/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090923.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, September 23, 2009, Vol. 10, No. 188 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Receiver Seeks Court Permission to Sell Yacht STANFORD INT'L: Antigua Delays Extradition in Firm's Fraud Case * ANTIGUA & BARBUDA: Delays Extradition in Stanford's Fraud Case A R G E N T I N A ARCOS DORADOS: Moody's Assigns 'Ba2' Rating on Senior Notes CAFE 51: Trustee Verifying Proofs of Claim Until October 15 COLINAS DEL SUR: Asks for Preventive Contest FIAMMA SA: Trustee Verifying Proofs of Claim Until October 16 IGLA CORP: Creditors' Proofs of Debt Due on October 22 LO COCO: Trustee Verifying Proofs of Claim Until November 20 NUEVOS LOCALES: Creditors' Proofs of Debt Due on December 2 TRANSPORTADORA DE GAS: Reaches Restructuring Deal W/ 5 Creditors UNION CEL: Creditors' Proofs of Debt Due on October 15 B E R M U D A CENTRAL EUROPEAN: Posts Result of Tender Offer CENTRAL EUROPEAN: Has Deal to Acquire 55% Stake in bTV KINGATE EURO: Supreme Court Enters Wind-Up Order KINGATE GLOBAL: Supreme Court Enters Wind-Up Order MILACRON ASSURANCE: Contributories Meeting Set for October 9 VALIDUS HOLDINGS: To Release 3Q Financial Results on November 5 B R A Z I L BANCO NACIONAL: May Support Steel Mergers in Brazil BRF-BRASIL FOODS: Cut to "Hold" at Citigroup on Valuation GERDAU AMERISTEEL: To Adopt Int'l Financial Reporting Standards JBS SA: To Delay U.S. Unit Initial Public Offering to January LUPATECH SA: Moody's Downgrades Corporate Family Rating to 'B1' SANEPAR: Controlling Shareholder Seeks to Increase Stake C A Y M A N I S L A N D S AI-LONG/SHORT: Shareholders' Final Meeting Set for September 25 BGI ALPHA: Creditors' Proofs of Debt Due on September 30 BROOKLINE AVENUE: Claims Bar Date Expired September 16 BWGLOBAL GLOBAL: Claims Bar Date Expired September 16 CASAM CFM: Members to Receive Wind-Up Report on September 24 CASAM CONTEXT: Members to Receive Wind-Up Report on September 24 CASAM LUCERNE: Members to Receive Wind-Up Report on September 24 CASAM METROPOLITAN: Members to Receive Wind-Up Report on Sept. 24 CASAM MPC: Members to Receive Wind-Up Report on September 24 CASAM PEQUOT: Members to Receive Wind-Up Report on September 24 CASAM STONEBROOK: Members to Receive Wind-Up Report on Sept. 24 CASTLE HOLDCO 1: Placed Into Voluntary Liquidation CASTLE HOLDCO 2: Placed Into Voluntary Liquidation CASTLE HOLDCO 3: Placed Into Voluntary Liquidation CASTLE HOLDCO 6: Placed Into Voluntary Liquidation CAYMAN ISLANDS CREMONA: Claims Bar Date Expired Sept. 16 CDG HOLDINGS: Members to Receive Wind-Up Report on September 24 CHINA FORTUNE: Commences Liquidation Proceedings CITADEL AC: Members to Receive Wind-Up Report on September 24 CMH INSURANCE: Claims Bar Date Expired September 16 EFP (CAYMAN) 2006-1: Placed Into Voluntary Liquidation EFP (CAYMAN) 2006-2: Placed Into Voluntary Liquidation EFP (CAYMAN) 2006-3: Placed Into Voluntary Liquidation ESPIRITO SANTO: Members to Receive Wind-Up Report on September 24 FININVESTMENTS LIMITED: Placed Into Voluntary Liquidation HERSCHEL ABSOLUTE: Claims Bar Date Expired September 16 HERSCHEL MASTER: Claims Bar Date Expired September 16 INVESTCORP ENERGY: Proofs of Claim Due October 9 JPMORGAN FOCUSED: Claims Bar Date Expired September 16 J.P. MORGAN PARTNERS: Creditors' Proofs of Debt Due on Sept. 30 MS APPAREL: Creditors' Proofs of Debt Due on September 30 MS APPAREL II: Creditors' Proofs of Debt Due on September 30 PACTUAL MULTI: Shareholders' Final Meeting Set for September 24 PARAMOUNT INVESTMENT: Creditors' Proofs of Debt Due on Sept. 30 PLAZA NAKANOSHIMA: Claims Bar Date Expired September 16 SCL DELIGHT: Claims Bar Date Expired September 16 TLC FINANCE: Members to Receive Wind-Up Report on September 24 TRIAN SPV I: Creditors' Proofs of Debt Due on September 30 TRI LIQUID STRATEGIES GP: Claims Bar Date Expired Sept. 16 UBS CAYMAN: Claims Bar Date Expired September 16 VIETNAM EQUITY: Placed Into Voluntary Liquidation C H I L E EMPRESA ELECTRICA: Inks US$3BB Electricity Supply Deal With Emel C O L O M B I A BANCOLOMBIA SA: Cut to "Neutral" at HSBC on Valuation ECOPETROL SA: Discloses Progress Report at Quifa Block J A M A I C A CIBONEY LIMITED: Continues to Struggle With Huge Liabilities NATIONAL COMMERCIAL BANK: Lee Chin Sells Another 5% in Firm M E X I C O CEMEX SAB: Share Sale May Need 10% Discount CEMEX SAB: Antitrust Authorities Search Spanish Unit CORPORACION INTERAMERICANA: S&P Junks Corporate Credit Rating GRUMA SAB: Finishes Negotiations on US$738.3 Million in Debt P E R U BANCO DE CREDITO: Fitch Lifts Subordinated Debt Rating From 'BB+' V E N E Z U E L A PETROLEOS DE VENEZUELA: To Organize Firm to Develop Block Junin 6 X X X X X X X X * LATAM: And Caribbean FDI Inflows Overall by 13% in 2008 - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Receiver Seeks Court Permission to Sell Yacht ------------------------------------------------------------- According to Bloomberg News, Ralph Janvey, the court appointed receiver of Stanford Financial Group has asked the Texas Court to approve the sale of Robert Allen Stanford's yacht, the Sea Eagle, which the financier purchased in 1998 for $3.9 million. Mr. Janvey said the boat costs $25,000 per month just to keep at dockside. Mr. Janvey has a deal to sell the yacht for $2.5 million, absent higher and better bids. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). STANFORD INT'L: Antigua Delays Extradition in Firm's Fraud Case --------------------------------------------------------------- The hearing on a U.S. extradition request for Leroy King -- former administrator and Chief Executive Officer of the Financial Services Regulatory Commission -- has been postponed until December following a request from the defense attorney's office, The Associated Press reports, citing Director of Public Prosecutions Anthony Armstrong. The defense attorney's office said more time is needed for preparation, AP relates. As reported in the Troubled Company Reporter-Latin America on Jun 30, 2009, CaribWorldNews said Mr. King under house arrest after being fired from his post in his alleged involvement in a multi-billion Ponzi scheme orcheastrated by Robert Allen Stanford. The Caribbean360.com related that Mr. King is facing charges of conspiracy to commit wire and mail fraud, conspiracy to launder illegal proceeds, and conspiracy to obstruct the U.S. Securities and Exchange Commission investigations into Mr. Stanford and the Stanford International Bank Limited. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). * ANTIGUA & BARBUDA: Delays Extradition in Stanford's Fraud Case ---------------------------------------------------------------- The hearing on a U.S. extradition request for Leroy King -- former administrator and Chief Executive Officer of the Financial Services Regulatory Commission -- has been postponed until December following a request from the defense attorney's office, The Associated Press reports, citing Director of Public Prosecutions Anthony Armstrong. The defense attorney's office said more time is needed for preparation, AP relates. As reported in the Troubled Company Reporter-Latin America on Jun 30, 2009, CaribWorldNews said Mr. King under house arrest after being fired from his post in his alleged involvement in a multi-billion Ponzi scheme orcheastrated by Robert Allen Stanford. The Caribbean360.com related that Mr. King is facing charges of conspiracy to commit wire and mail fraud, conspiracy to launder illegal proceeds, and conspiracy to obstruct the U.S. Securities and Exchange Commission investigations into Mr. Stanford and the Stanford International Bank Limited. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). ================= A R G E N T I N A ================= ARCOS DORADOS: Moody's Assigns 'Ba2' Rating on Senior Notes ----------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)Ba2 rating to Arcos Dorados B.V.'s proposed US$450 million in senior unsecured global notes due in 2019. At the same time, Moody's has assigned a provisional (P)Ba2 Corporate Family rating to Arcos Dorados. The ratings outlook is stable. The provisional ratings are subject to the successful completion of the proposed debt issuance and review of the final documentation. This is the first time that Moody's has rated this company. Net issuance proceeds will be used for refinancing existing debt, including certain short term debt and US$350 million in long term debt that Arcos Dorados used to partially fund its acquisition of McDonald's Corporation's (McDonald's, rated A3) operations in Latin America and the Caribbean in August 2007. The acquisition gave the company exclusive McDonald's master franchising rights for 19 countries and territories in the region. As of June 30, 2009, Arcos Dorados owned and operated or franchised 1,660 McDonald's-branded restaurants, of which 1,203 or 72% were company operated and 457 (28%) sub-franchised. Arcos Dorados' (P)Ba2 ratings are underpinned by the company's status as McDonald's master franchisee in Latin America, which affords it with a leading position and broad geographic footprint in the region's under-penetrated and growing quick service restaurant segment of the informal eating out market. Moody's believes that the company's rights to use McDonald's strong brand name and proven operating procedures as a master franchisee, an expected close strategic alignment with McDonald's, and the industry experience of the company's management provide a solid basis to pursue growth opportunities and expand its earnings base across the region. Furthermore, the company owns the land of 31% of its restaurants and most of its restaurants' buildings, which provides hard asset protection for bondholders. Credit negatives partly offsetting these strengths include Arcos Dorados's relatively high lease-adjusted leverage, concentration of cash flows in a limited number of markets (including Brazil, its largest market), performance challenges in Mexico, the presence of currency controls in Venezuela, and currency exposures in the debt structure after the proposed notes issuance and hedges. Moody's also notes that Arcos Dorados faces some exposure to Argentine country risk and that the company is subject to certain minimum investment requirements and financial covenants under its master franchise agreements (MFAs). The MFAs give Arcos Dorados the exclusive right to operate and sub-franchise McDonald's-branded restaurants in numerous important markets in the region and generally have 20-year terms, after which McDonald's may grant an extension for another ten-year term. Key markets besides Brazil and Mexico include Argentina, Venezuela and Puerto Rico. As of June 30, 2009, on a combined basis the five markets accounted for 1,386, or 83%, of its 1,660 stores and most of consolidated revenues and earnings. Arcos Dorados' revenues and earnings have overall trended positively since the 2007 buyout from McDonald's, with double digit same store sales growth in Brazil and other South American markets more than offsetting weaker performance in Mexico and the Caribbean. For the twelve months ended June 30, 2009 (LTM), revenues reached US$2.51 billion, up 23.2% from pro forma 2007, while reported EBITDA margin was 9.8%, a 190bp improvement over 2007. Despite improvements, however, the company's margins currently remain modest relative to other rated (primarily U.S.- based) restaurant operators, mapping to a borderline B/Ba under Moody's Global Restaurant Rating Methodology. Moody's expects Arcos Dorados to continue to drive organic growth through new store openings and various strategic initiatives evolving around product innovation, brand extension and restaurant re-imaging. Over the coming years, Moody's expects the company to maintain a sizeable investment budget driven by store openings and store remodeling, which however should largely be covered by internal cash generation. The company is currently ahead of the mandatory requirements that initial three-year store opening and remodeling plans prescribe under the McDonald's MFAs. While Arcos Dorados has modest leverage on a reported basis, its rent-adjusted credit metrics are relatively weak for the Ba2 rating category. Assuming a US$450 million notes issuance, for year-end 2009 Moody's currently expects Debt/EBITDA and EBIT/Interest of about 4.1 times and 2.1 times. These metrics map to Ba and borderline Ba/B scores under the restaurant rating methodology. However, Moody's notes that metrics could weaken if local currencies depreciate because over half of total debt will likely be dollar-denominated after giving effect to hedges, while most revenues and earnings are generated in local currencies. Credit metrics could also effectively weaken if currency controls tighten further in Venezuela or are instituted in Argentina, which is also subject to weak sovereign credit quality. If executed as planned, the notes issuance will significantly improve Arcos Dorados' liquidity as proceeds will pay down all current debt except for US$62 million in derivative-related liabilities (due in 2013) and certain short term debt, eliminating long term debt maturities for the next several years. Moody's expects the company to occasionally draw under short term working capital credit facilities but does not anticipate material long term financing needs. Post-notes issuance, Moody's expects freely available cash (after working cash) of around US$100 million. As a policy, the company plans to keep US$85 million in minimum liquidity reserves at all times, including US$50 million for general purposes at the holding level and US$35 million for working capital at subsidiaries. In addition, the company maintains US$26 million of (currently unused) committed short-term credit facilities as an alternate source of liquidity. The proposed senior unsecured notes are rated at the same level as the (P)Ba2 corporate family rating because of their expected preponderance in Arcos Dorados' debt structure. The notes will be fully and unconditionally, jointly and severally, guaranteed by operating subsidiaries which in 2008 accounted for over 94% of the company's consolidated revenues, EBITDA and assets. The notes' indenture contains a mandatory prepayment clause that requires reimbursement of bondholders within five business days in case McDonald's exercises its option to purchase the master franchisee subsidiaries if certain conditions outlined in the MFAs are met. The stable ratings outlook reflects Moody's expectation that revenue growth and operating margins will recover from weaker trends in recent quarters and will strengthen going into 2010 as economic conditions recover. It is also based on the expectation that the company will maintain close to breakeven or positive free cash flow generation, with long-term investment spend generally covered by internal cash flow generation. Ratings could come under upward pressure if better than anticipated cash flow generation and prudent financial policies cause a material and sustainable strengthening of credit metrics, with lease-adjusted Debt/EBITDA dropping to close to 3.0 times and EBIT/Interest rising towards 3.0 times. An upgrade would likely also require solid progress in turning around the Mexican operation, a reduction of debt structure currency exposures and acceptable levels of country risk in relevant markets subject to weak sovereign credit quality. Downward pressure on ratings could occur if free cash flow becomes negative, for example because of a combination of margin pressures and aggressive investment spending, and if as a result credit metrics weaken substantially such that Debt/EBITDA exceeds 4.5 times or EBIT/Interest falls well below 2.0 times. A significant weakening of local currencies and further tightening of currency controls in Venezuela, or their implementation in Argentina, could also place pressure on the ratings if dollar cash flow available to bondholders is significantly reduced. To further discuss this rating, Moody's will hold a teleconference on Wednesday, September 23 beginning at 9:30 AM EDT/10:30 AM BRT/14:30 BST. Arcos Dorados B.V., headquartered in Buenos Aires, Argentina and with legal domicile in the Netherlands, is the leading quick service restaurant operator in Latin America and the Caribbean and McDonald's largest franchisee globally in terms of systemwide sales and restaurant count. As of June 30, 2009, the company indirectly owned and operated or franchised 1,660 McDonald's- branded restaurants. For the 12 months ended June 30, 2009, the company's revenues reached US$2.51 billion. CAFE 51: Trustee Verifying Proofs of Claim Until October 15 ----------------------------------------------------------- The court-appointed trustee for Cafe 51 S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 15, 2009. The trustee will present the validated claims in court as individual reports on November 26, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on February 11, 2010. COLINAS DEL SUR: Asks for Preventive Contest -------------------------------------------- Colinas del Sur SA asked for preventive contest. FIAMMA SA: Trustee Verifying Proofs of Claim Until October 16 ------------------------------------------------------------- The court-appointed trustee for Fiamma S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 16, 2009. The trustee will present the validated claims in court as individual reports on November 27, 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 10, 2010. IGLA CORP: Creditors' Proofs of Debt Due on October 22 ------------------------------------------------------ Graciela Cristina Perez, the court-appointed trustee for IGLA Corp SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 22, 2009. Ms. Perez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 10 in Buenos Aires, with the assistance of Clerk No. 20, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Graciela Cristina Perez Arengreen 678 Argentina LO COCO: Trustee Verifying Proofs of Claim Until November 20 ------------------------------------------------------------ The court-appointed trustee for Lo Coco S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until November 20, 2009. The trustee will present the validated claims in court as individual reports on February 4, 2010. 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 18, 2010. NUEVOS LOCALES: Creditors' Proofs of Debt Due on December 2 ----------------------------------------------------------- Mirta H. Addario, the court-appointed trustee for Nuevos Locales SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until December 2, 2009. Ms. Addario will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Mirta H. Addario Lavalle 1454 Argentina TRANSPORTADORA DE GAS: Reaches Restructuring Deal W/ 5 Creditors ---------------------------------------------------------------- James Attwood at Bloomberg News reports that Transportadora de Gas del Norte SA reached restructuring agreements with five institutional bondholders. According to the report, the creditors represent 45% of bonds that TGN is attempting to restructure. As reported in the Troubled Company Reporter-Latin America on September 9, 2009, Bloomberg News said that TGN is offering investors a larger cash payout and shorter duration bonds in a second attempt to restructure US$347 million in debt following a default. The report related the company said that the new offer replaces the one announced on April 23. According to the report, as with the earlier offer, the restructuring involves swap and cash payout options. The report related that the company is now offering new par bonds that will mature in 2016 as well as a cash payout of 40 cents on the dollar for up to US$40 million from the previous par bonds due in 2021 and a payout of 25 cents on the dollar for up to US$30 million. About TGN Headquartered in Buenos Aires, Transportadora de Gas del Norte SA -- http://www.tgn.com.ar/-- is one of the two largest transporters of natural gas in Argentina, delivering approximately 40% of the country's total gas consumption and more than 50% of Argentine total gas exports. The northern Argentine gas pipeline system connects major gas fields in northern and central-western Argentina. The company benefits from an exclusive 35-year concession contract, ending Dec. 28, 2027, which may be extended for an additional 10 years. The parent company is Gasinvest S.A., which has a 56.35% stake and comprises five companies: Totalfinaelf (27.2%), Transcogas Inversora S.A. (22.3%), Compania General de Combustibles (5%), Organizacion Techint (27.2%), and Petroliam Nasional Berhad (18.3%). In addition, CMS Gas Argentina holds 23.5% of Transportadora Norte's shares, while the remaining 20% is traded on the Buenos Aires stock exchange. * * * As of June 8, 2009, the company continues to carry Fitch Ratings' D long-term local and foreign currency Issuer Default Ratings. It also continues to carry Fitch Ratings' National Long term and National Sr Unsecured rating at D UNION CEL: Creditors' Proofs of Debt Due on October 15 ------------------------------------------------------ Federico Miro, the court-appointed trustee for Union Cel SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 15, 2009. Mr. Miro will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 16 in Buenos Aires, with the assistance of Clerk No. 31, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Federico Miro Uruguay 390 ============= B E R M U D A ============= CENTRAL EUROPEAN: Posts Result of Tender Offer ---------------------------------------------- Central European Media Enterprises Ltd. disclosed the results of its tender offer launched on September 7, 2009, to purchase for cash a portion of its 8.25% Senior Notes due 2012. The tender offer was open to non-U.S. holders only and expired at 4:00 p.m. London time on September 10, 2009. The company has accepted for repurchase valid tenders of its Notes totaling EUR63.2 million in aggregate principal amount at a purchase price of EUR970 per euro 1,000 principal amount. The settlement of the tender was expected to take place on September 21, 2009. On the settlement date, note holders whose Notes have been accepted for repurchase will receive the purchase price and accrued but unpaid interest on these Notes from the last interest payment date to September 21, 2009. The Notes repurchased in the offer will be canceled. About Central European Headquartered in Bermuda, Central European Media Enterprises Ltd. -- http://www.cetv-net.com/-- is a broadcasting company operating leading networks in seven Central and Eastern European countries with an aggregate population of approximately 97 million people. The company's television stations are located in Bulgaria (PRO.BG and RING.BG), Croatia (Nova TV), Czech Republic (TV Nova, Nova Cinema and Nova Sport), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro and MTV Romania), Slovakia (TV Markiza, Doma and Nova Sport), Slovenia (POP TV and Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International and Kino). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV". * * * As reported in the Troubled Company Reporter-Latin America on September 9, 2009, Standard and Poor's Ratings Services said that it affirmed its 'B' long-term corporate credit rating on Bermuda- based emerging markets TV broadcaster Central European Media Enterprises Ltd The outlook is negative. S&P also affirmed at 'B' the debt ratings on CME's US$475 million senior convertible notes due 2013, EUR245 million notes due 2012, and EUR150 million notes due 2014. In addition, S&P assigned a 'B' issue rating to the EUR150 million bond issue due 2016 announced by CME, in line with the corporate credit rating. CENTRAL EUROPEAN: Has Deal to Acquire 55% Stake in bTV ------------------------------------------------------ Bulgaria's first national private television bTV, wholly owned by Rupert Murdoch's News Corp, is considering the sale of its 55% stake to Central European Media Enterprises Limited for EUR500 million, Austrian Times reports, citing an unofficial information. The report relates that the media tycoon is reported to have nearly sealed the deal, whose price is believed to be about EUR500 million. According to the report, the future acquisition of the remaining 45% stake in the station has not been ruled out. Rupert Murdoch's News Corp., the report recalls, hired Lehman Brothers to ascertain the value and strategic options for three Eastern European television stations -- wholly owned properties in Latvia, Serbia and Bulgaria - after being approached by multiple suitors. The report relates that the properties were not doing poorly, but the company had decided to hire Lehman after the suitors' approaches. The Times notes that at least seven big suitors, including the Cologne-based German-Luxembourgian TV group RTL, said they were considering buying the TV station's portfolio. The report recalls that the price was initially set at EUR1.1 billion, but eventually shrank to EUR750 million. The offers, however, dried up with the onset of the global financial crisis, the Times says. About Central European Headquartered in Bermuda, Central European Media Enterprises Ltd. -- http://www.cetv-net.com/-- is a broadcasting company operating leading networks in seven Central and Eastern European countries with an aggregate population of approximately 97 million people. The company's television stations are located in Bulgaria (PRO.BG and RING.BG), Croatia (Nova TV), Czech Republic (TV Nova, Nova Cinema and Nova Sport), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro and MTV Romania), Slovakia (TV Markiza, Doma and Nova Sport), Slovenia (POP TV and Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International and Kino). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV". * * * As reported in the Troubled Company Reporter-Latin America on September 9, 2009, Standard and Poor's Ratings Services said that it affirmed its 'B' long-term corporate credit rating on Bermuda- based emerging markets TV broadcaster Central European Media Enterprises Ltd The outlook is negative. S&P also affirmed at 'B' the debt ratings on CME's US$475 million senior convertible notes due 2013, EUR245 million notes due 2012, and EUR150 million notes due 2014. In addition, S&P assigned a 'B' issue rating to the EUR150 million bond issue due 2016 announced by CME, in line with the corporate credit rating. KINGATE EURO: Supreme Court Enters Wind-Up Order ------------------------------------------------ On September 4, 2009, the Supreme Court of Bermuda entered an order to have Kingate Euro Fund, Ltd's operations wound up. William Tacon, David Griffin and John McKenna were appointed as the company's provisional liquidators. KINGATE GLOBAL: Supreme Court Enters Wind-Up Order -------------------------------------------------- On September 4, 2009, the Supreme Court of Bermuda entered an order to have Kingate Global Fund, Ltd's operations wound up. William Tacon, David Griffin and John McKenna were appointed as the company's provisional liquidators. MILACRON ASSURANCE: Contributories Meeting Set for October 9 ------------------------------------------------------------ The contributories of Milacron Assurance Ltd. will hold their first meeting on October 9, 2009, at 9:45 a.m., at the offices of Appleby, Canon's Court, 22 Victoria Street, in Hamilton, Bermuda. At the meeting, the contributories will be asked to: -- appoint a liquidator other than the Official Receiver; and -- appoint a committee of inspection to act with the liquidator and who are to be members of the committee, if appointed. VALIDUS HOLDINGS: To Release 3Q Financial Results on November 5 --------------------------------------------------------------- Validus Holdings, Ltd. plans to release its financial results for the third quarter ended September 30, 2009, after the close of trading on the New York Stock Exchange on Thursday, November 5, 2009. The company will hold a conference call for analysts and investors at 9:00 a.m. (Eastern) on Friday, November 6, 2009 to discuss these results. The conference call may be accessed by dialing 1-866-713-8566 (U.S. callers) or 1-617-597-5325 (International callers) and entering the passcode 31062383. Those who intend to participate in the call should dial in at least 10 minutes in advance. A live webcast of the call will be available online at the "Investor Relations" section of the Company's website located at http://www.validusre.bm. A replay of the call will be available through November 20, 2009 by dialing 1-888-286-8010 (U.S. callers) or 1-617-801-6888 (International callers) and entering the passcode 45321761#. A replay of the webcast will be available at the "Investor Relations" section of the company's website through November 20, 2009. 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 September 11, 2009, A.M. Best Co. 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). =========== B R A Z I L =========== BANCO NACIONAL: May Support Steel Mergers in Brazil --------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA) President, Luciano Coutinho, said that the bank may support consolidation in the country's steel industry as the government looks to create "global champions," Elzio Barreto at Reuters reports, citing Valor Economico newspaper. According to the report, BNDES has helped fund a series of major deals in Brazil the past year, including the merger of food processors Sadia and Perdigao that created Brasil Foods and the Aracruz -Votorantim Celulose transaction that formed pulp and paper giant Fibria. The report relates that the bank has also been key in funding overseas takeovers carried out by JBS SA. "Brazilian steelmakers owe the country a more assertive stance," Mr. Coutinho told Valor newspaper in an interview, the Reuters notes. "The steel sector is a large exporter, but it hasn't produced, until now, companies on an international scale," Mr. Coutinho added. 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. BRF-BRASIL FOODS: Cut to "Hold" at Citigroup on Valuation --------------------------------------------------------- Paulo Winterstein at Bloomberg News reports that Citigroup Inc. has cut BRF Brasil Foods SA to �hold� from �buy�, on September 21, 2009, citing �rich valuation.� �Although BRF should have a superior growth due to the synergy gains, at this level we see very limited upside for multiple expansion,� Sao Paulo-based analyst Carlos Albano wrote in a note obtained by the news agency. BRF-Brasil Foods SA is a food processor in Latin America. The company raises chickens to produce poultry products. Brasil foods also processes frozen pasta, soybeans, and their derivatives, and distributes frozen vegetables. The company's core business is chilled and frozen food. The company has offices in the Middle East, Asia, and Europe. * * * As of July 14, 2009, the company continues to carry Moody's Ba1 LT Corp Family rating. The company also continues to carry Standard and Poor's BB+ LT Issuer Credit Ratings. GERDAU AMERISTEEL: To Adopt Int'l Financial Reporting Standards --------------------------------------------------------------- Gerdau Ameristeel Corporation disclosed that on September 15, 2009, the Ontario Securities Commission granted approval for the company to adopt International Financial Reporting Standards with an adoption date of January 1, 2009 and a transition date of January 1, 2008. The company believes that the adoption of IFRS is in the best interests of the company and the users of its financial information because the adoption of IFRS will align the bases of accounting under which the company and its majority shareholder, Gerdau S.A., prepare their financial statements and increase the comparability of the company's financial statements to those of a number of global issuers, including competitors within the steel industry, who already prepare, or will soon be required to prepare, financial statements in accordance with IFRS. The following discussion provides further information about the Company's conversion to IFRS. IFRS Conversion Process The company has substantially completed the process to transition from US GAAP to IFRS. The company's comprehensive IFRS conversion plan addresses changes in accounting policies, restatement of comparative periods, internal controls and any required changes to business processes. The Plan generally consists of three primary phases, which in certain cases will be in process concurrently as IFRS is applied to specific areas: -- Assessment: To establish project governance, develop a detailed project plan and timeline and identify key areas that will be impacted by the transition to IFRS. -- Conversion: To identify specific changes required to existing accounting policies, information systems and business processes, together with an analysis of policy alternatives allowed under IFRS and development of IFRS compliant financial statements. -- Sustainability: To execute the changes to information systems and business processes, completing formal authorization processes to approve recommended accounting policy changes and training programs across the company's finance and other staff, as necessary. This phase will culminate in the collection of financial information necessary to compile IFRS compliant financial statements, embedding IFRS principles in business processes, and Audit Committee approval of IFRS financial statements. The company said it has met the objectives of the Plan and is currently on schedule with the detailed timetable prepared in the assessment phase discussed above. As part of the Plan, the company is providing in-depth training to its accounting personnel, Board of Directors and Audit Committee to ensure they have a thorough understanding of IFRS. The company's analysis of IFRS and comparison with currently applied US GAAP accounting principles has identified a number of differences as discussed under the heading "Impact of IFRS on Financial Reporting" below. Initial Adoption of IFRS IFRS 1 "First-time Adoption of International Financial Reporting Standards" sets forth guidance for the initial adoption of IFRS. Commencing with the first interim period in which the Company reports under IFRS in 2009, the company will adjust its comparative fiscal 2008 financial statements for annual and interim periods to comply with IFRS. In addition, the company will reconcile equity and net earnings from the previously reported fiscal 2008 US GAAP amounts to the restated 2008 IFRS amounts. Under IFRS 1, the standards are applied retrospectively at the transitional balance sheet date with all adjustments to assets and liabilities taken to retained earnings unless certain exemptions are applied. IFRS 1 provides for certain optional exemptions and elections as well as certain mandatory exceptions to this general principle. The company will be applying the following exemptions and elections to its opening balance sheet dated January 1, 2008: * Optional exemptions * Business combinations IFRS 1 indicates that a first-time adopter may elect not to apply IFRS 3 "Business Combinations" retrospectively to business combinations that occurred before the date of transition to IFRS. The company will take advantage of this election and apply IFRS 3 only to business combinations that occurred on or after January 1, 2008. Cumulative translation differences IFRS 1 allows a first-time adopter to not comply with the requirements of IAS 21 "The Effects of Changes in Foreign Exchange Rates" for cumulative translation differences that existed at the date of transition to IFRS. The company has chosen to apply this election and will deem its cumulative translation differences for all foreign operations to be zero at the date of transition to IFRS. If, subsequent to adoption, a foreign operation is disposed of, the translation differences that arose before the date of transition to IFRS shall be excluded from the gain or loss on disposal. As of January 1, 2008, included within the company's Accumulated Other Comprehensive Income balance of US$64 million was approximately US$111 million of cumulative foreign currency translation adjustments which will be reclassified to Retained Earnings under IFRS 1, resulting in no change in total Shareholders' Equity. Share-based payment transactions IFRS 1 encourages, but does not require, first-time adopters to apply IFRS 2 "Share-based Payment" to equity instruments that were granted on or before November 7, 2002, or equity instruments that were granted subsequent to November 7, 2002 and vested before the later of the date of transition to IFRS or January 1, 2005. The company has elected to apply IFRS 2 only to equity instruments that were unvested as of its transition date, January 1, 2008. Carrying value of assets and liabilities The company is adopting IFRS subsequent to the date from which its parent, Gerdau S.A., adopted IFRS. In accordance with IFRS 1, if a subsidiary company adopts IFRS subsequent to its parent adopting IFRS, the subsidiary shall measure its assets and liabilities at either: (i) the same carrying amounts as in the financial statements of the parent based on the parent's date of transition to IFRS; or (ii) the carrying amounts required by the rest of IFRS 1, based on the subsidiary's date of transition to IFRS. The Company has elected to record the carrying amounts required by IFRS 1 based on its date of transition (January 1, 2008) to IFRS as described. Mandatory exceptions Estimates In accordance with IFRS 1, an entity's estimates under IFRS at the date of transition to IFRS must be consistent with estimates made for the same date under previous US GAAP, unless there is objective evidence that those estimates were in error. The company's IFRS estimates as of January 1, 2008 will be consistent with its US GAAP estimates for the same date unless evidence is obtained that indicates that the estimates were in error. As of the date of this release, no errors have been identified. Impact of IFRS on Financial Reporting IFRS employs a conceptual framework that is similar to US GAAP. However, significant differences exist in certain matters of recognition, measurement and disclosure. While adoption of IFRS will not change the Company's actual cash flows, it will result in changes to the company's reported financial position and results of operations. To assist the users of the Company's financial statements in understanding these changes, the following discussion describes the differences between US GAAP and IFRS for the company's accounting policies and financial statement accounts which could be significantly affected by the conversion to IFRS. (a) Impairment of goodwill US GAAP - US GAAP requires an impairment analysis based on a two- step process of first determining the estimated fair value of the reporting unit and then comparing it to the carrying value of the net assets allocated to the reporting unit. If the estimated fair value exceeds the carrying value, no further analysis or goodwill write-down is required. If the estimated fair value of the reporting unit is less than the carrying value of the net assets, the implied fair value of the reporting unit is allocated to all the underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based on their estimated fair value at the date of the impairment test. If necessary, goodwill would then be written down to its implied fair value. IFRS - IAS 36 "Impairment of Assets" requires an impairment analysis based on a one-step process. A write-down is recognized if the recoverable amount of the cash generating unit, determined as the higher of the estimated fair value less costs to sell or value in use, is less than the carrying value. In addition, in accordance with IFRS 1, the company will have to perform a goodwill impairment test as of the transition date and consider whether an impairment charge would be recognized under IFRS on the transition date. For reporting periods subsequent to January 1, 2008, the company will perform a goodwill impairment test on an annual basis, at a minimum, and when impairment indicators exist. (b) Impairment of long-lived assets (primarily includes property, plant and equipment and intangibles for the company) US GAAP - A write-down to estimated fair value is recognized if the estimated undiscounted future cash flows from an asset or group of assets are less than their carrying value. Recoverability is determined based on an estimate of undiscounted future cash flows resulting from the use of the long-lived asset or group of assets and the eventual disposition. IFRS - IAS 36 requires a write-down to be recognized if the recoverable amount, determined as the higher of the estimated fair value less costs to sell or value in use is less than carrying value. In addition, in accordance with IFRS 1, the Company will have to perform a long-lived assets impairment test as of the transition date and consider whether an impairment charge would be recognized under IFRS on the transition date. For reporting periods subsequent to January 1, 2008, the Company will perform a long- lived assets impairment test if deemed necessary under IAS 36. (c) Stock-based compensation US GAAP - The fair value of stock-based awards with graded vesting and service-only conditions are treated as one grant by the Company, accordingly, the resulting fair value is recognized on a straight-line basis over the vesting period. IFRS - Each tranche of stock-based awards with graded vesting is considered a separate grant for the calculation of fair value, and the related expense is attributed to the vesting period of each tranche of the award. (d) Business combinations - redeemable noncontrolling interest IFRS - IAS 32 "Financial Instruments: Disclosure and Presentation", requires that a liability be recognized for management's best estimate of the present value of the redemption amount of the put option that was entered into in connection with the Pacific Coast Steel 55% acquisition in 2006. The put liability is recognized by reclassification from parent equity. The accretion of the discount on the put liability is recognized as a finance charge in the income statement. The put liability is re-measured to the final redemption amount and any adjustments to the estimated amount of the liability are recognized in the income statement. (e) Business combinations - PCS step acquisition On April 1, 2008, the company increased its investment in PCS from 55% to approximately 84%. US GAAP - Under US GAAP in place in 2008, acquisitions of a noncontrolling interest were accounted for using the purchase method. As such, when the company acquired an additional approximate 29% interest in PCS in April 2008, the acquisition was treated as a step acquisition, with additional goodwill and incremental fair value of assets recorded. IFRS - Under IFRS, the purchase of a noncontrolling interest is not considered a business combination, as control of the entity already exists. However, prior to the issuance of IAS 27(R) "Consolidated and Separate Financial Statements" which the company will adopt on January 1, 2010, no specific IFRS guidance was given with respect to the acquisition of a noncontrolling interest. As such, multiple accounting models were accepted in practice. The company has elected to treat this transaction as an equity transaction, which is the same treatment that would result under IAS 27(R) guidance. Under this accounting model, no additional goodwill or incremental fair value of assets is recorded. (f) Embedded derivative - callable debt On June 27, 2003, the company refinanced its debt by issuing US$405.0 million aggregate principal 10 3/8% Senior Notes. The notes had a maturity date of July 15, 2011 and were issued at 98% of face value. The terms of the Senior Notes allowed the company to call them at any time at a redemption price ranging from 105 3/8% to 100%, depending on when the call was made. On August 31, 2009, the company redeemed all of the outstanding Senior Notes at a price of 101.792%. US GAAP - Because the right to exercise the call option is solely within the Company's control, US GAAP does not require the call option to be bifurcated and valued separately from the debt. IFRS - IFRS does not require bifurcation if the exercise price of a call or put is approximately equal to the amortized cost of the host debt instrument on each exercise date. The company has concluded that the exercise price of the call does not approximately equal the amortized cost of the notes; therefore, the call option is bifurcated under IFRS and measured at fair value with changes in fair value recognized in the income statement. (g) Provisions US GAAP - US GAAP requires the use of a discount rate that produces an amount at which the liability theoretically could be settled in an arm's-length transaction with a third party. Additionally, the discount rate should not exceed the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the liability. IFRS - IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" requires a provision or contingent liability to be discounted using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. Risk adjustments should be made to the discount rate if such risks are not inherent in the estimated cash outflows. (h) Postretirement benefits US GAAP - The excess of any actuarial gain or loss exceeding 10% of the greater of the benefit obligation or the fair value of plan assets is included as a component of the net actuarial gain or loss recognized in accumulated other comprehensive income or loss and is amortized to net periodic pension cost in future periods over the average remaining service period of the active employees. IFRS - The company elected to adopt paragraph 93A of IAS 19 "Employee Benefits", which allows an entity to recognize actuarial gains and losses directly in equity or retained earnings in the period in which they occur (without the need to amortize those deferred gains and losses in the statement of income in future periods). (i) Facility closure costs During June 2009, as a result of the significant downturn in the economy and declining demand for its products, the company announced its intent to close or idle certain facilities (the "Facility Plan"). The company recorded a US$36.5 million pre-tax charge for the three and six months ended June 30, 2009 relating to the Facility Plan. US GAAP - US GAAP requires the recognition of certain obligations arising from facility closures when the facility ceases operation or when the cost is incurred. IFRS - IFRS requires the recognition of certain obligations arising from facility closures when the obligations are unavoidable and are not related to the ongoing activities of the facility. As such, under IFRS, the company will recognize certain obligations related to the Facility Plan in a different reporting period than what US GAAP would have required. (j) Income taxes Deferred income tax assets as well as income tax expense are generally calculated in the same manner in accordance with US GAAP and IFRS. However, certain of the pre-tax adjustments described above are expected to generate additional temporary differences between book and tax basis and, accordingly, will give rise to adjustments to the Company's recorded deferred tax assets and liabilities as well as deferred income tax expense. In addition, US GAAP requires that deferred tax benefits are recorded for share-based payment awards based on the compensation expense recorded for the award. On exercise of the award, the difference between the actual deduction realized on the tax return and the cumulative tax benefit recognized for book purposes is generally recorded directly to equity. Under IFRS, deferred tax benefits are recorded for share-based payment awards based on the intrinsic value of the award at each balance sheet date. Deferred tax benefits that exceed the amount of cumulative compensation recognized for book purposes are recorded directly to equity. Additionally, IFRS requires all deferred tax assets and liabilities to be classified as noncurrent for balance sheet presentation, as compared to US GAAP which requires classification between current and noncurrent based on the balance sheet classification of the related asset or liability. (k) Interim periods - pension valuation US GAAP - Under US GAAP, the remeasurement of plan assets and defined benefit obligations is only an annual requirement unless a significant event, such as a curtailment, settlement or significant plan amendment occurs. IFRS - Under IFRS, an entity is required to determine the present value of the defined benefit obligation and the fair value of the plan assets with sufficient regularity that the amounts recognized in the financial statements do not differ materially from the amounts that would be determined at the balance sheet date. Due to the volatile economic environment in 2008 and the first half of 2009, the company determined that the fair value of certain plan assets should be adjusted for certain interim periods. (l) Deferred financing costs US GAAP - Under US GAAP, the Ccmpany presents deferred financing costs as an asset on its balance sheet. IFRS - IFRS requires deferred financing costs related to the issuance of debt to be presented on the balance sheet as a reduction of the carrying value of the debt. (m) Accumulated other comprehensive income or loss As discussed above under the heading "Optional exemptions", the Company has chosen to deem its cumulative translation differences for all foreign operations to be zero at the date of transition to IFRS which results in an adjustment to accumulated other comprehensive income or loss. Also, discussed above under the heading "Impact of IFRS on Financial Reporting", the Company has chosen to recognize all actuarial gains and losses related to its defined benefit plans directly into retained earnings. (n) Presentation and disclosure The conversion to IFRS will impact the way the company presents its financial results. The first financial statements prepared using IFRS will be required to include numerous notes disclosing extensive transitional information and full disclosure of all new IFRS accounting policies. The company will restate and refile its 2009 interim financial statements originally prepared in accordance with US GAAP in accordance with IFRS together with the related restated management's discussion and analysis as well as the certificates required by National Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings. Other Organizational Impacts of IFRS The company has evaluated the impact of the conversion on its accounting systems. Based on the differences identified to date, the company believes its existing systems can accommodate the required changes. In addition, the company's internal and disclosure control processes, as currently designed, will not need significant modifications as a result of its conversion to IFRS. The company has assessed the impacts of adopting IFRS on its contractual arrangements including material debt covenants, and has not identified any material compliance issues. About Gerdau Ameristeel Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a mini-mill steel producer in North America. The company's products are sold to steel service centers, steel fabricators, or directly to original equipment manufactures for use in a variety of industries, including construction, cellular and electrical transmission, automotive, mining and equipment manufacturing. * * * As reported in the Troubled Company Reporter on April 20, 2009, Standard & Poor's Ratings Services placed its ratings, including its 'BB+' corporate credit rating, on Tampa, Florida-based Gerdau Ameristeel Corp. on CreditWatch with negative implications. JBS SA: To Delay U.S. Unit Initial Public Offering to January ------------------------------------------------------------- JBS SA will delay the initial public offering of its U.S. unit to January from September as it wants first to consolidate its new acquisitions before taking its U.S. subsidiary public, Inae Riveras at Reuters reports. As reported in the Troubled Company Reporter-Latin America on September 17, 2009, Reuters said that JBS SA said it would buy Brazilian rival Bertin SA in an all stock-transaction to consolidate its leadership in the global meat market. The report related that JBS SA also agreed to buy control of bankrupt Pilgrim�s Pride Corp. "With these takeovers, we will delay it to January as we put together all the numbers, do the pro formas," the report quoted Mr. Batista as saying. According to the company also expects to complete a private placement by its JBS USA Holdings unit ahead of the IPO in January. A TCRLA report on July 23, 2009, citing Reuters, related that JBS USA Holdings Incfiled for an initial public offering of up to US$2 billion on the New York Stock Exchange, with plans to sell Brazilian depositary receipts. According to Reuters, JBS USA said it plans to use the IPO's proceeds for "substantial investments in order to significantly expand our direct distribution." Mr. Batista, Reuters notes, said that with the private placement, the company expects to reduce its debt after the takeovers to less than 3 times EBITDA. Reuters points out that the company's debt now stands at 2.6 times EBITDA, without counting the US$2.5 billion of Pilgrim's debt and US$2 billion of debt owed by Bertin. About JBS SA JBS SA is one of the world's largest beef producers with operations in Brazil, the United States, Argentina, Australia and Italy. The company is the largest producer and exporter of fresh meat and meat by-products in Brazil, Argentina and Australian and the third largest in the USA. * * * As reported in the Troubled Company Reporter-Latin America on September 18, 2009, Standard & Poor's Ratings Services placed its ratings, including the 'B+' corporate credit ratings, on meat- processing companies JBS S.A and JBS USA LLC on CreditWatch with positive implications. LUPATECH SA: Moody's Downgrades Corporate Family Rating to 'B1' --------------------------------------------------------------- Moody's Investors Service has downgraded Lupatech S.A.'s corporate family ratings to B1 from Ba3 on the global scale and to Baa2.br from A3.br on the Brazilian national scale. Simultaneously, Moody's has downgraded to B2 from Ba3 the foreign currency rating of the US$275 million senior unsecured perpetual notes issued by Lupatech Finance Ltd. (Cayman Islands) and jointly and severally guaranteed by Lupatech and its operating subsidiaries. The two- notch downgrade of the senior unsecured notes takes into consideration the increased level of secured debt in Lupatech's debt structure pro-forma for the new loans granted and debentures acquired by the Brazilian Development Bank -- BNDES, which are senior to the rated perpetual notes and will represent a substantial portion of the company's total debt. The outlook for all ratings is stable. This rating action concludes the review process initiated on May 28, 2009. Ratings downgraded are: Lupatech S.A.: -- Corporate Family Rating: to B1 from Ba3 (Global Scale); to Baa2.br from A3.br (Brazilian National Scale) Lupatech Finance Ltd. (Cayman Islands): -- US$275 million Senior Unsecured Guaranteed Perpetual Notes: to B2 from Ba3 (Foreign Currency Rating) -- Outlook: stable for all ratings The downgrade of Lupatech's corporate family rating reflects Moody's expectation of the company's limited ability to reduce leverage over the near term, as a result of the weakened operating margins which Moody's expect will remain constrained by high-cost inventories and operational inefficiencies from current low capacity utilization in all three divisions. Additionally, free cash flow should continue to be impacted by working capital needs and by a high fixed interest expense, expected to be approximately BRL125 million in the next 12 months, compared with EBITDA of BRL175 million. While Net Debt to EBITDA and Debt to Capitalization reached 5.5x and 83%, respectively, as of June 30, 2009, Moody's expect leverage to peak at 2009 year-end as 2008 quarters roll off, with Net Debt to EBITDA at around 7x. Total Debt as calculated by Moody's includes the full amount of the US$275 million in perpetual bonds outstanding. The perpetual bonds were not given any equity credit because interest payments are made in cash on a quarterly basis and there is no deferral option; there is no loss absorption since the bonds are pari passu with senior unsecured debt; and although the bonds have no maturity, they are callable at any time on or after July 10, 2012. Also, Lupatech's convertible debentures were not given any equity credit due to the non-existence of coupon deferral options and interest payments are made in cash, and the conversion into shares is not mandatory, but discretionary to the debentures holder at any time from the beginning of the third year. The financial support provided by BNDES to Lupatech by means of a BRL121 million up to five years loan (disbursement expected during the fourth quarter of 2009) and 90% subscription of Lupatech's BRL 320 million convertible debentures due 2018 (already fully disbursed), will lead to improved liquidity. The proceeds of the new loan and of the debentures will be used to replace existing senior unsecured short term debt, thus addressing the company's more immediate refinancing needs and allowing the maintenance of a cash position covering 2010 debt service. Although the transactions will not result in an increase in the company's leverage, the guarantees provided for the BNDES loan and the new convertible debentures will result in some 43% of Lupatech's total adjusted debt being senior to the company's rated perpetual notes, which led to the two-notch downgrade of the perpetual notes and their rating below that of the corporate family rating. The softer financial covenants under the new BNDES loans, when compared with those of the working capital loans being prepaid, support Lupatech's healthy liquidity position. The financial covenants of the new BNDES loans include Net Debt (excluding the perpetual notes) to EBITDA below 3.5x (2.1x reported as of June 30, 2009), minimum last-twelve-months EBITDA margin of 20% (26% reported) and Current Assets to Current Liabilities above 1.5x (3.1x reported), thereof Lupatech must be in compliance with at least two financial covenants. While the operating performance of the flow control division has been affected by the weak Argentinean market and by Lupatech's strategy to reduce prices, the slowdown in exports and in demand from local manufacturers of agricultural equipment and diesel engines for export has resulted in negative operating margins in the metallurgy segment. The most relevant division -- energy products representing 76% of net revenues and 82% of EBITDA in the second quarter of 2009 -- has been affected by delays in new bids for services and postponed orders by the clients. Moody's believe that these factors will continue to negatively impact Lupatech's performance during the second half of 2009, preventing a significant improvement in the company's current capacity utilization of around 50%. While the current leverage is fairly high even for the B1 rating category, the stable outlook reflects Moody's expectation of a recovery in Lupatech's performance from 2010 as it converts into revenues its large backlog order in the energy products division benefiting from Petrobras's large investment program over the next years, and demand for industrial valves and cast parts recovers gradually in line with the global economy. However, free cash flow available for debt reduction should remain constrained by additional working capital needs as revenues grow and by high interest expenses, thus preventing a faster balance-sheet de- leveraging. After peaking at around 7x at 2009 year-end, Moody's anticipate that Total Adjusted Net Debt (including the perpetual notes) to EBITDA will converge to 6x during 2010, and will continue to decline thereafter as a result of growing EBITDA rather than debt reduction. The stable outlook also considers that Lupatech will not pursue new sizeable acquisitions in the near term, but focus on the optimization of its existing operating assets. New acquisitions are expected to be funded with equity. The ratings or outlook could be downgraded if the company is not able to reduce leverage as measured by Total Adjusted Net Debt to EBITDA below 6x and improve interest coverage as measured by EBITA to Gross Interest Expenses above 2x over the near term, while simultaneously managing working capital in order to generate positive free cash flow and maintaining a strong liquidity position. The ratings could come under upward pressure if Lupatech succeeds in reducing its leverage as measured by Total Adjusted Net Debt to EBITDA of below 5x and Free Cash Flow to Total Adjusted Net Debt consistently above 10%. Also a strong liquidity position would be required for a positive rating action. Headquartered in Caxias do Sul, Brazil, Lupatech S.A. is a leading equipment manufacturer and service provider to the oil & gas industry in Brazil, besides producing industrial valves and casting parts. Lupatech reported net revenues of BRL719 million (US$344 million using the average exchange rate) in the last twelve months ended June 30, 2009. SANEPAR: Controlling Shareholder Seeks to Increase Stake -------------------------------------------------------- Francisco Marcelino at Bloomberg News reports that Cia de Saneamento do Parana�s controlling shareholder, Brazil�s southern state of Parana, is seeking to increase its stake in the water utility after an agreement to settle BRL744 million (US$410 million) of debt. Sanepar will give Parana assets such as dams, water distribution systems and water treatment units to pay the debt, Investor Relations Director Valter Aparecido Pegorer told the news agency in a telephone interview. According to the report, Mr. Pegorer said that Parana may boost its stake in the utility after shareholders approve a plan to sell shares. About Sanepar Headquartered in Curitiba-based, Cia de Saneamento do Parana supplies water to the state of Parana in Brazil, including the city of Curitiba, and several other towns. * * * As of September 22, 2209, the company continues to carru Mooody's Ba3 Local Currency LT Debt rting with negative outlook. ========================== C A Y M A N I S L A N D S ========================== AI-LONG/SHORT: Shareholders' Final Meeting Set for September 25 --------------------------------------------------------------- The shareholders of AI-Long/Short Strategies Fund, Ltd. will hold their final meeting on September 25, 2009, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Tromino Financial Services Ltd. 2 Reid Street, Hamilton HM 11 Bermuda Telephone: (441) 295 5588 Facsimile: (441) 295 5578 BGI ALPHA: Creditors' Proofs of Debt Due on September 30 -------------------------------------------------------- The creditors of BGI Alpha Leveraged Loan Fund 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 13, 2009. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Telephone: (345) 914-6314 BROOKLINE AVENUE: Claims Bar Date Expired September 16 ------------------------------------------------------ Brookline Avenue Event Driven Equity Fund, Ltd., has been placed into Voluntary Liquidation pursuant to The Companies Law (2004 Revision), following resolution by the sole shareholder of the Company dated August 3, 2009. Walkers Corporate Services Limited has been appointed as Liquidator. Creditors of the Company had until September 16, 2009, to file proofs of claim against the firm. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Anthony Johnson Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Tel: (345) 914-6314 Late claims will be "excluded from the benefit of any distribution made before such debts are proved." BWGLOBAL GLOBAL: Claims Bar Date Expired September 16 ----------------------------------------------------- Creditors of BWGlobal - Global Macro Strategy Fund, Ltd., had until September 16, 2009, to file proofs of claim against the firm. BWGlobal - Global Macro Strategy Fund has been placed into Voluntary Liquidation pursuant to The Companies Law (2004 Revision), following resolution by the sole shareholder of the Company dated July 16, 2009. Walkers Corporate Services Limited has been appointed as Liquidator. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Anthony Johnson Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Tel: (345) 914-6314 Late claims will be "excluded from the benefit of any distribution made before such debts are proved." CASAM CFM: Members to Receive Wind-Up Report on September 24 ------------------------------------------------------------ The members of Casam CFM Discus Fund Limited will receive on September 24, 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: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CASAM CONTEXT: Members to Receive Wind-Up Report on September 24 ---------------------------------------------------------------- The members of Casam Context Offshore Advantage Fund Limited will receive on September 24, 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: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CASAM LUCERNE: Members to Receive Wind-Up Report on September 24 ---------------------------------------------------------------- The members of Casam Lucerne Mid-Cap Fund Limited will receive on September 24, 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: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CASAM METROPOLITAN: Members to Receive Wind-Up Report on Sept. 24 ----------------------------------------------------------------- The members of Casam Metropolitan Capital Advisors Fund Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on September 24, 2009, at 10:00 a.m. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CASAM MPC: Members to Receive Wind-Up Report on September 24 ------------------------------------------------------------ The members of Casam MPC Pilgrim Fund Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on September 24, 2009, at 10:00 a.m. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CASAM PEQUOT: Members to Receive Wind-Up Report on September 24 --------------------------------------------------------------- The members of Casam Pequot Core Global Fund Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on September 24, 2009, at 10:00 a.m. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CASAM STONEBROOK: Members to Receive Wind-Up Report on Sept. 24 --------------------------------------------------------------- The members of Casam Stonebrook Offshore Partners Fund Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on September 24, 2009, at 10:00 a.m. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CASTLE HOLDCO 1: Placed Into Voluntary Liquidation -------------------------------------------------- Castle Holdco 1, Ltd., has been placed into Voluntary Liquidation pursuant to The Companies Law (as amended), following resolution by the sole shareholder dated August 5, 2009. Michael Salvati has been appointed liquidator. Creditors had until September 7 to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys at law (if any) to: MICHAEL SALVATI Voluntary Liquidator 201 N. Westshore Drive Chicago, Illinois 60601 United States of America Late claims will be "excluded from the benefit of any distribution made before such debts are proved." CASTLE HOLDCO 2: Placed Into Voluntary Liquidation -------------------------------------------------- Castle Holdco 2, Ltd., has been placed into Voluntary Liquidation pursuant to The Companies Law (as amended), following resolution by the sole shareholder dated August 5, 2009. Michael Salvati has been appointed liquidator. Creditors had until September 7 to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys at law (if any) to: MICHAEL SALVATI Voluntary Liquidator 201 N. Westshore Drive Chicago, Illinois 60601 United States of America Late claims will be "excluded from the benefit of any distribution made before such debts are proved." CASTLE HOLDCO 3: Placed Into Voluntary Liquidation -------------------------------------------------- Castle Holdco 3, Ltd., has been placed into Voluntary Liquidation pursuant to The Companies Law (as amended), following resolution by the sole shareholder dated August 5, 2009. Michael Salvati has been appointed liquidator. Creditors had until September 7 to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys at law (if any) to: MICHAEL SALVATI Voluntary Liquidator 201 N. Westshore Drive Chicago, Illinois 60601 United States of America Late claims will be "excluded from the benefit of any distribution made before such debts are proved." CASTLE HOLDCO 6: Placed Into Voluntary Liquidation -------------------------------------------------- Castle Holdco 6, Ltd., has been placed into Voluntary Liquidation pursuant to The Companies Law (as amended), following resolution by the sole shareholder dated August 5, 2009. Michael Salvati has been appointed liquidator. Creditors had until September 7 to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys at law (if any) to: MICHAEL SALVATI Voluntary Liquidator 201 N. Westshore Drive Chicago, Illinois 60601 United States of America Late claims will be "excluded from the benefit of any distribution made before such debts are proved." CAYMAN ISLANDS CREMONA: Claims Bar Date Expired Sept. 16 -------------------------------------------------------- Cayman Islands Cremona Corporation was placed into Voluntary Liquidation pursuant to The Companies Law (2007 Revision) by a special resolution passed by way of unanimous written resolution dated July 23, 2009. Graham Robinson and Peter Anderson of RHSW (Cayman) Limited, PO Box 897, Third Floor, One Capital Place, George Town, Grand Cayman KY1-1103, Cayman Islands, have been appointed Joint Voluntary Liquidators. Creditors of the company were "to prove their debts or claims . . . to establish any title they may have under the Companies Law (2007 Revision), or to be excluded from the benefit of any distribution made before the debts are proved or from objecting to the distribution." That deadline expired September 16. To contact: Graham Robinson Tel: (345) 949-7576 Fax: (345) 949-8295 P.O. Box 897, One Capital Place, George Town, Grand Cayman KY1-1103, Cayman Islands. CDG HOLDINGS: Members to Receive Wind-Up Report on September 24 --------------------------------------------------------------- The members of CDG Holdings Ltd. will receive the liquidator's report on the company's wind-up proceedings and property disposal on September 24, 2009, at 9:10 a.m. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CHINA FORTUNE: Commences Liquidation Proceedings ------------------------------------------------ On July 23, 2009, China Fortune Acquisition Corp. commenced liquidation proceedings. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Yu Bo c/o Cathay Fortune Corp. Jinmao Tower, Room 4403 88 Century Blvd. Pudong Shanghai 200121, China CITADEL AC: Members to Receive Wind-Up Report on September 24 ------------------------------------------------------------- The members of Citadel AC Investments Ltd. will receive the liquidator's report on the company's wind-up proceedings and property disposal on September 24, 2009, at 9:10 a.m. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CMH INSURANCE: Claims Bar Date Expired September 16 --------------------------------------------------- CMH Insurance Company, Ltd., has been placed into Voluntary Liquidation pursuant to The Companies Law (2007 Revision), following special resolution by the sole shareholder of the Company on July 29, 2009. Joseph Galeazzi and Laurisa Jackson have been appointed as joint liquidators. Creditors of the Company had until September 16, 2009, to file proofs of claim against the firm. Creditors were required to send in their names and addresses and the particulars of their debts or claims and the names and addresses of their attorneys at law (if any) to the liquidators, and "if so required by notice in writing from the liquidators either by their attorneys at law or personally to come in and provide the said debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved.: To contact: JOSEPH GALEAZZI LAURISA JACKSON c/o The Children�s Mercy Hospital 2401 Gillham Road, Kansas City, MO, 64108 EFP (CAYMAN) 2006-1: Placed Into Voluntary Liquidation ------------------------------------------------------ EFP (Cayman) Funding 2006-1 Limited has been placed into Voluntary Liquidation pursuant to The Companies Law (as amended), following resolution by the sole shareholder of the firm on July 17, 2009. Brett Sibley of 250 Vesey Street, 5th Floor, New York 10080, has been appointed liquidator. Creditors of the company had until September 7 to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys at law (if any) to: BRETT SIBLEY Voluntary Liquidator 250 Vesey Street, 5th Floor, New York NY 10080, United States of America Late claims will be "excluded from the benefit of any distribution made before such debts are proved." EFP (CAYMAN) 2006-2: Placed Into Voluntary Liquidation ------------------------------------------------------ EFP (Cayman) Funding 2006-2 Limited has been placed into Voluntary Liquidation pursuant to The Companies Law (as amended), following resolution by the sole shareholder of the firm on July 17, 2009. Brett Sibley of 250 Vesey Street, 5th Floor, New York 10080, has been appointed liquidator. Creditors of the company had until September 7 to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys at law (if any) to: BRETT SIBLEY Voluntary Liquidator 250 Vesey Street, 5th Floor, New York NY 10080, United States of America Late claims will be "excluded from the benefit of any distribution made before such debts are proved." EFP (CAYMAN) 2006-3: Placed Into Voluntary Liquidation ------------------------------------------------------ EFP (Cayman) Funding 2006-3 Limited has been placed into Voluntary Liquidation pursuant to The Companies Law (as amended), following resolution by the sole shareholder of the firm on July 17, 2009. Brett Sibley of 250 Vesey Street, 5th Floor, New York 10080, has been appointed liquidator. Creditors of the company had until September 7 to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys at law (if any) to: BRETT SIBLEY Voluntary Liquidator 250 Vesey Street, 5th Floor, New York NY 10080, United States of America Late claims will be "excluded from the benefit of any distribution made before such debts are proved." ESPIRITO SANTO: Members to Receive Wind-Up Report on September 24 ----------------------------------------------------------------- The members of Espirito Santo Telecoms Argentina will receive the liquidator's report on the company's wind-up proceedings and property disposal on September 24, 2009, at 9:00 a.m. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FININVESTMENTS LIMITED: Placed Into Voluntary Liquidation --------------------------------------------------------- Fininvestments Limited has been placed into Voluntary Liquidation pursuant to The Companies Law. The Company was put into liquidation on July 17, 2009, by a special resolution passed at an extraordinary meeting of the Company held that day. Alain Andrey at Fininvestments Ltd. has been appointed voluntary liquidator of the Company. To contact: ALAIN ANDREY Voluntary Liquidator Tel: +41 22 592 92 92 Email: aa@irr.ch HERSCHEL ABSOLUTE: Claims Bar Date Expired September 16 ------------------------------------------------------- Creditors of Herschel Absolute Return (Cayman) Fund had until September 16, 2009, to file proofs of claim against the firm. Herschel Absolute Return (Cayman) Fund has been placed into Voluntary Liquidation pursuant to the The Companies Law (2004 Revision), following resolution by the sole shareholder of the Company dated July 29, 2009. Walkers Corporate Services Limited has been appointed as Liquidator. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Anthony Johnson Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Tel: (345) 914-6314 Late claims will be "excluded from the benefit of any distribution made before such debts are proved." HERSCHEL MASTER: Claims Bar Date Expired September 16 ----------------------------------------------------- Creditors of Herschel Absolute Return Master (Cayman) Fund had until September 16, 2009, to file proofs of claim against the firm. Herschel Absolute Return Master (Cayman) Fund has been placed into Voluntary Liquidation pursuant to The Companies Law (2004 Revision, following resolution by the sole shareholder of the Company dated July 29, 2009. Walkers Corporate Services Limited has been appointed as Liquidator. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Anthony Johnson Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Tel: (345) 914-6314 Late claims "will be excluded from the benefit of any distribution made before such debts are proved." INVESTCORP ENERGY: Proofs of Claim Due October 9 ------------------------------------------------ Investcorp Energy And Shipping Fund Limited has been placed into Voluntary Liquidation pursuant to The Companies Law (2007 Revision, following special resolution by the shareholders of the company at an extraordinary general meeting held August 4, 2009. Mufeed Rajab and Harin Wijeyeratne of Box 5340, Manama, Bahrain, have been appointed Joint Liquidators. Creditors are to prove their debts or claims by October 9, 2009, and to establish any title they may have under the Companies Law (2007 Revision), or be excluded from the benefit of any distribution made before such debts are proved or from objecting to the distribution. To contact: PAGET-BROWN TRUST COMPANY LTD. On behalf of the Joint Voluntary Liquidators Officer for enquiries: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Tel: (345) 949-5122 Fax: (345) 949-7920 JPMORGAN FOCUSED: Claims Bar Date Expired September 16 ------------------------------------------------------ Creditors of JPMorgan Focused Equity Fund SPV Ltd. had until September 16, 2009, to file proofs of claim against the firm. JPMorgan Focused Equity Fund SPV Ltd. has been placed into Voluntary Liquidation pursuant to The Companies Law (2004 Revision), following resolution by the sole shareholder of the Company dated July 29, 2009. Walkers Corporate Services Limited has been appointed as Liquidator. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Anthony Johnson Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Tel: (345) 914-6314 Late claims will be "excluded from the benefit of any distribution made before such debts are proved." J.P. MORGAN PARTNERS: Creditors' Proofs of Debt Due on Sept. 30 --------------------------------------------------------------- The creditors of J.P. Morgan Partners (BHCA) Safetykleen, Inc. 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 6, 2009. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Telephone: (345) 914-6314 MS APPAREL: Creditors' Proofs of Debt Due on September 30 --------------------------------------------------------- The creditors of MS Apparel 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 6, 2009. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 MS APPAREL II: Creditors' Proofs of Debt Due on September 30 ------------------------------------------------------------ The creditors of MS Apparel II 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 6, 2009. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 PACTUAL MULTI: Shareholders' Final Meeting Set for September 24 --------------------------------------------------------------- The shareholders of Pactual Multi Strategies Fund Ltd. will hold their final meeting on September 24, 2009, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Bryant Terry Telephone: (345) 949 9876 Facsimile: (345) 949 1987 PARAMOUNT INVESTMENT: Creditors' Proofs of Debt Due on Sept. 30 --------------------------------------------------------------- The creditors of Paramount Investment Corporation 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 11, 2009. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 PLAZA NAKANOSHIMA: Claims Bar Date Expired September 16 ------------------------------------------------------- Creditors of Plaza Nakanoshima Holding Co., Ltd., had until September 16, 2009, to file proofs of claim against the firm. Plaza Nakanoshima Holding has been placed into Voluntary Liquidation pursuant to The Companies Law (2004 Revision), following resolution by the sole shareholder of the Company dated July 30, 2009. Walkers SPV Limited has been appointed as Liquidator. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Anthony Johnson Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Tel: (345) 914-6314 Late claims will be "excluded from the benefit of any distribution made before such debts are proved." SCL DELIGHT: Claims Bar Date Expired September 16 ------------------------------------------------- Creditors of SCL Delight Limited had until September 16, 2009, to file proofs of claim against the firm. SCL Delight Limited has been placed into Voluntary Liquidation pursuant to The Companies Law (2004 Revision) following resolution by the sole shareholder of the Company dated July 23, 2009. Walkers Corporate Services Limited has been appointed as Liquidator. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Anthony Johnson Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Tel: (345) 914-6314 Late claims will be "excluded from the benefit of any distribution made before such debts are proved." TLC FINANCE: Members to Receive Wind-Up Report on September 24 -------------------------------------------------------------- The members of TLC Finance Cayman Co., Ltd will receive the liquidator's report on the company's wind-up proceedings and property disposal on September 24, 2009, at 10:00 a.m. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands TRIAN SPV I: Creditors' Proofs of Debt Due on September 30 ---------------------------------------------------------- The creditors of Trian SPV I, Ltd. 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 11, 2009. The company's liquidator is: Walkers Fund Services Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9004, Cayman Islands Telephone: (345) 914-6314 TRI LIQUID STRATEGIES GP: Claims Bar Date Expired Sept. 16 ---------------------------------------------------------- Creditors of TRI Liquid Strategies GP had until September 16, 2009, to file proofs of claim against the firm. TRI Liquid Strategies GP Limited has been placed into Voluntary Liquidation pursuant to The Companies Law (As Amended) following resolution by the sole shareholder of the Company dated July 29, 2009. Avalon Management Limited has been appointed as liquidator. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Avalon Management Limited Landmark Square 1st Floor, 64 Earth Close West Bay Beach, PO Box 715, George Town Grand Cayman KY1-1107, Cayman Islands Tel: (+1) 345 769 4422 Fax: (+1) 345 769 9351 Late claims will be "excluded from the benefit of any distribution made before such debts are proved. UBS CAYMAN: Claims Bar Date Expired September 16 ------------------------------------------------ UBS Cayman Ltd. has been placed into Voluntary Liquidation pursuant to The Companies Law (2004 Revision), following resolution by the sole shareholder of the Company dated July 14, 2009. Walkers Corporate Services Limited has been appointed as Liquidator. Creditors of the Company had until September 16, 2009, to file proofs of claim against the firm. Creditors were required to send in their names and addresses and the particulars of their debts and claims and the names and addresses of their attorneys-at-law (if any) to: Anthony Johnson Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands Tel: (345) 914-6314 Late claims will be "excluded from the benefit of any distribution made before such debts are proved." VIETNAM EQUITY: Placed Into Voluntary Liquidation ------------------------------------------------- The Vietnam Equity Fund has been placed into Voluntary Liquidation pursuant to The Companies Law. The Company was put into liquidation on July 10, 2009, by a special resolution passed at an extraordinary meeting of the Company held that day. James Marshall -- at Tisco Tower, 16th Floor, 48 North Sathorn Road, Bangkok 10500, Thailand -- has been appointed voluntary liquidator of the Company. Creditors are invited to send in their names, addresses and the particulars of their debts or claims and the names and addresses of their attorneys-at-law (if any) to the liquidator, care of: James Marshall Voluntary Liquidator c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104, Cayman Islands ========= C H I L E ========= EMPRESA ELECTRICA: Inks US$3BB Electricity Supply Deal With Emel ---------------------------------------------------------------- Julian Dowling at Dow Jones Newswires reports that Chilean electricity distributor Empresas Emel SA has awarded power generator Empresa Electrica del Norte Grande SA a 14-year contract worth about US$3 billion to supply its distribution subsidiaries in northern Chile from 2012 to 2026. According to the report, Edelnor will supply Emel's subsidiaries -- Empresa Electrica de Arica SA (Emelari); Empresa Electrica de Iquique SA (Eliqsa); and Empresa Electrica de Antofagasta SA (Elecda), with a total 1,800 gigawatt hours of energy annually from 2012, gradually increasing to 2,300GWh by 2016 and remaining at that level until 2026. Dow Jones Newswires notes that Edelnor submitted the lowest economic bid -- US$89.99 per megawatt hour indexed 60% to the monthly average Henry Hub liquefied-natural-gas price and 40% to the U.S. consumer price index -- for all 23 sub-blocks of energy supplies on offer. Edelnor's bid, the report notes, came in well below the maximum price set by Emel for the tender, which was US$138.22/MWh, and below those of its rival generators. The report relates that AES Gener bid $105/MWh for one sub-block indexed 65% to the U.S. CPI and 35% to the monthly average coal price; while GasAtacama Chile SA bid between US$105 and US$138 for four sub-blocks indexed 90% to the monthly average diesel price and 10% to the U.S. CPI. The report says that as a result of the contract, LarrainVial changed its recommendation for Edelnor's shares to attractive from not attractive. About Edelnor Heaquartered in Chile, Empresa Electrica Del Norte Grande S.A. (aka Edelnor) -- http://www.edelnor.cl/-- is principally engaged in the generation, transportation, distribution and supply of electricity. Edelnor is also engaged in the purchase, transportation and sale of all types of fuel: liquid, solid and gaseous. The company offers advising services in engineering and management, as well as maintenance and repair of electronic systems. * * * As of June 18, 2009, the company continues to carry Moody's Ba3 rating. The company also continues to carry Standard and Poor's LT Issuer Credit ratings at BB-. =============== C O L O M B I A =============== BANCOLOMBIA SA: Cut to "Neutral" at HSBC on Valuation ----------------------------------------------------- Tian Huang at Bloomberg News reports that Bancolombia SA was downgraded to �neutral� from �overweight� at HSBC Holdings Plc, yesterday, September 22, 2009. Medellin-based Bancolombia trades for 15.3 times estimated 2009 earnings, Victor Galliano, a New York-based analyst with HSBC, wrote in a research report obtained by the news agency. The company fetches 12.3 times reported profit for the past 12 months, compared with 16.7 times for the benchmark IGBC index, according to Bloomberg data. �Much of the solid potential is, we believe, currently discounted by the share price,� the report quoted Mr. Galliano as saying. According to the report, Mr. Galliano said that Bancolombia�s asset quality has deteriorated as its non- performing loan ratio rose to 3.95% at the end of August from 3.6% in June. HSBC, the report relates, has a price estimate of US$41 for Bancolombia�s American depositary receipts. The ADRs have climbed 72% this year, the report adds. About Bancolombia S.A. Bancolombia S.A. is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * In May 2009, Moody's Investors Service upgraded from D to D+, Bancolombia S.A.'s financial strength rating. The outlook on the BFSR was changed to "stable", from "positive". Bancolombia's long-term and short-term local currency deposit ratings of "Baa2" and "Prime- 3", as well as the long-term and short-term foreign currency deposit ratings of "Ba2" and "Not Prime" were affirmed by Moody's. Bancolombia's foreign currency subordinated debt rating of"Baa3" was also affirmed with a stable outlook by the rating firm. Fitch Ratings affirmed on June 2009 Bancolombia's long- and short- term Issuer Default Ratings and outstanding debt ratings as follows: Long-term foreign currency IDR at 'BB+'; Short-term foreign currency IDR at 'B'; Long-term local currency IDR at 'BB+'; Short-term local currency IDR at 'B'; Individual at 'C/D'; Support at '3'; Support Floor at 'BB-'. At the same time the rating for Bancolombia's subordinated debt maturing May 2017 was affirmed at 'BB'. The Rating Outlook is Stable. ECOPETROL SA: Discloses Progress Report at Quifa Block ------------------------------------------------------ Ecopetrol S.A. reported that Meta Petroleum LTD has completed drilling the exploratory well Quifa-9 in Prospect D, which forms part of the Quifa Partnership Contract, in the Llanos Orientales basin, located in the Meta province in Colombia. Pursuant to the Quifa Partnership Contract, Ecopetrol shares 30% of the costs and investments, and receives 40% of the hydrocarbons produced. The Quifa-9 well is the fourth type A-3 exploratory well drilled in the Quifa block during 2009. Information gathered from electronic records indicates the presence of the Formacion Arenas Basales de Carbonera at an actual vertical depth of 2,304 feet, as well as water-oil contact at 2,333 feet. In the coming days, operator Meta Petroleum LTD and Ecopetrol SA will define the technical aspects of the tests to be performed and move on to the eventual completion of the Quifa-9 well as a hydrocarbon producer. With respect to the previously drilled wells in the Quifa block, the Quifa-7 and Quifa-8 wells are currently in the initial testing stage while the Quifa-5 well has completed extensive testing. The results were : Well Test duration Average daily oil production (barrels a day) Quifa-5 5 months 169 Quifa-7 7 days 154 Quifa-8 16 days 178 Pursuant to the Quifa Partnership Contract, operator Meta Petroleum LTD is preparing the documentation required to request a declaration from Ecopetrol of commercial viability of the discoveries. About Ecopetrol S.A. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. under the symbol ECOPETROL. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined-products. * * * As reported in the Troubled Company Reporter-Latin America on July 15, 2009, Fitch Ratings assigned a 'BB+' rating to Ecopetrol S.A.'s proposed issuance of at least US$1 billion senior unsecured notes due 2019. Proceeds will be used for investments and general corporate purposes. ============= J A M A I C A ============= CIBONEY LIMITED: Continues to Struggle With Huge Liabilities ------------------------------------------------------------ Ciboney Limited is continuing to struggle with huge liabilities, RadioJamaica reports. According to the report, at the end of its 2008/2009 financial year in May, the company had net current liabilities of US$112 million. The report relates that this was a US$7 million decline over the figure reported in the previous year. However, the report notes that despite its weak asset base, Ciboney Limited was able to realize a US$6.8 million profit compared to a US$4.4 million loss in 2008. The improvement was due to gains from foreign exchange fluctuations, the report says. Ciboney Group Limited -- http://www.ciboney.com/-- is a Jamaica- based company primarily engaged in the hospitality industry. Through its subsidiaries the Company is engaged in the business of acquiring, developing and letting resort properties. The company's wholly owned subsidiaries include Ciboney Hotels Limited, Leisure Operators Limited, and Luxury Resorts Enterprises Limited and its wholly owned subsidiary, Number Sixty Limited. Ciboney Group Limited is a subsidiary of Crown Eagle Life Insurance Company Limited and its ultimate parent is Finsac Limited. NATIONAL COMMERCIAL BANK: Lee Chin Sells Another 5% in Firm ----------------------------------------------------------- Camilo Thame at Jamaica Observer reports that Canadian investor Michael Lee Chin sold another 5% stake in National Commercial Bank Jamaica Limited this year, reducing his ownership to just over 62%. The report relates that since the start of 2009, entities owned by Mr. Chin sold 131 million (5.3%) NCB shares of the total shares in issue. According to the report, most of the shares were taken up through five institutions -- Stocks and Securities Limited, Capital and Credit Merchant Bank, GraceKennedy Pension Scheme, VMBS Contributory Pension Scheme and the National Insurance Fund -- with the bulk, or 89 million shares, being grabbed up through SSL. The Observer recalls that Lee Chin bought a 75% stake in NCB back in 2002 for US$127 million (JM$6 billion in 2002), of which US$56 million (JM$2.65 billion in 2002) was made as a downpayment. NCB Atrium. The report notes that since acquiring the commercial bank, his companies sold off close to 360 million -- net of buying and selling during the period -- or 14.6% of NCB's total shares. Of those shares, the report says, 49.4 million NCB (or 2%) of the commercial bank's shares was transferred to Advantage General Insurance Company, which was purchased under a deal in 2006 that had Mr. Chin pumping nearly JM$750 million into UGI for an 80% stake in the general insurer. Now AIC Barbados and AIC Global Holdings Limited collectively hold 1.49 billion shares (60%), the Observer adds. About NCB Jamaica Headquartered in Kingston, Jamaica, the National Commercial Bank Jamaica Limited -- http://www.jncb.com/-- provides commercial and retail banking, wealth management services. The company's services include personal banking, business banking, mortgage loans, wealth management and insurance services. Founded in 1977, the bank primarily operates in West Indies and the U.K. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, Standard & Poor's Ratings Services said that it lowered its long-term ratings on National Commercial Bank Jamaica Ltd., including the counterparty credit rating, to 'CCC+' from 'B-'. At the same time, S&P lowered its survivability assessment on NCB to 'B+' from 'BB+'. The outlook is negative. =========== M E X I C O =========== CEMEX SAB: Share Sale May Need 10% Discount ------------------------------------------- CEMEX, S.A.B. de C.V. may have to sell shares at a discount of as much as 10% to market price as it competes for investor funds, Thomas Black and Hugh Collins at Bloomberg News report, citing Actinver SA. As reported in the Troubled Company Reporter-Latin America on September 11, 2009, Reuters said that Cemex SAB hold its US$1.8 billion share offer on September 23. A TCRLA report on September 9, related that 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. According to Bloomberg News, Cemex SAB's stock sale is set on the same day HeidelbergCement AG will offer 62.5 million shares. Then report relates that Brazilian real estate companies Rossi Residencial SA, PDG Realty SA Empreendimentos e Participacoes and Multiplan Empreendimentos Imobiliarios SA also plan stock sales in the next coming weeks. �There�s a lot of paper trying to come through,� the report quoted William Landers, who oversees about US$6 billion in Latin American stocks at BlackRock Inc. in Plainsboro, New Jersey, as saying. �They are definitely going to have to compete for investors� attention and capital.� Mr. Landers added. Bloomberg News notes that Rogelio Gallegos, who oversees $255 million in Mexico City at Actinver, Mexico�s largest independent money manager, said Cemex�s planned 1.2 billion-share offering, will require a discount as �candy� to lure investors. The report relates that David Riedel, the president of Riedel Research Group Inc. in New York, predicts Cemex will offer 5% less than current prices 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)'. CEMEX SAB: Antitrust Authorities Search Spanish Unit ---------------------------------------------------- Thomas Black at Bloomberg News report that Officers of the Spanish National Antitrust Commission searched the premises of Cemex Espana SA as part of a probe into possible price-fixing and market-sharing agreements. According to the report, the antitrust commission that it may decide to initiate a formal proceeding alleging violations of antitrust regulations and that the preliminary probe doesn�t �pre- judge� the companies being inspected. If unlawful practices are proven, authorities may impose penalties of as much as 10% of total sales volume, the commission added. Anthony Harrup at Dow Jones Newswires relates that an unnamed Cemex spokesman said the company is cooperating with Spanish authorities in the matter. Dow Jones Newswires notes that Spain accounted for US$419 million of Cemex SAB's US$7.83 billion in sales in the first six months of 2009. In November, the Bloomberg News recalls, Cemex SAB�s offices in the U.K. and Germany were searched by European Union competition authorities seeking information related to an antitrust investigation; while in Colombia, Cemex, Holcim and local producer Cementos Argos SA were fined US$1.3 million in December for fixing prices in 2005. Bloomberg News adds that tn Mexico, antitrust authorities are also investigating possible collusion involving Cemex and other cement makers. However, the Bloomberg News relates, Cemex said that the investigation is groundless. 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 INTERAMERICANA: S&P Junks Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its ratings, including the corporate credit rating, on Corporacion Interamericana de Entretenimiento S.A.B. de C.V. to 'CCC+' from 'B+'. The ratings were removed from CreditWatch, where they were placed with negative implications on May 7, 2009. The outlook is negative. "The downgrade reflects tightened liquidity as a consequence of the company's high leverage," said Standard & Poor's credit analyst Monica Ponce. "It also reflects continued weakness in operating results and key credit measures during second-quarter 2009." The ratings on CIE also reflect the company's exposure to economic cycles, the need to constantly add more attractions and events to its catalog, the uncertain availability of international talent, and the ongoing need to renew venues' concessions (though not necessarily in the medium term) and sponsorship contracts. CIE has been successful in these renewals, however. The ratings further reflect CIE's highly leveraged financial profile and weak cash flow generation. Offsetting factors include the favorable competitive position of its CIE Las Americas division, which operates an entertainment complex in Mexico City -- its only horse racing track and the country's largest convention center -- in addition to a growing network of off-track betting and numbers-based gaming venues (Sports Books & Yaks) across Mexico. The negative outlook reflects S&P's concern regarding the company's ability to pay its short-term debt maturities, especially on its issues in the domestic capital market. It also reflects S&P's expectation that the company's key credit measures and highly leveraged financial profile could keep deteriorating if difficult economic conditions persist. GRUMA SAB: Finishes Negotiations on US$738.3 Million in Debt ------------------------------------------------------------ Carlos Manuel Rodriguez and Hugh Collins at Bloomberg News report that Gruma, S.A.B. de C.V. concluded its negotiations to convert US$738.3 million of derivatives losses into medium-and long-term debt. The report relates the company said that the loans, which would be 10% larger that previously stated, will keep the �terms and conditions announced.� A September 30 deadline to finish paperwork includes a �definitive approval process� from the banks, Gruma SAB added. As reported in the Troubled Company Reporter-Latin America on July 29, 2009, Bloomberg News noted that Gruma SAB said it has extended to August 24 the deadline for completing debt negotiations with counterparties of US$727 million in derivatives trades. The report related that the company had previously asked banks for the same extension talks dated July 24. Anthony Harrup at Dow Jones Newswires reported that the agreements seek to swap the derivatives debts into a series of medium-and long-term loans, which include accords to exchange: -- US$13.9 million in derivatives liabilities with the Royal Bank of Scotland Group PLC, -- US$22.9 million with Standard Chartered Bank PLC (SCZ.ZM), -- US$21.5 million with Barclays PLC for three-year loans, and -- another to swap US$668.3 million in currency losses with Credit Suisse Group, Deutsche Bank AG and JPMorgan Chase & Co. for a 7.5-year loan. Reuters added that the company, citing a statement to the Mexico Stock Exchange, said Gruma SAB needs to successfully refinance a 5-year revolving credit line with Bancomer and a 3.4 billion-peso loan from government export bank Bancomext in order to sign on to a long-term payment plan. Gruma SAB incurred a net loss of Ps.12,339,758 in fiscal year ended December 31, 2008, and had obligations to its derivative counterparties as of December 31, 2008 in the amount of Ps.11,230,170. In addition, the company had long-term debt in the amount of Ps.11,728,068 as of December 31, 2008, some of which it will be required to renegotiate in order to be able to finance its obligations to its derivative counterparties on a long-term basis. "These facts raise substantial doubt about the Company's ability to continue as a going concern," PricewaterhouseCoopers LLP, in Monterrey, Mexico, auditor of the Company, said. About Gruma, S.A.B. Headquartered in Monterrey, Mexico, Gruma, S.A.B. de C.V. -- http://www.gruma.com-- is a corn flour and tortilla producer and distributor. The company conducts its U.S. and European operations principally through its subsidiary, Gruma Corporation, which manufactures and distributes corn flour, packaged tortillas, corn chips and related products. As of Dec. 31, 2007, Gruma held approximately 8.62 % of the capital stock of Grupo Financiero Banorte, S.A.B. de C.V. * * * As reported in the Troubled Company Reporter-Latin America on July 30, 2009, Standard & Poor's Ratings Services said that its ratings on GRUMA S.A.B. de C.V., including its 'B+' corporate credit rating, remain on CreditWatch with negative implications, where they were placed on Oct. 13, 2008. S&P based that action on its perception of GRUMA's more aggressive financial policy, including the use of derivative instruments. ======= P E R U ======= BANCO DE CREDITO: Fitch Lifts Subordinated Debt Rating From 'BB+' ----------------------------------------------------------------- Fitch Ratings has upgraded Banco de Credito del Peru's ratings: -- Foreign currency long-term Issuer Default Rating to 'BBB' from 'BBB-'; -- Foreign currency short-term IDR to 'F2' from 'F3'; -- Local currency long-term IDR to 'BBB' from 'BBB-'; -- Local currency short-term IDR to 'F2' from 'F3'; -- Subordinated debt to 'BBB-' from 'BB+'. At the same time, Fitch has affirmed these ratings: -- Individual rating at 'C'; -- Support rating at '3'; -- Support Floor at 'BB+'. The Rating Outlook is revised to Stable from Positive. BCP ratings were upgraded in view of the bank's strong performance through the crisis. Despite a slowing economy, the bank's performance has been much less affected than that of regional peers, and Fitch expects that the bank's capital levels, which have strengthened as growth slows, should remain at levels somewhat higher than its historical levels during periods of growth. In spite of a deteriorating economic backdrop, BCP managed to maintain a very good - albeit declining - asset quality and sustain adequate reserve coverage while achieving high profitability and strengthening its capital. As the global recession touches bottom, BCP boasts one of the lowest level of Past Due Loans of its regional peers and improved capital ratios within a more stringent regulation. Fitch expects that BCP's asset quality will continue to deteriorate within reasonable levels but is confident that the bank's sound capital base, ample reserves and proven earnings generation capacity provide it a sufficient cushion to face incremental loan loss provision requirements and underpin capital levels as it resumes a moderate growth. The ratings also consider expectations that the Peruvian economy will show a return to moderate growth in 2010. BCP's ratings reflect its dominant franchise, important market share across all segments, sound performance, diversified balance sheet and revenue stream, broad, low cost deposit base, still good asset quality, adequate reserve coverage and improved capital. The ratings highlight BCP's systemic importance and the depth and breadth of its management; they also factor in its somewhat high obligor concentration and expected asset quality deterioration. Given BCP's systemic importance, it would likely receive support from the government, should it be required. Peru's ability to provide such support is considered moderate given its economic performance and challenges; Peru's sovereign rating is rated 'BBB-/BBB' by Fitch. BCP's IDRs are driven by the bank's Individual rating which, in Fitch's view, is stable over the near and medium term; the banks' foreign currency IDR is at the country ceiling. The Individual rating could suffer if the operating environment were to turn down significantly, affecting the bank's asset quality to the point that it could weaken the credit fundamental outlined earlier; given Peru's resilience through the global crisis, this does not appear likely at this time. Downside for the IDRs is limited by the Support Floor of 'BB+'; the latter is driven by the bank's systemic importance, alone among rated Peruvian institutions. BCP's performance was driven by sustained portfolio growth in 2008 and resilient margins coupled with profitable investments in 2009. Non-interest revenues continued to contribute about 45% of total operating revenues while costs grew reflecting the bank's expansion; nevertheless, efficiency improved. Loan loss provisions have increased significantly in anticipation of asset quality deterioration but net income and profitability remain flattering. At June 2009, BCP achieves a ROAE of 26% and a ROAA of 2.0%. Portfolio quality declined but remained healthy with PDLs below the industry average and its regional peers. Loan loss reserves cover PDLs comfortably and the bank boasts substantial earnings generation that should underpin adequate reserve coverage. Funding is broadly based and has a relatively low cost while liquidity is ample. BCP's capital ratios improved in spite of more stringent capital rules thanks to a more moderate growth and to substantial capitalization of earnings. BCP's regulatory capital ratio stood at 14.2% at July 2009. As the recession seems to have touched bottom, loan growth is expected to accelerate in the next months but should remain below the recent highs. Margins should remain fairly stable while costs are expected to decline in relative terms. Asset quality should continue declining within reasonable levels and pressuring LLPs; accordingly, BCP's net income could see some deterioration but should remain positive at still flattering levels when compared to its peers. Capital ratios and loan loss reserves -- should be underpinned by BCPs still strong profitability. BCP is Peru's largest bank, with a dominating market share of about 37% of the system's assets. It is the principal operating company within Credicorp, Peru's largest financial services company, which controls 97.4% of BCP; Credicorp is widely held. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: To Organize Firm to Develop Block Junin 6 ------------------------------------------------------------------ Petroleos de Venezuela S.A. and the National Oil Consortium, a joint venture comprising Russian companies Rosneft, Lukoil, Gazprom, TNK-BP and Surgutneftegaz signed agreements aimed at organizing a Mixed Company intended to develop the Jun�n 6 heavy crude oil block in the Orinoco Oil Belt. During implementation, the production of the project is estimated at 400,000-500,000 bpd of extra heavy crude oil with cutting-edge technology. The crude will be processed in a crude upgrader unit down to 42 API degrees. Additionally, the mixed company will develop the basic engineering of a refining compound intended to manufacture products from the extra heavy crude oil. PDVSA is to own a 60% stake in the mixed company, with NNK owning a 40% stake. The mixed company will have a duration of 25 years, in accordance with the guidelines of the People's Ministry of Energy and Petroleum. This new strategic alliance between Venezuela and Russian is part of the new pluripolar approach the Bolivarian Government has devised in its investment plans to optimize Venezuela's energy resources. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' =============== X X X X X X X X =============== * LATAM: And Caribbean FDI Inflows Overall by 13% in 2008 --------------------------------------------------------- Foreign direct investment inflows to the Latin America and Caribbean region rose overall by 13% in 2008, to US$144 billion, the World Investment Report 2009 revealed. But there were wide variations within the region. In 2008, while FDI inflows grew by 29% in South America, they were negative (-6%) in Central America and the Caribbean. This divergence reveals the differing impacts of the global financial crisis on the two subregions' economies. The downturn of FDI to Central America and the Caribbean was largely due to the strong decrease in inflows to Mexico (-20%), which was hit hard by the slowdown of the United States economy. South America, on the other hand, was affected by the crisis much later, so that inflows continued to increase for much of the year. There was robust growth of inward FDI to Argentina (up 37%), Chile (33%) and Brazil (30%), and, to a lesser extent, Colombia (17%). Together, these four countries accounted for 89% of the subregion's total inflows. Activities related to natural resources continued to be the main attraction for FDI in South America, and natural resources are increasingly becoming a significant FDI target in Central America and the Caribbean. In particular, FDI in the metal extractive industry boomed in 2008: cross-border mergers and acquisitions (M&As) targeting this industry amounted to US$9 billion - an eightfold increase from the previous year. In contrast, the value of cross-border M&A sales in the oil and gas industry turned negative, indicating divestments by foreign firms. The manufacturing sector as a whole saw a decline in FDI due to a sharp drop in flows to Central America and the Caribbean, where foreign-owned export-oriented manufacturing activities are closely tied to the United States economic cycle. In South America, on the other hand, FDI in manufacturing was more or less stable. This is because the sector is highly concentrated in natural-resources- related activities and is more oriented to the internal market and to export destinations other than the United States. FDI outflows from Latin America and the Caribbean increased in 2008 by 22% to US$63 billion. Soaring outflows from South America, which grew by 131%, more than compensated for a 22% decline of outflows from Central America and the Caribbean. Brazil registered the strongest increase, with outflows amounting to US$20 billion - 189% higher than the previous year. By contrast, outflows from Mexico plummeted to US$700 million from their previous level of US$8 billion. Cross-border acquisitions by Mexican firms declined in 2008 (down $358 million from 2007) because sales of existing foreign affiliates of Mexican-based TNCs were higher than the purchases of firms abroad by Mexican-based TNCs. The global financial crisis and the fall in commodity prices have revealed the vulnerabilities of Brazilian and Mexican TNCs, which are exposed to volatile exchange rates and commodity prices. Declines are expected in 2009 in both FDI inflows and outflows, as the impact of the global economic and financial crisis on international trade and credit markets for investment begins to spread to the whole region. However, in the medium term, higher commodity prices could attract more natural-resource-related inward FDI. Prospects for FDI outflows will depend on world economic growth trends, and on the capacity of Latin American TNCs to overcome financial problems deriving from the global crisis. *********** 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 * * *