of a growing loan portfolio in times when new credit risk tools are in the developing process. On May 31, 2009, past due loans represented 4.8% of total loans, above the market average and with loan loss reserves representing just 90% of the impaired figure. Also, restructured loans were still sizable at 2.7%. The lower expected economic activity in the Dominican Republic and the need to test and improve the new risk tools demand cautious monitoring of the portfolio to avoid further increase of its past due levels. As of May 2009, BML ranked fifth out of 12 commercial banks, with a 5.3% market share by total assets. As of May 2009, the Leon family controlled 88.3% of BML, while Darby Probanco Holding L.P. (Darby; a subsidiary of Franklin Templeton Investments) controlled the remaining 11.7%. ================= G U A T E M A L A ================= BANCO INDUSTRIAL: Moody's Affirms 'D' Bank Strength Rating ---------------------------------------------------------- Moody's Investors Service affirmed the ratings of Banco Industrial S.A. and changed the outlook on the bank's D bank financial strength rating to stable from negative. The rating agency also affirmed the bank's Baa3 and Prime-3 long and short term global local currency deposit ratings, and the Ba3 and Not Prime long and short term foreign currency deposit ratings, all with stable outlooks. At the same time, Moody's affirmed the Ba3 foreign currency ratings on Industrial's capital notes. Moody's explained that the stable outlook on Industrial's BFSR incorporates the sustained performance of the bank's profitability, asset quality and liquidity metrics, which together with a relative stable dividend policy have limited the pressure on its capitalization. The leveraged acquisition of Honduras' Grupo Banpais by Industrial's holding company, Bicapital, in December 2007 had raised concerns that Industrial's earnings and capital could be negatively affected. Moody's noted that the recent actions related to Bicapital's financing of the Banpais acquisition -- which include extension of the maturity of the syndicated loan, which is in the final stages of completion, and the shareholders' commitment to annual capital injections to ensure repayment of this loan -- are also likely to limit the burden on Industrial's financial flexibility, while addressing the continued high double leverage at the holding company level. The rating agency also indicated that Industrial's performance has benefited from the integration of the bank's acquisitions in Guatemala that have contributed cost synergies for both funding and operations, while adding to its already dominant loan and deposit market shares. Despite intense competition from international banks in the region, Industrial has been able to maintain and attract deposits and business from an established customer base. In light of the economic slowdown in Guatemala resulting in part from depressed global economic and financial conditions, Moody's said that the bank's loan and earnings growth will continue under pressure and asset quality is likely to deteriorate. The agency noted that the bank is well positioned to absorb potentially higher loan losses under more stressful conditions within its rating category due to conservative asset quality management as well as efforts to build its reserve and capital cushion. Moody's noted, however, that the group's ongoing acquisition strategy -- which could entail further regional expansion -- would be viewed with concern, particularly in the context of limited access to financing alternatives that could adequately support such a strategy, as well as of a more difficult business environment overall. Moody's last rating action on Banco Industrial S.A. was on December 18, 2008 when the outlook on the long term foreign currency deposit rating was changed to stable from positive following a similar action on the country ceiling for deposits. Banco Industrial S.A. was the largest bank in Guatemala as of June 30, 2009, with consolidated assets of approximately US$5.5 billion, equity of $460 million, and six month net earnings of $42 million. The bank is the largest operating subsidiary of Bicapital Corporation, a financial holding company based in Panama City, Panama, with consolidated assets of $6.5 billion as of June 30, 2009. These ratings were affirmed for Banco Industrial S.A.: * Bank Financial Strength Rating: D, affirmed, outlook changed to stable from negative * Long Term Local Currency Deposits: Baa3, stable * Short Term Local Currency Deposits: Prime-3 * Long Term Foreign Currency Deposits: Ba3, stable * Short Term Foreign Currency Deposits Not Prime ============= J A M A I C A ============= CASH PLUS: Supreme Court Issues Official Shutdown Order ------------------------------------------------------- The Supreme Court ordered the official shut-down of Cash Plus Limited and all it entities following an application by the provisional liquidator, Hugh Wildman, RadioJamaica reports. According to the report, Mr. Wildman, appointed by presiding judge Justice Roy Anderson, was given more powers to track down and sell assets of the failed company, and refund money to thousands of persons who lost money in the "Ponzi scheme". The report relates over the past several months, Mr. Wildman has been kept busy trying to find assets owned by Cash Plus and its former boss, Carlos Hill. As reported in the Troubled Company Reporter-Latin America on May 27, 2009, RadioJamaica said Cash Plus's depositors and creditors expect to get back some of their money soon, as properties owned by the company were advertised for sale. The report said that according to an advertisement published in The Sunday Gleaner, seven properties owned by Cash Plus Limited and its subsidiaries and affiliates were advertised for sale: -- houses, with an estimated value of more than US$30 million each: * a town house in Armour Heights, * a town house on Cherry Drive, * a town house on Norbrook Drive, and * apartment at Waterworks Mews. -- property at Mainland International, March Pen, St Catherine; -- property on Old Harbour Road, St Catherine, and -- property in Kencot, St Andrew. About Cash Plus Cash Plus Limited is an investment club in Jamaica. It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. In April 2008, the Supreme Court of Jamaica placed Cash Plus in receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14, 2008. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. =========== M E X I C O =========== ALESTRA S: Fitch Affirms Issuer Default Rating at 'B+' ------------------------------------------------------ Fitch Ratings has affirmed Alestra, S. de R.L. de C.V.'s ratings: -- Local currency Issuer Default Rating at 'B+'; -- Foreign currency IDR at 'B+'; -- Senior notes due 2010 at 'BB-/RR3'; The Rating Outlook is Stable. Alestra's ratings reflect its lower business risk profile, stable cash flow generation, continued positive free cash flow and sound credit metrics. The ratings are tempered by currency mismatch between debt and cash flows, refinancing risk regarding it 2010 notes, challenges in the long distance market and increased competition in data, internet and local services. Improved revenues and cash flow mix over the past few years driven by growth in DILS has lowered the company exposure to riskier long distance segment, resulting in lower business risk and stable cash flow generation. Continued stable operating performance and moderate capital expenditures has resulted in free cash flow that has been used to reduce indebtedness, strengthening the company's credit metrics. The 'BB-/RR3' rating of the 2010 senior notes reflects good recovery prospects in the range of 50%-70% given default. Alestra's operations reflect its business position as a niche provider of DILS and long-distance. DILS growth continues to compensate for revenues and cash flows declines from long distance services. Alestra's business strategy is focused on growing revenues from its enterprise and consumer customers by offering value added services. Fitch expects that over the next few years, the company should continue growing and introducing convergent services, such as IP telephony, security, hosting, managed services and VPNs to offer integrated solutions to corporate customers, which accounts for approximately 75% of revenues and 85% of cash flow. The company also looks to increase contribution of consumer revenue with growth from VOIP services. Negative long distance business fundamental trends are expected to continue. Competition in the international and domestic business remains intense as price pressures continue. In addition, the entrance of international and national long distance calling party pays had a negative effect on this segment as costs increased and traffic declined. The company has showed ability to offset the loss in revenue from this segment with incremental revenues from DILS, which have resulted in stable to slight growth in EBIDTA over the past few years. The company continues to face competitive challenges in the corporate segment primarily from the incumbent telecommunications operator, Telefonos de Mexico and by CLEC Axtel. The entrance of number portability added competition to the residential market. However, Alestra has been one of the main beneficiaries with approximately 15 thousand total additions since its introduction in July of 2008, mostly related to the consumer segment. Other beneficiaries are cable television companies offering voice services, which targets the residential market. Alestra's business risk continues to moderate as EBITDA generated by DILS accounts for slightly more than 80% of consolidated EBITDA, favorably compared to past few years where EBITDA from LD was more important to cash flow than DILS. On a consolidated basis, EBITDA continues to moderately grow, despite long distance revenue declines, driven by the company strategy to grow higher margin DILS in its business mix. For the twelve months ended March 31, 2009, total consolidated EBITDA grew 4.6% when compared to the same period of the previous year, as consolidated revenues declined 4.5%. DILS revenue growth was insufficient to outpace decline in long distance revenues. Credit protection measures have remained relatively stable over the past few years and are strong the rating category. For the 12 months ended March 31, 2009 total debt to EBITDA and EBITDA to interest expense were 2.4 times(x) and 4.5x, respectively. However, Alestra is exposed to currency mismatch between debt and cash flow and faces liquidity and refinancing risks. As of March 31, 2009; MXN692 million was registered as short-term against MXN331 million of cash and marketable securities. The company is working on refinancing its 2010 maturity to eliminate any refinancing or liquidity risk; however, inability to refinance this maturity should pressure the ratings as they approach to June 30, 2010. Of the US$193 million 2010 senior notes outstanding, US$19.7 million matures on December 30, 2009, and US$173.3 million on June 30, 2010. Alestra provides data, internet, local and long distance services in Mexico and is 51% owned by Alfa and 49% by AT&T. For 12 months ended March 31, 2009; it registered revenue and EBTIDA of MXN4,709 million and MXN1,393 million, respectively. CEMEX SAB: Expects to Posts Drop in Q2 Sales & Profits ------------------------------------------------------ CEMEX, S.A.B. de C.V. probably had a difficult second quarter, with economic weakness in its major markets hurting sales and profits, Anthony Harrup of Dow Jones Newswires reports. The report relates Cemex faced downturns in construction in the U.S., Spain and the U.K., while in Mexico aggressive public-sector infrastructure spending offset some of the weakness in housing starts. According to the report, Mexican results may be negatively affected by the Easter holiday, which came in April this year instead of March, and by an outbreak of influenza that interrupted economic activity at the beginning of May. Cemex SAB is expected to report sales of US$4.4 billion in the second quarter, down from US$6.35 billion in the year-ago period, according to the median estimate of six analysts polled by Dow Jones Newswires. The report relates EBITDA probably fell to US$837 million from US$1.37 billion a year ago, while net profit is seen at US$187 million, compared with US$444 million in the second quarter of 2008. "Weak operating results for Cemex shouldn't be a surprise and should already be partly reflected in the share price," Banco Santander said in a report obtained by the news agaency. Cemex's shares will likely be more sensitive to the company finalizing its debt restructuring with bank creditors, including the possibility that a deal will involve a capital increase, Banco Santander added. About Cemex, S.A.B. CEMEX, S.A.B. de C.V. is a Mexican corporation, a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As reported in the Troubled Company Reporter-Latin America on June 17, 2009, Fitch Ratings placed on 'Rating Watch Evolving', Cemex's ratings, including its 'B' Foreign currency Issuer Default Rating, and 'B' Local currency IDR. CORPORACION DURANGO: Mexican Court OKs Reorganization Plan ---------------------------------------------------------- Corporacion Durango SAB's bankruptcy reorganization plan was approved by a Mexican court, Emily Schmall at Bloomberg News reports. The report, citing a company statement, relates the company's debt will decrease 54% to US$250 million, about one- fifth of its asset value. “This new organization plan gives the company enough flexibility to face any business condition,” Chief Financial Officer Mayela Rincon de Velasco told Bloomberg in a phone interview. As reported in the Troubled Company Reporter, Bloomberg News said Corporacion Durango filed for Chapter 15 bankruptcy with the U.S. Bankruptcy Court for the Southern District of New York (Lead Case No. 08-13911) on Oct. 6, 2008, after missing a US$26.5 million interest payment on 10.5 percent bonds due in 2017. Two of its affiliates filed for Chapter 11 protection separately with the same court on the same day. About Corporacion Durango Corporacion Durango, S.A. de C.V. (BMV: CODUSA), a vertically integrated producer of paper and packaging products in Mexico, previously announced that the First Federal District Court in Durango, Mexico, has approved the company's plan of reorganization and declared the termination of its "Concurso Mercantil" proceeding. * * * As of July 27, 2009, the company continues to carry Fitch ratings "D" LT Issuer Credit Ratings and "CC" Senior Unsecured Debt ratings. Durango’s debt will decrease 54 percent to $250 million, about one-fifth of its asset value, the company said today in a statement to the stock exchange. The company filed for bankruptcy in Mexico and the U.S. in October after missing a $26.5 million interest payment on its senior notes. “This new organization plan gives the company enough flexibility to face any business condition,” Chief Financial Officer Mayela Rincon de Velasco said in a phone interview. The Mexico City-based company said June 24 that a New York judge approved the turnaround plan for its two U.S. Units. ======= P E R U ======= DOE RUN PERU: Has Agreement to Furlough Employees ------------------------------------------------- Doe Run Peru S.R.L. -- an indirect subsidiary of Doe Run Resources Corporation and owner of the Metallurgical Complex of La Oroya -- has signed an agreement with its employees, establishing that they all will take forced vacations for three months, starting next month, Isabel Guerra at LivinginPeru.com reports. The report relates the employees will receive only the 63% of their salaries. According to the report, during that time, the workers will only do maintenance work in the foundry plant and refinery. The report notes Doe Run had planned to halt operations for a longer period, but the workers opposed, forcing the company to negotiate an agreement that led to the agreement that both parts have signed. About Doe Run Peru Doe Run Peru S.R.L. is an indirect subsidiary of Doe Run Resources Corporation. Doe Run Peru operates an integrated primary lead operation and a recycling operation located in Missouri, referred to as Buick Resource Recycling. Fabricated Products operates a lead fabrication operation located in Arizona and a lead oxide business located in Washington. * * * As of May 21, 2009, the company continues to carry Moody's bank financial strength at D- and Fitch Ratings individual rating at D. DOE RUN PERU: Peruvian Gov't May Extend PAMA Deadline ----------------------------------------------------- Peru President Alan Garcia said the government “is willing to be flexible and to extend" Doe Run's deadline to complete the environmental cleanup, provided the company presents “a financial guarantee, including shares,” Isabel Guerra at LivinginPeru.com reports. The report, however, relates Jose Mogrovejo, Doe Run Peru's Vice President for Environmental Affairs, remarked that the company would inject the capital required to operate again only if the government gave it a deadline extension of 30 months. As reported in the Troubled Company Reporter-Latin America on June 4, 2009, Bloomberg News said Doe Run Peru -- an indirect subsidiary of Doe Run Resources Corporation -- shut all its smelter operations after failing to reach an agreement with banks and mining suppliers. The report related Mining Federation General Secretary Luis Castillo said the company, a unit of New York Renco Group Inc., is unable to pay its 3,700 workers and has no cash for metal supplies for its La Oroya zinc and lead smelter. About Doe Run Doe Run Peru S.R.L. is an indirect subsidiary of Doe Run Resources Corporation. Doe Run Peru operates an integrated primary lead operation and a recycling operation located in Missouri, referred to as Buick Resource Recycling. Fabricated Products operates a lead fabrication operation located in Arizona and a lead oxide business located in Washington. * * * As of May 21, 2009, the company continues to carry Moody's bank financial strength at D- and Fitch Ratings individual rating at D. =============================== T R I N I D A D & T O B A G O =============================== BRITISH WEST: Gov't to Stick to 20 Cents Per Share Offer for Stock ------------------------------------------------------------------ The Trinindad and Tobago government said it is open to a meeting with shareholders of defunct national airline British West Indies to discuss a 20 cent per share offer for their stock, Trinidad Express reports, citing Minister in the Ministry of Finance Mariano Browne. However, the report relates Mr. Browne made it clear that while the State was open to discussions, it will be sticking to its offer. According to the report, Mr. Browne said that the 20 cent per share value was "rational" and therefore non-negotiable. The report notes at 20 cents per stock unit, 4,200 shareholders will have to split about TT$7.4 million. Mr. Browne, the report notes, said it is only in a gesture of "goodwill" that the government is now offering its minority shareholders 20 cents per share for their stock. As reported in the Troubled Company Reporter-Latin America on July 24, 2009, Trinidad Express said a group of minority shareholders of BWIA rejected the Trinidad and Tobago government's offer to pay them for their stock. The report related the government offered 4,200 BWIA shareholders 20 cents per share for their stock in the folded airline. According to the report, the airline's shareholders paid between US$4 and more than US$6 per share about 10 years ago and they refused to accept the ex-gratia payment from government by the July 31 deadline. The report noted the payment amounts to about TT$7 million but shareholders say their investments are worth mire than five times that. The Express said minority shareholder rights advocate Peter Permell said BWIA was still a limited liability company and under Securities and Exchange Commission by-laws, government's offer amounted to a takeover. About British West Indies British West Indies aka BWIA was founded in 1940, and for more than 60 years had been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. The airline had reportedly been losing US$1 million a week due to poor operational management. An employee survey revealed that lack of responsibility by the management was a major issue in the company. A number of key employees moved to other companies caused by a deadlock in the airline's negotiation with its labor union. The Trinidad & Tobago government, which owns 97.188% of BWIA, decided to shut down the airline on Dec. 31, 2006, and launch the Caribbean Airlines. CL FINANCIAL: Mulls Gov't-Backed Bonds to Raise Money to Pay Debt ----------------------------------------------------------------- CL Financial Limited is considering putting government-backed bonds on the market to deal with the TT$13 billion debt the conglomerate has on its books, Trinidad and Tobago Newsday reports, citing unnamed sources. According to the report, the government-appointed board led by Shafeek Sultan-Khan is exploring its options regarding restructuring of CL Financial’s debt. The report relates analysts said that although the Memorandum of Understanding signed between government and CL Financial in January allowing for the sale of assets belonging to the conglomerate to meet the deficit for government funding, sources said Government is not going to get market value right now for this. As a result, one option for CL Financial is to raise money on the local or global markets but to do so Government might have to back any bond offering, one analyst said, the report notes. 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. CL FINANCIAL: Clico Investment Bank to Auction Off Assets --------------------------------------------------------- Trinidad and Tobago's central bank is moving to recover the money it put out to save investors at Clico Investment Bank, CL Financial Limited's bankrupt subsidiary, Trinidad and Tobago Newsday reports. The report relates CIB's motor vehicles is being auctioned off for sale on August 5 at Francis Lalla Road, Charlieville by certified auctioneer Gary Gregoire, who is acting upon the instructions of Central Bank and CIB. According to the report, the auction is being seen as part of the effort to reduce liabilities Central Bank took on to save investors. Newsday notes that the vehicles that will be included in the auction are: * two Mercedes Benz, * Suzuki Sorento, * three Hyundai Tucson, * Nissan X-trail two Suzuki Vitaras, * Peugeots, * Hyundai Tucsons, * Volkswagon Jetta. 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 ================= PETROLEOS DE VENEZUELA: Faces Labor Tension ------------------------------------------- State-owned Petroleos de Venezuela is experiencing rising dissatisfaction over contract negotiations and alleged meddling from the Venezuela government could generate isolated industrial action in the country, Raymond Colitt at Reuters reports. According to the report, union leaders said that nearly 100,000 workers employed by PDVSA, and some of its contractors are upset because of overdue pay, delays in renegotiating a new contract and bullying by the government. The report relates the situation has been made worse by the difficulty of incorporating thousands of workers from oil service companies that were nationalized in recent months. "If this situation continues, workers will no longer complain to the unions and there will be an explosion of the conflict," the report quoted Bernardino Chirinos of the Oil Workers' Union of Zulia, as saying. "Workers are ready to take action. We're at the doorstep of a strike," Mr. Chirinos added. As reported in the Troubled Company Reporter-Latin America on July 24, 2009, EL Universal News said PDVSA has absorbed 6,900 oil workers, with 6,500 workers of the total belong to the western part of the country and the rest to the eastern region. According to the report, the latest figure is closer to the goal of 8,000 workers to be absorbed since the process of nationalization of transnational oil companies began. However, Reuters points out that many part-time workers also want a staff position and have protested. Reuters notes critics said efforts by Energy Minister Rafael Ramirez to consolidate all unions under a pro-government, socialist banner within the oil workers' federation FUTPV is fueling resentment among some leaders. The report recalls last week Mr. Ramirez said he wouldn't sit down to negotiate a new contract with enemies of Chavez, in reference to unionists that side with more market-friendly opposition politicians. The report relates the dispute among more than 100 unions over the FUTPV has delayed the renewal of a collective contract by more than six months, upsetting workers eager to get a pay raise in a country with inflation expected to top 30 percent this year. Seven of the eleven candidates bidding for the top job of the FUTPV are considered pro-government, the report adds. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings 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$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' =============== X X X X X X X X =============== * BOND PRICING: For the Week July 20 to July 24, 2009 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA ALTO PALERMO SA 7.88 5/11/2017 USD 67.5 ARG BODEN 7 10/3/2015 USD 52.38 ARGENT-$DIS 8.28 12/31/2033 USD 48.75 ARGENT-$DIS 8.28 12/31/2033 USD 56.12 ARGENT-PAR 1.18 12/31/2038 ARS 30.9 ARGENT-=DIS 7.82 12/31/2033 EUR 44.69 ARGNT-BOCON PR13 2 3/15/2024 ARS 45.05 ARGNT-BOCON PRE8 2 1/3/2010 ARS 30.4 AUTOPISTAS DEL S 11.5 5/23/2017 USD 40.25 BANCO HIPOT SA 9.75 4/27/2016 USD 70.5 BANCO MACRO SA 9.75 12/18/2036 USD 65.5 BANCO MACRO SA 8.5 2/1/2017 USD 74 BONAR ARG $ V 10.5 6/12/2012 ARS 59.95 BONAR VII 7 9/12/2013 USD 61.45 BONAR X 7 4/17/2017 USD 58.65 BUENOS AIRE PROV 9.63 4/18/2028 USD 44.56 BUENOS AIRE PROV 9.38 9/14/2018 USD 47.52 BUENOS-$DIS 9.25 4/15/2017 USD 50.25 INDUSTRIAS METAL 11.25 10/22/2014 USD 66.64 INVERS REP Y SOC 8.5 2/2/2017 USD 72.13 MASTELLONE HERMA 8 6/30/2012 USD 44.88 MENDOZA PROVINCE 5.5 9/4/2018 USD 55.05 TRANSENER 8.88 12/15/2016 USD 67.5 TRANSPORT DE GAS 7.88 5/14/2017 USD 77.39 BELIZE COSAN SA INDUSTR 8.25 #N/A N Ap USD 76 REDE EMPRESAS 11.13 #N/A N Ap USD 52.25 REDE EMPRESAS 11.13 #N/A N Ap USD 50.5 VIGOR 9.25 2/23/2017 USD 77.5 CAYMAN ISLAND AES DOMINICANA 11 12/13/2015 USD 85.75 AIG SUNAMERICA 6.38 10/5/2020 GBP 62.66 BANCAJA INTL FIN 5.7 6/30/2022 EUR 69.41 BARION FUNDING 0.25 12/20/2056 USD 5.71 BARION FUNDING 0.25 12/20/2056 USD 5.71 BARION FUNDING 0.25 12/20/2056 USD 5.76 BARION FUNDING 0.25 12/20/2056 USD 5.71 BARION FUNDING 0.63 12/20/2056 GBP 14.02 BARION FUNDING 1.44 12/20/2056 GBP 25.82 BARION FUNDING 0.25 12/20/2056 USD 5.71 BARION FUNDING 0.1 12/20/2056 EUR 5.32 BARION FUNDING 0.25 12/20/2056 USD 5.71 BCP FINANCE CO 4.24 #N/A N Ap EUR 78.25 BCP FINANCE CO 5.54 #N/A N Ap EUR 78.33 BES FINANCE LTD 4.5 #N/A N Ap EUR 75.13 BES FINANCE LTD 6.2 2/7/2035 EUR 56.42 BISHOPSGATE ASSE 4.81 8/14/2044 GBP 57.35 CHINA MED TECH 4 8/15/2013 USD 73.25 CHINA PROPERTIES 9.13 5/4/2014 USD 74.4 DUBAI HLDNG COMM 4.75 1/30/2014 EUR 65.12 DUBAI HLDNG COMM 6 2/1/2017 GBP 59.36 DWR CYMRU FIN 4.47 3/31/2057 GBP 70.6 EGE HAINA FINANC 9.5 4/26/2017 USD 69.25 ESFG INTERNATION 5.75 #N/A N Ap EUR 64.71 FERTINITRO FIN 8.29 4/1/2020 USD 52 GOL FINANCE 8.75 #N/A N Ap USD 69.25 GOL FINANCE 7.5 4/3/2017 USD 79 IANSA OVERSEAS 7.25 7/28/2012 USD 73.5 LDK SOLAR CO LTD 4.75 4/15/2013 USD 72 MALACHITE FDG 0.63 12/21/2056 EUR 21.86 MAZARIN FDG LTD 0.25 9/20/2068 USD 4.31 MAZARIN FDG LTD 0.25 9/20/2068 USD 4.36 MAZARIN FDG LTD 0.25 9/20/2068 USD 4.31 MAZARIN FDG LTD 0.25 9/20/2068 USD 4.31 MAZARIN FDG LTD 0.25 9/20/2068 USD 4.31 MAZARIN FDG LTD 0.25 9/20/2068 USD 4.31 MAZARIN FDG LTD 0.63 9/20/2068 GBP 11.71 MAZARIN FDG LTD 0.1 9/20/2068 EUR 3.2 MAZARIN FDG LTD 1.44 9/20/2068 GBP 23.83 MINERVA OVERSE 9.5 2/1/2017 USD 61 MUFG CAP FIN 4 5.27 #N/A N Ap EUR 80.63 MUFG CAP FIN 5 6.3 #N/A N Ap GBP 76.6 MUFG CAP FIN2 4.85 #N/A N Ap EUR 79.45 PANAMA CANAL RAI 7 11/1/2026 USD 69.5 PUBMASTER FIN 6.96 6/30/2028 GBP 50.27 PUBMASTER FIN 8.44 6/30/2025 GBP 61.86 PUBMASTER FIN 5.94 12/30/2024 GBP 71 REG DIV FUNDING 5.25 1/25/2036 USD 71.5 RESONA PFD GLOB 7.19 #N/A N Ap USD 74.76 SMFG PREFERRED 6.16 #N/A N Ap GBP 73.35 STB FINANCE 5.83 #N/A N Ap GBP 75.63 SUNAMER INST FND 6.15 10/14/2019 EUR 64.31 THPA FINANCE LTD 7.13 3/15/2024 GBP 72.52 THPA FINANCE LTD 8.24 3/15/2028 GBP 45.7 XL CAPITAL LTD 6.25 5/15/2027 USD 71 XL CAPITAL LTD 6.38 11/15/2024 USD 68.3 XL CAPITAL LTD 6.5 #N/A N Ap USD 53 DOMINICAN REPUBLIC DOMINICAN REPUBL 8.63 4/20/2027 USD 73.17 JAMAICA JAMAICA GOVT 8.5 2/28/2036 USD 73.33 JAMAICA GOVT 8 3/15/2039 USD 73.1 JAMAICA GOVT 13.38 4/27/2032 JMD 55.3 JAMAICA GOVT LRS 7.5 10/6/2012 JMD 66.97 JAMAICA GOVT LRS 13.63 6/23/2014 JMD 73.85 JAMAICA GOVT LRS 15 7/31/2016 JMD 73.17 JAMAICA GOVT LRS 16 5/17/2017 JMD 74.59 JAMAICA GOVT LRS 14.5 6/28/2017 JMD 70.47 JAMAICA GOVT LRS 14.5 8/2/2017 JMD 74.37 JAMAICA GOVT LRS 15.75 8/22/2019 JMD 70.5 JAMAICA GOVT LRS 14 6/30/2021 JMD 61.97 JAMAICA GOVT LRS 15 11/15/2021 JMD 65.62 JAMAICA GOVT LRS 13.38 12/15/2021 JMD 59.05 JAMAICA GOVT LRS 12.85 5/31/2022 JMD 56.54 JAMAICA GOVT LRS 16.15 6/12/2022 JMD 69.87 JAMAICA GOVT LRS 16 6/13/2022 JMD 69.25 JAMAICA GOVT LRS 16.15 6/21/2022 JMD 71.79 JAMAICA GOVT LRS 12.75 6/29/2022 JMD 56.1 JAMAICA GOVT LRS 12.75 6/29/2022 JMD 56.12 JAMAICA GOVT LRS 17 7/11/2023 JMD 72.76 JAMAICA GOVT LRS 13.58 12/15/2026 JMD 56.7 JAMAICA GOVT LRS 16.25 5/22/2027 JMD 67.54 JAMAICA GOVT LRS 16.5 6/14/2027 JMD 68.54 JAMAICA GOVT LRS 16.25 6/18/2027 JMD 71.62 JAMAICA GOVT LRS 15.5 3/24/2028 JMD 64.13 JAMAICA GOVT LRS 14.4 8/3/2027 JMD 61.58 JAMAICA GOVT LRS 16.13 8/21/2032 JMD 68.69 JAMAICA GOVT LRS 16.25 8/26/2032 JMD 69.22 JAMAICA GOVT LRS 16.25 7/26/2032 JMD 67.31 JAMAICA GOVT LRS 15 9/6/2032 JMD 64.56 JAMAICA GOVT LRS 16 12/6/2032 JMD 66.17 JAMAICA GOVT LRS 15 8/30/2032 JMD 63.93 PUERTO RICO DORAL FINL CORP 7.65 3/26/2016 USD 45 DORAL FINL CORP 7.1 4/26/2017 USD 42.75 DORAL FINL CORP 7 4/26/2012 USD 46.63 DORAL FINL CORP 7.15 4/26/2022 USD 34.5 PUERTO RICO CONS 6.1 5/1/2012 USD 55.5 PUERTO RICO CONS 6.5 4/1/2016 USD 45 URUGUAY URUGUAY 3.7 6/26/2037 UYU 71.79 VENEZUELA PETROLEOS DE VEN 5.5 4/12/2037 USD 38.94 PETROLEOS DE VEN 5.38 4/12/2027 USD 38.94 PETROLEOS DE VEN 5.25 4/12/2017 USD 46.71 VENEZUELA 9 5/7/2023 USD 61.63 VENEZUELA 9.25 9/15/2027 USD 66.35 VENEZUELA 9.25 5/7/2028 USD 61.55 VENEZUELA 7.65 4/21/2025 USD 54.39 VENEZUELA 8.5 10/8/2014 USD 73.72 VENEZUELA 7 3/16/2015 EUR 65.07 VENEZUELA 7 3/16/2015 EUR 65.27 VENEZUELA 5.75 2/26/2016 USD 59.1 VENEZUELA 7 12/1/2018 USD 59.5 VENEZUELA 6 12/9/2020 USD 50.95 VENEZUELA 7 3/31/2038 USD 49.67 VENZOD - 189000 9.38 1/13/2034 USD 62.61 *********** 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, Marites O. Claro, Joy A. Agravente, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *