/raid1/www/Hosts/bankrupt/TCRLA_Public/090930.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 30, 2009, Vol. 10, No. 193
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L: SFG Receiver Stops Owner's Bid to Access Funds
STANFORD INT'L: Owner Moved to Federal Lockup in Houston
A R G E N T I N A
DOMINGO ILVENTO: Creditors' Proofs of Debt Due on November 30
FOOD & BEVERAGE: Creditors' Proofs of Debt Due on November 6
KONFLUENCIA SA: Creditors' Proofs of Debt Due on November 18
LA BEAUTY: Creditors' Proofs of Debt Due on October 27
PVR SA: Creditors' Proofs of Debt Due on December 3
TALLERES REUNIDOS: Creditors' Proofs of Debt Due on November 30
UOLE SA: Creditors' Proofs of Debt Due on November 17
B O L I V I A
* BOLIVIA: Moody's Upgrades Government Bond Ratings to 'B2'
B R A Z I L
ANHANGUERA EDUCATIONAL: Begins Debenture Road Show
BROOKFIELD INCORPORACOES: CVM OKs BRL100 Million Debentures
COMPANHIA ENERGETICA: Moody's Affirms 'Ba2' Corp. Family Rating
GOL LINHAS: ANAC' Approves Flights to Venezuela and Aruba
C A Y M A N I S L A N D S
ASTERION FUND: Members to Receive Wind-Up Report on October 2
BGI ALPHA: Shareholders' Final Meeting Set for October 2
CDO AMP 30MM2-4: Shareholders' Final Meeting Set for October 2
CRUSADER INTERNATIONAL: Members to Hear Wind-Up Report on Oct. 1
CULROSS FINANCE: Shareholder to Receive Wind-Up Report on Oct. 2
DOLOMITE GLOBAL: Shareholders' Final Meeting Set for October 1
EVERBRIGHT INVESTMENT: Shareholders' Final Meeting Set for Oct. 2
FRM MULTI-STRATEGY: Shareholders' Final Meeting Set for October 2
FRM MULTI-STRATEGY: Shareholders' Final Meeting Set for October 2
G SQUARE: Shareholders' Final Meeting Set for October 2
GALLEON HEALTH: Shareholders' Final Meeting Set for October 2
GOLDMAN SACHS: Shareholders' Final Meeting Set for October 2
HEDGE SELECT 4: Shareholders' Final Meeting Set for October 2
J.P. MORGAN PARTNERS: Shareholders' Final Meeting Set for Oct. 2
MOTO VELO: Shareholder to Receive Wind-Up Report on October 2
PARAMOUNT INVESTMENT: Shareholders' Final Meeting Set for Oct. 2
PEQUOT UTILITY: Shareholders' Final Meeting Set for October 2
PIVOT STRATEGIC: Shareholders' Final Meeting Set for October 2
RAMIUS FUND: Shareholders' Final Meeting Set for October 2
RIAN INVESTMENTS: Members to Receive Wind-Up Report on October 2
SCP KOALA: Shareholders' Final Meeting Set for October 2
SOUTHWICK LIMITED: Shareholder to Receive Wind-Up Report on Oct. 2
TRIAN SPV: Shareholders' Final Meeting Set for October 2
VR MACRO: Shareholders' Final Meeting Set for October 2
WESTERN ASSET: Shareholders' Final Meeting Set for October 1
C O L O M B I A
EMPRESAS PUBLICAS: Fitch Upgrades Issuer Default Rating From 'BB+'
D O M I N I C A N R E P U B L I C
BANCO DE RESERVAS: Fitch Affirms 'B' Issuer Default Rating
E C U A D O R
* ECUADOR: External Debt Restructuring Is "Urgent Issue"
G R E N A D A
* GRENADA: IMF Issues Statement Regarding Mission to Country
J A M A I C A
AIR JAMAICA: Cuts 300 Jobs to Reduce Staff Complement by 15%
JPSCO: Needs to Increase Efficiency, Opposition Says
RBTT BANK: To Cut Jobs; Offers Voluntary Separation Program
P E R U
BANCO DE CREDITO: Buys Additional 8.5% Of Edyficar for US$8.2 Mil.
P U E R T O R I C O
AES PUERTO: Fitch Affirms Rating on $161.9 Mil. Tax-Exempt Bonds
T R I N I D A D & T O B A G O
CL FINANCIAL: Consumer Guarantee Wins CLICO Bid
T U R K S & C A I C O S I S L A N D S
* TURKS & CAICOS: Deficit Drops From US$19 Million to US$5 Million
V E N E Z U E L A
PETROLEOS DE VENEZUELA: To Resume Large-Scale Gasoline Exports
* VENEZUELA: To Issue US$3 Billion in 2019, 2024 Bonds
* VENEZUELA: Inks Oil Extraction at Orinoco Region With Vietnam
* VENEZUELA: Sets Price Range for US$3B Bond Offer at 135% to 140%
X X X X X X X X
* LATAM: World Bank Forecasts 10 Million Becoming Poor in Region
* S&P's 2009 Global Corporate Default Tally at 216
- - - - -
===============================
A N T I G U A & B A R B U D A
===============================
STANFORD INT'L: SFG Receiver Stops Owner's Bid to Access Funds
--------------------------------------------------------------
Stanford Financial Group court-appointed receiver, Ralph Janvey,
told U.S. District Judge David Godbey that Robert Allen Stanford,
the financier accused of orchestrating a multi-billion scheme,
tried to access insurance funds to pay his lawyers at a hearing in
a London Chancery court, Laurel Brubaker Calkins at Bloomberg News
reports. The report relates Mr. Janvey said Mr. Stanford is
trying “a blatant attempt to end run this court” by asking the
U.K. court to order the insurer to pay over the receiver’s
objections.
According to the report, Judge David Godbey ordered Mr. Stanford
to withdraw his petition from the London court. “It appears that
Mr. Stanford is purporting to seek relief before another tribunal
relating to the policies,” the report quoted Judge Godbey as
saying. “Such actions by Stanford both violate the terms of this
court’s prior orders, as well as threaten to interfere with this
court’s jurisdiction over the policies,” Judge Godbey added.
Bloomberg News notes that Mr. Janvey has been fighting Mr.
Stanford’s efforts to unlock frozen assets or access his Lloyd’s
of London liability insurance to hire lawyers to defend him
against civil and criminal cases.
“The court’s order is entirely appropriate,” Mr. Janvey said in a
statement issued by his spokeswoman, Kristie Blumenschein, the
report points out. “It is very unfortunate that Mr. Stanford and
his attorneys continue to engage in conduct which needlessly
increases the costs of litigation to the receivership,” Mr. Janvey
added.
About Stanford International Bank
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: Owner Moved to Federal Lockup in Houston
--------------------------------------------------------
U.S. District Judge David Hittner has agreed to move Robert Allen
Stanford, the financier accused of orchestrating a multi-billion
fraud, to the Federal Detention Center in Houston by October 1 and
will be housed there until his trial, Gina Keating at Reuters
reports. The report relates that move made so that Mr. Stanford
will be closer to his attorneys.
Mr. Stanford is currently housed in the Conroe, Texas, jail since
his arrest on June 18.
According to the report, in his order, Judge Hittner wrote that a
transfer was appropriate "because of the unique circumstances
. . . in the case," including the "gravity of the charges, the
hundreds of thousands of records involved, and the enormous amount
of time . . . necessary to review them."
Reuters notes that federal prosecutors did not oppose the motion.
Mr. Stanford's next court appearance is set for October 14.
About Stanford International Bank
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
=================
DOMINGO ILVENTO: Creditors' Proofs of Debt Due on November 30
-------------------------------------------------------------
The court-appointed trustee for Domingo Ilvento S.A.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
November 30, 2009.
The trustee will present the validated claims in court as
individual reports on February 15, 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 30, 2010.
FOOD & BEVERAGE: Creditors' Proofs of Debt Due on November 6
------------------------------------------------------------
Estudio Stupnik & Varnavoglu, the court-appointed trustee for Food
& Beverage Investments SA's bankruptcy proceedings, will be
verifying creditors' proofs of claim until November 6, 2009.
The trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 49, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
Creditors will vote to ratify the completed settlement plan
during the assembly on September 2, 2010.
The Trustee can be reached at:
Estudio Stupnik & Varnavoglu
Parana 783
Argentina
KONFLUENCIA SA: Creditors' Proofs of Debt Due on November 18
------------------------------------------------------------
Nelida Cuaarro, the court-appointed trustee for Konfluencia SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until November 18, 2009.
The trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 20 in Buenos Aires, with the assistance of Clerk
No. 39, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
Creditors will vote to ratify the completed settlement plan
during the assembly on August 18, 2010.
The Trustee can be reached at:
Nelida Cuaarro
Paraguay 1269
LA BEAUTY: Creditors' Proofs of Debt Due on October 27
------------------------------------------------------
The court-appointed trustee for La Beauty Line S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
October 27, 2009.
PVR SA: Creditors' Proofs of Debt Due on December 3
---------------------------------------------------
The court-appointed trustee for P.V.R. S.A.'s reorganization
proceedings, will be verifying creditors' proofs of claim until
December 3, 2009.
The trustee will present the validated claims in court as
individual reports on March 31, 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.
TALLERES REUNIDOS: Creditors' Proofs of Debt Due on November 30
---------------------------------------------------------------
Estudio Hercman y Asociados, the court-appointed trustee for
Talleres Reunidos Italo Argentino Saicafi's bankruptcy
proceedings, will be verifying creditors' proofs of claim until
November 30, 2009.
The trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 45, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
Creditors will vote to ratify the completed settlement plan
during the assembly on September 16, 2010.
The Trustee can be reached at:
Estudio Hercman y Asociados
Montevideo 496
Argentina
UOLE SA: Creditors' Proofs of Debt Due on November 17
-----------------------------------------------------
The court-appointed trustee for Uole S.A.'s reorganization
proceedings, will be verifying creditors' proofs of claim until
November 17, 2009.
The trustee will present the validated claims in court as
individual reports on February 12, 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
April 8, 2010.
Creditors will vote to ratify the completed settlement plan
during the assembly on August 10, 2010.
=============
B O L I V I A
=============
* BOLIVIA: Moody's Upgrades Government Bond Ratings to 'B2'
-----------------------------------------------------------
Moody's Investors Service has upgraded Bolivia's foreign- and
local-currency government bond ratings to B2 from B3. The outlook
is stable.
"The upgrade was prompted by general improvements to Bolivia's
main debt metrics and the reduction of the still-high levels of
domestic political confrontation," says Gabriel Torres, a Moody's
vice president and sovereign analyst for Bolivia.
Moody's also upgraded Bolivia's country ceiling for foreign
currency bonds to B1 from B2 and the country ceiling for bank
deposit to B3 from Caa1. The outlook on these ceilings is stable.
The Ba1 country ceiling for local currency bonds and the Ba3
ceiling for local currency deposits were not affected.
"Years of above-trend growth and the benefits of external debt
forgiveness have significantly improved most of Bolivia's credit
metrics. Foreign reserves are now close to 50% of GDP, and
government savings surpass 10 % of GDP," said Torres.
He said political and policy differences between the government
and the opposition are still wide in the run-up to December's
national election even though last year's political turmoil has
subsided.
"Going forward the political system will likely be tested to
resolve these differences without affecting the strength of
institutions or the implementation of public policy," said Torres.
Bolivia's economy has performed well through the world credit
crisis, growing over 6% last year and is likely to be among the
few countries in the region to register positive growth in 2009.
But the country will be challenged to maintain recent growth rates
given very low investment ratios. Even though the fiscal accounts
will deteriorate this year, the government has substantial savings
it can use to smooth revenues and expenditures, thanks to three
years of surpluses.
"With little debt rollover risk, and higher international reserves
and savings, the country and the government are well positioned to
manage any foreseeable economic or financial challenges in the
near future," said Torres. "But medium- and long-term concerns
about political stability and economic development will continue
to constrain the ratings unless they are addressed."
He said Bolivia is one of the poorest countries among those rated
by Moody's, and its low level of economic development is a
structural ratings limitation.
Moody's last rating action on Bolivia's ratings was taken on
May 24, 2006, when the foreign currency bond ceiling was upgraded
to B2. The government's foreign and local bond ratings were last
changed on April 16, 2003, when they were downgraded to B3 from
B1.
===========
B R A Z I L
===========
ANHANGUERA EDUCATIONAL: Begins Debenture Road Show
--------------------------------------------------
Anhanguera Educacional Participacoes SA started a road show for
potential debenture investors on September 29, 2009, Rogerio
Jelmayer at Dow Jones newswires reports, citing a company
statement.
According to the report, the company will be promoting a non-
convertible debenture issue of up to BRL200 million (US$110
million). The report relates that the presentation to investors
will run until October 1.
Dow Jones notes that the debentures will be issued through two
series. Banco Itau BBA was hired to coordinate the operation.
As reported in the Troubled Company Reporter-Latin America on
September 22, 2009, Dow Jones Newswires said that Anhanguera
Educacional is planning to raise BRL50 million (US$27 million)
from the issue of non-convertible debentures. According to the
report, the debentures will mature in 24 months and the company is
proposing to pay an annual interest rate of up to 2.5 percentage
points. The report related that Anhanguera Educational said that
it will use the proceeds to finance its expansion plans.
About Anhanguera Educacional
Anhanguera Educacional Participacoes SA --
http://www.unianhanguera.edu.br/ -- is a Brazil-based private,
for-profit professional education company. AESA is a holding
company which directly or indirectly controls and supports the
operations of all of its campuses and owns 100% of the capital of
Poona, Sapiens, Jacareiense, and AESA Publicacoes. The company
operates three education networks, Microlins, providing vocational
training centers offering short-term programs in Information
Technology and Business Administration, Anhanguera/LFG, composed
by distance-learning centers, offering undergraduate, graduate and
extension programs, and Anhanguera, constituted by campuses
offering more than 90 undergraduate programs, in addition to on-
campus and distance-learning graduate and extension programs. In
2008, the company acquired 30% of the share capital of Editora
Microlins Brasil Ltda and fully acquired LFG Business e
Participacoes Ltda.
* * *
As reported in the Troubled Company Reporter-Latin America on
September 21, 2009, Standard & Poor's Ratings Services said that
it assigned its 'BB-' global scale corporate credit rating to
Anhanguera Educacional Participacoes S.A. and affirmed its 'brA'
Brazilian national scale corporate credit and debenture ratings on
the company. The outlooks are stable.
BROOKFIELD INCORPORACOES: CVM OKs BRL100 Million Debentures
-----------------------------------------------------------
The Brazilian Securities Commission (CVM) approved an issue of
debentures worth BRL100 million (US$56 million) by the local
estate company Brookfield Incorporacoes SA, Rogerio Jelmayer at
Dow Jones Newswires reports.
According to the report, the debentures will mature on
September 1. The company hired BTG Pactual to coordinate the
operation.
Dow Jones Newswires notes that so far this year, local companies
have raised BRL7.35 billion from debentures issues. By
comparison, the report relates, in 2008 Brazilian companies raised
a total of BRL37.45 billion from this kind of operation.
About Brookfield Incorporacoes
Brookfield Incorporacoes SA (former Brascan Residential Properties
SA) is a Brazil-based company engaged in real estate sector. The
Company is the developer of high-end and luxury residential
buildings, houses, as well as office buildings in Sao Paulo and
Rio de Janeiro metropolitan regions. Its operations include land
acquisition, planning, construction, sales, financing, customer
service, design, development and management of real estate
projects targeted at mainstream, luxury homebuyers. The company's
buildings include Reserva de Itauna, Edificio San Francisco,
Chacara de Pinheiros, Time Square and Saint Tropez, among others.
As of June 22, 2009, the Company had its name changed after the
merger of three companies: Brascan Residential, Company and MB
Engenharia. The company's major shareholder is Brookfield Asset
Management. In July 2009, Companhia Energetica de Minas Gerais
95% interest in the company.
* * *
As reported in the Troubled Company Reporter-Latin America on
September 1, 2009, Fitch Ratings has assigned the national long-
term debt rating of 'A+(bra)' to the proposed first simple
debentures issuance, not convertible into shares, of Brookfield
Incorporacoes S.A. (Brookfield Incorporacoes), in the total amount
of BRL100 million, with final maturity on September 1, 2013. The
proceeds will be used for company general purposes. Fitch has
already rated Brookfield Incorporacoes' foreign and local currency
Issuer Default Ratings 'BB-', and national long-term rating 'A+
(bra)'. The Rating Outlook of the corporate ratings is Negative.
COMPANHIA ENERGETICA: Moody's Affirms 'Ba2' Corp. Family Rating
---------------------------------------------------------------
Moody's upgraded Companhia Energetica de Sao Paulo's Baseline
Credit Assessment to 13 (mapping to Ba3) from 14 (mapping to B1)
and affirmed its Ba2 corporate family rating. The outlook is
stable. The BCA upgrade reflects the steady improvement in CESP's
credit measures over the last year and a half.
This rating action affected these debt instruments:
-- US$1.4 billion Unsubordinated Unsecured Medium-Term Notes
Program
-- US$184 million 10.25% Senior Unsecured Notes due 2011 issued
under the MTN program
-- US$220 million 9.25% Senior Unsecured Notes due 2013 issued
under the MTN program
-- BRL750 million 9.75% IPCA Linked Notes due 2015 issued under
the MTN program
CESP is a government-related issuer, or GRI, as defined in Moody's
rating methodology "The Application of Joint Default Analysis to
Government Related Issuers." Moody's methodology for GRIs is to
systematically incorporate into the rating both the stand-alone
credit risk profile or Baseline Credit Assessment of the company
as well as an assessment of the likelihood that its government
owner would provide extraordinary support to the company's
obligations. The BCA of a GRI is expressed on a 1-21 scale or as
a range within the 1-21 scale, according to the issuer's
preference, where one represents the equivalent risk of an Aaa,
two a Aa1, three a Aa2 and so forth. Refer to Moody's special
comments "Rating Government-Related Issuers in Americas Corporate
Finance" and "Government-Related Issuers: July 2006 Update" at
moodys.com for additional information on GRIs.
In accordance with Moody's GRI rating methodology, CESP's Ba2
corporate family rating reflects the combination of these inputs:
-- Baseline credit assessment of 13 (mapping to a Ba3)
-- Mid-level dependence
-- Mid-level government support
-- The Ba2 rating of the State of Sao Paulo, which has a stable
outlook.
The BCA upgrade to 13 from 14 reflects CESP's steady and
continuous enhancement of credit metrics over the past eighteen
months. In the last twelve months ended June 30, 2009, CFO (cash
from operations before changes in working capital) over total
adjusted debt grew to 17.6% from 4% in 2007 while the interest
coverage ratio increased to 2.7x from 1.3x.
Medium-term electricity contracts in the regulated and unregulated
markets have supported the steady and enhanced cash flow, which
has also been boosted by low capital expenditures, limited payment
of dividends and lower interest rates. These factors have allowed
CESP to maintain a healthy pace of debt reduction over the past
three years.
CESP has relatively sizeable debt maturities scheduled within the
next twelve months of approximately BRL1.2 billion. Moody's
projections indicate that free cash flow, which is estimated to
average 12% of total debt, will meet the bulk of the debt
obligations maturing with some manageable refinancing needs of BRL
300 million in the short term. Moody's understands that CESP
intends to pay down debt over the next twelve months, likely
resulting in a debt reduction of around BRL600 million provided
the payments for contingent liabilities remain close to the
conservative assumptions used in Moody's projections of
BRL200 million per year and there is no further significant
devaluation of the local currency or an unexpected spike in local
interest rates.
A constraining for CESP's ratings is the risk associated with the
renewal of concessions, which expire in 2015, equivalent to 67% of
its installed capacity. Moody's believes that the most likely
outcome is that the federal government will decide to renew CESP's
concessions with some new conditions, such as a lower tariff
ceiling, a concession fee, an obligation to sell more energy in
the regulated market or a combination of these alternatives. Any
final decision with regard to the renewal of CESP's concessions
must also require a change in the current legislation.
The last rating action for CESP was on September 16, 2008, when
the corporate family rating was upgraded to Ba2 from Ba3.
CESP is the fourth largest electricity generation company in
Brazil, operating six hydro power plants in the state of Sao Paulo
with an installed capacity of 7,456 MW and 3,916 MW of assured
energy. The government of the state of Sao Paulo is CESP's major
shareholder with 94.08% of its voting capital and 35.98% of its
total capital. In the last twelve months ended on June 30, 2009,
CESP posted Net Revenues of BRL2,616 million and a Net Loss of
BRL1,652 million.
GOL LINHAS: ANAC' Approves Flights to Venezuela and Aruba
---------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. has received permission from
the Brazilian National Civil Aviation Agency and other relevant
authorities to operate scheduled flights between Brazil, Venezuela
and the island of Aruba, in the Caribbean. The company began
selling tickets for the new route, its tenth international
destination; flights will begin October 4.
Initially, flights will be operated weekly, departing from
Guarulhos International Airport, in Sao Paulo, at 11:00 AM, and
arriving in Caracas, Venezuela, at 3:30 PM. From Venezuela, the
aircraft will resume flight to Aruba at 4:10 PM, landing at
5:55 PM. Returning to Brazil, the aircraft will leave Aruba at
9:20 PM, arriving in Caracas at 10:05 PM, and departing for Sao
Paulo at 10:45 PM.
Using Boeing 737-800 Next Generation aircraft, the new route will
be operated by the VARIG brand and will offer Comfort Class
premium service, which provides more leg room, additional meal
choices and on-demand entertainment during the flight, as well as
increased privacy, 150% SMILES Miles bonus, access to exclusive
check-in desks and priority boarding and debarkment.
In addition to meeting the demand between Brazil and Aruba, the
company will also sell tickets from Caracas to the new
destination.
About GOL Linhas
Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. -- http://www.voegol.com.br/--
through its subsidiary, GOL Transportes Aereos S.A., provides
airline services in Brazil, Argentina, Bolivia, Uruguay, and
Paraguay. The company's services include passenger, cargo, and
charter services. As of March 20, 2006, Gol Linhas provided 440
daily flights to 49 destinations and operated a fleet of 45 Boeing
737 aircraft. The company was founded in 2001.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 31, 2009, Fitch Ratings affirmed Gol Linhas Aereas
Inteligentes S.A.'s ratings:
-- Foreign and Local Currency long-term Issuer Default Ratings
at 'B+';
-- Long-term National Rating at 'BBB(bra)';
-- US$200 million perpetual notes at 'B/RR5';
-- US$200 million senior notes due 2017 at 'B/RR5'.
==========================
C A Y M A N I S L A N D S
==========================
ASTERION FUND: Members to Receive Wind-Up Report on October 2
-------------------------------------------------------------
The members of Asterion Fund I, Ltd. will hold their final meeting
on October 2, 2009, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Noel Webb
P.O. Box 2681, Grand Cayman KY1-1111
Telephone: (345) 945 3901
Facsimile: (345) 945 3902
BGI ALPHA: Shareholders' Final Meeting Set for October 2
--------------------------------------------------------
The shareholders of BGI Alpha Leveraged Loan Fund will hold their
final meeting on October 2, 2009, at 9:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
CDO AMP 30MM2-4: Shareholders' Final Meeting Set for October 2
--------------------------------------------------------------
The shareholders of CDO AMP 30MM2-4 2007-1, Ltd. will hold their
final meeting on October 2, 2009, at 10:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
CRUSADER INTERNATIONAL: Members to Hear Wind-Up Report on Oct. 1
----------------------------------------------------------------
The members of Crusader International Investment First Income Fund
Ltd. will hold their final meeting on October 1, 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:
Stuart Jessop
Crusader International Management (Cayman) Ltd.
5th Floor, Windward 3
Regatta Office Park
CULROSS FINANCE: Shareholder to Receive Wind-Up Report on Oct. 2
----------------------------------------------------------------
The sole shareholder of Culross Finance Limited will receive on
October 2, 2009, at 11:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
JS Spratt
Beth Grayland
KPMG LLP
8 Salisbury Square
London, EC4Y 8BB
Telephone: +44 (0) 20 7694 3731
Facsimile: +44 (0) 20 7694 3533
DOLOMITE GLOBAL: Shareholders' Final Meeting Set for October 1
--------------------------------------------------------------
The shareholders of Dolomite Global Emerging Markets Fund Non-U.S.
Dollar, Ltd. will hold their final meeting on October 1, 2009, to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Raj M. Keswani
122 East 42nd Street
Suite 735, New York, NY 10168, U.S.A.
EVERBRIGHT INVESTMENT: Shareholders' Final Meeting Set for Oct. 2
-----------------------------------------------------------------
The shareholders of Everbright Investment Fund SPC will hold their
final meeting on October 2, 2009, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Richard Finlay
c/o Krysten Lumsden
P.O. Box 2681, Grand Cayman KY1-1111
Cayman Islands
Telephone: (345) 814 7366
Facsimile: (345) 945 3902
FRM MULTI-STRATEGY: Shareholders' Final Meeting Set for October 2
-----------------------------------------------------------------
The shareholders of FRM Multi-Strategy Opportunity Fund SPC will
hold their final meeting on October 2, 2009, at 10:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
FRM MULTI-STRATEGY: Shareholders' Final Meeting Set for October 2
-----------------------------------------------------------------
The shareholders of FRM Multi-Strategy Opportunity Master Fund SPC
will hold their final meeting on October 2, 2009, at 10:45 a.m.,
to receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
G SQUARE: Shareholders' Final Meeting Set for October 2
-------------------------------------------------------
The shareholders of G Square Finance 2006-2 Ltd will hold their
final meeting on October 2, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
GALLEON HEALTH: Shareholders' Final Meeting Set for October 2
-------------------------------------------------------------
The shareholders of Galleon Health Sciences Offshore, Ltd. will
hold their final meeting on October 2, 2009, at 11:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
GOLDMAN SACHS: Shareholders' Final Meeting Set for October 2
------------------------------------------------------------
The shareholders of Goldman Sachs Futures Fund, Ltd. will hold
their final meeting on October 2, 2009, at 11:15 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
HEDGE SELECT 4: Shareholders' Final Meeting Set for October 2
-------------------------------------------------------------
The shareholders of Hedge Select 4 Fund will hold their final
meeting on October 2, 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:
Wilton Mcdonald
Telephone: (345) 914 4620
Facsimile: (345) 815 0570
J.P. MORGAN PARTNERS: Shareholders' Final Meeting Set for Oct. 2
----------------------------------------------------------------
The shareholders of J.P. Morgan Partners (BHCA) Safetykleen, Inc.
will hold their final meeting on October 2, 2009, at 8:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
MOTO VELO: Shareholder to Receive Wind-Up Report on October 2
-------------------------------------------------------------
The sole shareholder of Moto Velo Limited will receive on
October 2, 2009, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
Telephone: 949 8666
Facsimile: 949 0626
P.O. Box 694, Grand Cayman KY1-1107
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
PARAMOUNT INVESTMENT: Shareholders' Final Meeting Set for Oct. 2
----------------------------------------------------------------
The shareholders of Paramount Investment Corporation will hold
their final meeting on October 2, 2009, at 8:45 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
PEQUOT UTILITY: Shareholders' Final Meeting Set for October 2
-------------------------------------------------------------
The shareholders of Pequot Utility Offshore Fund, Ltd. will hold
their final meeting on October 2, 2009, at 12:00 noon, to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
PIVOT STRATEGIC: Shareholders' Final Meeting Set for October 2
--------------------------------------------------------------
The shareholders of Pivot Strategic Fund will hold their final
meeting on October 2, 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:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
RAMIUS FUND: Shareholders' Final Meeting Set for October 2
----------------------------------------------------------
The shareholders of Ramius Fund V, Ltd. will hold their final
meeting on October 2, 2009, at 9:45 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
RIAN INVESTMENTS: Members to Receive Wind-Up Report on October 2
----------------------------------------------------------------
The members of Rian Investments Limited will hold their final
meeting on October 2, 2009, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Eagle Holdings Ltd.
c/o Barclays Private Bank & Trust (Cayman) Limited
FirstCaribbean House, 4th Floor
P.O. Box 487, Grand Cayman KY1-1106
Cayman Islands
SCP KOALA: Shareholders' Final Meeting Set for October 2
--------------------------------------------------------
The shareholders of SCP Koala Holdings will hold their final
meeting on October 2, 2009, at 11:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
SOUTHWICK LIMITED: Shareholder to Receive Wind-Up Report on Oct. 2
------------------------------------------------------------------
The sole shareholder of Southwick Limited will receive on
October 2, 2009, at 10:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
JS Spratt
Beth Grayland
KPMG LLP
8 Salisbury Square
London, EC4Y 8BB
Telephone: +44 (0) 20 7694 3731
Facsimile: +44 (0) 20 7694 3533
TRIAN SPV: Shareholders' Final Meeting Set for October 2
--------------------------------------------------------
The shareholders of Trian SPV I, Ltd. will hold their final
meeting on October 2, 2009, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers Fund Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
VR MACRO: Shareholders' Final Meeting Set for October 2
-------------------------------------------------------
The shareholders of VR Macro Strategies Ltd. will hold their final
meeting on October 2, 2009, at 11:45 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
WESTERN ASSET: Shareholders' Final Meeting Set for October 1
------------------------------------------------------------
The shareholders of Western Asset Opportunistic Emerging Markets
Portfolio, Ltd. will hold their final meeting on October 1, 2009,
to receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
James W. Hirschmann
385 East Colorado Blvd,
Pasadena, CA 91101, U.S.A.
===============
C O L O M B I A
===============
EMPRESAS PUBLICAS: Fitch Upgrades Issuer Default Rating From 'BB+'
------------------------------------------------------------------
Fitch Ratings has upgraded Empresas Publicas de Medellin E.S.P.'s
foreign currency Issuer Default Rating and the US$500 million bond
issuance rating to 'BBB-' from 'BB+'. Concurrently, Fitch has
affirmed EPM's local currency IDR at 'BBB-'. The Rating Outlook
is Stable.
The rating upgrades are due to the increased geographic
diversification of the company, a result of the acquisition of
four distribution companies during the past two years. They also
take into consideration the strong performance of the company and
its continued operations with limited government intervention, a
result of a governance policy implement by the previous
administration and maintained by the new administration.
Low Business Risk:
EPM's ratings reflect the company's low business risk profile that
stems from its natural monopoly position as the main supplier of
power, water and natural gas services to the Medellin's
metropolitan area. The company's ratings also incorporate its
position as the largest generator of electricity within Colombia,
with nearly 25% of the country's generation capacity, and the
second largest telecommunications operator in Colombia. As of
June 30, 2009, the company's electricity distribution assets reach
a network of 3.1 million customers in six states. This
diversification provides EPM with a stable and predictable cash
flow stream, primarily derived from regulated utilities,
offsetting to a degree the company's hydrology risk.
Strong Credit Metrics:
The ratings also incorporate the company's strong financial
profile, characterized by strong cash flow generation, low
leverage and healthy interest coverage and liquidity. As of the
last twelve months ended June 30, 2009, EPM reported a
consolidated EBITDA of approximately COP2,572 billion (or
approximately US$1.3 billion) and total consolidated debt of
approximately COP3,303 billion (US$1.6 billion).This translates
into a leverage ratio of 1.3 times, which is considered strong for
the rating category. Interest coverage, as measured by EBITDA-to-
interest expense is also considered healthy for the rating
category at approximately 10.0x as of the LTM ended June 30, 2009.
The company's adequate liquidity position is characterized by a
manageable maturity schedule and satisfactory cash on hand of
approximately COP1,545 billion (US$770 million) as of June 2009.
On a pro forma basis, after this year's approximately US$1 billion
of debt issuance, the company's leverage remains low at
approximately 1.9x.
EPM is currently exposed to foreign exchange risk, as almost all
of its revenues are denominated in Colombian pesos and
approximately 70% of its debt is denominated in currencies other
than Colombian pesos. A devaluation of the Colombian peso could
increase its debt levels. EPM has somewhat mitigated this risk by
converting a portion of its foreign debt to pesos through hedge
operations. Consequently, approximately 54% of EPM debt is
effectively denominated in pesos and the balance in other
currencies, mainly US$.
Aggressive Growth Strategy:
EPM's growth strategy is aimed at doubling consolidated revenues
over the next six years by investing in related business both
within Colombia and abroad. The company's growth strategy is
considered aggressive and large. Over the medium term, free cash
flow is expected to be negative as the company funds its 10 year
capex budget of more than US$5 billion. These investments will
lead to an expansion by EPM both inside and outside of Colombia.
Fitch expects EPM's debt to increase to approximately
US$2.0 billion over the next few years, weakening leverage ratios
to a range of 2.0x to 2.5x. The company's interest coverage
ratios should also weaken to about 6.0x.
Exposure to Regulatory Risk:
EPM's ratings also incorporate the company's exposure to
regulatory risk, which is considered low given Colombia's balanced
regulatory framework. The bulk of EPM's consolidated revenues are
generated either by regulated tariffs or medium-term contracts,
which exposes the company to unfavorable tariff regimes.
Historically, all regulatory entities in Colombia have been
independent from central government and have provided a fair and
balanced framework for both companies and consumers. Recent
regulatory changes have had a neutral to marginally positive
impact for the company's financial profile. Going forward, future
regulatory changes are expected to be aimed at adding transparency
to the market and the regulatory framework overall and to have a
neutral impact on EPM's financial profile. EPM's diversified
business profile further mitigating the company's regulatory risk
as a simultaneous tariff decrease across all businesses is
unlikely.
==================================
D O M I N I C A N R E P U B L I C
==================================
BANCO DE RESERVAS: Fitch Affirms 'B' Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has affirmed Banco de Reservas de la Republica
Dominicana, Banco de Servicios Multiples' ratings:
-- Foreign Currency Issuer Default rating at 'B';
-- Local Currency IDR at 'B';
-- Short-Term Foreign Currency IDR at 'B';
-- Short-Term Local Currency IDR at 'B';
-- Individual Rating at 'D';
-- Support Rating at '4';
-- Support Floor at 'B';
-- National Long-Term Rating at 'A+(dom)';
-- National Short-Term Rating at 'F-1(dom)'.
The Rating Outlook is Stable.
Banreservas Issuer Default Ratings reflect the support provided by
its shareholder, the Dominican government. In addition, the
bank's individual rating is supported by its ample market share,
the stability of its deposit base, and moderate albeit declining
profitability ratios. However, a tight capital base, the
significant exposure to the Dominican government on Banreservas'
balance sheet, and below-average asset quality metrics limit the
bank's Individual Rating. Changes in its IDRs will be contingent
upon changes in the sovereign's creditworthiness. Changes in its
asset quality and capitalization can affect its Individual Rating.
Given its leading position and its state-owned nature, in the
event the bank experiences difficulties, it would look for support
from the government. However, there is a limited probability of
support due to the sovereign's low credit ratings.
Similar to other public entities, Banreservas shows a significant
exposure to the sovereign in terms of loans and securities. At
year end 2008 (YE2008), the exposure reached 3.6 times (x) equity,
higher than the 3.0x posted at YE2007. Given the expected
decrease on government receipts due lower economic activity, this
exposure could increase in the short term.
Despite its stability in the past two years, overall asset quality
metrics compare unfavorably with the market average and regional
standards, even when all the public sector exposure is classified
as current. At YE2008, the ratio of past-due loans to total loans
stood at 4.4%, while the private sector impairment figure was
7.4%, above the system average. At the same date, overall
provisioning (decreasing to 5.3% of total loans) was tight. A
less benign operating environment could pressure Banreservas asset
quality.
Despite its low-cost funding base, a highly concentrated revenue
base and still-above-average operating costs have limited
Banreservas' profitability; while loan loss provisions are
increasing. During 2008, the return of average assets ratio
(ROAA) reached 2% but decreased to 1.7% in the first quarter of
2009.
Banreservas' capital ratios are decreasing and considered tight.
This is evidenced not only by its sizable holding of fixed and
foreclosed assets but also by a less astringent cash dividend
policy observed since 2008. At the end of March 2009, the equity-
to-assets ratio stood at 8%, while the free capital ratio was just
1.8%, well below international best practices.
As of March 2009, Banreservas ranked first out of 13 commercial
and multiple service banks, with 25% of total system assets. The
bank is the main government paying agent and also has an important
participation in the consumer and corporate markets.
=============
E C U A D O R
=============
* ECUADOR: External Debt Restructuring Is "Urgent Issue"
--------------------------------------------------------
Haitham Haddadin at Reuters reports that Ecuador said that that
restructuring and relief of its external debt was an urgent issue.
The report relates Foreign Minister Fander Falconi told the United
Nations General Assembly that Ecuador cannot continue to give
higher priority to paying external debt services than to financing
production and development recovery.
"For our countries the restructuring and relief of our external
debt is urgent," the report quoted Mr. Falconi as saying. "We
cannot continue to give higher priority to paying external debt
services in detriment of financing the recuperation of production
and development," Mr. Falconi added.
As reported in the Troubled Company Reporter-Latin America on
June 15, 2009, Bloomberg News said Ecuador bought back 91% of its
defaulted bonds due 2012 and 2030 and will re-open its offer to
bondholders who didn’t participate. Dow Jones Newswires related
that Ms. Viteri said 8.7% of the 2012 bonds remain in the market,
while 7.2% of the 2030 bonds are still outstanding. President
Rafael Correa, according to DJ Newswires, said that the government
had spent about US$900 million on the bond buyback and had
repurchased about US$2.9 billion worth of the debt.
* * *
As reported in the Troubled Company Reporter-Latin America on
September 28, 2009, Moody's changed the rating on Ecuador's
outstanding global bonds to Caa3 with a stable outlook from Ca
with a developing outlook, while the ratings on its defaulted
bonds were moved to C, reflecting recovery rates of around 35% for
investors. The foreign currency ceilings on bonds and deposits
are at Caa2, with a stable outlook.
=============
G R E N A D A
=============
* GRENADA: IMF Issues Statement Regarding Mission to Country
------------------------------------------------------------
Philip Young, head of an International Monetary Fund staff team
visiting Grenada, issued this statement in St. George’s on
September 25, 2009:
“An IMF staff team visited Grenada during September 21-25 to
conduct discussions on the 2009 Article IV Consultation and the
fourth review of the government’s home-grown economic program that
is supported by the IMF’s Poverty Reduction and Growth Facility.
The team held productive discussions with Finance Minister Nazim
Burke, Permanent Secretary Timothy Antoine, other senior
government officials, representatives of the Official Opposition,
and representatives of the business and financial community, and
trade unions. Staff from the Eastern Caribbean Central Bank
participated. Discussions focused on measures to cope with the
global crisis, medium-term fiscal policies and debt
sustainability, financial system vulnerabilities, and the outlook
for growth and foreign direct investment (FDI).
“Grenada, like the rest of the Eastern Caribbean Central Union and
the Caribbean, has been hit hard by the global economic downturn—a
negative shock more devastating than the recent hurricanes in
terms of employment and growth. Economic activity is slowing
faster than expected just a few months ago, reflecting the severe
drag of the global crisis on tourism receipts, FDI, and
remittances. Almost all FDI-financed tourism projects remain on
hold. Real GDP is expected to decline by over 6% in 2009. The
decline in growth is expected to be less severe in 2010, but still
negative or close to zero. Consumer prices are expected to decline
slightly during 2009, reflecting falling world food and fuel
prices. Unemployment is estimated to be as much as 30%. Some 38%
of the population is below the poverty line.
“The authorities are to be commended for their strong economic and
financial management of the Grenadian economy during these
turbulent times. Policies have put particular emphasis on
protecting employment opportunities and mitigating the impact of
the shock on the most vulnerable members of society, while still
aiming to keep the economy on a path toward debt sustainability.
“The authorities have made significant progress in implementing
their economic program. Based on the information received to
date, almost all quantitative targets for end-June 2009 appear to
have been met. As the economy has slowed, a substantial revenue
shortfall has led to underexecution of the capital spending
program. The government has sought to address the tight financing
situation through a syndicated loan from commercial banks and
requests for budgetary support from the World Bank, the Caribbean
Development Bank, and the European Union.
“Structural reforms are also proceeding, in some cases with modest
delays. Preparations to introduce a VAT by February 2010—the
centerpiece of the structural reform program—are on track. The
government expects in the near future to complete the Country
Poverty Assessment,to begin implementing a customs Fraud Control
Plan, to submit an Excise Bill to Parliament, and to adopt
transitional procedures for bonded warehouses. The government of
Grenada has enacted the law creating a new Public Procurement
Authority and appointed its head, although the PPA is not yet
fully operational.
“The Article IV Consultation discussions focused on three areas:
fiscal policies and debt sustainability, financial system
vulnerabilities, and the medium-term outlook for growth and FDI.
“Restoring fiscal and debt sustainability will hinge upon a
balanced mix of revenue and expenditure measures in the medium
term. The introduction of a VAT and a market-based property tax
would need to be complemented by wage restraint, greater
efficiency of spending on goods and services, improved targeting
of transfers, and prioritization of capital spending.
“The banking sector has remained resilient, despite the drop in
activity, but the collapse of the Trinidad and Tobago-based CL
Financial Group has increased financial uncertainty. The staff
team supports the regional approach to this problem, and in
particular the appointment of a judicial manager for the British
American Insurance Company. These developments have underscored
the need to further strengthen nonbank financial sector
supervision. The IMF team recognizes the efforts of the Grenada
Authority for the Regulation of Financial Institutions to improve
the supervision of the non-bank financial sector and supports the
authorities’ efforts to build GARFIN’s capacity.
“The outlook for the next several quarters has deteriorated given
the difficult external environment. Tourism and related FDI,
which were expected to be the principal drivers of economic
growth, are not likely to recover to pre-crisis levels in the near
term. The staff team encouraged the government to push ahead with
structural reforms to improve the business environment and to
boost the diversity of exports.
“The staff team thanks the Grenadian government officials for
their close cooperation and looks forward to a continued
constructive dialogue on the economic challenges facing Grenada.
Upon the team’s return to Washington, it will prepare the
necessary documentation for presentation to the IMF’s Executive
Board to consider Grenada’s request to complete the fourth review
and the 2009 Article IV Consultation.”
=============
J A M A I C A
=============
AIR JAMAICA: Cuts 300 Jobs to Reduce Staff Complement by 15%
------------------------------------------------------------
Air Jamaica Limited has began laying off 300 workers in a move to
reduce its staff complement by 15%, Steven Jackson at Jamaica
Observer reports, citing Kavan Gayle, president of the Bustamante
Industrial Trade Union (BITU). The report relates that the move
affected ground staff and pilots at the two international airports
in Kingston and Montego Bay, as well as airline's head office in
downtown Kingston.
According to the report, Mr. Gayle said that the affected workers
will be sent on leave without pay, and after a maximum 120 days
will be offered a redundancy payment or re-employment.
The report relates that airline's union was able to help save the
jobs of the airline's 350 flight attendants, but it was unable to
do anything for the other categories of workers. "When we saw the
new business model we took immediate steps to carve out an
understanding with management regarding the flight attendants but
we were unable to do so for any other category of worker," the
report quoted Mr. Gayle as saying.
As reported in the Troubled Company Reporter-Latin America on
Feb. 2, 2009, Jamaica Information Service News said Air Jamaica
has unveiled a three-point business plan, which include job cuts
and elimination of six routes, namely flights to Atlanta, Miami,
Los Angeles, Barbados, Grenada and the island of Grand Cayman
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica Limited --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government owned 25% of the company after it went private
in 1994. However, in late 2004, the government assumed full
ownership of the airline after an investor group turned over its
75% stake. The Jamaican government does not plan to own Air
Jamaica permanently.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, Standard & Poor's Ratings Services said that it
lowered its foreign currency corporate credit rating on Air
Jamaica Ltd. to 'CCC+' from 'B-'. The outlook is negative. The
rating action followed S&P's recent lowering of the long-term
sovereign credit rating on Jamaica (CCC+/Negative/C).
JPSCO: Needs to Increase Efficiency, Opposition Says
----------------------------------------------------
Jamaica Public Service Company Limited should implement
immediately several policy changes to increase its efficiency,
Gleaner Power 106 News reports, citing Opposition spokesman on
energy Philip Paulwell.
According to the report, Mr. Paulwell said JPSCO should also
consider getting rid of its archaic equipment. The report relates
Mr. Paulwell recommended that the JPSCO offers broadband
telecommunications services via its power lines to enhance
revenue.
Mr. Paulwell, the report notes, said that PNP is continuing
discussions with JPS to look at efforts to increase its
profitability.
As reported in the Troubled company Reporter-Latin America on
September 29, 2009, based on the determination handed down by the
Office of Utilities Regulation, JPSCO customers will pay from 1%
to 5% more for electricity come October 1.
About JPSCO
Headquartered in Kingston, Jamaica -- https://www.jpsco.com --
Jamaica Public Service Company Limited is an integrated electric
utility company and the sole distributor of electricity in
Jamaica. The company is engaged in the generation, transmission
and distribution of electricity, and also purchases power from
five Independent Power Producers. Japanese-based Marubeni
Corporation owns 80 percent of the company. The Government of
Jamaica and a small group of minority shareholders own the
remaining shares. JPS currently has roughly 582,000 customers who
are served by a workforce of over 1,600 employees. The Company
owns and operates 28 generating plants, 54 substations, and
roughly 14,000 kilometers of distribution and transmission lines.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 9, 2009, Radio Jamaica said JPSCO may shutdown its
operations if the company fails to settle a long-standing dispute
over outstanding payments to employees. The same report said
employees unions contended the payments are owed for overtime work
and redundancy adjustments from 2001 to 2007, which amounts to
about JM$600 million.
RBTT BANK: To Cut Jobs; Offers Voluntary Separation Program
-----------------------------------------------------------
RBTT Bank Jamaica Limited plans to make jobs redundant and
presented a special voluntary separation program for workers as
part of cost saving measures, RadioJamaica reports, citing
Bustamante Industrial Trade Union.
According to the report, under the program, RBTT workers can apply
to be separated from their jobs. The report relates that Kavon
Gayle, BITU President-General, said that it has been proposed that
employees be given the same benefits which obtain under a
redundancy exercise.
"We have said to the bank, that they can put forward that request
to the membership which has been put forward and we're expecting
that any individual who wish to separate themselves form the bank
voluntary, can so apply. This is a situation that is specific to
Jamaica," said the report quoted Mr. Gayle as saying.
RadioJamaica News, citing Trinidad's Express newspaper, says RBTT
Jamaica continues to face business challenges and the program has
become necessary.
The number of employees to be laid off has not yet been disclosed.
About RBTT Bank
RBTT Bank Jamaica Limited (formerly Union Bank of Jamaica Limited)
-- http://www.rbtt.com-- was acquired by RBTT Financial Holdings
Limited on March 22, 2001. Through its 20 branches, the bank
provides a complete range of products and services, and includes
different classes of saving and chequing accounts, certificates of
deposit, US dollar accounts, credit facilities, international
trade services, card services, telephone banking services, foreign
business, and general services such as night deposit, safety
deposit boxes, payroll preparation and standing orders.
=======
P E R U
=======
BANCO DE CREDITO: Buys Additional 8.5% Of Edyficar for US$8.2 Mil.
------------------------------------------------------------------
Banco de Credito del Peru will purchase another 8.5% of
microfinance company Financiera Edyficar for US$8.2 million,
Robert Kozak at Dow Jones Newswires reports.
According to the report, Banco de Credito said it plans to launch
a public offer for the remaining outstanding shares, in line with
government regulations.
As reported in the Troubled Company Reporter-Latin America on
September 24, 2009, Dow Jones Newswires said Banco de Credito del
Peru said it has bought 77.2% of the shares of microfinance
company Financiera Edyficar.
"We consider Edyficar to be a success in its market segment, and
we want to bring capital and technology so that it can continue
expanding its current capacities and to implement its strategic
plan," the report quoted Banco de Credito General Manager Walter
Bayly as saying. Dow Jones Newswires notes that Edyficar,
considered the ninth-largest microfinance company in Latin
America, said it had a loan portfolio worth about US$210 million
in July.
About Banco de Credito
Banco de Credito del Peru is Peru's largest bank, with a
dominating market share of over 30% of deposits, and boasts
total consolidated assets of US$9.6 billion and equity of US$780
million as of June 30, 2006. It is the principal operating
company within Credicorp, Peru's largest financial services
company, which controls 96.2% of Banco de Credito; Credicorp is
widely held by local and foreign institutional shareholders.
* * *
As reported in the Troubled Company Reporter-Latin America on
September 23, 2009, Fitch has affirmed the bank's Individual
rating at 'C'; and Support Floor at 'BB+'.
====================
P U E R T O R I C O
====================
AES PUERTO: Fitch Affirms Rating on $161.9 Mil. Tax-Exempt Bonds
----------------------------------------------------------------
Fitch Ratings has affirmed its 'BBB-' rating for AES Puerto Rico,
L.P.'s $161.9 million tax-exempt bonds due 2026 and $33.1 million
taxable bonds due 2022. The Rating Outlook is Stable. The bonds
were issued by the Puerto Rico Industrial, Tourist, Educational,
Medical, and Environmental Control Facilities Financing Authority.
Fitch has evaluated AES-PR's credit quality on a stand-alone
basis, independent of the credit quality of its owner, AES
Corporation (Issuer Default Rating of 'B+' with a Stable Outlook
by Fitch).
The rating reflects contracted revenues, generally stable
operating performance and financial structure and protection
consistent with an investment grade rating. The rating also
reflects availability risk, heat rate risk and ash management
costs not directly reimbursed by the power purchase agreement.
Revenue stability derives from the PPA with Puerto Rico Electric
Power Authority (IDR of 'A-' with a Stable Outlook) which extends
beyond the term of the rated debt.
The PPA is a modified tolling agreement subject to an average
availability requirement and guaranteed heat rates. Forced
outages in late 2008 and early 2009 were a consequence of boiler
tube leaks that lowered average availability below the 90%
threshold required under the PPA to receive full capacity
payments. Repairs on the affected unit and planned maintenance
later this year on the second unit are expected to resolve the
cause of these outages, and Fitch expects AES-PR to resume earning
full capacity payments by the end of this year.
AES-PR is addressing its ash management expenses by focusing
primarily on beneficial uses on the island. Direct utilization of
dry ash has been relatively low; alternatively, dry ash has been
processed into manufactured aggregate successfully marketed for
structural fill and rural road projects on the island. Off-island
demand for aggregate has been demonstrated but at a net cost to
AES-PR due to transportation expenses. Fitch expects that ash
management costs will remain at acceptable levels.
Credit metrics for AES-PR have been slightly lower than projected,
with debt service coverage levels of 1.70 times in 2007 and 2008,
and an expected DSCR of 1.64x for 2009. In the medium term, Fitch
expects DSCRs will be in a range of 1.4x to 1.6x, considering the
historical availability and heat rate ranges. The projected DSCR
ratios are aligned with the investment grade category.
The AES-PR project is a 454.3-megawatt coal-fired circulating
fluidized bed combustion power plant in Guayama, Puerto Rico. The
plant delivers electric energy and capacity to PREPA, a public
power utility, and steam to Phillips Puerto Rico Core, Inc., under
long-term contracts. AES-PR is a low cost source of power and a
good fit with PREPA's fuel diversification strategy. PREPA serves
an island system with no electric competition.
===============================
T R I N I D A D & T O B A G O
===============================
CL FINANCIAL: Consumer Guarantee Wins CLICO Bid
-----------------------------------------------
Geralyn Edward of Nation News reports that Consumer Guarantee
Insurance (CGI) Limited of Barbados has won the favor of Colonial
Life Insurance Company (CLICO) Holdings' board in Barbados and in
Trinidad and Tobago, to buy the assets of its general insurance
company. The report relates that the announcement follows after
the a special committee approved Barbados Public Workers' Co-
operative Credit Union Limited's bid to buy CLICO Mortgage and
Finance Company. CLICO is a unit CL Financial Limited.
According to the report, unnamed sources said that with government
moving swiftly to sell the assets of financially challenged CLICO
Holdings' finance companies, CGI came up against three local
companies, and a regional insurance company with international
connections.
Earlier this year, the report recalls, Prime Minister David
Thompson rejected calls to put CLICO Holdings in Barbados under
judicial management. Instead, Mr. Thompson, the report relates,
opted for a special committee to sell the assets of CLICO General
Insurance Company, CLICO Life, CLICO Mortgage and Finance Company
Limited, and the CLICO Balanced Fund.
About CL Financial
CL Financial Limited is a privately held conglomerate in Trinidad
and Tobago. Founded as an insurance company, Colonial Life
Insurance Company by Cyril Duprey, it was expanded into a
diversified company by his nephew, Lawrence Duprey. CL Financial
is now one of the largest local conglomerates in the region,
encompassing over 65 companies in 32 countries worldwide with
total assets standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, A.M. Best Co. has downgraded the financial
strength rating to C (Weak) from B (Fair) and issuer credit rating
to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad)
Limited (CLICO) (Trinidad & Tobago). The ratings remain under
review with negative implications. CLICO is an insurance member
company of CL Financial Limited (CL Financial), a diversified
holding company based in Trinidad & Tobago.
According to a TCRLA report on Feb. 20, 2009, citing Trinidad and
Tobago Express, Tobago President George Maxwell Richards signed
bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.
========================================
T U R K S & C A I C O S I S L A N D S
========================================
* TURKS & CAICOS: Deficit Drops From US$19 Million to US$5 Million
------------------------------------------------------------------
The gap between Turks and Caicos Islands expenditure and revenue
dropped from US$19 million to US$5million in the space of one
week, Turks & Caicos Sun reports, citing the Advisory Council.
According to the report, the Advisory Council said, “Officials
from the Ministry of Finance attended to update the Council on
further steps taken to reduce expenditure and raise revenue. The
Council was informed that the gap between expenditure and revenue
had narrowed to US$5 million: US$14 million less than estimated
last week. The Council congratulated the Ministry of Finance on
it efforts.”
The report relates that Advisory Council, during a meeting on
September 23, the Council was presented with final proposals to be
explored, which it is hoped will result in a balanced budget, and
was informed that the budget would now be prepared for
publication.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: To Resume Large-Scale Gasoline Exports
--------------------------------------------------------------
Petroleos de Venezuela plans to double its shipments of gasoline
to the international market once the expansion projects in its
production units at Cardon and El Palito refineries are completed,
El Universal News reports.
According to the report, since mid-2008, the fluid catalytic
cracking unit at the Paraguana Refining Center of Cardon halted
the production of gasoline to start expansion works. The report
relates that in March 2009, PDVSA stopped the FCC of El Palito
refinery to carry out similar works. Both projects have been
delayed longer than expected, the report notes.
However, EL Universal News says, with an enlarged capacity by
70,000 bpd, the company began to load crude oil and it is expected
to begin soon the production of fuel.
About PDVSA
Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's
state oil company in charge of the development of the petroleum,
petrochemical, and coal industry, as well as planning,
coordinating, supervising, and controlling the operational
activities of its divisions, both in Venezuela and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to
Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon
notes due in 2011. These notes will be registered at Euroclear
or Clearstream. Proceeds from the issuance are expected to be
used to fund capital expenditures and for other general corporate
purposes. Fitch also has these ratings on PDVSA:
-- Foreign currency Issuer Default Rating 'B+'
-- Local currency IDR 'B+'
-- US$3 billion outstanding senior notes (due 2017) 'B+/RR4'
-- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4'
-- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4'
* VENEZUELA: To Issue US$3 Billion in 2019, 2024 Bonds
------------------------------------------------------
Patricia Rondon at Reuters reports that Venezuela said it will
issue US$3 billion in dollar-denominated bonds maturing in 2019
and 2024 as the government looks to temper demand for dollars and
jump-start the economy. The report relates that the offer opens
on September 29, 2009, and will close on October 2, with results
of the sale, managed by Citibank and Deutsche Bank, expected as
early as October 6.
According to the report, the bonds are aimed at people living or
residing in Venezuela and will be sold outside of the United
States. The report, citing the central bank, said that pricing
will be determined during the auction.
Reuters notes that the 2019 bond issue is for US$1.5 billion and
will carry a 7.75% coupon, while the 2024 issue will be for the
same amount and take an 8.25% coupon.
Venezuela, the report says, is preparing a series of economic
measures to help reduce its currency exchange divide and boost the
economy after a second quarter contraction of 2.4%.
* * *
According to Moody's Investors Service, Venezuela continues to
carry a B2 foreign currency rating and a B1 local currency rating
with stable outlook.
* VENEZUELA: Inks Oil Extraction at Orinoco Region With Vietnam
---------------------------------------------------------------
The state-run oil companies of Venezuela and Vietnam expect to
begin extracting heavy crude from the South American country's
Orinoco region in 18 months, Caribbean Net News reports, citing
Petroleos de Venezuela Vice President Eulogio Del Pino.
According to the report, Petrovietnam holds a 40% stake in a joint
venture with PDVSA for crude exploration and production in the
Junin 2 block of the Orinoco oil belt. The report relates taht
the project between the two firms has a heavy crude production
potential of 200,000 barrels a day, with half expected to be
destined to a refinery Petrovietnam is building in Vietnam.
"The company is up and running and we expect to begin the process
of crude production in 18 months," the report quoted Mr. Del Pino
as saying.
* * *
According to Moody's Investors Service, Venezuela continues to
carry a B2 foreign currency rating and a B1 local currency rating
with stable outlook.
* VENEZUELA: Sets Price Range for US$3B Bond Offer at 135% to 140%
------------------------------------------------------------------
The Venezuelan government has set a price range of 135% to 140%
for a US$3 billion sovereign bond offer, Darcy Crowe at Dow Jones
Newswires reports, citing the central bank. The report relates
that the government will start taking orders on September 29, for
the bond issue and it will close October 2.
According to the report, the 2019 bond will have a coupon of
7.75%, while the 2024 bond carries an 8.25% coupon. The report
relates that the sale is the first dollar-denominated issue by the
government in more than a year.
* * *
According to Moody's Investors Service, Venezuela continues to
carry a B2 foreign currency rating and a B1 local currency rating
with stable outlook.
===============
X X X X X X X X
===============
* LATAM: World Bank Forecasts 10 Million Becoming Poor in Region
----------------------------------------------------------------
Heloiza Canassa at Bloomberg News reports that the World Bank
forecasts that about 10 million people will join the ranks of the
poor in Latin America this year as a result of the global economic
slowdown, reversing social gains since 2002.
“The pain that the global crisis has inflicted on Latin America
and the Caribbean is not trivial and will induce some reversals in
social gains,” Augusto de la Torre, the bank’s chief economist for
the region, said in an e-mailed report obtained by the news
agency. The report relates that the World Bank estimates 60
million people in the region were lifted out of poverty in the
seven years through 2008.
According to the report, the bank also said the global economic
recovery is taking place “earlier than anticipated,” led by
countries with trade and business ties with China, such as Brazil.
The report relates that growth in Brazil is followed by Argentina
and Chile.
Colombia, Ecuador, Mexico, and Uruguay “seem to have reached a
bottom,” while the economies of Peru and Venezuela show no signs
of bottoming out, the bank said, Bloomberg News says.
* S&P's 2009 Global Corporate Default Tally at 216
--------------------------------------------------
One global corporate issuer defaulted on the week of September 18
to 24, bringing the 2009 year-to-date tally to 216 issuers --
nearly 4x the 62 defaults at this time in 2008, said an article
published Sept. 25 by Standard & Poor's.
Last week's defaulter was based in Japan, bringing the default
tallies by region to 155 issuers in the U.S., 13 in Europe, 34 in
the emerging markets, and 14 in the other developed region
(Australia, Canada, Japan, and New Zealand), according to the
article, titled "Global Corporate Default Update (Sept. 18 - 24,
2009) (Premium)."
The latest default resulted from a payment suspension after the
issuer, Aiful Corp., successfully applied for alternative dispute
resolution (ADR) procedures. S&P views this as a selective
default ('SD').
"Selective defaults have accounted for 75 defaults this year, the
majority of which were distressed exchanges," said Diane Vazza,
head of Standard & Poor's Global Fixed Income Research Group.
"Missed interest payments come in second, accounting for 74
defaults in 2009." Bankruptcy filings also have surged, with 54
issuers so far this year having filed for bankruptcy protection,
which surpasses the full-year 2008 total of 49 bankruptcy-related
defaults.
"Despite unprecedented turbulence in the credit markets and
record-high default volume since 2008, the ability of corporate
credit ratings to serve as an effective measure of relative
default risk remains intact," said Ms. Vazza.
This is evidenced by several factors, such as 87% of the issuers
that have defaulted this year were rated speculative grade ('BB+'
and lower) prior to default, investment-grade-rated issuers
('BBB-' and above) have a 99% survival rate within a one-year time
horizon, and the majority of defaults this year stem from the
lowest rungs of the credit spectrum, known as weakest links.
Globally, 278 issuers are weakest links (entities rated 'B-' and
lower with a negative outlook or ratings on CreditWatch negative),
and the regional distribution of weakest links closely mirrors the
default experience so far this year.
Of the global corporate defaulters so far this year, 40% of issues
with available recovery ratings had recovery ratings of '6'
(indicating our expectation for negligible recovery of 0%-10%),
16% of issues had recovery ratings of '5' (modest recovery
prospects of 10%-30%), 12% had recovery ratings of '4' (average
recovery prospects of 30%-50%), and 11% had recovery ratings of
'3' (meaningful recovery prospects of 50%-70%). And for the
remaining two rating categories, 11% of issues had recovery
ratings of '2' (substantial recovery prospects of 70%-90%) and 10%
of issues had recovery ratings of '1' (very high recovery
prospects of 90%-100%).
***********
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 * * *