TCRLA_Public/091001.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

            Thursday, October 1, 2009, Vol. 10, No. 194

                            Headlines

A R G E N T I N A

ENCAJAS SA: Creditors' Proofs of Debt Due on December 10
FOOD & BEVERAGE: Creditors' Proofs of Debt Due on November 6
VOLGRANDE SA: Creditors' Proofs of Debt Due on December 3
* ARGENTINA: To Resume Debt Talks With Paris Club


B A R B A D O S

AIC BARBADOS LTD: Bondholders Will Get Paid in November


B E R M U D A

EFG SELECT: Creditors and Contributories to Meet on October 14
EMERALD STRATEGIC: Creditors and Contributories to Meet on Oct. 14


B R A Z I L

BANCO NACIONAL: Sees More Power Distribution Mergers
BANCO SOCIETE: Fitch Assigns Individual Rating at 'C/D'
COMPANHIA ENERGETICA: Waits for Gov't OK to Renew Concession Deal
COMPANHIA ENERGETICA: Transfer of Control of Terna SPA Okayed
COMPANHIA SIDERURGICA: Examining Steel and Logistics Assets Split


C A Y M A N  I S L A N D S

ASIAN INFRASTRUCTURE: Members to Receive Wind-Up Report on Oct. 6
BUCKEYE INDEMNITY: Placed Under Voluntary Liquidation
BLUE EAGLE: Placed Under Voluntary Liquidation
CIC ALTERNATIVE: Final Meeting Set for October 5
CONSTELLATION PARTNERS: Creditors' Proofs of Debt Due on October 7

DAUM ASIA: Creditors' Proofs of Debt Due on October 5
GEM IAM: Shareholders to Receive Wind-Up Report on October 13
ILEX EUROPEAN: Shareholders to Receive Wind-Up Report on October 2
JOY IAM: Shareholders to Receive Wind-Up Report on October 13
KAPPA IAM: Shareholders to Receive Wind-Up Report on October 13

LEO IAM: Shareholders to Receive Wind-Up Report on October 13
ORION REINSURANCE: Placed Under Voluntary Liquidation
ORTUS CAPITAL: Creditors' Proofs of Debt Due on October 5
ORTUS CAPITAL: Shareholders to Receive Wind-Up Report on October 6
RECAP LIMITED: Shareholder to Receive Wind-Up Report on October 5

RECAP LIMITED: Creditors' Proofs of Debt Due on October 4
SKY IAM: Shareholders to Receive Wind-Up Report on October 13
SPHERE RE: Placed Under Voluntary Liquidation
TYPHOON IAM: Shareholders to Receive Wind-Up Report on October 13
WFM (CAYMAN): Creditors' Proofs of Debt Due on October 9


J A M A I C A

AIR JAMAICA: National Workers Union Opposesss Layoffs in Sale PLan
AIR JAMAICA: Could Go to Local Consortium


M E X I C O

MULTICAT MEXICO: Mexico Buys Cat Bond for Storm, Earthquake Cover
* MEXICO: Buys Cat Bond for Storm, Earthquake Cover


P E R U

DOE RUN PERU: Delays La Oroya Restart by "A Few Weeks"
* PERU: Moody's Reviews 'Ba1' Foreign-Currency Gov't Bond Rating


P U E R T O  R I C O

FIRSTBANK PUERTO: Leadership Change Won't Affect S&P's 'B' Rating


T U R K S  &  C A I C O S  I S L A N D S

OLINT CORP: Former Head and Wife Jailed for Fraud


V E N E Z U E L A

CITGO PETROLEUM: Shuts Down Unicracker at Lake Charles Refinery
CITGO PETROLEUM: Moody's Cuts Corporate Family Rating to 'Ba2'
PETROLEOS DE VENEZUELA: Moody's Cuts Unit's Family Rating to 'Ba2'
PETROLEOS DE VENEZUELA: JV With Petrobras Faces Difficulties
* VENEZUELA: May Supply Kenya With Cheap Oil


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                         - - - - -


=================
A R G E N T I N A
=================


ENCAJAS SA: Creditors' Proofs of Debt Due on December 10
--------------------------------------------------------
The court-appointed trustee for Encajas S.A.'s reorganization
proceedings will be verifying creditors' proofs of claim until
December 10, 2009.

The trustee will present the validated claims in court as
individual reports on February 24, 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 14, 2010.

Creditors will vote to ratify the completed settlement plan
during the assembly on September 20, 2010.


FOOD & BEVERAGE: Creditors' Proofs of Debt Due on November 6
------------------------------------------------------------
The court-appointed trustee for Food & Beverage, Investments
S.A.'s reorganization proceedings, will be verifying creditors'
proofs of claim until November 6, 2009.

The trustee will present the validated claims in court as
individual reports on December 21, 2009.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.

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

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
March 8, 2010.

Creditors will vote to ratify the completed settlement plan
during the assembly on September 2, 2010.


VOLGRANDE SA: Creditors' Proofs of Debt Due on December 3
---------------------------------------------------------
The court-appointed trustee for Volgrande S.A.'s bankruptcy
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 February 18, 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 5, 2010.


* ARGENTINA: To Resume Debt Talks With Paris Club
-------------------------------------------------
Oliver Balch at The Financial Times reports that Argentina will
restart negotiations with its creditor nations, the so-called
Paris Club of rich nations, this week as part of a renewed drive
to settle its international debts and regain access to global
capital markets.  The report relates that the announcement came
after an intense discussion between Argentina Economy Minister
Amado Boudou and the representatives of Paris Club.

The FT recalls that Argentina's economy has in effect been blocked
from international credit markets since defaulting on US$93
billion (EUR63 billion, GBP58 billion) of its debt in December
2001.

The report notes that as well as resolving its US$6.7 billion debt
with the 19-member Paris Club, any return to global markets will
require Argentina to restructure the US$29 billion that it owes
holders of its defaulted bonds.

According to FT, Argentina has signaled it would pay its debt to
Paris Club last year, but pulled out due to the credit crunch.
Likewise, the report relates no advances have been made with
"holdouts" -- those bondholders who did not sign on to an
agreement in 2005, when former Argentine president Nestor
Kirchner, cut a deal with 75% of the holders of the defaulted
bonds.

The report notes that hurdles to renegotiation still exist.
However, Daniel Ker-ner, an analyst at research firm Eurasia Group
the report relates, said that a return to capital markets would
en-able Argentina to issue new debt, easing escalating budgetary
and monetary problems.  "This [a debt restructuring] would give
the government more flexibility and reduces the likelihood of
default, nor would the government need to run down all its central
bank reserves to meet its repayments," the report quoted Mr. Ker-
ner as saying.

A deal with foreign creditors would mean an end to most creditor-
led litigation, The FT notes.

Moreover, the report says, a resettlement would also lift
investment sanctions against governments and banks in the Paris
Club; and the country's creditworthiness would also see a
significant improvement.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
August 27, 2009, Standard & Poor's Ratings Services affirmed its
'B-' long-term and 'C' short-term sovereign credit ratings on the
Republic of Argentina.  The outlook remains stable.


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


AIC BARBADOS LTD: Bondholders Will Get Paid in November
-------------------------------------------------------
AIC Barbados Limited Chairman Michael Lee Chin said he is
confident that the company will meet the November deadline to
repay its bondholders, RadioJamaica reports.

According to the report, Mr. Chin said the company's liquidity
position has improved and the company is in a better position to
fulfill its obligations.  The November 27 deadline to make
payments is definitely on, he added.

"My reputation is what is paramount so, we'll do everything to
make sure that it happens without a further extension.  What
happened with the extensions wouldn't have happened any where else
in the world and for that, I'm happy that this situation happened
to me in Jamaica, the report quoted Mr. Chin as saying.  "Note
holders had a lot of trust in us because of the reputation that we
have in Jamaica. The note holders are well collateralized and
they're getting premium interest so, it's been a win, win
situation," said Mr. Lee Chin added.

As reported in the Troubled Company Reporter-Latin America on
June 8, 2009, RadioJamica said AIC Barbados asked its creditors
for another extension to make payments on maturing instruments as
divestment of the sale of assets in its portfolio is taking longer
than expected.  The Jamaica Gleaner related Mr. Lee-Chin is
selling his Pan Caribbean fibre optic cable business, Columbus
Communications, to pay off the debt.  According to Jamaica
Gleaner, Mr. Chin failed to come up with the US$155 million
(J$13.8 billion) that AIC Barbados owes bond holders.  The Gleaner
related that based on an internal document, about US$108 million
of the debt is owed to Jamaican investors, of which US$47 million
is due this year.  Mr. Lee Chin, The Gleaner said, was already
granted one extension to June 11 to repay the bonds, however, he
asked investors again to extend the wait to November.

                        About AIC Barbados

AIC Barbados Limited, which is valued at more than US$1 billion,
comprises several Caribbean holdings including Jamaica's largest
deposit taking institution the National Commercial Bank.


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


EFG SELECT: Creditors and Contributories to Meet on October 14
--------------------------------------------------------------
The creditors and contributories of EFG Select Funds Limited will
hold their meeting on October 14, 2009, at 11:30 a.m. and
12:00 noon, respectively, at Liberty Theatre, 49 Union Square, in
Hamilton HM 12, Bermuda.

At the meeting, the creditors and contributories will be asked to
appoint a permanent liquidator in place of the provisional
liquidator, and appoint a committee of inspection.


EMERALD STRATEGIC: Creditors and Contributories to Meet on Oct. 14
------------------------------------------------------------------
The creditors and contributories of Emerald Strategic Focus Funds
Limited will hold their meeting on October 14, 2009, at 10:00 a.m.
and 10:30 a.m., respectively, at Liberty Theatre, 49 Union Square,
in Hamilton HM 12, Bermuda.

At the meeting, the creditors and contributories will be asked to
appoint a permanent liquidator in place of the provisional
liquidator, and appoint a committee of inspection.


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


BANCO NACIONAL: Sees More Power Distribution Mergers
----------------------------------------------------
Heloiza Canassa and Diana Kinch at Bloomberg News report that
Banco Nacional de Desenvolvimento Economico e Social SA expects
power distribution companies to accelerate mergers and acquisition
talks in coming months and said it’s ready to help finance any
deals.  “Consolidation is on the agenda and it should intensify in
the next few months,” the report quoted Wagner Bittencourt, head
of energy and infrastructure at the bank, as saying.  “The bank
can make that viable since companies will need capital,” Mr.
Bittencourt added.

According to the report, local electricity distributors, such as
Cia. Energetica de Minas Gerais and CPFL Energia SA, are seeking
to buy rivals to cut costs and boost profitability.  The report
relates that CPFL may sell new shares or borrow to fund
investments as it seeks to almost triple its generating capacity,
and may also consider cutting dividends to pay for the expansion.

Bloomberg News says BNDES boosted lending to the energy industry
by 71% to BRL6.49 billion (US$3.6 billion) in the seven months
through July, compared with a year earlier.  The report notes that
the industry received 9% of BNDES’s BRL92 billion in financing
last year.

                          About BNDES

Banco Nacional de Desenvolvimento Economico e Social SA is
Brazil's national development bank.  It provides financing for
projects within Brazil and plays a major role in the
privatization programs undertaken by the federal government.

                          *     *     *

Banco Nacional continues to carry a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service.


BANCO SOCIETE: Fitch Assigns Individual Rating at 'C/D'
-------------------------------------------------------
Fitch Ratings has assigned ratings to Banco Societe Generale
Brasil S.A., Banco Cacique S.A., and Banco Pecunia S.A. and
affirmed others:

SGBr

-- Long-term Foreign Currency Issuer Default rating assigned at
    'BBB' with Stable Outlook

-- Short-term Foreign Currency IDR assigned at 'F3'

-- Long-term Local Currency IDR assigned at 'BBB+' with Stable
    Outlook

-- Short-term Local Currency IDR assigned at 'F2'

-- Individual Rating assigned at 'C/D'

-- Support Rating assigned at '2'

-- National Long-term Rating assigned at 'AAA(bra)' with Stable
    Outlook

-- National Short-term Rating assigned at 'F1+(bra)'

Cacique

-- Long-term Foreign Currency IDR assigned at 'BBB' with Stable
    Outlook

-- Short-term Foreign Currency IDR assigned at 'F3'

-- Long-term Local Currency IDR assigned at 'BBB+ with Stable
    Outlook

-- Short-term Local Currency IDR assigned at 'F2'

-- Individual Rating assigned at 'C/D'

-- Support Rating affirmed at '2'

-- National Long-term Rating affirmed at 'AAA(bra)', Stable
    Outlook

-- National Short-term Rating affirmed at 'F1+(bra)'

Pecunia

-- Long-term Foreign Currency IDR assigned at 'BBB' with Stable
    Outlook

-- Short-term Foreign Currency IDR assigned at 'F3'

-- Long-term Local Currency IDR assigned at 'BBB+' with Stable
    Outlook

-- Short-term Local Currency IDR assigned at 'F2'

-- Individual Rating assigned at 'D'

-- Support Rating affirmed at '2'

-- National Long-term Rating affirmed at 'AAA(bra)', Stable
    Outlook

-- National Short-term Rating affirmed at 'F1+(bra)'

The Foreign Currency and Local Currency IDRs of SGBr and its
National Ratings reflect the high probability of support from its
parent bank, Societe Generale (IDR 'A+'/Stable), and the
importance to SG of the Brazilian operation, which has been
growing in recent years.  SGBr's Individual Rating considers its
good asset-quality track record, attributable to prudent
management, SG supervision and diversified activities.  However,
it also takes into account the bank's modest size, the high
proportion of intangible assets in its capital structure and the
challenge of improving its profitability in an environment under
pressure from the growth in delinquency and expenses generated by
goodwill amortization.  The Individual Rating would benefit from a
consistent improvement in profitability, coupled with a capital
structure that is no longer burdened by intangible assets.
However, deterioration in asset quality, together with the impact
of growing provisioning on profitability, could negatively affect
its rating.

The Foreign Currency and Local Currency IDRs of both Cacique and
Pecunia and their National Ratings reflect the support of its
parent bank, SGBr, and the importance to SG of the Brazilian
retail operation.  The ratings also consider their ample access to
funding lines primarily from the parent, which maintains a close
supervision on both banks as shown by their centralized treasury.
The Individual Rating of Cacique reflects its modest size, high
delinquency ratios, and the challenge to reverse its weak results
in a recessionary environment, while provisioning should continue
to weaken results.  While Fitch considers that these factors also
impact Pecunia, the bank has a lower Individual Rating as it is
more exposed to financial upheavals than Cacique considering its
small size.

SGBr has entered the retail market, notably in consumer lending
and financing durable goods.  It acquired 70% of Pecunia in March
2007 and 100% of Cacique in November 2007.  As a result, SGBr
significantly increased its local balance sheet, with assets
growing to BRL6.5bn at FYE08 (BRL1.1bn at FYE06).  Although each
unit is administered independently, the three banks are
consolidated into SGBr.

SGBr began to report an increase in the impaired loan categories
after the acquisitions of Cacique and Pecunia, but it has adequate
coverage (estimated around 79% at H109 and 81% at FYE08 and 64.3%
FYE07).  Fitch believes that the growing delinquency pressure will
be an additional obstacle to the bank improving profitability,
despite its positive asset diversification.  SGBr's funding comes
mainly from SG lines at competitive prices.  This policy gave the
bank ample liquidity at the most acute times of the global
financial crisis.  The growing importance of the Brazilian
operations to SG contrasts with the drastic reduction in
activities of other foreign banks in Brazil, and has enabled SGBr
to gain market share in the wholesale and retail segments.  The
acquisitions of Cacique and Pecunia, however, have increased the
proportion of intangible assets in its capital structure.  Their
reduction will be gradual and will affect the bank's earnings in
the medium- to long-term.

SGBr has operated in Brazil since 1967, focusing on wholesale
business.  It entered retail lending through the acquisitions of
Cacique, which conducts consignment lending, consumer finance,
and, on a minor scale, personal lending, and Pecunia which
finances the purchase of used automobiles and provides consumer
credit through stores.


COMPANHIA ENERGETICA: Waits for Gov't OK to Renew Concession Deal
-----------------------------------------------------------------
Companhia Energetica de Sao Paulo is waiting on the government's
decision to renew its concession deal on at least two
hydroelectric power stations, Kenneth Rapoza at Dow Jones
Newswires reports.

According to the report, citing Estado Newswire, energy companies
whose contracts to operate hydroelectric dams end in 2015 will be
told whether their concession deal was renewed or not by early
next year.  The report relates that Energy Minister Edison Lobao
said the National Energy Policy Committee has yet to meet to
discuss the matter.

Dow Jones Newswires says that existing concessions can be renewed
at the exclusive criterion of the granting authority.

Companhia Energetica de Sao Paulo 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.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
September 30, 2009, 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.


COMPANHIA ENERGETICA: Transfer of Control of Terna SPA Okayed
-------------------------------------------------------------
Brazilian power industry watchdog Aneel authorized the transfer of
control held by Italian grip Terna SpA in Terna Participacoes SA
(TRNA4.BR) to the Brazilian electric utility Companhia Energetica
de Minas Gerais (Cemig), Rogerio Jelmayer at Dow Jones Newswires
reports.

According to the report, earlier this year, the company announced
the acquisition of a 66% stake in Brazilian power distributor
Terna Participacoes, a local subsidiary of Terna SpA, for US$1.05
billion.

Terna is one of the largest electricity transmission companies in
Brazil, with some 3,300 kilometers of high voltage lines.

Companhia Energetica de Minas Gerais a.k.a. Cemig --
http://www.cemig.com.br/-- is an electric energy utility in
Brazil.  Cemig's concession area extends throughout nearly 96.7%
of Minas Gerais.  Cemig owns and operates 52 power plants, of
which six are in partnership with private enterprises, relying
on a predominantly hydroelectric energy matrix.  Electric energy
is produced to supply more than 17 million people living in the
state's 774 municipalities.  In addition to those 52 plants,
another three are currently under construction.

Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).

                          *     *     *

Companhia Energetica de Minas Gerais aka CEMIG continues to carry
corporate family ratings of Ba2 from Moody's Investors Service on
the rating agency's global scale.


COMPANHIA SIDERURGICA: Examining Steel and Logistics Assets Split
-----------------------------------------------------------------
Companhia Siderurgica Nacional S.A. is examining the separation of
its steel and logistics assets into two subsidiaries, John
Kolodziejski at Dow Jones Newswires reports, citing a company
statement.  The report relates that CSN said it could eventually
involve a public offering of shares or "the combination of these
businesses with third parties."

According to the report, CSN told the CVM studies involving such a
plan were at a preliminary stage, and no decision had been taken
yet.

Dow Jones Newswires notes that the largest of the two railroad
companies is MRS Logistica, which carries over 120 million tons of
freight a year, mainly iron ore.  The report relates that the
other railroad, the Transnordestina, is under construction and
aims to bisect Brazil's northeastern corner and connect Recife
with Fortaleza.

                             About CSN

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells,
exports and distributes steel products, like hot-dip galvanized
sheets, tin mill products and tinplate.  The company also runs its
own iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Brazil, Portugal, and the
U.S.

                           *     *     *

As of July 1, 2009, the company continues to carry Moody's
Currency LT Debt ratings at Ba1.  The company also continues to
carry Standard and Poor's Issuer credit ratings at BB+.


==========================
C A Y M A N  I S L A N D S
==========================


ASIAN INFRASTRUCTURE: Members to Receive Wind-Up Report on Oct. 6
-----------------------------------------------------------------
The members of Asian Infrastructure Development Co., Ltd. will
receive, on October 6, 2009, at 11:00 a.m., the liquidators'
report on the company's wind-up proceedings and property disposal.

The company's liquidators are:

          Tay Swee Sze
          Wong Joo Wan
          Lim Siew Soo
          10 Anson Road #19-01
          International Plaza
          Singapore 079903
          Telephone: (65) 6534 7088
          Facsimile: (65) 6534 7022


BUCKEYE INDEMNITY: Placed Under Voluntary Liquidation
-----------------------------------------------------
On August 19, 2009, the sole shareholder of Buckeye Indemnity
Company, SPC resolved to voluntarily liquidate the company's
business.

Only creditors who were able to file their proofs of debt by
September 30, 2009, will be included in the company's dividend
distribution.

The company's liquidator is:

          Dugald Macleod
          Caledonian House
          69 Dr Roy's Drive, PO Box 1043
          George Town, Grand Cayman KY1-1102
          Telephone: 345-914-0050
          Facsimile: 345-814-4875


BLUE EAGLE: Placed Under Voluntary Liquidation
----------------------------------------------
On August 24, 2009, the sole shareholder of Blue Eagle Re resolved
to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
September 30, 2009, will be included in the company's dividend
distribution.

The company's liquidator is:

          Dugald Macleod
          Caledonian House
          69 Dr Roy's Drive, PO Box 1043
          George Town, Grand Cayman KY1-1102
          Telephone: 345-914-0050
          Facsimile: 345-814-4875


CIC ALTERNATIVE: Final Meeting Set for October 5
------------------------------------------------
The members of CIC Alternative Strategies Fund will hold their
final meeting on October 5, 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:

          Avalon Management Limited
          Landmark Square, 1st Floor
          64 Earth Close, West Bay Beach
          P.O. Box 715, Grand Cayman KY1-1107
          Cayman Islands
          Telephone: (+1) 345 769-4422
          Facsimile: (+1) 345 769-9351


CONSTELLATION PARTNERS: Creditors' Proofs of Debt Due on October 7
------------------------------------------------------------------
The creditors of Constellation Partners Fund SPC are required to
file their proofs of debt by October 7, 2009, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on August 18, 2009.

The company's liquidator is:

          Ogier
          c/o Bryant Terry
          Telephone: (345) 949-9876
          Facsimile: (345) 949-1986
          Ogier
          Queensgate House, South Church Street
          PO Box 1234, Grand Cayman KY1-1108
          Cayman Islands


DAUM ASIA: Creditors' Proofs of Debt Due on October 5
-----------------------------------------------------
The creditors of Daum Asia Holding Corporation are required to
file their proofs of debt by October 5, 2009, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on August 28, 2009.

The company's liquidator is:

          Kris Beighton
          PO Box 493, Grand Cayman KY1-1106
          Cayman Islands
          Alex Watkins
          Telephone: 345-914-4421
          Facsimile: 345-949-7164
          P.O. Box 493, Grand Cayman KY1-1106
          Cayman Islands
          Telephone: 345-949-4800
          Facsimile: 345-949-7164


GEM IAM: Shareholders to Receive Wind-Up Report on October 13
-------------------------------------------------------------
The shareholders of Gem IAM Limited will receive on October 13,
2009, at 1:30 p.m., the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

          Bonnie Willkom
          P.O. Box 1111, Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345)-949-5122
          Facsimile: (345)-949-7920


ILEX EUROPEAN: Shareholders to Receive Wind-Up Report on October 2
------------------------------------------------------------------
The shareholders of Ilex European Leveraged Loan Fund 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:

          Avalon Ltd.
          Landmark Square, 1st Floor
          64 Earth Close, West Bay Beach
          P.O. Box 715, Grand Cayman KY1-1107
          Cayman Islands
          Facsimile: 1 345 769-9351


JOY IAM: Shareholders to Receive Wind-Up Report on October 13
-------------------------------------------------------------
The shareholders of Joy IAM Limited will receive on October 13,
2009, at 1:45 p.m., the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

          Bonnie Willkom
          P.O. Box 1111, Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345)-949-5122
          Facsimile: (345)-949-7920


KAPPA IAM: Shareholders to Receive Wind-Up Report on October 13
---------------------------------------------------------------
The shareholders of Kappa IAM Limited will receive on October 13,
2009, at 1:00 p.m., the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

          Bonnie Willkom
          P.O. Box 1111, Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345)-949-5122
          Facsimile: (345)-949-7920


LEO IAM: Shareholders to Receive Wind-Up Report on October 13
-------------------------------------------------------------
The shareholders of Leo IAM Limited will receive on Oct. 13, 2009,
at 3:30 p.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Bonnie Willkom
          P.O. Box 1111, Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345)-949-5122
          Facsimile: (345)-949-7920


ORION REINSURANCE: Placed Under Voluntary Liquidation
-----------------------------------------------------
On August 20, 2009, the shareholders of Orion Reinsurance, SPC
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
September 30, 2009, will be included in the company's dividend
distribution.

The company's liquidator is:

          Dugald Macleod
          Caledonian House
          69 Dr Roy's Drive, PO Box 1043
          George Town, Grand Cayman KY1-1102
          Telephone: 345-914-0050
          Facsimile: 345-814-4875


ORTUS CAPITAL: Creditors' Proofs of Debt Due on October 5
---------------------------------------------------------
The creditors of Ortus Capital Management (Cayman) Limited are
required to file their proofs of debt by October 5, 2009, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on September 4, 2009.

The company's liquidator is:

          Ogier
          Joel Reid
          Telephone: (345) 815-1828
          Facsimile: (345) 949-1986
          c/o Ogier
          Queensgate House, South Church Street
          PO Box 1234, Grand Cayman KY1-1108
          Cayman Islands


ORTUS CAPITAL: Shareholders to Receive Wind-Up Report on October 6
------------------------------------------------------------------
The shareholders of Ortus Capital Management (Cayman) Limited will
receive, on October 6, 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:

          Ogier
          c/o Joel Reid
          Telephone: (345) 815-1828
          Facsimile: (345) 949-1986


RECAP LIMITED: Shareholder to Receive Wind-Up Report on October 5
-----------------------------------------------------------------
The shareholder of Recap Limited will receive, on October 5, 2009,
at 10:45 a.m., the liquidators' report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Scott Aitken
          Connan Hill
         Bronwynne R. Arch
         Telephone: 949-7755
         Facsimile: 949-7634
         P.O. Box 1109, Grand Cayman KY1-1102
         Cayman Islands


RECAP LIMITED: Creditors' Proofs of Debt Due on October 4
---------------------------------------------------------
The creditors of Recap Limited are required to file their proofs
of debt by October 4, 2009, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on August 26, 2009.

The company's liquidators are:

          Scott Aitken
          Connan Hill
          c/o Bronwynne R. Arch
          P.O. Box 1109, Grand Cayman KY-1102
          Cayman Islands
          Telephone: 949-7755
          Facsimile: 949-7634


SKY IAM: Shareholders to Receive Wind-Up Report on October 13
-------------------------------------------------------------
The shareholders of Sky IAM Limited will receive on October 13,
2009, at 2:00 p.m., the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

          Bonnie Willkom
          P.O. Box 1111, Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345)-949-5122
          Facsimile: (345)-949-7920


SPHERE RE: Placed Under Voluntary Liquidation
---------------------------------------------
On August 24, 2009, the sole shareholder of Sphere Re SPC resolved
to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
September 30, 2009, will be included in the company's dividend
distribution.

The company's liquidator is:

          Dugald Macleod
          Caledonian House
          69 Dr Roy's Drive, PO Box 1043
          George Town, Grand Cayman KY1-1102
          Telephone: 345-914-0050
          Facsimile: 345-814-4875


TYPHOON IAM: Shareholders to Receive Wind-Up Report on October 13
-----------------------------------------------------------------
The shareholders of Typhoon IAM Limited will receive on Oct. 13,
2009, at 2:30 p.m., the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

          Bonnie Willkom
          P.O. Box 1111, Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345)-949-5122
          Facsimile: (345)-949-7920


WFM (CAYMAN): Creditors' Proofs of Debt Due on October 9
--------------------------------------------------------
The creditors of WFM (Cayman) Limited are required to file their
proofs of debt by October 9, 2009, to be included in the company's
dividend distribution.

The company's liquidator is:

          Chris Johnson
          c/o Ashley L. Turner
          Telephone: +345 946-0820
          Facsimile: +345 946-0864
          P.O. Box 24499, Elizabethan Square
          George Town, Grand Cayman KY1-1104
          Cayman Islands


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


AIR JAMAICA: National Workers Union Opposesss Layoffs in Sale PLan
------------------------------------------------------------------
The National Workers Union is raising several concerns relating to
the divestment of Air Jamaica Limited, Gleaner/Power 106 News
reports.

According to the report, the union's primary concerns are the
impending layoff of more than 300 workers; and the updates and the
deadline of airline's sale.  The report relates NWU Vice President
Granville Valentine said that he is still unaware of the deadline
for the sale of Air Jamaica even after meeting with the company’s
management.

As reported in the Troubled Company Reporter-Latin America on
September 22, 2009, RadioJamaica said that Air Jamaica will start
to lay off several categories of workers by September 30, which
will affect various groups of employees the airline, but the exact
number of persons to be affected has not been finalized.  The
report relates that the lay-offs will be carried out as part of
cost cutting measures as efforts continue to find a buyer for Air
Jamaica.

TCR-LA report on June 10, citing Jamaica Observer, related that
Trinidad and Tobago-owned Caribbean Airlines and Thomas Cook have
both expressed an interest in acquiring Air Jamaica.  Radio
Jamaica said the airline has been hemorrhaging over US$150 million
per annum and the government has had to foot the massive bill.
Moreover, Radio Jamaica said, Air Jamaica currently has over
US$600 million in loans outstanding.

                           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).


AIR JAMAICA: Could Go to Local Consortium
-----------------------------------------
Air Jamaica Limited could end up in the hands of a consortium
comprising a major player in the tourism and entertainment sectors
and a group of investors has expressed an interest in the defunct
airline, RadioJamaica reports.

According to the report, no updates were given regarding the
possible sale of the airline to regional carrier Caribbean
Airlines and United Stares based Spirit Airlines.

The report notes that in the meantime, unions representing Air
Jamaica workers say staff cuts at the airline have been
progressing smoothly.  The report relates Kavan Gayle President-
General of the Bustmanate Industrial Union said that the process
should be completed soon.

As reported in the Troubled Company Reporter-Latin America on
September 30, 2009, Jamaica Observer said that Air Jamaica has
began laying off 300 workers in a move to reduce its staff
complement by 15%.  The report related 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.

A TCRLA report on June 29, 2009, citing RadioJamaica News, related
that the Jamaican government indicated it will name a buyer for
cash-strapped Air Jamaica.  Radio Jamaica said the airline has
been hemorrhaging over US$150 million per annum and the government
has had to foot the massive bill.  In addition, Radio Jamaica
said, Air Jamaica currently has over US$600 million in loans
outstanding.

                       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).


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


MULTICAT MEXICO: Mexico Buys Cat Bond for Storm, Earthquake Cover
----------------------------------------------------------------
Mexico plans to buy a US$250 million catastrophe bond backed by
Swiss Reinsurance Co. to cover its natural catastrophe fund,
Colleen McCarthy at Business Insurance reports, citing Standard &
Poor’s Corp.

According to the report, the bond, issued by Cayman Islands-based
special-purpose vehicle MultiCat Mexico 2009 Ltd. was sponsored by
the Fund for Natural Disasters.  The report relates that under the
terms of the deal, FONDEN will enter into an insurance contract
with Mexican-owned state insurer Agroasamex S.A. and Swiss Re will
reinsure Agroasamex.

Using a parametric trigger structure, the report says, MultiCat
Mexico 2009 will provide cover to Swiss Re against losses from
certain size earthquakes as well as Pacific and Atlantic
hurricanes through October 2012.

The report says that the issue has been divided into four tranches
and the transaction is scheduled to close in October.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
September 29, 2009, Standard & Poor's Ratings Services has
assigned its preliminary credit ratings to the class A, B, C, and
D series 2009-1 notes to be issued under the principal-at-risk
variable-rate note program, MultiCat Mexico 2009 Ltd.


* MEXICO: Buys Cat Bond for Storm, Earthquake Cover
---------------------------------------------------
Mexico plans to buy a US$250 million catastrophe bond backed by
Swiss Reinsurance Co. to cover its natural catastrophe fund,
Colleen McCarthy at Business Insurance reports, citing Standard &
Poor’s Corp.

According to the report, the bond, issued by Cayman Islands-based
special-purpose vehicle MultiCat Mexico 2009 Ltd. was sponsored by
the Fund for Natural Disasters.  The report relates that under the
terms of the deal, FONDEN will enter into an insurance contract
with Mexican-owned state insurer Agroasamex S.A. and Swiss Re will
reinsure Agroasamex.

Using a parametric trigger structure, the report says, MultiCat
Mexico 2009 will provide cover to Swiss Re against losses from
certain size earthquakes as well as Pacific and Atlantic
hurricanes through October 2012.

The report says that the issue has been divided into four tranches
and the transaction is scheduled to close in October.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
September 29, 2009, Standard & Poor's Ratings Services has
assigned its preliminary credit ratings to the class A, B, C, and
D series 2009-1 notes to be issued under the principal-at-risk
variable-rate note program, MultiCat Mexico 2009 Ltd.


=======
P E R U
=======


DOE RUN PERU: Delays La Oroya Restart by "A Few Weeks"
------------------------------------------------------
AMM News reports that a company spokesman of Doe Run Peru SRL said
it has delayed the restart of operations at its La Oroya smelter
by "a few weeks."  The report relates that the announcement came
days after Luis Castillo, general secretary of the Peruvian mining
workers federation, said the company might resume production this
week after it was given an extension to its environmental program
at La Oroya.

"It won't be possible this week.  We estimate that it will take a
few weeks because we first need to close contracts with ore
suppliers," the report quoted the spokesman as saying.  "The
company will communicate with its workers in advance, to give them
notice to return," the spokesman added.

According to AMM, Peru's congress voted to give Doe Run
Peru smelter a 30-month extension on its environmental cleanup
deadline.  The current deadline had been set to expire in October.

As reported in the Troubled Company Reporter-Latin America on
September 1, 2009, Reuters estimated that more than 3,000 direct
jobs and 16,000 indirect jobs are at stake at the smelter and in
the town of La Oroya.  According to a TCRLA report on August 6,
2009, citing Reuters, Doe Run Peru filed for a government-
monitored financial restructuring because it was worried creditors
might try to freeze its assets or operations.  A TCRLA report on
August 5, 2009, citing Reuters, related that Doe Run Peru owes
some US$100 million to its suppliers and needs to spend another
US$150 million to clean up La Oroya.  Bloomberg News recalled the
company shut all its smelter operations after failing to reach an
agreement with banks and mining suppliers.  Bloomberg News related
that Doe Run Peru's zinc and lead smelter received a three-month
extension to complete planned environmental cleanup projects.

                           About Doe Run

Doe Run Peru operates an integrated primary lead operation and a
recycling operation located in Missouri, referred to as Buick
Resource Recycling.  Fabricated Products operates a lead
fabrication operation located in Arizona and a lead oxide
business located in Washington.

                           *     *     *

As of May 21, 2009, the company continues to carry Moody's bank
financial strength at D- and Fitch Ratings individual rating at D.


* PERU: Moody's Reviews 'Ba1' Foreign-Currency Gov't Bond Rating
----------------------------------------------------------------
Moody's Investors Service has placed Peru's Ba1 foreign-currency
government bond rating on review for possible upgrade, reflecting
the country's track record of stable economic policymaking and
reduced risks from the economy's relatively high degree of
dollarization.

"The review reflects signs of increased shock-absorption capacity
in the face of adverse external conditions," said Mauro Leos,
Moody's regional credit officer for Latin America.  "The
government's enhanced policy flexibility is also evidenced by its
successfully steering of the economy towards a 'soft-landing'
after a period of above-trend growth."

Moody's said its ratings review will examine the implementation of
the government's new multi-annual policy framework, which appears
generally consistent with an improving sovereign credit profile.
Particular emphasis will be placed on the prospects for further
reductions in the government's foreign currency exposure, which
together with progressive de-dollarization of the banking system
has lowered susceptibility to financial event risk.

"Another focus of the review will be to evaluate how quickly the
economy can return to faster growth," said Leos.  "A recovery of
economic momentum would facilitate a swift correction in the
fiscal position consistent with the guidelines defined by the
country's fiscal responsibility law."

The analyst said that Moody's concerns related to the possibility
of electing less predictable political leaders, such as arose
during the last presidential election, had abated.  Still, an
exploration of such risks would be another element of the review.

"Ultimately, the review is meant to determine if the country's
relative performance during the global economic and financial
crisis, following several years of incremental progress, qualifies
Peru as an 'ordinal winner,' thereby warranting repositioning its
foreign currency sovereign ratings into investment grade
territory," said Leos.

Peru's Baa3/P-3 country ceilings for long- and short-term foreign
currency debt and its Ba2 country ceiling for foreign currency
deposits were also placed on review for possible upgrade.  No
change is proposed for the Baa3 rating on the government's local
currency bonds nor the A3 country ceiling for local currency bonds
and Baa1 country ceiling for local currency deposits.

The last change in the government of Peru's ratings was
implemented on August 19, 2008, when Moody's upgraded the
government's foreign-currency bond ratings to Ba1 from Ba2.  On
the same day, Peru's country ceilings for foreign-currency bonds
and deposits were also upgraded to Baa3 and Ba2 from Ba1 and Ba3,
respectively.


====================
P U E R T O  R I C O
====================


FIRSTBANK PUERTO: Leadership Change Won't Affect S&P's 'B' Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said its ratings on FirstBank
Puerto Rico (B/Negative/--) are unaffected after the bank's recent
announcement of a change in leadership.  According to senior
management, this development will have no impact on the
corporation's financial profile and results.

FirstBank recently announced the appointment of Aurelio Aleman,
currently Senior Executive Vice-President and Chief Operating
Officer, as President and Chief Executive Officer of the
corporation.  Mr. Aleman succeeds Luis Beauchamp, who led the
corporation from 2005 until now.


========================================
T U R K S  &  C A I C O S  I S L A N D S
========================================


OLINT CORP: Former Head and Wife Jailed for Fraud
-------------------------------------------------
David Smith, former boss of Turks and Caicos Islands-based
Overseas Locket International Corporation (OLINT) Corp. Limited is
now in jail in the Turks and Caicos Islands, after being arrested
on September 28 in the neighboring Caribbean territory,
RadioJamaica reports.

According to the report, Mr. Smith was arrested together with his
pregnant wife, who has been granted bail.  The report relates that
the pair is facing some 30 charges.

As reported in the Troubled Company Reporter-Latin America on
June 16, 2009, Caribbean Net News said Florida resident
Christopher Walker sued the several parties for their involvement
in (OLINT)'s operations.  The report related Mr. Walker, who is
claiming that he was defrauded in the company's “get-rich-quick
scheme”, is seeking US$2.4 million in damages.  According to the
report, Mr. Walker's complaint involved these defendants:

  -- Hallmark Bank & Trust Ltd;
  -- Hallmark CEO and Chairman Attorney Brian Trowbridge;
  -- Overseas Locket International Corporation;
  -- OLINT Principal David Smith;
  -- Wayne Smith, David Smith's brother and an
     employee of OLINT;
  -- Turks and Caicos Islands Premier Michael Misick
  -- The Turks and Caicos Islands Investment
     Agency, which "encourages foreign investment in
     the Turks & Caicos Islands"; and
  -- MasterCard Worldwide and MasterCard International
     LLC, which provide card services to Hallmark Bank.

                      About Olint Corp

Olint Corp. Limited is an investment scheme based in Jamaica.
It has operations in Turks and Caicos and the U.S.  It has been
facing legal problems since 2006 when the Financial Services
Commission served a cease-and-desist order on the firm.  On
Dec. 24, 2007, the court ruled that the operations of Olint
breached provisions of the Securities Act.  The firm had been
dealing in securities and engaging in the participation of a
profit-sharing agreement, issuing investment contracts, and
providing advice to potential investors without licenses and
registration.  Olint appealed the ruling and was granted a stay
of execution of the cease-and-desist order until the appeal was
heard in February 2008.


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


CITGO PETROLEUM: Shuts Down Unicracker at Lake Charles Refinery
---------------------------------------------------------------
Citgo Petroleum Corp shut a unicracker at its 429,500 barrel per
day (bpd) refinery in Lake Charles, Louisiana, for emergency
maintenance, Erwin Seba at Reuters reports, citing unnamed
sources.

According to the report, the sources said that it was unclear how
long the unit would be shut.

Reuters notes that the unicracker is a hydrocracking unit that
uses hydrogen under high pressure to yield more motor fuel from a
barrel of oil.

Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela S.A., the
state-owned oil company of Venezuela.

                           *     *     *

As reported in the Troubled Company Reporter on June 5, 2009,
Fitch Ratings affirmed the current ratings of CITGO Petroleum
Corporation but revised the company's Outlook to Negative from
Stable.

Fitch affirmed these ratings for CITGO:

  -- Issuer Default Rating at 'BB-';
  -- Senior Secured Credit Facility at 'BBB-';
  -- Secured Term Loan at 'BBB-';
  -- Fixed-Rate Industrial Revenue Bonds at 'BBB-'.


CITGO PETROLEUM: Moody's Cuts Corporate Family Rating to 'Ba2'
--------------------------------------------------------------
Moody's Investors Service downgraded CITGO Petroleum Corporation's
Corporate Family Rating to Ba2 from Ba1.  Moody's also downgraded
the company's Senior Secured Term Loan and Term Loan B ratings to
Ba1 (LGD 2, 21%) from Baa3 (LGD 2, 25%), its pollution control
bonds to Ba1 (LGD 2, 21%) from Baa3 (LGD 3, 31%), and its PDR
rating to Ba3 from Ba2.  The rating outlook is stable.  The
downgrades are in response to weaker refining fundamentals, the
company's increased capital needs in the medium-term, and Moody's
view that its parent, Petroleos de Venezuela, S.A. (rated B1
Global Local Currency Issuer Rating) will continue to pose greater
risk for the company's leverage, capital reinvestment and
liquidity.

CITGO sustained a net loss of $105 million in the first half of
2009, reflecting lower product sales revenues and narrowing light/
heavy crude oil differentials, which resulted in significantly
reduced refining margins.  Results were also affected by expenses
related to its social responsibility program, including discounted
heating oil sales.  While the company's net loss is expected to
ease somewhat for the full year, cash flow will be significantly
lower in 2009, and earnings and cash flow will remain under
pressure in 2010.  In addition, capital spending will remain
elevated for investments to manufacture ultra low sulfur diesel.

Moody's notes that under a potential scenario of negative free
cash flow, the company is taking steps to defer some capital and
turnaround expenditures and to enhance working capital management
and maintain financial flexibility.  However, with capital
requirements expected to remain elevated into 2011, prospects for
leverage reduction are limited.

Liquidity concerns about CITGO, including restricted access to its
accounts receivable facility and a tight financial leverage
covenant, have been alleviated.  CITGO renewed its $450 million
Accounts Receivable facility and has approximately $500 million of
unused capacity under its $1.15 billion secured revolving credit
facility, a portion of which backstops certain industrial revenue
bonds.  As of June 30, 2009, the borrowing covenant of a maximum
55% total debt/capital had eased to approximately 49%, and is
expected to remain in compliance through 2009 and into 2010.  The
revolver expires in November 2010, so renewal of the facility will
be key to CITGO's future liquidity position.

CITGO's covenant tightness primarily arose as a result of a debt-
funded $1 billion intercompany loan made to PDVSA in 2007.  PDVSA
has agreed to repay approximately $300 million of the loan in
2009, $100 million in early 2010, and via scheduled amortization
at market rates of the remaining balance through 2020.  The
repayment in 2009 and future amortization should enable CITGO to
gradually improve its leverage position.

However, CITGO's operations have been restructured over the past
few years by selling assets and PDVSA has aggressively managed the
subsidiary's financial leverage via large dividends, with capital
spending limited to minimum levels required for maintenance,
safety and mandated environmental expenditures.  Consequently, the
downgrade also reflects Moody's view that CITGO's ability to
reinvest and manage its financial leverage could continue to be
adversely affected by the parent's capital strategies and cash
needs.

Moody's notes that underlying the Ba2 CFR is a reduction in
CITGO's baseline credit assessment to 13 (corresponding to Ba3).
CITGO, as a wholly-owned subsidiary of PDVSA, is subject to joint
default analysis as a government-related issuer.

Moody's last rating action affecting CITGO occurred on June 2,
2009, when the ratings were placed on review for downgrade.

CITGO Petroleum Corporation is headquartered in Houston, Texas.
Petroleos de Venezuela is located in Caracas, Venezuela.


PETROLEOS DE VENEZUELA: Moody's Cuts Unit's Family Rating to 'Ba2'
------------------------------------------------------------------
Moody's Investors Service downgraded CITGO Petroleum Corporation's
Corporate Family Rating to Ba2 from Ba1.  Moody's also downgraded
the company's Senior Secured Term Loan and Term Loan B ratings to
Ba1 (LGD 2, 21%) from Baa3 (LGD 2, 25%), its pollution control
bonds to Ba1 (LGD 2, 21%) from Baa3 (LGD 3, 31%), and its PDR
rating to Ba3 from Ba2.  The rating outlook is stable.  The
downgrades are in response to weaker refining fundamentals, the
company's increased capital needs in the medium-term, and Moody's
view that its parent, Petroleos de Venezuela, S.A. (rated B1
Global Local Currency Issuer Rating) will continue to pose greater
risk for the company's leverage, capital reinvestment and
liquidity.

CITGO sustained a net loss of $105 million in the first half of
2009, reflecting lower product sales revenues and narrowing light/
heavy crude oil differentials, which resulted in significantly
reduced refining margins.  Results were also affected by expenses
related to its social responsibility program, including discounted
heating oil sales.  While the company's net loss is expected to
ease somewhat for the full year, cash flow will be significantly
lower in 2009, and earnings and cash flow will remain under
pressure in 2010.  In addition, capital spending will remain
elevated for investments to manufacture ultra low sulfur diesel.

Moody's notes that under a potential scenario of negative free
cash flow, the company is taking steps to defer some capital and
turnaround expenditures and to enhance working capital management
and maintain financial flexibility.  However, with capital
requirements expected to remain elevated into 2011, prospects for
leverage reduction are limited.

Liquidity concerns about CITGO, including restricted access to its
accounts receivable facility and a tight financial leverage
covenant, have been alleviated.  CITGO renewed its $450 million
Accounts Receivable facility and has approximately $500 million of
unused capacity under its $1.15 billion secured revolving credit
facility, a portion of which backstops certain industrial revenue
bonds.  As of June 30, 2009, the borrowing covenant of a maximum
55% total debt/capital had eased to approximately 49%, and is
expected to remain in compliance through 2009 and into 2010.  The
revolver expires in November 2010, so renewal of the facility will
be key to CITGO's future liquidity position.

CITGO's covenant tightness primarily arose as a result of a debt-
funded $1 billion intercompany loan made to PDVSA in 2007.  PDVSA
has agreed to repay approximately $300 million of the loan in
2009, $100 million in early 2010, and via scheduled amortization
at market rates of the remaining balance through 2020.  The
repayment in 2009 and future amortization should enable CITGO to
gradually improve its leverage position.

However, CITGO's operations have been restructured over the past
few years by selling assets and PDVSA has aggressively managed the
subsidiary's financial leverage via large dividends, with capital
spending limited to minimum levels required for maintenance,
safety and mandated environmental expenditures.  Consequently, the
downgrade also reflects Moody's view that CITGO's ability to
reinvest and manage its financial leverage could continue to be
adversely affected by the parent's capital strategies and cash
needs.

Moody's notes that underlying the Ba2 CFR is a reduction in
CITGO's baseline credit assessment to 13 (corresponding to Ba3).
CITGO, as a wholly-owned subsidiary of PDVSA, is subject to joint
default analysis as a government-related issuer.

Moody's last rating action affecting CITGO occurred on June 2,
2009, when the ratings were placed on review for downgrade.

CITGO Petroleum Corporation is headquartered in Houston, Texas.
Petroleos de Venezuela is located in Caracas, Venezuela.


PETROLEOS DE VENEZUELA: JV With Petrobras Faces Difficulties
------------------------------------------------------------
Petroleos de Venezuela and Brazilian state-run Petroleo Brasileiro
SA continue to face difficulties in launching a troubled refinery
joint venture, with a final agreement for the project once again
delayed, Jeff Fick at Dow Jones Newswires reports.

According to the report, Brazilian President Luiz Inacio Lula da
Silva said a final deal for the Abreu e Lima refinery in Brazil's
Pernambuco state in the Northeast would be delayed until
October 16 to 17.  The report relates that Brazilian President
Luiz Inacio Lula da Silva and Venezuelan counterpart Hugo Chavez
had been expected to sign the deal at bilateral talks over the
weekend.  However, the report says, the weekend failure was just
another in a long line of delays, cost increases and controversies
to weigh on the refinery.

As reported in the Troubled Company Reporter-Latin America on
August 27, 2009, Dow Jones Newswires said that Petrobras increased
three-fold the costs to implement a joint venture refinery project
with PDVSA as the 230,000 million-barrel-a-day refinery would
require total investments of about US$12 billion, up from previous
forecasts of US$4.06 billion.

According to a TCRLA report on July 30, 2009, citing Dow Jones
Newswires, PDVSA and Petrobras negotiations on the Abreu e Lima
refinery project failed talks as it was unable to reach a deal on
investment costs, sales and oil prices.  According to Dow Jones
Newswires, citing the Estado News Agency, Paulo Roberto Costa,
Petrobras' Supply and Refining director, said there was an impasse
in the proposed oil refinery joint-venture due to PdVSA's attempts
to impose conditions on its participation in the project, and this
may lead to its being excluded.  Mr. Costa, Reuters related, told
reporters that PDVSA's plan was not acceptable due to the pricing
mechanism for the heavy crude that Venezuela would supply to the
refinery and the plan for commercialization of the refined
products.

                            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: May Supply Kenya With Cheap Oil
--------------------------------------------
The government of Kenya said that Venezuela may supply the African
nation with low cost oil and provide technical assistance as Kenya
seeks to produce oil, The Associated Press reports.

According to the report, Kenyan Vice President Kalonzo Musyoka
said that under the agreement, Kenya will gain access to expertise
from Venezuela to aid "its quest to strike oil of its own as well
as the possibility of getting access to cheaper oil supply."

The AP notes that Mr. Musyoka and Venezuelan Oil Minister Rafael
Ramirez signed the deal on Sunday during a summit of Latin
American and African leaders held in Venezuela.

                         *     *     *

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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Oct. 2, 2009
AMERICAN BANKRUPTCY INSTITUTE
    ABI/GULC "Views from the Bench"
       Georgetown University Law Center, Washington, D.C.
          Contact: http://www.abiworld.org/

Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       Marriott Desert Ridge, Phoenix, Arizona
          Contact: 312-578-6900; http://www.turnaround.org/

Oct. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
    NCBJ/ABI Educational Program
       Paris Las Vegas, Las Vegas, Nev.
          Contact: http://www.abiworld.org/

Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
    21st Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.
          Contact: http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/


                            ***********

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 * * *