/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090911.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 11, 2009, Vol. 10, No. 180 Headlines A R G E N T I N A ALAMOS DEL SUR: Informative Hearing Set for September 25 CASA CORPORACION: Creditors' Proofs of Debt Due on October 23 DUNGAREES SRL: Creditors' Proofs of Debt Due on October 14 GLOBALFINCAS SA: Creditors' Proofs of Debt Due on October 26 JARDIN COMPUTACION: Asks for Own Bankruptcy IRSA INVERSIONES: Posts ARS158.6MM Net Income in Year-Ended June LES FRANCAISES: Creditors' Proofs of Debt Due on October 19 MEAT BROKERS: Creditors' Proofs of Debt Due on October 29 B E R M U D A AGINCOURT HOLDINGS: Creditors' Proofs of Debt Due on September 30 AGINCOURT HOLDINGS: Members to Receive Wind-Up Report on October 8 ENERGY XXI: Offers Buyback of Sr. Notes at 80 Cents on Dollar GEMINI SUBMARINE: Members to Receive Wind-Up Report on October 5 GEMINI SUBMARINE: Creditors' Proofs of Debt Due on October 21 NORTHERN NATIONAL: Creditors' Proofs of Debt Due on September 21 NORTHERN NATIONAL: Members to Receive Wind-Up Report on October 7 SP MANAGERS: Creditors' Proofs of Debt Due on September 25 SP MANAGERS: Members to Receive Wind-Up Report on October 12 VALIDUS HOLDINGS: To Employ IPC Staff Through Year-End VALIDUS HOLDINGS: A.M. Best Affirms "bb+" Sub Debt Rating XL CAPITAL: May Give Up Additional Reinsurance Business in 2010 XL CAPITAL: A.M. Best Affirms “bb+” Rating on Series C & E Shares B R A Z I L BANCO BRADESCO: Snubs Batista Bid for Vale Stake BANCO NACIONAL: To Provide BRL160 Million Funding to Nossa Caixa C A Y M A N I S L A N D S ALPHAGEN PYXIS: Members Receive Wind-Up Report ALTEAS HOLDINGS: Members Receive Wind-Up Report BRENTWOOD (CAYMAN): Members Receive Wind-Up Report BUNDY LIMITED: Members Receive Wind-Up Report COAST BROOKLINE: Members to Receive Wind-Up Report Today COAST HAWKESBURY: Members to Receive Wind-Up Report Today COAST LONGFELLOW: Members to Receive Wind-Up Report Today EAGLE PLUS: Members Receive Wind-Up Report FRONTPOINT JAPAN: Members Receive Wind-Up Report FRONTPOINT OFFSHORE: Members Receive Wind-Up Report GENTREE OFFSHORE: Members Receive Wind-Up Report KAMANI HOLDINGS: Members Receive Wind-Up Report POD HOLDING: Members to Receive Wind-Up Report Today SAISEI KAISYU: Members to Receive Wind-Up Report Today SAISEI KAISYU: Members to Receive Wind-Up Report Today SIXTINA 31: Members Receive Wind-Up Report TOPAZ FUND: Members Receive Wind-Up Report VOLATILITY ALPHA: Members Receive Wind-Up Report VALIANT HOLDING: Members Receive Wind-Up Report WAINA HOLDINGS: Members Receive Wind-Up Report WASATORNET PRIVATE: Members to Receive Wind-Up Report Today D O M I N I C A N R E P U B L I C LA COLONIAL: A.M. Best Removes Firm's Ratings From Negative Review E C U A D O R * ECUADOR: Posts US$681 Million Trade Deficit in Jan-July Period E L S A L V A D O R PACIFIC RIM: Says Requirements Cast Doubt on Going Concern J A M A I C A CABLE & WIRELESS: Digicel Group Files Complaints Againts Firm DIGICEL GROUP: Files Complaints Against LIME & Claro With FTC DIGICEL GROUP: Eyes Expansion Into Other Latin American Countries JAMAICA PUBLIC SERVICE: Quick Replacement of Old Generators Urged M E X I C O AXTEL SAB: Launches Cash Tender Offer for 11% Sr. Notes Due 2013 CEMEX SAB: Eyes September 23 for US$1.8 Billion Share Offer CORPORACION GEO: Taps Morgan Stanley, Santander to Arrange Bond CORPORACION GEO: Fitch Assigns 'BB-/RR3' Rating on US$200MM Notes CORPORACION GEO: Moody's Assigns 'Ba3' Rating on Senior Debt VITRO SAB: Discloses Restructuring Proposal for Bondholder Group P U E R T O R I C O CARIBE MEDIA: S&P Puts 'B' Corp. Rating on CreditWatch Negative DORAL FINANCIAL: Possible Losses Prompt Moody's to Junk Rating FIRSTBANK PUERTO: S&P Downgrades Counterparty Credit Rating to 'B' V E N E Z U E L A GENERAL MOTORS: Unit Plant Shutdown Cut Output by 25,000 Vehicles * VENEZUELA: Aims to Finish Carabobo Round This Year X X X X X X X X * LATAM: Together With the Caribbean See Economy Grow 4.1% * LATAM: Fitch Lists National Rating Changes for April - - - - - ================= A R G E N T I N A ================= ALAMOS DEL SUR: Informative Hearing Set for September 25 -------------------------------------------------------- Alamos del Sur S.R.L. will hold its informative hearing on September 25, 2009, at 9:00 a.m. CASA CORPORACION: Creditors' Proofs of Debt Due on October 23 ------------------------------------------------------------- The court-appointed trustee for C.A.S.A. Corporacion Argentina S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until October 23, 2009. The trustee will present the validated claims in court as individual reports on December 18, 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 February 25, 2010. DUNGAREES SRL: Creditors' Proofs of Debt Due on October 14 ---------------------------------------------------------- The court-appointed trustee for Dungarees S.R.L.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until October 14, 2009. The trustee will present the validated claims in court as individual reports on November 30, 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 February 16, 2010. GLOBALFINCAS SA: Creditors' Proofs of Debt Due on October 26 ------------------------------------------------------------ The court-appointed trustee for Globalfincas S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until October 26, 2009. The trustee will present the validated claims in court as individual reports on December 7, 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 February 22, 2010. JARDIN COMPUTACION: Asks for Own Bankruptcy ------------------------------------------- Jardin Computacion SA asked for its own bankruptcy before the National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 34. IRSA INVERSIONES: Posts ARS158.6MM Net Income in Year-Ended June ---------------------------------------------------------------- IRSA Inversiones y Representaciones Sociedad Anonima posted its results for the fiscal year ended June 30, 2009. -- Net income for fiscal 2009 increased to ARS158.6 million from the ARS54.9 million net income posted a year earlier, reflecting the incidence of the company's operating income which rose by 16%, from ARS254.8 million in fiscal 2008 to ARS295.7 million in fiscal 2009. Other factors influencing the company's final results have been the positive impact of the investment in Banco Hipotecario S.A. and the results arising from the acquisition of Alto Palermo notes during the fiscal year. -- Regarding the performance of the various segments in terms of net sales, Sales and Developments rose by 42% to ARS280 million, Offices and Others rose by 45% to ARS148 million, Shopping Centers rose by 15% to ARS397 million, Hotels rose by 7% to ARS159 million and Consumer Finance fell by 19% to ARS236 million. -- Thus, total Revenues increased by 13%, up from ARS1.084 billion in FY2008 to ARS1.220 billion in FY2009. Operating income rose by 16%, reflecting a growth rate higher than that shown by revenues. With the consumer finance segment excluded from the analysis, the company's revenues grew by 24% whereas operating income grew by 55% mainly due to the variations in operating income in the sales and developments segments, the offices segment (45%) and the shopping centers segment (18%). -- The Shopping Centers segment continues to perform well despite the downturn in the economy. The sales posted by its shopping centers' tenants rose by 11%. Occupancy continues to be high: at the end of the fiscal year it stood at 98.5%. -- Last May the company opened its eleventh shopping center after a two-year construction process: Dot Baires Shopping, a major undertaking in the City of Buenos Aires' Saavedra neighborhood, is one of the company's most important projects as well as one of the most significant developments in the industry in Argentina in recent years. The property is already fully occupied. -- Office Rental segment: This segment posted a 45% increase compared to revenues for the previous period. In the course of the fiscal year the company executed title deeds for the sale of more than 19,000 square meters of gross leasable area in non-strategic office properties at attractive prices that reflect the strength of its portfolio, to which it has added the office building located at Puerto Madero's Dock IV: almost 90% of this building has already been leased. -- Sales and Developments segment: the results of this segment in this period have been favorably affected by the sales of office properties. -- Consumer Finance segment: The impact of the financial crisis became apparent particularly in the losses incurred in this segment as a result of a drop in consumption, a rise in systemic delinquency levels and an increase in the cost of funding. However, there was an improvement in the operating results for the second half of the fiscal year when compared to the first thanks to the capitalization made by Alto Palermo combined with a relative stabilization in local financial markets, a reduction in bad loan charges and a decrease in operating expenses. -- At the end of the fiscal year, IRSA and Alto Palermo had acquired, on a consolidated basis, Alto Palermo Series I notes due 2017 for US$44.6 million in nominal value and Alto Palermo Series II notes due 2012 for US$19.9 million in nominal value. These acquisitions improved the consolidated indebtedness ratios. Additionally, in the course of this fiscal year, IRSA increased its direct and indirect ownership interests in Banco Hipotecario S.A. to 21.34%. As already noted, the impact of these decisions has been highly favorable in determining its results for this fiscal year. About IRSA IRSA Inversiones Representaciones SA is an Argentinean company active in the real estate sector. The main activity of the Company is the acquisition of undeveloped land in areas for future development or sale; as well as the acquisition of offices and other properties primarily for rental purposes. The company owns 11.8% of Banco Hipotecario SA. On August 2007, the company bought 50% of the property known as Bank Boston. Together with CYRELA SA, a Brazilian real estate developer, the company created IRSA-CYRELA (CYRSA), engaged in the house development in Argentina. The company is also involved in purchasing and managing shopping centers through its subsidiary, Alto Palermo SA, which owns 10 shopping centers located in Buenos Aires and other provinces. The company is also involved in the purchase and operation of luxury hotels. * * * As of September 11, 2009, the company continues to Standard and Poor's B- LT Issuer Credit ratings. The company also continues to carry Fitch B LT FC Issuer Default and Senior Unsecured Debt ratings; and B+ LT LC Issuer Default rating. LES FRANCAISES: Creditors' Proofs of Debt Due on October 19 ----------------------------------------------------------- The court-appointed trustee for Les Francaises S.R.L.'s reorganization proceedings, will be verifying creditors' proofs of claim until October 19, 2009. The trustee will present the validated claims in court as individual reports on November 30, 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 February 15, 2010. Creditors will vote to ratify the completed settlement plan during the assembly on June 7, 2010. MEAT BROKERS: Creditors' Proofs of Debt Due on October 29 --------------------------------------------------------- The court-appointed trustee for Meat Brokers S.A.'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 on December 14, 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 March 10, 2010. ============= B E R M U D A ============= AGINCOURT HOLDINGS: Creditors' Proofs of Debt Due on September 30 ----------------------------------------------------------------- The creditors of Agincourt Holdings Limited are required to file their proofs of debt by September 30, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 25, 2009. The company's liquidator is: Nicholas Hoskins Chancery Hall, 52 Reid Street Hamilton, Bermuda AGINCOURT HOLDINGS: Members to Receive Wind-Up Report on October 8 ------------------------------------------------------------------ The members of Agincourt Holdings Limited will receive on October 8, 2009, at 2:00 p.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 25, 2009. The company's liquidator is: Nicholas Hoskins Chancery Hall, 52 Reid Street Hamilton, Bermuda ENERGY XXI: Offers Buyback of Sr. Notes at 80 Cents on Dollar ------------------------------------------------------------- Energy XXI Gulf Coast, Inc. has commenced an exchange offer and consent solicitation in respect of its 10% Senior Notes due 2013. The company has commenced an offer to exchange up to US$360 million principal amount outstanding Senior Notes properly tendered and accepted by the company for its newly issued 16% Second Lien Junior Secured Notes due 2014, subject to proration and reduction to US$311 million principal amount of Senior Notes, depending on the aggregate principal amount of Second Lien Notes sold in a concurrent private placement. In conjunction with the exchange offer, the company is also soliciting consents from holders of the Senior Notes to certain proposed amendments to the indenture under which the Senior Notes were issued, which, if effected, would modify certain of the restrictive covenants in that indenture in order to permit the issuance of the Second Lien Notes. A tender of Senior Notes by any holder in the exchange offer will also constitute a consent by such holder in favor of the Proposed Amendments. The adoption of Proposed Amendments requires the consents of holders of a majority in principal amount of Senior Notes not held by the company and its affiliates. In exchange for each US$1,000 principal amount of Senior Notes properly tendered and accepted by the Company: (i) by 5:00 p.m., New York City time, on September 18, 2009, participating holders of Senior Notes will receive US$800 principal amount of Second Lien Notes, subject to proration, and (ii) after the Early Tender Date but prior to Midnight, New York City time, on October 2, 2009, participating holders will receive US$750 principal amount of Second Lien Notes, subject to proration. Tendered Senior Notes may be withdrawn prior to 5:00 p.m., New York City time, on September 18, 2009, unless extended. The company has received indications from holders of an aggregate principal amount of approximately us$345 million of Senior Notes of their intent to participate in the tender. The table summarizes the Total Consideration payable in the exchange offer for Senior Notes validly tendered prior to the Early Tender Date and not withdrawn and the Exchange Consideration payable in the exchange offer for Senior Notes validly tendered after the Early Tender Date and prior to the Expiration Date: For each US$1,000 Principal Amount of Senior Notes Exchanged: ---------------- Total Consider- Exchange ation Consider- if Tender ation Occurs if Tender Prior Occurs to or on After Maximum the Early the Early Outstanding Accept- Tender Date Tender Date Principal ance (Principal (Principal Senior Amount Amount Amount of Amount to be (in (in Second of Second Exchanged CUSIP # mil.) mil.) Lien Notes) Lien Notes) ------------ ------- --------- --------- ----------- ----------- 10% Senior Notes due 2013 29276KAC5 $621.7* $60.0 $800 $750 * Does not include US$126.0 million aggregate principal amount of Senior Notes owned by the Company that will be delivered for cancellation concurrently with the closing of the exchange offer and US$2.3 million aggregate principal amount of Senior Notes owned by the company's affiliates. Such Senior Notes will not be deemed to be outstanding for purposes of determining the consents required to approve the Proposed Amendments. The aggregate principal amount of Second Lien Notes that may be issued pursuant to the exchange offer in exchange for Senior Notes will be at least US$248.8 million and up to a maximum of US$288.0 million, depending on the aggregate principal amount of Second Lien Notes and common stock sold in a concurrent private placement. Concurrently with the closing of the exchange offer, the company will sell for cash in a private placement an aggregate principal amount of Second Lien Notes of at least US$50.0 million and up to a maximum of US$89.0 million. The Second Lien Notes issued in the exchange offer will be designated Series A (the "Series A Second Lien Notes") and the Second Lien Notes issued in the private placement will be designated Series B (the "Series B Second Lien Notes"). The two series initially will bear different CUSIP numbers but will otherwise have the same terms. The company will issue the Second Lien Notes in both the exchange offer and the private placement with an initial maximum aggregate principal amount of up to US$338.0 million, as follows: * Series A Second Lien Notes issued pursuant to the exchange offer, in an aggregate principal amount of at least US$248.8 million, and up to (a) US$288.0 million, less (b) the excess of the Series B Second Lien Notes issued pursuant to the private placement of such notes and shares of Energy XXI (Bermuda) Limited's common stock over US$50.0 million, and * Series B Second Lien Notes issued pursuant to the private placement, in an aggregate principal amount of at least US$50.0 million and up to US$89.0 million. The Second Lien Notes will bear interest at the rate of 16% per annum, consisting of (i) 14% payable in cash and (ii) 2% payable by either increasing the outstanding principal amount of the applicable series or by issuing additional Second Lien Notes of the applicable series, in each case payable on June 15 and December 15 of each year, beginning on December 15, 2009. The Second Lien Notes will mature on June 15, 2014. The obligations under the Second Lien Notes will be guaranteed by the: (i) a guarantee by Energy XXI USA, Inc., the company's direct parent, recourse under which is limited to its ownership of 100% of the Company's outstanding capital stock (the "Direct Parent"); (ii) the full and unconditional guarantee of Energy XXI (Bermuda) Limited, the Company's ultimate parent (the "Parent"); and (iii) the full and unconditional guarantee of each of the Company's subsidiaries (the "Subsidiaries," and together with the Direct Parent and the Parent, the "Guarantors" and the guarantees of Second Lien Notes by the Guarantors, collectively, the "Guarantees"). The Second Lien Notes and the related Guarantees will be subordinated in right of payment to indebtedness under the Company's Amended and Restated First Lien Credit Agreement, as amended, restated, modified or refinanced from time to time (the "Credit Agreement"). The Second Lien Notes and related Guarantees by the Subsidiaries and the Direct Parent will be secured on a second priority lien basis, subject to certain permitted liens, by the same assets that secure indebtedness on a first priority lien basis under the Company's Credit Agreement. If any party becomes a new guarantor under the Credit Agreement, such party will also become a Guarantor of the Second Lien Notes. As a result, the Second Lien Notes also will be subordinated in priority to the indebtedness under the company's Credit Agreement to the extent of the collateral securing such obligations. Under a proposed intercreditor agreement, under certain circumstances (including a bankruptcy or insolvency of the company or any of the Subsidiaries) payments to holders of Second Lien Notes, but not to holders of the Senior Notes, may be blocked. Notwithstanding any other provision of the exchange offer, the Company's obligation to accept for exchange, and to exchange, any of the Senior Notes validly tendered is subject to the satisfaction or waiver of the following conditions, among others, prior to the settlement date of the exchange offer: * there having been validly tendered and not withdrawn pursuant to the exchange offer Senior Notes having an aggregate principal amount of not less than US$311.0 million; * the receipt of the Requisite Consents and execution of a supplemental indenture providing for the Proposed Amendments ; * the Company having closed or concurrently closing the sale of Series B Second Lien Notes in an aggregate principal amount of not less than US$50.0 million in the private placement; and * the company having obtained an amendment or amendment and restatement to, or a waiver under, its existing Amended and Restated First Lien Credit Agreement, the effect of which is that the consummation of the exchange offer and concurrent private placement and the issuance of the Second Lien Notes and payments in respect of such notes will not be prohibited under such facility (the "Bank Condition"). About Energy XXI Energy XXI Golf Coast, Inc. -- http://www.energyXXI.com-- is a Houston-based independent energy company engaged in the acquisition, development, exploration and production of oil and natural gas reserves in the U.S. Gulf Coast and the Gulf of Mexico. The Company an indirect wholly owned subsidiary of Hamilton, Bermuda-based Energy XXI (Bermuda) Limited. * * * As reported in the Troubled Company Reporter on September 8, 2009, Moody's Investors Service affirmed Energy XXI Gulf Coast's Caa3 Corporate Family Rating, downgraded its Probability of Default Rating to Ca from Caa3, and affirmed the Ca rating on its senior notes due 2013. The rating outlook remains negative. The rating actions reflect Energy XXI's recently announced bond exchange offer for its senior unsecured notes due 2013. At the same time, Standard & Poor's Ratings Services t lowered its long-term corporate credit rating on Energy XXI (Bermuda) Ltd. to 'CC' from 'B-', and senior notes of Energy XXI Gulf Coast to 'C' from 'CCC+'. S&P also placed the ratings on CreditWatch with negative implications. GEMINI SUBMARINE: Members to Receive Wind-Up Report on October 5 ---------------------------------------------------------------- The members of Gemini Submarine Cable System Limited will receive on October 5, 2009, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ernest A. Morrison Cox Hallett Wilkinson Milner House, 18 Parliament Street Hamilton, Bermuda GEMINI SUBMARINE: Creditors' Proofs of Debt Due on October 21 ------------------------------------------------------------- The creditors of Gemini Submarine Cable System Limited are required to file their proofs of debt by October 21, 2009, to be included in the company's dividend distribution. The company's liquidator is: Ernest A. Morrison Cox Hallett Wilkinson Milner House, 18 Parliament Street Hamilton, Bermuda NORTHERN NATIONAL: Creditors' Proofs of Debt Due on September 21 ---------------------------------------------------------------- The creditors of Northern National Insurance Ltd. are required to file their proofs of debt by September 21, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 27, 2009. The company's liquidator is: Mike Morrison KPMG Advisory Limited Crown House, 4 Par-La-Ville Road Hamilton in Bermuda NORTHERN NATIONAL: Members to Receive Wind-Up Report on October 7 ----------------------------------------------------------------- The members of Northern National Insurance Ltd. will receive on October 7, 2009, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 27, 2009. The company's liquidator is: Mike Morrison KPMG Advisory Limited Crown House, 4 Par-La-Ville Road Hamilton in Bermuda SP MANAGERS: Creditors' Proofs of Debt Due on September 25 ---------------------------------------------------------- The creditors of SP Managers Limited are required to file their proofs of debt by September 25, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sep 4, 2009. The company's liquidator is: Ian Pilgrim Bamboo Gate, 11 Harbour Road Paget PG01, Bermuda SP MANAGERS: Members to Receive Wind-Up Report on October 12 ------------------------------------------------------------ The members of SP Managers Limited will receive on October 12, 2009, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Sep 4, 2009. The company's liquidator is: Ian Pilgrim Bamboo Gate, 11 Harbour Road Paget PG01, Bermuda VALIDUS HOLDINGS: To Employ IPC Staff Through Year-End ------------------------------------------------------ Validus Holdings, Ltd. has not yet made a long-term decision on employment of staff who worked for recently acquired IPC Holdings, Lilla Zuill at Reuters reports, citing Chief Financial Officer Joseph Consolino. The report relates that Mr. Consolino said the company has agreed to keep IPC's staff on its payroll through the end of the year. As reported in the Troubled Company Reporter-Latin America on September 7, 2009, Validus Holdings completed its acquisition of IPC Holdings, Ltd. At a Special General Meeting of Shareholders on September 4, 2009, Validus shareholders approved the issuance of Validus common shares in connection with the acquisition of IPC with the support of approximately 87% of the shares voted at the meeting. At a separate meeting held the same day, IPC shareholders adopted the amalgamation agreement with Validus and approved the resulting amalgamation of IPC with a wholly owned subsidiary of Validus with the support of approximately 95% of the shares voted at the meeting. Pursuant to the amalgamation agreement, former shareholders of IPC will receive BM$7.50 in cash and 0.9727 Validus voting common shares for each IPC common share. Effective as of the close of trading September 4, IPC common shares will cease trading. About Validus Holdings, Ltd. Validus Holdings Ltd. -- http://www.validusre.bm/-- is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd., and Talbot Holdings Ltd. Validus Re is a Bermuda based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd's insurance market through Syndicate 1183. * * * As reported in the Troubled Company Reporter-Latin America on July 16, 2009, A.M. Best Co. has placed the indicative ratings of "bb+" on subordinated debt and "bb" on the preferred stock of Validus Holdings, Ltd (Validus Holdings) under review with negative implications. VALIDUS HOLDINGS: A.M. Best Affirms "bb+" Sub Debt Rating --------------------------------------------------------- A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength ratings of A- and issuer credit ratings of "a-" of Validus Reinsurance, Ltd. (Validus) (Bermuda) as well as IPCRe Limited (Bermuda) and IPCRe Europe Limited (Dublin, Ireland) (collectively known as IPCRe). A.M. Best also has removed from under review with negative implications and affirmed the ICR of "bbb-" and the indicative ratings for securities available under the shelf registration of "bbb-" on senior debt, "bb+" on subordinated debt and "bb" on the preferred stock of Validus Holdings, Ltd. (Validus Holdings). The outlook assigned to the above ratings is stable. Concurrently, A.M. Best has withdrawn the ICR of "bbb-" and the indicative ratings of "bb+" on preferred stock, "bbb" on senior unsecured debt and "bbb-" on subordinated debt for securities available under the former shelf registration of IPC Holdings Ltd. (IPCRe Holdings) as these ratings have been merged out of existence. On September 4, 2009, Validus Holdings completed the acquisition of IPCRe Holdings in exchange for a .9727 common voting share of Validus Holdings for each IPCRe common share and cash consideration of $7.50 per share. This effectively put IPCRe into run off as all renewal business going forward will be written by Validus. Management has indicated its intention to move capital from IPCRe to Validus commensurate with the movement of risk as business renews. A.M. Best will closely monitor this process to ensure capital is kept at levels that support the current ratings. The ratings contemplate the prospective benefits that will be realized through the acquisition due to the larger capital base and market profile. However, it will take time to truly gauge these prospective benefits' impact on the Validus franchise. Partially offsetting these strengths is Validus' susceptibility to low frequency, high severity events as a property catastrophe focused reinsurer and the increased uncertainty over the short term due to the business that was previously underwritten by IPCRe. The stable outlook reflects the expectation that operating performance and risk-adjusted capitalization will continue to remain supportive of the current rating levels. XL CAPITAL: May Give Up Additional Reinsurance Business in 2010 --------------------------------------------------------------- Oliver Suess at Bloomberg News reports that may give up more reinsurance business in next year's renewal of treaties should rates not be adequate. "At the reinsurance side of our business we are perfectly willing to shrink," Chief Executive Officer Michael McGavick told Bloomberg News in an interview. "We are not going to chase the market to foolish pricing. At the peak, XL was a US$3 billion reinsurance operation and this year we might end up with US$1.7 billion to US$2 billion in premiums," Mr. McGavick added. According to the report, the company's capital was depleted by sub-prime losses and ties to troubled bond insurer, Syncora Holdings Ltd. (formerly known as Security Capital Assurance Ltd.), which XL co-founded. The report relates that XL Capital had to raise more than US$2.8 billion in capital to replenish funds. Now it has to fend off a decline in policy sales as customers scale back purchases amid the recession, the report notes. "Our company's troubled times in the past are no longer a topic in conversations with our clients," the report quoted Mr. McGavick as saying. "We are also no longer seen as a takeover target as there wouldn't be many bidders out there that could afford to pay more than US$5 billion right now," Mr. McGavick added. Meanwhile, Mr. McGavick, the report relates, said that the company, which has received a total of 36 claims tied to Bernard Madoff's US$65 billion Ponzi scheme, has no reasons to change its view on expected losses related to that. XL sells coverage to clients protecting them against lawsuits. About XL Capital Headquartered in Hamilton, Bermuda, XL Capital Ltd provides insurance and reinsurance coverages through its operating subsidiaries to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. As of December 31, 2008, XL Capital Ltd reported total invested assets of US$34.3 billion and shareholders' equity of US$6.6 billion. * * * As reported by the Troubled Company Reporter-Latin America on Feb. 18, 2009, Moody's Investors Service affirmed XL Capital Ltd's "Ba1" preferred stock rating. XL CAPITAL: A.M. Best Affirms “bb+” Rating on Series C & E Shares ----------------------------------------------------------------- A.M. Best Co. has affirmed the financial strength rating of A and issuer credit ratings of "a" of XL Capital Group (Bermuda) and its members. A.M. Best also has affirmed the ICR of "bbb" and all debt ratings of the holding company, XL Capital Ltd (Cayman Islands). These rating actions reflect the early achievements of XL Capital's recovery plan following last year's settlement with Syncora Holdings Ltd., which included de-risking of the investment portfolio, reduction of corporate expenses, implementation of a more robust risk management program and retention of key senior underwriting management. The group's core operating results remain strong in both primary and reinsurance segments. XL Capital's property/casualty combined ratio for the six months ended June 30, 2009 was 92.6%, reflective of the group's established market profile and worldwide presence, while risk-based capitalization remains solid and fully supportive of the group's rating level. XL Capital's enhanced risk management program is responsible for ensuring the efficient identification, assessment and monitoring of key risks across all facets of the group's operations. A.M. Best is encouraged by this program, which should enable the group to operate more efficiently and detect unfavorable trends earlier. The debt-to-capital ratio for XL Capital Ltd is expected to remain in the mid 20% range going forward. Fixed charge coverage ratios over the past several years fell below expectations as earnings were reduced due to capital market volatility and settlement with Syncora Holdings Ltd. However, this concern was reduced by the substantial level of cash held at XL Capital Ltd. On a going forward basis, the fixed charge coverage ratio is expected to stabilize and remain in the 3 times to 5 times range. A.M. Best anticipates that XL Capital will continue its solid operating performance, despite a soft pricing market. As XL Capital continues to de-risk its investment portfolio, the group will remain exposed to any volatility in equity markets and credit spreads on corporate investments. The FSR of A (Excellent) and ICRs of “a” have been affirmed with a stable outlook for the following subsidiaries of XL Capital Ltd: -- XL Re Ltd -- Indian Harbor Insurance Company -- Greenwich Insurance Company -- XL Insurance Company of New York, Inc. -- XL Insurance America, Inc. -- XL Select Insurance Company -- XL Reinsurance America Inc. -- XL Specialty Insurance Company -- XL Insurance (Bermuda) Ltd -- XL Re Latin America Ltd -- XL Insurance Company Limited -- XL Re Europe Limited -- XL Lloyds Insurance Company The FSR of A and ICR of “a” have been withdrawn and a category NR- 5 assigned to the FSR and an “nr” assigned to the ICR of XL Europe Limited, due to the company being merged with two other European XL Capital Ltd affiliates to improve operational efficiency. The ICR of “bbb” has been affirmed for XL Capital Ltd with a stable outlook. These debt ratings have been affirmed with a stable outlook: -- “bbb” on $575 million 10.75% senior unsecured equity linked securities (ELKS), due 2011 -- “bbb” on $600 million 5.25% senior unsecured notes, due 2014 -- “bbb” on $350 million 6.375% senior unsecured bonds, due 2024 -- “bbb” on $325 million 6.3% senior unsecured notes, due 2027 -- “bb+” on $1.0 billion Series E 6.5% non-cumulative preference shares, redeemable 2017 -- “bb+” on $500 million Series C preference shares, redeemable 2013 XL Capital Finance (Europe) plc (guaranteed by XL Capital Ltd)— -- “bbb” on $600 million 6.5% senior unsecured notes, due 2012 These indicative ratings on shelf securities have been affirmed with a stable outlook: XL Capital Ltd -- “bbb” on senior unsecured -- “bbb-” on subordinated -- “bb+” on preferred stock XL Capital Finance (Europe) plc (guaranteed by XL Capital Ltd)— -- “bbb” on senior unsecured XL Capital Trust I, II & III (guaranteed by XL Capital Ltd)— -- “bb+” on preferred securities About XL Capital Headquartered in Hamilton, Bermuda, XL Capital Ltd provides insurance and reinsurance coverages through its operating subsidiaries to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. As of December 31, 2008, XL Capital Ltd reported total invested assets of US$34.3 billion and shareholders' equity of US$6.6 billion. * * * As reported by the Troubled Company Reporter-Latin America on Feb. 18, 2009, Moody's Investors Service affirmed XL Capital Ltd's "Ba1" preferred stock rating. =========== B R A Z I L =========== BANCO BRADESCO: Snubs Batista Bid for Vale Stake ------------------------------------------------ Banco Bradesco S.A. rejected a deal with billionaire Eike Batista that would have put him in a group controlling iron ore producer Vale, Elzio Barreto at Reuters reports, citing O Estado de S. Paulo newspaper. The report relates that the local newspaper said Mr. Batista planned to buy the bank's Bradespar holding company and also make an offer for the unit's minority shareholders. The takeover bid was expected to total BRL9 billion (US$4.9 billion), the daily added. According to the report, citing the newspaper, Mr. Batista's offer was turned down. The report recalls that Mr. Batista approached Bradesco weeks ago with the help of investment banker Andre Esteves of BTG Investments. "The bank will study all the proposals that show up, but there's no interest in selling Vale. That's one of their best investments," an unnamed executive who had access to all parties involved told Estado in an interview, the report relates. The newspaper, the report notes, said that Bradesco weighed Mr. Batista's proposal, but it came as the bank and Roger Agnelli, Vale's chief executive, were under pressure to invest in iron production facilities in states headed by government allies, such as Para and Espirito Santo. Reuters, citing O Estado, says that Mr. Batista failed to garner government support for his Bradespar-Vale plan because of mixed views among public officials over the sale of one of his miners, MMX, to Anglo American, a foreign investor. The report relates that the newspaper said another idea that was mulled but failed to gain traction was creating a consortium of Brazilian companies that would buy out Bradesco's stake in Bradespar. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As of July 2, 2009, the company continues to carry Moody's Ba2 foreign LT bank Deposits rating. BANCO NACIONAL: To Provide BRL160 Million Funding to Nossa Caixa ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA will provide a BRL160 million (US$87.5 million) funding to Nossa Caixa Desenvolvimento, James Newman at Business News Americas reports. According to the report, state development secretary, Geraldo Alckmin, said that the BNDES line will go to machinery purchase and other working capital lines at Nossa Caixa Desenvolvimento, but will be expanded into other SME lending. The report relates that in November, the government announced plans to use BRL1 billion of the 5.39 billion-real sale of its 71.25% stake in Nossa Caixa to start a development agency, which it later launched in July this year. "What state governments do with their own state development Banks could be done by BNDES, so I don't see the point of having the state-level development banks, especially not for São Paulo," technical coordinator for consulting firm Tendencias Consultoria Integrada, Marcio Issao Nakane told Bnamericas in an interview. Mr. Alckmin, Bnamericas notes, said that Nossa Caixa Desenvolvimento currently has reference capital of BRL200 million, but this should rise to the full BRL1 billion-real mark, and BNDES should be raising its rate of funding to the state development bank in coming months. The report relates that all in all, Nossa Caixa could receive BRL8.5 billion in funding from BNDES. About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. ========================== C A Y M A N I S L A N D S ========================== ALPHAGEN PYXIS: Members Receive Wind-Up Report ---------------------------------------------- The members of The Alphagen Pyxis Fund Limited met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ALTEAS HOLDINGS: Members Receive Wind-Up Report ----------------------------------------------- The members of Alteas Holdings Ltd. met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BRENTWOOD (CAYMAN): Members Receive Wind-Up Report -------------------------------------------------- The members of Brentwood (Cayman) Holdings Ltd. met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BUNDY LIMITED: Members Receive Wind-Up Report --------------------------------------------- The members of Bundy Limited met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands COAST BROOKLINE: Members to Receive Wind-Up Report Today -------------------------------------------------------- The members of Coast Brookline Strategy Investments Ltd. will meet today, September 11, 2009, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands COAST HAWKESBURY: Members to Receive Wind-Up Report Today --------------------------------------------------------- The members of Coast Hawkesbury Strategy Investments Ltd. will meet today, September 11, 2009, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands COAST LONGFELLOW: Members to Receive Wind-Up Report Today --------------------------------------------------------- The members of Coast Longfellow Strategy Investments Ltd. will meet today, September 11, 2009, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands EAGLE PLUS: Members Receive Wind-Up Report ------------------------------------------ The members of Eagle Plus Ltd. met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FRONTPOINT JAPAN: Members Receive Wind-Up Report ------------------------------------------------ The members of Frontpoint Japan Equity Market Neutral Fund Offshore Ltd. met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FRONTPOINT OFFSHORE: Members Receive Wind-Up Report --------------------------------------------------- The members of Frontpoint Offshore RCL Equity Long/Short Fund, Ltd. met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GENTREE OFFSHORE: Members Receive Wind-Up Report ------------------------------------------------ The members of Gentree Offshore Inc. met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands KAMANI HOLDINGS: Members Receive Wind-Up Report ----------------------------------------------- The members of Kamani Holdings Limited met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands POD HOLDING: Members to Receive Wind-Up Report Today ---------------------------------------------------- The members of Pod Holding 2,0 Ltd. will meet today, September 11, 2009, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SAISEI KAISYU: Members to Receive Wind-Up Report Today ------------------------------------------------------ The members of Saisei Kaisyu Planning 4 Limited will meet today, September 11, 2009, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SAISEI KAISYU: Members to Receive Wind-Up Report Today ------------------------------------------------------ The members of Saisei Kaisyu Planning 3 Limited will meet today, September 11, 2009, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SIXTINA 31: Members Receive Wind-Up Report ------------------------------------------ The members of Sixtina 31 Cambridge Asia Fund Limited met on September 9, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Victor Murray Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands TOPAZ FUND: Members Receive Wind-Up Report ------------------------------------------ The members of Topaz Fund met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands VOLATILITY ALPHA: Members Receive Wind-Up Report ------------------------------------------------ The members of The Volatility Alpha Enhanced Fund Limited met on September 9, 2009, and received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Victor Murray Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands VALIANT HOLDING: Members Receive Wind-Up Report ----------------------------------------------- The members of Valiant Holding Co., Ltd. met on September 9, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Victor Murray Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands WAINA HOLDINGS: Members Receive Wind-Up Report ---------------------------------------------- The members of Waina Holdings Limited met on September 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands WASATORNET PRIVATE: Members to Receive Wind-Up Report Today ----------------------------------------------------------- The members of Wasatornet Private Equity Ltd. will meet today, September 11, 2009, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ================================== D O M I N I C A N R E P U B L I C ================================== LA COLONIAL: A.M. Best Removes Firm's Ratings From Negative Review ------------------------------------------------------------------ A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating of B++ and issuer credit rating of "bbb+" of La Colonial, S. A. Compania de Seguros (La Colonial) (Dominican Republic). The outlook assigned to both ratings is stable. La Colonial's ratings were placed under review on June 24, 2009 due to continued delays surrounding receipt of critical information necessary to conclude A.M. Best's rating process. However, La Colonial has since complied with all requests for information. The affirmation of the ratings reflects La Colonial's consistently profitable operating results, adequate capitalization and conservative underwriting philosophy. La Colonial has maintained consistent operating performance through careful risk selection with a focus on profitability. The company's underwriting discipline and consistent levels of investment income have resulted in historically favorable earnings, and this has enabled La Colonial to continue to enhance its risk-adjusted capitalization. In recent years, operating results have been augmented by increased underwriting controls and conservative operating strategies. La Colonial's financial strength also is enhanced by its level of reserves, along with the liquidity of its investments and comprehensive reinsurance program Partially offsetting these strengths is La Colonial's limited financial flexibility, the concentration of its business in the Dominican Republic and rising reinsurance costs associated with the increased frequency of catastrophic events. ============= E C U A D O R ============= * ECUADOR: Posts US$681 Million Trade Deficit in Jan-July Period ---------------------------------------------------------------- Ecuador posted a trade deficit of US$681 million in the first seven months of 2009, compared with a surplus of US$2.5 billion a year earlier, Mercedes Alvaro at Dow Jones Newswires reports, citing the central bank. According to the report, the Central Bank said exports fell 40% to about US$7.1 billion between January and July from US$11.9 billion a year earlier; while imports fell 17% to about US$7.8 billion in the first seven months from US$9.4 billion a year earlier. The report relates that exports of oil products totaled US$3.3 billion between January and July, or 46% of the total, while non-petroleum products reached US$3.8 billion, or 54%. Dow Jones Newswires notes that during the January-July period, Ecuador posted an oil trade surplus of US$2.2 billion and a non- oil trade deficit of US$2.9 billion. * * * As reported by the Troubled Company Reporter-Latin America on December 17, 2008, Fitch Ratings downgraded Ecuador's long-term foreign currency Issuer Default Rating (IDR) to 'RD' from 'CCC' following the expiration of the grace period for the coupon payment on the 2012 global bonds that was due on Nov. 15 and the government's announcement that it will selectively default on all global bonds. The short-term foreign currency rating was downgraded to 'D' from 'C'. The country ceiling remains at 'B-'. ==================== E L S A L V A D O R ==================== PACIFIC RIM: Says Requirements Cast Doubt on Going Concern ---------------------------------------------------------- Pacific Rim Mining Corp. (TSX:PMU)(NYSE Amex:PMU) said that for the three-month period ended July 31, 2009, it recorded a loss for the period of US$881,000 or US$0.01 per share, compared to a loss of US$3,269,000 or US$0.03 per share for the three month period ended July 31, 2008. The US$2.4 million decrease in net loss for Q1 2010 compared to Q1 2009 is primarily related to significantly lower direct exploration and general and administrative expenses combined with a small gain on the sale of bullion, offset in part by expenses related to the CAFTA action during Q1 2010 for which there is no comparable item in Q1 2009. It had total assets of US$7,147,000 against total debts of US$1,679,000 as of July 31, 2009. Cash was at US$627,000 as of July 31, 2009. The Company said it will require additional funding to maintain its ongoing exploration programs and property commitments as well as for administrative purposes and CAFTA arbitration and negotiation. These requirements, among existing conditions and risks, cast substantial doubt on the validity of the going concern assumption. The Company's ability to continue operations and exploration activities as a going concern is dependent upon its ability to obtain additional funding. The Company will need to raise sufficient funds to pursue ongoing exploration and administration expenses as well as its costs under its CAFTA arbitration. While the Company has been successful in obtaining its required funding in the past, there is no assurance that sufficient funds will be available to the Company in the future. The Company has no assurance that such financing will be available or be available on favourable terms. Factors that could affect the availability of financing include the progress and results of the El Dorado project and its permitting application, the resolution of international arbitration proceedings over the non-issuance of permits in El Salvador, the state of international debt and equity markets, investor perceptions and expectations and the global financial and metals markets. The Company will have to obtain additional financing through, but not limited to, the issuance of additional equity. About Pacific Rim Canada based Pacific Rim Mining Corp. is an environmentally and socially responsible exploration company focused exclusively on high grade, environmentally clean gold deposits in the Americas. Pacific Rim's primary asset and focus of its growth strategy is the high grade, vein-hosted El Dorado gold project in El Salvador. The Company owns several similar grassroots gold projects in El Salvador and is actively seeking additional assets elsewhere in the Americas that fit its project focus. Pacific Rim's shares trade under the symbol PMU on both the Toronto Stock Exchange and the NYSE Amex. Pacific Rim's U.S. and Salvadoran subsidiaries are Pac Rim Cayman LLC, Pacific Rim El Salvador, S.A. de C.V, and Dorado Exploraciones, S.A. de C.V. Pac Rim Cayman LLC, a wholly-owned subsidiary of Pacific Rim Mining Corp. in April 2009 filed international arbitration proceedings against the Government of El Salvador under the Central America-Dominican Republic-United States of America Free Trade Agreement ("CAFTA"). Since 2002 PRES and then later DOREX have been exploring, discovering and delineating gold deposits in El Salvador. The Company's claims under CAFTA are based on alleged breaches of international and Salvadoran law arising out of the Government's improper failure to finalize the permitting process as it is required to do and to respect the Company's and the Enterprises' legal rights to develop mining activities in El Salvador. The Company has retained the Washington, DC-based international law firm of Crowell & Moring, LLP to represent it in the arbitration. ============= J A M A I C A ============= CABLE & WIRELESS: Digicel Group Files Complaints Againts Firm ------------------------------------------------------------- Fair Trading Commission is investigating a complaint received on Monday, September 7, from mobile phone provider Digicel Group against two of its competitors, Lime (formerly Cable & Wireless Jamaica), a unit of Cable & Wireless plc, and Claro Jamaica, RadioJamaica reports. According to the report, David Miller, Executive Director of the FTC, says Digicel Group has made several allegations. "To speak to anything specific in the complaints (which) contains several allegations under the Fair Competition Act is not our policy. Our technical staff has to review it and then proceed with an investigation if we think it's necessary (as) there are several allegations involved and each has to be taken on its own merit and As reported in the Troubled Company Reporter-Latin America on September 4, 2009, RadioJamaica said Lime will team up with Claro Jamaica to cut the rates for its mobile customers to call the Claro network. The report related that the company move is an “obvious” strategy against its competitor Digicel Limited. According to the report, LIME's postpaid customers will pay JM$7 per minute instead of JM$12, a reduction of about 42%; while LIME's prepaid customers will pay JM$8 per minute to call Claro Jamaica down from either JM$10 per minute or JM$12 depending on their calling plan. Similarly, the report related, Claro's customers now pay $7 per minute to call the LIME network. The report notes that Digicel still charges its customers up to JM$17.70 per minute to call Claro or LIME. RadioJamaica said LIME and Claro Jamaica have joined forces as the battle for control of the lucrative mobile phone market heats up. Lime (formerly Cable & Wireless Jamaica) -- http://home.cwjamaica.com/-- is a provider of national and international fixed line services. The company is owned 82% by Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica Digiport International Limited, a company which provides high speed data and other telecommunications services exclusively to freezone and offshore companies. About Cable & Wireless Headquartered in London, England, Cable & Wireless plc -- http://www.cw.com/-- is an international telecommunications company. The Company offers mobile, broadband and domestic and international fixed line services to homes, small and medium-sized enterprises, corporate customers and governments. It operates in 39 countries through four major operations in the Caribbean, Panama, Macau and Monaco & Islands. It operates through two businesses: International and Europe, Asia & US. Its International business operates full service telecommunications companies through four major operations in the Caribbean, Panama, Macau and Monaco and Islands. Its Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecom services across the United Kingdom, continental Europe, Asia and the United States. Its subsidiaries include Cable & Wireless UK, Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable & Wireless (Barbados) Ltd and Monaco Telecom SAM. * * * According to Bloomberg data, Cable & Wireless plc continues to carry Moody's "Ba3"long-term corporate family rating, "B1"senior unsecured debt rating and "Ba3"probability of default rating with a stable outlook. The company continues to Standard & Poor's "BB-"long-term foreign and local issuer credit ratings and "B" short-term foreign and local issuer credit ratings. About Digicel Group Digicel Group -- http://www.digicelgroup.com-- is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state-of-the-art handsets. By offering innovative wireless services and community support, Digicel has become a leading brand across its 31 markets worldwide. Digicel is incorporated in Bermuda and now has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barths. Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu. * * * As of June 25, the company continues to carry these low ratings from Moody's: -- LT Corp Family Rating at B2 -- Senior Undecured Debt Rating at Caa1 -- probability of Default at B2 DIGICEL GROUP: Files Complaints Against LIME & Claro With FTC ------------------------------------------------------------- Fair Trading Commission is investigating a complaint received on Monday, September 7, from mobile phone provider Digicel Group against two of its competitors, Lime (formerly Cable & Wireless Jamaica), a unit of Cable & Wireless plc, and Claro Jamaica, RadioJamaica reports. According to the report, David Miller, Executive Director of the FTC, says Digicel Group has made several allegations. "To speak to anything specific in the complaints (which) contains several allegations under the Fair Competition Act is not our policy. Our technical staff has to review it and then proceed with an investigation if we think it's necessary (as) there are several allegations involved and each has to be taken on its own merit and As reported in the Troubled Company Reporter-Latin America on September 4, 2009, RadioJamaica said Lime will team up with Claro Jamaica to cut the rates for its mobile customers to call the Claro network. The report related that the company move is an “obvious” strategy against its competitor Digicel Limited. According to the report, LIME's postpaid customers will pay JM$7 per minute instead of JM$12, a reduction of about 42%; while LIME's prepaid customers will pay JM$8 per minute to call Claro Jamaica down from either JM$10 per minute or JM$12 depending on their calling plan. Similarly, the report related, Claro's customers now pay $7 per minute to call the LIME network. The report notes that Digicel still charges its customers up to JM$17.70 per minute to call Claro or LIME. RadioJamaica said LIME and Claro Jamaica have joined forces as the battle for control of the lucrative mobile phone market heats up. Lime (formerly Cable & Wireless Jamaica) -- http://home.cwjamaica.com/-- is a provider of national and international fixed line services. The company is owned 82% by Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica Digiport International Limited, a company which provides high speed data and other telecommunications services exclusively to freezone and offshore companies. About Cable & Wireless Headquartered in London, England, Cable & Wireless plc -- http://www.cw.com/-- is an international telecommunications company. The Company offers mobile, broadband and domestic and international fixed line services to homes, small and medium-sized enterprises, corporate customers and governments. It operates in 39 countries through four major operations in the Caribbean, Panama, Macau and Monaco & Islands. It operates through two businesses: International and Europe, Asia & US. Its International business operates full service telecommunications companies through four major operations in the Caribbean, Panama, Macau and Monaco and Islands. Its Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecom services across the United Kingdom, continental Europe, Asia and the United States. Its subsidiaries include Cable & Wireless UK, Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable & Wireless (Barbados) Ltd and Monaco Telecom SAM. * * * According to Bloomberg data, Cable & Wireless plc continues to carry Moody's "Ba3"long-term corporate family rating, "B1"senior unsecured debt rating and "Ba3"probability of default rating with a stable outlook. The company continues to Standard & Poor's "BB-"long-term foreign and local issuer credit ratings and "B" short-term foreign and local issuer credit ratings. About Digicel Group Digicel Group -- http://www.digicelgroup.com-- is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state-of-the-art handsets. By offering innovative wireless services and community support, Digicel has become a leading brand across its 31 markets worldwide. Digicel is incorporated in Bermuda and now has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barths. Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu. * * * As of June 25, the company continues to carry these low ratings from Moody's: -- LT Corp Family Rating at B2 -- Senior Undecured Debt Rating at Caa1 -- probability of Default at B2 DIGICEL GROUP: Eyes Expansion Into Other Latin American Countries ----------------------------------------------------------------- Digicel Group is eyeing expansion into other Latin American countries, Kejal Vyas at Dow Jones Newswires reports, citing Chief Executive Colm Delves. Costa Rica, Bahamas and smaller Pacific island nations are on the company's radar, Mr. Delves told Dow Jones Newswires in an intervew. There may also be opportunities in Belize and the Dominican Republic, where Digicel would face stiffer competition, Mr. Delves added. According to the report, Mr. Delves said the company is counting on a liberalization of Costa Rica's cellphone market, run by state-controlled Instituto Costarricense de Electricidad (ICE). Costa Rica is at the top of Digicel's expansion plans and it is expected to start offering licenses for private companies next year, Mr. Delves added. The report relates Mr.Delves said that the Bahamas government is also working on privatization and liberalization plans that could offer Digicel a foothold. Mr. Delves, the report notes, that there may also be acquisition targets in the Dominican Republic, though there are no immediate plans to push into the market. Dow Jones Newswires, citing Mr. Delves, says that expansion into other markets may be funded through debt issuance or internally, depending on the size of the market and when it decides to make the move. "If you're talking about some of the smaller markets, then, yes, we'll most likely be able to fund that internally," Mr. Delvez said, since the company has around US$700 million available in cash, the report relates. However, the report points out that taking on additional debt isn't the company's priority. Already the company has issued senior notes twice this year; in March for US$425 million and US$160 million in late June, the report adds. About Digicel Group Digicel Group -- http://www.digicelgroup.com-- is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state-of-the-art handsets. By offering innovative wireless services and community support, Digicel has become a leading brand across its 31 markets worldwide. Digicel is incorporated in Bermuda and now has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barths. Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu. * * * As of June 25, the company continues to carry these low ratings from Moody's: -- LT Corp Family Rating at B2 -- Senior Undecured Debt Rating at Caa1 -- probability of Default at B2 JAMAICA PUBLIC SERVICE: Quick Replacement of Old Generators Urged ----------------------------------------------------------------- Jamaica's energy technocrats are urging Jamaica Public Service Company Limited to speed up the replacement of its existing power- generating plants, which they contend are outdated and are contributing to the high cost of energy, Jamaica Gleaner reports. The report relates the company said that it is the Office of Utilities Regulation's responsibility for any speeding up of the phasing out of existing power-generating methodologies and stepping up energy-efficient generating capacity. "There are some clunkers in the system, units 1,2,3 and 4 in Old Harbour and the B6 at Hunts Bay have a poor heat rate and are wasting fuel, and together account for at least 300 megawatts of electricity," the report quoted Dr. Audley Darmand, engineering lecturer at the University of Technology and government adviser on energy, as saying. According to the report, Dr. Darmand is more concerned about the foreign-exchange cost to the country and long-term savings than any short-term energy price reductions for consumers. "At some point, if we bite the bullet, put new units in place and also bring LNG on stream, while the cost is going to go up for the consumer, we will begin to have less price increases, but if that is not done, it might be to the country's sorrow," the report quoted Mr. Darmand as saying. The Gleaner notes that JPSCO has not made public any timeline for changing existing mainly diesel generators at its power plants. The company, the report notes, contends that there has to be a parallel plan in tandem with the retirement of the units. The report adds that JPSCO is not willing to accept blame for the demise of the country's productive sector, said to be reeling from high electricity costs set at JM$8.93 per kilowatt hour. About JPSCO Headquartered in Kingston, Jamaica -- https://www.jpsco.com -- Jamaica Public Service Company Limited is an integrated electric utility company and the sole distributor of electricity in Jamaica. The company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. Japanese-based Marubeni Corporation owns 80 percent of the company. The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has roughly 582,000 customers who are served by a workforce of over 1,600 employees. The Company owns and operates 28 generating plants, 54 substations, and roughly 14,000 kilometers of distribution and transmission lines. * * * As reported in the Troubled Company Reporter-Latin America on March 9, 2009, Radio Jamaica said JPSCO may shutdown its operations if the company fails to settle a long-standing dispute over outstanding payments to employees. The same report said employees unions contended the payments are owed for overtime work and redundancy adjustments from 2001 to 2007, which amounts to about JM$600 million. =========== M E X I C O =========== AXTEL SAB: Launches Cash Tender Offer for 11% Sr. Notes Due 2013 ---------------------------------------------------------------- Axtel, S.A.B. de C.V. has commenced a cash tender offer for any and all of its outstanding 11% Senior Notes due 2013. In conjunction with the tender offer, the company commenced a consent solicitation with respect to certain proposed amendments to the Indenture governing the Notes. The current aggregate principal amount of the Notes outstanding is approximately US$162.5 million. The tender offer is being made pursuant to the Offer to Purchase and Consent Solicitation Statement dated September 2, 2009 and related Consent and Letter of Transmittal which set forth more fully the terms and conditions of the tender offer and consent solicitation. The consent solicitation for the Notes is scheduled to expire at 5:00 p.m., New York City time, on September 16, 2009 and the tender offer is scheduled to expire at 12:00 midnight, New York City time, on September 30, 2009, in each case unless extended or earlier terminated by the Company. Holders may only withdraw their consents and tenders before the withdrawal deadline, which will be the earlier of (i) the Consent Expiration Date and (ii) the time at which the supplemental indenture is executed and becomes effective, which is expected to be promptly following receipt of the requisite consents. The total consideration for Notes validly tendered and not withdrawn is 105.75% of the principal amount of such Notes. The Total Consideration includes a consent payment equal to 3.0% of the principal amount of Notes validly tendered and not withdrawn and as to which consents to the proposed amendments are delivered on or prior to the Consent Expiration Date. Holders who validly tender their Notes after the Consent Expiration Date and on or prior to the Offer Expiration Date will be eligible to receive an amount, paid in cash, equal to the Total Consideration less the Consent Payment. Holders whose Notes are accepted for payment will also receive accrued and unpaid interest in respect of such purchased Notes from the last interest payment date to, but not including, the applicable settlement date. Holders who tender Notes pursuant to the tender offer are obligated to deliver their consents to the proposed amendments which would amend the Indenture to eliminate substantially all of the restrictive covenants, several affirmative covenants (including certain reporting obligations) and events of default contained in the Indenture and to modify the covenant regarding mergers, consolidations and transfers of the Company's properties and assets substantially as an entirety. The consummation of the tender offer and consent solicitation is subject to the conditions set forth in the Offer to Purchase, including, among other things, the receipt by the Company of consents of Note holders representing the majority in aggregate principal amount of the Notes and the receipt by the Company of financing in an amount and on terms and conditions satisfactory to the Company in its sole discretion. For the six-month period ended on June 30, 2009, the Company generated revenues and operating income of MXN5,540.5 million (US$419.7 million) and MXN383.4 million (US$29.0 million), respectively. About Axel SAB Axtel is the second-largest, and one of the fastest growing, fixed-line, integrated telecommunications companies in Mexico, measured in revenues, EBITDA and lines in service. The company offers a wide array of services, including local and long distance telephony, broadband Internet, data and built-to-suit communications solutions in 39 cities and long distance telephone in over 200 cities to more than 828,000 business and residential customers. The company provides local, long distance, data, internet, integrated solutions and value-added communications services in 39 of the largest metropolitan areas in the country, including Mexico City, Monterrey, Guadalajara, Puebla, Toluca, Leon, Queretaro, San Luis Potosi, Saltillo, Aguascalientes, Ciudad Juarez, Tijuana, Torreon (Laguna Region), Veracruz, Chihuahua, Celaya, Irapuato, Cd. Victoria, Reynosa, Tampico, Cuernavaca, Merida, Morelia, Pachuca, Hermosillo, San Juan del Rio, Xalapa, Durango, Villahermosa, Acapulco, Mexicali, Cancun, Zacatecas, Matamoros, Nuevo Laredo, Culiacan, Mazatlan, Coatzacoalcos and Minatitlan. These 39 cities represent more than 47% of the total population of Mexico according to Mexico's Instituto Nacional de Estadistica Geografia e Informatica, INEGI. The company estimates that Axtel lines represent approximately 9.3% of the lines in service of the total addressable market in the 39 cities in which it provides local services. * * * As reported in the Troubled Company Reporter-Latin America on September 10, 2009, top rating agencies has rated the company: -- Moody's Investors Service assigned a Ba2 rating to Axtel, S.A.B. de C.V.'s proposed up to US$300 million in senior unsecured notes due 2019; -- Standard & Poor's Ratings Services said that it affirmed its ratings, including the 'BB-' corporate credit rating, on Axtel S.A.B de C.V.; and -- Fitch Ratings has assigned these ratings for Axtel, S.A.B. De C.V.: * Local currency Issuer Default Ratings at 'BB'; * Foreign currency IDR at 'BB'; * Proposed senior notes due 2019 for up to US$300 million at 'BB'; CEMEX SAB: Eyes September 23 for US$1.8 Billion Share Offer ----------------------------------------------------------- Gabriela Lopez at Reuters reports that CEMEX, S.A.B. de C.V. will likely hold its US$1.8 billion share offer on September 23. As reported in the Troubled Company Reporter-Latin America on September 9, 2009, CEMEX SAB commenced a global public offering of 1,200 million of its Ordinary Participation Certificates, directly or in the form of American Depositary Shares, plus up to an additional 180 million CPOs, directly or in the form of ADSs, to cover over-allotments. Included in the offering are 595 million CPOs that will be sold on CEMEX’s behalf by three of its subsidiaries. Of the 1,200 million CPOs being offered, it is expected that 900 million CPOs will be offered in the United States and in other countries outside Mexico and approximately 300 million CPOs will be offered in a concurrent public offering in Mexico. The transaction is subject to market and other conditions. J.P. Morgan, Citi, Santander Investment, and BBVA will act as global coordinators for the global offering. J.P. Morgan, Citi, Santander Investment, BBVA, BNP Paribas, HSBC, and RBS will act as joint bookrunning managers on the international offering. Acciones y Valores Banamex Casa de Bolsa, J.P. Morgan Casa de Bolsa, Casa de Bolsa BBVA Bancomer, Santander Casa de Bolsa, and HSBC Casa de Bolsa will act as bookrunning managers for the Mexican offering. CEMEX intends to use the net proceeds from the global offering to pay down debt as required by the financing agreement recently entered into with its creditors. About CEMEX SAB CEMEX, S.A.B. de C.V. is a Mexican corporation, a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As reported in the Troubled Company Reporter-Latin America on August 19, 2009, Fitch Ratings has affirmed these ratings of Cemex, S.A.B. de C.V.: -- Foreign currency Issuer Default Rating at 'B'; -- Local currency IDR at 'B'; -- Long-term national scale rating at 'BB-(mex)'; -- MXN5 billion Certificados Bursatiles program at 'BB- (mex)'; -- MXN30 billion Programa Dual Revolvente de Certificados Bursatiles program at 'BB-(mex)'; -- Senior unsecured debt obligations at 'B+/RR3'; -- Unsecured debt issued through the Certificados Bursatiles program at 'BB-(mex)'; -- Short-term national scale rating at 'B (mex)'; -- MXN2.5 billion short-term portion of Programa Dual Revolvente de Certificados Bursatiles program at 'B (mex)'. CORPORACION GEO: Taps Morgan Stanley, Santander to Arrange Bond --------------------------------------------------------------- Veronica Navarro Espinosa at Bloomberg News reports that Corporacion Geo SAB tapped Morgan Stanley and Banco Santander SA to arrange a dollar bond sale as the company seeks to take advantage of increasing investor demand for Latin American corporate debt. According to the report, Hans Christian Schroeder, director of investor relations, said that Corporacion Geo will begin pitching the offering to investors September 14. The report relates that an unnamed source said the company may sell debt with a maturity of five years. Bloomberg News notes that Latin American companies are stepping up overseas debt sales as rising demand for higher-yielding assets lowers borrowing costs. “Investor appetite for corporate bonds is increasing,” the report quoted Eduardo Suarez, an analyst at RBC Capital Markets in Toronto, as saying. “It’s a factor we’ve been seeing in emerging markets generally,” Mr. Suarez added. About Corporacion GEO Corporacion GEO Sab de CV, through its sunsidiaries, designs and contructs entry-level housing communities in Mexico and Chile. GEO acquires land, obtains permits, installs infrastructure improvements, and builds and markets hoising developments. As of September 10, 2009, the Company continues to carry Moody's Ba3 Issuer rating. The company also continues to carry Standard and Poor's BB- LT Issuer Credit ratings. CORPORACION GEO: Fitch Assigns 'BB-/RR3' Rating on US$200MM Notes ----------------------------------------------------------------- Fitch Ratings has assigned a 'BB-/RR3' rating to the up to US$200 million of Corporacion Geo, S.A.B. de C.V. proposed senior notes due in up to 10 years. Proceeds from the issuance will be used to refinance current debt as well as for working capital needs. Additionally, Fitch has assigned these ratings: -- Local currency Issuer Default Rating at 'B+'; -- Foreign currency IDR at 'B+'. Fitch currently rates Geo on the National Scale: -- Long term national scale rating 'BBB+(mex)'; -- Certificados Bursatiles issuances (GEO 05, GEO 05-2, GEO 06, GEO 08, GEO 09, GEO 09-2) 'BBB+(mex)'. The Rating Outlook is Stable. The ratings reflect Geo's strong market position in the highly fragmented Mexican homebuilding industry, being one of the largest homebuilders in Mexico in terms of home units sold; its geographic and product diversification, significant land reserve using different acquisition schemes and its adequate financial profile. Geo's ratings are constrained by its dependency on financing government-related mortgage funding of low-income homes and high working capital requirements related to the operation. The 'BB-/RR3' rating of the proposed notes reflects good recovery prospects in the range of 50%-70% given default. The ratings also incorporate an adverse economic environment characterized by credit restrictions, which could affect Geo's financial position. The rating also factors in refinancing risk, given that short-term debt represents 69% of the total debt. On a pro-forma basis short-term debt will decrease close to 43% considering the proposed senior notes issuance, of which slightly more than half relates to bridge loans, generally used by Mexican homebuilders to fund construction projects. Geo maintains an important market share position within a very competitive and fragmented sector, being one of the largest homebuilders in Mexico in terms of number of units sold. During 2008, the company sold 51,800 homes. Fitch considers that Geo's geographic diversification with presence in 50 cities in Mexico, along with a sales mix at different selling prices, mitigates the inherent risks associated with operating in a specific region and commercializing one single type of product. As of June 30, 2009, the company had an important land reserve equivalent to 320,371 homes, which represents around 4.5 years in terms of output. Land reserves have been built up using different schemes: own, outsourcing, purchase option, and a joint-venture with Prudential among other funds. Fitch believes the aforementioned provides Geo flexibility by reducing working capital requirements and freeing cash flow for other uses. In the next few years, Fitch expects slower revenue growth rates and operating margin contraction in relation to historical trends given the company's strategy to increase its sales mix toward lower-value homes. Historically, the company has showed ability to improve its revenue mix by home category, operating efficiencies between the production-selling cycle, as well as strict expense control. From 2003 to 2008 the company showed a positive performance, increasing the number of homes sold from 29,520 to 51,879, while revenues and operating income registered a compounded annual growth rate of 17.1% and 18.2%, respectively. Additionally, EBITDA margin slightly strengthened to 23.6% from 22.6% during the same period. Fitch expects total debt to EBITDA to be approximately 2.5 times (x) considering the proposed transaction and the adoption of INIF- 14, starting 2010, which recognizes revenues under the time-of- sale method rather than Geo's historical use of percentage-of- completion method. Interest coverage for 2008 and last-12-months (LTM) ended June 30, 2009 was 2.7x and 2.6x, respectively, and total debt to EBITDA for the same period was 2.0x and 2.1x (including factoring in accounts receivables with recourse and still recognizing revenue under the time-of-sale method). Geo's credit metrics remained relatively stable during the period between 2003 and the first quarter of 2007 (1Q'07). Interest coverage, measured as EBITDA to interest expense, registered values of around 3.1x and total debt to EBITDA of 1.5x. Since 3Q'07 these indicators weakened as a result of debt increases in a higher proportion than the EBITDA growth. At June 30, 2009, Geo had cash balances of $2.773 million, which helps mitigate, to some extent, the refinancing risk given the large portion of short-term debt that the company had. At the same date, on-balance-sheet debt was $8.883 million (including factoring in accounts receivables with recourse), representing a 37% increase from the same period in 2008, reflecting higher working capital requirements associated with the normal business operation, acquisition of land reserve, as well as the homebuilding factory and megaproject investments. Although at the second quarter of the present year, the company had an important portion of its debt classified as short-term (69%), which Fitch considers high, the proposed issuance of senior notes should improve its debt maturity profile and gives Geo more financial flexibility. Geo is a totally integrated active promoter of urban development participating in all aspects of promotion, design, construction and commercialization primarily of affordable entry-level, middle- income, and to a lesser extent the residential home segments. Corporacion Geo began operations in 1973 with development, construction and office promotion as well as industrial and residential projects. CORPORACION GEO: Moody's Assigns 'Ba3' Rating on Senior Debt ------------------------------------------------------------ Moody's Investors Service assigned a Ba3 global scale foreign currency rating to Corporacion GEO, S.A.B. de C.V.'s proposed senior unsecured debt issuance of approximately US$200 million. Concurrently, Moody's affirmed the company's A3.mx national scale MTN program rating (Ba3 global scale local currency), as well as the short-term MX-2 national scale issuer rating (Not Prime global scale local currency) and long-term A3.mx national scale issuer rating (Ba3 global scale local currency). The rating outlook is stable. The new notes will have a maturity of 5-10 years, will rank pari passu with other unsecured debt and will be guaranteed by all of the company's wholly owned subsidiaries. In addition, the company will hedge the interest and a portion of the principal against foreign exchange risk. Proceeds from this new issuance will be used to refinance the firm's sizable short-term debt (currently over 60% of total debt), and for working capital needs. GEO is a homebuilder engaged in the development, construction, marketing and sale of affordable housing developments in Mexico. The stable rating outlook is based on Moody's determination that GEO's sound management team executes strong internal controls, construction expertise and efficient methods. Moody's believes that GEO has strong franchise value, with a well-recognized brand and a valuable land reserve strategy. The stable outlook also reflects Moody's expectation that GEO will at least maintain its fixed charge coverage ratio and effective leverage, continue to improve efficiencies in land development and continue to access the public capital markets. Furthermore, Moody's also expects that GEO will continue to focus on targeting its current product mix, while maintaining high quality construction and its market leadership. Furthermore, the stable outlook reflects the terming out of a substantial amount of GEO's short-term debt via the proposed US dollar bond issuance. According to Moody's, these ratings reflect GEO's position as one of the largest publicly traded homebuilders in Mexico in terms of housing units sold, as well as its conservative capital structure and solid profitability and liquidity metrics. It is a leading housing developer in Mexico, concentrating on the low- and middle- income housing sectors (where the strongest demand lies). The company has an 8% market share in a very fragmented market. In addition, the ratings reflect GEO's efficient controls and construction expertise, well executed land reserve strategy and brand recognition. These positive rating factors are mitigated by GEO's reliance on the Mexican economic and political environment, the government's current strong support for housing and the high costs of land and land development. Furthermore, the housing development market is fragmented, and homes are built on a speculative basis. GEO has 100% of the risk of finding the home buyers, while funding of homes remains concentrated with INFONAVIT, FOVISSSTE and Sociedad Hipotecaria Federal. The company also uses modest levels of total debt with approximately 64% of its debt being short-term debt, which can create liquidity and funding problems, however the proposed emission should bring these levels down significantly and enhance the overall liquidity profile of the firm. Moody's notes that GEO carries cash levels to sufficiently cover its corporate short-term debt (short-term debt excluding debt tied to its construction projects). Finally, GEO's new notes will be held and must be repaid in U.S. dollars while GEO generates cash in MX pesos which, despite the partial hedge, creates foreign exchange risk. Moody's stated that rating improvements will be based on GEO maintaining its franchise leadership while improving its solid credit statistics, which, Moody's believes, will take time. Rating improvements could result from bringing Total Debt/EBITDA closer to 1X, Total Debt/Total Assets closer to 11%, fixed charge coverage closer to 9X (defined as recurring cash EBITDA over cash interest expense), while at a minimum having EBITDA margins between 20% to 25%. Downward rating pressure would result from substantial missteps in its growth strategy. For example, GEO not being able to successfully complete its large development projects and/or problems with the construction of a fully automated factory for prefabricated components for home construction. In addition, downward rating movements will be predicated upon bringing total debt to total asset levels closer to 35%, with EBITDA margins falling below 15% and fixed charge coverage falling consistently below 5X (defined as recurring cash EBITDA over cash interest expense). Increased costs of land and land development would also result in negative rating pressure, as would an adverse shift in Mexican governmental housing policy. These ratings were assigned with a stable outlook: * Corporacion GEO S.A.B de C.V. -- proposed long-term Ba3 global scale foreign currency senior unsecured debt rating These ratings were affirmed with a stable outlook: * Corporacion GEO S.A.B de C.V. -- A3.mx national scale MTN rating, and Ba3 global scale local currency MTN rating * Corporacion GEO S.A.B de C.V. -- Long-term A3.mx national scale issuer rating, and Ba3 global scale local currency issuer rating * Corporacion GEO S.A.B de C.V. -- Short-term MX-2 national scale issuer rating, and Not Prime global scale local currency issuer rating Moody's last rating action with respect to GEO was on April 17, 2009, when Moody's assigned an A3.mx national scale and Ba3 global scale local currency rating, to GEO's MXP $2 billion MTN program. Corporacion GEO is a publicly traded, fully integrated homebuilder engaged in the development, construction, marketing and sale of affordable housing developments in Mexico. The firm reported total assets of approximately MXN27,288 million and total equity of approximately MXN11,537 million at June 30, 2009. VITRO SAB: Discloses Restructuring Proposal for Bondholder Group ---------------------------------------------------------------- Vitro, S.A.B. de C.V., as part of the company's discussions with its creditors to restructure its debt, presented a restructuring proposal to the representatives of holders of its three series of Senior Notes, aggregating US$1,216,000,000 outstanding principal amount, on August 5, 2009. The disclosure of the restructuring proposal by the company is in accordance with an agreement, dated August 4, 2009, with representatives of holders of the Senior Notes. The proposal provided for a restructuring of approximately US$1,500,000,000 of the company's debt, including the Senior Notes, in exchange for US$485,000,000 of new unsecured notes and US$75,000,000 of new senior subordinated notes. Under the proposal, the new unsecured notes would have an eight-year term with cash interest payments increasing from 5% to 7% over the term of the notes, and the new senior subordinated notes would have a nine-year term with cash interest payments of 7% or paid in-kind interest payments of 7%, based upon future levels of liquidity of the Company. Approximately US$300,000,000 of the company's secured debt, off balance sheet securitization facilities, and certain unsecured debt mostly at the subsidiaries level including foreign subsidiaries, would not be affected by the proposed restructuring. The company is continuing its discussions with holders of the Senior Notes as well as other creditors to achieve an overall restructuring of its indebtedness based upon the company's available debt capacity and competitive industry dynamics. Vitro SAB has a solid franchise in the markets in which it operates. Though the financial restructuring process will continue for a number a months, Vitro has the financial wherewithal to continue to provide superior products and will continue to provide uninterrupted delivery of its goods during this time. Vitro SAB expects the result of this financial restructuring to provide it with increased financial flexibility and a much improved liquidity profile and balance sheet. The Company has several key goals for its restructuring, including: * Providing a fair recovery for unsecured creditors in light of the Company's available debt capacity and competitive industry dynamics - Sized based on pro forma 2009 anticipated financial performance. - All stakeholders must be mindful of the competitive dynamics within the industry and recognize that the company must emerge with a capital structure that provides it with the appropriate financial flexibility to effectively compete. * Avoiding a contentious and prolonged Concurso Mercantil process which would damage the overall value of the business and impair the position of all stakeholders - The financial restructuring must be driven at the Vitro S.A.B. level. Value destruction if opco enters insolvency process. * Achieving a liquidity and debt service profile that allows the Company to withstand potential pricing pressures that have historically occurred during high capacity / lower demand cycles. * Emerging from the restructuring process with a viable capital structure that will allow the company to manage the current downturn and compete effectively. The following presentation outlines the restructuring proposal developed by the company and it's advisors. The Restructuring Proposal is intended to summarize certain terms with respect to a potential consensual restructuring between Vitro S.A.B and its Impaired Creditors. Creditors Summary (US$ in millions) ----------------------------------- Unpaired Creditors Impaired Creditors Face Amount Face Amount ----------- ----------- Secured Debt US$139.2 Vitro SAB Unsecured Debt US$56.8 Other Unsecured Debt $84.6 Derivates $240.2 Off-balance Sheet Debt $73.8 Vitro SAB Unsecured Notes due 2012 300.0 8.625% Senor Notes due 2012 216.0 11.75% Senior Notes due 2013 700.0 9.125% Senior Notes due 2017 700.0 ----- Total 1,216.0 -------------------------- ----------------------------- Total – Unimpaired Total - Impaired Creditors $297.6 Creditors $1,513.0 The proposal provides a fair recovery for all Impaired Creditors by offering: * Conversion of all Impaired Creditors into: -- US$485.0 million of new unsecured notes -- Eight-year term -- Cash interest rate of 5.0% in years 1 - 2 -- Cash interest rate of 6.0% in years 3 - 4 -- Cash interest rate of 7.0% in years 5 - 8 * US$75.0 million in new senior subordinated notes -- Nine-year term -- Cash interest rate of 7.0% when balance sheet cash exceeds US$75.0 million or paid in-kind interest rate of 7.0% when balance sheet cash is less than US$75.0 million. Term Sheet ---------- * New Senior Unsecured Notes Vitro Proposal Amount = US$485.0 mm of New Senior Unsecured Notes Tenor = 8 years Amort. = 8 year bullet Currency = USD Pricing = 5.0% in years 1 and 2 = 6.0 in years 3 and 4 = 7.0 in years 5 through 8 Colateral = None Covenants Events of Default & Other Terms = Customary TBD * New Senior Subordinate Notes Vitro Proposal Amount = US$75.0 mm of New Senior Subordinate Notes Tenor = 9 years Amort. = 9 year bullet Currency = USD Pricing = Cash Interest ratte of 7.0% when balance sheet cash exceeds US$75.0 million or PIK rate when balance sheet cash is less than $75.0 million Colateral = None Covenants Events of Default & Other Terms = Customary TBD About Vitro Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. * * * In June 30, 2009, Galaz, Yamazaki, Ruiz Urquiza, S.C., member of Deloitte Touche Tohmatsu and C.P.C. Jorge Alberto Villarreal in Monterrey, N.L., Mexico raised substantial doubt about the Company's ability to continue as a going concern after auditing financial results for the period ended Dec. 31, 2007, and 2008. The auditors pointed out to the Company's net loss and its non- compliance with covenants related to its long-term debt obligations. ==================== P U E R T O R I C O ==================== CARIBE MEDIA: S&P Puts 'B' Corp. Rating on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings for San Juan, Puerto Rico-based directory publisher Caribe Media Inc., including the 'B' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch listing reflects the near-term refinancing risk surrounding approximately $134 million of debt outstanding as of June 30, 2009, which matures Sept. 30, 2009," explained Standard & Poor's credit analyst Ariel Silverberg. This debt is currently held at LIM Finance, an indirect subsidiary of Local Insight Media Holdings L.P., Caribe's direct parent. There is also $108 million of debt outstanding at LIM Finance II (also an indirect subsidiary of LIMH), which matures in June 2010. It is S&P's belief the company would seek to refinance both pieces of debt at the same time. LIMH is owned by Welsh, Carson, Anderson & Stowe, Spectrum Equity Investors, and certain members of management. LIMH, along with separate WCAS funds, owns Local Insight Media Holdings Inc., which owns Local Insight Regatta Holdings Inc. Holdings also owns the whole business securitization, consisting of ACS Media (the incumbent yellow page publisher in Alaska), CBD Media (the incumbent yellow page publisher in Cincinnati), and HYP Media (the incumbent yellow page publisher in Hawaii). Given the strategic relationships between, and common management and ownership of, the various operating entities, S&P views the rating of each individual entity based on a global view of the creditworthiness of all other entities. S&P expects decisions in support of the owners' operating and financial strategies will be made with a view toward the collective group of companies. The refinancing risk at Caribe affiliate LIM Finance is of particular concern given S&P's expectation for a potential near- term breach of the leverage covenant under the WBS of Holdings. The WBS funds debt service at its intermediate holding company, LIM Finance, which faces the refinancing event. The WBS is collateralized by assets at ACS Media, CBD Media, and HYP Media. Lower retained collections, primarily from HYP and CBD, is the primary cause of the lower than expected net securitizable cash flow, which is used to determine leverage for purposes of the covenant. While S&P expects the company to utilize an equity cure to avoid a breach of the leverage trigger (which S&P expects to be funded through cash flow from LIRH and/or Caribe), this near-term event could create challenges for LIMH to obtain external refinancing at favorable terms. While the LIM Finance and LIM Finance II debt are guaranteed by investment funds of owner WCAS, the guarantee would only likely be utilized in the event LIM Finance and LIM Finance II cannot attract sufficient external capital to refinance its maturing debt. In resolving S&P's CreditWatch listing, S&P will assess the terms of any new planned financing at LIM Finance and LIM Finance II. In the event management is unable to obtain external financing and requires support from owner WCAS, the rating would likely go lower by at least a notch, given S&P's belief that this would be indicative of an inability of the LIM companies to attract sufficient levels of external capital to support its capital structure. S&P will also address S&P's expectation for consolidated operating performance over the intermediate term in resolving the CreditWatch listing. DORAL FINANCIAL: Possible Losses Prompt Moody's to Junk Rating -------------------------------------------------------------- Moody's Investors Service downgraded the senior unsecured rating of Doral Financial Corporation to Caa1 from B2. Doral Financial Corporation is the immediate holding company of Doral Bank, Puerto Rico and is a majority-owned subsidiary of Doral Holdings, LLC. Doral Bank, Puerto Rico is unrated. In the same rating action, the outlook on Doral Financial Corporation was changed to negative from stable. Doral Financial Corporation is referred to hereafter as 'Doral'. The downgrade and negative outlook reflects Moody's view that the company's Doral Bank subsidiary is likely to report losses for the foreseeable future, and that this bank subsidiary may not generate sufficient income in future periods to utilize its current tax loss carry-forwards. If this scenario were to come to pass, Doral Bank would not benefit from tax offsets that would otherwise serve to partially reduce the amount by which capital is depleted. Moody's recognizes that currently the bank subsidiary's regulatory capital ratios and ratio of tangible common equity to risk- weighted assets are relatively high. However, a protracted period of losses, particularly if the losses were not tax-affected, would erode the company's capital base, the rating agency added. This would put substantial stress on its parent, Caa1-rated Doral Financial Corporation. Moody's expectation of continuing losses at Doral is driven in part by the rating agency's anticipation of increased losses being incurred on the construction and commercial real estate mortgages, and the on-going recession in Puerto Rico that is now entering its fourth year. Downgrades: Issuer: Doral Financial Corporation -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 from B2 Outlook Actions: Issuer: Doral Financial Corporation -- Outlook, Changed To Negative From Stable Doral Financial Corporation is headquartered in San Juan, Puerto Rico and reported total assets of $9.8 billion at June 30, 2009. The last rating action on Doral Financial Corporation was on March 17, 2009, when Moody's downgraded the company's senior unsecured rating to B2 from B1 and maintained the stable outlook on the company. FIRSTBANK PUERTO: S&P Downgrades Counterparty Credit Rating to 'B' ------------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its counterparty credit rating on FirstBank Puerto Rico to 'B' from 'BB+'. The outlook is negative. "The downgrade reflects S&P's heightened concern over ongoing rapid deterioration in credit quality, weakening capital ratios, and S&P's expectation for continued net operating losses," said Standard & Poor's credit analyst Lidia Parfeniuk. S&P has factored into its expectations higher losses and the need for reserve build, which will further contribute to the bank's current negative loss position. In S&P's view, the bank's risk-adjusted capital ratios are only adequate, and remain under considerable pressure. Moreover, S&P believes that FirstBank's willingness to continue lending, even if on a selective basis, to the commercial real estate sector in recession stricken Puerto Rico vis-à-vis local peers might increase the need for further reserve build and potentially higher charge-offs in future. The negative outlook reflects S&P's belief that the ratings will remain under pressure in the current environment. S&P expects continued credit quality weakness across all portfolios locally and in the U.S. If the company returns to profitability because of an improvement in credit quality, then S&P could revise the outlook to stable; however, S&P views this as unlikely given the continued general negative outlook for the sector. ================= V E N E Z U E L A ================= GENERAL MOTORS: Unit Plant Shutdown Cut Output by 25,000 Vehicles ----------------------------------------------------------------- General Motors Co.’s Venezuelan unit lost production of 25,000 vehicles because of a three-month plant shutdown caused by government currency rules, Matthew Walter and Daniel Cancel at Bloomberg News report, citing General Motors Venezolana CA President Ronaldo Znidarsis. “That’s a big loss by any manufacturer,” Mr. Znidarsis told Bloomberg News in a telephone interview. As reported in the Troubled Company Reporter-Latin America on September 8, 2009, The Associated Press said that General Motors Co.'s Venezuela affiliate restarted assembling passenger cars on September 7, after keeping the plant idle for 2 1/2 months. The report related that the plant have been closed because President Hugo Chavez's government has agreed to sell the company the U.S. dollars it needs to import car parts. According to the report, Mr. Znidarsis said GM plans restart the plant with 1,700 of the plant's 2,900 employees. The AP recalled that GM halted operations at the plant in June, saying the company had accumulated some US$1.15 billion in debts to foreign providers. Mr. Znidarsis told The AP in an interview that the company is still struggling with what he called "significant" debts, but he said GM received assurance from the government that it would receive enough hard currency in coming months to reduce them. According to Bloomberg News, GM Venezuela built up a US$1.2 billion debt with suppliers, including the parent company’s South Korean unit, GM Daewoo Auto & Technology Co., and Japan’s Isuzu Motors Ltd. Mr. Znidarsis, Bloomberg News relates, said that the GM unit may need to seek “alternatives” for the 1,000 employees who haven’t been called back and continue to be paid their salaries, as Venezuelan law prohibits Detroit-based GM from laying off workers. “If we are going to be working for an extended period on one shift, it’s just impossible to keep 1,000 people on the payroll without having them work,” the report quoted Mr. Znidarsis as saying. Meanwhile, the report notes that Mr. Znidarsis said General Motors doesn’t have any plans to leave Venezuela. “We’ve been here for 60 years. If you look at the Venezuelan automobile industry, you’re going to see a trend of ups and downs. GM has learned to operate in the country,” Mr. Znidarsis added. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of US$6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of US$3.3 billion in the year-ago quarter. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors' restructuring officer. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) * VENEZUELA: Aims to Finish Carabobo Round This Year ----------------------------------------------------- Venezuela may award joint-venture contracts this year to develop the Carabobo area of the Orinoco Belt, following several delays, Stephen Bierman and Steven Bodzin at Bloomberg News report, citing Oil Minister Rafael Ramirez. “We are expecting to finish the process by the end of this year,” Mr. Ramirez told the news agency in an interview. According to the report, Chevron Corp., China National Petroleum Corp., Total SA and 16 other companies paid US$2 million each for the right to bid to become minority partners in three joint ventures to pump tar -- like crude and refine it into lighter oil for export. The report relates that the Carabobo blocks have combined proved reserves of about 15 billion barrels, or about half the U.S.’s proven reserves. Bloomberg News notes that the auction for minority stakes was announced in October, with the bids originally scheduled to be reviewed by April 16. The report relates President Hugo Chavez said that Venezuela is in “no big hurry” to complete the process. * * * 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 =============== * LATAM: Together With the Caribbean See Economy Grow 4.1% ---------------------------------------------------------- The Latin America and the Caribbean economy grew an average 4.1% from 1950-2008, while its average annual inflation rate from 1970- 2008 reached 15.4%. This is part of the data gathered in the Statistical Booklet No 37. "Latin America and the Caribbean: Historical series of economic statistics, 1950-2008", published by the Economic Commission for Latin America and the Caribbean (ECLAC). The publication provides macroeconomic data from the past six decades based on countries' records of national accounts, balance of payments, terms of trade, consumer price index and the price of commodity exports. The data contributes to the analysis and comprehension of the evolution of the region's economy and reflects the profound changes that often took place during this extensive period of time. The statistics reveal the volatility of regional economic growth, which averaged 5.9% in the seventies and only 1.4% in the eighties. There is a prevalence of high inflation in Latin America during most of the past decades. Based on countries' Consumer Price Index (CPI) records, the average annual inflation in the region during the almost 40 years comprised between 1970 to 2008 is estimated to be 15.4%. The highest inflation in the region was recorded in 1990, with an annual average of 72.8%. The lowest was in 1981, with an average -27.9%. Latin America's terms of trade have also been highly volatile. In the fifties they diminished 31.2%, while in the seventies they rose 46.8%, and again dropped 14.2% in the eighties before rising again in the nineties. * LATAM: Fitch Lists National Rating Changes for April ------------------------------------------------------- This is the comprehensive list of Fitch Ratings' 34 Latin America national scale rating changes for the month of August, which include: upgrades, downgrades, Rating Outlook and Rating Watch revisions, and withdrawn ratings. These rating changes were previously announced via separate press releases in Spanish or Portuguese. Fitch has upgraded these national ratings: BAC BAMER, S.A. (Honduras) -- National long-term rating to 'AAA(hnd)' from 'AA+(hnd)'; Oulook remains Stable. * (Rating action took place on Aug. 4, 2009.) Banco de America Central (Nicaragua) -- National long-term rating to 'AA+(nic)' from 'AA(nic)'; Oulook remains Stable. * (Rating action took place on Aug. 4, 2009.) Banco de America Central (El Salvador) -- National long-term rating to 'AAA(slv)' from 'AA+(slv)'; Oulook remains Stable. * (Rating action took place on Aug. 4, 2009.) Inversiones Financieras Banco de America Central y Subsidiarias (El Salvador) -- National long-term rating to 'AAA(slv)' from 'AA+(slv)'; Oulook remains Stable. * (Rating action took place on Aug. 4, 2009.) Banco Internacional (Chile) -- National long-term rating to 'A(chl)' from 'A-(chl)'; Oulook revised to Stable from Positive. -- Subordinated hybrid capital instruments series A national long-term rating to 'A-(chl)' from 'BBB+(chl)'; -- Subordinated hybrid capital instruments series B national long-term rating to 'A-(chl)' from 'BBB+(chl)'; * (Rating action took place on Aug. 5, 2009.) Banco de Venezuela (Venezuela) -- National long-term rating to 'AAA(ven)' from 'AA(ven)'; -- National short-term rating to 'F1+(ven)' from 'F1(ven)'; * (Rating action took place on Aug. 19, 2009.) Empresa de Transporte de Pasajeros Metro S.A. (Metro) (Chile) -- Senior unsecured bonds series H (con cargo linea de bonos No. 515) national long-term rating to 'AA(chl)' from 'AA-(chl)'; -- Senior unsecured bonds series I (con cargo linea de bonos No. 515) national long-term rating to 'AA(chl)' from 'AA-(chl)'; * (Rating action took place on Aug. 21, 2009.) Aluar Aluminio Argentino S.A. (Aluar) (Argentina) -- National long-term rating to 'AA-(arg)' from 'A+(arg)'; Oulook remains Stable. -- ONs Clase 1 series I national long-term rating to 'AA-(arg)' from 'A+(arg)'; * (Rating action took place on Aug. 28, 2009.) Forum Serv. Financieros (Chile) -- National long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser E - (con cargo a linea de bonos No. 423) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser F - (con cargo a linea de bonos No. 461) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser G - (con cargo a linea de bonos No. 461) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser H - (con cargo a linea de bonos No. 498) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser I - (con cargo a linea de bonos No. 498) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser J - (con cargo a linea de bonos No. 513) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser K - (con cargo a linea de bonos No. 513) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser L - (con cargo a linea de bonos No. 513) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser N - (con cargo a linea de bonos No. 535) national long-term rating to 'AA(chl)' from 'A+(chl)'; -- Senior unsecured bonds ser O - (con cargo a linea de bonos No. 535) national long-term rating to 'AA(chl)' from 'A+(chl)'; * (Rating action took place on Aug. 31, 2009.) Fitch has also downgraded these ratings: Municipio de Juarez, Chih. (Mexico) -- National long-term rating to 'AA-(mex)' from 'AA(mex)'; assigned Outlook Stable; * (Rating action took place on Aug. 3, 2009.) Concesionaria Zonalta, SA de CV Autopista El Altar- Santa Ana (Mexico) -- Toll road securitization ZONALCB 06U national long-term rating to 'B-(mex)' from 'A-(mex)'; Outlook remains Negative; * (Rating action took place on Aug. 3, 2009.) Almacenadora Accel, S.A. de C.V. (Mexico) -- National long-term rating to 'A-(mex)' from 'A+(mex)'; assigned Outlook Negative; -- National short-term rating to 'F2(mex)' from ' F1(mex)'; * (Rating action took place on Aug. 6, 2009.) Metrofinanciera METROCB032_033 (F#374) (Mexico) -- METROCB032_033 (F#374) construction bridge loan series 2003 national long-term rating to 'D(mex)' from 'CC(mex)'; removed from Rating Watch Negative; -- METROCB032_033 (F#374) construction bridge loan series 2003-2 national long-term rating to 'D(mex)' from 'CC(mex)'; removed from Rating Watch Negative; * (Rating action took place on Aug. 6, 2009.) Metrofinanciera MTROCB07U (F#297) (Mexico) -- Residential mortgage-backed securitization series MTROCB 07U national long-term rating to 'AA-(mex)' from 'AAA(mex)'; removed from Rating Watch Negative; * (Rating action took place on Aug. 10, 2009.) Metrofinanciera MTROCB08U (F#339) (Mexico) -- residential mortgage-backed securitization series MTROCB 07U national long-term rating to 'AA-(mex)' from 'AAA(mex)'; removed from Rating Watch Negative; * (Rating action took place on Aug. 10, 2009.) Municipio de Toluca, E.M. (Mexico) -- National long-term rating to 'A(mex)' from 'AA-(mex)'; assigned Outlook Stable; * (Rating action took place on Aug. 13, 2009.) Autopista Tenango-Ixtapan de la Sal, SA de CV (ATISA) (Mexico) -- Toll road securitization TENANCB 05U national long-term rating to 'AA-(mex)' from 'AA+(mex)'; remains on Outlook Stable; * (Rating action took place on Aug. 13, 2009.) Promotora Casarapa, C.A. (Venezuela) -- National long-term rating to 'BB(ven)' from 'BBB(ven)'; * (Rating action took place on Aug. 17, 2009.) Venequip, S.A. (Venezuela) -- National long-term rating to 'BBB(ven)' from 'A-(ven)'; -- National short-term rating to 'F3(ven)' from 'F2(ven)'; * (Rating action took place on Aug. 17, 2009.) Estado de Michoacan (Mexico) -- National long-term rating to 'A-(mex)' from 'A+(mex)'; assigned Outlook Stable; -- MICHCB07U series 2007 national long-term rating to 'AA+(mex)' from 'AAA(mex)'; assigned Outlook Stable; -- Bank Loan Banobras series 2007 national long-term rating to 'AA(mex)' from 'AA+(mex)'; assigned Outlook Stable; -- Bank Loan Banorte series 2007 national long-term rating to 'AA(mex)' from 'AA+(mex)'; assigned Outlook Stable; -- Bank Loan Dexia series 2007 national long-term rating to 'AA(mex)' from 'AA+(mex)'; assigned Outlook Stable; * (Rating action took place on Aug. 18, 2009.) Su Casita HSCCB04_042 (F#46) (Mexico) -- Construction bridge loan series 2004-2 national long-term rating to 'B(mex)' from 'BBB(mex)'; remains on Rating Watch Negative. * (Rating action took place on Aug. 20, 2009.) Corporacion ILG Internacional, S.A. (Costa Rica) -- National long-term rating to 'A-(cri)' from 'A+(cri)'; Outlook revised to Stable from Negative; -- Bonos Serie T national long-term rating to 'A-(cri)' from 'A+(cri)'; -- Bonos Serie U national long-term rating to 'A-(cri)' from 'A+(cri)'; * (Rating action took place on Aug. 27, 2009.) Unidas S.A. (Brasil) -- National long-term rating to 'BBB(bra)' from 'A-(bra)'; Assigned Outlook Stable; -- Debentures - 1st Issue series Unica national long-term rating to 'BBB(bra)' from 'A-(bra)'; * (Removed from Rating Watch on Aug. 27, 2009.) Corporacion GEO, S.A. de C.V. (Mexico) -- National long-term rating to 'BBB+(mex)' from 'A-(mex)'; Outlook revised to Stable from Negative; * (Removed from Rating Watch Negative on Aug. 28, 2009.) Geo GEOCB04_05 (F#80373) (Mexico) -- Trade receivables series 2004 national long-term rating to 'AA-(mex)' from 'AA(mex)'; assigned Outlook Stable. -- Trade receivables series 2005 national long-term rating to 'AA-(mex)' from 'AA(mex)'; assigned Outlook Stable. * (Removed from Rating Watch Negative on Aug. 28, 2009.) Transa Securitizadora - PS 2005-7 (Chile) -- PS 2005-7 residential mortgage-backed securitization series 2005-7 issue detail A national long-term rating to 'A(chl)' from 'AA(chl)'; remains on Rating Watch Negative. -- PS 2005-7 residential mortgage -backed securitization series 2005-7 issue detail B national long-term rating to 'BBB(chl)' from 'A(chl)'; remains on Rating Watch Negative. * (Rating action took place on Aug. 31, 2009.) Transa Securitizadora - PS 2007-8 (Chile) -- PS 2007-8 residential mortgage -backed securitization series 2007-8 issue detail A national long-term rating to 'BBB(chl)' from 'A(chl)'; remains on Rating Watch Negative. -- PS 2007-8 residential mortgage -backed securitization series 2007-8 issue detail B national long-term rating to 'BBB(chl)' from 'A(chl)'; remains on Rating Watch Negative. -- PS 2007-8 residential mortgage -backed securitization series 2007-8 issue detail C national long-term rating to 'B(chl)' from 'BB(chl)'; remains on Rating Watch Negative. * (Rating action took place on Aug. 31, 2009.) Fitch has made these Outlook and Rating Watch revisions: Transa Securitizadora - PS 2004-6 (Chile) -- Residential mortgage-backed securitization series 2004-6 B1 & B2 national long-term rating 'AA(chl)'; Outlook revised to Negative from Stable. * (Rating action took place on Aug. 3, 2009.) Liberty Compania de Seguros Generales S.A. (Chile) -- National Insurer Financial Strength rating 'AA-(chl)'; Outlook revised to Negative from Stable. * (Rating action took place on Aug. 5, 2009.) ING Seguros de Vida S.A. (Chile) -- National Insurer Financial Strength rating 'AA+(chl)'; placed on Rating Watch Negative. * (Outlook Stable removed on Aug. 5, 2009.) Ruta de la Araucania Sociedad Concesionaria S.A. (Chile) -- Series secured notes A1 national long-term rating 'AA+(chl)'; assigned Outlook Negative. -- Series secured notes A2 national long-term rating 'AA+(chl)'; assigned Outlook Negative. * (Removed from Rating Watch Negative on Aug. 7, 2009.) Su Casita HSCCB04_042 (F#46) (Mexico) -- Construction bridge loan series 2004-1 national long-term rating 'AAA(mex)'; remove from Rating Watch Negative. * (Rating action took place on Aug. 20, 2009.) Estado de Veracruz (Mexico) -- National long-term rating 'A(mex)'; placed on Rating Watch Negative. * (Outlook Stable removed on Aug. 28, 2009.) Fitch has affirmed and withdrawn these ratings: Promotora de Casas y Edificios, S.A. de C.V. (Mexico) -- National long-term rating 'C(mex)'; * (Rating action took place on Aug. 13, 2009.) *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, Marites O. Claro, Joy A. Agravente, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *