TCRLA_Public/090821.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Friday, August 21, 2009, Vol. 10, No. 165

                            Headlines

A R G E N T I N A

BANCO MACRO: Stocks Raised to “Overweight” at JPMorgan


B E R M U D A

KRM FUNDING: Creditors' Proofs of Debt Due on September 2
KRM FUNDING: Members to Receive Wind-Up Report on Sept. 23
KRM LEASING: Creditors' Proofs of Debt Due on September 2
KRM LEASING: Members to Receive Wind-Up Report on Sept. 23
NUTRA MANUFACTURING: Creditors' Proofs of Debt Due on September 3

NUTRA MANUFACTURING: Members to Receive Wind-Up Report on Sept. 23
SMALL HOLDINGS: Creditors' Proofs of Debt Due on September 3
SMALL HOLDINGS: Members to Receive Wind-Up Report on September 23


B R A Z I L

BANCO DO BRASIL: May Sell Tier 1 Perpetual Bond-IFR
COMPANHIA SIDERURGICA: Obtains BRR2-Billion Loan From Federal Bank
COSAN SA: Sees World Sugar Prices to Remain Firm
INDEPENDENCIA SA: Working on Final Terms of BRL330MM DIP Financing
* BRAZIL: Plans U.S. WTO Complaint Over Orange Juice Shipment


C A Y M A N  I S L A N D S

ASPECT ADASTRA: Members to Receive Wind-Up Report on August 25
ASPECT EQUITY: Members to Receive Wind-Up Report on August 25
ASPECT EUROPEAN: Members to Receive Wind-Up Report on August 25
ASPECT GLOBAL: Members to Receive Wind-Up Report on August 25
ASPECT JAPANESE: Members to Receive Wind-Up Report on August 25

BRAZILIAN EQUITY: Members to Receive Wind-Up Report on August 25
CDC MOBILE: Members to Receive Wind-Up Report on August 25
FORT DENISON: Members to Receive Wind-Up Report on August 25
GSA SMERALDA: Creditors' Proofs of Debt Due on September 3
KEMPEN PROPERTY: Creditors' Proofs of Debt Due on September 3

KEMPEN PROPERTY: Creditors' Proofs of Debt Due on September 3
KEPCO CAYMAN: Members to Receive Wind-Up Report on August 25
MEMORIAL FUND: Members to Receive Wind-Up Report on August 25
ORIENT FUNDING: Members to Receive Wind-Up Report on August 25
R-ONE HOLDING: Members to Receive Wind-Up Report on August 25


D O M I N I C A N  R E P U B L I C

DOMINICAN REPUBLIC: TO Seek Loan to Cover Deficit


E C U A D O R

PERENCO ECUADOR: Ecuador Sets Deadline for Frim to Agree to Terms
* ECUADOR: Sets Deadline for Perenco Ecuador to Agree to Terms


G U A T E M A L A

* GUATEMALA: IMF Reviews Stand-By Arrangement Approved in April


J A M A I C A

KES DEV COMPANY: Went Into Voluntary Liquidation With JM$1BB Debt
SUGAR COMPANY: Minister to Provide Update on Italian Sugar Deal
* JAMAICA: Government Gets Support Not to Restructure Debt
* JAMAICA: Fitch Says IMF Agreement Critical for Credit Outlook


M E X I C O

ASARCO LLC: Sterlite Matches Grupo's 100 Cents-on-Dollar Offer
GRUPO MEXICO: Sterlite Matches Grupo's 100 Cents-on-Dollar Offer
CEMEX SAB: Rating Upgraded to "Outperform" at BBVA
CEMEX SAB: Cemex Inc. Plans to Layoff 50 Fairborn Workers


P U E R T O  R I C O

FIRST BANCORP HOLDING: FirstBank Florida Posts US$4.5MM Loss in 2Q


V E N E Z U E L A

BANCO DE VENEZUELA: Fitch Affirms Issuer Default Ratings at 'B+'
* VENEZUELA: GDP Shrinks 2.4% in Second Quarter


                         - - - - -


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


BANCO MACRO: Stocks Raised to “Overweight” at JPMorgan
------------------------------------------------------
James Attwood at Bloomberg News reports that Banco Macro SA's
stocks were raised to “overweight”, on August 20, from “neutral.”

Banco Macro’s “excellent” financial performance probably will
continue while concerns over the country’s economy and politics
have eased, JPMorgan analyst Saul Martinez wrote in a note
obtained by the news agency.

According to the report, Economy Minister Amado Boudou said the
government plans to carry out a debt exchange in the next few
weeks and restart talks with the International Monetary Fund.
“Economic growth conditions should stabilize in the second of half
of 2009 and the government’s debt payment capacity should remain
intact in the coming years,” the report quoted Mr. Martinez as
saying.

                          About Banco Macro

Headquartered in Buenos Aires, Argentina, Banco Macro SA --
http://www.macro.com.ar/-- offers traditional commercial banking
products and services to small and medium-sized companies,
companies operating in regional economies, and to low and middle-
income individuals.  It offers savings and checking accounts,
credit and debit cards, consumer finance loans, other credit-
related products and transactional services to its individual
customers, and small and medium-sized businesses through its
branch network.  The bank also offers Plan Sueldo payroll
services, lending, corporate credit cards, mortgage finance,
transaction processing and foreign exchange.  In March 2007, it
merged with Nuevo Banco Suquia S.A (Nuevo Banco Suquia).

                          *     *     *

As of August 7, 2009, the company continues to carry Moody's B2
Foreign Currency LT Debt rating; Caa1 Foreign LT Bank Deposits
ratings; Ba1 Local LT Bank Deposits ratings; B2 Subordinate Debt
rating; and D Bank Financial Strength rating.  The company also
continues to carry Fitch ratings' B LT Issuer Default Ratings;B
Senior Unsecured Debt rating; CCC+ Subordinate Debt rating; B ST
Issuer Default Ratings; and D Individual rating.


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


KRM FUNDING: Creditors' Proofs of Debt Due on September 2
---------------------------------------------------------
The creditors of KRM Funding, Ltd. are required to file their
proofs of debt by September 2, 2009, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 14, 2009.

The company's liquidator is:

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


KRM FUNDING: Members to Receive Wind-Up Report on Sept. 23
----------------------------------------------------------
The members of KRM Funding, Ltd. will hold their meeting on
September 23, 2009, at 9:30 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on August 14, 2009.

The company's liquidator is:

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


KRM LEASING: Creditors' Proofs of Debt Due on September 2
---------------------------------------------------------
The creditors of KRM Leasing, Ltd. are required to file their
proofs of debt by September 2, 2009, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 14, 2009.

The company's liquidator is:

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


KRM LEASING: Members to Receive Wind-Up Report on Sept. 23
----------------------------------------------------------
The members of KRM Leasing, Ltd. will hold their meeting on
September 23, 2009, at 9:30 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on August 14, 2009.

The company's liquidator is:

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


NUTRA MANUFACTURING: Creditors' Proofs of Debt Due on September 3
-----------------------------------------------------------------
The creditors of Nutra Manufacturing Limited are required to file
their proofs of debt by September 3, 2009, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 17, 2009.

The company's liquidator is:

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


NUTRA MANUFACTURING: Members to Receive Wind-Up Report on Sept. 23
------------------------------------------------------------------
The members of Nutra Manufacturing Limited will hold their meeting
on September 23, 2009, at 10:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on August 17, 2009.

The company's liquidator is:

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


SMALL HOLDINGS: Creditors' Proofs of Debt Due on September 3
------------------------------------------------------------
The creditors of Small Holdings Limited are required to file their
proofs of debt by September 3, 2009, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 17, 2009.

The company's liquidator is:

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


SMALL HOLDINGS: Members to Receive Wind-Up Report on September 23
-----------------------------------------------------------------
The members of Small Holdings Limited will hold their meeting on
September 23, 2009, at 9:00 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 August 17, 2009.

The company's liquidator is:

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


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


BANCO DO BRASIL: May Sell Tier 1 Perpetual Bond-IFR
---------------------------------------------------
Banco do Brasil SA is considering the sale of perpetual bonds as
borrowing conditions in capital markets improve, Guillermo Parra-
Bernal at Reuters reports, citing International Financing Review.

According to the report, IFR said that the bank may sell at least
US$500 million of so-called hybrid Tier 1 securities, which are
equity-styled bonds that often get a preferential capital
treatment.  The report relates that the structure was frequently
used by global banks to raise capital at the height of the
financial turmoil that led to more than US$1.5 trillion of credit-
related losses and writedowns last year.

Reuters notes that IFR said Banco do Brasil is approaching several
investment banks for the transaction, with the favorites to land
the deal being JPMorgan Chase & Co. and Citigroup.

Under the plan, the Tier 1 securities could be redeemed only after
10 years, IFR said, the report adds.

                     About Banco do Brasil

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

                           *     *     *

As reported by the Troubled Company Reporter-Latin America on
Jan. 20, 2009, Fitch Ratings affirmed Banco do Brasil S.A.'s
Individual Rating at 'C/D'.


COMPANHIA SIDERURGICA: Obtains BRR2-Billion Loan From Federal Bank
------------------------------------------------------------------
Companhia Siderurgica Nacional S.A. has obtained a loan for BRR2
billion from the government's Federal Savings Bank, Dow Jones
Newswires reports.  The report relates that CSN did not reveal the
purpose of the loan or specify the interest rate but said the loan
will carry a term of three years.

According to the report, a financial market source said that CSN
was preparing an overseas bond issue worth US$750 million.  The
report relates the source said proceeds from the issue would be
used to pay off short term debt and improve CSN's cash position.

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells,
exports and distributes steel products, like hot-dip galvanized
sheets, tin mill products and tinplate.  The company also runs its
own iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Brazil, Portugal, and the
U.S.

                           *     *     *

As of July 1, 2009, the company continues to carry Moody's
Currency LT Debt ratings at Ba1.  The company also continues to
carry Standard and Poor's Issuer credit ratings at BB+.


COSAN SA: Sees World Sugar Prices to Remain Firm
------------------------------------------------
Cosan SA Industria e Comercio expects world sugar prices to remain
firm for at least another cane crop, Inae Riveras at Reuters
reports, citing Finance Director Marcelo Martins.

According to the report, Mr. Martins said smaller-than-expected
cane crops in India and Brazil were important price-forming
factors.  The report relates raw sugar futures have rallied to a
28-year high, mainly due to prospects for huge imports by India
after a weak monsoon hurt the country's cane crop development;
while excess rains in the center-south in June and July reduced
Brazil's pace of crushing and the content of sucrose in cane.
Tight sugar stocks in the United States and the possibility of
Mexico raising imports have also contributed to the rise in
prices, which was bigger than forecast, Mr. Martins said, the
report adds.

Mr. Martins, the report notes, said more than 50% of the company's
expected sugar production this season is hedged in the futures
market.  The volume is 30% lower than it was a year ago, Mr.
Martins added.  The report relates that the company has been
hedging sugar for the 2010/11 crop.

"As sugar prices rose, we reduced our hedging for this crop, which
has proven to be a right decision, but this doesn't mean we'll not
accelerate hedging again if we sense prices are close to their
peak," the report qouted Mr. Martins as saying.  "When the market
starts to overshoot it's hard to foresee how much further it can
go up. Some say prices could reach over 30 (cents per lb) but this
is a hypothesis which we haven't worked with," Mr. Martins added.

Reuters says Cosan expects to direct 54% of its crush to sugar
production this year, with the remainder going to ethanol.  The
report relates sugar output is forecast to reach 4.2 million
tonnes, with 80% going to the international market, while Ethanol
production is expected to total 2.1 billion liters.  Ethanol
exports will be lower than in 2008/09 but above initial forecasts,
as demand is rising in Asia and Europe, the report adds.

                           About Cosan SA

Headquartered in Brazil, Cosan SA Industria e Comercio --
http://www.cosan.com.br/-- is a Brazil-based company active in
the research and production of sugar, ethanol and derivatives.
The company cultivates harvests and processes sugarcane - the main
raw material used to produce sugar and ethanol.  In addition, it
is engaged in the production of sustained energy from renewable
sources.  It operates 18 production units located in the state of
Sao Paulo.  The Company also operates port terminals.  As of
March 31, 2009, Cosan was the parent company of a number of
controlled entities, such as TEAS - Terminal Exportador de Alcool
de Santos SA, Cosan SA Bioenergia, Radar Propriedades Agricolas SA
and Cosanpar Participacoes SA, among others.   Cosan SA is a
subsidiary of Bermuda-based Cosan Limited.

                           *     *     *

As reported in the Troubled Company July 27, 2009, Fitch Ratings
has assigned 'BB-' local and foreign currency Issuer
Default Ratings and a 'A-(bra)' National Scale Rating to Cosan
S.A. Industria e Comercio and its subsidiary Cosan Combustiveis e
Lubrificantes Ltda.  Fitch has also assigned a 'BB-' rating to
CCL's proposed US$300 million senior unsecured notes due 2014
issued through its wholly owned subsidiary, CCL Finance Ltd.  The
notes will be unconditionally and irrevocably guaranteed by CCL.
The Rating Outlook for Cosan and CCL is Stable.


INDEPENDENCIA SA: Working on Final Terms of BRL330MM DIP Financing
------------------------------------------------------------------
Independencia SA, which is some 15 days away from resubmitting a
proposal to restructure its debt, is working on final terms of a
senior secured DIP financing worth up to BRL330 million,
LatinFrance reports.  The report relates company investors and
advisors see the facility as a key component to the restructuring
because it will enable resumption of operations.

According to the report, about 35% of the facility will be used to
repay cattle suppliers, who have halted shipments because
Independencia has not paid down lines with them, says an executive
close to the company, while the rest will be used for working
capital.

LatinFrance notes that a term of 5-years at a rate of 15%-20% is
being considered for the facility, which will be senior to all
other debt and secured by the company’s assets, estimated to be
worth BRL1.1 billion.

An unnamed executive involved in the process, the report relates,
said some assets are backing a portion of Independencia's local
debt; while the remainder would be used for the DIP, resulting in
a collateralization of around 1.5x-2.0x.

The report also relates that as for the rest of the restructuring,
Independencia advisors said they are studying ways to redesign the
proposal to account for bondholder feedback.

                       About Independencia SA

Independencia SA -- http://www.independencia.com.br/-- is
Brazil's fourth largest meat exporter.  It filed for bankruptcy
protection earlier this year after the global economic crisis
caused exports to slump.  Independencia S.A. filed its Chapter 15
petition on March 27, 2009 (Bankr. S.D. N.Y., Case No. 09-10903).
Paul R. DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP, is the
Debtor's counsel.

                           *     *     *

As of August 20, 2009, the company continues to carry Moody's Ca
LT Corp Family rating and Standard and Poor's D LT Issuer Credit
ratings.


* BRAZIL: Plans U.S. WTO Complaint Over Orange Juice Shipment
-------------------------------------------------------------
Brazil will file a complaint against the U.S. before the World
Trade Organization over its anti-dumping methodology on orange
juice shipments, Iuri Dantas at Bloomberg News reports, citing
Brazil’s Foreign Affairs Ministry.

According to the report, Brazil disputes the use of a methodology
known as “zeroing,” whereby countries can inflate anti-dumping
duties.   The report relates the method considers the difference
between the price of a product in its home country and in the
U.S., except when the product is sold at a higher price in the
U.S.

Bloomberg News notes that the ministry said the practice is used
by U.S. Department of Commerce and hurts Brazil exports.  WTO
condemned the practice on “several” occasions, the minsitry added.

Brazil, the report relates, will request a panel of the WTO’s
dispute settlement panel on Aug. 31, and expects the probe to
start by Sept. 25.  “Brazil’s decision to request the panel
reflects the perception that zeroing, besides bring incompatible
with multilateral trade rules, causes great uncertainties and
serious damage to exporters,” Brazil said in a statement obtained
by the news agency.

                           *     *     *

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
==========================


ASPECT ADASTRA: Members to Receive Wind-Up Report on August 25
--------------------------------------------------------------
The members of Aspect Adastra Diversified Fund will hold their
final meeting on August 25, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


ASPECT EQUITY: Members to Receive Wind-Up Report on August 25
-------------------------------------------------------------
The members of Aspect Equity Long Short Fund will hold their final
meeting on August 25, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


ASPECT EUROPEAN: Members to Receive Wind-Up Report on August 25
---------------------------------------------------------------
The members of Aspect European Equity Fund will hold their final
meeting on August 25, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


ASPECT GLOBAL: Members to Receive Wind-Up Report on August 25
-------------------------------------------------------------
The members of Aspect Global Equity Fund will hold their final
meeting on August 25, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


ASPECT JAPANESE: Members to Receive Wind-Up Report on August 25
---------------------------------------------------------------
The members of Aspect Japanese Equity Fund will hold their final
meeting on August 25, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


BRAZILIAN EQUITY: Members to Receive Wind-Up Report on August 25
----------------------------------------------------------------
The members of Brazilian Equity Ltd. will hold their final meeting
on August 25, 2009, to receive the liquidators' report on the
company's wind-up proceedings and property disposal.

The company's liquidators are:

          Victor Murray
          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


CDC MOBILE: Members to Receive Wind-Up Report on August 25
----------------------------------------------------------
The members of CDC Mobile Holdings Limited will hold their final
meeting on August 25, 2009, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


FORT DENISON: Members to Receive Wind-Up Report on August 25
------------------------------------------------------------
The members of Fort Denison Funding, Limited will hold their final
meeting on August 25, 2009, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


GSA SMERALDA: Creditors' Proofs of Debt Due on September 3
----------------------------------------------------------
The creditors of GSA Smeralda Fund Limited are required to file
their proofs of debt by September 3, 2009, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on June 12, 2009.

The company's liquidator is:

          Stuart Sybersma
          c/o Jessica Turnbull
          Deloitte & Touche
          P.O. Box 1787, Grand Cayman KY1-1109
          Cayman Islands
          Telephone: (345) 949 7500
          Facsimile: (345) 949 8258
          e-mail: jturnbull@deloitte.com


KEMPEN PROPERTY: Creditors' Proofs of Debt Due on September 3
-------------------------------------------------------------
The creditors of Kempen Property Master Hedge Fund Limited are
required to file their proofs of debt by September 3, 2009, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on July 9, 2009.

The company's liquidator is:

          Stuart Sybersma
          c/o Jessica Turnbull
          Deloitte & Touche
          P.O. Box 1787, Grand Cayman KY1-1109
          Cayman Islands
          Telephone: (345) 949 7500
          Facsimile: (345) 949 8258
          e-mail: jturnbull@deloitte.com


KEMPEN PROPERTY: Creditors' Proofs of Debt Due on September 3
-------------------------------------------------------------
The creditors of Kempen Property Hedge Fund Limited are required
to file their proofs of debt by September 3, 2009, to be included
in the company's dividend distribution.

The company commenced wind-up proceedings on July 13, 2009.

The company's liquidator is:

          Stuart Sybersma
          c/o Jessica Turnbull
          Deloitte & Touche
          P.O. Box 1787, Grand Cayman KY1-1109
          Cayman Islands
          Telephone: (345) 949 7500
          Facsimile: (345) 949 8258
          e-mail: jturnbull@deloitte.com


KEPCO CAYMAN: Members to Receive Wind-Up Report on August 25
------------------------------------------------------------
The members of Kepco Cayman Company Limited will hold their final
meeting on August 25, 2009, at 9:20 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Victor Murray
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


MEMORIAL FUND: Members to Receive Wind-Up Report on August 25
-------------------------------------------------------------
The members of Memorial Fund Limited will hold their final meeting
on August 25, 2009, to receive the liquidators' report on the
company's wind-up proceedings and property disposal.

The company's liquidators are:

          Victor Murray
          Jess Shakespeare
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


ORIENT FUNDING: Members to Receive Wind-Up Report on August 25
--------------------------------------------------------------
The members of Orient Funding II Company Limited will hold their
final meeting on August 25, 2009, at 9:10 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Victor Murray
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


R-ONE HOLDING: Members to Receive Wind-Up Report on August 25
-------------------------------------------------------------
The members of R-One Holding Ltd. will hold their final meeting on
August 25, 2009, at 9:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Victor Murray
          c/o Maples Finance Limited
          PO Box 1093, Boundary Hall
          Grand Cayman KY1-1102, Cayman Islands


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


DOMINICAN REPUBLIC: TO Seek Loan to Cover Deficit
-------------------------------------------------
The Dominican Republic will seek a fresh loan from the World Bank
or Inter-American Development Bank to help finance a fiscal
deficit triggered by a severe economic downturn, Manuel Jimenez of
Reuters reports, citing Finance Minister Vicente Bengoa.  The
report relates Mr. Bengoa said the government had flatly ruled out
tax increases to cover the deficit, which is currently estimated
at just US$25 million.

According to the report, like other Caribbean island states, the
Dominican Republic has been hard hit by the global financial
crisis and recent declines in tourism, weak export earnings and
remittances.  The report notes economic analysts say the deficit
is widely expected to total more than 2% of gross domestic product
in 2009, as a result of a sharp decline in revenues, but spending
cuts should keep it from increasing further.

Mr. Bengoa, the report relates, said that a heavier tax burden
would erode consumer spending and worsen the situation in the
country.  "The biggest mistake a government can make in the
current situation of world recession is to hike taxes because all
that does is cut people's spending capacity," the report quoted
Mr. Bengoa as saying.

                       *     *     *

The country continues to carry Moody's B2 currency ratings.


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


PERENCO ECUADOR: Ecuador Sets Deadline for Frim to Agree to Terms
-----------------------------------------------------------------
Ecuador gave French oil company Perenco a 10-day deadline on
August 19, to agree to pay contested back taxes and return to its
oil field concession, taking what was widely considered a step
toward formally voiding the firm's contracts, Associated Press
reports.  The report relates Oil Minister Germanico Pinto said
that Perenco had 10 days to resume its operations and "comply with
its legal and contractual obligations."

According to the report, Mr. Pinto acknowledged that Perenco has
"no workers" in Ecuador to send back to its oil fields after
state-owned Petroamazonas hired 247 of the former employees to
six-month contracts to ensure the Perenco fields' 20,000 barrels
in daily crude production.

Mr. Pinto, the report relates, declined to say what measures the
government would take if the dispute was not resolved by the
deadline.  "There is a legal proceeding under way.  The actions we
are taking in Perenco's case are completely in line with Ecuador's
laws," the report quoted Mr. Pinto as saying.

As reported in the Troubled Company Reporter-Latin America on
July 30, 2009, Dow Jones Newswires said that Perenco said it has
taken the first steps towards terminating the contracts of its 250
workers in the country.  "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.

According to a TCRLA report on July 16, 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.
The report related that 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.

                           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.


* ECUADOR: Sets Deadline for Perenco Ecuador to Agree to Terms
--------------------------------------------------------------
Ecuador gave French oil company Perenco a 10-day deadline on
August 19, to agree to pay contested back taxes and return to its
oil field concession, taking what was widely considered a step
toward formally voiding the firm's contracts, Associated Press
reports.  The report relates Oil Minister Germanico Pinto said
that Perenco had 10 days to resume its operations and "comply with
its legal and contractual obligations."

According to the report, Mr. Pinto acknowledged that Perenco has
"no workers" in Ecuador to send back to its oil fields after
state-owned Petroamazonas hired 247 of the former employees to
six-month contracts to ensure the Perenco fields' 20,000 barrels
in daily crude production.

Mr. Pinto, the report relates, declined to say what measures the
government would take if the dispute was not resolved by the
deadline.  "There is a legal proceeding under way.  The actions we
are taking in Perenco's case are completely in line with Ecuador's
laws," the report quoted Mr. Pinto as saying.

As reported in the Troubled Company Reporter-Latin America on
July 30, 2009, Dow Jones Newswires said that Perenco said it has
taken the first steps towards terminating the contracts of its 250
workers in the country.  "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.

According to a TCRLA report on July 16, 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.
The report related that 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.


=================
G U A T E M A L A
=================


* GUATEMALA: IMF Reviews Stand-By Arrangement Approved in April
---------------------------------------------------------------
Chief of the International Monetary Fund mission to Guatemala,
Alejandro Lopez-Mejia, issued a statement in Guatemala City.

“An International Monetary Fund staff mission visited Guatemala on
August 3-14, 2009 to conduct the first review of the Stand-By
Arrangement approved last April.  The mission met with President
Alvaro Colom; Minister of Finance Juan Alberto Fuentes Knight;
Central Bank President Maria Antonieta de Bonilla; Superintendent
of Banks Edgar Barquin; other members of the economic cabinet, and
representatives of the private sector.

“The mission commended the authorities for meeting all the end-
June 2009 quantitative performance criteria.  In addition, the
mission observed that the inflation rate decreased below 1% as a
result of the fall in commodity prices and weak domestic demand.
With the rebound of those prices in the second semester, inflation
is expected to reach about 1.5% by end-2009.  The mission noted
that the external position had evolved favorably; the exchange
rate has remained broadly stable and international reserves have
increased.  The mission underscored the importance of the
amendments to the Banking Law sent to Congress on June 25, 2009,
which are necessary to further strengthen the financial system.

“The global financial crisis has had a negative impact on
Guatemala and the region. Output growth is projected at around 0.4
percent in 2009, with some downside risks.  The fall in exports,
tourism receipts, and remittances has been more than offset by the
decrease in imports.  As a result, the external current account
deficit is projected at 1.6% of GDP in 2009, significantly below
the deficit of 4.8% observed in 2008.  Lower credit demand also
reduced debt-creating flows.

“The authorities have adequately balanced the benefits of adopting
a countercyclical fiscal policy with the importance of maintaining
public debt at sustainable levels.  Tax revenue decreased due to
the economic slowdown and the fall in imports, and public capital
spending would increase to avoid a more severe economic slowdown.
As a result, the fiscal deficit of the central government could
reach 3.4% of GDP in 2009 and 3.0% of GDP in 2010.  In turn, the
deficit of the consolidated public sector would reach 3% of GDP in
2009, and 2.6% of GDP in 2010.  To ensure that public debt is on a
sustainable path, the authorities are strengthening their efforts
to increase the tax base.  These efforts include the approval of
the tax reform, currently being discussed in Congress.

“The gradual relaxation of monetary policy has been adequate.  The
central bank has reduced its interest rate by 250 basis points
since end-2008.  The mission acknowledged that real interest rates
should remain positive, thus recommending that monetary policy
continues to be adjusted gradually in line with developments in
domestic demand and medium-term inflation projections.  The
flexible exchange rate has helped mitigate the negative impact of
the global economic crisis and has enhanced the effectiveness of
monetary policy.  The discretionary interventions in the foreign
exchange market will continue, with the goal of avoiding excessive
volatility of the exchange rate.

“The Guatemalan authorities reiterated their intention to continue
treating the Stand-By Arrangement with the IMF as precautionary.
The IMF mission expects that the IMF Executive Board will conclude
the first review of the Stand-By Arrangement by end-September
2009.”


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


KES DEV COMPANY: Went Into Voluntary Liquidation With JM$1BB Debt
-----------------------------------------------------------------
KES Development Limited went into voluntary liquidation with more
than JM$1 billion in liabilities, Jamaica Gleaner reports.  The
report relates that Kenneth Tomlinson was appointed as the
liquidator.

According to the report, the company, which was founded by
husband-and-wife team Hugh and Elesa Scott, is indebted to an
estimated 40-50 creditors -- with Capital and Credit Merchant Bank
said to be holding a debenture over some of the debt and CCMB and
Jamaica Mortgage Bank together are owed JM$5 million.

The report recalls that Mr. and Mrs. Scotts was advised to placed
their business in liquidation last December after its cash had
virtually dried up with its projects unfinished.

The Scotts, in their 14 years of business, have done developments
in the capital and around the country, the report says.  The
Gleaner relates that one of KES's projects was confiscated by its
bankers and placed in the market in March; while the partially
done, and overgrown construction at Old Stony Hill Road, St
Andrew, has been idle for several years, and is on the market
forJM $124 million.

                     About KES Dev't Company

K.E.S. Development Company, Ltd. provides real estate development
services in residential and commercial areas. It offers
engineering, project management, and contracting services. The
company was founded in 1995 and is based in Kingston, Jamaica.


SUGAR COMPANY: Minister to Provide Update on Italian Sugar Deal
---------------------------------------------------------------
Agriculture Minister Dr. Christopher Tufton will provide an update
on the deal with Italian firm Eridania Suisse on Wednesday,
August 26, RadioJamaica reports.

According to the report, Dr. Tufton and officials of the Sugar
Company of Jamaica will tour the Bernard Lodge and Monymusk
Estates to assess preparations for the Crop.  The report relates
intensified field maintenance has been undertaken in order for
Jamaica to deliver on its commitment to Eridania.

As reported in the Troubled Company Reporter-Latin America on
July 20, 2009, Caribbean Net News said the Jamaica government has
negotiated an interim funding with Eridania Suisse to ensure the
continued operation of Sugar Company of Jamaica's three sugar
estates -- Frome in Westmoreland, Monymusk in Clarendon, and
Bernard Lodge in St Catherine, Catibbean Net News reports.  The
report related the money will be used to undertake field
maintenance work on the three estates, as well as preparatory
works for the Frome and Monymusk factories.  According to the
report, Agriculture and Fisheries Minister Christopher Tufton said
the Cabinet has approved the arrangement, which should
“effectively ensure” the factories’ sugar production output for
the 2009/10 crop year, while the process of divestment continues.

Caribbean Net News noted Eridania and Energen Development Limited
are the two short-listed entities with which the administration is
pursuing negotiations toward the sale of the factories and
Petrojam Ethanol Limited (PEL).

Catibbean Net News said that Mr. Tufton advised that the fund will
be used to undertake the necessary preparatory and field
maintenance work at the properties for the upcoming crop year,
inclusive of fertilization of the fields and installing the
appropriate irrigation infrastructure.  Mr. Tufton, the report
related, said that, in return, the government will supply Eridania
with some 79,000 tonnes of raw sugar for the 2009/10 crop year.
Regarding the sale of the remaining estates Eridania will share,
on a 50 to 50 basis with the government, any profit made on the
final sale price, less agreed cost, Mr. Tufton added.

                           About SCJ

The Sugar Company of Jamaica Limited, a.k.a. SCJ, was formed in
November 1993 by a consortium made up of J. Wray & Nephew
Limited, Manufacturers Investments Limited and Booker Tate
Limited.  The three companies each held 17% equity in SCJ, with
the remaining 49% being held by the government of Jamaica.  In
1998, the government became the sole shareholder of SCJ by
acquiring the interests of the members of the consortium. Its
stated goal was to maximize efficiency, productivity and
profitability of the three sugar factories, within three years.
The principal activities of the company are the cultivation of
cane and the manufacture and sale of sugar and molasses.


* JAMAICA: Government Gets Support Not to Restructure Debt
----------------------------------------------------------
The Jamaican government is getting support for its decision not to
accept a proposal from the private sector to restructure the
country's debt, RadioJamaica reports.  The report relates the
private sector had presented the proposal to the Government for
consideration.

However, the report notes that Finance Minister Audley Shaw said
during discussions in the market about the initiative, concerns
were raised about the government's debt strategy.

According to the report, Financial Analyst Orville Johnson said
that if the government had proceeded on the recommended route it
would have sent the wrong signal to the international financial
market.  "Former Finance Minister Dr. Omar Davies has always made
the point that in the international financial circles any talk of
restructuring initiatives by a government is interpreted as their
inability to pay their debts and it is usually looked upon in a
negative way.  So you need to also look at the context in which we
now operate with a global recession," the report quoted Mr.
Johnson as saying.

RadioJamaica says the country currently owes JM$1.2 trillion to
local and international creditors.

                          *     *     *

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


* JAMAICA: Fitch Says IMF Agreement Critical for Credit Outlook
---------------------------------------------------------------
The Jamaican authorities are in the process of negotiating a
US$1.2 billion IMF Stand-By Arrangement.  Such an agreement gains
importance in light of Jamaica's increased external
vulnerabilities and a precarious fiscal situation.  Fitch Ratings
believes that such an agreement would strengthen the credibility
of efforts to secure macroeconomic stabilization, fiscal
consolidation and ease external liquidity pressures.  Fitch
cautions that the extremely weak fiscal profile amid a rising
interest burden and recession is placing the government under
financial stress and the risk of default is significant reflected
in the current 'B' sovereign ratings with a Negative Outlook.

Jamaica's external accounts have been hard hit by the global
financial crisis, as reflected by the country's falling bauxite
and alumina exports, tourism receipts, and overseas workers'
remittances while external private capital inflows have
decelerated sharply.  'An IMF program is critical for providing
support to Jamaica's balance-of-payments, assuaging investor
sentiment, allowing the central bank to navigate the unfavorable
external environment and potentially opening up the door to
additional multilateral funds' said Shelly Shetty, Senior Director
at Fitch Ratings.  The announcement of a potential IMF agreement
has helped in promoting JMD stability and allowed the central bank
to cut interest rates in recent weeks, a process that needs to
continue in order to alleviate fiscal pressures and support the
economy, especially as inflation is falling.  'A significant delay
or a non-approval of an IMF agreement would seriously undermine
Jamaica's creditworthiness' added Shetty.

According to Fitch estimates, the fiscal deficit reached nearly 7%
of GDP during the last fiscal year.  Judging from the fiscal
performance in the first quarter of FY 2009/10, it is likely that
the deficit could overshoot the budgeted target of 5.5% of GDP.  A
sharp rise in interest payments -- as approximately 60% of
domestic debt is on floating rates -- is further eroding fiscal
maneuverability, especially in the context of declining revenues
amid an economic recession.  The central bank increased interest
rates significantly last December to stabilize the domestic
currency in the face of the sharp depreciating pressures.

Jamaica's traditionally high level of commitment to debt service
is being tested by its rising fiscal challenges as well as the
unfavorable external and domestic economic environment.  The
Jamaican government was exploring a voluntary domestic debt
management operation to obtain relief on near-term debt servicing
costs.  Fitch has been in active dialogue with the authorities to
clarify their stance on the possible debt exchange.  The
authorities have assured Fitch directly and have recently made a
public statement that they do not intend to pursue the domestic
debt exchange operation at this stage.  As such, the details on a
potential IMF program will provide the road map on the pace and
feasibility of the medium-term fiscal adjustment and will be
considered by the agency in making future credit assessments about
Jamaica.

Fitch currently rates Jamaica's foreign currency and local
currency Issuer Default Ratings at 'B'.  The Rating Outlook on the
ratings is Negative.


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


ASARCO LLC: Sterlite Matches Grupo's 100 Cents-on-Dollar Offer
--------------------------------------------------------------
Steven Church at Bloomberg reported that Sterlite Industries
(India) Ltd., on August 19 raised its bid for ASARCO LLC, by
pledging to pay all of the Company's unsecured debts in full, thus
matching an offer from Grupo Mexico SAB.  Under the plan, Sterlite
would guarantee to pay unsecured debts of Asarco LLC that are
ultimately considered legitimate by U.S. Bankruptcy Judge Richard
Schmidt.

Grupo Mexico SAB on August 18 beefed up its offer for ASARCO LLC
to US$2.2 billion in cash.  Grupo Mexico said this offer
guarantees full payment for creditors.  Because the creditors are
no longer impaired, voting in favor of the Parent Plan is no
longer required as the creditors can be deemed to accept the Plan.

ASARCO LLC and Grupo Mexico, through unit ASARCO Inc., have filed
competing Plan's of reorganization for ASARCO LLC.  Judge Richard
Schmidt began on August 10 hearings to choose between the
competing plans, which originally included a third plan, sponsored
by investors led by Harbinger Capital Partners Master Fund I Ltd.

Grupo Mexico previously offered to purchase ASARCO LLC, in
exchange for US$1.72 billion in cash plus a note for US$280
million for unsecured creditors.

ASARCO LLC's plan is built upon an agreement to sell assets to
Vedanta unit Sterlite Industries Inc.  Sterlite has agreed to
provide a US$770 million promissory note, pay US$1.59 billion in
cash and assume certain liabilities as part of its consideration
in exchange for ASARCO's assets.

ASARCO Inc. and AMC early this year lost a lawsuit filed against
it for intentional fraudulent conveyance of ASARCO LLC's crown
jewel -- its stock in Southern Peru Copper Company, now known as
Southern Copper Corporation.  The U.S. District Court for the
Southern District of Texas concluded that AMC is the transferee of
an avoidable transfer, and ordered AMC to return the SPCC Shares
to ASARCO LLC and to pay ASARCO LLC US$1.38 billion in money
damages.  ASARCO Inc. and AMC, however, are appealing the ruling.

The recovery by creditors from the SPCC Litigation may depend on
the outcome of the litigation and which Chapter 11 plan is
selected by the Bankruptcy Court.  According to Bloomberg, under
the ASARCO LLC Plan, creditors may collect money from the
judgement against Grupo Mexico.  The Parent Plan, however, would
limit any payments related to the judgement.

According to Bloomberg, Kenneth N. Klee, a professor at the
University of California, Los Angeles, School of Law, testified
before the Bankruptcy Court on August 17 that Grupo Mexico may be
forced to pay as much as US$2.94 billion in connection with the
SPCC Litigation.  "There is a 51% chance of Asarco prevailing,"
said Mr. Klee, a lead author of the U.S. Bankruptcy Code when
Congress overhauled the law in the late 1970s.

Mr. Klee was hired by ASARCO LLC to determine how much its parent,
Grupo Mexico, may have to pay creditors in connection with the
SPCC Litigation -- the last major issue for Judge Schmidt to
decide before he chooses between two competing plans, Bloomberg
said.

Judge Schmidt will make a final decision on August 31.

                        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).

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)


GRUPO MEXICO: Sterlite Matches Grupo's 100 Cents-on-Dollar Offer
----------------------------------------------------------------
Steven Church at Bloomberg reported that Sterlite Industries
(India) Ltd., on August 19 raised its bid for ASARCO LLC, by
pledging to pay all of the Company's unsecured debts in full, thus
matching an offer from Grupo Mexico SAB.  Under the plan, Sterlite
would guarantee to pay unsecured debts of Asarco LLC that are
ultimately considered legitimate by U.S. Bankruptcy Judge Richard
Schmidt.

Grupo Mexico SAB on August 18 beefed up its offer for ASARCO LLC
to US$2.2 billion in cash.  Grupo Mexico said this offer
guarantees full payment for creditors.  Because the creditors are
no longer impaired, voting in favor of the Parent Plan is no
longer required as the creditors can be deemed to accept the Plan.

ASARCO LLC and Grupo Mexico, through unit ASARCO Inc., have filed
competing Plan's of reorganization for ASARCO LLC.  Judge Richard
Schmidt began on August 10 hearings to choose between the
competing plans, which originally included a third plan, sponsored
by investors led by Harbinger Capital Partners Master Fund I Ltd.

Grupo Mexico previously offered to purchase ASARCO LLC, in
exchange for US$1.72 billion in cash plus a note for US$280
million for unsecured creditors.

ASARCO LLC's plan is built upon an agreement to sell assets to
Vedanta unit Sterlite Industries Inc.  Sterlite has agreed to
provide a US$770 million promissory note, pay US$1.59 billion in
cash and assume certain liabilities as part of its consideration
in exchange for ASARCO's assets.

ASARCO Inc. and AMC early this year lost a lawsuit filed against
it for intentional fraudulent conveyance of ASARCO LLC's crown
jewel -- its stock in Southern Peru Copper Company, now known as
Southern Copper Corporation.  The U.S. District Court for the
Southern District of Texas concluded that AMC is the transferee of
an avoidable transfer, and ordered AMC to return the SPCC Shares
to ASARCO LLC and to pay ASARCO LLC US$1.38 billion in money
damages.  ASARCO Inc. and AMC, however, are appealing the ruling.

The recovery by creditors from the SPCC Litigation may depend on
the outcome of the litigation and which Chapter 11 plan is
selected by the Bankruptcy Court.  According to Bloomberg, under
the ASARCO LLC Plan, creditors may collect money from the
judgement against Grupo Mexico.  The Parent Plan, however, would
limit any payments related to the judgement.

According to Bloomberg, Kenneth N. Klee, a professor at the
University of California, Los Angeles, School of Law, testified
before the Bankruptcy Court on August 17 that Grupo Mexico may be
forced to pay as much as US$2.94 billion in connection with the
SPCC Litigation.  "There is a 51% chance of Asarco prevailing,"
said Mr. Klee, a lead author of the U.S. Bankruptcy Code when
Congress overhauled the law in the late 1970s.

Mr. Klee was hired by ASARCO LLC to determine how much its parent,
Grupo Mexico, may have to pay creditors in connection with the
SPCC Litigation -- the last major issue for Judge Schmidt to
decide before he chooses between two competing plans, Bloomberg
said.

Judge Schmidt will make a final decision on August 31.

                        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).

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: Rating Upgraded to "Outperform" at BBVA
--------------------------------------------------
CEMEX, S.A.B. de C.V. rating was upgraded to "outperform" from
"underperform" at BBVA, on August 20, Noel Randewich and Michael
O'Boyle at Reuters report.  The report relates the company
recently completed a debt restructuring plan.

As reported in the Troubled Company Reporter-Latin America on
August 20, 2009, Bloomberg News said CEMEX S.A.B. agreed to issue
US$1 billion in new shares by June, repay US$5 billion in debt by
the end of 2011 and limit capital spending under a US$15 billion
refinancing plan.  The report related that Chief Executive Officer
Lorenzo Zambrano said the company’s capital expenditures will be
limited to US$700 million next year and US$800 million in each of
the following three years as the company concentrates on repaying
debt.

"Cemex's refinancing of its bank debt eliminated liquidity risk
and gives it more leeway to restore the operating side of the
business," the report quoted BBVA analyst Francisco Chavez as
saying.  A US$1.7 billion share offer, which would dilute Cemex's
equity by up to 9%, would be smaller than expected, Mr. Chavez
added.

A TCRLA March 11 report, citing Bloomberg News, related that at
the end of December, Cemex had total debt of US$18.8 billion.
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
August 19, 2009, Fitch Ratings has affirmed these ratings of
Cemex, S.A.B. de C.V.:

  -- Foreign currency Issuer Default Rating at 'B';

  -- Local currency IDR at 'B';

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

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

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

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

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

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

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


CEMEX SAB: Cemex Inc. Plans to Layoff 50 Fairborn Workers
---------------------------------------------------------
Cemex Inc., a unit of Mexico-based Cemex S.A.B. De C.V., plans to
lay off as many as 50 workers at it’s Fairborn facility, on
October 17, Business Journal reports.  The report relates a
company spokesperson Jennifer Borge said that the move is a result
of excess inventory because of reduced demand.

According to the report, Ms. Borgen said production at the
Fairborn plant will shut down temporarily but packaging operations
will continue at the site.  The report notes Ms. Borgen said about
50 workers will remain following the layoffs and the plant will
still ship bagged and bulk cement orders.

The report says it is still undetermined how long the layoffs will
last.

Based in Houston, Texas, Cemex Inc. is a unit of Mexico-based
Cemex S.A.B.  The company got a big boost -- especially in terms
of ready-mix capacity -- when its parent acquired UK-based RMC
Group in 2005 and Rinker in 2007.  CEMEX Inc. now boasts that it's
the largest cement company in the U.S., as well as the largest
ready-mix company.  In addition to cement and ready-mix, CEMEX
Inc. also makes and sells concrete block and aggregates.  It
serves customers through around 370 ready-mix plants (up from 90
before the acquisitions), more than a dozen cement plants, around
50 distribution facilities, and more than 100 aggregate quarries.

                        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
August 19, 2009, Fitch Ratings has affirmed these ratings of
Cemex, S.A.B. de C.V.:

  -- Foreign currency Issuer Default Rating at 'B';

  -- Local currency IDR at 'B';

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

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

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

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

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

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

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


====================
P U E R T O  R I C O
====================


FIRST BANCORP HOLDING: FirstBank Florida Posts US$4.5MM Loss in 2Q
------------------------------------------------------------------
Miami-based FirstBank Florida, a unit of Puerto Rico-based First
BanCorp Holding Co., posted a US$4.5 million loss in the second
quarter, an improvement from a US$8.6 million loss in the first
quarter, South Florida Business Journal reports.

According to the report, FirstBank Florida saw improvements in
several areas during the quarter.  The report relates its net
interest income increased to US$5.4 million from US$5 million in
the first quarter.  The report notes the bank took a US$7.1
million expense to reserve for future loan losses, down from a
US$9.2 million expense in the previous quarter.

The Journal notes that FirstBank Florida held US$94 million in
noncurrent loans, or 12.47% of its total loans, on June 30, which
is up from US$69.5 million, or 8.81% of its total loans, on
March 31.  The report relates during the same period, its
repossessed property increased by US$3.3 million to reach US$9.4
million.

The bank, the report relates, filed US$13.7 million in
foreclosures during the second quarter to put US$71.7 million of
its loans in the foreclosure process.

FirstBank Florida’s US$15.7 million reserve for future loan losses
covered nearly 17% of its noncurrent loans on June 30, the report
notes.

The Journal discloses that FirstBank Florida had US$959.9 million
in assets as of March 31, but by June 30, its assets slipped to
US$936.4 million.  The report relates over the same period, its
total loans declined to US$754.1 million from US$781.2 million,
and its deposits fell to US$524 million from $527.4 million.

Meanwhile, the Journal relates that First BanCorp reported a net
loss of US$78.7 million in the second quarter, with much of its
losses came from its Florida operations, where it had US$1.44
billion in loans and US$474.2 million in nonperforming assets on
June 30.  The report notes the about half of its Florida loans
were held by FirstBank Florida, while the rest are part of
FirstBank Puerto Rico.

                        About First BanCorp

First BanCorp is a financial holding company located in San Juan,
Puerto Rico, which offers a full range of financial services in
Puerto Rico, US Virgin Islands, the British Virgin Islands, and in
the State of Florida through its wholly-owned subsidiaries.  Its
main subsidiary, FirstBank, is a business and consumer financial
services company offering banking services, trust and brokerage
services, and various types of loans. First BanCorp also provides
auto lease financing and insurance services through other
specialized subsidiaries.  Its headquarters are located at 1519
Ponce De Leon Ave, in the Golden Mile District of Hato Rey, San
Juan.

                          *     *     *

As of August 20, 2009, the company continues to carry Standard and
Poor's BB+ LT Issuer credit ratings.  The company also continues
to carry Fitch ratings BB LT Issuer Default rating, B Short term,
and B ST Issuer Default rating



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


BANCO DE VENEZUELA: Fitch Affirms Issuer Default Ratings at 'B+'
----------------------------------------------------------------
Fitch Ratings has affirmed Banco de Venezuela's long-term local
and foreign currency Issuer Default Ratings at 'B+' and removed
the ratings from Rating Watch Evolving.  The Rating Outlook is
Stable.

Given its new ownership structure and strategic importance for the
Venezuelan government, Fitch has upgraded BdV's Support Rating to
'4' from '5', and long-term and short-term National Scale Ratings
to 'AAA(ven)' from 'AA(ven)'and to 'F1+(ven)' from 'F1(ven)',
respectively.

Fitch has taken these actions:

  -- Long-term foreign and local currency IDRs affirmed at 'B+';

  -- Short-term foreign and local currency rating affirmed at 'B';

  -- Individual affirmed at 'D';

  -- Support Rating upgraded to '4' from '5';

  -- Support Floor Rating assigned 'B+';

  -- Long-term National rating upgraded to 'AAA(ven)' from
     'AA(ven)';

  -- Short-term National rating upgraded to 'F1+(ven) from
     'F1(ven)'.

Fitch has removed the long-term foreign and local currency IDRs
from Rating Watch Evolving.  The Rating Outlook for the long-term
ratings is Stable.

The rating actions follow the acquisition by the Venezuelan
government (Long-term IDR 'B+' with a Stable Outlook by Fitch) of
over 95% of the capital of BdV.  The government now has doubled
its footprint in the local financial system, with government-owned
banks holding 21% of total assets (11% prior to the acquisition)
and expanding their combined branch networks by 74%.  With this
acquisition, the government-owned banks stand as the largest
banking group in the country.

BdV's IDRs reflect its strong franchise, adequate overall
financial profile and the support from its new shareholder, the
Venezuelan government.  BdV's Individual Rating is driven by its
adequate financial profile, good asset quality and above average
profitability.  The inception of a new business model driven by
the development plans of the government -- not necessarily driven
to maximize profits -- could hinder those strengths in the future.
A new Board of Directors and a President, all presidents of other
government-owned banks, were appointed.

BdV's ownership and strategic importance result in a substantial
willingness of the government to provide support should it be
required.  According to Fitch's methodology, Venezuela's sub-
investment grade rating and the lack of a consistent policy
regarding bank support in the past results in a limited
probability of support.

The Outlook for the long-term IDR is Stable, in line with the
Outlook of the sovereign.  Given its current level, BdV's IDR
should be affected only by changes in Venezuela's sovereign
rating.  In turn, BdV's Individual Rating could be pressured by
lower profitability or a deterioration of its asset quality
ratios.

Based on a solid credit risk and cost control policy from its
previous shareholder (Banco Santander from Spain), BdV has been
able not only to cope with the constant volatility of the
operating environment in Venezuela, but also stand as a benchmark
in terms of profitability and good asset quality by posting solid
Return on Average Assets (ROAA) ratios above 3% in the last five
years.

Lower economic activity and the seasoning of a recently and
rapidly built-up loan portfolio have slightly eroded BdV's asset
quality ratios since 2008.  At the end of June 2009 the past-due
loans to total loans ratio increased to 1.4% (similar to the
average for the largest banks in the country, but still below the
2.5% average of the system or the 12% posted by the government-
owned banks), while loan loss reserve coverage decreased to a
tight 123%.  A possible expansion into economic sectors deemed as
strategic by the government, but not necessarily with low risk,
could hinder BdV asset quality if credit risk is not adequately
controlled.

BdV's capital ratios remain steady (equity to assets was 9.4% at
the end of June 2009) and stronger than the market average given
its almost unencumbered by fixed and foreclosed assets.  Cash
dividends could decrease in the future and benefit BdV's capital
position, considering such policy in other government owned
companies.  Nevertheless, a possible downturn in its profitability
could limit its internal capital generation capacity.


* VENEZUELA: GDP Shrinks 2.4% in Second Quarter
-----------------------------------------------
Daniel Cancel and Matthew Walter at Bloomberg News report that
Venezuela's gross domestic product shrank 2.4% in the second
quarter, the first time since 2003, after a plunge in oil prices
led to restricted government and consumer spending, and
manufacturing output collapsed.  In the first half of the year,
GDP fell 1 percent, the central bank said in an e-mailed statement
obtained by the news agency.

“While other economies are coming out of recessions, Venezuela is
entering one,” Jose Guerra, a former central bank director, told
Bloomberg News in a phone interview.  “There’s been a complete
destruction of the productive capacity of the country,” Mr. Guerra
added.

According to the report, the economy faltered under Venezuela’s
rigid foreign exchange and price controls, as President Hugo
Chavez responded to a collapse in oil prices at the beginning of
the year by cutting spending and controlling the sale of dollars
at the official exchange rate to try to hold on to reserves.

“The manufacturing sector is going to have a negative performance,
mostly because of the restriction in imports and dollars, which
has caused a drop in the supply of primary materials,” the report
quoted Miguel Carpio, an economist at Banco Federal CA in Caracas,
as saying.  “Add to that the drop in consumption, and this is
going to be a very difficult year,” Mr. Carpio adds.

Bloomberg News points out that the country's economic indicators
contracted across the board in the second quarter, including
investment, oil activity, manufacturing and consumer spending, as
the economy reeled from the collapse in oil prices.

President Chavez, the report notes, is pushing government
borrowing to a record this year through bond sales in the local
market to finance a deficit.  The report relates Boris Segura,
senior economist at RBS Securities Inc., said the government may
be forced to adjust economic and foreign exchange policies.  This
could include a devaluation of the official exchange rate for the
first time in four years, or the implementation of a dual exchange
rate to boost the amount of local currency Chavez can spend from
each dollar of oil sales, Mr. Segura added.

“This is the first time since the crisis of 2002 and 2003 that
non-oil activities contracted, which gives you an idea of the
crisis in Venezuela,” the report quoted Mr. Segura as saying.

                         *     *     *

According to Moody's Investors Service, Venezuela continues to
carry a B2 foreign currency rating and a B1 local currency rating
with stable outlook.


                            ***********

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
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Information contained herein is obtained from sources believed to
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           * * * End of Transmission * * *