/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090824.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, August 24, 2009, Vol. 10, No. 166 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: SFG Receiver Faces Criticism & Possible Removal A R G E N T I N A ADESIL SA: Trustee Verifying Proofs of Claim Until October 1 ANEDRA SA: Requests for Preventive Contest DIVISION CMR: Asks for Preventive Contest FITO SRL: Trustee Verifying Proofs of Claim Until September 25 KONFLUENCIA SA: Asks for Preventive Contest PALUDETTO HNOS: Trustee Verifying Proofs of Claim Until Sept. 24 TEXPART SRL: Asks for Preventive Contest B A H A M A S FOUR SEASONS: Sells Bahamas Unit to Sandals Resorts B E R M U D A BERNARD L. MADOFF: Alpha Prime Fund Ignores Lawsuit BLUEPOINT RE: Creditors' Proofs of Debt Due on September 8 KINGATE GLOBAL: Court to Hear Wind-Up Petition on September 4 MARINER REINSURANCE: Scheme Creditors' Meeting Set for October 15 B R A Z I L BANCO DO BRASIL: May Double Credit to Individuals BANCO NACIONAL: Gets Final Part of BRL100-Billion Loan BANCO NACIONAL: Magnesita Refratarios Completes Debt Renegotiation BANCO NACIONAL: Evaluates US$332 Million Loan for Bolivia CAIXA ECONOMICA: Provides BRL2 Billion Credit Line for CSN COMPANHIA SIDERURGICA: Gets BRL2BB Loan for Working Capital GERDAU SA: Chief Executive Officer Sees Slow Steel Market Recovery MAGNESITA REFRATORIOS: Completes Debt Renegotiation C A Y M A N I S L A N D S AGATE IAM: Creditors' Proofs of Debt Due on October 6 AMBER IAM: Creditors' Proofs of Debt Due on October 6 BERNARD L. MADOFF: 2 Cayman Funds Gets Default Notices BREEZE IAM: Creditors' Proofs of Debt Due on October 6 DAISY IAM: Creditors' Proofs of Debt Due on October 6 DIAMOND IAM: Creditors' Proofs of Debt Due on October 6 DIMENSION (IMA): Creditors' Proofs of Debt Due on October 6 EMBRYO (IFI): Creditors' Proofs of Debt Due on October 6 FOUNTAIN IAM: Creditors' Proofs of Debt Due on October 6 INTER SPHERE: Placed Under Voluntary Wind-Up LILAC IAM: Creditors' Proofs of Debt Due on October 6 OSPREY IAM: Creditors' Proofs of Debt Due on October 6 SEAHAWK IAM: Creditors' Proofs of Debt Due on October 6 TITAN IAM: Creditors' Proofs of Debt Due on October 6 TULIP IAM: Creditors' Proofs of Debt Due on October 6 UNITY IAM: Creditors' Proofs of Debt Due on October 6 J A M A I C A CABLE & WIRELESS: Appoints David Shaw as Chief Executive Officer SUGAR COMPANY OF JAMAICA: Gov't Closer to Selling Sugar Factories SUGAR COMPANY OF JAMAICA: Eridania Order to Cost US$45 Million M E X I C O OCEANOGRAFIA SA: S&P Affirms 'CCC' Rating on $335 Mil. Notes T R I N I D A D & T O B A G O CL FIN'L: CLICO Opens Agency to Handle Business From Closed Firms V E N E Z U E L A CITGO PETROLEUM: Released “Significant” Toxic Chemicals PETROLEOS DE VENEZUELA: U.S. Unit Under Probe Over Toxic Released * VENEZUELA: Expects Economy to “Skirt” Recession * VENEZUELA: Must Reform Financial Rules, Finance Minister Says X X X X X X X X * BOND PRICING: For the Week August 17 to July 21, 2009 - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: SFG Receiver Faces Criticism & Possible Removal --------------------------------------------------------------- Stanford Financial Group receiver, Ralph Janvey, faces heightened criticism and calls for his removal, Anna Driver at Reuters reports. The report relates that Mr. Janvey is being accused by investors, regulators and politicians of overreaching his authority and overspending on legal bills and consultants. According to the report, the U.S. Securities and Exchange Commission, who recommended Mr. Janvey for the position, now seeks to limit Mr. Janvey's role in the case, while at least one U.S. senator wants him booted from the job. The report relates that about US$269 million in Robert Allen Stanford's assets has been recovered and Mr. Janvey has asked U.S. District Judge David Godbey in Dallas to approve about US$27 million in fees. As reported in the Troubled Company Reporter-Latin America on July 30, 2009, Bloomberg News said that Mr. Janvey said he is seeking to recoup US$925 million tied to certificates of deposit issued by Stanford International Bank Limited. The report related Mr. Janvey expanded an earlier complaint to recover money from Stanford customers as well as brokers whom 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 related 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 an[d] misdeeds, just like other Stanford clients that the receiver is charged with protecting.” The report recalled 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 noted 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 related both claimed the lawsuits would cost more than they would recover and would punish people who are already victims. Reuters relates that Rose Romero, regional director in the SEC's Fort Worth office, told investors at the hearing that her office was exploring ways to limit the scope of the receivership. The report relates that Ms. Romero said that the SEC is considering the possibility of replacing Mr. Janvey as receiver. Meanwhile, the report notes that U.S. Republican Senator David Vitte said he plans to write SEC Chairman Mary Schapiro, asking her to request that Mr. Janvey be replaced with a receiver whose interests are more aligned with investors. 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 ================= ADESIL SA: Trustee Verifying Proofs of Claim Until October 1 ------------------------------------------------------------ The court-appointed trustee for Adesil S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 1, 2009. ANEDRA SA: Requests for Preventive Contest ------------------------------------------ Anedra SA requested for its preventive contest. The company stopped making its payments July 1, 2009. DIVISION CMR: Asks for Preventive Contest ----------------------------------------- Division CMR SA asked for its preventive contest. FITO SRL: Trustee Verifying Proofs of Claim Until September 25 -------------------------------------------------------------- The court-appointed trustee for Fito S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until September 25, 2009. The trustee will present the validated claims in court as individual reports on November 11, 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. A general report that contains an audit of the company's accounting and banking records will be submitted in court on December 28, 2009. KONFLUENCIA SA: Asks for Preventive Contest ------------------------------------------- Konfluencia SA asked for its preventive contest. PALUDETTO HNOS: Trustee Verifying Proofs of Claim Until Sept. 24 ---------------------------------------------------------------- The court-appointed trustee for Paludetto Hnos. S.H.'s bankruptcy proceedings will be verifying creditors' proofs of claim until September 24, 2009. The trustee will present the validated claims in court as individual reports on November 6, 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. A general report that contains an audit of the company's accounting and banking records will be submitted in court on December 18, 2009. TEXPART SRL: Asks for Preventive Contest ---------------------------------------- Texpart SRL asked for its preventive contest. ============= B A H A M A S ============= FOUR SEASONS: Sells Bahamas Unit to Sandals Resorts --------------------------------------------------- Sandals Resorts International has purchased Four Seasons Resort Great Exuma at Emerald Bay, Bahamas for an undisclosed sum, CaribWorldNews reports. The report relates Sandals Resorts Founder and Chairman, Gordon 'Butch' Stewart, said that the 500-acre property is set to become a Sandals Resort and will be called Sandals Emerald Bay, Great Exuma, Bahamas. "We have deep roots in The Bahamas. We know the people and these islands well and it is our distinct pleasure and honor to further our partnership in tourism here," the report quoted Mr. Stewart as saying. As reported in the Troubled Company Reporter-Latin America on May 18, 2009, hottelchatter.com said that Four Seasons Exuman in Bahamas will close on May 26, as the property seems to be in "receivership" which is pretty much a last-ditch attempt to avoid bankruptcy. The report related that the property was not able to find a new owner and is now forced to close up shop, the report relates. The hotel, the report recalled, said that Four Seasons continues to operate the resort normally until that time, however, it is not accepting new reservations. About Four Seasons Four Seasons Hotels -- http://www.fourseasons.com-- manages some 75 luxury hotels and resorts in more than 30 countries. Most properties are operated under the Four Seasons name, but some are Regent hotels. It has ownership interests in only about half of its properties, having shifted from a hotel owner to a hotel operator in the 1990s. In 2007 Four Seasons Hotels board members took the company private. ============= B E R M U D A ============= BERNARD L. MADOFF: Alpha Prime Fund Ignores Lawsuit --------------------------------------------------- Bernard L. Madoff Investment Securities LLC trustee Irving Picard, appointed under the Securities Investor Protection Act to liquidate the company, seeks permission from the U.S. Bankruptcy Court in Manhattan to file default notices against Bermuda-based Alpha Prime Fund Limited for ignoring his lawsuits, Erik Larson at Bloomberg News reports. As reported in the Troubled Company Reporter-Latin America on July 17, 2009, Bloomberg News said Mr. Picard sued Bermuda-based Alpha Prime Fund Limited for allegedly receiving almost US$213 million in transfers from the Madoff firm in the past two years. London-based HSBC Bank Plc and a Luxembourg-based unit were also included in Mr. Harris' 29-page complaint. According to the report, Mr. Picard alleged that HSBS and its unit were conduits for the shifting of money from Madoff to Alpha Prime. The report, citing Mr. Picard's complaint, relates that from January 2005 to December 11, 2008 -- the day Mr. Madoff was arrested and was sued by the U.S. Securities and Exchange Commission -- Alpha Prime received transfers via HSBC and beneficial tax payments of almost US$213 million. Bloomberg News said that the complaint stated that HSBC, its subsidiary and other unnamed entities invested us$227.6 million with a Madoff firm on behalf of Alpha Prime starting in June 2003, according to the complaint. “Alpha Prime knew or should have known” that Madoff’s investment advisory business “was predicated on fraud,” the report quoted Mr. Picard’s attorneys as saying. Bloomberg News said the default doesn’t apply to HSBC, which has said it has “good defenses” to the trustee’s allegations. About Bernard Madoff Bernard L. Madoff Investment Securities LLC was a market maker in U.S. stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on December 15, 2008, the Securities and Exchange Commission charged Mr. Madoff and his investment firm with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Mr. Madoff's fraud were allegedly at least $50 billion. Also on December 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. As reported by the TCR, Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors. BLUEPOINT RE: Creditors' Proofs of Debt Due on September 8 ---------------------------------------------------------- The creditors of Bluepoint Re Limited are required to file their proofs of debt by September 8, 2009, to be included in the company's dividend distribution. John C. McKenna is the company's liquidator. KINGATE GLOBAL: Court to Hear Wind-Up Petition on September 4 ------------------------------------------------------------- A petition to wind up the operations of Kingate Global Fund, Ltd. will be heard before the Supreme Court of Bermuda on September 4, 2009, at 9:45 a.m. The attorneys for the petitioner is: Sedgwick Chudleigh Mercury House, Fourth Floor 101 Front Street Hamilton HM12, Bermuda MARINER REINSURANCE: Scheme Creditors' Meeting Set for October 15 ----------------------------------------------------------------- The scheme creditors of Mariner Reinsurance Company Limited will hold a meeting on October 15, 2009, at 2:00 p.m., at the offices of KMS Insurance Management Limited, America House, 2 America Square, in London, EC3N 2LU, United Kingdom. =========== B R A Z I L =========== BANCO DO BRASIL: May Double Credit to Individuals ------------------------------------------------- Banco do Brasil SA may double credit to individuals over the next decade as falling interest rates spur demand for car and home loans, Telma Marotto at Bloomberg News reports, citing President Aldemir Bendine. According to the report, Mr. Bendine said that personal loans may climb to as high as 50% of the state-controlled bank’s total portfolio from 27% in the second quarter. The report relates such lending rose 69% to BRL68.5 billion (US$37.1 billion) in the three months ending June 30 after the central bank cut the benchmark interest rate below 10% for the first time. The report notes that the push is helping Banco do Brasil counter a drop in revenue from lower borrowing costs. The report relates that Banco do Brasil’s net interest margin increased to 7.3% in the second quarter from 7.1% a year earlier. “The best way to compensate for losses in revenue in a scenario of lower benchmark interest rates is to increase credit volume,” Mr. Bendine told Bloomberg News in an interview. “This good moment for Brazilian banks is due in large part to the size of the population that is having access to bank products,” the report quoted Mr. Bendine as saying. 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'. BANCO NACIONAL: Gets Final Part of BRL100-Billion Loan ------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social SA received the final BRL36 billion (US$19.8 billion) installment of a BRL100 billion treasury loan on August 22, John Kolodziejski at Dow Jones Newswires reports, citing Estado news agency. As reported in the Troubled Company Reporter-Latin America on January 26, 2009, Reuters said Brazil's government will inject BRL100 billion (US$42.63 billion) BNDES this year in a bid to spur corporate investment. The report related that the government expects the move should help provide much needed cash for companies as private banks have reduced lending because of the global credit crunch. "This is how we will confront the global economic crisis," Reuters quoted Finance Minister Guido Mantega as saying. "The answer is to keep investment levels high," Mr. Mantega added. According to the report, the capital injection will help BNDES have a record BRL160 billion available for credit this year. The government, Reuters added, expects "zero fiscal impact" from the BNDES capital injection because the bank will have to pay back the funds to the treasury at some point in the future. According to Dow Jones Newswires, the first BRL13 billion installment was paid in March and was followed by BRL26 billion in June, and a further BRL25 billion in July. The report notes that the whole July loan installment was allocated to state-controlled oil company Petrobras (PBR). About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. BANCO NACIONAL: Magnesita Refratarios Completes Debt Renegotiation ------------------------------------------------------------------ Magnesita Refratarios SA has completed the renegotiation of its major debts, John Kolodziejski at Dow Jones Newswires reports, citing the Estado news agency. The report relates that Banco Nacional de Desenvolvimento Economico e Social SA said the company successfully agreed to new terms for loans and finance with institutions such as JPMorgan, Itau BBA and Bradesco. According to the report, the renegotiation was possible thanks to an increase in capital in which BNDES' equities arm, BNDESPAR, took a stake in Magnesita. As reported in the Troubled Company Reporter-Latin America on August 19, 2009, latin France said that Magnesita Refratarios plans to raise BRL350 million by offering 44.9 million shares. The report related that existing shareholders will be able to purchase the stock in amounts proportional to their holdings starting through September 16. According to the report, BNDESPar, the equity investor arm of Brazilian development bank BNDES and a Magnesita shareholder, plans to acquire a minimum of BRL55.9 million in new shares, and could buy up to BRL245 million if minority shareholders fail to exercise their full allotments. The report notes that Magnesita plans to offer shares at BRL7.80 per share. "The aim of the operation was to readjust Magnesita's capital structure, allowing it to continue its process of internationalization," the Dow Jones quoted BNDES President Luciano Coutinho, as saying. The only problem Magnesita had was in its credit profile, Mr. Coutinho added. About Magnesita Refratarios Magnesita Refratarios SA produces and markets refractory materials and operates mines. The company's product includes refractory bricks, refractory tools for continous casting, and monolithic refractories. Magensia owns mineral deposits throughout Brazil. * * * As of July 14, 2009, the company continues to carry Moody's B2 LT Corp Family rating and Ba2.br NSR LT Corp rating. The company also continues to carry Standard and Poor's BB- LT Issuer Credit ratings. BANCO NACIONAL: Evaluates US$332 Million Loan for Bolivia --------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA said it is studying a US$332 million loan for Bolivia, but has not approved anything yet, LatinFrance reports. According to the report, the loan would go to finance the construction of a 306 km-long road connecting the cities of Cochabamba and Beni. Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. CAIXA ECONOMICA: Provides BRL2 Billion Credit Line for CSN ---------------------------------------------------------- Companhia Siderurgica Nacional S.A. has received a credit line from Brazilian state-owned bank Caixa Economica Federal to use for working capital, LatinFrance reports, citing unnamed source. A Troubled Company Reporter-Latin America report on August 21, 2009, citing Dow Jones Newswires, related that that CSN obtained a loan for BRR2 billion in a term of three years from a federal bank. According to LatinFrance, this is the third major loan Caixa Economica Federal has done for higher rated Brazilian corporates. The report relates that in March, it extended a BRL500m 3-year facility to a unit of Ipiranga at 120.0% of the CDI, and it loaned Braskem a BRL600m 4-year facility at an all-in cost of 122.3% of CDI. The report says the CSN loan is significantly larger, and likely commands a higher relative spread, though market conditions have improved substantially since March. Meanwhile, LatinFrance relates that CSN has been rumored to be among the candidates for a cross border bond. “We believe the company wants to maintain its cash position to allow it to take advantage of opportunities that could include acquiring coal assets,” says Barclays in a report obtained by the news agency. “We continue to view CSN as a solid credit but believe that CSN bonds trade relatively rich and offer little upside potential,” Barclays added. About CSN 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+. About Caixa Economica Headquartered in Brasilia, Caixa Economica Federal -- http://www.caixa.gov.br-- is a Brazilian bank and one of the largest government-owned financial institutions in Latin America. Founded in Jan. 12, 1861, Caixa Economica is the second biggest Brazilian bank, second only to Banco do Brasil, and offers services in thousands of Brazilian towns, ranking third in Brazil in number of branches. The company has more than 32 million accounts and controls more than US$170 billion. It is responsible for executing policies in the areas of housing and basic sanitation, the administration of social funds and programs and federal lotteries. * * * Caixa Economica Federal continues to carry a Ba2 foreign currency deposit rating from Moody's Investors Service. The rating was assigned by Moody's in May 2008. COMPANHIA SIDERURGICA: Gets BRL2BB Loan for Working Capital ----------------------------------------------------------- Companhia Siderurgica Nacional S.A. has received a credit line from Brazilian state-owned bank Caixa Economica Federal to use for working capital, LatinFrance reports, citing unnamed source. A Troubled Company Reporter-Latin America report on August 21, 2009, citing Dow Jones Newswires, related that that CSN obtained a loan for BRR2 billion in a term of three years from a federal bank. According to LatinFrance, this is the third major loan Caixa Economica Federal has done for higher rated Brazilian corporates. The report relates that in March, it extended a BRL500m 3-year facility to a unit of Ipiranga at 120.0% of the CDI, and it loaned Braskem a BRL600m 4-year facility at an all-in cost of 122.3% of CDI. The report says the CSN loan is significantly larger, and likely commands a higher relative spread, though market conditions have improved substantially since March. Meanwhile, LatinFrance relates that CSN has been rumored to be among the candidates for a cross border bond. “We believe the company wants to maintain its cash position to allow it to take advantage of opportunities that could include acquiring coal assets,” says Barclays in a report obtained by the news agency. “We continue to view CSN as a solid credit but believe that CSN bonds trade relatively rich and offer little upside potential,” Barclays added. About CSN 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+. About Caixa Economica Headquartered in Brasilia, Caixa Economica Federal -- http://www.caixa.gov.br-- is a Brazilian bank and one of the largest government-owned financial institutions in Latin America. Founded in Jan. 12, 1861, Caixa Economica is the second biggest Brazilian bank, second only to Banco do Brasil, and offers services in thousands of Brazilian towns, ranking third in Brazil in number of branches. The company has more than 32 million accounts and controls more than US$170 billion. It is responsible for executing policies in the areas of housing and basic sanitation, the administration of social funds and programs and federal lotteries. * * * Caixa Economica Federal continues to carry a Ba2 foreign currency deposit rating from Moody's Investors Service. The rating was assigned by Moody's in May 2008. GERDAU SA: Chief Executive Officer Sees Slow Steel Market Recovery ------------------------------------------------------------------ Gerdau S.A. Chief Executive Officer Andre Gerdau Johannpeter said that the company will slowly resume production and investments as the market for steel recovers gradually, Guillermo Parra-Bernal at Reuters reports, citing Valor Economico newspaper. According to the report, Mr. Johannpeter told Valor newspaper in an interview that the US$8.3 billion acquisition frenzy over which he has presided since taking the helm the company was "the right decision." "It was a question of positioning yourself strategically, since everyone in the industry was doing the same," the report quoted Mr. Johannpete as saying. As reported in the Troubled Company Reporter-Latin America on August 7, 2009, the company posted a net loss of R$329 million in the second quarter of 2009. Reuters relates that the loss was due to the writing down the value of assets acquired during the past years. The report notes that the company has been grappling with declining activity as a recession in key markets such as the United States and some European countries has curbed demand. Meanwhile, Reuters notes that Mr. Johannpeter told Valor newspaper that he is "concerned" over excess optimism by bankers and investors about the pace of the global economic recovery. "We see the stock markets with all this level of euphoria," Mr. Johannpeter said, the Reuters relates. "Everyone has gone through such a rough ride that they are looking for good news. And we need the good news to keep coming," Mr. Johannpeter added. About Gerdau S.A. Headquartered in Porto Alegre, Brazil, Gerdau S.A. -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As of June 19, 2009, the company continues to carry Moody's Ba1 LT Corp Family rating and Ba1 Senior Unsecured Debt Ratings. MAGNESITA REFRATORIOS: Completes Debt Renegotiation --------------------------------------------------- Magnesita Refratarios SA has completed the renegotiation of its major debts, John Kolodziejski at Dow Jones Newswires reports, citing the Estado news agency. The report relates that Banco Nacional de Desenvolvimento Economico e Social SA said the company successfully agreed to new terms for loans and finance with institutions such as JPMorgan, Itau BBA and Bradesco. According to the report, the renegotiation was possible thanks to an increase in capital in which BNDES' equities arm, BNDESPAR, took a stake in Magnesita. As reported in the Troubled Company Reporter-Latin America on August 19, 2009, latin France said that Magnesita Refratarios plans to raise BRL350 million by offering 44.9 million shares. The report related that existing shareholders will be able to purchase the stock in amounts proportional to their holdings starting through September 16. According to the report, BNDESPar, the equity investor arm of Brazilian development bank BNDES and a Magnesita shareholder, plans to acquire a minimum of BRL55.9 million in new shares, and could buy up to BRL245 million if minority shareholders fail to exercise their full allotments. The report notes that Magnesita plans to offer shares at BRL7.80 per share. "The aim of the operation was to readjust Magnesita's capital structure, allowing it to continue its process of internationalization," the Dow Jones quoted BNDES President Luciano Coutinho, as saying. The only problem Magnesita had was in its credit profile, Mr. Coutinho added. About Magnesita Refratarios Magnesita Refratarios SA produces and markets refractory materials and operates mines. The company's product includes refractory bricks, refractory tools for continous casting, and monolithic refractories. Magensia owns mineral deposits throughout Brazil. * * * As of July 14, 2009, the company continues to carry Moody's B2 LT Corp Family rating and Ba2.br NSR LT Corp rating. The company also continues to carry Standard and Poor's BB- LT Issuer Credit ratings. ========================== C A Y M A N I S L A N D S ========================== AGATE IAM: Creditors' Proofs of Debt Due on October 6 ----------------------------------------------------- The creditors of Agate IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands AMBER IAM: Creditors' Proofs of Debt Due on October 6 ----------------------------------------------------- The creditors of Amber IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands BERNARD L. MADOFF: 2 Cayman Funds Gets Default Notices ------------------------------------------------------ Bernard L. Madoff Investment Securities LLC trustee Irving Picard, appointed under the Securities Investor Protection Act to liquidate the company, seeks permission from the U.S. Bankruptcy Court in Manhattan to file default notices against two Cayman Islands firms -- Harley International Limited and Primeo Fund -- accused of profiting from the fraud are ignoring his lawsuits, Erik Larson at Bloomberg News reports. According to the report, Chris Sharpe, of the financial advisory firm Zolfo Cooper, which is liquidating Primeo in a Cayman Islands court, declined to comment. The report relates the fund entered voluntary liquidation in January. As reported in the Troubled Company Reporter-Latin America on July 9, 2009, in May, Mr. Picard sued Harley International (Cayman) Limited to recover US$1,072,800,000 the latter received from Madoff from June 23, 2004, until Dec. 11, 2008. Harley, according to Mr. Picard, received avoidable transfers from BLMIS. Harley, the trustee alleged, "knew or should have known that its account statements at BLMIS did not reflect legitimate trading activity and that Madoff was engaged in fraud." The complaint said that from at least 1996 until 2008, Harley received unrealistically high and consistent annual return -- approximating 13.5% -- in contrast to the vastly larger fluctuations in the S&P 100 Index on which Madoff's trading activity was purportedly based during the time period. About Bernard Madoff Bernard L. Madoff Investment Securities LLC was a market maker in U.S. stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on December 15, 2008, the Securities and Exchange Commission charged Mr. Madoff and his investment firm with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Mr. Madoff's fraud were allegedly at least $50 billion. Also on December 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. As reported by the TCR, Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors. BREEZE IAM: Creditors' Proofs of Debt Due on October 6 ------------------------------------------------------ The creditors of Breeze IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands DAISY IAM: Creditors' Proofs of Debt Due on October 6 ----------------------------------------------------- The creditors of Daisy IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands DIAMOND IAM: Creditors' Proofs of Debt Due on October 6 ------------------------------------------------------- The creditors of Diamond IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands DIMENSION (IMA): Creditors' Proofs of Debt Due on October 6 ----------------------------------------------------------- The creditors of Dimension (IMA) Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands EMBRYO (IFI): Creditors' Proofs of Debt Due on October 6 -------------------------------------------------------- The creditors of Embryo (IFI) Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands FOUNTAIN IAM: Creditors' Proofs of Debt Due on October 6 -------------------------------------------------------- The creditors of Fountain IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands INTER SPHERE: Placed Under Voluntary Wind-Up -------------------------------------------- On July 13, 2009, the sole shareholder of Inter Sphere Funding TMK Holdings Inc. resolved to voluntarily wind up the company's operations. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9002, Cayman Islands Telephone: (345) 914-6314 LILAC IAM: Creditors' Proofs of Debt Due on October 6 ----------------------------------------------------- The creditors of Lilac IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands OSPREY IAM: Creditors' Proofs of Debt Due on October 6 ------------------------------------------------------ The creditors of Osprey IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands SEAHAWK IAM: Creditors' Proofs of Debt Due on October 6 ------------------------------------------------------- The creditors of Seahawk IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands TITAN IAM: Creditors' Proofs of Debt Due on October 6 ----------------------------------------------------- The creditors of Titan IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands TULIP IAM: Creditors' Proofs of Debt Due on October 6 ----------------------------------------------------- The creditors of Tulip IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands UNITY IAM: Creditors' Proofs of Debt Due on October 6 ----------------------------------------------------- The creditors of Unity IAM Limited are required to file their proofs of debt by October 6, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2009. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Boundary Hall, Cricket Square PO Box 1111, Grand Cayman KY1-1102 Cayman Islands ============= J A M A I C A ============= CABLE & WIRELESS: Appoints David Shaw as Chief Executive Officer ---------------------------------------------------------------- Cable and Wireless Jamaica Limited has advised that David Shaw was appointed as Chief Executive Officer of Lime on July 21, 2009. Mr. Shaw was also appointed to the Board of Directors at a special meeting held on August 12, 2009. Lime (formerly Cable & Wireless Jamaica) -- http://home.cwjamaica.com/-- is a provider of national and international fixed line services. The company is owned 82% by Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica Digiport International Limited, a company which provides high speed data and other telecommunications services exclusively to freezone and offshore companies. About Cable & Wireless Headquartered in London, England, Cable & Wireless plc -- http://www.cw.com/-- is an international telecommunications company. The Company offers mobile, broadband and domestic and international fixed line services to homes, small and medium-sized enterprises, corporate customers and governments. It operates in 39 countries through four major operations in the Caribbean, Panama, Macau and Monaco & Islands. It operates through two businesses: International and Europe, Asia & US. Its International business operates full service telecommunications companies through four major operations in the Caribbean, Panama, Macau and Monaco and Islands. Its Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecom services across the United Kingdom, continental Europe, Asia and the United States. Its subsidiaries include Cable & Wireless UK, Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable & Wireless (Barbados) Ltd and Monaco Telecom SAM. * * * According to Bloomberg data, Cable & Wireless plc continues to carry Moody's "Ba3"long-term corporate family rating, "B1"senior unsecured debt rating and "Ba3"probability of default rating with a stable outlook. The company continues to Standard & Poor's "BB-"long-term foreign and local issuer credit ratings and "B"short-term foreign and local issuer credit ratings. SUGAR COMPANY OF JAMAICA: Gov't Closer to Selling Sugar Factories ----------------------------------------------------------------- The Jamaican government is one step closer to completing the sale of state-owned sugar factories, RadioJamaica reports. The report relates that According to the report, Agriculture Minister Dr. Chris Tufton said significant progress has been made. "Well we want to do it as quickly as we can but we understand that it has to be a process and there has to be a number of stages including due diligence on both sides and so," the report quoted Mr. Tufton as saying. "I want to commit an exact time but I think we are going at a rate that makes me comfortable that we will reach a decision in the not too distant future," Mr. Tufton added. As reported in the Troubled Company Reporter-Latin America on June 22, 2009, citing RadioJamaica, the Jamaican government's plan to divest SCJ's five sugar factories may face trouble if the original owners of the Hampden Estate succeed in their legal battle in the High Court. The report related that Hampden has sued the SCJ, the Trelawny Sugar Company which operated the factory, and the former receiver/manager John Lee in its objection to the divestment. The Gleaner noted that SCJ's sugar factories are now expected to be sold off to what has been described as a "priority four investors." The report related that sources said the government failed to offload the company as a single entity. According to the report, prospective buyers on the short-list are: * a conglomerate -- Hussey family and American partners -- who is going after the Long Pond and Hampden Estates in Trelawny; * U.S.-based Energen Corporation for the Petrojam Ethanol facility and Bernard Lodge, Innswood, Monymusk estates in Clarendon; * Italians Eridania Sadam, who is eyeing the Frome estate in Westmoreland; and * Fred M. Jones, in partnership with Seprod Limited, has set his sights on the Duckenfield estate in St Thomas. 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. SUGAR COMPANY OF JAMAICA: Eridania Order to Cost US$45 Million -------------------------------------------------------------- The 79,000 tonnes (174 million pounds) of raw sugar that the government will supply Italian-owned Eridania Suisse SA, as part of an agreement, could cost the state as much as US$45 million ($4 billion), The Jamaica Gleaner reports. The report notes that this estimate is related to the assumption that the factories perform at 2008 levels when unit costs were 26 US cents per pound. However, the report relates that if the production costs will go down to 18 US cents per pound in time for this year's crop, Eridania's supplies would cost US$31.3 million (JM$2.8 billion) to churn -- still more than double the seed money available to Jamaica. According to the report, Agriculture Minister Christopher Tufton has said that Jamaica can produce Eridania's sugar at US$21 million (J$1.87 billion), but, getting to that price would require the sugar factories to become so super-efficient. As reported in the Troubled Company Reporter-Latin America on July 21, 2009, RadioJamaica said Eridania Suisse's US$15 million provision for the Jamaica government as part of a deal to carry on production activities at Sugar Company Jamaica is a stand alone deal and would not compromise negotiations for SCJ's sale. According to a TCRLA report, citing Caribbean Net News, 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. =========== M E X I C O =========== OCEANOGRAFIA SA: S&P Affirms 'CCC' Rating on $335 Mil. Notes ------------------------------------------------------------ Standard & Poor's Ratings Services removed its 'CCC' long-term corporate credit rating on Oceanografia S.A. de C.V. from CreditWatch, where it was placed with negative implications on Jan. 19, 2009. At the same time, S&P affirmed the 'CCC' rating on Oceanografia and its $335 million senior secured notes. The outlook is negative. Founded in 1968, Oceanografia provides pipe-laying and pipe-burial construction services, inspection, maintenance and repair (primarily for pipeline infrastructure), and vessel-chartering services for Petroleos Mexicanos in the Bay of Campeche. "The affirmation reflects S&P's belief (based on preliminary information) that, while S&P believes Oceanografia will report weak financial results during the first half of 2009, these results show a slight improvement versus 2008, and could continue to improve during the second half of 2009 as new vessels arrive. The ratings also reflect S&P's view of the company's business profile as vulnerable, given its high customer and geographic concentration and the continued delay in the delivery of new vessels. S&P also think its financial profile is highly leveraged, especially in light of its very weak liquidity, elevated indebtedness, and poor disclosure of financial information," said Standard & Poor's credit analyst Enrique Gomez Tagle. Oceanografia's business profile reflects its high dependence on PEMEX contracts -- the company's only source of revenue. As a result, regulatory and operational developments around PEMEX may significantly affect Oceanografia's prospects. S&P's perception of Oceanografia's capacity to successfully execute new contracts has been hindered by the continued delay in the delivery of new vessels since the end of 2008. This has resulted in lower-than- expected sales and in a major deterioration in the company's financial profile. The outlook is negative, given S&P's concerns about the company's liquidity, the delay in the release of financial results for the first and second quarters of 2009, and S&P's unease about the company's ability and willingness to report timely financial statements. "If liquidity does not improve in the coming months, if the delays in the release of complete financial information to the public continue, or if the results are weaker that expected, S&P could downgrade the ratings. An improvement in Oceanografia's liquidity and information disclosure, along with evidence of improvements in its operations, could lead us to revert the outlook to stable," Mr. Gomez added. =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: CLICO Opens Agency to Handle Business From Closed Firms ----------------------------------------------------------------- Colonial Life Insurance Company, a unit of CL Financial Limited, opened a new agency, CL Agency, at the company's St Vincent St, Port of Spain head office, to handle business from three top performing offices it closed, Trinidad and Tobago Express reports. According to the report, CLICO said CL Agency would "re-affirm Colonial Life's commitment to its clients and provide another avenue for the public to interact with our financial advisers and courteous staff". The report relates the new agency will also monitor and streamline CLICO's vast insurance and investment products. As reported in the Troubled Company Reporter-Latin America on August 19, 2009, Trinindad and Tobago Newsday said majority of the workers at three Colonial Life Insurance Company offices that were closed last week -- Valpark Shopping Plaza in Valsayn, Herbert Street in St Clair and at the corner of Lucknow and Western Main Road in St James -- resigned from the company. The report related that the workers said that all they want from Clico, a unit of CL Financial Limited, is for the company to pay what they owed to them. According to the report, about 70 workers of the 100 employees of the three branches resigned. The report notes that the affected workers were supposed to meet with Clico Managing Director Claude Musaib Ali at the company?s head office August 17, but the workers who resigned decided to boycott the meeting because they felt nothing useful would come out of it. Some of the former workers told Newsday in an interview that they have not been earning any income for the last six months since they are not selling any new products and usually make their money on commissions. The report pointed out that Clico officials reiterated this was all part of the company's restructuring exercise. About CL Financial CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company, Colonial Life Insurance Company by Cyril Duprey, it was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. has downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCRLA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Released “Significant” Toxic Chemicals ------------------------------------------------------- Citgo Petroleum Corp's plant in Corpus Christi, Texas, had a “significant” release of a potentially lethal chemical from an alkylation unit July 19, seriously injuring a worker, Paul Burkhardt at Bloomberg News reports, citing a federal agency. As reported in the Troubled Company Reporter-Latin America on July 20, 2009, Reuters said Citgo Petroleum's alkylation unit was shut following a July 19 morning fire at its 163,000 barrel per day (bpd) Corpus Christi, Texas, refinery. The report, citing a Citgo filing with the Texas Commission on Environmental Quality, relates that nearly 4,000 pounds of hydrogen fluoride was discharged during the July 19 incident after a fire broke out in the unit. According to the report, the Environmental Protection Agency said Hydrogen fluoride is “toxic to humans, flora, and fauna in certain doses and can be lethal as demonstrated by documented workplace accidents.” The report relates that Citgo reported 3,437 pounds of hydrogen fluoride released from a source of “alkylation unit fugitives” and 560 pounds from a flare stack. The report adds that the chemical board, EPA and Occupational Safety and Health Administration are investigating the Citgo plant incident. About Citgo Petroleum Headquartered in Houston, Texas, Citgo Petroleum Corp. -- http://www.citgo.com/-- is owned by PDV America, an indirect, wholly owned subsidiary of Petroleos de Venezuela S.A., the state-owned oil company of Venezuela. * * * As reported in the Troubled Company Reporter on June 5, 2009, Fitch Ratings affirmed the current ratings of CITGO Petroleum Corporation but revised the company's Outlook to Negative from Stable. Fitch affirmed these ratings for CITGO: -- Issuer Default Rating at 'BB-'; -- Senior Secured Credit Facility at 'BBB-'; -- Secured Term Loan at 'BBB-'; -- Fixed-Rate Industrial Revenue Bonds at 'BBB-'. 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 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: U.S. Unit Under Probe Over Toxic Released ----------------------------------------------------------------- Citgo Petroleum Corp's plant in Corpus Christi, Texas, had a “significant” release of a potentially lethal chemical from an alkylation unit July 19, seriously injuring a worker, Paul Burkhardt at Bloomberg News reports, citing a federal agency. As reported in the Troubled Company Reporter-Latin America on July 20, 2009, Reuters said Citgo Petroleum's alkylation unit was shut following a July 19 morning fire at its 163,000 barrel per day (bpd) Corpus Christi, Texas, refinery. The report, citing a Citgo filing with the Texas Commission on Environmental Quality, relates that nearly 4,000 pounds of hydrogen fluoride was discharged during the July 19 incident after a fire broke out in the unit. According to the report, the Environmental Protection Agency said Hydrogen fluoride is “toxic to humans, flora, and fauna in certain doses and can be lethal as demonstrated by documented workplace accidents.” The report relates that Citgo reported 3,437 pounds of hydrogen fluoride released from a source of “alkylation unit fugitives” and 560 pounds from a flare stack. The report adds that the chemical board, EPA and Occupational Safety and Health Administration are investigating the Citgo plant incident. About Citgo Petroleum Headquartered in Houston, Texas, Citgo Petroleum Corp. -- http://www.citgo.com/-- is owned by PDV America, an indirect, wholly owned subsidiary of Petroleos de Venezuela S.A., the state-owned oil company of Venezuela. * * * As reported in the Troubled Company Reporter on June 5, 2009, Fitch Ratings affirmed the current ratings of CITGO Petroleum Corporation but revised the company's Outlook to Negative from Stable. Fitch affirmed these ratings for CITGO: -- Issuer Default Rating at 'BB-'; -- Senior Secured Credit Facility at 'BBB-'; -- Secured Term Loan at 'BBB-'; -- Fixed-Rate Industrial Revenue Bonds at 'BBB-'. 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 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' * VENEZUELA: Expects Economy to “Skirt” Recession ------------------------------------------------- Venezuela's economy will likely avoid recession and could grow modestly this year, Ana Isabel Martinez at Reuters reports, citing Finance Minister Ali Rodriguez. The report relates that Mr. Rodriguez told local newspaper Ultimas Noticias in an interview that the government was working to stimulate growth and an expansion of 1% was not out of the question. "There is no recession. By convention, a recession exists when there are two consecutive quarters of negative growth. We are not in that situation," Ultimas Noticias quoted Mr. Rodriguez as saying, Reuters notes. As reported in the Troubled Company Reporter-Latin America on August 21, 2009, Bloomberg News said 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%, the central bank said in an e-mailed statement obtained by the news agency. 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. Bloomberg News pointed 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. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. * VENEZUELA: Must Reform Financial Rules, Finance Minister Says --------------------------------------------------------------- Venezuela’s financial industry is in need of reform to reduce speculation and encourage investment that will increase productivity, Matthew Walter at Bloomberg News reports, citing Finance Minister Ali Rodriguez. “An important percentage of Venezuela’s finances are oriented more toward speculative activities than acting to stimulate the national productive apparatus,” the report quoted Mr. Rodriguez as saying. According to the report, Venezuela’s economy shrank 2.4% in the second quarter, the first contraction since 2003, led by a 8.5% drop in manufacturing output. The report relates Mr. Rodriguez said the economy has been hurt by “external factors” including the fall in the price of oil and the global financial crisis. Bloomberg News notes that economists including Miguel Octavio, head of research at BBO Financial Services Inc., said the government may be planning to make changes to the country’s foreign exchange rules, which may include the creation of a dual exchange rate. Mr. Rodriguez, the report relates, said he had presented a plan to President Hugo Chavez to reduce the “imbalance” in the country’s parallel, unofficial exchange rate. The report notes Mr. Rodriguez said the central bank, finance minister and Foreign Exchange Administration Commission met to review demand to buy currency at the official exchange rate and decided to grant 65% of the amount requested. The currency will be sold in three groups, the report adds. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. =============== X X X X X X X X =============== * BOND PRICING: For the Week August 17 to July 21, 2009 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA ALTO PALERMO SA 7.88 5/11/2017 USD 71.1 ARG BODEN 7 10/3/2015 USD 63.85 ARGENT-$DIS 8.28 12/31/2033 USD 52.63 ARGENT-$DIS 8.28 12/31/2033 USD 64.1 ARGENT-PAR 1.18 12/31/2038 ARS 29.72 ARGENT-=DIS 7.82 12/31/2033 EUR 51.16 ARGNT-BOCON PR13 2 3/15/2024 ARS 51.67 ARGNT-BOCON PRE8 2 1/3/2010 ARS 25.9 AUTOPISTAS DEL S 11.5 5/23/2017 USD 39.75 BANCO HIPOT SA 9.75 4/27/2016 USD 77 BANCO MACRO SA 10.75 6/7/2012 USD 48.51 BANCO MACRO SA 9.75 12/18/2036 USD 68.75 BONAR ARG $ V 10.5 6/12/2012 ARS 64.27 BONAR VII 7 9/12/2013 USD 71.74 BONAR X 7 4/17/2017 USD 63.96 BUENOS AIRE PROV 9.38 9/14/2018 USD 50.76 BUENOS AIRE PROV 9.63 4/18/2028 USD 47.97 BUENOS-$DIS 9.25 4/15/2017 USD 57.14 INVERS REP Y SOC 8.5 2/2/2017 USD 77 MENDOZA PROVINCE 5.5 9/4/2018 USD 57.81 TRANSENER 8.88 12/15/2016 USD 73.5 BRAZIL COSAN SA INDUSTR 8.25 #N/A N Ap USD 86.61 REDE EMPRESAS 11.13 #N/A N Ap USD 65.5 REDE EMPRESAS 11.13 #N/A N Ap USD 50.5 VIGOR 9.25 2/23/2017 USD 84 CAYMAN ISLAND AES DOMINICANA 11 12/13/2015 USD 87 AIG SUNAMERICA 6.38 10/5/2020 GBP 68.69 BARION FUNDING 0.1 12/20/2056 EUR 6.37 BARION FUNDING 0.25 12/20/2056 USD 6.79 BARION FUNDING 0.25 12/20/2056 USD 6.79 BARION FUNDING 0.25 12/20/2056 USD 6.79 BARION FUNDING 0.25 12/20/2056 USD 6.85 BARION FUNDING 0.25 12/20/2056 USD 6.79 BARION FUNDING 0.63 12/20/2056 GBP 16.17 BARION FUNDING 1.44 12/20/2056 GBP 29.02 BARION FUNDING 0.25 12/20/2056 USD 6.79 BES FINANCE LTD 4.5 #N/A N Ap EUR 76.55 BES FINANCE LTD 6.2 2/7/2035 EUR 62.36 CHINA MED TECH 4 8/15/2013 USD 67 CHINA PROPERTIES 9.13 5/4/2014 USD 69.5 DUBAI HLDNG COMM 6 2/1/2017 GBP 68.9 EGE HAINA FINANC 9.5 4/26/2017 USD 72 ESFG INTERNATION 5.75 #N/A N Ap EUR 77.08 FERTINITRO FIN 8.29 4/1/2020 USD 52 GOL FINANCE 8.75 #N/A N Ap USD 77 LDK SOLAR CO LTD 4.75 4/15/2013 USD 68.46 MALACHITE FDG 0.63 12/21/2056 EUR 22.71 MAZARIN FDG LTD 0.25 9/20/2068 USD 5 MAZARIN FDG LTD 0.25 9/20/2068 USD 5.06 MAZARIN FDG LTD 0.25 9/20/2068 USD 5 MAZARIN FDG LTD 0.1 9/20/2068 EUR 3.84 MAZARIN FDG LTD 1.44 9/20/2068 GBP 26.69 MAZARIN FDG LTD 0.63 9/20/2068 GBP 13.42 MAZARIN FDG LTD 0.25 9/20/2068 USD 5 MAZARIN FDG LTD 0.25 9/20/2068 USD 5 MAZARIN FDG LTD 0.25 9/20/2068 USD 5 MINERVA OVERSE 9.5 2/1/2017 USD 73.2 PANAMA CANAL RAI 7 11/1/2026 USD 71 PUBMASTER FIN 6.96 6/30/2028 GBP 54.04 REG DIV FUNDING 5.25 1/25/2036 USD 72.77 SHINSEI FIN CAYM 6.42 #N/A N Ap USD 50.23 SHINSEI FIN CAYM 6.42 #N/A N Ap USD 50.15 SHINSEI FINANCE 7.16 #N/A N Ap USD 45.13 SMFG PREFERRED 6.16 #N/A N Ap GBP 75.6 SUNAMER INST FND 6.15 10/14/2019 EUR 71.89 XL CAPITAL LTD 6.5 #N/A N Ap USD 59.5 ECUADOR REP OF ECUADOR 9.38 12/15/2015 USD 80.72 JAMAICA JAMAICA GOVT 8 3/15/2039 USD 69 JAMAICA GOVT 8.5 2/28/2036 USD 71.63 JAMAICA GOVT 13.38 4/27/2032 JMD 59.43 JAMAICA GOVT LRS 12.75 6/29/2022 JMD 60.48 JAMAICA GOVT LRS 16 6/13/2022 JMD 74.76 JAMAICA GOVT LRS 12.85 5/31/2022 JMD 61.02 JAMAICA GOVT LRS 15 11/15/2021 JMD 71.19 JAMAICA GOVT LRS 13.38 12/15/2021 JMD 63.99 JAMAICA GOVT LRS 7.5 10/6/2012 JMD 71.84 JAMAICA GOVT LRS 14 6/30/2021 JMD 67.42 JAMAICA GOVT LRS 16.25 5/22/2027 JMD 72.28 JAMAICA GOVT LRS 16.25 6/18/2027 JMD 72.38 JAMAICA GOVT LRS 14.4 8/3/2027 JMD 65.87 JAMAICA GOVT LRS 15.5 3/24/2028 JMD 68.97 JAMAICA GOVT LRS 16.25 7/26/2032 JMD 72.25 JAMAICA GOVT LRS 16.13 8/21/2032 JMD 73.7 JAMAICA GOVT LRS 16.25 8/26/2032 JMD 74.24 JAMAICA GOVT LRS 15 8/30/2032 JMD 68.56 JAMAICA GOVT LRS 15 9/6/2032 JMD 65.07 JAMAICA GOVT LRS 16 12/6/2032 JMD 71.07 JAMAICA GOVT LRS 13.58 12/15/2026 JMD 60.41 JAMAICA GOVT LRS 12.75 6/29/2022 JMD 60.5 JAMAICA GOVT LRS 16.5 6/14/2027 JMD 73.37 NEWLAND INT PROP 9.5 11/15/2014 USD 70.88 PUERTO RICO DORAL FINL CORP 7 4/26/2012 USD 39.75 DORAL FINL CORP 7.1 4/26/2017 USD 33 DORAL FINL CORP 7.15 4/26/2022 USD 26.88 DORAL FINL CORP 7.65 3/26/2016 USD 34.13 PUERTO RICO CONS 6.1 5/1/2012 USD 55.5 PUERTO RICO CONS 6.5 4/1/2016 USD 45 VENEZUELA PETROLEOS DE VEN 5.5 4/12/2037 USD 43.12 PETROLEOS DE VEN 5.25 4/12/2017 USD 53.75 PETROLEOS DE VEN 5.38 4/12/2027 USD 43.07 VENEZUELA 5.75 2/26/2016 USD 68.17 VENEZUELA 7 12/1/2018 USD 64.8 VENEZUELA 6 12/9/2020 USD 56.87 VENEZUELA 9 5/7/2023 USD 70.71 VENEZUELA 7.65 4/21/2025 USD 60.72 VENEZUELA 9.25 9/15/2027 USD 73.42 VENEZUELA 9.25 5/7/2028 USD 69.41 VENEZUELA 7 3/31/2038 USD 53.53 VENEZUELA 7 3/16/2015 EUR 70.33 VENEZUELA 7 3/16/2015 EUR 70.19 VENZOD - 189000 9.38 1/13/2034 USD 69.45 *********** 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 * * *