TCRLA_Public/090826.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

             Wednesday, August 26, 2009, Vol. 10, No. 168

                            Headlines

A N T I G U A  &  B A R B U D A

STANFORD INT'L: Owner to Remain in Jail Until Trial, Court Says
STANFORD INT'L: SFG's Ex-CIO Seeks Court Order on Legal Fees


A R G E N T I N A

APPLICATION SYSTEMS: Creditors' Proofs of Debt Due on October 7
BACONZ SA: Creditors' Proofs of Debt Due on November 2
EISENHARDT SA: Creditors' Proofs of Debt Due on October 8
HISTAP SA: Creditors' Proofs of Debt Due on November 13
MADERO TANGO: Creditors' Proofs of Debt Due on October 26

MALTERS SA: Creditors' Proofs of Debt Due on October 7
SEFRAMA SRL: Creditors' Proofs of Debt Due on October 29
SEGURIDAD PROSSER: Creditors' Proofs of Debt Due on September 21
* ARGENTINA: To Offer Swap for Short-Term Debt


B A R B A D O S

DACOSTA MANNING: To Rehire 17 Workers; Opens New Store


B E R M U D A

LEHMAN RE: Court Adjourns Recognition Hearing to September 15


B R A Z I L

BANCO PANAMERICANO: S&P Withdraws 'B+/B' Counterparty Rating
BANCO VOTORANTIM: Mulls 25% Private Banking Stafff Increase
COMPANHIA SIDERURGICA: CEO Sees Improving Ore Prices
GERDAU SA: Says Gap Between Brazil Steel Capacity & Demand Widened
GOL LINHAS: Files Registration Statement for Global Share Offering

* BRAZIL: Banks More Optimistic on Economic Growth Than Gov't


C A Y M A N  I S L A N D S

AIGAR, LDC: Creditors' Proofs of Debt Due on September 3
ASM FAR: Placed Under Voluntary Liquidation
CD INTERNATIONAL: Commences Wind-Up Proceedings
CITRON INVESTMENTS: Placed Under Voluntary Wind-Up
FARALLON RP: Commences Wind-Up Proceedings

FAYE CAPITAL: Placed Under Voluntary Liquidation
GALICIA PENSION: Creditors' Proofs of Debt Due on September 3
J.P. MORGAN: Placed Under Voluntary Liquidation
JORASSES LDC: Creditors' Proofs of Debt Due on September 3
KINSALE INVESTMENTS: Placed Under Voluntary Liquidation

MPII SPECIAL: Commences Wind-Up Proceedings
ROBINS FUNDING: Creditors' Proofs of Debt Due on September 14
SUNAPEE LDC: Creditors' Proofs of Debt Due on September 3
URALSIB PRIVATE: Creditors' Proofs of Debt Due on September 3
WESTPEAK EUROPE: Commences Wind-Up Proceedings


C O L O M B I A

ISAGEN SA: Management & Employees Seek to Buy Firm's 57.66% Stake


C O S T A  R I C A

* COSTA RICA: IMF Releases 1st Review of Stand-By Agreement


J A M A I C A

AIR JAMAICA: Detectives Continue Fraud Investigation
JUTC: Sees Fares Rollback Will Help Boost Revenues


M E X I C O

ASARCO LLC: Judge Schmidt Says Plans "Unfeasible" in Appeals Court
GRUMA SAB: Extends Currency Derivative Talks Deadline on Sept. 21


T R I N I D A D  &  T O B A G O

* TRINIDAD & TOBAGO: Financial Sector Woes Can Harm Economy


V E N E Z U E L A

MITSUBISHI MOTORS: Closes Venezuela Plant, 2000 Workers Affected
PETROLEOS DE VENEZUELA: Ecuador Unit Opens Gas Station in Quinto
PETROLEOS DE VENEZUELA: Ends Absorption of Workers in Zulia
* VENEZUELA: Considers Creating Four Exchange Rate


X X X X X X X X

READER'S DIGEST: Local Units Not Part of U.S. Bankr. Proceedings


                         - - - - -


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


STANFORD INT'L: Owner to Remain in Jail Until Trial, Court Says
---------------------------------------------------------------
A three-judge panel of the U.S. Court of Appeals in New Orleans
denied an appeal by Robert Allen Stanford, the financier accused
of orchestrating a multi-billion Ponzi scheme, to be released on
bail so he can assist in defending investment fraud charges,
Laurel Brubaker Calkins and Andrew M. Harris at Bloomberg News
reports.  The report relates that the court said Mr. Stanford must
remain jailed until trial, which could be a year away.

As reported in the Troubled Company Reporter-Latin America on
July 14, 2009, Caribbean360.com reports said defense lawyer Dick
DeGuerin's second attempt to obtain bail for Mr. Stanford --
founder of Stanford International Bank Limited –- was not granted
by Judge Hittner.  The report related Judge Hittner denied a
motion filed by Mr. DeGuerin for a review of the order he made on
June 30, revoking the US$500,000 bail given by U.S. Magistrate
Judge Frances Stacy.  Judge Hittner previously considered Mr.
Stanford a flight risk and ruled that the defendant will remain in
jail to await his August 25 trial.  The report noted Mr. DeGuerin
has appealed to the U.S. Court of Appeals in New Orleans in
another attempt to secure his client's release.  Mr. DeGuerin, as
cited by the report, claimed in his appeal that the U.S.
government had misrepresented key facts on Mr. Allen's ability and
motive to flee.  According to the report, Mr. DeGuerin said that
in addition to the fact that his client, who has dual U.S. and
Antiguan citizenship, has surrendered his three passports, he is
now "penniless" as a result of the freeze on his assets.

                  About Stanford International

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

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

The U.S. Securities and Exchange Commission, on Feb. 17, charged
before the U.S. District Court in Dallas, Texas, Mr. Stanford and
three of his companies for orchestrating a fraudulent, multi-
billion dollar investment scheme centering on an US$8 billion
Certificate of Deposit program.

A criminal case was pursued against him in June before the U.S.
District Court in Houston, Texas.  Mr. Stanford pleaded not guilty
to 21 charges of multi-billion dollar fraud, money-laundering and
obstruction of justice.  Assistant Attorney General Lanny Breuer,
as cited by Agence France-Presse News, said in a 57-page
indictment that Mr. Stanford could face up to 250 years in prison
if convicted on all charges.  Mr. Stanford surrendered to U.S.
authorities after a warrant was issued for his arrest on the
criminal charges.

The criminal case is U.S. v. Stanford, H-09-342, U.S. District
Court, Southern District of Texas (Houston). The civil case is SEC
v. Stanford International Bank, 3:09-cv-00298-N, U.S. District
Court, Northern District of Texas (Dallas).


STANFORD INT'L: SFG's Ex-CIO Seeks Court Order on Legal Fees
------------------------------------------------------------
Laurel Brubaker Calvins and Andrew Harris at Bloomberg News report
that Laura Pendergest-Holt, former Stanford Financial Group Chief
Investment Officer, asked U.S. District Judge David Hittner to
order the company’s insurer to pay her legal bills or delay a
criminal prosecution accusing her of helping Robert Allen Stanford
in a multi-billion Ponzi scheme.

According to the report, Ms. Pendergest-Holt said Judge Hittner
should halt the criminal case against her and Mr. Stanford until a
judge in Dallas, hearing a parallel Securities and Exchange
Commission lawsuit against Stanford executives, determines who is
entitled to proceeds from the insurance policy.  "Clearly, they
aren’t listening to us," the report quoted Dan Cogdell,
Pendergest-Holt’s attorney, as saying.  The report relates Mr.
Cogdell was referring to to government lawyers and Stanford
Financial Group court-appointed receiver, Ralph Janvey.

As reported in the Troubled Company Reporter-Latin America on
May 18, 2009, Reuters said that Ms. Pendergest-Holt pleaded not
guilty before U.S. Magistrate Judge Mary Milloy in Houston
regarding the charges filed against her.  According to the report,
Assistant Attorney General of the Criminal Division Lanny A.
Breuer and acting U.S. Attorney for the Southern District of Texas
Tim Johnson disclosed that a federal grand jury in Houston
returned a two-count indictment charging Ms. Pendergest-Holt with
conspiring to obstruct a U.S. Securities and Exchange Commission
(SEC) proceeding investigating SFG, as well as a substantive count
of obstructing the SEC proceeding.  Ms. Pendergest-Holt has been
free on a US$300,000 bond since being charged with obstruction in
a criminal complaint issued from the Northern District of Texas on
Feb. 26, 2009.

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


APPLICATION SYSTEMS: Creditors' Proofs of Debt Due on October 7
---------------------------------------------------------------
Ricardo Adrogue, the court-appointed trustee for Application
Systems SRL's bankruptcy proceedings, will be verifying creditors'
proofs of claim until October 7, 2009.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 7, 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.

The Trustee can be reached at:

          Ricardo Adrogue
          Bouchard 468
          Argentina


BACONZ SA: Creditors' Proofs of Debt Due on November 2
------------------------------------------------------
Nestor Leonidas Zega, the court-appointed trustee for Baconz SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until November 2, 2009.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 6 in Buenos Aires, with the assistance of Clerk
No. 11, 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.

The Trustee can be reached at:

          Nestor Leonidas Zega
          Teniente General Juan Domingo Peron 1493
          Argentina


EISENHARDT SA: Creditors' Proofs of Debt Due on October 8
---------------------------------------------------------
Arturo Luciano Melegari, the court-appointed trustee for
Eisenhardt SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until October 8, 2009.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 37, 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.

The Trustee can be reached at:

          Arturo Luciano Melegari
          Bartolome Mitre 1131
          Argentina


HISTAP SA: Creditors' Proofs of Debt Due on November 13
-------------------------------------------------------
Estudio Bermudez, the court-appointed trustee for Histap SA's
reorganization proceedings, will be verifying creditors' proofs of
claim until November 13, 2009.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 6 in Buenos Aires, with the assistance of Clerk
No. 11, 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.

Creditors will vote to ratify the completed settlement plan
during the assembly on August 16, 2010.

The Trustee can be reached at:

          Estudio Bermudez
          Dell'Ali, Molin
          Argentina


MADERO TANGO: Creditors' Proofs of Debt Due on October 26
---------------------------------------------------------
Estudio Conti y Sanchez, the court-appointed trustee for Madero
Tango S.A.'s reorganization proceedings, will be verifying
creditors' proofs of claim until October 26, 2009.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 13, 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.

Creditors will vote to ratify the completed settlement plan
during the assembly on May 4, 2010.

The Trustee can be reached at:

          Estudio Conti y Sanchez
          Av. Corrientes 1965
          Argentina


MALTERS SA: Creditors' Proofs of Debt Due on October 7
------------------------------------------------------
The court-appointed trustee for Malters S.A.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
October 7, 2009.


SEFRAMA SRL: Creditors' Proofs of Debt Due on October 29
--------------------------------------------------------
Jose Brito, the court-appointed trustee for Seframa S.R.L.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until October 29, 2009.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of Clerk
No. 16, 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.

The Trustee can be reached at:

          Jose Brito
          Av. Callao 420
          Argentina


SEGURIDAD PROSSER: Creditors' Proofs of Debt Due on September 21
----------------------------------------------------------------
The court-appointed trustee for Seguridad Prosser S.A.'s
reorganization proceedings will be verifying creditors' proofs of
claim until September 21, 2009.

The trustee will present the validated claims in court as
individual reports on November 12, 2009.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.

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

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
December 29, 2009.

Creditors will vote to ratify the completed settlement plan
during the assembly on April 27, 2010.


* ARGENTINA: To Offer Swap for Short-Term Debt
----------------------------------------------
Argentina will offer to swap US$2.3 billion of short-term debt
linked to inflation for bonds due in 2014 as it seeks to extend
maturities after commodity export slumped revenue, Drew Benson and
Bill Faries at Bloomberg News report, citing Economy Minister
Amado Boudou.  “With this measure we are taking another step for
Argentina to return to financial markets,” the report quoted Mr.
Boudou as saying.  “The swap also aims to strengthen Argentina’s
financial position next year with respect to the burden of the
debt on the public accounts,” Mr. Boudou added.

According to the report, lawsuits from some investors who rejected
Argentina’s 2005 debt restructuring have prevented the country
from selling bonds in international markets.  The report relates
economists and politicians have questioned the inflation data the
bonds the government plans to swap are tied to, since former
President Nestor Kirchner began changing personnel at the National
Statistics Institute in January 2007.

The report notes Carola Sandy, an economist with Credit Suisse
Group AG in New York, said Argentina’s borrowing needs will total
US$8.24 billion next year, down from US$10.73 billion this year.

The bond swap will be Argentina’s second this year as officials
look to extend maturities after the drop in commodity exports
curbed tax revenue and swelled the government’s financing needs,
the report says.  Bloomberg News recalls that in January,
Argentina reached an agreement with creditors to extend maturities
on US$4 billion of debt known as “guaranteed loans.”

Bloomberg News says Argentina’s government will open the
inflation-linked bond swap offer this week.  The new securities
will pay 275 basis points above the central bank’s interbank rate(
Badlar), the ministry said in a presentation released by e-mailed
obtained by the news agency.

The government, the report adds, will accept bids on a set price
offer through the Buenos Aires-based Open Electronic Market, and
will also reopen a swap for the guaranteed loans with the same
conditions offered in January.

                           *     *     *

As reported by the Troubled Company Reporter - Latin America on
December 23, 2008, Fitch Ratings downgraded the Republic of
Argentina's long-term local currency issuer default rating to
'B-'; country ceiling to 'B'; and performing bonds in foreign and
local currency governed by Argentine law to 'B-/RR4'.  The rating
outlook on the local currency IDR is Stable.

In addition, Fitch affirmed the country's long-term foreign
currency IDR remains in Restricted Default ('RD'); short-term IDR
at 'B'; performing bonds in foreign currency governed by foreign
law at 'B-/RR4'; defaulted senior unsecured notes at 'CC/RR4'; and
defaulted collateralized Brady bonds at 'CCC-/RR3'.


===============
B A R B A D O S
===============


DACOSTA MANNING: To Rehire 17 Workers; Opens New Store
------------------------------------------------------
Seventeen of the workers who lost their jobs when Dacosta Mannings
closed three of its locations will be rehired when the company
opens its new Cave Shepherd location, CBC.bb News reports.

According to the report, the workers will make up a staff
compliment of 20 at the store.  The report relates Operations
Manager Wynn Jean-Marie said the store is 90% complete.

The store's grand opening is scheduled for August 31.

Dacosta Mannings Inc. -- http://www.dacostamannings.com-- is one
of the leading retailers in Barbados offering a diverse range of
goods and services ranging from Lumber and Builders Hardware, Home
Appliances and Furniture, Consumer Electronics, Horticulture,
Household items to Shipping Agency to the provision of services
such as the LP bottle gas distribution.  Dacosta Mannings Inc.
formed in October 1995 as a result of a merger of DaCosta Ltd.,
and Mannings, Wilkinson & Challenor, boasts of being a company
with a diverse range of goods and services.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 28, 2009, Trinidad Express said Barbados-based Dacosta
Mannings Inc. will make 81 jobs redundant by the end of July.  The
report related 20 employees applied for voluntary separation and
those applications were accepted.  According to the report,
Dacosta Mannings is closing its Speightstown, St Peter store and
Warrens, St Michael auto centre in Barbados.  The report related
that the company's board blamed "dwindling customer activity" at
the Speightstown hardware store for the decision to close the
outlet effective July 31.  The Express pointed out that heightened
costs, the saturated nature of the lumber market and lower demand
in construction and capital works projects were also listed as
factors influencing the decision to quit the lumber business.
The company, the report added, also announced the closure of the
DMI Auto Centre in Warrens.


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


LEHMAN RE: Court Adjourns Recognition Hearing to September 15
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
has adjourned the hearing on recognition of the winding up of
Lehman Re Ltd. commenced under the Bermuda Companies Act 1981
before the Supreme Court of Bermuda, to 2:00 p.m. on September 15,
2009.  The recognition hearing was previously scheduled for
10:00 a.m. on September 9, 2009.

As reported in the TCR on August 18, 2009, Peter C.B. Mitchell and
D. Geoffrey Hunter, as provisional liquidators of the Company,
filed on August 6, 2009, a petition pursuant to Chapter 15 of the
U.S. Bankruptcy Code with the Bankruptcy Court seeking recognition
of the winding-up of the Company commenced under the Bermuda
Companies Act 1981 before the Supreme Court of Bermuda as a
"foreign main proceeding," or as a "foreign nonmain proceeding" as
defined in Section 1502(4) and 1502(5) of the Bankruptcy Code.

Copies of the petition and related documents are available to
parties in interest on the Bankruptcy Court's Electronic Case
Filing System, which can be accessed from the Bankruptcy Court's
Web site at http://www.nysb.uscourts.govor upon written request
to the petitioners' United States counsel (including by facsimile
or e-mail) addressed to:

     Cadwalder, Wickersham & Taft LLP
     One World Financial Center
     New York, NY 10281
     Fax: (212) 504-6666
     Attn: Betty Comerro
           Betty.Comerro@cwt.com

Any party in interest wishing to submit a response or objection to
the petition or the relief requested by the petitioners must do so
in accordance with the Bankruptcy Code and the Federal Rules of
Bankruptcy Procedure, in writing and setting forth the basis
therefor, which response or objection must be filed electronically
with the Court by registered users of the Court's electronic case
filing system in accordance with General Order M-242 (a copy of
which may be viewed on the Court's Web site) and by all other
parties in interest on a 3.5 inch disc, preferably in Portable
Document Format (PDF), Word Perfect or any other Windows-based
word processing format.  A hard copy of any response or objection
must be sent to the Chambers of the Honorable James M. Peck,
United States Bankruptcy Judge and served upon the petitioners'
United States counsel, so as to be received no later than
4:00 p.m. on September 1, 2009.

In addition to filing a written objection, all parties in interest
opposed to the petition must appear at the hearing at the time and
place set forth above.

Lehman Re Ltd. is a Bermuda-based insurance unit of Lehman
Brothers Holdings Inc.  Lehman Re's petition for liqudation was
filed with the Supreme Court of Bermuda on September 23, 2008.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
dollars plus the retention of most of employees.  Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

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


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


BANCO PANAMERICANO: S&P Withdraws 'B+/B' Counterparty Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said that it withdrew its
'B+/B' global scale and 'brBBB+/brA-3' Brazil national scale
counterparty credit ratings on Banco Panamericano S.A. at the
company's request.

At the time of the withdrawal, the outlook was negative.


BANCO VOTORANTIM: Mulls 25% Private Banking Stafff Increase
-----------------------------------------------------------
Flavia Lima and Telma Marotto at Bloomberg News report that Banco
Votorantim SA’s asset management unit plans to boost its private
banking staff by 25% this year to lure wealthy investors amid
lower interest rates and economic growth in Brazil.

The bank may hire another 10 people to work with its 40 private-
banking employees, Rogerio Santos, the unit’s superintendent, told
Bloomberg in a television interview.  “Brazilian culture is one of
very high interest rates,” the report quoted Mr. Santos as saying.
“To gain more, investors will have to take more risks,” Mr. Santos
added.

According to the report, monetary policy makers in Brazil slashed
the country’s benchmark lending rate for a fifth straight meeting
last month to a record-low 8.75%, and Mr. Santos said the rate may
fall to 8.5 percent by year-end.  The report relates that Banco
Votorantim is looking to attract clients from among the 140,000
individuals in Brazil with more than US$1 million to invest.

Mr. Santos, the report notes, said that the bank may end the year
with BRL11 billion (US$5.9 billion) under management in its
private banking arm, up from BRL8 billion at the end of 2008.

                       About Banco Votorantim

Banco Votorantim S.A., together with its subsidiaries, operates as
a multiple bank with commercial, credit, financing, and investment
portfolios in Brazil.  It offers commercial and investment banking
services, consumer finance, asset management, and securities
brokerage services.  The company engages in financing for the
infrastructure sector, including projects involving electric power
generation, transmission, and distribution; and providing private
banking services, such as wealth management and estate planning
advisory services with a focus on risk control, investment
performance, and wealth preservation and expansion.  Banco
Votorantim also engages in the negotiation and distribution of
securities for third parties, and administration of investment
funds.  The company was founded in 1988 and is headquartered in
Sao Paulo, Brazil.  Banco Votorantim S.A. is a part of the
Votorantim Group

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 9, 2009, Moody's Investors Service placed on review for
possible upgrade of Banco Votorantim S.A.'s Ba2 long-term foreign
currency deposit rating and Baa3 long-term foreign currency bond
rating.


COMPANHIA SIDERURGICA: CEO Sees Improving Ore Prices
----------------------------------------------------
Companhia Siderurgica Nacional S.A. President Benjamin Steinbruch
said that the iron ore market is improving, John Kolodziejski at
Dow Jones Newswires reports, citing Estado news agency.  The
report relates Mr. Steinbruch noted that in the last few months,
spot prices have passed US$100 per metric ton, well above the
US$60 seen in March.

According to the report, Mr. Steinbruch said CSN aims to produce
100 million tons a year of iron ore from its Casa de Pedra mine
and other associated mines by 2012.  The report relates that Mr.
Steinbruch previously been reported as putting the target at 90
million tons.

The Casa de Pedra mine is operated by Namisa S.A., CSN's mining
subsidiary.

As reported in the Troubled Company Reporter-Latin America on
August 25, 2009, Dow Jones Newswires said Namisa S.A., a 60%
owned-subsidiary of CSN, expects to sell 14.5 million metric tons
of iron ore this year, with the total, around nine million tons
will come from Casa de Pedra mining complex, and the rest from
independent miners also within Minas Gerais State.  According to
the report, Namisa is investing BRL4 billion to raise iron ore
output to 39 million tons in 2013.  The report related that Namisa
plans to operate two 6.5 million ton-a-year pellet plants at the
Casa de Pedra mine by 2012, which will raise the price of the ore.

Namisa is 60% owned by CSN.  A consortium of Japanese and Korean
mills -- Itochu Corp., Nippon Steel Corp., JFE Steel Corp., Posco,
Sumitomo Metal Industries, Kobe Steel and Nisshin Steel Co. -–
paid US$3.12 billion for the other 40% in mid-October.

                             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+.


GERDAU SA: Says Gap Between Brazil Steel Capacity & Demand Widened
------------------------------------------------------------------
Diana Kinch at Bloomberg News reports that Gerdau SA said the gap
between Brazilian steel production capacity and demand is
widening.  The report relates that Gerdau Chief Executive Officer
Andre Gerdau Johannpeter said Brazilian output capacity of 41.8
million metric tons is more than twice forecasted demand of 18.7
million tons this year.

According to the report, the capacity is expected to rise to 48.4
million tons in 2010.  “Overcapacity is a new scenario in Brazil,”
the report quoted Gerdau Johannpeter as saying.

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.


GOL LINHAS: Files Registration Statement for Global Share Offering
-----------------------------------------------------------------
GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A
said in a news statement it has filed a registration statement
with the U.S. Securities and Exchange Commission for a proposed
global offering of preferred shares, including preferred shares in
the form of American depositary shares, by the company and ASAS
Investment Fund, the company’s controlling shareholder.  The
company expects the gross proceeds from the primary portion of the
global offering to be between R$550 million and R$650 million,
depending on market conditions.

The offering of preferred shares in Brazil will be registered with
the Comissao de Valores Mobiliários, the Brazilian securities
commission.  ASAS Investment Fund will invest the entirety of the
proceeds received from the sale of preferred shares, including in
the form of ADSs, in common shares newly issued by the company.

The company intends to use the proceeds from the global offering
and the concurrent subscription of common shares by ASAS
Investment Fund primarily for general corporate purposes and to
strengthen its balance sheet, particularly its cash and cash
equivalents position.  The international offering will be led by
BofA Merrill Lynch, Banco Itau BBA, Morgan Stanley and Bradesco
BBI, as joint bookrunners.  BB Securities Limited is acting as
placement agent outside the United States.

A full-text copy of the registration statement is available at no
charge at http://ResearchArchives.com/t/s?430f

                         About GOL Linhas

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

                          *     *     *

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


* BRAZIL: Banks More Optimistic on Economic Growth Than Gov't
-------------------------------------------------------------
Brazilian private banks' economic forecasts are unexpectedly more
optimistic than those made by the government, Xinua News reports.
The report relates that three top banks -- Bradesco, Itau-Unibanco
and Rio Bravo Inversions respectively forecast that the GDP would
grow 2.1%, 1.8% and 1.7 to 2% in the second quarter.

However, the report notes Finance Minister Guido Mantega estimated
that the GDP would grow 1.5 to 1.7% in the second quarter from a
year earlier, while the National Economic and Social Development
Bank believes the full-year growth would be just 0.7%.

According to the report, Braulio Borges, economist and the head of
LCA, one of the largest economic consulting firms in Brazil, said
new industrial employment shows the sector is recovering from the
international economic crisis.  The report relates Mr. Borges
forecast a 2% drop in the Brazilian economy during the first half
of this year, followed by a 2.5% rebound in the second half.  Mr.
Borges estimated a 1.9% increase in the second quarter, the report
adds.

The report notes that Flavio Castelo Branco, of the National
Industrial Federation, is less optimistic, saying the second
quarter would show negative figures as July's GDP fell 4.8% from
last October, which was before Brazil plunged into economic
recession.

All Brazilian banks, Xinhua News points out, agree that investment
would rise more slowly than GDP, which might harm the whole-year
growth, even though BNDES was offering low-interest loans to
investors.

                           *     *     *

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


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

The company's liquidator is:

          Raymond Long Sing Tang
          Hang Lung Centre, 22nd Floor
          2-20 Paterson Street, Causeway Bay
          Hong Kong


ASM FAR: Placed Under Voluntary Liquidation
-------------------------------------------
On June 29, 2009, the sole shareholder of ASM Far East Marketing
Limited resolved to voluntarily liquidate the company's business.

The company's liquidator is:

          Peter D. Anderson
          c/o Graham Robinson
          P.O. Box 897, One Capital Place, George Town
          Grand Cayman KY1-1103, Cayman Islands
          Telephone: (345) 949 7576
          Facsimile: (345) 949 8295


CD INTERNATIONAL: Commences Wind-Up Proceedings
-----------------------------------------------
On July 20, 2009, the sole shareholder of CD International Ltd.
passed a resolution that voluntarily winds up the company's
operations.

The company's liquidator is:

          Admiral Administration Ltd.
          Admiral Financial Center
          90 Fort Street, P.O. Box 32021
          Grand Cayman KY1-1208


CITRON INVESTMENTS: Placed Under Voluntary Wind-Up
--------------------------------------------------
On July 1, 2009, the sole shareholder of Citron Investments
Limited resolved to voluntarily wind up the company's operations.

The company's liquidator is:

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


FARALLON RP: Commences Wind-Up Proceedings
------------------------------------------
On July 17, 2009, the sole shareholder of Farallon RP Investors
Limited passed a resolution that voluntarily liquidates the
company's business.

The company's liquidator is:

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


FAYE CAPITAL: Placed Under Voluntary Liquidation
------------------------------------------------
On June 23, 2009, the sole shareholder of Faye Capital (Cayman)
Inc. resolved to voluntarily wind up the company's operations.

The company's liquidator is:

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


GALICIA PENSION: Creditors' Proofs of Debt Due on September 3
-------------------------------------------------------------
The creditors of Galicia Pension Fund Ltd. are required to file
their proofs of debt by September 3, 2009, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on July 6, 2009.

The company's liquidator is:

          Guillermo Juan Pando
          c/o Kim Charaman
          Close Brothers (Cayman) Limited
          Harbour Place, Fourth Floor
          P.O. Box 1034, Grand Cayman, KY1-1102
          Telephone: (345) 949 8455
          Facsimile: (345) 949 8499


J.P. MORGAN: Placed Under Voluntary Liquidation
-----------------------------------------------
On July 7, 2009, a resolution was passed that voluntarily
liquidates the business of ASM Far East Marketing Limited.

The company's liquidator is:

          Rose Burke
          JPMorgan Chase & Co.
          345 Park Avenue, 5th Floor
          New York, New York 10154-1002


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

The company's liquidator is:

          Raymond Long Sing Tang
          Hang Lung Centre, 22nd Floor
          2-20 Paterson Street, Causeway Bay
          Hong Kong


KINSALE INVESTMENTS: Placed Under Voluntary Liquidation
-------------------------------------------------------
On June 20, 2009, the sole shareholder of Kinsale Investments
Limited passed a resolution that voluntarily liquidates the
company's business.

The company's liquidator is:

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


MPII SPECIAL: Commences Wind-Up Proceedings
-------------------------------------------
On July 20, 2009, the sole shareholder of MPII Special Cayman Ltd
passed a resolution that voluntarily liquidates the company's
business.

The company's liquidator is:

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


ROBINS FUNDING: Creditors' Proofs of Debt Due on September 14
-------------------------------------------------------------
The creditors of Robins Funding Company are required to file their
proofs of debt by September 14, 2009, to be included in the
company's dividend distribution.


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

The company's liquidator is:

          Raymond Long Sing Tang
          Hang Lung Centre, 22nd Floor
          2-20 Paterson Street, Causeway Bay
          Hong Kong


URALSIB PRIVATE: Creditors' Proofs of Debt Due on September 3
-------------------------------------------------------------
The creditors of Uralsib Private Equity Fund Ltd. are required to
file their proofs of debt by September 3, 2009, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on July 13, 2009.

The company's liquidator is:


          DMS Corporate Services Ltd.
          c/o Bernadette Bailey-Lewis
          dms Corporate Services Ltd.
          dms House, 2nd Floor
          P.O. Box 1344, Grand Cayman KY1-1108
          Telephone: (345) 946 7665
          Facsimile: (345) 946 7666


WESTPEAK EUROPE: Commences Wind-Up Proceedings
----------------------------------------------
On July 17, 2009, the sole shareholder of Westpeak Europe Market
Neutral Fund, Ltd. passed a resolution that voluntarily liquidates
the company's business.

The company's liquidator is:

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


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


ISAGEN SA: Management & Employees Seek to Buy Firm's 57.66% Stake
-----------------------------------------------------------------
Isagen SA's management and employees are interested in acquiring
the 57.66% stake in the company through a management buy out,
LatinFrance reports.  The report relates that based on the closing
price of Isagen’s shares August 24, the stake is worth US$1.8
billion.

According to the report, a banker close to the negotiations is
skeptical about the workers’ chances.  “I find it very difficult
for them to do.  They could buy up shares, but I doubt they will
be able to buy the entire stake.  This is a huge company.  Even
for a multinational it would not be an easy acquisition to make,”
the report quoted the unnamed banker sa saying.  The report
relates that the employee group, called “Duenos de Isagen,” values
the stake at around US$1.5 billion and they intend to get
financing from private equity groups, which is unlikely, the
banker added.

LatinFrance notes that the banker also said that Colinversiones,
rumored to be a possible bidder, might be able to consume the
government’s stake in Isagen, as the asset is in line with its
core business of power plants and energy generation.

                         About Isagen SA

Isagen SA is a Colombia-based company primarily engaged in the
energy sector. Its activities comprise the electric power
generation and distribution, as well as the operation of coal,
steam and gas distribution networks.  The company has a total
installed capacity of 2,131 megawatts and its facilities include
four hydroelectric plants: Central San Carlos, Central Jaguas,
Central Calderas and Central Miel I, and one combined-cycle
thermal power station: Central Termocentro.  The company is also
involved in such expansion projects as Proyecto Guarino, Proyecto
Manso, Proyecto Hidroelectrico del Rio Amoya and Proyecto
Hidroelectrico Sogamoso.  Additionally, the Company holds a
minority interests in Gensa SA ESP and Electricaribe SA ESP.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 1, 2009, Fitch Ratings has downgraded ISAGEN's local currency
Issuer Default Rating to 'BB+' from 'BBB-' and has affirmed the
company's foreign currency IDR at 'BB+'.  The Rating Outlook is
Stable.


==================
C O S T A  R I C A
==================


* COSTA RICA: IMF Releases 1st Review of Stand-By Agreement
-----------------------------------------------------------
A staff team from the International Monetary Fund visited Costa
Rica on August 10-21, 2009 to conduct the 2009 Article IV
consultation and the first review of the Stand-By Arrangement
approved last April.  The mission met with Minister of Finance
Jenny Phillips; Central Bank President Francisco de Paula
Gutierrez; other government officials, and representatives of the
private sector and the academia.

After the conclusion of the discussions, Mr. Andreas Bauer, the
IMF mission chief for Costa Rica, made the following statement:

“The Costa Rican economy has withstood the impact of the global
economic and financial crisis relatively well.  The strategy to
shield the economy from external shocks through fiscal stimulus
and the mobilization of contingent external financing has helped
preserve confidence and financial stability, and mitigated the
decline of the economy.

“Near term prospects have improved. Recent signs of a turnaround
in economic activity and somewhat more favorable perspectives for
external demand point to a gradual recovery of the Costa Rican
economy going forward.  The mission now expects real GDP to
decline by 1.5% in 2009, before returning to positive growth of
2.3 percent in 2010.  Inflation should continue to decline,
reaching 5% by end-year.

“The external position has evolved favorably.  During the first
half of 2009, the external current account deficit was almost
balanced and external short-term debt declined as banks and
corporations repaid credit lines.  Net international reserves have
increased slightly since end-December 2008 and will be further
supplemented in the coming weeks by an allocation of 132.8 million
SDRs (equivalent to about US$205 million). 1 In addition, the
mission’s analysis suggests that the current level of the real
effective exchange rate is broadly in equilibrium.

“Performance under the Stand-By Arrangement has been commendable.
The authorities have met all quantitative performance criteria and
structural benchmarks for the first program review.  However,
lower growth and inflation will generate a revenue shortfall
compared to the original program projections for the central
government.  The authorities and the mission have agreed to pass
on part of the revenue shortfall to the deficit of 2009, which is
now expected to reach 4.1% of GDP.  This will allow to protect
higher social spending and support domestic demand, while keeping
the increases in the domestic borrowing requirement and the debt-
to-GDP ratio within reasonable margins.

“The medium-term prospects for the Costa Rican economy remain
generally promising.  Strong institutions and higher public
investments in human and physical capital should provide a solid
basis for the resumption of high, well-balanced economic growth.
A key objective for the authorities should be to consolidate
recent gains in domestic and external stability, boost the
credibility of fiscal and monetary policies, and further
strengthen the economy’s resilience to external shocks.

“After large expenditure increases in 2008-10, which are providing
countercyclical support to domestic demand, the fiscal deficit
will need to be reduced to contain vulnerabilities and allow for a
gradual reduction in the debt burden.  Achieving this—while
maintaining higher levels of social spending and investment—will
require a tax reform to increase revenues by at least 2% of GDP.
Fostering an early consensus on the need to increase revenues
would be desirable to ensure a swift debate and passage of tax
reform.

“With inflation at historical lows, the central bank has an
opportunity to achieve price stability faster than previously
expected. The mission supports the gradual increase in exchange
rate flexibility and transition to an inflation targeting
framework that the Central Bank of Costa Rica is pursuing.  During
this transition, the room for additional interest rate cuts will
depend on further declines in inflation and devaluation
expectations.  To support this process, the mission encourages the
Central Bank of Costa Rica to clarify its role in the foreign
exchange market and streamline its liquidity instruments. The
mission also notes that achieving price stability will require a
strengthening of the Central Bank’s balance sheet through
recapitalization.

“The banking sector remains sound.  The authorities should
continue to monitor developments closely and implement their well-
focused agenda to strengthen supervision and the financial sector
safety net.  In this context, the mission welcomes the SUGEF’s
ambitious strategic plan to implement risk-based supervision and
urges swift approval of the law to establish consolidated
supervision in line with best international practices.  To further
strengthen market discipline, legal provisions that prohibit the
publication of certain prudential indicators for individual banks
(e.g., the risk-adjusted capital asset ratio) should be removed.

“The mission expects that the IMF Executive Board will conclude
Costa Rica’s 2009 Article IV consultation and the first review of
the Stand-By Arrangement by end-September.  The authorities have
indicated that they will continue to treat the Stand-By
Arrangement as precautionary.”

                           *     *     *

As of July 28, 2009, the country continues to carry Moody's Ba1
foreign currency rating with stable outlook.


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


AIR JAMAICA: Detectives Continue Fraud Investigation
----------------------------------------------------
Fraud squad detectives are still continuing their work in locating
the perpetrator in the fraudulent transfer of some of Air
Jamaica's JM$70 million funds, even after five months after the
company disclosed the incident, Gleaner Power 106 News reports.
The report relates that it was implicated that a junior employee
transferred the fund to an overseas account.

According to the report, investigators also believed that the
implicated employee had taken an Air Jamaica flight to an oversees
destination, a month before the fraud was discovered.

Head of the Organized Crime Investigation Division, Superintendent
Fitz Bailey told the news agency that detectives are still
actively pursuing the case and searching for the employee.

The report relates that the fraudulent transfer is being
investigated by the airline’s Internal Security and Audit
Departments, as well as the Fraud Squad, external auditors and
international authorities.

                         About Air Jamaica

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

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, Standard & Poor's Ratings Services said that it
lowered its foreign currency corporate credit rating on Air
Jamaica Ltd. to 'CCC+' from 'B-'.  The outlook is negative.  The
rating action followed S&P's recent lowering of the long-term
sovereign credit rating on Jamaica (CCC+/Negative/C).


JUTC: Sees Fares Rollback Will Help Boost Revenues
--------------------------------------------------
Jamaica Urban Transit Company expects that roll back in some bus
fares will result in increased revenues for the company,
RadioJamaica reports.  The report relates that it reduced the
fares in light of the downturn in the economy and the inability of
some commuters to afford some of its services.

According to the report, Reginald Allen, the JUTC's Corporate
Communications Manager, said the decrease in fares should result
in more commuters taking the JUTC's premium and express services.
"This is in solidarity with the commuting public in respect of the
economic challenges and in now in recognition of the personal
challenges of the commuters at this point because thy have
utilized our service and in having rolled out all the new buses,
we want more and more persons to enjoy the services," the report
quoted Mr. Allen as saying.

                           About JUTC

Jamaica Urban Transit Company (JUTC) was established in 1998 to
provide a centrally managed state-of-the-art public bus service.
The government invested US$6 billion aiming to have an efficient
transport system and for the Jamaican people.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2009, RadioJamaica said JUTC has defaulted on loan
obligations with RBTT Bank and Petrocaribe Development Fund, among
others, due to cash flow problems.

The Ministry of Information, as cited by Radio Jamaica, stated
that the JUTC operates an overdraft facility of US$520 million at
the National Commercial Bank which expired in February.  The
report noted that the Ministry said this facility is consistently
utilised at the upper limit and, on occasions, exceeds the limit
giving rise to the imposition of penalty charges above 43%.


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


ASARCO LLC: Judge Schmidt Says Plans "Unfeasible" in Appeals Court
------------------------------------------------------------------
According to Steven Church at Bloomberg, U.S. Bankruptcy Judge
Richard Schmidt said that Asarco LLC's reorganization may fail
should ASARCO LLC and Grupo Mexico, which have submitted competing
plans, carry their battle to a U.S. appeals court.  Both of the
competing plans would be "unfeasible" should the loser persuade an
appeals court to delay Asarco's proposed exit from bankruptcy,
Judge Schmidt said.

As reported by the Troubled Company Reporter, 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 backed by
ASARCO LLC, Sterlite would guarantee to pay unsecured debts of
Asarco LLC that are ultimately considered legitimate by Judge
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 plans 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
aid.

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)


GRUMA SAB: Extends Currency Derivative Talks Deadline on Sept. 21
-----------------------------------------------------------------
Andres R. Martinez at Bloomberg News reports that Gruma, S.A.B. de
C.V. said creditors agreed to extend for a third time negotiations
over loans to cover derivatives losses.  The report relates that
the company said talks will be extended by almost four weeks to
September 21.

As reported in the Troubled Company Reporter-Latin America on
July 29, 2009, Bloomberg News noted that Gruma SAB said it has
extended to August 24 the deadline for completing debt
negotiations with counterparties of US$727 million in derivatives
trades.  The report related that the company had previously asked
banks for the same extension talks dated July 24.  Anthony Harrup
at Dow Jones Newswires reported that the agreements seek to swap
the derivatives debts into a series of medium-and long-term loans,
which include accords to exchange:

   -- US$13.9 million in derivatives liabilities with
      the Royal Bank of Scotland Group PLC,

   -- US$22.9 million with Standard Chartered Bank
      PLC (SCZ.ZM),

   -- US$21.5 million with Barclays PLC for three-year
      loans, and

   -- another to swap US$668.3 million in currency losses
      with Credit Suisse Group, Deutsche Bank AG and
      JPMorgan Chase & Co. for a 7.5-year loan.

Reuters added that the company, citing a statement to the Mexico
Stock Exchange, said Gruma SAB needs to successfully refinance a
5-year revolving credit line with Bancomer and a 3.4 billion-peso
loan from government export bank Bancomext in order to sign on to
a long-term payment plan.

A TCRLA report on July 7, 2009, citing Bloomberg News, recalled
that Gruma SAB expects to reach an agreement with banks this month
on US$668.3 million of loans needed to cover derivatives losses
and avoid bankruptcy.  According to the report, the company said
in a U.S. Regulatory filing that it may be forced to file for
bankruptcy because it does "not currently have sufficient
liquidity."  The report related the company has a July 23 deadline
to reach a loan accord with creditors to pay them back for
currency derivatives that plunged in value after the peso dropped.

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

                        About Gruma, S.A.B.

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

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 30, 2009, Standard & Poor's Ratings Services said that its
ratings on GRUMA S.A.B. de C.V., including its 'B+' corporate
credit rating, remain on CreditWatch with negative implications,
where they were placed on Oct. 13, 2008.  S&P based that action on
its perception of GRUMA's more aggressive financial policy,
including the use of derivative instruments.


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


* TRINIDAD & TOBAGO: Financial Sector Woes Can Harm Economy
-----------------------------------------------------------
Trinidad and Tobago's Inspector of Financial Institutions, Carl
Hiralal, said that some of the factors which contribute to the
failure of some of the country's banks cannot be solved by the
institutions themselves, Ralph Banwarie at Trinidad and Tobago
Newsday reports.  The report relates Mr. Hiralal said that more
coordination between regulators and banks was needed so that a
more accurate macro-economic trend analysis can be done, which
will lead to knowing the right measures to embrace for stress-
testing risk-management strategies and to achieve optimum capital
levels.

According to the report, Mr. Hiralal said the global economy had
reached a recessionary level unseen for at least a quarter of a
century.  Depositors, regulators and banking and financial
institutions, have been grappling with the fallout and the
attendant solutions, Mr. Hiralal added.  The report relates Mr.
Hiralal said that Trinidad and Tobago had not been spared and now
there was the additional burden of dealing with the negative
fallout.

The report points out that Mr. Hiralal said the state of any
economy was a reflection of the strength and success of the
financial service sector.  “Problems in the financial sector can
harm the economy as we have seen and this can occur despite the
presence of compensation corporations and even government support
in the form of bailouts,” the report quoted Mr. Hiralal as saying.

Mr. Hiralal, the report adds, pointed out that the present
scenario in the financial sector has led to the search for the
right solutions, since the crisis had more depth and breadth than
ever seen before and had rivaled anything regulators have ever
dealt with.


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


MITSUBISHI MOTORS: Closes Venezuela Plant, 2000 Workers Affected
----------------------------------------------------------------
Dan Molinski at Dow Jones Newswires reports that Mitsubishi Motors
Corporation closed operations in its Venezuela unit amid problems
with worker discipline and a drop in productivity.  A "high level
of absenteeism, disobedience, aggression and lawlessness of some
of the workers" drove the firm to temporarily close the factory,
the Japanese said in a statement obtained by the news agency.

The report relates that productivity at the assembly plant has
fallen off a cliff, with just 33 cars a day, on average, with
1,412 workers, so far this year, from a 59 vehicles per day output
with 590 workers in 2004.  "Efficiency went from 74% in 2004 to
30% in 2009," the report quoted the company as saying.

According to the report, Mitsubishi said that the Venezuela plant,
which is run by its unit, MMC Automotriz, may still reopen if
there is a guarantee for "the safety of its workers and employees
in a climate of peace and discipline."  The report relates that
the closure affects some 2,000 employees, however, the company
said it was ready to negotiate with the Labor Ministry on
reopening the plant.

                      About Mitsubishi Motors

Based in Japan, Mitsubishi Motors Corporation (TYO:7211) --
http://www.mitsubishi-motors.co.jp/-- manufactures automobile.
The Company, along with its subsidiaries and associated companies,
is engaged in the development, production, purchase, sale, import
and export of general and small-sized passenger vehicles, mini-
vehicles, sport utility vehicles (SUVs), vans, trucks and
automobile parts, as well as industrial machines.  It is also
engaged in the checking and maintenance of new vehicles, as well
as the provision of automobile sales financing and leasing
services.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
March 19, 2009, Standard & Poor's Ratings Services revised to
negative from stable the outlook on its 'B+' long-term corporate
credit rating on Mitsubishi Motors Corp., reflecting the increased
likelihood, in S&P's view, of a prolonged deterioration in the
company's financial performance.  Amid the ongoing turbulence in
global auto markets, Mitsubishi Motors' financial performance has
sharply worsened.  This is due in large part to anemic sales in
certain areas, such as Russia, that had contributed materially to
the company's earnings over the past few years.  At the same time,
Standard & Poor's affirmed its long-term corporate credit and
'BB-' senior unsecured debt ratings on Mitsubishi Motors.


PETROLEOS DE VENEZUELA: Ecuador Unit Opens Gas Station in Quinto
----------------------------------------------------------------
PDVSA Ecuador, a branch of Petroleos de Venezuela, S.A., opened
the first gas station in a sector in the north of Quito.

The “Tulipanes” gas station is the beginning of achieving a goal
that was set approximately one year ago, which is the creation of
a commercial network of 13 gas stations for this year.

The PDV gas station is located in an area with a great influx of
people, given that it is close to the north station of the
“Metrovia” mass transportation system, and to the football stadium
“Liga Deportiva Universitaria”.  This station will supply high
quality fuels at lower prices compared to the local market.

At the opening, representatives from the Embassy of the Bolivarian
Republic of Venezuela, Petroecuador, Petrocomercial, the Ministry
of Mines and Oil of Ecuador, and PDVSA Ecuador were present.

It is important to underscore that PDVSA Ecuador is growing
through the execution of plans in the areas of exploration,
exploitation, transportation, industrialization and
commercialization of hydrocarbons, together with the State-owned
company Petroecuador.

                           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: Ends Absorption of Workers in Zulia
-----------------------------------------------------------
As proof of the revolutionary commitment assumed by Petroleos de
Venezuela with the labor force of nationalized contractors, within
the framework of the law that reserves the goods and services
related to primary hydrocarbon activities to the State, the
incorporation of 8,500 workers to the permanent payroll of the
main industry of the country has culminated.

Rafael Ramirez, Minister of the People’s Power for Energy and Oil,
and President of PDVSA stated that “the process ended
successfully.  Every week they added one thousand workers to their
oil industry, and with these 928 occasional workers, we are
finishing this process”.

Mr. Ramirez also announced that the new areas under the control of
the Venezuelan state are starting to have an effect on the
community and on the quality of life of all those who live in
areas close to oil and non oil projects.

Mr. Ramirez said: “we start laying asphalt, opening PDVALs, and
structuring an oil industrial complex at the Eastern Coast of the
Lake (Costa Oriental del Lago) which will allow us to put all our
facilities at 100% capacity and meet the requirements of the
industry and of the industrial sector.

The head of the Energy and Oil ministry explained that “contractor
companies didn’t keep a record of labor relations with the
workers.  We had to make a census, workers have had to gather
documents to demonstrate that such a relation existed, and in this
work, we have used our best teams to meet the requirements of the
workers.  Today, we are completing an unprecedented process in our
country”.

With the absorption of occasional workers from contractor
companies, the industry’s payroll is around 90,000 people, who
play a significant role in the construction of Socialism.  Mr.
Ramirez said: “The industry has an extraordinary power in the
region, a power that we will use to safeguard the interests of the
State”.

                           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: Considers Creating Four Exchange Rate
--------------------------------------------------
Venezuela may modify its foreign exchange controls to create four
different exchange rates to help the government deal with a drop
in oil revenue, Matthew Walter at Blooomberg News reports, citing
BBO Financial Services Inc.

President Hugo Chavez is considering a proposal to maintain the
current official exchange rate of VEB2.15 bolivars per dollar for
food and medicine, and implementing a tax on currency transactions
that are done to import other, nonessential items, said Russ
Dallen, head trader at Caracas Capital Markets at BBO, in a
research note obtained by the news agency.

Meanwhile, the report notes that the government would also begin
regular auctions of dollar-denominated securities on the Caracas
stock exchange, which could be bought with bolivars, Dallen said.
The existing, unofficial currency market, dominated by swaps of
dollar securities for local-currency assets, would also remain in
place.

“This complicated system, if implemented, would satisfy the
requirements of the government of pretending not to have a formal
devaluation of the exchange rate,” the report quoted Mr. Dallen as
saying.

According to the report, President Chavez is expected to make an
announcement “soon” about a new set of economy policies designed
to boost growth.

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.


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


READER'S DIGEST: Local Units Not Part of U.S. Bankr. Proceedings
----------------------------------------------------------------
The Reader's Digest Association, Inc. and its affiliates filed
voluntary pre-arranged petitions under Chapter 11 the U.S.
Bankruptcy Code, as part of a previously announced restructuring
plan.  Prior to the filing, more than 80% of the Company's senior
secured lenders had signed on to the plan agreement in principle.
The filing applies only to the RDA's U.S. businesses -- its
operations in Canada, Latin America, Europe, Africa, Asia and
Australia-New Zealand will not be part of the filing.

RDA's senior lender group has committed US$150 million in new
debtor-in-possession financing, which is convertible into exit
financing upon emergence.  The Company believes this financing
will ensure sufficient liquidity during the reorganization process
and beyond, and RDA's international operations will have adequate
funding based on continuing operations and access to proceeds from
the DIP financing.

The Company has filed a number of motions to ensure that the
filing does not adversely affect day-to-day operations for its
employees, customers or suppliers.  RDA is seeking -- and fully
expects to receive -- approval for a variety of first-day motions,
including requests to honor its customer obligations.  Suppliers
and vendors who provide goods and services to the Company on or
after August 24, 2009, will continue to be paid in the ordinary
course.

Mary Berner, RDA's President and Chief Executive Officer, said,
"Our business operations remain solid, with anticipated Fiscal
2009 revenue only down by low single digits, currency neutral,
despite the recession.  We look forward to emerging with a
restructured balance sheet and as a financially stronger
organization that is positioned to pursue our growth and
transformational initiatives."

RDA previously announced on August 17 that it had reached an
agreement in principle with a majority of its senior secured
lenders on the terms of a restructuring plan to significantly
reduce its debt burden and strengthen the company financially for
the future.  Under the agreement, RDA's senior lenders would
exchange a substantial portion of the company's US$1.6 billion in
senior secured debt for equity, effectively transferring ownership
to the lender group.  The agreement also establishes the
substantive terms of the US$550 million in debt that will remain
on RDA's balance sheet upon exit.

                       Road to Chapter 11

According to Thomas A. Williams, chief financial officer and
senior vice president of Reader's Digest, in the 87 years since
the Company published its first magazine edition, Reader's Digest
and its predecessors and affiliates have grown into a global,
multi-brand media and direct marketing company with over 3,000
employees worldwide (approximately 1,500 in the United States) and
annual sales of US$2.2 billion.  With an editorial philosophy
centered around publishing, marketing and delivering products that
educate, entertain and inspire, and a highly-diversified customer
base, the Debtors have built strong brand loyalty and earned
substantial credibility within the media and marketing industry.
In fact, the now iconic Reader's Digest magazine recently received
the National Magazine Award for General Excellence-the "Oscar" of
the publishing industry - by the American Society of Magazine
Editors in May 2009.

Over the past several years, the Company has been working to
transform the perception of "Reader's Digest" as a legacy print
brand into a multi-platform media company and emphasize content
focused around brand-based affinity communities.  At the same
time, the Company has been aggressively rethinking their supply
chain model and have implemented various restructuring initiatives
geared toward improving production capabilities and increasing
operational efficiencies to reduce costs and deliver savings that
can be re-directed to capture future growth opportunities.  These
actions have enabled the Debtors to obtain approximately US$100
million in cumulative cost-savings through 2009, which has
enhanced their competitive position.

However, according to Mr. Williams, despite its leading industry
position and operational restructuring initiatives, the Company,
like most major publishers and consumer marketing businesses, has
not been immune to the global financial crisis.  The current
recession has resulted in reductions in R&D's advertising, retail
and subscription revenues, placing pressure on the Debtors'
profitability.

Withdrawal of foreign lines of credit and pressure from trade
creditors have also weakened the Company's liquidity positions,
Mr. Williams added.  In short, as the economy continues to
deteriorate in several of its markets, the Company is struggling
to maintain working capital sufficient to conduct operations while
facing progressively unsustainable debt service obligations under
an over-levered capital structure.

Recognizing that their current capital structure was simply
unworkable, the Debtors determined that a comprehensive de-
leveraging transaction -- through a pre-arranged Chapter 11 plan
-- would be in the best long-term interests of the Debtors and
their stakeholders.

                   Prepetition Capital Structure

Reader's Digest said that as of June 30, 2009, it had total assets
of US$2.2 billion against total debts of US$3.4 billion.

Reader's Digest has outstanding debt for borrowed money in the
aggregate principal amount of approximately US$2,183,100,000,
consisting primarily of: (a) US$1,580,300,000 in secured
borrowings under their secured credit facility, (b) US$600,000,000
in principal amount of unsecured 9% senior subordinated notes due
2017, and (c) approximately US$2,800,000 in foreign lines of
credit an a promissory notes.  As of August 20, trade creditors
have outstanding prepetition claims of US$90,000,000.

The senior secured facility consists of (i) a six-year
US$300,000,000 revolving line of credit (ii) a seven-year U.S.
term loan in an outstanding amount of US$1,182,775,000 and (iii) a
US$100,000,000 term loan (payable in an equivalent amount of
Euros, and designated as "Euro Term Loan") owed to German
subsidiary RD German Holdings GmbH.  J.P. Morgan Chase is the
administrative agent for U.S. term loan and the revolver.  A total
of US$293,700,780 is outstanding under the revolving facility.

In R&D's list of 30 largest unsecured creditors, the Bank of New
York, as indenture trustee is on the top of the list with its
US$600,000,000 claim on account of the subordinated notes.  HCL
follows with a US$14,212,268 trade claim.  A copy of the largest
unsecured creditors' list is available for free at:

        http://bankrupt.com/misc/sdny09-23529.pdf

                          Chapter 11 Plan

Before filing for bankruptcy, Reader's Digest negotiated with
senior secured lenders a restructuring plan under which holders of
the Company's US$1.6 billion in senior secured debt will receive
(i) a 300 million second priority term loan, (ii) reinstatement of
the prepetition Euro Term Loan, (iii) 100% of the new stock of
reorganized Reader's Digest.  Holders of unsecured claims related
to operations will receive payment in full in the ordinary course.
Recovery by holders of other unsecured claims is yet to be
determined.   The Plan does not provide for any recoveries to the
Debtors' senior subordinated noteholders or current equity.  There
is, however, an "equity buy in" feature that would allow
qualifying holders of the Debtors' senior subordinated notes to
purchase up to US$50 million to 100 million of the shares of the
reorganized company, for total ownership of no more than 10% to
20%.  A full-text copy of the Restructuring Support Agreement is
available for free at http://researcharchives.com/t/s?422e

According Reader's Digest, its senior secured debt, during 2009,
has traded between 25% and 50% of face amount.  The current market
indication for its unsecured senior subordinated notes is 1% of
face amount.

The Company's said that within the 30-day period following the
filing, it expects to pay US$8,000,000 to employees, US$975,000 to
officers and directors, and US$3,957,000 for financial and
business consultants.

For the 30-day period following the filing of the Chapter 11
petition, Reader's Digest expects unpaid obligations of
US$87,878,000 and unpaid receivables of US$11,625,000.  It expects
a net cash gain of US$36,004,000:

         Cash Receipts                US$221,585,000
         Cash Disbursements              185,581,000
                                        ------------
         Net Cash Gain                 US$36,004,000

The Debtors are in the process of completing their fiscal year
2009 audit but estimate 2009 Cash EBITDA of approximately
$131 million.

               About The Reader's Digest Association

RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world. The
company builds multi-platform communities based on branded
content.  With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries.  It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
approximately 40 million books, music and video products across
the world each year. Its global headquarters are in Pleasantville,
N.Y.

Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP has been engaged as general restructuring
counsel.  Mallet-Prevost, Colt & Mosle LLP has been tapped as
conflicts counsel.  Ernst & Young LLP is auditor.  Miller Buckfire
& Co, LLC, is financial advisor.  AlixPartners, LLC, is
restructuring consultant.  Kurtzman Carson Consultants is notice
and claims agent.


                            ***********

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.

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