TCRLA_Public/090730.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Thursday, July 30, 2009, Vol. 10, No. 149

                            Headlines

A N T I G U A  &  B A R B U D A

STANFORD INT'L: SEC Probe Hampered by Lack of Cooperation
STANFORD INT'L: SFG Receiver Seeks Clawback of US$925 Million


A R G E N T I N A

ARENADORA MENDOCINA: Proofs of Claim Verification Due on Sept. 11
MEDITERRANEA SALUD: Proofs of Claim Verification Due on August 24


B E R M U D A

HYDEGATE INTERNATIONAL: Creditors' Proofs of Debt Due on August 26
INTERNATIONAL DISABILITY: Creditors' Proofs of Debt Due on Aug. 17
INTERNATIONAL DISABILITY: Members' Meeting Set for September 2
ROMAGNOLA RE: Creditors' Proofs of Debt Due on August 19
SARASTRO PRIVATE: Creditors' Proofs of Debt Due on August 31

VALIDUS HOLDINGS: IPC Holds Out Storm-Proof Pact Before Sale
VALIDUS HOLDINGS: To Pay Quarterly Dividend


B R A Z I L

BRF-BRASIL: Transfers BRL950 Million to Sadia Unit
GOL LINHAS: Names Khauaja as VP of Management & Personnel
SADIA SA: Gets BRL950-Million Fund From BRF-Brasil Foods
TELE NORTE: Faces Class Action Lawsuits by Brazil Justice Ministry
USINAS SIDERURGICAS: Moody's Affirms Global Senior Issuer Rating

* BRAZIL: Files Two Class Action Lawsuits Against Telemar Norte
* BRAZIL: Sells US$500 Million of Bonds Due 2037 Overseas


C A Y M A N  I S L A N D S

AGEMO FUND: Placed Under Voluntary Wind-Up
ASIA ERA: Commences Wind-Up Proceedings
CONSTELLATION FUND: Creditors' Proofs of Debt Due on August 10
FR IX OFFSHORE: Placed Under Voluntary Liquidation
HFG INDIA: Commences Wind-Up Proceedings

LNS MANAGEMENT: Creditors' Proofs of Debt Due on August 21
LNS PARTNERS: Creditors' Proofs of Debt Due on August 21
MEZZANINE FINANCING: Court Enters Wind-Up Order
ML EUROMEDIC: Placed Under Voluntary Wind-Up
OCCO GLOBAL: Creditors' Proofs of Debt Due on September 20


C O L O M B I A

BANCOLOMBIA SA: To Release Second Quarter Results on August 4
ECOPETROL SA: Oil Pipeline Resumes Ops After Guerrilla Attack


D O M I N I C A N  R E P U B L I C

AES DOMINICANA: Fitch Affirms Issuer Default Rating at 'B-'
EMPRESA GENERADORA: Fitch Affirms Issuer Default Rating at 'B-'
EMPRESA GENERADORA: Fitch Affirms Issuer Default Ratings at 'B-'


E C U A D O R

PERENCO CORP: To Make 250 Jobs Redundant Amid Dispute With Ecuador


J A M A I C A

AIR JAMAICA: Cabinet Discusses Report on Airline Divestment
JAMAICA PUBLIC SERVICE: Gov't to Break Electric Sector Monopoly


M E X I C O

ASARCO LLC: To Reimburse SCC Judgement Bidders' Costs
ASARCO LLC: Wants Parent to Produce Plan-Related Documents
ASARCO LLC: Wants Withdrawal of Reference of Confirmation Issues
CEMEX SAB: Second Quarter Profit Drops 58% to US$187 Million
CEMEX SAB: Creditors Holding 90% of Debt Support Refinancing Plan

CONTROLADORA COMERCIAL: Q2 Net Profit Falls 71% to MXN83.6 Million
GRUMA SAB: S&P Retains CreditWatch Negative on 'B+' Rating
GRUPO TMM: Reports Second-Quarter 2009 Financial Results


U R U G U A Y

BANCO ITAU: Moody's Puts 'Ba1' Local Currency Deposit Rating


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Petrobras Sees Refinery Deal in September
PETROLEOS DE VENEZUELA: Says Junin 7 May Hold 31 Bil. Barrels


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                         - - - - -


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


STANFORD INT'L: SEC Probe Hampered by Lack of Cooperation
---------------------------------------------------------
The U.S. Securities and Exchange Commission's probe of Robert
Allen Stanford was hampered by a lack of cooperation by Mr.
Stanford and the head of Antigua's financial regulator, Reuters
reports, citing a SEC internal watchdog's report.  Reuters relates
the SEC watchdog said the agency did not breach its obligations to
vigorously pursue the case amidst complains that the SEC did not
act quickly enough to shut down Mr. Stanford's alleged multi-
billion fraud.

According to Reuters, inspector General David Kotz, who has issued
damning reports on the SEC, said the agency's investigation was
also hurt by a lack of cooperation from Stanford's counsel,
certain jurisdictional obstacles and several individuals at
Antigua's Financial Services Regulatory Commission.  The
watchdog's report, Reuters relates, said that after April 2008,
when SEC staff referred their concern that Mr. Stanford might be
running a Ponzi scheme out of Antigua to the Department of
Justice, the SEC "effectively halted its investigation" at the
justice department's request.

"As the DOJ prepared to proceed, the SEC ensured that its ongoing
activities did not interfere with DOJ's criminal investigation of
Stanford International Bank's CD offerings," Reuters quoted the
SEC as saying.

"In consultation with DOJ, the SEC continued to talk with
witnesses and review documents and other evidence already in its
possession," agency spokesman John Nester said in a statement
obtained by the news agency.

Reuters says Senator David Vitter, who made the request to the
agency's inspector general, said it is clear that there was some
sort of stand down order issued by the DOJ.  The SEC did continue
to investigate the Stanford group until it was told by the FBI
that the SEC's probe might compromise the preliminary FBI
investigation, Mr. Vittner added.

                  About Stanford International

Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement.  Stanford Private Wealth Management serves more
than 70,000 clients in 140 countries.

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 Seeks Clawback of US$925 Million
-------------------------------------------------------------
Andrew M. Harris and Laurel Brubaker Calkins at Bloomberg News
report that Stanford Financial Group court-appointed receiver,
Ralph Janvey, said he is seeking to recoup US$925 million tied to
certificates of deposit issued by Robert Allen Stanford’s Stanford
International Bank Limited.  The report relates Mr. Janvey
expanded an earlier complaint to recover money from Stanford
customers as well as brokers who allegedly profited from a multi-
billion fraud.

According to the report, the stockbrokers said they were “innocent
victims” and some of them invested their own money in the bank’s
certificates.  The report relates the brokers' attorneys told U.S.
District Judge David Godbey in Dallas that “their only sin is that
they were duped by Mr. Stanford’s alleged misrepresentations and
misdeeds, just like other Stanford clients that the receiver is
charged with protecting.”

The report recalls Mr. Janvey, according to the financial
advisers, opposed earlier requests for release of their accounts
even as he reached agreements with other investors whose holdings
were frozen.

Bloomberg News notes the U.S. SEC and John Little, a lawyer
appointed by the court to represent Stanford investors’ interests,
previously urged Judge Godbey to prevent Mr. Janvey from suing
about 300 investors to recover more than US$600 million.  The
report relates both claimed the lawsuits would cost more than they
would recover and would punish people who are already victims.

The defendants in the expanded complaint are “a very small
percentage of the more than 20,000 investor who have thus far
received little or nothing from their investment,” Mr. Janvey said
in a statement obtained by the news agency.  “Upon recovery, these
funds will be shared by all CD investors, including those from
whom the funds are recovered,” Mr. Janvey added.

Bloomberg News relates Kevin Sadler, a lawyer of Mr. Janvey, said
in a revise complaint that the proceeds sought “are little more
than stolen money and do not belong to persons who received such
funds.”  Mr. Janvey can’t fulfill his duty as Stanford’s receiver
“if some who received stolen money, through luck, chance or
complicity, are allowed to keep stolen money,” Mr. Sadler added.

Included in a 29-page listing of former Stanford brokers and
clients Mr. Janvey is pursuing as “relief defendants” in the
clawback case is the Libyan Foreign Investment Co., which is
listed as realizing US$54.8 million in Antiguan CD proceeds from
2008 to 2009, the report says.  “[Mr.] Janvey is pushing the idea
of clawbacks into uncharted waters by suing investors for any
money they received, even if they are ‘net losers’ and have not
recovered the principal from their investments,” Michael Stanley,
a Houston lawyer, said in an e-mailed statement obtained by the
news agency.

                 Mr. Stanford Complains on Poor
                        Jail Conditions

Meanwhile, according to a separate Bloomberg report, Mr. Stanford
complained that his jail cell often lacks light and air
conditioning.  Thom Weidlich at Bloomberg News reports, citing
lawyer Dick DeGuerin, Mr. Stanford endured heat and intermittent
lack of power when outside temperatures reached 100 degrees
Fahrenheit (38 Celsius) or more.

The report notes Pablo Paez, a spokesman for Boca Raton, Florida-
based GEO Group Inc., which runs the facility, said that the
facility has full power and air conditioning.

As reported in the Troubled Company Reporter-Latin America on
July 14, 2009, Caribbean360.com reports said defense lawyer Dick
DeGuerin's second attempt to obtain bail for Mr. Stanford --
founder of Stanford International Bank Limited –- was not granted
by Judge Hittner.  The report related Judge Hittner denied a
motion filed by Mr. DeGuerin for a review of the order he made on
June 30, revoking the US$500,000 bail given by U.S. Magistrate
Judge Frances Stacy.  Judge Hittner previously considered Mr.
Stanford a flight risk and ruled that the defendant will remain in
jail to await his August 25 trial.

The report noted Mr. DeGuerin has appealed to the U.S. Court of
Appeals in New Orleans in another attempt to secure his client's
release.  Mr. DeGuerin, as cited by the report, claimed in his
appeal that the U.S. government had misrepresented key facts on
Mr. Allen's ability and motive to flee.  According to the report,
Mr. DeGuerin said that in addition to the fact that his client,
who has dual U.S. and Antiguan citizenship, has surrendered his
three passports, he is now "penniless" as a result of the freeze
on his assets.

                  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
=================


ARENADORA MENDOCINA: Proofs of Claim Verification Due on Sept. 11
-----------------------------------------------------------------
The court-appointed trustee for Arenadora Mendocina S.R.L.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until September 11, 2009.

The trustee will present the validated claims in court as
individual reports on October 26, 2009.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.

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

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
December 7, 2009.


MEDITERRANEA SALUD: Proofs of Claim Verification Due on August 24
-----------------------------------------------------------------
The court-appointed trustee for Mediterranea Salud S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until August 24, 2009.

The trustee will present the validated claims in court as
individual reports on October 8, 2009.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.

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

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
December 4, 2009.


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


HYDEGATE INTERNATIONAL: Creditors' Proofs of Debt Due on August 26
------------------------------------------------------------------
The creditors of Hydegate International Limited are required to
file their proofs of debt by August 26, 2009, to be included in
the company's dividend distrbution.

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

The company's liquidator is:

          Mark Smith
          Deloitte & Touche
          Corner House, Church & Parliament Streets
          Hamilton HMFX, Bermuda


INTERNATIONAL DISABILITY: Creditors' Proofs of Debt Due on Aug. 17
------------------------------------------------------------------
The creditors of International Disability Services, Limited are
required to file their proofs of debt by August 17, 2009, to be
included in the company's dividend distrbution.

The company commenced wind-up proceedings on July 27, 2009.

The company's liquidator is:

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


INTERNATIONAL DISABILITY: Members' Meeting Set for September 2
--------------------------------------------------------------
The members of International Disability Services, Limited will
hold their general meeting on September 2, 2009, at 10:00 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 27, 2009.

The company's liquidator is:

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


ROMAGNOLA RE: Creditors' Proofs of Debt Due on August 19
--------------------------------------------------------
The creditors of Romagnola Re Limited are required to file their
proofs of debt by August 19, 2009, to be included in the company's
dividend distrbution.

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

The company's liquidator is:

          Nigel Godfrey
          The Emporium Building
          69 Front Street
          Hamilton, Bermuda


SARASTRO PRIVATE: Creditors' Proofs of Debt Due on August 31
------------------------------------------------------------
The creditors of Sarastro Private Trust Company Ltd. are required
to file their proofs of debt by August 31, 2009, to be included in
the company's dividend distrbution.

The company commenced wind-up proceedings on July 23, 2009.

The company's liquidator is:

          Edward Allanby
          Leman Management Limited
          Wessex House, 2nd floor
          45 Reid Street, Hamilton HM12
          Bermuda


VALIDUS HOLDINGS: IPC Holds Out Storm-Proof Pact Before Sale
------------------------------------------------------------
IPC Holdings held out for a storm-proof agreement before agreeing
to a sale to Validus Holdings Limited, Lilla Zuill at Reuters
reports.  The report relates the US$1.65 billion cash-and-stock
deal is unique because it does not give Validus Holdings an exit
clause if IPC Holdings is hit by large losses prior to the sale.

According to the report, IPC Holdings told Validus Holdings it
would balk at a deal that contained a "material adverse change" or
MAC clause for storm losses.  "With the advent of the hurricane
season, we consider it important for IPC and its shareholders that
any negotiated sale . . . not be conditioned upon the absence of
catastrophe losses," the report quoted IPC Chairman Kenneth
Hammond in a letter last month to Validus CEO Ed Noonan.

Reuters notes that IPC Holdings reported a nearly four-fold rise
in quarterly net income, helped by higher policy sales and
investment gains; and it had US$8 million in losses from the Air
France crash and damage from the earthquake in Italy.  However,
the report relates a major hurricane could lead to much bigger
losses.  The report recalls after Hurricane Katrina in 2005, IPC
recorded a quarterly net loss of US$656.6 million, significantly
more than the value of business it typically underwrites in a full
year.

Still, Mr. Noonan, Reuters notes, said the risk-reward proposition
is a good one.  "Going into catastrophe season, IPC is extremely
well capitalized for the risks they take on," Mr. Noonan told
Reuters in an interview.

As reported in the Troubled Company Reporter-Latin America on
July 14, 2009, Validus Holdings and IPC Holdings' board of
directors have approved a definitive amalgamation agreement that
will create a leading Bermuda carrier in the short-tail
reinsurance and insurance market.  Under the terms of the
agreement, IPC shareholders will receive US$7.50 in cash and
0.9727 Validus voting common shares for each IPC common share.
The Validus consideration provides IPC shareholders with a 24.9%
premium and US$31.73 per share based on IPC's and Validus' closing
stock prices on March 30, 2009, the last trading day before the
announcement of Validus' initial offer.  Completion of the
transaction, which is expected to take place in the third quarter
of 2009, is subject to customary closing conditions, including
Validus and IPC shareholder approvals.

                 About Validus Holdings, Ltd.

Validus Holdings Ltd. -- http://www.validusre.bm/--  s a
provider of reinsurance and insurance, conducting its operations
worldwide through two wholly-owned subsidiaries, Validus
Reinsurance, Ltd., and Talbot Holdings Ltd.  Validus Re is a
Bermuda based reinsurer focused on short-tail lines of
reinsurance.  Talbot is the Bermuda parent of the specialty
insurance group primarily operating within the Lloyd's insurance
market through Syndicate 1183.

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 16, 2009, A.M. Best Co. has placed the indicative ratings of
"bb+" on subordinated debt and "bb" on the preferred stock of
Validus Holdings, Ltd (Validus Holdings) under review with
negative implications.


VALIDUS HOLDINGS: To Pay Quarterly Dividend
-------------------------------------------
Validus Holdings, Ltd.'s Board of Directors has declared a
quarterly dividend of $0.20 per each common share and $0.20 per
common share equivalent for which each outstanding warrant is then
exercisable.

The dividend is payable on September 30, 2009 to shareholders and
warrant holders of record on August 20, 2009.

Validus Holdings Ltd. -- http://www.validusre.bm/--  is a
provider of reinsurance and insurance, conducting its operations
worldwide through two wholly-owned subsidiaries, Validus
Reinsurance, Ltd., and Talbot Holdings Ltd.  Validus Re is a
Bermuda based reinsurer focused on short-tail lines of
reinsurance.  Talbot is the Bermuda parent of the specialty
insurance group primarily operating within the Lloyd's insurance
market through Syndicate 1183.

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 16, 2009, A.M. Best Co. placed the indicative ratings of
"bb+" on subordinated debt and "bb" on the preferred stock of
Validus Holdings, Ltd (Validus Holdings) under review with
negative implications.


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


BRF-BRASIL: Transfers BRL950 Million to Sadia Unit
--------------------------------------------------
BRF-Brasil Foods SA -- new name for the merged Perdigao SA and
Sadia SA –- said it has transferred BRL950 million (US$505
million) to its Sadia SA subsidiary, Rogerio Jelmayer at Dow Jones
Newswires reports.  The report relates the funds will be used by
Sadia to increase its capital as part of debt restructuring.

According to the report, earlier this month, BRF-Brasil Food
raised BRL5.29 billion from the sale of shares through a primary
offer on the Brazilian Stock Exchange, or BMFBovespa.

As reported in the Troubled Company Reporter-Latin America on
July 14, 2009, LatinFrance said BRF-Brasil Foods plans to issue
115 million ordinary shares, with an additional 17 million
supplemental units if condition permits.  LatinFrance said most of
the proceeds will be used to recapitalize the company and fix up
its battered balance sheet, the Sadia part of which was damaged by
derivatives liabilities in 2008, while around 37% of proceeds will
go towards paying down and raising FX export credit lines with
commercial banks.

According to a TCRLA report on November 7, 2008, citing Bloomberg
News, Sadia SA lost at least BRL545 million (US$254 million) on
wrong-way currency bets.  According to the report, Sadia posted
its first net loss in nine years after a currency slump derailed
bets that Brazil's real would continue a four-year winning streak
against the dollar.  The report related Sadia posted a third-
quarter net loss of BRL777.4 million, after booking BRL1.21
billion in financial expenses, mostly from bad bets on currencies
and other wrong-way investments, from a profit of BRL188.4 million
in the year-earlier quarter.

                        About Sadia S.A.

Headquartered in Sao Paulo, Brazil, Sadia S. A. -–
http://www.sadia.com–- is the largest slaughterer and distributor
of poultry and pork products in Brazil, as well as the leading
refrigerated and frozen protein products company.  For the last
twelve months ending on September 30, 2008, Sadia had net revenues
of BRL10.2 billion (USD 6 billion) and EBITDA of BRL1.3 billion
(USD 748 million) with 46% of revenues derived from exports to
over 100 countries.

                         *     *     *

As of June 8, 2009, the company continues to carry Moody's LT Corp
Rating at B2.  The comapany also continues to carry Standard and
Poor's LT Issuer Credit ratings at B.

                   About BRF-Brasil Foods

BRF-Brasil Foods SA is a food processor in Latin America.  The
company raises chickens to produce poultry products.  Brasil foods
also processes frozen pasta, soybeans, and thier derivatives, and
distributes frozen vegetables.  The company's core business is
chilled and frozen food.  The company has offices in the Middle
East, Asia, and Europe.

                         *     *     *

As of July 14, 2009, the company continues to carry Moody's Ba1 LT
Corp Family rating.  The company also continues to carry Standard
and Poor's BB+ LT Issuer Credit Ratings.


GOL LINHAS: Names Khauaja as VP of Management & Personnel
---------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. disclosed the creation of a
new position, Vice President of Management and Personnel, which
will be led by senior executive Ricardo Khauaja, age 39.

"I'm looking forward to the challenges of working for a service
company in the highly competitive airline industry," stated
Ricardo Khauaja.  "The new vice presidency will continue to focus
on GOL's operations and processes, always ensuring that they are
in line with the Company's quality and organizational policies,"
said Mr. Khauaja.

"The creation of this vice presidency is a crucial step, giving us
a more solid structure geared exclusively to organizational
development and personnel management," added Constantino de
Oliveira Junior, GOL's CEO.

                       About GOL Linhas

Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. –- http://www.voegol.com.br/--
through its subsidiary, GOL Transportes Aereos S.A., provides
airline services in Brazil, Argentina, Bolivia, Uruguay, and
Paraguay.  The company's services include passenger, cargo, and
charter services.  As of March 20, 2006, Gol Linhas provided 440
daily flights to 49 destinations and operated a fleet of 45 Boeing
737 aircraft.  The company was founded in 2001.

                          *     *     *

As of May 19, 2009, the company continues to carry Moody's B1
long-term corporate family ratings.  The company also continues to
carry Fitch's B+ Issuer Credit Ratings and B Senior Unsecured
Rating and Preferred Stock ratings.


SADIA SA: Gets BRL950-Million Fund From BRF-Brasil Foods
--------------------------------------------------------
BRF-Brasil Foods SA -- new name for the merged Perdigao SA and
Sadia SA –- said it has transferred BRL950 million (US$505
million) to its Sadia SA subsidiary, Rogerio Jelmayer at Dow Jones
Newswires reports.  The report relates the funds will be used by
Sadia to increase its capital as part of debt restructuring.

According to the report, earlier this month, BRF-Brasil Food
raised BRL5.29 billion from the sale of shares through a primary
offer on the Brazilian Stock Exchange, or BMFBovespa.

As reported in the Troubled Company Reporter-Latin America on
July 14, 2009, LatinFrance said BRF-Brasil Foods plans to issue
115 million ordinary shares, with an additional 17 million
supplemental units if condition permits.  LatinFrance said most of
the proceeds will be used to recapitalize the company and fix up
its battered balance sheet, the Sadia part of which was damaged by
derivatives liabilities in 2008, while around 37% of proceeds will
go towards paying down and raising FX export credit lines with
commercial banks.

According to a TCRLA report on November 7, 2008, citing Bloomberg
News, Sadia SA lost at least BRL545 million (US$254 million) on
wrong-way currency bets.  According to the report, Sadia posted
its first net loss in nine years after a currency slump derailed
bets that Brazil's real would continue a four-year winning streak
against the dollar.  The report related Sadia posted a third-
quarter net loss of BRL777.4 million, after booking BRL1.21
billion in financial expenses, mostly from bad bets on currencies
and other wrong-way investments, from a profit of BRL188.4 million
in the year-earlier quarter.

                        About Sadia S.A.

Headquartered in Sao Paulo, Brazil, Sadia S. A. -–
http://www.sadia.com–- is the largest slaughterer and distributor
of poultry and pork products in Brazil, as well as the leading
refrigerated and frozen protein products company.  For the last
twelve months ending on September 30, 2008, Sadia had net revenues
of BRL10.2 billion (USD 6 billion) and EBITDA of BRL1.3 billion
(USD 748 million) with 46% of revenues derived from exports to
over 100 countries.

                         *     *     *

As of June 8, 2009, the company continues to carry Moody's LT Corp
Rating at B2.  The comapany also continues to carry Standard and
Poor's LT Issuer Credit ratings at B.

                   About BRF-Brasil Foods

BRF-Brasil Foods SA is a food processor in Latin America.  The
company raises chickens to produce poultry products.  Brasil foods
also processes frozen pasta, soybeans, and thier derivatives, and
distributes frozen vegetables.  The company's core business is
chilled and frozen food.  The company has offices in the Middle
East, Asia, and Europe.

                         *     *     *

As of July 14, 2009, the company continues to carry Moody's Ba1 LT
Corp Family rating.  The company also continues to carry Standard
and Poor's BB+ LT Issuer Credit Ratings.


TELE NORTE: Faces Class Action Lawsuits by Brazil Justice Ministry
------------------------------------------------------------------
Brazil’s Justice Ministry filed two class-action lawsuits against
Telemar Norte Leste SA and Claro, the local unit of America Movil
SAB, for allegedly breaking customer-service rules, Helder Marinho
at Bloomberg News reports.  Fines of BRL300 million (US$158.6
million) are being sought for each company, the ministry said in
an e-mailed statement obtained by the news agency.

“Even though the companies, generally, have invested in hiring and
there has been an improvement in customer service, the abusive
structure is maintained in the telecommunication sector,” the
ministry was quoted by Bloomberg News as saying.

Headquartered in Brazil, Telemar Norte Leste SA is involved in the
telecommunications sector.  It operates a fixed-line and mobile
telephone service in Brazil under the name Oi.  The company also
offers Internet network, through the service Oi Velox, and cable
television, through Oi TV, to both individual and corporate
customers.  Telemar Norte Leste SA operates in the states of Rio
de Janeiro, Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas,
Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Piaui, Maranho,
Para, Roraima, Amapa and Amazonas.

Its subsidiaries include TNL PCS (Oi), Telemar Internet Ltda and
Serede Servicos de Rede SA, among others.  The Company is owned by
Tele Norte Leste Participacoes SA. In 2008,  the Company launched
the third generation (3G) service.  As of January 2009, Telemar
Norte Leste SA acquired Brasil Telecom Participacoes SA.

                          *     *     *

As of July 29, 2009, the company continues to carry Standard and
Poor's "BB+" Issuer Credit Ratings.


USINAS SIDERURGICAS: Moody's Affirms Global Senior Issuer Rating
----------------------------------------------------------------
Moody's Investors Service affirmed the Baa3 global scale senior
unsecured issuer rating of Usinas Siderurgicas de Minas Gerais
S.A. -- USIMINAS and downgraded its Brazil national scale rating
to Aa1.br from Aaa.br.  At the same time, Moody's affirmed all
existing debt ratings on the global scale of USIMINAS and
downgraded the Brazilian national scale rating of its
BRL500 million local currency subordinated unsecured debentures
due 2013 to Aa2.br from Aa1.br.  The outlook for all ratings was
changed to negative from stable.

Ratings affirmed are:

Issuer: Usinas Siderurgicas de Minas Gerais -- USIMINAS

  -- Issuer Rating: Baa3 on the global scale

  -- US$500 million Senior Unsecured Global MTN Program: Baa3
     Foreign Currency Rating

  -- BRL 500 million local currency subordinated unsecured
     debentures due 2013: Ba1 on the global scale

Issuer: Cosipa Commercial Ltd.

  -- US$200 million senior unsecured foreign currency notes due
     2016, guaranteed by USIMINAS: Baa3 Foreign Currency Rating

Issuer: Usiminas Commercial Ltd.

  -- US$400 million senior unsecured foreign currency notes due
     2018, guaranteed by USIMINAS: Baa3 Foreign Currency Rating

Ratings downgraded are:

Issuer: Usinas Siderurgicas de Minas Gerais -- USIMINAS

  -- Issuer Rating: Brazilian national scale rating to Aa1.br from
     Aaa.br

  -- BRL 500 million local currency subordinated unsecured
     debentures due 2013: Brazilian national scale rating to
     Aa2.br from Aa1.br

  -- Outlook for all ratings changed to negative from stable

The rating action reflects the company's weakened operating
performance in light of deteriorated market conditions for the
global steel industry and Moody's expectation that the recovery in
the global steel industry will be slow, with a sustained period of
lower prices and spare capacity.  USIMINAS's gross margins are
also being affected by high-cost iron ore and coal inventories,
which are likely to continue to impact results.  The fact that
iron ore and coal are purchased under one-year take-or-pay
contracts has prevented the company from adjusting costs as steel
prices have come down.  While Moody's believes that high-cost iron
ore inventories have already been liquidated, high-cost coal
inventories are likely to continue to pressure margins over the
next several quarters.

The rating action also reflects a reduction in covenant cushion at
Usiminas, which has slightly weakened its liquidity profile.
Although USIMINAS has strongly scaled back its large investment
program from its original budget of US$14.1 billion in the period
from 2008-2012, Moody's anticipates an increase in its
indebtedness in the near term to fund capex, which, when combined
with the weaker operating performance affecting cash flow, will
result in tightened headroom under financial covenants of certain
of the company's outstanding debt instruments.  Moody's notes that
Usiminas maintains a strong cash position of BRL 2.8 billion,
which compares well with short term debt of BRL 1 billion.

The ratings continue to be supported by the company's leading
position in the Brazilian flat steel market, its globally
competitive production costs as evidenced by its historical EBITDA
margins of around 40% (as defined by Moody's), which reflect its
large scale, track record of almost full-capacity utilization
(currently approximately 50% utilization is weakening margins),
the proximity of its facilities to high-grade iron-ore reserves,
efficient logistics, and partial self-sufficiency in iron-ore,
coke and energy.  As a low-cost producer, Moody's believes that
USIMINAS is better prepared to face the ups and downs of the
cyclical steel industry than most of its international peers from
an operational standpoint, although Moody's note that the current
downturn is more severe than a normal industry cycle.

The ratings could be downgraded if the company's performance
remains weak, causing CFO less Dividends to Net Debt (total debt
less estimated cash available for debt reduction) to remain
consistently below 20% without prospects for improvement in the
near term.  A substantial deterioration in liquidity could also
cause a downgrade, with cash plus unused committed credit
facilities to short-term debt of below 1.3x for an extended
period.  Finally, a significant increase in consolidated secured
debt could negatively affect senior unsecured debt ratings.

The ratings outlook could be stabilized if operating performance
improves, with projected Total Adjusted Debt to EBITDA approaching
2.0x and CFO less Dividends to Net Debt (total debt less estimated
cash available for debt reduction) moving above 20%.  Improved
covenant cushions and the maintenance of cash plus unused
committed credit facilities to short-term debt of above 1.3x would
also be necessary for a stabilization of the outlook.

Moody's last rating action on USIMINAS occurred on February 1,
2008, when Moody's assigned a Ba1 local currency rating and an
Aa1.br rating on the Brazilian national scale to its
BRL500 million non-guaranteed subordinated debentures due 2013.

Headquartered in Belo Horizonte, Brazil, Usinas Siderurgicas de
Minas Gerais S.A. - USIMINAS, is the largest fully integrated
flat-steel manufacturer in Latin America, with production of
6 million tons of crude steel and consolidated net revenues of
BRL13.3 billion (US$6.3 billion converted by the average exchange
rate) in the last twelve months ended on June 30, 2009.  Usiminas
also owns steel distribution subsidiaries and operates several
downstream facilities in Brazil.


* BRAZIL: Files Two Class Action Lawsuits Against Telemar Norte
---------------------------------------------------------------
Brazil’s Justice Ministry filed two class-action lawsuits against
Telemar Norte Leste SA and Claro, the local unit of America Movil
SAB, for allegedly breaking customer-service rules, Helder Marinho
at Bloomberg News reports.  Fines of BRL300 million (US$158.6
million) are being sought for each company, the ministry said in
an e-mailed statement obtained by the news agency.

“Even though the companies, generally, have invested in hiring and
there has been an improvement in customer service, the abusive
structure is maintained in the telecommunication sector,” the
ministry was quoted by Bloomberg News as saying.

Headquartered in Brazil, Telemar Norte Leste SA is involved in the
telecommunications sector.  It operates a fixed-line and mobile
telephone service in Brazil under the name Oi.  The company also
offers Internet network, through the service Oi Velox, and cable
television, through Oi TV, to both individual and corporate
customers.  Telemar Norte Leste SA operates in the states of Rio
de Janeiro, Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas,
Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Piaui, Maranho,
Para, Roraima, Amapa and Amazonas.

Its subsidiaries include TNL PCS (Oi), Telemar Internet Ltda and
Serede Servicos de Rede SA, among others.  The Company is owned by
Tele Norte Leste Participacoes SA. In 2008,  the Company launched
the third generation (3G) service.  As of January 2009, Telemar
Norte Leste SA acquired Brasil Telecom Participacoes SA.

                          *     *     *


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



* BRAZIL: Sells US$500 Million of Bonds Due 2037 Overseas
---------------------------------------------------------
Brazil sold US$500 million of dollar-denominated bonds due in
2037, tapping into a four-month rally to lock in lower borrowing
costs, Andre Soliani and Lester Pimentel at Bloomberg News report,
citing a person familiar with the transaction.  The report relates
the unnamed source said the country priced the bonds to yield
6.45%.

According to the report, the source said the offer, a re-opening
of a US$2.5 billion issue done in 2006, was managed by Deutsche
Bank AG and JPMorgan Chase & Co.

The yield on the 7.125% bonds due in 2037 has dropped 1.31
percentage points since March to 6.38% as signs the global
recession is easing prompted investors to buy higher-yielding,
emerging-market assets, the report says.  JPMorgan, the report
relates, said the bond’s price has climbed 16 cents on the dollar
to 109.60 cents during that period.

Bloomberg News says the 2037 bonds are the longest-dated
securities Brazil has sold this year in international markets.

“We’re being bold,” the report quoted Finance Minister Guido
Mantega as saying.  Foreign demand for Brazil’s extended-maturity
bonds is a sign of investor confidence in the country’s growth
outlook, Mr. Mantega added.

                        *     *     *

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


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


AGEMO FUND: Placed Under Voluntary Wind-Up
------------------------------------------
On June 22, 2009, the sole shareholder of Agemo Fund Limited
passed a resolution that voluntarily winds up the company's
operations.

The company's liquidator is:

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


ASIA ERA: Commences Wind-Up Proceedings
---------------------------------------
On July 2, 2009, the sole shareholder of Asia Era Fund passed a
resolution that voluntarily winds up the company's operations.

The company's liquidator is:

          Walkers Corporate Services Limited
          c/o Anthony Johnson
          Walker House, 87 Mary Street George Town
          Grand Cayman KY1-9005, Cayman Islands
          Telephone: (345) 914-6314


CONSTELLATION FUND: Creditors' Proofs of Debt Due on August 10
--------------------------------------------------------------
The creditors of Constellation Fund Ltd. are required to file
their proofs of debt by August 10, 2009, to be included in the
company's dividend distribution.

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

The company's liquidator is:

          Ogier
          c/o Matthew Mulry
          South Church Street, PO Box 1234
          Grand Cayman KY1-1108, Cayman Islands
          Telephone: (345) 815 1761
          Facsimile: (345) 949 1986


FR IX OFFSHORE: Placed Under Voluntary Liquidation
--------------------------------------------------
On June 26, 2009, the shareholders of FR IX Offshore GP Limited
passed a resolution that voluntarily liquidates the company's
business.

The company's liquidator is:

          Jennifer Zarrilli
          First Reserve Corporation
          One Lafayette Place, Third Floor
          Greenwich, Connecticut 06830
          United States


HFG INDIA: Commences Wind-Up Proceedings
----------------------------------------
On June 24, 2009, the sole shareholder of HFG India Continuum Fund
(Caymans), SPC passed a resolution that voluntarily winds up the
company's operations.

The company's liquidator is:

          Walkers Corporate Services Limited
          c/o Anthony Johnson
          Walker House, 87 Mary Street George Town
          Grand Cayman KY1-9005, Cayman Islands
          Telephone: (345) 914-6314


LNS MANAGEMENT: Creditors' Proofs of Debt Due on August 21
----------------------------------------------------------
The creditors of LNS Management Limited 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 July 7, 2009.

The company's liquidator is:

          Richard L. Finlay
          c/o Krysten Lumsden
          P.O. Box 2681 GT, Grand Cayman
          Telephone: (345) 945 3901
          Facsimile: (345) 945 3902


LNS PARTNERS: Creditors' Proofs of Debt Due on August 21
--------------------------------------------------------
The creditors of LNS Partners Limited 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 July 7, 2009.

The company's liquidator is:

          Richard L. Finlay
          c/o Krysten Lumsden
          P.O. Box 2681 GT, Grand Cayman
          Telephone: (345) 945 3901
          Facsimile: (345) 945 3902


MEZZANINE FINANCING: Court Enters Wind-Up Order
-----------------------------------------------
On June 30, 2009, the Grand Court of Cayman Islands entered an
order to wind up the operations of Mezzanine Financing Limited.

The company's liquidators are:

          Geoffrey Varga
          Nicolas Matthews
          Kinetic Partners (Cayman) Limited
          The Harbour Centre
          42 North Church Street
          P.O. Box 10387 Grand Cayman KY1-1004
          Cayman Islands


ML EUROMEDIC: Placed Under Voluntary Wind-Up
--------------------------------------------
On July 6, 2009, the sole shareholder of ML Euromedic Co-Invest,
Ltd. passed a resolution that voluntarily winds up the company's
operations.

The company's liquidator is:

          Walkers Corporate Services Limited
          c/o Anthony Johnson
          Telephone: (345) 914-6314
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9005, Cayman Islands


OCCO GLOBAL: Creditors' Proofs of Debt Due on September 20
----------------------------------------------------------
The creditors of OCCO Global Emerging Markets Fund are required to
file their proofs of debt by September 20, 2009, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on July 3, 2009.

The company's liquidator is:

          Rebecca Taylor
          c/o Charlemagne Capital Limited
          St Mary's Court, 20 Hill Street
          Douglas, Isle of Man IM1 1EN, British Isles


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


BANCOLOMBIA SA: To Release Second Quarter Results on August 4
-------------------------------------------------------------
Bancolombia S.A. will hold its second quarter 2009 Conference Call
on Tuesday, August 4, 2009 at 9:30 AM Eastern Time.  Interested
person needs to login at

           http://www.videonewswire.com/event.asp?id=60680

to join or contact:

   Catalina Botero Soto
   catabote@bancolombia.com.co,
   (574)-404-18-38.

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: Oil Pipeline Resumes Ops After Guerrilla Attack
-------------------------------------------------------------
Ecopetrol S.A.'s Cano Limon-Covenas oil pipeline resumed its
operations on July 21, after the facility was attacked by an
unidentified group on July 17, Inti Landauro at Dow Jones
Newswires reports, citing company spokeswoman Alexandra
Santamaria.  The report relates Ms. Santamaria said the Colombian
army secured the zone and Ecopetrol's workers traveled to the area
to fix the pipeline.

According to the report, the 770-kilometer pipeline has a capacity
of 240,000 barrels a day and daily ships about 90,000 barrels of
crude produced in the Cano Limon field located in the Arauca
province in Eastern Colombia to the Caribbean port of Covena.
U.S. oil company Occidental Petroleum Corp. operates the Cano
Limon field and Ecopetrol operates the pipeline, the report notes.

Dow Jones Newswires notes that rebel groups, mainly from the left-
wing guerrilla National Liberation Army used to attack the
pipeline several times a year during the 1990s and the early years
of this decade.

                      About Ecopetrol S.A.

Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest
company in Colombia as measured by revenue, profit, assets and
shareholders' equity.  The company is Colombia's only vertically
integrated crude oil and natural gas company with operations in
Colombia and overseas.  Ecopetrol is one of the 40 largest
petroleum companies in the world and one of the four principal
petroleum companies in Latin America.  It is majority owned by the
Republic of Colombia and its shares trade on the Bolsa de Valores
de Colombia S.A. 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 N  R E P U B L I C
==================================


AES DOMINICANA: Fitch Affirms Issuer Default Rating at 'B-'
-----------------------------------------------------------
Fitch Ratings has affirmed AES Dominicana Energia Finance, S.A.'s
international foreign currency Issuer Default Rating at 'B-'.  The
rating action applies to US$160 million of notes due 2015 issued
by AES Dominicana.  The Recovery Rating has also been affirmed at
'RR4'.  The Rating Outlook is Stable.

Concurrently, Fitch has affirmed AES Andres B.V.'s national scale
long-term rating at 'BBB(dom)'.

AES Dominicana's notes are joint and severally guaranteed by the
company's two operating subsidiaries, AES Andres and Dominican
Power Partners.  In addition, the notes benefit from a six-month
debt-service reserve account and a US$23.5 million guarantee from
AES Corp. (Fitch IDR 'B+').

AES Dominicana's ratings reflect risks of operating electric
generation assets in the Dominican Republic and are constrained by
the systemic risks of the sector.  AES Dominicana sells
electricity to one of the government-owned distribution companies,
which continue to report poor operating and financial results, and
are characterized by very high energy losses, low end-user
collections, and large government subsidies.  Such conditions have
kept distribution companies from effectively transferring cash to
the country's generation companies, and the government subsidies
continue to cover this gap during recent years.  The ratings of
the generators have been constrained one notch below that of the
sovereign as government subsidies to the sector are indirect and
are not direct obligations of the government.  In addition, the
timing of the subsidies and payment by the distribution risk add
to uncertainty and cash flow volatility.

The company's credit metrics are considered very strong for the
rating category.  Due to increased electricity generation, strong
collections and favorable natural gas prices, AES Dominicana's
credit metrics are very strong.  The company generated EBITDA of
US$90 million as of the latest twelve months ended March 31, 2009.
Annual debt service of approximately US$18 million can be
adequately met using cash on hand of US$33 million as of March 31,
2009, as well as AES Corp's US$23.5 million guarantee or the six
months interest reserve account.  Furthermore, the company
received approximately US$56 million of government bonds, which
can be used to pay taxes and other government related payments.
Although the company's EBITDA based credit metrics showed
significant improvement during 2008, cash flow metrics
deteriorated mainly due to high working capital requirements.  AES
Dominicana's cash flow from operations decreased to negative
US$11.5 million in 2008 from negative US$9.3 million in 2007.

Andres and DPP enjoy a competitive advantage due to their
favorable power purchase agreements and the use of liquefied
natural gas versus other fuels to generate electricity.  AES
Dominicana controls the only LNG import point into the Dominican
Republic.  Andres is the newest and most efficient power plant in
the country and ranks among the lowest cost electricity generators
in the country.  Andres' combined-cycle plant burns natural gas
and is expected to be fully dispatched as a base-load unit as long
as the LNG price is not more than 15% above the imported price of
fuel oil No. 6.  AES Dominican generates a significant portion of
its combined operating margin from indirectly servicing DPP's PPA
with AES Andres, which is a more efficient plant.

During 2009, the Dominican Republic government reiterated its
commitment to the sector by paying approximately US$250 million of
past due payables to generation companies with sovereign bonds.
The sector deficit for 2009 has been estimated at approximately
US$700 million or 1.5% of gross domestic product.  Over the next
few years, Fitch expects the government to continue to support the
sector via subsidies and the sector to slowly recover.  DR ranks
fourth as the country with the highest electricity losses
worldwide, after Congo, its neighbor Haiti and Moldavia.
Distribution companies reported a modes increase in the cash
recovery index during 2008 to 63.9% from 59.8% the previous year.
This means that of all the electricity that goes in to the
national grid, only 63.9% is paid for and the balance disappears
as theft, nonpayment, free electricity and technical losses.

AES Dominicana is an energy group operating in the Dominican
Republic, which manages two of AES Corp.'s wholly owned generation
assets, Andres and DPP.  Andres is a power plant with a 304MW
combined cycle generation facility with duel fuel capability
(natural gas and diesel) but with natural gas supplied through the
LNG import facility serving as the primary fuel while DPP is a
236MW power plant comprising two simple cycle combustion turbines
that can burn both natural gas and fuel oil # 2.  Both plants
together have PPA contracts with EDE-Este for 260MW that could
increase over time, but Andres is currently servicing all
contracts given its greater efficiency.  Andres LNG's terminal
includes a large tanker berth and jetty, an LNG refueling pier,
and a one million barrel (160,000 cubic meters, m3) LNG storage
tank, as well as regasification and handling facilities for both
LNG and diesel.


EMPRESA GENERADORA: Fitch Affirms Issuer Default Rating at 'B-'
---------------------------------------------------------------
Fitch Ratings has affirmed Empresa Generadora de Electricidad
Haina, S.A.'s international foreign and local currency Issuer
Default Ratings at 'B- '.  The senior unsecured debt is also
affirmed at 'B-/RR4'.  The rating action applies to US$175 million
of notes due 2017 issued by EGE Haina.  The Rating Outlook is
Stable.  Concurrently, Fitch has affirmed EGE Haina's national
scale rating of 'BBB(dom)', which applies to the company's senior
unsecured debt issuance program of US$30 million.

EGE Haina's ratings reflect risks of operating electric generation
assets in the Dominican Republic and are constrained by the
systemic risks of the sector.  EGE Haina sells electricity to
government-owned distribution companies, which continue to report
poor operating and financial results, and are characterized by
very high energy losses, low end-user collections, and large
government subsidies.  Such conditions have kept distribution
companies from effectively transferring cash to the country's
generation companies and the government subsidies continue to
cover this gap during recent years.  The ratings of the generators
have been constrained one notch below that of the sovereign as
government subsidies to the sector are indirect and are not direct
obligations of the government.  In addition, the timing of the
subsidies and payment by the distribution risk add to uncertainty
and cash flow volatility.

EGE Haina benefits from its diversified portfolio of assets using
different fuel sources to generate electricity, its strong market
position and its operating efficiency.  EGE Haina's generation
assets are composed of fuel oil, diesel, and coal power generation
plants scattered throughout the country.  This gives EGE Haina
different positions on the dispatch merit list (starting from the
second thermoelectric plant to be dispatched in the system after
the coal generation units and ending with peak units).  In
addition, EGE Haina is the largest generation company in the
country, with an installed capacity of 599MW (megawatts).  EGE
Haina's operating efficiency compares well with other generation
companies in the country.

EGE Haina's credit metrics are strong for the rating category;
however, they have been weakening during the past six months due
to the fall of hydrocarbon prices.  Although the company received
approximately US$77 million of sovereign bonds as payment for past
due receivables, current account receivables remain high as of
March 31, 2009, at US$114 million.  Liquidity has also
deteriorated as a result of high dividend payments and lower cash
flow generation.  For the last twelve months ended March 31, 2009,
EBITDA decreased to US$55 million from approximately US$74
reported during 2008.  This translated to a leverage and interest
coverage ratio of 3.4 times (x) and 2.3x, respectively, as of
March 31, 2009. Going forward, EGE Haina's EBITDA generation is
expected to recover somewhat as hydrocarbon prices moderate and
the company increases contracted sales.

Going forward, EGE Haina's business risk is expected to moderate
bolstered by the company's diversified portfolio of generation
assets and sales to CEPM, its affiliate company serving the
tourist east side of the island.  EGE Haina has entered into a
Power Purchase Agreement with CEPM for 50MW.  This contract
reduces somewhat the company's exposure to the DR electricity
sector systemic risk as the east part of the country does not face
these issues.

EGE Haina's collection rate volatility is very high, ranging from
140% to just over 40% in some months.  This reflects the fact that
most of the government subsidies are transferred to distribution
companies during the first half of the year, and in the second
quarter, liquidity at the distribution companies is low.  This is
evidence to the sector dependency on government subsidies.  Should
the government reduce transfers to the sector, the generating
companies' (gencos) collections from distribution companies will
erode fast affecting the gencos liquidity.  Distribution companies
reported a modest increase in the cash recovery index during 2008
to 63.9% from 59.8% the previous year.  This means that of all the
electricity that goes in to the national grid, only 63.9% is paid
for and the balance disappears as theft, nonpayment, free
electricity and technical losses.

During 2009, the Dominican Republic government reiterated its
commitment to the sector by paying approximately US$250 million of
past due payables to generation companies with sovereign bonds.
The sector deficit for 2009 has been estimated at approximately
US$700 million or 1.5% of gross domestic product.  DR ranks fourth
as the country with the highest electricity losses worldwide,
after Congo, its neighbor Haiti and Moldavia.  Over the next few
years, Fitch expects the government to continue to support the
sector via subsidies and the sector to slowly recover.

EGE Haina is one of the largest electricity generation companies
in the Dominican Republic, currently operating seven generator
units and seven plants throughout the country.  The company
currently has a combined installed capacity of approximately 600
MW representing 20% of the country's total installed capacity.  As
of March 31, 2009, EGE Haina's firm capacity was approximately
273MW.


EMPRESA GENERADORA: Fitch Affirms Issuer Default Ratings at 'B-'
----------------------------------------------------------------
Fitch Ratings has affirmed Empresa Generadora de Electricidad
Itabo, S.A.'s international foreign and local currency Issuer
Default Ratings at 'B-'.  The rating action applies to
US$125 million in notes due 2013 issued by Itabo Finance S.A.  The
senior unsecured is also affirmed at 'B-/RR4'.  Concurrently,
Fitch has affirmed Itabo's 'BBB(dom)' national scale rating. The
Outlook for all ratings is Stable.

Itabo's ratings reflect the risks of operating electric generation
assets in the Dominican Republic and are constrained by the
systemic risks of the sector.  Itabo sells electricity to
government-owned distribution companies, which continue to report
poor operating and financial results, and are characterized by
very high energy losses, low end-user collections, and large
government subsidies.  Such conditions have kept distribution
companies from effectively transferring cash to the country's
generation companies, and the government subsidies continue to
cover this gap during recent years.  The ratings of the generators
have remained one notch below that of the sovereign as government
subsidies to the sector are indirect and are not direct
obligations of the government.  In addition, the timing of the
subsidies and payment by the distribution risk add to uncertainty
and cash flow volatility.

The company's financial profile is considered moderately strong
for the rating category and has been significantly improving in
recent months.  During 2008 and the first quarter of 2009, Itabo
benefited from the declining coal prices as its purchase power
agreements have a six-month lag in passing fuel price.  The
company has also marginally benefited from higher firm capacity
allocations.  Going forward, Itabo's EBITDA generation is expected
to decline to levels slightly higher than those reported during
2006 and 2007 as coal prices stabilize and the company's
unfavorable fuel contracts erode margins.  As of the last 12
months ended March 31, 2009, Itabo's leverage had significantly
improved to approximately 1.4 times (x), down from 3.9x at year-
end 2007.  The company's EBITDA-to-interest expenses also improved
to 5.0x from 2.4x in 2007.  Itabo's current liquidity position is
average.  On a cash flow basis, the company's credit metrics are
weaker with funds from operations to adjusted leverage of 6.5x and
FFO interest coverage of 1.1x.

Itabo's ratings are supported by its strong competitive position
as the lowest cost thermoelectric generator in the country.  Itabo
operates two low-cost, carbon-fueled electric generation units and
sells electricity to three distribution companies through well-
structured, long-term U.S-dollar denominated.  While multiple off-
takers diversify its revenue stream, and long-dated PPAs mitigate
price and volume risks, Itabo could face collection risks from the
electric distribution companies, which are still in the process of
improving their own losses and collection rates.

Itabo's average collection from distribution companies during 2008
was low at an average of 72%, a decline from 93% during the same
period last year excluding the US$54 million of sovereign bonds
the company received from the DR government during the second
quarter of 2009 as payment from past-due receivables.  This
reduction reflects the inability of DR state-owned distribution
companies to pass through increasing cost of electricity to end-
users.

Distribution companies reported a modest increase in the cash
recovery index during 2008 to 63.9% from 59.8% the previous year.
This means that of all the electricity that goes into the national
grid, only 63.9% is paid for and the balance disappears as theft,
nonpayment, free electricity and technical losses.

During 2009, the Dominican Republic government reiterated its
commitment to the sector by paying approximately US$250 million of
past-due payables to generation companies with sovereign bonds.
The sector deficit for 2009 has been estimated at approximately
US$700 million or 1.5% of gross domestic product. DR ranks fourth
among countries with the highest electricity losses worldwide,
after Congo, its neighbor Haiti, and Moldavia.  Over the next few
years, Fitch expects the government to continue to support the
sector via subsidies and the sector to slowly recover.

Itabo is a thermo-electric generator in the DR and the second
largest generation plant in the country.  The company has a total
installed capacity 294.5 megawatts of thermo-electric generation
as of December 2008.  The company is currently owned 50% by AES
Corp.'s subsidiary and 49.97% by the DR government, which has one
seat on the board of directors.  The balance is owned by former
employees of CDE (Corporacion Dominicana de Electricidad).  AES
Dominicana manages the company under a management contract, for a
fee of 2.95% of Itabo's sales, while AES Corp. indirectly controls
Itabo's management board.



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


PERENCO CORP: To Make 250 Jobs Redundant Amid Dispute With Ecuador
------------------------------------------------------------------
The Anglo-French oil company Perenco Corp. said it has taken the
first steps towards terminating the contracts of its 250 workers
in the country, Dow Jones Newswires reports, citing Rodrigo
Marquez, Perenco's Latin America manager.

"The government and Petroecuador continue to insist on disobeying
court orders and want us to continue to work under conditions that
clearly violate our rights and contracts," the report quoted Mr.
Marquez as saying.

As reported in the Troubled Company Reporter-Latin America on
July 16, 2009, Perenco Ecuador and its consortium partner,
Burlington Resources Oriente Limited, disclosed that suspension of
their participation contracts with Ecuador is imminent unless the
Government of Ecuador complies with orders of two international
arbitration tribunals that prohibit the government from seizing
oil produced by the consortium.  Perenco Ecuador is the operator
of Blocks 7 and 21 in Ecuador.

"Given that the takeover already is irreversible after the
statements by President [Rafael] Correa and other government
officials, we have no alternative but to proceed with the
termination of our employees' contracts," the report quoted
Marquez as saying.

According to the report, the dispute between Perenco and Ecuador
stems from the government's charge that the company owes
approximately US$338 million, excluding late-payment fees, from
overdue windfall oil taxes.

Perenco Corp, the report notes, has requested a meeting with
government officials to ensure a smooth transition for its
workers, now working under Petroamazonas, but as of July 28, the
Ministry of Mines was still analyzing the request.

                         About Perenco

Perenco -- http://www.perenco.com/-- is an exploration and
production company dedicated to developing oil and natural gas
potential.  Perenco Ecuador Limited is part of a privately held
upstream oil and gas company and is the operator of Blocks 7 and
21 in Ecuador.


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


AIR JAMAICA: Cabinet Discusses Report on Airline Divestment
-----------------------------------------------------------
The Jamaican government moves closer to hand over Air Jamaica
Limited to its new owners, as the cabinet deliberate on a report
from the Divestment Committee, RadioJamaica reports.  The report
will be submitted by Minister Without Portfolio in the Ministry of
Finance Senator Don Wehby, who is overseeing the sale of Air
Jamaica.

According to the report, the Cabinet will have to give the final
nod before a sale will be official.

As reported in the Troubled Company Reporter-Latin America on
June 29, 2009, RadioJamaica News said the Jamaican government
indicated it will name a buyer for cash-strapped Air Jamaica.  The
report related the sale is scheduled to be completed before the
July 31 deadline which was set by the Finance Ministry.  A TCR-LA
report on June 10, citing Jamaica Observer, related that Trinidad
and Tobago-owned Caribbean Airlines and Thomas Cook have both
expressed an interest in acquiring Air Jamaica.  Radio Jamaica
said the airline has been hemorrhaging over US$150 million per
annum and the government has had to foot the massive bill.  In
addition, Radio Jamaica said, Air Jamaica currently has over
US$600 million in loans outstanding.

                        About Air Jamaica

Headquartered in Kingston, Jamaica, Air Jamaica Limited --
http://www.airjamaica.com/-- was founded in 1969.  It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America.  Air Jamaica offers vacation packages
through Air Jamaica Vacations.  The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.  The
Jamaican government owned 25% of the company after it went private
in 1994.  However, in late 2004, the government assumed full
ownership of the airline after an investor group turned over its
75% stake.  The Jamaican government does not plan to own Air
Jamaica permanently.

                          *     *     *

As of June 30, 2009, the company continues to carry Moody's LT
Corp Family rating and Senior Unsecured Debt rating at B2.  The
company also continues to carry Standard and Poor's LT Foreign
Issuer Credit Rating at B-.


JAMAICA PUBLIC SERVICE: Gov't to Break Electric Sector Monopoly
---------------------------------------------------------------
The governing Jamaica Labour Party and the Opposition People's
National Party have agreed on the need to end Jamaica Public
Service Company Limited's monopoly on the distribution of
electricity, Arthur Hall at the Jamaica Gleaner reports.

"We believe that it is now necessary to reconsider the value of
maintaining a monopolistic structure in respect to distribution
and transmission of electricity," the report quoted Energy
Minister James Robertson as saying.  "As such, similar to power
generation, power transmission and distribution must now be open
to competition," Mr. Robertson added.

"The proposal is to unbundle the grid to allow new producers of
electricity to reach their consumers because they would be able to
market directly," Phillip Paulwell, the opposition spokesman on
energy, told the Gleaner in an interview.  "What we are saying is
that there ought to be an interconnection price for people to
traverse the (JPSCO) grid and you also need a universal-access fee
that would enable the incumbent to take care of areas that are
uneconomic," Mr. Paulwell added.

However, the report relates political leaders will have to get the
buy-in from the Abu Dhabi National Energy Company (TAQA) of the
United Arab Emirates, which recently acquired an 80% stake in the
JPS.  The government holds the remaining 20%.

According to the report, the company currently operates under the
All-Island Electricity Licence (2001), which gives it the
exclusive right to transmit, distribute and supply electricity
throughout the island for a period of 20 years.  The report
relates the license, which was modified in 2006, is not slated to
expire until 2019 and the government would have to make a
compelling case to convince TAQA to give that up.

The Gleaner notes the company said, "[it] remains open to any
proposal that will contribute to the delivery of improved service
to customers at a reasonable cost while enhancing the value of
JPSCO".

                           About JPSCO

Headquartered in Kingston, Jamaica -- https://www.jpsco.com --
Jamaica Public Service Company Limited (JPSCO) is an integrated
electric utility company and the sole distributor of electricity
in Jamaica.  The company is engaged in the generation,
transmission and distribution of electricity, and also purchases
power from five Independent Power Producers.  Japanese-based
Marubeni Corporation owns 80 percent of the company.  The
Government of Jamaica and a small group of minority shareholders
own the remaining shares.  JPS currently has approximately 582,000
customers who are served by a workforce of over 1,600 employees.
The Company owns and operates 28 generating plants, 54
substations, and approximately 14,000 kilometers of distribution
and transmission lines.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 9, 2009, Radio Jamaica said JPSCO may shutdown its
operations if the company fails to settle a long-standing dispute
over outstanding payments to employees.  The same report said
employees unions contended the payments are owed for overtime work
and redundancy adjustments from 2001 to 2007, which amounts to
about JM$600 million.


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


ASARCO LLC: To Reimburse SCC Judgement Bidders' Costs
-----------------------------------------------------
ASARCO LLC asks the U.S. Bankruptcy Court for the Southern
District of Texas to approve the reimbursement of all or a
portion of actual, documented due diligence expenses incurred by
certain bidders selected to proceed to the second phase of the
stalking-horse bidder selection process in connection with the
potential auction and potential sale of all or a portion of the
judgment entered on April 15, 2009, by the U.S. District Court
for the Southern District of Texas, Brownsville Division, in
favor of ASARCO, in the litigation against Americas Mining
Corporation relating to shares of Southern Peru Copper Company,
now known as Southern Copper Corporation.

In relation to the Reimbursement Request, ASARCO also seeks
authority to file under seal an exhibit on a summary of
indicative offers and an exhibit on the amounts of reimbursement
funds.  ASARCO asserts that the Exhibits contain trade secrets.

Jack L. Kinzie, Esq., at Baker Botts L.L.P., in Dallas, Texas,
relates that the Debtors' Plan of Reorganization is to be funded
with ASARCO's cash on hand and the cash proceeds of the sale of
the ASARCO LLC operating assets to Sterlite (USA) Inc., interests
in the US$770 million Sterlite promissory note secured by the
ASARCO LLC operating assets, and the SCC Judgment, which awarded
ASARCO:

  (a) 260,093,694 shares of SCC common stock, which represents
      approximately 30.6% of the 850,000,000 total shares of SCC
      common stock currently outstanding, and which, using SCC's
      closing price of US$19.59 per share on July 2, 2009, are
      worth approximately US$5.1 billion; and

  (b) US$1,382,307,217 in cash related to money damages and pre-
      judgment interest, plus post-judgment interest, accruing
      at the statutory rate of 0.6% per annum, on the money
      damages and dividends paid on the SCC shares from Apr. 15,
      2009, until payment of the SCC Judgment.

Maximizing the value of ASARCO LLC's assets for the benefit of
all creditors and stakeholders under a plan of reorganization has
been the overarching goal in this reorganization, Mr. Kinzie
notes.  To that end, after weeks of discussing and evaluating
various options for monetizing the SCC Judgment, ASARCO decided
to engage its financial advisors, Barclays Capital Inc., to
evaluate available strategic alternatives regarding the SCC
Judgment, including a sale of all or a portion of the SCC
Judgment through a competitive auction process.

Barclays is now in the midst of a two-part bid solicitation
process, subject to a topping auction, which is intended to
induce parties to submit their highest and best bid at the outset
of the process, create a level-playing field, and maximize value
for the benefit of ASARCO and its bankruptcy estate, Mr. Kinzie
tells the Court.  To date, he notes, the Bid Solicitation Process
has developed into the selection of potential bidders from those
that submitted indicative bids, second phase due diligence and
expense reimbursement.

Going forward, ASARCO anticipates the Bid Solicitation Process to
progress.  ASARCO, however, says it may eliminate and develop the
following process as necessary, (i) invitation for binding
proposals, (ii) evaluation of binding bids, (iii) entry into a
stalking-horse purchase agreement, and (iv) conduct of topping
auction.

ASARCO believes that the Bid Solicitation Process is fair and
reasonable, and will serve to procure the highest and best
stalking-horse offer for the SCC Judgment.  The Bid Solicitation
Process will, among other things, retain for the benefit of the
Debtors' bankruptcy estates the prospect of a successful sale of
the SCC Judgment to a stalking-horse bidder, while enabling
ASARCO to solicit higher or better bids at a topping auction, Mr.
Kinzie maintains.

If approved, Mr. Kinzie says, the Expense Reimbursement will only
be distributed to qualified bidders.  He asserts that the Expense
Reimbursement is necessary to attract and incent qualified
parties to undertake the necessary due diligence, a significant
portion of which will entail highly sophisticated legal analysis,
and to make the capital commitment required to have a meaningful
auction of the SCC Judgment.

                   ASARCO Seeks Protective Order
                   On Parent's Discovery Request

In connection with the Reimbursement Motion, the Parent served on
ASARCO LLC on July 21, 2009, notices of intent to take the
deposition of George Mack, managing director at Barclays Capital
Inc., the Debtors' financial advisor, and other ASARCO LLC
representatives.  Among others, the Parent wants Mr. Mack to give
testimony related to bidders' requests for expense reimbursement,
bidders' requests for confidentiality and the need for expense
reimbursement as a component of an auction process.

In a separate request, ASARCO LLC seeks a protective order with
respect to the Parent's discovery request.  ASARCO contends that
the Parent's Discovery Requests are overly broad and seek
confidential testimony and documents, most of which are not
reasonably calculated to lead to the discovery of admissible
evidence related to the reimbursement motion.

"The Parent's Discovery Requests are a thinly-veiled attempt by
the Parent to peek behind the curtain of the extremely
confidential workings of the SCC judgment sale process in order
to gain an upper hand as bidder for that judgment and to drive
down the value of that asset," Mr. Kinzie asserts.  "This is a
familiar Parent tactic that this Court has previously rejected,"
he asserts, citing that the Parent attempted this very maneuver
of requesting extremely confidential information of the details
of potential plan sponsors' bids and ASARCO's evaluation of the
Parent bid in relation to ASARCO's request for bid protections
and just prior to the May 2008 plan sponsor selection meeting.

"The Parent seeks to squelch competition in the sale of the SCC
judgment and to use discovery in the bankruptcy action to gain an
impermissible upper hand in an auction process," Mr. Kinzie
contends.   The Parent's Discovery Requests, he notes, seek to
discover the details of the SCC judgment sale process, the very
indications of interest against which the Parent would compete,
the process by which ASARCO will select Qualified Bidders, and
the process by which ASARCO will select a stalking-horse bidder
for the SCC judgment.

"No potential purchaser of the SCC judgment should have all of
these materials," Mr. Kinzie emphasizes.  "With them it would
take little effort for a potential purchaser to calculate the
perfect bid for the SCC judgment -- one that is just a hair
better than those of its fellow competitors considering the
criteria ASARCO intends to use to evaluate bids.  That flies in
the face of an auction's very purpose -- maximizing value," he
adds, among other assertions.

      Parent & Committee Respond to Reimbursement Request

Americas Mining Corporation and Asarco Incorporated oppose the
reimbursement of any bidder, who is under no obligation make a
binding proposal to purchase the SCC Judgment, as unnecessary and
unprecedented.  The Parent also objects to the filing of Exhibits
under seal and insists that it, and other constituencies in the
bankruptcy cases, is entitled to the knowledge contained in the
Exhibits.  In the alternative, the Parent contends that limited
disclosure of certain facts contained in the Exhibits is the most
equitable method of balancing the Debtors' interest in
confidentiality with the Parent and other stakeholders' ability
to protect their respective interests in connection with the
potential auction and sale of the SCC Judgment.

On the other hand, the Official Committee of Unsecured Creditors
of ASARCO LLC contends that it has not had an opportunity to
review the bid process outlined in the request nor consult with
the Debtors.  It maintains that the SCC Judgment is one of the
major assets of the Debtors' estates and thus, management and
potential disposition of that asset is of principal concern to
creditors.  The Committee, thus, asks the Court to adjourn the
matter until it is given the time to meet with Barclays and
counsel to the Debtors to understand the expectations of the
bidding process, and to determine if the expenditure of estate
funds is in the best interests of the Debtors' estates.

                          *     *     *

According per the minutes of a July 21, 2009 hearing, the Court
has reset the date to consider ASARCO's reimbursement request
upon the submission of further evidence.  The requested Exhibits
were filed under seal during the July 21 hearing, and additional
attachments were added on July 23.

                         About ASARCO LLC

Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.

ASARCO LLC filed for Chapter 11 protection on August 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207).  James R. Prince, Esq., Jack
L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts
L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq.,
and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth,
P.C., represent the Debtor in its restructuring efforts.  Lehman
Brothers Inc. provides the ASARCO with financial advisory services
and investment banking services.  Paul M. Singer, Esq., James C.
McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give
legal advice to the Official Committee of Unsecured Creditors and
David J. Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.

When ASARCO LLC filed for protection from its creditors, it listed
US$600 million in total assets and US$1 billion in total debts.

ASARCO LLC has five affiliates that filed for Chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos.
05-20521 through 05-20525).  They are Lac d'Amiante Du Quebec
Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company,
Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors.  Former judge Robert C. Pate
has been appointed as the future claims representative.  Details
about their asbestos-driven Chapter 11 filings have appeared in
the Troubled Company Reporter since April 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-
21346) also filed for Chapter 11 protection, and ASARCO has asked
that the three subsidiary cases be jointly administered with its
Chapter 11 case.  On October 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding.  The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.

ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on December 12, 2006.  (Bankr. S.D. Tex. Case No.
06-20774 to 06-20776).

Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008.  (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).

ASARCO LLC filed a plan of reorganization on July 31, 2008,
premised on the sale of the Debtors' assets to Sterlite USA for
US$2.6 billion.  By October 2008, ASARCO LLC informed the Court
that Sterlite refused to close the proposed sale and thus, the
Original Plan could not be confirmed.  The parties has since
renewed their purchase and sale agreement and ASARCO LLC has
obtained Court approval of a settlement and release contained in
the new PSA for the sale of the ASARCO assets for US$1.1 billion
in cash and a US$600 million note.

Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted its own plan which allows it to keep its equity
interest in ASARCO LLC by offering full payment to ASARCO's
creditors.  AMC offered provide up to US$2.7 billion in cash and a
US$440 million guarantee to assure payment of all allowed creditor
claims, including payment of liabilities relating to asbestos and
environmental claims.  AMC's plan is premised on the estimation of
the approximate allowed amount of the claims against ASARCO.

Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding undertaken
by ASARCO LLC and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


ASARCO LLC: Wants Parent to Produce Plan-Related Documents
----------------------------------------------------------
ASARCO LLC asks the Bankruptcy Court to compel Americas Mining
Corporation and Asarco Incorporated to produce documents relevant
to the Parent's Modified Fifth Amended Plan of Reorganization for
the Debtors.

Jack L. Kinzie, Esq., at Baker Botts L.L.P., in Dallas, Texas,
contends that the Court should order the Parent to produce the
requested financial information and communications between the
Parent and financial institutions because those documents are
relevant to the issue of the feasibility of the Parent's Plan,
and the Parent has provided no good reason for refusing to
produce the requested documents.

Mr. Kinzie also asserts that the Parent has not argued that the
requested financial information and communications with financial
institutions are irrelevant to the feasibility of the Parent's
Plan, nor could it.  Instead, the Parent has provided three
insufficient reasons for failing to produce the requested
documents, Mr. Kinzie points out, which are:

  (1) Sterlite (USA), Inc., purportedly has refused to produce
      financial information requested by the Parent;

  (2) The Parent believes the financial information it has
      produced to ASARCO should provide ASARCO with the
      information it needs; and

  (3) The Parent has produced all documents provided by the
      Parent and Grupo Mexico SAB de C.V., to possible lenders
      of financing to fund the Parent's Plan.

ASARCO seeks from the Parent documents relating to the sources of
the Parent Contribution, and those relating to the financial
ability of the Parent to close under the terms of the Parent's
Plan.

                        Parent Objects

The Parent asks the Court to deny ASARCO LLC's request as it
seeks the production of documents beyond the permissible scope of
discovery.  The Parent argues that ASARCO LLC's request (i) seeks
information that is irrelevant and confidential and which must be
protected from disclosure, (ii) fails to inform the Court of all
the financial information provided to ASARCO by the Parent, and
(iii) seeks information, which it neither sought nor obtained
from Sterlite.

Charles A. Beckham, Jr., Esq., at Haynes and Boone, LLP, contends
that ASARCO's request is an unfortunate use of the Court's and
the parties' time.  He points out that as the Parent has
previously advised ASARCO, the documents sought in the three
categories either do not exist or are confidential, proprietary,
irrelevant, and well beyond the permissible scope of discovery.

                         *     *     *

The Court grants in part and denies in part ASARCO LLC's request.
Judge Schmidt directs the Parent to produce to ASARCO LLC these
documents:

  (a) All documents relating to the financial ability of the
      Parent to close under the terms of the Parent's Plan;

  (b) All documents relating to the Parent's and Grupo Mexico's
      capacity to borrow money, including analyses of the
      Parent's and Grupo Mexico's capacity to borrow money;

  (c) Standalone financial statements and balance sheets for
      AMC, unconsolidated with its subsidiaries; and

  (d) Standalone financial statements and balance sheets for
      ASARCO Incorporated, unconsolidated with its subsidiaries.

The Court also rules that if the Parent obtains a commitment
letter or other definitive agreement to fund the Parent's Plan
from financial institutions, the Parent should immediately
produce to ASARCO LLC the letter or agreement and all
communications between the Parent or Grupo Mexico, on the one
hand, and the financial institutions providing the commitment or
agreement, on the other hand, including loan or letter of credit
applications, presentations, and terms sheets or summary of
indicative terms regarding the financing.

If the Parent obtains a commitment letter or other definitive
agreement to fund the Parent's Plan from financial institutions,
Judge Schmidt directs the Parent, within a reasonable period of
time, to allow ASARCO LLC to depose a corporate representative of
the Parent regarding the letter or agreement and the negotiations
between the Parent or Grupo Mexico with the financial
institutions providing the letter or agreement.

                         About ASARCO LLC

Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.

ASARCO LLC filed for Chapter 11 protection on August 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207).  James R. Prince, Esq., Jack
L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts
L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq.,
and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth,
P.C., represent the Debtor in its restructuring efforts.  Lehman
Brothers Inc. provides the ASARCO with financial advisory services
and investment banking services.  Paul M. Singer, Esq., James C.
McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give
legal advice to the Official Committee of Unsecured Creditors and
David J. Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.

When ASARCO LLC filed for protection from its creditors, it listed
US$600 million in total assets and US$1 billion in total debts.

ASARCO LLC has five affiliates that filed for Chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos.
05-20521 through 05-20525).  They are Lac d'Amiante Du Quebec
Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company,
Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors.  Former judge Robert C. Pate
has been appointed as the future claims representative.  Details
about their asbestos-driven Chapter 11 filings have appeared in
the Troubled Company Reporter since April 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-
21346) also filed for Chapter 11 protection, and ASARCO has asked
that the three subsidiary cases be jointly administered with its
Chapter 11 case.  On October 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding.  The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.

ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on December 12, 2006.  (Bankr. S.D. Tex. Case No.
06-20774 to 06-20776).

Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008.  (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).

ASARCO LLC filed a plan of reorganization on July 31, 2008,
premised on the sale of the Debtors' assets to Sterlite USA for
US$2.6 billion.  By October 2008, ASARCO LLC informed the Court
that Sterlite refused to close the proposed sale and thus, the
Original Plan could not be confirmed.  The parties has since
renewed their purchase and sale agreement and ASARCO LLC has
obtained Court approval of a settlement and release contained in
the new PSA for the sale of the ASARCO assets for US$1.1 billion
in cash and a US$600 million note.

Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted its own plan which allows it to keep its equity
interest in ASARCO LLC by offering full payment to ASARCO's
creditors.  AMC offered provide up to US$2.7 billion in cash and a
US$440 million guarantee to assure payment of all allowed creditor
claims, including payment of liabilities relating to asbestos and
environmental claims.  AMC's plan is premised on the estimation of
the approximate allowed amount of the claims against ASARCO.

Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding undertaken
by ASARCO LLC and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


ASARCO LLC: Wants Withdrawal of Reference of Confirmation Issues
----------------------------------------------------------------
ASARCO LLC, Americas Mining Corporation, Asarco Incorporated,
the Official Committee of Asbestos Claimants, the Future Claims
Representative, and the Official Committee of Unsecured Creditors
of ASARCO LLC jointly ask:

  (a) the U.S. Bankruptcy Court for the Southern District of
      Texas, pursuant to Section 157(d) of the Judicial and
      Judiciary Procedures Code, to withdraw the reference
      of confirmation-related and related injunction requests to
      the U.S. District Court for the Southern District of
      Texas;

  (b) the District Court, after appropriate consideration, to
      refer the confirmation issues back to the Bankruptcy Court
      for evidentiary hearing and the issuance of proposed
      findings of fact and conclusions of law; and

  (c) the District Court, in accordance with the withdrawal of
      reference, after considering the Bankruptcy Court's
      proposed findings and conclusions and any related
      objections, enter a confirmation order and enter the
      requested injunction.

The Debtors, et al., further propose that interested parties be
allowed 10 days to object to the Bankruptcy Court's proposed
findings of fact and conclusions of law.

The proposed procedure complies with statutory requirements,
avoids delay, and most efficiently resolves the issues presented
by confirmation and related injunction requests, Jack L. Kinzie,
Esq., at Baker Botts L.L.P., in Dallas, Texas, asserts.

Mr. Kinzie notes that the Bankruptcy Court approved the Joint
Disclosure Statement with respect to three competing plans
proffered by the Debtors, the Parent, and Harbinger Capital
Partners Master Fund I, Ltd., on July 2, 2009.  The Disclosure
Statement Order also established procedures for issuing notices,
soliciting votes, and preparing and tabulating ballots with
respect to the three Plans.  The Bankruptcy Court has scheduled
the confirmation hearings to begin August 10, 2009, and to
continue through August 19, 2009, if necessary.  Notice of the
scheduled confirmation hearing has been provided to parties-in-
interest.

"A significant issue throughout this bankruptcy case has been the
resolution of substantial asbestos-related liability asserted
against the Debtors," Mr. Kinzie relates.  He reminds that Court
that both the Debtors' Plan and the Parent's Plan propose to
transfer asbestos-related liability to an Asbestos Trust, which
will be funded by Plan assets that will be used to resolve
asbestos-related claims and demands.  Both the Debtors' and the
Parent's Plans also provide for issuance of a permanent
channeling injunction pursuant to Section 524(g) of the
Bankruptcy Code with respect to all asbestos-related claims.
Both Plans require, among other things, that the District Court
make or affirm various findings with respect to the requested
injunction.

Mr. Kinzie contends that withdrawing the reference with respect
to confirmation and injunction-related issues would vest
responsibility for entering any confirmation order and injunction
in the District Court, and avoid statutory construction questions
regarding the meaning of the phrase "or affirmed" under Section
524(g)(3)(A).  At the same time, Mr. Kinzie points out, referring
confirmation and injunction-related issues back to the Bankruptcy
Court to conduct an evidentiary hearing and make findings of fact
and conclusions of law recognizes the Bankruptcy Court's
expertise, its familiarity with the parties, and its experience
in hearing and adjudicating numerous issues in the course of the
multi-year ASARCO bankruptcy.  "The combination of withdrawal and
referral, thus, provides for an efficient process that conserves
judicial resources and follows statutory directive," he says.

Mr. Kinzie also asserts that the requested procedure accords with
requirements of both the Debtors' and the Parent's Plans, which
Plans condition effectiveness on, among other things, a finding
made or affirmed by the District Court that the plan complies
with Section 524(g).  He adds that the proposed procedure avoids
unnecessary delay that might result if a confirmation order were
issued by the Bankruptcy Court and appealed to the District
Court, but at the same time allows a reasonable time for parties
to object to the Bankruptcy Court's proposed findings and
conclusions and be heard, if necessary on any objections.

Judge Schmidt issued a report and recommendation on the Motion to
Withdraw Reference on July 21, 2009, whereby he agrees with the
Debtors' assertions on the proposed procedure of the withdrawal
of reference of confirmation-related issues and for the referral
of issues to the Bankruptcy Court for evidentiary hearing.  A
full-text copy of the Court' report and recommendation is
available for free at:

http://bankrupt.com/misc/ASARCO_Schmidt_Findings_072109.pdf

                         About ASARCO LLC

Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.

ASARCO LLC filed for Chapter 11 protection on August 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207).  James R. Prince, Esq., Jack
L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts
L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq.,
and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth,
P.C., represent the Debtor in its restructuring efforts.  Lehman
Brothers Inc. provides the ASARCO with financial advisory services
and investment banking services.  Paul M. Singer, Esq., James C.
McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give
legal advice to the Official Committee of Unsecured Creditors and
David J. Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.

When ASARCO LLC filed for protection from its creditors, it listed
US$600 million in total assets and US$1 billion in total debts.

ASARCO LLC has five affiliates that filed for Chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos.
05-20521 through 05-20525).  They are Lac d'Amiante Du Quebec
Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company,
Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors.  Former judge Robert C. Pate
has been appointed as the future claims representative.  Details
about their asbestos-driven Chapter 11 filings have appeared in
the Troubled Company Reporter since April 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-
21346) also filed for Chapter 11 protection, and ASARCO has asked
that the three subsidiary cases be jointly administered with its
Chapter 11 case.  On October 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding.  The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.

ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on December 12, 2006.  (Bankr. S.D. Tex. Case No.
06-20774 to 06-20776).

Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008.  (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).

ASARCO LLC filed a plan of reorganization on July 31, 2008,
premised on the sale of the Debtors' assets to Sterlite USA for
US$2.6 billion.  By October 2008, ASARCO LLC informed the Court
that Sterlite refused to close the proposed sale and thus, the
Original Plan could not be confirmed.  The parties has since
renewed their purchase and sale agreement and ASARCO LLC has
obtained Court approval of a settlement and release contained in
the new PSA for the sale of the ASARCO assets for US$1.1 billion
in cash and a US$600 million note.

Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted its own plan which allows it to keep its equity
interest in ASARCO LLC by offering full payment to ASARCO's
creditors.  AMC offered provide up to US$2.7 billion in cash and a
US$440 million guarantee to assure payment of all allowed creditor
claims, including payment of liabilities relating to asbestos and
environmental claims.  AMC's plan is premised on the estimation of
the approximate allowed amount of the claims against ASARCO.

Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding undertaken
by ASARCO LLC and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


CEMEX SAB: Second Quarter Profit Drops 58% to US$187 Million
-------------------------------------------------------------
CEMEX, S.A.B. de C.V.'s second quarter profit dropped 58% to
US$187 million in the April-June period from a US$444 million
profit in the same period of 2008, The Associated Press reports.
The report relates the company's sale for the period dropped 34%
to US$4.2 billion from US$6.3 billion.

"During the second quarter of 2009, we continued to face a
challenging business environment," Executive Vice President Hector
Medina was quoted by the report as saying.  "In response to the
difficult times we are facing, we are first and foremost committed
to reducing our debt level through the realization of our global
cost-reduction efforts and our right-sizing initiatives," Mr.
Medina added.

According to the report, the company's net debt increased by
US$238 million during the latest quarter, reaching US$18.3 billion
at the end of June.

The report notes Cemex SAB said its revenue decline was a smaller
20% when adjusted for currency fluctuations, the nationalization
of its operations in Venezuela in mid-2008, and the sale of assets
in the Canary Islands.  The report relates the company's sales
were down 21% in Mexico, and off 43% in the United States; while
revenue declined 54% in Spain, 40% in Britain and 30% in the rest
of Europe.

The company, The AP adds, said the decrease in its operating
income, down 54% to US$411 million, was "partially mitigated" by
lower losses on financial instruments than in the first quarter.

                      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.


CEMEX SAB: Creditors Holding 90% of Debt Support Refinancing Plan
-----------------------------------------------------------------
CEMEX, S.A.B. de C.V.'s creditors, which represents 90% of debt,
said they support a refinancing plan that the company has
presented, Thomas Black at Bloomberg News reports, citing Hector
Medina, chief of finance and legal.

According to the report, Mr. Medina said the plan needs acceptance
by all creditors under the plan.

As reported in the Troubled Company Reporter-Latin America on
July 1, 2009 Cemex SAB said it continues to make significant
progress with its core banks that represent a majority of the
Company’s outstanding bank debt.  Cemex presented its refinancing
proposal to the Company’s full syndicate of banks at a meeting
held in New York on June 29.  Cemex said a key component of the
proposed refinancing plan is a revised maturity schedule on a new
facility encompassing US$14.5 billion in bank debt that would run
through February 2014.  The company said that this revised
schedule would shift 2009-2011 maturities substantially into the
future.  LatinFrance related that the full details of the new
structure has not been disclosed but bank market participants said
initial impressions are that it is a reasonable offer, albeit at
pricing that is still below market.

According to LatinFrance, the main features involve an extension
of maturities through one or more new facilities, and a
commensurate increase in margins.  The report related one banker
overseeing Cemex facilities with new tenors ranging from 5-7 years
estimates updated pricing could stand at around 400bp over Libor.

A TCRLA March 11 report, citing Bloomberg News, related
Cemex started discussions with banks to renegotiate about US$14.5
billion of debt after postponing its bond sale.  Company spokesman
Jorge Perez, as cited by Bloomberg News, said the US$14.5 billion
is all of Cemex’s bank debt and doesn’t include any bonds.  At the
end of December, Cemex had total debt of US$18.8 billion, the
report noted.  According to Reuters, Cemex has been slammed by
debt problems after its ambitious Rinker takeover in 2007,
slumping sales, and losses on derivatives amid turmoil caused by
the global credit crisis.

                       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.


CONTROLADORA COMERCIAL: Q2 Net Profit Falls 71% to MXN83.6 Million
------------------------------------------------------------------
Controladora Comercial Mexicana SAB de CV a.k.a Comerci's second
quarter net profit dropped 71% to MXN83.6 million (US$6.3 million)
on higher financial costs, Paul Kiernan at Dow Jones Newswires
reports.  The report relates the company, citing a filing with the
Mexican stock exchange, said its sales rose 5.3% to MXN13.38
billion, while operating profit fell 9.7% to MXN672.1 million.
The company also reported a MXN461.7 million financial loss in the
second quarter, the report says.

According to the report, holders of about MXN1.5 billion in bonds
issued by the company, which is in the process of renegotiating
debt, rejected a restructuring offer, saying the offer would
involve a haircut of about 50% on the debt, with payments
stretched out over too long a period.

As reported in the Troubled Company Reporter-Latin America on
July 22, 2009, Bloomberg News said Comerci is holding
restructuring talks with JPMorgan Chase & Co.  The report recalled
Comerci expects JPMorgan Chase & Co. to join five other banks in
approving a plan to restructure more than US$1.5 billion of debt.
The report related Barclays Plc, Goldman Sachs Group Inc., Bank of
America Corp.'s Merrill Lynch, Banco Santander SA and Citigroup
Inc. agreed in principle to restructure the company's peso
derivative losses.  Reuters recalled that Comerci defaulted in
October after massive derivatives losses sent its debt soaring
above US$2 billion.  On Oct. 9, 2008, Comerci filed for protection
under Mexico's bankruptcy code Ley de Concurso Mercantil.

                          About Comerci

Controladora Comercial Mexicana SAB de CV a.k.a Comerci
(MXK:COMERCIUBC) --- http://www.comerci.com.mx/--- is a Mexican
holding company that, through its subsidiaries, operates several
chains of retail stores, as well as a chain of family restaurants
under the Restaurantes California brand name.  In addition, CCM
owns a 50% interest in the Costco de Mexico, a joint venture with
Costco Wholesale Corporation, which operates a chain of membership
warehouses in Mexico.  The company's store chains include
Comercial Mexicana, City Market, Mega, Bodega CM, Sumesa and
Alprecio, among others.  As of December 31, 2007, CCM operated 214
commercial units and 71 restaurants across Mexico.  The company's
retail outlets sell a variety of food items, including basic
groceries and perishables, and non-food items, which include
electronics, home furnishings, personal hygiene products and
clothing.  CCM is a parent of Tiendas Comercial Mexicana SA de CV,
Tiendas Sumesa SA de CV, Restaurantes California SA de CV and
Costco de Mexico SA de CV, among others.

                         *     *     *

As of June 19, 2009, the company continues to carry Moody's "D" LT
Issuer Credit ratings.  The company also continues to carry Fitch
Ratings' "D" LT Issuer Default ratings.


GRUMA SAB: S&P Retains CreditWatch Negative on 'B+' Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on GRUMA
S.A.B. de C.V., including its 'B+' corporate credit rating, remain
on CreditWatch with negative implications, where they were placed
on Oct. 13, 2008. S&P based that action on its perception of
GRUMA's more aggressive financial policy, including the use of
derivative instruments.  S&P has determined that the company's
July 27, 2009, announcement that it had obtained an extension
until August 24, 2009, to conclude negotiations with its
derivatives counterparties to convert $726.6 million related to
these instruments into term loans will not affect the CreditWatch
action.  Although the company has not finalized the details of
such loans, S&P expects them to be secured, stipulate a term of
7.5 years, and carry an interest rate of LIBOR plus 2.875% for the
first three years.

S&P believes GRUMA will be able to settle the matter during the
next few weeks and under the terms set forth in previous
announcements.  On a pro forma basis, S&P expects the company's
total debt to reach about $1.8 billion and its total debt-to-
EBITDA and funds from operations-to-total debt ratios to come in
at about 4.5x and 17%, respectively.  S&P also anticipates that
the guarantees on the term loan won't result in a structural
subordination of the company's rated debt.  The high likelihood
that it will successfully negotiate its term loan mitigates most
of S&P's concerns regarding GRUMA's foreign-exchange derivative
exposure.  S&P could, therefore, affirm the rating at 'B+' once
the company closes the term loans transactions.  On the other
hand, if GRUMA doesn't finalize the term loan on or before
August 24, 2009, S&P could take a negative rating action.




GRUPO TMM: Reports Second-Quarter 2009 Financial Results
--------------------------------------------------------
Grupo TMM, S.A.B. reported its financial results for the second
quarter and first six months of 2009.

                      Management Overview

Jose F. Serrano, chairman and chief executive officer of Grupo
TMM, said, "Our results in the first six months of 2009
demonstrate the resilience and long-term viability of our Maritime
assets and reaffirm the long-term strength of our Company.
Despite weak global economic conditions, maritime revenues
improved through the first six months of 2009.  Our unique market
position should provide us the opportunity to grow once the global
economy stabilizes and markets return to a period of steady
growth.

"Despite the strength of TMM's Maritime assets and operations,
weak economic conditions in Mexico negatively impacted other
operations in the first half of this year.  Leading financial
institutions consider the second quarter of 2009 as the worst
quarter for the Mexican economy since 1995.  Unemployment hit a
high of 6.8% in May; annualized inflation was 5.7% in June; total
production of automobiles decreased 42.9% in the first six months
of the year; Mexico's trade balance deficit was negative by $1.2
billion in the first six months of the year; and Federal fiscal
revenue decreased 26.4% in May.  Additionally, the swine flu
outbreak paralyzed the Mexican economy at the end of April and the
beginning of May, impacting GDP growth for the quarter.  The
Central Bank of Mexico is expecting GDP to decrease approximately
6 percent in 2009."

Mr. Serrano continued, "Consolidated revenues decreased 19.5
percent and 13.4% in the second quarter and first six months of
2009, respectively, compared to the same periods last year.  The
revenue decrease at Logistics was due mainly to the depreciation
of the peso versus the dollar in the first six months of 2009
compared to the same period last year.  Additionally this division
experienced reduced volumes as a result of lower demand for
consumer goods, retail and auto parts.

"The revenue decrease at Logistics was partially offset by
improved Maritime revenues, specifically at the offshore segment,
where revenues increased 47% in the second quarter and 40% in the
first six months of 2009 when compared to the same periods of last
year, mainly attributable to four more vessels in operation in the
second quarter and to higher average daily rates in the first six
months of 2009 than in the comparable periods in 2008.

"Notwithstanding the above mentioned revenue decreases, operating
profit in the second quarter and first six months of 2009 remained
fairly stable compared to the same periods last year, decreasing
$0.4 million in the second quarter and $0.9 million in first six
months of 2009.  This is primarily due to decreased costs and
expenses and to an improved profit at Maritime in the second
quarter and first six months of 2009 compared to the same periods
in 2008.

"The organizational restructuring the Company implemented during
the second half of 2008 produced solid cost improvements in the
first six months of 2009, as costs and operating expenses
decreased 20.1%, or $29.8 million, and as corporate expenses
decreased 14.7 percent, or $1.3 million, compared to the same
periods of last year.  EBITDA improved 20.9% to $35.3 million in
the first six months of 2009 compared to $29.2 million in the 2008
period."

Mr. Serrano added, "As an aid to stimulate the Mexican economy,
the Central Bank of Mexico cut interest rates in the first half of
2009, which will benefit the debt service of our Trust
Certificates Program going forward.  This debt is tied to the 28-
day TIIE, or Mexico's Interbank Equilibrium Interest Rate, which
was reduced 207 basis points from 7.15% to 5.08% in the second
quarter of this year.  These rate reductions will represent a
significant decrease in the interest cost of this debt.

"We have set our business goals for 2009 in the context of a
slowing economy, and we believe the Company is well positioned to
withstand a decline in the overall maritime transportation market
for three primary reasons.  First, we have major competitive
advantages due to our modern, first-class offshore and product
tanker fleet. Second, the Mexican Navigation Law favors Mexican
owned and flagged vessels.  Finally, the vast majority of our
maritime business is based on medium- and long-term contracts.

"Our Maritime division's growth has been driven mainly by
improvements in our offshore vessels operating metrics and by
continuing to realize the benefits of the capital investments we
have made to increase the operating technology of our fleet.
Additionally, we have enhanced our vessel utilization, stemming
from our ability to capitalize on greater scheduling flexibility.
We have also renewed existing contracts and entered into new ones
for 2009 and beyond, all at rates consistent with our
expectations."

Mr. Serrano concluded, "During this challenging period, we
continue to focus on cost control and strong operational
performance, as we seek opportunities to lock in medium- and long-
term contracts for our vessels.  We are confident that our
operations for the third and fourth quarters will trend favorably,
as we continue to increase our revenue base with new contracts,
and as we succeed in restructuring our corporate debt and in
selling non-productive and non-strategic assets.

                        About Grupo TMM

Headquartered in Mexico City, Grupo TMM, S.A.B. (NYSE: TMM)(MEX
VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin
American multimodal transportation and logistics company.
Through its branch offices and network of subsidiary companies,
TMM provides a dynamic combination of ocean and land
transportation services.

                        *     *     *

On June 15, 2009, Salles, Sainz - Grant Thornton, S.C., in Mexico
City raised substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's financial
report for the years ended December 31, 2006, 2007, and 2008.  The
auditors pointed to the Company's sustained substantial losses
from continuing operations during the past five years.  The
auditors add that substantial doubt exists as to its continuation
as a going concern.  Continuation is dependent upon the success of
future operations and obtaining additional financing, the auditor
said.


=============
U R U G U A Y
=============


BANCO ITAU: Moody's Puts 'Ba1' Local Currency Deposit Rating
------------------------------------------------------------
Moody's placed Banco Itau Uruguay S.A.'s long-/short-term local
currency deposit ratings of Ba1/Not Prime on the global scale and
Aa2.uy on the national scale, on review for possible upgrade.

The rating action is a direct result of Moody's review for
possible upgrade of the Brazilian government's foreign currency
debt rating of Ba1.  The global local currency deposit rating of
Itau Uruguay reflects the assessment of support from its parent
bank, Itau Unibanco Banco Multiplo S.A., and it is derived from
Brazil's Ba1 foreign currency government bond rating.

Itau Uruguay's bank financial strength rating of D, long-/short-
term foreign currency deposit ratings of B1/Not Prime, and
national scale foreign currency deposit rating of A2.uy are not
affected by this action.

These ratings were placed on review for possible upgrade:

Banco Itau Uruguay S.A.

  -- Long term local currency deposit rating of Ba1
  -- Short term local currency deposit rating of Not Prime
  -- National scale local currency deposit rating of Aa2.uy



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


PETROLEOS DE VENEZUELA: Petrobras Sees Refinery Deal in September
-----------------------------------------------------------------
Petroleo Brasileiro SA said it expects to reach a deal with
Venezuela's Petroleos de Venezuela SA on a refinery joint venture
in September, Jeff Fick at Dow Jones Newswires reports.  The
report relates Petrobras said its CEO Jose Sergio Gabrielli met
with PDVSA officials to continue negotiations for the Abreu e Lima
refinery under construction in Brazil's Pernambuco state.  About
15% of the work has been completed, Petrobras added.

According to the report, a final deal is expected to reached
during bilateral trade talks between the Brazilian and Venezuelan
governments scheduled for September.   The report relates the
refinery is expected to start operations in 2011.

As reported in the Troubled Company Reporter-Latin America on
May 28, 2009, Dow Jones Newswires said PDVSA and Petrobras will
continue negotiations on a joint-venture refinery project after
news of the failed talks leaked out earlier May 26.  The report
relates Mr. Gabrielli asked for an additional 90 days to reach a
deal on investment costs, sales and oil prices.

According to Dow Jones Newswires, citing the Estado News Agency,
Paulo Roberto Costa, Petrobras' Supply and Refining director, said
there was an impasse in the proposed oil refinery joint-venture
due to PdVSA's attempts to impose conditions on its participation
in the project, and this may lead to its being excluded.  Mr.
Costa, Reuters related, told reporters that PDVSA's plan was not
acceptable due to the pricing mechanism for the heavy crude that
Venezuela would supply to the refinery and the plan for
commercialization of the refined products.

                     About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-
- was founded in 1953.  The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.  Petrobras has operations in China, India, Japan, and
Singapore.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook is stable.

                            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'



PETROLEOS DE VENEZUELA: Says Junin 7 May Hold 31 Bil. Barrels
-------------------------------------------------------------
Daniel Cancel and Andres R. Martinez at Bloomberg News report that
Petroleos de Venezuela and Repsol YPF SA said the Junin 7 block in
the South American country may hold as many as 31 billion barrels
of oil and may be producing oil in two years.  The report relates
output may reach 200,000 barrels of oil a day.

According to the report, the two companies signed an agreement to
continue developing the block.  The report notes the agreement was
part of six accords signed between Venezuela and Spanish
companies.

PDVSA, the report relates, also agreed to buy the Termobarranca
power plant from Repsol for US$85 million, and the Spanish
company’s natural gas assets for US$100 million.  Bloomberg News
adds that the two companies also agreed to raise output at the
Petro Quiriquire joint venture to as much as 100,000 barrels a day
by 2014 or 2015.

                            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


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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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



                            ***********

Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.

Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA, 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 * * *