/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/091006.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 Tuesday, October 6, 2009, Vol. 10, No. 197 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: SFG Director Asks Court to Reject Indictment STANFORD INT'L: Receiver Seeks US$8.8MM More for Fees, Expenses A R G E N T I N A DEL PLATA: Trustee Verifying Proofs of Claim Until December 3 DIGSER SA: Proofs of Claim Verification Deadline is December 1 ESTABLECIMIENTO: Creditors' Proofs of Debt Due on December 9 KONFLUENCIA SA: Trustee Verifying Proofs of Claim Until Nov. 18 LOUCEN INTERNATIONAL: Creditors' Proofs of Debt Due on November 9 QUEST SA: Proofs of Claim Verification Deadline is November 26 SOLO EMPANADAS: Trustee Verifying Proofs of Claim Until Nov. 20 TECNOTEST SA: Trustee Verifying Proofs of Claim Until Nov. 17 TELEFONICA DE ARGENTINA: S&P Affirms 'B-' Issuer Credit Rating TELEFONICA DE ARGENTINA: S&P Affirms 'B-' Issuer Credit Rating TEXPART SRL: Proofs of Claim Verification Deadline is December 1 B A H A M A S IFH PERU: S&P Assigns 'B+' Long-Term Corporate Credit Rating IFH PERU: S&P Assigns Corporate Credit Rating at 'B+' B E R M U D A VALIDUS HOLDINGS: Cuts 30 Jobs at IPCRe Limited (Bermuda) B R A Z I L AES CORP: Won't Bid for Belo Monte Dam in Brazil BANOC CACIQUE: Fitch Corrects Ratings BANCO INTERNACIONAL: Moody's Downgrades Deposit Ratings to 'Ba3' BANCO PECUNIA: Fitch Corrects Ratings BRASIL FOODS: Moody's Confirms 'Ba1' Corporate Family Rating EMPRESA BRASILEIRA: Concludes Series of Notes Offering in U.S. JBS SA: Local Judge Freezes Assets Amid Bribery Probe MINERVA SA: S&P Gives Stable Outlook; Affirms 'CCC+' Rating SOCIETE GENERALE: Fitch Corrects Ratings C A Y M A N I S L A N D S ACM ACTIVE: Creditors' Proofs of Debt Due on October 14 ACM ACTIVE: Creditors' Proofs of Debt Due on October 14 ACM US: Creditors' Proofs of Debt Due on October 14 ACM YEN: Creditors' Proofs of Debt Due on October 14 ALTERRA LUTON: Creditors' Proofs of Debt Due on October 15 ANGLIAN SELECT: Creditors' Proofs of Debt Due on October 15 AUSTRALIS LTD: Shareholder to Receive Wind-Up Report on Oct. 15 BLACK TOWER: Creditors' Proofs of Debt Due on October 15 BLACK TOWER: Creditors' Proofs of Debt Due on October 15 BLUE RIDGE: Creditors' Proofs of Debt Due on October 14 BLUEHAVEN MASTER: In Liquidation; Final Meeting on October 30 BLUEHAVEN LIMITED: In Liquidation; Final Meeting on October 30 CHAMPLAIN LIMITED: Shareholder to Hear Wind-Up Report on Oct. 15 DB JASMINE NO. 2: Creditors' Proofs of Debt Due on October 15 DKR NEUTRINO: Creditors' Proofs of Debt Due on October 12 DKR NEUTRINO: Creditors' Proofs of Debt Due on October 12 DKR OVERLAY: Creditors' Proofs of Debt Due on October 12 DKR RELATIVE: Creditors' Proofs of Debt Due on October 12 DKR SOLSTICE: Creditors' Proofs of Debt Due on October 12 DKR SOLSTICE: Creditors' Proofs of Debt Due on October 12 EURUS LTD: Shareholder to Hear Wind-Up Report on October 15 GMFF CASTOR: Creditors' Proofs of Debt Due on October 14 INQUAM BROADBAND: Creditors' Proofs of Debt Due on October 15 IRONBOUND ASIA: Members' Final Meeting Set for October 14 LEEWARD OFFSHORE: Creditors' Proofs of Debt Due on October 14 MISATO ASSET: Creditors' Proofs of Debt Due on October 14 MUXAXAS LIMITED: In Liquidation; Final Meeting Held October 2 NINTH WAVE: Shareholders' Final Meeting Set for October 16 PAGIA INVESTMENTS: Creditors' Proofs of Debt Due on October 14 PB CAPITAL: Creditors' Proofs of Debt Due on October 15 PB CAPITAL: Creditors' Proofs of Debt Due on October 15 PHOENIX JAPAN: Creditors' Proofs of Debt Due on October 15 PHOENIX JAPAN: Creditors' Proofs of Debt Due on October 15 PULSAR RESOURCE: Creditors' Proofs of Debt Due on October 14 REDWOOD CAPITAL: Creditors' Proofs of Debt Due on October 15 SCIELE PHARMA: Creditors' Proofs of Debt Due on October 15 SICHUAN AIRBUS: Creditors' Proofs of Debt Due on October 14 SP CAYMAN: Creditors' Proofs of Debt Due on October 15 ST LTD: Creditors' Proofs of Debt Due on October 15 STERLING STAMOS: Members' Final Meeting Set for October 14 THAMES RIVER: Creditors' Proofs of Debt Due on October 15 VANDERBILT CDO: Creditors' Proofs of Debt Due on October 14 VANDERBILT SPECIAL: Creditors' Proofs of Debt Due on October 14 * CAYMAN ISLAND: Gets OK From UK to Obtain CI$50MM Bailout Loan C O L O M B I A ECOPETROL SA: Discloses Exchange Offer Results ECOPETROL SA: To Invest US$2.5 Billion in Peru With KNOC J A M A I C A AIR JAMAICA: Retains Board of Directors AIR JAMAICA: Talks With Trade Unions Hit Rough "Patch" CABLE & WIRELESS: LIME Pumps JM$670 Million Into Cell Sites JAMAICA PUBLIC SERVICE: Appoints Christopher Berry as New Director JAMAICA PUBLIC SERVICE: Promises Cheaper Energy Rates JAMAICA PUBLIC SERVICE: Increases Generating Capacity * JAMAICA: Government Revenues Drops by JM$10 Million M E X I C O STATE OF GUERRERO: Moody's Withdraws Issuer Ratings P E R U BANCO INTERNACIONAL: S&P Assigns 'BB+' Counterparty Credit Rating BANCO INTERNACIONAL: S&P Assigns 'BB+' Counterparty Credit Rating IFH PERU: Moody's Assigns 'Ba3' Global Currency Bond Rating U R U G U A Y ADMINISTRACION NACIONAL: S&P Cuts Corporate Credit Rating to 'B+' V E N E Z U E L A CITGO PETROLEUM: Plans to Restart Corpus Christi Unit This Month PETROLEOS DE VENEZUELA: Buys Asset From ConocoPhillips PETROLEOS DE VENEZUELA: Refinery Complied W/ Safety Measures * VENEZUELA: Sees Stagnant Growth for 2010, President Chavez Says X X X X X X X X * ECLAC & ILO See 8.5% Unemployment for LatAM & Caribbean in 2009 * Large Companies With Insolvent Balance Sheets - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: SFG Director Asks Court to Reject Indictment ------------------------------------------------------------ Former Stanford Financial Group global security director, Thomas Raffanello, has asked U.S. District Judge William Zloch to throw out an indictment accusing him of destroying records sought for a Securities and Exchange Commission probe, Bloomberg News reports. According to the report, citing papers by Mr. Raffanello's lawyers, stated that restraining orders obtained from a Dallas federal court judge by the SEC and a court-appointed receiver forbidding destruction of Stanford business records did not apply to Mr. Raffanello or the company for which he worked. "Unfortunately for the government, the underlying orders upon which it relies are fatally flawed," the defense attorneys said in their 22-page filing obtained by the news agency. As reported in the Troubled Company Reporter-Latin America on September 14, 2009, Mr. Raffanello has been charged in a three- count superseding indictment with conspiracy to obstruct a U.S. Securities and Exchange Commission proceeding and to destroy documents in a federal investigation; obstruction of a proceeding before the SEC; and destruction of records in a federal investigation, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer and Acting U.S. Attorney Jeffrey H. Sloman of the Southern District of Florida. The initial indictment in the case was unsealed by the U.S. District Court for the Southern District of Florida on June 19, 2009, and charged Bruce Perraud of Weston, Fla., a former global security specialist at the Fort Lauderdale SFG office, with one count of destruction of records in a federal investigation. In addition to charging Mr. Raffanello, the superseding indictment charges Mr. Perraud with an additional count of conspiracy as well as one count of obstruction of a proceeding before the SEC. 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: Receiver Seeks US$8.8MM More for Fees, Expenses --------------------------------------------------------------- Laurel Brubaker Calkins at Bloomberg News reports Stanford Financial Group court-appointed receiver, Ralph Janvey, is requesting for an additional $8.8 million in fees and expenses for his work and for the 13 accounting and legal firms assisting him from June through August. According to the report, Mr. Janvey in September won court approval of about US$20 million in fees and expenses for work he did from February through May. Mr. Janvey, the report notes, said the latest request reflects the 20% discount his team has applied to their standard billing rates throughout the Stanford Financial Group receivership assignment. The report relates that of the US$8.8 million, US$2.2 million will be held back in accordance with a court ruling that he defer 20% of his billings until the ultimate success of his efforts can be assessed. “Despite many unanticipated additional activities required of the professionals, these fees and expenses are less than what the receiver projected in the first and second interim fee applications,” the report quoted Kevin Sadler, Mr. Janvey’s lead attorney, as saying. Several persons involved in the case were not pleased with Mr. Janvey's announcement. Bloomberg News notes Kent Schaffer, Mr. Stanford’s court-appointed criminal-defense attorney, said that Mr. Janvey’s fee request was “not surprising” in light of his earlier billings. The report relates Dan Cogdell, who represents Stanford’s Chief Investment Officer and co-defendant Laura Pendergest-Holt, said it isn’t fair that Janvey has been paid millions in fees and expenses while the defendants’ lawyers haven’t been paid anything. The report adds that the sentiment was also echoed by David Finn, the attorney representing Stanford’s finance chief, James M. Davis. 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 ================= DEL PLATA: Trustee Verifying Proofs of Claim Until December 3 ------------------------------------------------------------- The court-appointed trustee for Del Plata Salud 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 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 6, 2010. Creditors will vote to ratify the completed settlement plan during the assembly on September 20 2010. DIGSER SA: Proofs of Claim Verification Deadline is December 1 -------------------------------------------------------------- Ines Etelvina Clos, the court-appointed trustee for Digser SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until December 1, 2009. Ms. Clos will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 4 in Buenos Aires, with the assistance of Clerk No. 8, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Ines Etelvina Clos Sarmiento 944 Argentina ESTABLECIMIENTO: Creditors' Proofs of Debt Due on December 9 ------------------------------------------------------------ Veronica Isabel Segovia, the court-appointed trustee for Establecimiento Metalurgico Normetal SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until December 9, 2009. Ms. Segovia will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 7 in Buenos Aires, with the assistance of Clerk No. 14, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Veronica Isabel Segovia San Martin 662 Argentina KONFLUENCIA SA: Trustee Verifying Proofs of Claim Until Nov. 18 --------------------------------------------------------------- The court-appointed trustee for Konfluencia S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until November 18, 2009. The trustee will present the validated claims in court as individual reports on February 1, 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 15, 2010. Creditors will vote to ratify the completed settlement plan during the assembly on August 18, 2010. LOUCEN INTERNATIONAL: Creditors' Proofs of Debt Due on November 9 ----------------------------------------------------------------- The court-appointed trustee for Loucen International Argentina S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until November 9, 2009. QUEST SA: Proofs of Claim Verification Deadline is November 26 -------------------------------------------------------------- Francisco Jose Salto, the court-appointed trustee for Quest SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until November 26, 2009. Mr. Salto will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 37, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Francisco Jose Salto Av. Cordoba 1351 Argentina SOLO EMPANADAS: Trustee Verifying Proofs of Claim Until Nov. 20 --------------------------------------------------------------- The court-appointed trustee for Solo Empanadas S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until November 20, 2009. The trustee will present the validated claims in court as individual reports on February 3, 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 January 17, 2010. Creditors will vote to ratify the completed settlement plan during the assembly on October 13, 2010. TECNOTEST SA: Trustee Verifying Proofs of Claim Until Nov. 17 ------------------------------------------------------------- The court-appointed trustee for Tecnotest S.A.'s bankruptcy 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 3, 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 17, 2010. TELEFONICA DE ARGENTINA: S&P Affirms 'B-' Issuer Credit Rating -------------------------------------------------------------- On Oct. 2, 2009, Standard & Poor's Ratings Services affirmed its 'B-' long-term foreign currency issuer credit and the outstanding bonds ratings on Telefonica de Argentina S.A. The affirmation follows the company's announcement of a tender offer to repurchase a portion (up to about $100 million) of its outstanding bonds (about $330 million) at nominal value plus a premium. The outlook on the long-term foreign currency issuer credit rating is stable. TASA's ratings reflect the high political and regulatory risk and volatile economic environment in Argentina, and the company's relatively high exposure to currency mismatch risks. These factors are partially mitigated by the company's solid market position, efficient operations, and sound financial metrics. The telecommunication industry in Argentina continues to face high political and regulatory risk. In February 2006, TASA signed a memorandum of understanding with the government regarding the renegotiation of its license contract. Although the implementation of the agreement is still pending, it is not expected to significantly impact the company's credit quality. During 2008 and the first half of 2009, relatively stable conditions in the fixed-line segment and the growth of non- regulated services, such as broadband Internet, and product packages allowed the company to offset its lower operating margins and to maintain relatively stable cash flow generation. The EBITDA margins dropped to 41.9% in 2008 and 40.1% in the first half of 2009, compared with 45.3% in 2007, due to higher operational costs, limited pricing flexibility, because of the January 2002 freeze on fixed tariffs, and high competitive pressures in the broadband segment. S&P expects EBITDA decline to persist during 2009 as a result of continued cost pressures in Argentina caused by inflation. However, this should be partially mitigated by the attractive growth rates in non-regulated services and product packages, and by cost-cutting initiatives. Despite the high-risk business environment, TASA enjoys healthy cash generation, which allowed it to reduce debt levels by about 38% in pesos between June 30, 2007, and June 30, 2009, and resulted in a significant improvement in its debt service coverage ratios. For the 12 months ended June 30, 2009, TASA's consolidated EBITDA interest coverage and funds from operations to debt were 11.5x and 127.4%, respectively, compared with 9.4x and 94.5% in 2007. The debt-to-EBITDA ratio was 0.7x, compared with 0.9x as of Dec. 31, 2007. S&P expects TASA to continue generating about $500 million in cash annually depending on changes in the exchange rate, which should allow it to internally finance its capital expenditures, to potentially distribute dividends, and improve its liquidity or continue to prepay debt. TASA, one of two incumbent telephone companies in Argentina, was formed in 1990 after the privatization of state telecommunications. Holding about 50% of the 9 million lines in service in Argentina, TASA currently provides basic telecommunications services for local, national, and international long-distance, and broadband Internet throughout the country. panish telecommunications operator Telefonica S.A. (A-/Stable/A-2) directly and indirectly owns 98% of TASA's shares. S&P considers TASA's liquidity position adequate, given the company's relatively high cash reserves, good cash flow generation, and manageable maturity schedule, with no significant maturities until 2010. This mitigates its relatively high exposure to a devaluation of the Argentine peso resulting from its mostly dollar-denominated debt and its peso-denominated cash flow generation, which worsen when considering the current tariff freeze and pesification. As of June 30, 2009, TASA had a large cash holding of about $212 million, compared with short-term debt of $21 million and a total debt of $351 million. Part of these cash reserves will be devoted to the fund the recently announced tender offer on outstanding bonds. The stable outlook reflects the company's solid competitive position and strong cash flow generation. Ratings upside is limited by the high economic, political, and regulatory risk in Argentina. The ratings could be revised if Argentina's business environment further deteriorates and nationalization risk significantly increases. Ratings Affirmed Telefonica de Argentina S.A. Corporate Credit Rating Foreign Currency B-/Stable/-- National Scale Currency raAA/Stable/-- Telefonica de Argentina S.A. Senior Unsecured B- Senior Unsecured raAA TELEFONICA DE ARGENTINA: S&P Affirms 'B-' Issuer Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' long-term foreign currency issuer credit and the outstanding bonds ratings on Telefonica de Argentina S.A. The affirmation follows the company's announcement of a tender offer to repurchase a portion (up to about $100 million) of its outstanding bonds (about $330 million) at nominal value plus a premium. The outlook on the long-term foreign currency issuer credit rating is stable. The stable outlook reflects the company's solid competitive position and strong cash flow generation. Ratings upside is limited by the high economic, political, and regulatory risk in Argentina. The ratings could be revised if Argentina's business environment further deteriorates and nationalization risk significantly increases. TEXPART SRL: Proofs of Claim Verification Deadline is December 1 ---------------------------------------------------------------- Claudio Walter Caracciolo, the court-appointed trustee for Texpart SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until December 1, 2009. Mr. Caracciolo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 16 in Buenos Aires, with the assistance of Clerk No. 31, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Claudio Walter Caracciolo Viamonte 1592 Argentina ============= B A H A M A S ============= IFH PERU: S&P Assigns 'B+' Long-Term Corporate Credit Rating ------------------------------------------------------------ On Oct. 2, 2009, Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit rating to Bahamas-incorporated holding company IFH Peru Ltd. At the same time, S&P assigned a 'B+' rating to IFH's proposed $100 million adjustable-rate, 10- year, Regulation S bullet notes due 2019. The Series A notes will be denominated and payable in U.S. dollars; the Series B notes will also be denominated and payable in U.S. dollars, but they are also linked to the Chilean currency unit, Unidad de Fomento. Proceeds from the issuance will be primarily used by IFH's retail subsidiaries to finance the expansion of their retail stores and provide funding to its retail-related credit card business. The ratings reflect IFH's heavy reliance on dividends coming from a small number of subsidiaries, a certain level of currency mismatch resulting from the proposed notes U.S.-dollar denomination, and the group's relatively aggressive expansion strategy. These factors are partially mitigated by the group's good position in Peru's financial system (arising from its stake in Interbank, the fourth-largest Peruvian bank in terms of deposits and by far IFH's largest subsidiary and cash contributor). Through subsidiaries, IFH is involved in several sectors of the Peruvian economy, including: financial services, insurance, supermarkets, retail, and real estate, among others. Through Supermercados Peruanos S.A., the group has about a 30% share (ranking second) in Peru's still-underdeveloped, but growing, supermarket industry. IFH is also entering into the department store business. S&P expects these two segments to receive the bulk of the group's investments and expansion strategy in coming years. As a holding company, IFH's repayment capacity depends largely on dividends received from its operating subsidiaries, particularly from Intergroup Financial Services, which in turn owns Interbank and the insurance company, Interseguro. S&P thinks IFH's current portfolio composition is unlikely to change significantly in the foreseeable future, since the company's strategy is to maintain its current stakes in its subsidiaries. S&P expects increased diversification as the retail business grows, but both the supermarket and retail segments are expanding (though at different stages). In addition, dividend contribution from those segments is, at this point, more uncertain than that from the more-mature banking business. S&P considers the inherent volatility of dividend flows as the main risk factor in a holding company's debt repayment capacity, particularly those relying on just a couple primary assets, with relatively low liquidity derived from a majority of nonlisted subsidiaries. In addition, other factors, like mandatory reserve increases, could impair Interbank's ability to pay dividends consistently. Short-term credit factorsIFH will have about Peruvian nuevos soles (PEN) 30 million in annual interest expenses from the upcoming issuance (assuming a 10% interest rate). In addition, the company will have to service existing debt of about PEN55 million annually over the next two years. Thus, IFH would have to cover fixed payments for about PEN90 million in the next two years (including about PEN5 million in overhead costs). Assuming a more- conservative dividend income scenario from IFS of around PEN60 million (compared with PEN80 million in 2008 and PEN86 million expected in 2009) and PEN20 million-24 million in projected intercompany loan collections, IFH would have to rely on its cash reserves to cover its fixes charges. As of June 30, 2009, IFH had about PEN24 million in cash equivalents. Nevertheless, S&P expects IFH to keep prudent liquidity levels (in excess of PEN20 million). The terms and conditions of the upcoming notes include a minimum unconsolidated net worth ratio (nonconsolidated indebtedness divided by net worth) of 0.65x. Pro forma after the notes issuance, this ratio should be at 0.25, leaving significant room for additional debt. Nevertheless, the current rating does not incorporate additional debt at the holding company level. Thus, S&P does not expect this ratio to deteriorate. In addition, dividends are only allowed if the next coupon is deposited in a special payment account. The stable outlook reflects S&P's expectation that IFH will maintain prudent liquidity levels varying according to the expected dividend flow from its subsidiaries. The outlook also assumes that IFH will not take on any significant additional debt at the holding company level. The ratings and/or outlook could benefit from further cash flow diversification. On the other hand, the ratings could come under pressure from significant deterioration in Interbank's profitability and ability to pay dividends, or if IFH assumes a more-aggressive financial policy as a result of its expansion strategy. New Rating; CreditWatch/Outlook Action IFH Peru Ltd. Corporate Credit Rating B+/Stable/-- New Rating IFH Peru Ltd. Senior Secured B+ IFH PERU: S&P Assigns Corporate Credit Rating at 'B+' ----------------------------------------------------- Standard & Poor's Ratings Services said that it has assigned its 'B+' long-term corporate credit rating to Bahamas-incorporated holding company IFH Peru Ltd. At the same time, S&P assigned a 'B+' rating to IFH's proposed $100 million adjustable-rate, 10- year, Regulation S bullet notes due 2019. The Series A notes will be denominated and payable in U.S. dollars; the Series B notes will also be denominated and payable in U.S. dollars, but they are also linked to the Chilean currency unit, Unidad de Fomento. Proceeds from the issuance will be primarily used by IFH's retail subsidiaries to finance the expansion of their retail stores and provide funding to its retail-related credit card business. "The ratings reflect IFH's heavy reliance on dividends coming from a small number of subsidiaries, a certain level of currency mismatch resulting from the proposed notes U.S.-dollar denomination, and the group's relatively aggressive expansion strategy. These factors are partially mitigated by the group's good position in Peru's financial system, which arises from its stake in Interbank, the fourth-largest Peruvian bank in terms of deposits and by far IFH's largest subsidiary and cash contributor," said Standard & Poor's credit analyst Luciano Gremone. Through subsidiaries, IFH is involved in several sectors of the Peruvian economy, including: financial services, insurance, supermarkets, retail, and real estate, among others. Through Supermercados Peruanos S.A., the group has about a 30% share (ranking second) in Peru's still-underdeveloped, but growing, supermarket industry. IFH is also entering into the department store business. S&P expects these two segments to receive the bulk of the group's investments and expansion strategy in coming years. S&P considers the inherent volatility of dividend flows as the main risk factor in a holding company's debt repayment capacity, particularly those relying on just a couple primary assets, with relatively low liquidity derived from a majority of nonlisted subsidiaries. In addition, other factors like mandatory reserve increases could impair Interbank's ability to pay dividends consistently. The terms and conditions of the upcoming notes include a minimum unconsolidated net worth ratio (nonconsolidated indebtedness divided by net worth) of 0.65x. Pro forma after the notes issuance, this ratio should be at 0.25, leaving significant room for additional debt. Nevertheless, the current rating does not incorporate additional debt at the holding company level. Thus, S&P does not expect this ratio to deteriorate. In addition, dividends are only allowed if the next coupon is deposited in a special payment account. The stable outlook reflects S&P's expectation that IFH will maintain prudent liquidity levels varying according to the expected dividend flow from its subsidiaries. The outlook also assumes that IFH will not take on any significant additional debt at the holding company level. "The ratings and/or outlook could benefit from further cash flow diversification. On the other hand, the ratings could come under pressure from significant deterioration in Interbank's profitability and ability to pay dividends, or if IFH assumes a more-aggressive financial policy as a result of its expansion strategy," Mr. Gremone added. ============= B E R M U D A ============= VALIDUS HOLDINGS: Cuts 30 Jobs at IPCRe Limited (Bermuda) --------------------------------------------------------- Jonathan Kent at the Royal Gazette reports that 30 members of the staff of IPCRe Limited (Bermuda), a unit of IPC Holdings, will leave the company at the end of the year following Validus Holdings Ltd.'s takeover. The report relates that all of IPC Re's top management staff and underwriters are to go, while Validus Holding's management met separately with each of the remaining 22 underwriting support staff to tell them who would stay and who would go. Validus Holdings Chairman and Chief Executive Officer Ed Noonan told the news agency that all of the 30 IPC Re staff will remain on the payroll until December 31, giving them the chance to earn a year-end bonus. The report relates that the severance package includes a payment that is at least 50% of salary and departing staff will also receive retention bonuses for having stayed on during the transitional period. According to the report, Mr. Noonan said that from an operational standpoint, the merger of the two companies was going smoothly; and the transfer of data from IPC Re into Validus's systems had also gone well. As reported in the Troubled Company Reporter-Latin America on September 7, 2009, Validus Holdings completed its acquisition of IPC Holdings, Ltd. At a Special General Meeting of Shareholders on September 4, 2009, Validus shareholders approved the issuance of Validus common shares in connection with the acquisition of IPC with the support of approximately 87% of the shares voted at the meeting. About Validus Holdings, Ltd. Validus Holdings Ltd. -- http://www.validusre.bm/-- is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd., and Talbot Holdings Ltd. Validus Re is a Bermuda based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd's insurance market through Syndicate 1183. * * * As reported in the Troubled Company Reporter-Latin America on September 11, 2009, A.M. Best Co. affirmed the ICR of "bbb-" and the indicative ratings for securities available under the shelf registration of "bbb-" on senior debt, "bb+" on subordinated debt and "bb" on the preferred stock of Validus Holdings, Ltd. (Validus Holdings). =========== B R A Z I L =========== AES CORP: Won't Bid for Belo Monte Dam in Brazil ------------------------------------------------ The AES Corporation won't join forces with other Brazilian energy firms any time soon in a bid for the massive US$8-billion Belo Monte hydroelectric power station project, set to occur later this month, Kenneth Rapoza at Dow Jones Newswires reports, citing Britaldo Soares, AES Eletropaulo CEO. "At this time, we are not interested in Belo Monte; we are more focused on expanding in Sao Paulo," the report quoted Mr. Soares as saying. AES Eletropaulo is a unit of AES Corp, which operates Sao Paulo. According to the report, Mr. Soares said that AES CORP, which receives around 33% of global revenues from Brazil, is looking to expand one of its hydroelectric power stations in Sao Paulo. The report relates that under the government's regulatory rules, AES is committed to expanding its AES Tiete hydroelectric power station by another 400 megawatts in the near term. Dow Jones Newswires says the Belo Monte power station will have the capacity to generate around 11,000 megawatts of electric power. About AES Corporation The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of the world's largest global power companies, with 2007 revenues of US$13.6 billion. With operations in 29 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. * * * As reported in the Troubled Company Reporter-Latin America on April 7, 2009, Fitch Ratings affirmed The AES Corporation's long- term Issuer Default Rating at 'B+' with a Stable Rating Outlook. BANOC CACIQUE: Fitch Corrects Ratings ------------------------------------- This announcement corrects the version issued on 29 September 2009. The Short-term foreign currency Issuer Default Rating assigned to Societe Generale Brasil S.A., Banco Cacique S.A. and Banco Pecunia S.A.is 'F2' and not 'F3' as previously stated. Fitch Ratings has assigned ratings to SGBr, Cacique and Pecunia and affirmed others: SGBr -- Long-term Foreign Currency Issuer Default rating (IDR) assigned at 'BBB' with Stable Outlook -- Short-term Foreign Currency IDR assigned at 'F2' -- 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 'F2' -- 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 'F2' -- 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 centralised 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. BANCO INTERNACIONAL: Moody's Downgrades Deposit Ratings to 'Ba3' ---------------------------------------------------------------- Moody's Investors Service downgraded to Ba3, from Ba2, the global local- and foreign-currency deposit ratings of Banif - Banco Internacional do Funchal (Brasil), S.A.'s (Banif Brazil) and of Banif Banco de Investimento (Brasil) S.A.'s (Banif Investimento). Moody's also lowered both banks' long-term Brazilian national scale ratings to A2.br, from Aa3.br. The D- bank financial strength ratings of Banif Brazil and of Banif Investimento were affirmed, as well as the local- and foreign-currency short-term deposits ratings of Not Prime, and the short-term national scale ratings of BR-1. The outlooks on all ratings were changed to negative. These rating actions conclude the review for possible downgrade on the deposit ratings of the two banks, which was initiated in April 23, 2009. They follow Moody's downgrade of Banif - Banco Internacional do Funchal, SA's (Banif Portugal) BFSR to D-. The ratings of Banif Portugal also carry negative outlooks. Both Banif Brazil and Banif Investimento are not direct subsidiaries of Banif Portugal; in Moody's view, however, parental support, if required, would be provided through Banif Portugal because this entity is the main originator of earnings within the Portuguese group. Moreover, there are no ratings for Banif's investment banking operation in Portugal at the present. In assigning the negative outlook on Banif Brazil's D- BFSR, Moody's pointed to the bank's weakened asset quality and profitability, which was mostly driven by losses from trading activities and from higher provisioning costs. The rating agency also noted that the bank's expansion strategy in Brazil -- which is expected to support future loan growth and earnings -- could be challenged by Banif Brazil's modest capital generation. The capital-constrained bank in Portugal may encounter limits in providing funding to the Brazilian operation -- a possibility that Moody's also considered challenging to Banif Brazil's franchise. The negative outlook on Banif Investimento's D- BFSR derives largely from the bank's substantial reliance on its commercial bank operations in both Brazil and Portugal as sources of funding. Banif Investimento's stand-alone financial strength could be hurt by both the weakened financial performance and diminished funding availability from Banif Brazil and Banif Portugal. Moody's last rating action on both Banif Brazil and Banif Investimento took place on April 23, 2009, when it downgraded the bank's long-term GLC deposit rating to Ba2 from Ba1 and lowered the long-term Brazilian NSR to Aa3.br from Aa2.br. These actions were the result of the reduction of Banif - Banco Internacional do Funchal S.A.'s (Banif Portugal) BFSR and deposit and senior debt ratings on April 6, 2009. These ratings were also placed on review for downgrade. In the same action, Banif Brazil's and Banif Investimento's BFSRs were affirmed at D-. Banif - Banco Internacional do Funchal (Brasil) S.A. is headquartered in Sao Paulo, Brazil. As of June 2009, the bank had total assets of approximately BRL.8 billion (US$937 million) and equity of BRL32 million (US$68 million). Banif Banco de Investimento (Brasil) S.A. is headquartered in Sao Paulo, Brazil. As of June 2009, the bank had total assets of approximately R$865 million (US$443 million) and equity of BRL04 million (US$53 million). The specific ratings changes are: Banif - Banco Internacional do Funchal (Brasil) S.A.: * Long-term global local-currency deposit rating: downgraded to Ba3 from Ba2, with negative outlook * Long-term foreign-currency deposit rating: downgraded to Ba3 from Ba2, with negative outlook * Long-term Brazilian national scale deposit rating: downgraded to A2.br from Aa3.br, with negative outlook * Bank financial strength rating at D-: outlook changed to negative from stable Banif Banco de Investimento (Brasil) S.A.: * Long-term global local-currency deposit rating: downgraded to Ba3 from Ba2, with negative outlook * Long-term foreign-currency deposit rating: downgraded to Ba3 from Ba2, with negative outlook * Long-term Brazilian national scale deposit rating: downgraded to A2.br from Aa3.br, with negative outlook * Bank financial strength rating at D-: outlook changed to negative from stable BANCO PECUNIA: Fitch Corrects Ratings ------------------------------------- This announcement corrects the version issued on 29 September 2009. The Short-term foreign currency Issuer Default Rating assigned to Societe Generale Brasil S.A., Banco Cacique S.A. and Banco Pecunia S.A.is 'F2' and not 'F3' as previously stated. Fitch Ratings has assigned ratings to SGBr, Cacique and Pecunia and affirmed others: SGBr -- Long-term Foreign Currency Issuer Default rating (IDR) assigned at 'BBB' with Stable Outlook -- Short-term Foreign Currency IDR assigned at 'F2' -- 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 'F2' -- 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 'F2' -- 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 centralised 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. BRASIL FOODS: Moody's Confirms 'Ba1' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service confirmed Brasil Foods S.A.'s (formerly named Perdigao) Ba1 corporate family rating, following the company's successful public offering of common shares raising approximately BRL5.2 billion of net proceeds to be used for debt reduction following the company's merger with Sadia S.A. At the same time, Sadia's senior unsecured notes due 2017 were upgraded to Ba1 from B2 since Brasil Foods was added as a joint and several guarantor of the notes in August, when the merger of the companies was approved by their shareholders. In addition, Sadia's B2 corporate family rating was withdrawn since the company will likely cease to exist as a separate legal entity. This rating action concludes the review for possible downgrade at Brasil Foods and review for possible upgrade at Sadia, both initiated on May 21, 2009. The outlook is stable. Rating confirmed: Brasil Foods's Corporate Family Rating: Ba1 Rating upgraded: -- US$250 million 6.875% in guaranteed senior unsecured notes due 2017 issued by Sadia Overseas Ltd. with an unconditional and irrevocable guarantee from Sadia and Brasil Foods: from B2 to Ba1 Rating withdrawn: -- Sadia's Corporate Family Rating "In addition to the successful equity issuance with proceeds to be used for debt reduction, the confirmation of the Ba1 rating for Brasil Foods also reflects the considerable synergy opportunities likely to result from the merger between Sadia and Brasil Foods, with solid growth prospects in its domestic and export markets, as well as the combined company's increased scale and attractive brand portfolio, with leading market positions in most of its product categories," explained Moody's VP Senior Analyst, Soummo Mukherjee. "We expect that Brasil Foods will delever as a result of debt amortization with cash and a normalization of margins in 2010 resulting from an improvement of volumes and prices as export markets gradually normalize. Pro-forma combined leverage without considering debt reduction with the equity issuance proceeds, as measured by Total Debt to EBITDA, was 6.0 times for the last twelve months ended June 30, 2009, and is expected to decrease to below 3.0 times by year-end 2010 without any significant benefits from synergies, which Moody's believe will have an increasing impact from 2011 onwards," added Mukherjee. Brasil Food's Ba1 rating is supported by its position as one of the largest food processors in the Brazilian market with leading market positions and close to 50% of sales derived from processed products with good diversification in at least six different segments (fresh poultry meat, specialty meats, milk, frozen foods, pork and beef fresh meats and processed dairy products). The Ba1 rating, however, is primarily constrained by the susceptibility of the company's revenues, earnings and cash flow to foreign exchange variation, export market disruptions, as well as to the volatility of dairy and grain commodity costs. In the near- to medium-term, the rating is also constrained by the integration challenges and the actual realization of the potential synergies with Sadia, which is largely dependent on final approval of the deal without any significant required asset disposals by Brazilian anti-trust authorities. According to Moody's estimates, even if CADE were to impose some restrictions to the merger, the losses in sales, and consequently in operational results would be far lower than the estimated more than BRL 2 billion in net present value of synergies due to significant overlap in the administrative, commercial and distribution costs of the two companies. The stable outlook is based on the company's successful equity offering which significantly improved its liquidity and will allow the company to continue to reduce debt and improve credit metrics to a level more commensurate with its Ba1 rating category. Although unlikely in the near-term, upward rating pressure on the ratings or outlook would require evidence that the company is able to capture the expected synergies with Sadia, leading to sustainable improvement in EBITDA margins, which have averaged 12.5% for the last five years. The company's ability to increase the revenue share of packaged products (currently 48.5%) and show more stable and sustainable margins would also be an important consideration for positive rating momentum. Quantitatively, an improvement in the outlook or rating would require sustainable Total Debt to EBITDA of approximately 3.0 times (as of the last twelve months ending June 30, 2009, pro-forma for expected debt reduction, total debt to EBITDA was 4.4 times) and CFO / Net Debt be maintained above 30% on a 3 year average (18% as of as of the last twelve months ending June 30, 2009, considering proceeds from the equity issuance in cash). All metrics are based on Moody's definitions and standard analytic adjustments. On the other hand, the ratings or outlook could see downward pressure if the company's EBITDA margin fail to approach its long term average of approximately 12% by the end of 2010 or if Total Debt to EBITDA leverage remains above 3.5 times at the end of 2010. Downward pressure could also be caused by a worse than expected decision by CADE that leads the company to incur substantial financial losses and impacts its ability to reduce leverage from current levels. In addition, the US$250 million guaranteed unsecured notes could be downgraded independent of a change in the Ba1 corporate family rating if the company substantially increases its reliance on secured debt or other debt likely to receive priority treatment in a debt restructuring, such as short-term trade finance lines (ACC/ACE). Moody's last rating action on Brasil Foods was on May 21, 2009, when Moody's placed Brasil Foods' Ba1 rating on review for possible downgrade. Moody's last rating action on Sadia was on May 21, 2009, when Moody's placed Sadia's B2 rating on review for possible upgrade. Headquartered in Santa Catarina, Brazil, Brasil Foods is one of the largest food processors in Latin America, with a focus on poultry, pork, beef, milk and processed products, including dairy. With net revenues of BRL 11.4 billion for the last twelve months ending on June 30, 2009, Perdigao is one of the leaders in the domestic market and exports around 31% of its sales to over 100 countries and 850 customers around the world. Sadia, headquartered in Sao Paulo, Brazil, is the largest slaughterer and distributor of poultry and pork products in Brazil, as well as the leading refrigerated and frozen protein products company. For the last twelve months ending on June 30, 2009, Sadia had net revenues of BRL 10.9 billion with 43% of revenues derived from exports to over 100 countries. EMPRESA BRASILEIRA: Concludes Series of Notes Offering in U.S. -------------------------------------------------------------- Empresa Brasileira de Aeronautica SA concluded the offering of a series of notes with the Securities and Exchange Commission, in the United States, as announced in a communique released September 24. The offering was coordinated by Deutsche Bank and Morgan Stanley and more than 200 investors participated, totaling a demand five times greater than the amount available. The operation fully achieved Embraer’s objectives. The company took in US$ 500 million at an annual interest rate of 6.375%, maturing on January 15, 2020. The issue price was US$ 99.081, resulting in a return of 6.5% for investors (yield). The interest on the Notes will be paid on April 8 and October 8, every year, starting in 2010. The net proceeds of this offering will be used for general corporate purposes, which could include the payment of short-term indebtedness. Headquartered in Brazil, Empresa Brasileira de Aeronautica SA (Embraer) -- http://www.embraer.com–- is a company engaged in the manufacture of aircrafts for commercial aviation, executive jet and defense and government purposes. The Company has developed a line of executive jets based on one of its regional jet platforms and launched executive jets in the entry-level, light, ultra-large and mid-light/mid-size categories, the Phenom 100/300 family, the Lineage 1000 and the Legacy 450/500 family, respectively. The Company supplies defense aircraft for the Brazilian Air Force based on number of aircraft sold, and sells aircraft to military forces in Europe, Asia and Latin America. In July 2008, the Company acquired a 40% interest owned by Liebherr Aerospace SAS in ELEB–Equipamentos Ltda (ELEB). ELEB is an aerospace system and component manufacturer, and its products include landing gear systems, hydraulics and electro-mechanical sub-assemblies, such as actuators, valves, accumulators and pylons. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2009, Bloomberg News said Embraer will lay off around 4,200 workers, which represents 20% of its 21,362 employees, and reduced its 2009 revenue forecast by 13% due to the global recession. JBS SA: Local Judge Freezes Assets Amid Bribery Probe ----------------------------------------------------- Lucia Kassai at Bloomberg News reports that a Brazilian federal judge froze some assets of JBS SA in the state of Rondonia as part of a probe into alleged bribery in the industry. According to the report, the federal prosecutor’s office said that assets of other meatpackers were also frozen as part of the yearlong investigation known as Operation Slaughter. JBS SA spokeswoman Vanessa Esteves, the report relates, said that the company hasn’t been notified of the decision. “The plant is very small in relation to their whole Brazilian operations,” Max Bueno, an analyst at brokerage Spinelli Corretora, said told the news agency in a telephone interview. "It’s unlikely to affect output. The downside is the negative publicity,” Mr. Bueno added. As reported in the Troubled Company Reporter-Latin America on June 18, 2009, Bloomberg News said that public prosecutor Reginaldo Trindade, who is leading the probe, said that JBS SA's Brazil unit in the Rondonia state is under federal police and prosecutors investigation for arranging for inspectors to turn a blind eye to their allegedly adding water to meats to boost weights. According to Reuters, the widespread corruption case has targeted several companies in Brazil's beef industry. Other meatpackers and leather companies including Bihl, Margen and Curtume Nossa Senhora Aparecida are also part of the investigation into the bribing of public officials, racketeering, corruption, fraud and collusion, an unnamed representative at the federal prosecutor's office told Reuters in an interview. About JBS SA JBS SA is one of the world's largest beef producers with operations in Brazil, the United States, Argentina, Australia and Italy. The company is the largest producer and exporter of fresh meat and meat by-products in Brazil, Argentina and Australian and the third largest in the USA. * * * As reported in the Troubled Company Reporter-Latin America on September 18, 2009, Standard & Poor's Ratings Services placed its ratings, including the 'B+' corporate credit ratings, on meat- processing companies JBS S.A and JBS USA LLC on CreditWatch with positive implications. MINERVA SA: S&P Gives Stable Outlook; Affirms 'CCC+' Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its outlook on Brazilian meat exporter Minerva S.A. to stable from negative. At the same time, S&P affirmed its 'CCC+' corporate credit rating on the company. "The outlook revision reflects S&P's expectation that Minerva will use the resources from its current equity offering, already partially completed, to reduce refinancing risks in the next couple of years," said Standard & Poor's credit analyst Piero Parolin. "It also reflects improved market conditions for the Brazilian meat industry and the benefits of these on Minerva's profits and credit measures." However, the low-speculative-grade ratings on Minerva reflect the company's large exposure to debt maturities this year and next, leveraged financial profile, and heavy interest burden--though this burden will likely improve if the company's debt management initiatives are successful. The ratings also incorporate Minerva's dependence on the successful ramp-up of expansion and greenfield meat projects and of Minerva Dawn Farms, Minerva's joint venture in food services with Dawn Farms Food (not rated), to strengthen its cash flows. S&P still view these cash flows as low compared with the company's debt burden. S&P also consider Minerva's exposure to the volatile, working-capital-intensive, and competitive global meat industry. These negative rating factors are partially mitigated by Minerva's increasing geographic diversification, its move into higher-margin businesses through MDF, and some operating flexibility to produce "made-to-order" products due to its higher capacity for deboning than for slaughtering. S&P also acknowledges that the company has already concluded its investments in expansion projects, allowing it to report lower capital expenditures in the medium term. SOCIETE GENERALE: Fitch Corrects Ratings ----------------------------------------- This announcement corrects the version issued on 29 September 2009. The Short-term foreign currency Issuer Default Rating assigned to Societe Generale Brasil S.A., Banco Cacique S.A. and Banco Pecunia S.A.is 'F2' and not 'F3' as previously stated. Fitch Ratings has assigned ratings to SGBr, Cacique and Pecunia and affirmed others: SGBr -- Long-term Foreign Currency Issuer Default rating (IDR) assigned at 'BBB' with Stable Outlook -- Short-term Foreign Currency IDR assigned at 'F2' -- 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 'F2' -- 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 'F2' -- 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 centralised 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. ========================== C A Y M A N I S L A N D S ========================== ACM ACTIVE: Creditors' Proofs of Debt Due on October 14 ------------------------------------------------------- The creditors of ACM Active Corporate – Class C Sub-Fund are required to file their proofs of debt by October 14, 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: John Sutlic c/o Kim Charaman Telephone: (345) 949-8455 Facsimile: (345) 949-8499 Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 ACM ACTIVE: Creditors' Proofs of Debt Due on October 14 ------------------------------------------------------- The creditors of ACM Active Corporate Fund are required to file their proofs of debt by October 14, 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: John Sutlic c/o Kim Charaman Telephone: (345) 949-8455 Facsimile: (345) 949-8499 Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 ACM US: Creditors' Proofs of Debt Due on October 14 --------------------------------------------------- The creditors of ACM US Credit Total Return Subfund are required to file their proofs of debt by October 14, 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: John Sutlic c/o Kim Charaman Telephone: (345) 949-8455 Facsimile: (345) 949-8499 Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 ACM YEN: Creditors' Proofs of Debt Due on October 14 ---------------------------------------------------- The creditors of ACM Yen Sub-Fund are required to file their proofs of debt by October 14, 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: John Sutlic c/o Kim Charaman Telephone: (345) 949-8455 Facsimile: (345) 949-8499 Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 ALTERRA LUTON: Creditors' Proofs of Debt Due on October 15 ---------------------------------------------------------- The creditors of Alterra Luton Holdings, Ltd. are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 28, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ANGLIAN SELECT: Creditors' Proofs of Debt Due on October 15 ----------------------------------------------------------- The creditors of Anglian Select Commodities Fund Limited are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 27, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands AUSTRALIS LTD: Shareholder to Receive Wind-Up Report on Oct. 15 --------------------------------------------------------------- The shareholder of Australis Ltd. will receive, on October 15, 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: Scott Aitken c/o Sylvia Lewis Telephone: 949-7755 Facsimile: 949-7634 P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands Telephone: 949-7755 Facsimile: 949-7634 BLACK TOWER: Creditors' Proofs of Debt Due on October 15 -------------------------------------------------------- The creditors of Black Tower Capital Feeder Fund Limited are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 27, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BLACK TOWER: Creditors' Proofs of Debt Due on October 15 -------------------------------------------------------- The creditors of Black Tower Capital Fund Limited are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 27, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BLUE RIDGE: Creditors' Proofs of Debt Due on October 14 ------------------------------------------------------- The creditors of Blue Ridge Holdings Limited are required to file their proofs of debt by October 14, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on September 3, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BLUEHAVEN MASTER: In Liquidation; Final Meeting on October 30 ------------------------------------------------------------- Bluehaven Master Fund Limited has been placed in Voluntary Liquidation under The Companies (Amendment) Law, 2007. The final meeting of the shareholders of the company will be held at the offices of Close Brothers (Cayman) Limited, 4th Floor Harbour Place, George Town, Grand Cayman, on October 30, 2009, at 9:30 a.m. The agenda at the meeting are: 1. To consider and if thought fit, approve the voluntary liquidators’ final report and accounts, including the conduct of the liquidation and the remuneration of the liquidators. 2. To authorize the retention of the records of the company, for a period of five years from the dissolution of the company, after which they may be destroyed. John Sutlic has been appointed as Joint Voluntary Liquidator. Contact for inquiries: Kim Charaman Tel: (345) 949 8455 Fax: (345) 949 8499 Address for service: Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, Grand Cayman KYI-1102 BLUEHAVEN LIMITED: In Liquidation; Final Meeting on October 30 -------------------------------------------------------------- Bluehaven Limited has been placed in Voluntary Liquidation under The Companies (Amendment) Law, 2007. The final meeting of the shareholders of the company will be held at the offices of Close Brothers (Cayman) Limited, 4th Floor Harbour Place, George Town, Grand Cayman, on October 30, 2009, at 10:30 a.m. The agenda at the meeting are: 1. To consider and if thought fit, approve the voluntary liquidators’ final report and accounts, including the conduct of the liquidation and the remuneration of the liquidators. 2. To authorize the retention of the records of the company, for a period of five years from the dissolution of the company, after which they may be destroyed. John Sutlic has been appointed as Joint Voluntary Liquidator. Contact for inquiries: Kim Charaman Tel: (345) 949-8455 Fax: (345) 949-8499 Address for service: Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, Grand Cayman KYI-1102 CHAMPLAIN LIMITED: Shareholder to Hear Wind-Up Report on Oct. 15 ---------------------------------------------------------------- The shareholder of Champlain Limited will receive, on October 15, 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: Scott Aitken c/o Sylvia Lewis Telephone: 949-7755 Facsimile: 949-7634 P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands Telephone: 949-7755 Facsimile: 949-7634 DB JASMINE NO. 2: Creditors' Proofs of Debt Due on October 15 ------------------------------------------------------------- The creditors of DB Jasmine No. 2 (Cayman) Limited are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 25, 2009. The company's liquidator is: Jeremy Simon Spratt KPMG LLP, 8 Salisbury Square London, EC4Y 8BB Jacqueline Edwards Telephone: +44 (0) 20 7311 8563 Facsimile: +44 (0) 20 7694 3533 P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-949-4800 Facsimile: 345-949-7164 DKR NEUTRINO: Creditors' Proofs of Debt Due on October 12 --------------------------------------------------------- The creditors of DKR Neutrino Fund Ltd. are required to file their proofs of debt by October 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 20, 2009. The company's liquidator is: Richard Finlay Telephone: (345) 949-1040 Facsimile: (345) 949-1048 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands DKR NEUTRINO: Creditors' Proofs of Debt Due on October 12 --------------------------------------------------------- The creditors of DKR Neutrino Holding Fund Ltd. are required to file their proofs of debt by October 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 20, 2009. The company's liquidator is: Richard Finlay Telephone: (345) 949-1040 Facsimile: (345) 949-1048 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands DKR OVERLAY: Creditors' Proofs of Debt Due on October 12 -------------------------------------------------------- The creditors of DKR Overlay Co. are required to file their proofs of debt by October 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 20, 2009. The company's liquidator is: Richard Finlay Telephone: (345) 949-1040 Facsimile: (345) 949-1048 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands DKR RELATIVE: Creditors' Proofs of Debt Due on October 12 --------------------------------------------------------- The creditors of DKR Relative Value Plus Fund Ltd. are required to file their proofs of debt by October 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 20, 2009. The company's liquidator is: Richard Finlay Telephone: (345) 949-1040 Facsimile: (345) 949-1048 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands DKR SOLSTICE: Creditors' Proofs of Debt Due on October 12 --------------------------------------------------------- The creditors of DKR Solstice Fund Ltd. are required to file their proofs of debt by October 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 20, 2009. The company's liquidator is: Richard Finlay Telephone: (345) 949-1040 Facsimile: (345) 949-1048 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands DKR SOLSTICE: Creditors' Proofs of Debt Due on October 12 --------------------------------------------------------- The creditors of DKR Solstice Holding Fund Lstd. are required to file their proofs of debt by October 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 20, 2009. The company's liquidator is: Richard Finlay Telephone: (345) 949-1040 Facsimile: (345) 949-1048 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands EURUS LTD: Shareholder to Hear Wind-Up Report on October 15 ----------------------------------------------------------- The shareholder of Eurus Ltd will receive, on October 15, 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: Scott Aitken c/o Sylvia Lewis Telephone: 949-7755 Facsimile: 949-7634 P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands Telephone: 949-7755 Facsimile: 949-7634 GMFF CASTOR: Creditors' Proofs of Debt Due on October 14 -------------------------------------------------------- The creditors of GMFF Castor Fund are required to file their proofs of debt by October 14, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 26, 2009. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands INQUAM BROADBAND: Creditors' Proofs of Debt Due on October 15 ------------------------------------------------------------- The creditors of Inquam Broadband Holding Limited are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 18, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands IRONBOUND ASIA: Members' Final Meeting Set for October 14 --------------------------------------------------------- The members of Ironbound Asia Overseas Ltd. will hold their final meeting, on October 14, 2009, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Bernadette Bailey-Lewis Telephone: (345) 946-7665 Facsimile: (345) 946-7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 LEEWARD OFFSHORE: Creditors' Proofs of Debt Due on October 14 ------------------------------------------------------------- The creditors of Leeward Offshore Canadian Income Fund are required to file their proofs of debt by October 14, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 3, 2009. The company's liquidator is: John Sutlic c/o Kim Charaman Telephone: (345) 949-8455 Facsimile: (345) 949-8499 Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 MISATO ASSET: Creditors' Proofs of Debt Due on October 14 --------------------------------------------------------- The creditors of Misato Asset Management are required to file their proofs of debt by October 14, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 26, 2009. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 MUXAXAS LIMITED: In Liquidation; Final Meeting Held October 2 ------------------------------------------------------------- Muxaxas Limited has been placed in Voluntary Liquidation under The Companies Law (2007 Revision). Pursuant to Section 145 of the Companies Law, the final general meeting of the Company was held at 4th Floor, FirstCaribbean House, Grand Cayman, Cayman Islands, on October 2, 2009, for the purpose of presenting to the members an account of the winding up of the Company and giving any explanation. Eagle Holdings Ltd. serves as the Company's Voluntary Liquidator. The address of the liquidator is: c/o Barclays Private Bank & Trust (Cayman) Limited 4th Floor, FirstCaribbean House P.O. Box 487, Grand Cayman KY1-1106 NINTH WAVE: Shareholders' Final Meeting Set for October 16 ---------------------------------------------------------- The shareholders of Ninth Wave Global Emerging Markets Fund (Offshore) Ltd. will hold their final meeting, on October 16, 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 Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands PAGIA INVESTMENTS: Creditors' Proofs of Debt Due on October 14 -------------------------------------------------------------- The creditors of Pagia Investments Limited are required to file their proofs of debt by October 14, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 20, 2009. The company's liquidator is: Giannakis Ermogenous Philip Sutcliffe Trident Trust Company (Cayman) Limited Telephone: (345) 949-0880 Facsimile: (345) 949-0881 P.O. Box 847, George Town Grand Cayman KY1-1103 PB CAPITAL: Creditors' Proofs of Debt Due on October 15 ------------------------------------------------------- The creditors of PB Capital Corporation are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 31, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands PB CAPITAL: Creditors' Proofs of Debt Due on October 15 ------------------------------------------------------- The creditors of PB Capital Corporation 2002-1 are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 31, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands PHOENIX JAPAN: Creditors' Proofs of Debt Due on October 15 ---------------------------------------------------------- The creditors of Phoenix Japan Master Fund Limited are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 27, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands PHOENIX JAPAN: Creditors' Proofs of Debt Due on October 15 ---------------------------------------------------------- The creditors of Phoenix Japan Feeder Fund Limited are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 27, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands PULSAR RESOURCE: Creditors' Proofs of Debt Due on October 14 ------------------------------------------------------------ The creditors of Pulsar Resource International are required to file their proofs of debt by October 14, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 13, 2009. The company's liquidator is: Stuart Cory PO Box 218867, Houston, TX 77218 REDWOOD CAPITAL: Creditors' Proofs of Debt Due on October 15 ------------------------------------------------------------ The creditors of Redwood Capital X Ltd are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 24, 2009. The company's liquidators are: Scott Aitken Connan Hill P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands c/o Sylvia Lewis Telephone: 949-7755 Facsimile: 949-7634 P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands SCIELE PHARMA: Creditors' Proofs of Debt Due on October 15 ---------------------------------------------------------- The creditors of Sciele Pharma Cayman Ltd. are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on September 1, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SICHUAN AIRBUS: Creditors' Proofs of Debt Due on October 14 ----------------------------------------------------------- The creditors of Sichuan Airbus Leasing Limited are required to file their proofs of debt by October 14, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 31, 2009. The company's liquidator is: Darren Riley c/o Ellen J. Christian Telephone: 345 945-9208 Facsimile: 345 945-9210 c/o BNP Paribas Bank & Trust Cayman Limited 3rd Floor Royal Bank House, Shedden Road George Town, Grand Cayman SP CAYMAN: Creditors' Proofs of Debt Due on October 15 ------------------------------------------------------ The creditors of SP Cayman Ltd. are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 31, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ST LTD: Creditors' Proofs of Debt Due on October 15 --------------------------------------------------- The creditors of ST Ltd. are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on September 3, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands STERLING STAMOS: Members' Final Meeting Set for October 14 ---------------------------------------------------------- The members of Sterling Stamos Liquidity (Offshore) Fund, Ltd. will hold their final meeting, on October 14, 2009, at 3:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Bernadette Bailey-Lewis Telephone: (345) 946-7665 Facsimile: (345) 946-7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 THAMES RIVER: Creditors' Proofs of Debt Due on October 15 --------------------------------------------------------- The creditors of Thames River Argentum Fund Limited are required to file their proofs of debt by October 15, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on September 2, 2009. The company's liquidator is: Ian Stokoe c/o Jodi Jones Telephone: (345) 914-8694 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands VANDERBILT CDO: Creditors' Proofs of Debt Due on October 14 ----------------------------------------------------------- The creditors of Vanderbilt CDO Holding Company are required to file their proofs of debt by October 14, 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: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands VANDERBILT SPECIAL: Creditors' Proofs of Debt Due on October 14 --------------------------------------------------------------- The creditors of Vanderbilt Special Opportunities Holding Company are required to file their proofs of debt by October 14, 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: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands * CAYMAN ISLAND: Gets OK From UK to Obtain CI$50MM Bailout Loan --------------------------------------------------------------- Bankrupt Cayman Islands confirmed that it has finally secured permission from the UK to obtain a CI$50 million (GBP38 million) bail-out loan to plug a 35pc-40pc collapse in revenue this year, Telegraph.uk. reports. The report relates that the island's government has also signaled that it is ready to cave into UK conditions on slashing government expenditure and an independent report on reform of its tax system that could see it start to impose direct levies to obtain further loans worth CI$229 million. According to the report, the Cayman Islands authorities claim that the UK has backtracked on stricter original proposals that insisted on direct taxes. "There will be no community enhancement fee now, no income tax now, no property tax now, no death tax now," the report quoted William McKeeva Bush, leader of government business. But this could change, suggesting the islands have already begun to consider new ways of raising tax revenue, Mr. Bush added. The report notes that although the loans are commercially-funded, Britain would be likely to end up footing the bill in the event of a default by the jurisdiction. The report relates the Foreign Office is understood to be concerned that the Cayman Islands could trade on Britain's reputation to secure loans that it cannot afford -- making its approval for the loan a tacit guarantee. The Cayman Islands, the report says, has so far resisted the idea of direct taxation of its residents and companies, arguing that this would jeopardize its livelihood as one of the world's biggest financial centers. The report relates that Tony Travers, director of the Cayman Islands Financial Services Association, has been on an aggressive public relations offensive in recent weeks, insisting that the islands were being unfairly victimized as tax shelters. Critics, Telegraph.uk. says, find it hard to swallow the notion that the islands already have a fully transparent financial system. However, the report relates, Mr. Travers dismissed the idea that anyone – such as a journalist or member of the public -- should get access to company records. The report points out Andrew Watt, managing director of tax at Alvarez & Marsal, said that reform in the Cayman Islands would make hedge funds likely to take their headquarters elsewhere. "It is becoming a much, much smaller world for tax havens, but there are still other places for companies to go," the report quoted Mr. Watt as saying. =============== C O L O M B I A =============== ECOPETROL SA: Discloses Exchange Offer Results ---------------------------------------------- Ecopetrol S.A. disclosed the results of its offer to exchange registered 7.625% Notes due 2019 for up to US$$1,500,000,000 aggregate principal amount of its 7.625% Notes due 2019, upon the terms and subject to the conditions described in the prospectus dated September 3, 2009. The Exchange Offer expired on Friday, October 2, 2009, and it will not be extended. Results of the Exchange Offer: Principal Principal CUSIP No. ISIN No. Amount of Amount of CUSIP Nos. ISIN Nos. of of Old Notes New Notes of Old Notes of Old Notes New Notes New Notes Tendered to be Issued ------------ ------------ --------- ------------ -------- ------------ 279158AA7 US279158AA73 279158AB5 US279158AB56 U.S. U.S. (Rule 144A) (Rule 144A) $531,492,000 $1,492,541,000 (Rule 144A) P3661PAA9 USP3661PAA95 U.S. (Reg. S) (Reg. S) $961,049,000 (Reg. S) The company will not receive any proceeds from the Exchange Offer. The terms of the New Notes to be issued are identical to the Old Notes, except for the transfer restrictions and registration rights relating to the Old Notes. The company expects to deliver the New Notes on or about October 7, 2009. The company will apply to list the New Notes on the New York Stock Exchange. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the New Notes, nor have they determined if the Prospectus is truthful or complete. Any representation to the contrary is a criminal offense. About Ecopetrol S.A. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. under the symbol ECOPETROL. Colombia owns 90% of Ecopetrol. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined- products. * * * As reported in the Troubled Company Reporter-Latin America on July 15, 2009, Fitch Ratings assigned a 'BB+' rating to Ecopetrol S.A.'s proposed issuance of at least US$1 billion senior unsecured notes due 2019. Proceeds will be used for investments and general corporate purposes. According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. As reported in the Troubled Company Reporter-Latin America on September 7, 2009, Fitch Ratings affirmed Colombia's sovereign ratings: -- Long-term foreign currency Issuer Default Rating at 'BB+'; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BBB-'; -- Outstanding senior unsecured debt at 'BB+'; -- Country ceiling at 'BBB-'. ECOPETROL SA: To Invest US$2.5 Billion in Peru With KNOC -------------------------------------------------------- Isabel Guerra at LivingPeru reports that Ecopetrol SA and Korea's National Oil Company plan to invest more than US$2.5 billion in Peru during the next eight years, in projects related to hydrocarbons. The report relates that both companies expect to increase their production up to 50,000 barrels of crude oil and gas in Peru by the year 2016, starting from the actual 14,000. According to the report, the society purchased local Petro-Tech by US $900 millions in January, which was its first operation in Peru. The report notes that the purchase is part of the internationalization plans of the Colombian firm, and of their strategy to reach a production of one million of barrels per day in 2015. Petro-Tech, the report says, owns 11 blocks in Peru -one already producing and 10 under exploration-- that cover an area of 9,5 millions of hectares altogheter. About Ecopetrol S.A. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. under the symbol ECOPETROL. Colombia owns 90% of Ecopetrol. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined- products. * * * As reported in the Troubled Company Reporter-Latin America on July 15, 2009, Fitch Ratings assigned a 'BB+' rating to Ecopetrol S.A.'s proposed issuance of at least US$1 billion senior unsecured notes due 2019. Proceeds will be used for investments and general corporate purposes. According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. As reported in the Troubled Company Reporter-Latin America on September 7, 2009, Fitch Ratings affirmed Colombia's sovereign ratings: -- Long-term foreign currency Issuer Default Rating at 'BB+'; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BBB-'; -- Outstanding senior unsecured debt at 'BB+'; -- Country ceiling at 'BBB-'. ============= J A M A I C A ============= AIR JAMAICA: Retains Board of Directors --------------------------------------- Air Jamaica Limited has temporarily retained its Board of Directors to guide the carrier through its divestment phase, leaner/Power 106 News reports. According to the report, Air Jamaica President and Chief Executive Officer, Bruce Nobles, confirmed that although the tenure of the Air Jamaica Board ended on September 30, the members would remain. The report relates that Mr. Nobles revealed that the finance minister, Audley Shaw, who has portfolio responsibility for the debt-riddled airline, asked the members to remain. The Gleaner notes that members include Omar Parkins, Dennis Lalor, Richard Byles, Carolyn Hayle and Wilfred Bagaloo. Prime Minister Bruce Golding, the report recalls, told parliament that the negotiating partner completed its due diligence on September 12 and cabinet will shortly make its decision and advise Parliament about the airline’s divestment. As reported in the Troubled Company Reporter-Latin America on August 20, 2009, Jamaica Observer said that the sale of Air Jamaica Limited will likely cost more than US$100 million (JM$8.9 billion), but will result in savings in the short term. The report relates the costs will relate to staff and administrative expenses, but also include non-current liabilities. 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: Talks With Trade Unions Hit Rough "Patch" ------------------------------------------------------ Talks between Air Jamaica Limited's management and trade unions concerning job cuts appear to have hit a rough patch, RadioJamaica reports. The report relates that the Bustamante Industrial Trade Union is crying foul over what it says are discrepancies in the criteria being used to identity workers who will be laid off. According to the report, Kavon Gayle, BITU President-General, said that the process lacks transparency. "Some of our members have been placed on a list that we're raising questions about. What we've indicated to the company, in no uncertain terms, is that we intend to ensure the fairness and transparency of the exercise and that all valid discrepancies that are brought to our attention will be aggressively pursued with the company," the report quoted Mr. Gayle as saying. RadioJamaica notes that Mr. Gayle said that it appeared that management personnel at Air Jamaica have been excluded from the staff cuts. "Despite the pressure, only some workers in Air Jamaica have been continuously called upon to make sacrifices (and) the lay off is one such additional sacrifice. But the same level of sacrifice has not been demonstrated by the senior management grouping of the organization and this is a tremendous concern to the BITU because there must be some shared sacrifices," Mr. Gayle added. 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). CABLE & WIRELESS: LIME Pumps JM$670 Million Into Cell Sites ----------------------------------------------------------- Lime Jamaica (formerly Cable & Wireless Jamaica), a unit of Cable and Wireless plc, Jamaica is pumping JM$670 million into 70 cell sites outside the capital, covering 12 parishes, Jamaica Gleaner reports. The report relates that the company said the sites will expand network coverage but also boost "overall service quality as several existing cell sites will be bolstered to accommodate additional call traffic". "The aggressive build out is being facilitated, in part, by a tower-sharing agreement which LIME brokered with Claro in July of this year," the company said in a release obtain by the news agency. According to the report, the top three mobile providers in Jamaica are in a race for new broadband business. The report relates LIME, last year laid out JM$3 billion for its 3G wireless infrastructure. Its mobile broadband offerings began rolling out earlier this year. The new cell sites to be built or upgraded will be commissioned on a phased basis between October 2009 and March 2010, the report says. The Gleaner notes that LIME said the deal it has with Claro allows it to expand the reach of its mobile network "in a more cost- effective manner" but in a responsible way that mitigates impact on the environment. As reported in the Troubled Company Reporter-Latin America on July 24, 2009, The Jamaica Gleaner said LIME have struck a deal to share cell tower sites with Claro Jamaica; with both companies declaring it "landmark" agreement and a win for the environment. According to the report, LIME and Claro Jamaica's joint release said that the long-term contract requires each company to provide a matching number of cell towers across the island, which will increase the overall coverage footprint of both mobile providers. Lime (formerly Cable & Wireless Jamaica) -- http://home.cwjamaica.com/-- is a provider of national and international fixed line services. The company is owned 82% by Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica Digiport International Limited, a company which provides high speed data and other telecommunications services exclusively to freezone and offshore companies. About Cable & Wireless Headquartered in London, England, Cable & Wireless plc -- http://www.cw.com/-- is an international telecommunications company. The Company offers mobile, broadband and domestic and international fixed line services to homes, small and medium-sized enterprises, corporate customers and governments. It operates in 39 countries through four major operations in the Caribbean, Panama, Macau and Monaco & Islands. It operates through two businesses: International and Europe, Asia & US. Its International business operates full service telecommunications companies through four major operations in the Caribbean, Panama, Macau and Monaco and Islands. Its Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecom services across the United Kingdom, continental Europe, Asia and the United States. Its subsidiaries include Cable & Wireless UK, Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable & Wireless (Barbados) Ltd and Monaco Telecom SAM. * * * According to Bloomberg data, Cable & Wireless plc continues to carry Moody's "Ba3"long-term corporate family rating, "B1"senior unsecured debt rating and "Ba3"probability of default rating with a stable outlook. The company continues to Standard & Poor's "BB-"long-term foreign and local issuer credit ratings and "B" short-term foreign and local issuer credit ratings. JAMAICA PUBLIC SERVICE: Appoints Christopher Berry as New Director ------------------------------------------------------------------ Jamaica Public Service Company Limited has appointed Christopher Berry as Director of the company, RadioJamaica reports. According to the report, Mr. Berry's appointment took effect on September 30. The report relates that Mr. Berry replaced Audley Darmand who resigned on September 29. 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. JAMAICA PUBLIC SERVICE: Promises Cheaper Energy Rates ----------------------------------------------------- Roxborough-Wright at Jamaica Observer reports that Jamaica Public Service promised that cheaper energy bills will be implemented in the long run as it moves towards increasing its dependence on alternative fuel sources. "Our system is much better than what it used to be . . . this is not the first investment and it won't be the last . . . diversification will reduce fuel costs and lead to more foreign investment," the report quoted Tomofumi Fukuda, chairman of Marubeni TAQA Caribbean and the JPS, as saying. According to the report, JPSCO said that the commissioning of the expanded generating capacity represents an investment of US$8.5 million as well as the culmination of months of work on the plant. Prime Minister Bruce Golding, the report relates, said that his administration had taken the decision to shift the emphasis of the country's dependence on fossil fuels to natural gas and other alternatives. The use of the combined cycle technology -- one of the most efficient methods of converting fuel to electricity - would play a critical role in increasing efficiency and triggering lower rates, Mr. Golding added. 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. JAMAICA PUBLIC SERVICE: Increases Generating Capacity ----------------------------------------------------- The Jamaica Public Service Company Limited has boosted its ability to serve more customers, commissioning into service 10 additional megawatts of generating capacity at the Bogue Power Station in Montego Bay, Jamaica Information Service reports. According to the report, the project, undertaken at a cost of US$8.5 million forms part of JPSCO' generation expansion program. The report relates that with the additional capacity, Bogue plant is now the largest power generating point in the JPSCO system. The report notes that Vice President for Generation Expansion at the JPS, Valentine Fagan, in his remarks at the commissioning ceremony, said that the power company now has the facility to serve an additional 30,000 customers, while at the same time, achieve a US$5 million reduction in fuel cost per annum. "This additional 10 megawatts is not your plain 10 megawatts. It is one of the most efficient 10 megawatts to be added since the construction of this combined cycle unit," the report quoted Mr. Fagan as saying. Jamaica Information Service says that Prime Minister, the Hon. Bruce Golding, lauded JPSCO on the project and the technique used, noting that it will assist in maximizing the output of the Bogue power plant, and allow for easy conversion to natural gas in keeping with government objectives. 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. * JAMAICA: Government Revenues Drops by JM$10 Million ----------------------------------------------------- The Jamaican government's decline in revenues continues to worsen as latest data from the Ministry of Finance show revenues and grants more than JM$10 billion behind projection, RadioJamaica reports. The report relates that from April to August, JM$109 billion went into the Government's coffers. According to the report, the Finance Ministry had projected to collect JM$119.5 billion during the five month period. The report points out that the biggest fall was in tax revenue, down JM$8.4 billion, followed by non tax revenue which declined by JM$568 million. A further breakdown shows that collection from General Consumption Tax was JM$2.1 billion dollars below target, RadioJamaica adds. * * * According to Moody's, the country continues to hold a B1 foreign currency rating and a Ba2 local currency rating. =========== M E X I C O =========== STATE OF GUERRERO: Moody's Withdraws Issuer Ratings --------------------------------------------------- Moody's de Mexico has withdrawn issuer ratings for the State of Guerrero and debt ratings on associated transactions. Moody's has withdrawn these ratings for business reasons. These ratings and outlooks have been withdrawn: Issuer Ratings -- Global Scale Rating of Ba2: withdrawn -- Mexico National Scale Rating of A2.mx: withdrawn -- Stable Outlook: withdrawn Transaction Ratings -- Global Scale Rating of Baa3 assigned to MXN300 million Banorte loan (line of credit for municipalities of the State of Guerrero): withdrawn -- Mexico National Scale Rating of Aa3.mx assigned to MXN300 million Banorte loan (line of credit for municipalities of the State of Guerrero): withdrawn -- Global Scale Rating of Baa2 assigned to MXN127 million Banorte loan: withdrawn -- Mexico National Scale Rating of Aa2.mx assigned to MXN127 million Banorte loan: withdrawn -- Global Scale Rating of Baa2 assigned to MXN200 million Banobras loan: withdrawn -- Mexico National Scale Rating of Aa2.mx assigned to MXN200 million Banobras loan: withdrawn -- Global Scale Rating of Baa2 assigned to MXN650 million Dexia loan: withdrawn -- Mexico National Scale Rating of Aa2.mx assigned to MXN650 million Dexia loan: withdrawn -- Global Scale Rating of Baa2 assigned to MXN200 million Santander Serfin loan: withdrawn -- Mexico National Scale Rating of Aa2.mx assigned to MXN200 million Santander Serfin loan: withdrawn -- Global Scale Rating of Baa2 assigned to MXN500 million Scotia Inverlat loan: withdrawn -- Mexico National Scale Rating of Aa2.mx assigned to MXN500 million Scotia Inverlat loan: withdrawn -- Global Scale Rating of Baa2 assigned to MXN250 million BBVA Bancomer loan: withdrawn -- Mexico National Scale Rating of Aa2.mx assigned to MXN250 million BBVA Bancomer loan: withdrawn The last rating action was on 21 February of 2007, when the ratings of the line of credit for municipalities was assigned ======= P E R U ======= BANCO INTERNACIONAL: S&P Assigns 'BB+' Counterparty Credit Rating ----------------------------------------------------------------- On Oct. 2, 2009, Standard & Poor's Ratings Services assigned its 'BB+' long-term counterparty credit rating to Banco Internacional del Peru S.A. The outlook is stable. The rating mainly reflects the aggressive expansion strategy of Interbank's indirect parent, Bahamas-based holding company IFH Peru Ltd. (which could put pressure on Interbank's dividend policy), the bank's relatively hefty exposure to consumer lending, its weaker-than-average operating efficiency, the risks inherent in the Peruvian economy, and competitive pressures from larger banks. These weaknesses are partly mitigated by Interbank's good market position as Peru's fourth-largest bank, its strong retail franchise, and its good financial risk profile. The bank's financial strength is evidenced by: its sizable, stable, and low- cost deposit base -- the bank's main funding source; its high profit and liquidity levels; and healthy asset quality indicators, despite the more-adverse economic environment seen in Peru in 2009. Interbank's relatively large branch network (about 215 branches as of June 30, 2009) has allowed it to develop a solid retail franchise that support its good market position, which holds about 10% of total loans and 10% of total deposits in the Peruvian banking system as of June 30, 2009. Interbank has a strong focus on the retail lending, which accounts for about 50% of its loan portfolio (around $3.1 billion as of June 30, 2009) and around 65% of its financial income. The bank is Peru's leader in credit cards with a 21% market share, ranks second in terms of consumer loans, with a 21% market share, and fourth in residential mortgages, with about 11% market share as of June 30, 2009. Interbank also benefits from its $4.3 billion deposit base (93% of total liabilities, 137% of total loans, and 86% of total adjusted assets as of June 30, 2009). Although most of its deposits are short term, the bank enjoys a high level of liquidity--31.5% of total adjusted assets as of June 30, 2009. In addition, Interbank enjoys a high profit levels, as evidenced by its return on average assets and return on equity reaching 2.2x and 30.7%, respectively, in 2008 and 2.3x and 33.0%, respectively (according to annualized figures) as of June 30, 2009. In addition, the bank enjoys a healthy asset quality: nonperforming loans (NPLs) represented a low 1.76% of total loans, which compares relatively well (considering its higher presence in consumer lending) with the local financial system's average of about 1.6%. Further, its loan loss reserves-to-NPLs ratio reached a good 2.3x as of June 30, 2009. On the other hand, Interbank faces the risks inherent in the Peruvian economy, which still features relatively high levels of poverty, lack of formal structures, and stiff competition from larger banks such as Banco de Credito del Peru, Banco Continental S.A., and Scotiabank Peru. S&P expects the bank to continue to focus on growth, but with a more-conservative approach than in the past two years, given the more adverse economic environment (as already seen in the marginal growth of its loan portfolio in the first half of 2009). Intergroup Financial Services Corp. controls Interbank with an equity share of 99.3% as of June 30, 2009; about 0.7% of the bank's shares trade on the Lima Stock Exchange. Intergroup is, in turn, controlled by IFH Peru Ltd., with 72.1% of the group's shares. IFH is controlled by the Rodriguez-Pastor family. The stable outlook reflects S&P's expectation that Interbank will preserve its good market position despite the competition it faces in Peru's banking system, as it maintains high profitability, healthy asset quality, ample liquidity, and adequate capitalization in the next couple of years. Further consolidation of its competitive position and additional improvements in its loan portfolio mix and operating efficiencies could lead to a positive rating action. On the other hand, the ratings could be lowered if the bank's market position weakens or if its dividend policy becomes more aggressive, resulting in weaker capitalization. New Rating; CreditWatch/Outlook Action Banco Internacional del Peru - Interbank Counterparty Credit Rating BB+/Stable/-- BANCO INTERNACIONAL: S&P Assigns 'BB+' Counterparty Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it has assigned its 'BB+' long-term counterparty credit rating to Banco Internacional del Peru S.A. The outlook is stable. "The rating mainly reflects the aggressive expansion strategy of Interbank's indirect parent, Bahamas-based holding company IFH Peru Ltd. (which could put pressure on Interbank's dividend policy), the bank's relatively hefty exposure to consumer lending, its weaker-than-average operating efficiency, the risks inherent in the Peruvian economy, and competitive pressures from larger banks. These weaknesses are partly mitigated by Interbank's good market position as Peru's fourth-largest bank, its strong retail franchise, and its good financial risk profile. The bank's financial strength is evidenced by: its sizable, stable, and low- cost deposit base -- the bank's main funding source; its high profit and liquidity levels; and healthy asset quality indicators, despite the more-adverse economic environment seen in Peru in 2009," said Standard & Poor's credit analyst Sergio Fuentes. Interbank's relatively large branch network (about 215 branches as of June 30, 2009) has allowed it to develop a solid retail franchise that support its good market position, which holds about 10% of total loans and 10% of total deposits in the Peruvian banking system as of June 30, 2009. Interbank has a strong focus on the retail lending, which accounts for about 50% of its loan portfolio (around $3.1 billion as of June 30, 2009) and around 65% of its financial income. The bank is Peru's leader in credit cards with a 21% market share, ranks second in terms of consumer loans, with a 21% market share, and fourth in residential mortgages, with about 11% market share as of June 30, 2009. Intergroup Financial Services Corp. controls Interbank with an equity share of 99.3% as of June 30, 2009; about 0.7% of the bank's shares trade on the Lima Stock Exchange. Intergroup is, in turn, controlled by IFH Peru Ltd., with 72.1% of the group's shares. IFH is controlled by the Rodriguez-Pastor family. The stable outlook reflects S&P's expectation that Interbank will preserve its good market position despite the competition it faces in Peru's banking system, as it maintains high profitability, healthy asset quality, ample liquidity, and adequate capitalization in the next couple of years. "Further consolidation of its competitive position and additional improvements in its loan portfolio mix and operating efficiencies could lead to a positive rating action. On the other hand, the ratings could be lowered if the bank's market position weakens or if its dividend policy becomes more aggressive, resulting in weaker capitalization," Mr. Fuentes added. IFH PERU: Moody's Assigns 'Ba3' Global Currency Bond Rating ----------------------------------------------------------- Moody's Investors Service has assigned a Ba3 global scale foreign currency bond rating to IFH Peru Ltd.'s proposed 10-year senior debt issuance of approximately US$100 million. The rating outlook is stable. The rating is subject to receipt and review of final documentation related to the planned note program. The notes will be issued in two series: Series A, to be denominated and payable in US$, and Series B, to be denominated and payable in US$but linked to the Chilean inflation-indexed currency unit (Unidad de Fomento). The notes are to be sold under Regulation S of the Securities Act, listed on the Luxembourg stock exchange, and governed under New York Law. Moody's explained that the assignment of the Ba3 rating was based on these considerations: 1) robust dividend contributions expected for IFH under both expected and highly stressed earnings scenarios, reflecting the strong franchise value and financial metrics of IFH's main operating subsidiaries, particularly Interbank and Interseguro; 2) IFH's moderate debt levels and leverage currently as a stand-alone holding company; and 3) present and potential cash needs of the group's existing and start-up retail operations over the life of the financing. These operations are not likely to generate material dividends for the next several years. Moody's indicated that the Ba3 rating for the IFH notes is also anchored on the Ba1 stand-alone credit assessment (BCA) of Interbank, the group's largest earnings and dividend generator. However, Interbank is highly regulated by the Peruvian Superintendency of Banks, Insurance, and Pension Funds (SBS) and subject to minimum capital requirements that could affect the upstreaming of dividends to IFH. Moody's said that the two-notch differential between the Ba3 bond rating and the Ba1 BCA for the bank reflects the structural subordination of the holding company's bondholders to all liability holders of the operating companies, particularly bank depositors and insurance policy holders, and to all other creditors of the operating companies, given that the notes are not guaranteed by any of IFH's subsidiaries. Although the notes will be secured by a first priority lien on a portion of IFH's shares of the common stock of IFS, the holding for the financial services companies, Moody's said this collateral does not enhance its rating of the IFH notes and thus the rating agency views them as unsecured obligations of IFH. The notes will rank pari passu in right of payment with all of IFH's present and future obligations (other than obligations preferred by statute, such as tax and labor obligations) that are not otherwise expressly subordinated. The Ba3 rating for the IFH notes also takes into account the lack of restrictions on holding company dividends. Moody's said that this risk is not significantly mitigated by the transaction's modest financial covenants or restrictions on additional debt and new ventures. In that regard, Moody's noted that the Ba3 rating could come under downward pressure if IFH's stand alone liquidity weakens, either because of weak performance at the subsidiary level or because of higher than anticipated interest costs, such that interest coverage -- as measured by net dividends received relative to financial expenses -- falls below 3.0 times. Moody's also expects IFH to hold at least 12 months of annual debt service in cash or highly liquid securities at all times at the holding company level, in addition to the pre-funding of annual interest through the Payment Account as provided for in the bond documentation, in order to maintain adequate internal liquidity. IFH currently has moderate leverage, however, in light of expected debt service and other fixed charges, IFH would likely have limited ability to take on additional debt beyond the amounts available under the proposed program (up to US$150 million), said Moody's. Proceeds from the IFH notes are to be used to finance the expansion of IFH's retail operations which are organized under IFH Retail, a wholly-owned intermediate holding company. These operations include Supermercados Peruanos, a food and general merchandise retailer controlled by IFH since 2003, Tiendas Peruanas, a small department store chain that started operations in 2008, and Financiera Uno, a consumer finance company that will begin offering services to the public in the coming quarters. Incorporated in the Bahamas, IFH is also the ultimate holding company for a group of financial services companies, including Banco Internacional del Peru-Interbank, Peru's fourth largest bank, and Interseguro, the leading provider of annuities, the fastest growing product segment of the Peruvian insurance industry. The main challenges facing IFH in the near term center on the financial risks related to the group's increasing penetration of the retail segment in Peru in the context of the current economic environment. Peru's resilient performance through the global financial crisis, however, provides support for a gradual reversal of the downward growth trends experienced by the country during the first half of 2009. The IFH group is also well positioned in terms of risk management and distribution which will allow it to take advantage of more robust growth through its well established brands in the sectors in which it operates, said Moody's. IFH Peru Ltd reported unconsolidated assets of US$639 million, equity of $573.8 million, and $60.1 million in net come as of June 30, 2009. On a consolidated basis, the group reported total assets of US$ 6.4 billion, equity attributable to IFH of $566.6 million, and net income of $76.6 million. The group is majority owned and controlled by the Rodriguez Pastor family group with a 58.76% stake. These ratings have been assigned to IFH Peru Ltd.: * Unsecured senior debt: Ba3, with stable outlook ============= U R U G U A Y ============= ADMINISTRACION NACIONAL: S&P Cuts Corporate Credit Rating to 'B+' ----------------------------------------------------------------- On Oct. 2, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Uruguay's 100% state-owned fuel and cement company, Administracion Nacional de Combustibles Alcohol y Portland to 'B+' from 'BB-'. S&P also removed the ratings from CreditWatch Negative, where they were placed July 6, 2009. The outlook is stable. The downgrade follows S&P's review of ANCAP in light of its recent revised methodology for rating GREs. The downgrade also reflects certain deterioration of ANCAP's stand-alone credit profile (SACP) as a result of increasing debt, weakening liquidity, and strong projected capital expenditures. S&P has equalized its rating on ANCAP with its assessment of its SACP. S&P also believes there is a very high likelihood that the Oriental Republic of Uruguay (BB-/Stable/B) would provide timely and sufficient extraordinary support to ANCAP in the event of financial distress. The "very high" likelihood of support is based on S&P's assessment of ANCAP's very important role as Uruguay's sole petroleum importer, refiner, and supplier of refined products to Uruguay's distributors; and its very strong link with Uruguay, particularly in the budget-approval process, indebtedness authorization, and tax payments. ANCAP's SACP reflects a weak business risk profile and an aggressive financial risk profile. The ratings also incorporate S&P's expectations that ANCAP will maintain its monopoly position in Uruguay in the medium term. As of June 30, 2009, ANCAP had about $584 million in debt (unaudited figures), made up wholly of long-term supplier financing with Petroleos de Venezuela S.A. (PDVSA). Since mid-2005, ANCAP has imported most of its crude oil needs from PDVSA under a purchase agreement that involved long-term financing (15 years) for up to 25% of the amount of each shipment. As a result, ANCAP has paid down its financial debt with banks; as of the date of this report, the company had no bank debt. S&P expects cash flow measures, such as profitability, to fluctuate in tandem with refining margins. ANCAP plans to carry out large capital expenditures of about $120 million to $150 million during 2009 and about $220 million in 2010. The bulk of such capital expenditures will go toward new facilities at the refinery to reduce sulfur in diesel products and in capacity expansion and other improvements in the company's cement plants. S&P expects ANCAP to finance such capital expenditures partly with additional debt and partly with internal cash generation and existing liquidity sources. S&P considers ANCAP's liquidity position to be adequate, mainly because it is government owned and therefore has enhanced financial flexibility. As of June 30, 2009, ANCAP had cash holdings of about $70 million (unaudited figures), no bank debt, and a smooth maturity profile for PDVSA's supplier financing (about $30 million per year in principal maturities). However, S&P expects ANCAP to be free cash-flow negative in the next two to three years, which will create additional debt. As of June 30, 2009, ANCAP had about $200 million in past-due accounts receivables with Uruguay's state-owned power company Administracion Nacional de Usinas y Transmisiones Eléctricas, which could strengthen ANCAP's liquidity position. At the end of 2008, ANCAP entered into several collar contracts to hedge from crude-oil price volatility, for about 40% of its feedstock needs. Following the very strong decline in oil prices, particularly during the last quarter of 2008, those contracts resulted in large cash losses for ANCAP that would total about $40 million. S&P expects potential losses to be limited to premium payments, because the company renegotiated existing contracts to plain options. The stable outlook reflects the company's smooth debt maturity schedule and adequate financial flexibility that should allow ANCAP to cover its financial needs (including capital expenditure requirements). Nevertheless, the ratings could come under pressure if the company's SACP were to deteriorate significantly and/or S&P's perception of likelihood of extraordinary support from its owner changed. Ratings could benefit from an improvement in the company's SACP (which would require a total debt-to-EBITDA ratio consistently below 4x and a funds from operations-to-total debt ratio of more than 20%) or from positive sovereign rating movements. Downgraded; CreditWatch/Outlook Action Administracion Nacional de Combustibles Alcohol y Portland To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- ================= V E N E Z U E L A ================= CITGO PETROLEUM: Plans to Restart Corpus Christi Unit This Month ---------------------------------------------------------------- Citgo Petroleum Corp, a unit of Petroleos de Venezuela, is repairing a fire-damaged alkylation unit at its 163,000 barrel per day Corpus Christi, Texas, refinery for restart during October, Erwin Seba at Reuters reports, citing unnamed sources familiar with refinery operations. According to the report, citing Corpus Christi Caller-Times newspaper, the planned restart led the United Steelworkers union to ask the U.S. Occupational Safety and Health Administration to investigate the unit's safety ahead of the planned restart. As reported in the Troubled Company Reporter-Latin America on July 20, 2009, Reuters said Citgo Petroleum's alkylation unit was shuttered following a July 19 morning fire at its 163,000 barrel per day (bpd) Corpus Christi, Texas, refinery. The report, citing a Citgo filing with the Texas Commission on Environmental Quality, relates that nearly 4,000 pounds of hydrogen fluoride was discharged during the July 19 incident after a fire broke out in the unit. Reuters says that the campaign by the union and environmental groups to stop the use of hydrogen fluoride was said by the sources to be the reason for Citgo's push to get the alkylation unit back on line. The report relates the company fears a regulator may stop a shut hydrogen fluoride alkylation unit's return to operation. A separate Reuters report notes that Citgo Petroleum is cooperating with safety and environmental regulators as it rebuilds and repairs a fire-damaged alkylation unit at Corpus Christi. "All repairs, as well as the maintenance schedule to restart and restore operations, are being done in accordance with Citgo, industry and governmental standards and regulations," the company said in a statement obtained by the news agency. About Citgo Petroleum 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-'. PETROLEOS DE VENEZUELA: Buys Asset From ConocoPhillips ------------------------------------------------------ Petroleos de Venezuela acquired U.S. energy firm ConocoPhillips' share in a natural joint gas venture with Chevron Corp., UPI News reports, citing Agencia EFE SA news agency. According to the report, the offshore natural gas Deltana Platform is located in the Atlantic between the mouth of Venezuela's Orinoco River and the archipelagic nation Trinidad and Tobago in the southern Caribbean. The report notes that while PDVSA did not disclose the value of the transaction, the acquisition of ConocoPhillips' share in the development project will result in the establishment of a new joint venture to develop the Deltana Platform, with PDVSA having a controlling 61% of the new entity and California's Chevron the remaining 39%. PDVSA, the report relates, said that Deltana Platform's output will be 750 million cubic feet of natural gas per day, which will be shipped via a 186-mile natural gas pipeline to Sucre state's Gran Mariscal de Ayacucho Industrial Complex, currently under construction. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' PETROLEOS DE VENEZUELA: Refinery Complied W/ Safety Measures ------------------------------------------------------------ Petroleos de Venezuela, S.A. informed that the safety operations in the Puerto La Cruz Refinery, in the state of Anzoategui, comply with the national and international parameters for a reliable operation and the safety of all workers. The statement was made by Fernando Padron, general manager of Refining Eastern region, while greeting the staff on the 59th anniversary of the start of operations of this refining complex. The activation of the distillation unit DA1, designed originally to process 44,000 barrels per day of crude, took place on September 24, 1950. This center processes an average of 184 MBD, which guarantees the manufacture of products for the daily gasoline feed of 91 and 95 octane and diesel and jet, up to 8 MBD, which guarantee the stock and the commitment to consumers of eastern Venezuela, highlighted Mr. Padron. Obviously, operational processes must undergo previously a series of studies and Risk Analysis, as part of the Industrial Safety policy, which allows evaluating processes, systems and operations in a systemic manner, reducing subjectivity in the identification of critical areas and the relative importance of each unwanted event. Everything is under the criteria of multidisciplinary teams, explained the general manager. “Facilities, materials and safety equipment used in the Puerto La Cruz refining center comply with high quality standards, international certificates and approved by reputable entities such as PDVSA Intevep,” affirmed Mr. Padron. Similarly, the Venezuelan industry validates all its safety equipment through the Industrial Safety Foundation, Electricidad de Caracas and research departments of national universities. Clear Improvement In the last three years, labor benefits, prevention and safety measures have improved substantially for the physical protection of workers, as part of the value of the New Revolutionary and Socialist PDVSA, always concerned about human resources, highlighted Padron. The responsible and serious administration of the current management of Eastern Refining District can be seen in numerous operational and administrative environments, as opposed to what occurred in the Fourth Republic, where the labor rights of staff were not recognized, as they are in the Revolutionary government of President Hugo Chavez. The General Manager of the Eastern Refining district reminded that there was a recent aggressive process of incorporation of staff nationwide, with no discrimination. “Here in Puerto La Cruz he incorporated as many workers as were previously outsourced, who now enjoy labor justice”, said Mr. Padron. Mr. Padron also referred to the various works and refurbishing operations to provide proper and safe spaces during break time; as well as to offer ergonomic working and break rooms for gardeners, a waiting room for truck drivers, improvements in industrial diners, replacement of chairs in control rooms, as well as several new projects to remodel the diners in the buildings of Chaure and Guaraguao, as well as environmental projects. Other significant improvements have been made in the area of communications, for operational safety, in the optimal use of the vehicle fleet, contributions to the electric reliability in the Refinery and the Puerto La Cruz social district, with the installation of the new Alberto Lovera plant, apart from institutional agreements with local municipal and state governments, among other social actions. It is important to highlight that all labor requests made by the workers have received a proper response, and the results are clear. One action was the inventory and supply of high-quality boots suitable for electrical work. Currently, we are studying the request by the organization Vanguardia Obrera Socialista, to select one type of industrial footwear suitable for marine operations. An official statement will be made shortly. Unscheduled power outages in the Puerto La Cruz Refinery have also been dramatically reduced, in order to secure regular basic operations in this complex. Other actions have allowed us to save over Bs.5 million in maintenance, including the repair of vacuum trucks from incorporated contractors, which has led to a greater flexibility in the response time in this activity. The Manager of the Eastern refining district stated: “We have grown in quantity and quality because our payroll is now 3,566 workers, compared to 1,694 people registered by 2002. The figure includes the Puerto La Cruz Refinery, El Chaure and San Roque, incorporating now the management of the storage and loading terminal of the Jose Antonio Anzoategui complex, the Jose Industrial Condominium and the Upgrader in the Eastern region (formerly known as Petrozuata). This is a clear indication that there is a serious management and shared commitment with all workers, which is a responsible boost for the Revolution.” The management in Puerto La Cruz makes it possible to celebrate this new anniversary, strengthened by its workers and showing successful results in operational and industrial safety areas, “in line with revolutionary and sovereign principles of the New PDVSA”, concluded Mr. Padron. 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: Sees Stagnant Growth for 2010, President Chavez Says ----------------------------------------------------------------- Venezuela predicts very little economic growth in 2010, along with high inflation and low crude prices, Caribbean Net News reports, citing President Hugo Chavez. The report relates that President Chavez has previously said the government will be satisfied if Venezuela's economy grows at all this year after a sharp drop in world oil prices jolted the OPEC nation's finances. According to the report, the low estimate for growth in 2010 suggests the socialist government is pessimistic about the global economy. "As the base for our budget calculations we are estimating growth of 0.5%," the report quoted President Chavez as saying. The budget was based on an estimated oil price of US$40 per barrel, the same as an adjusted estimate this year, President Cahvez added. The report notes that Venezuela's economy shrank 2.4% in the second quarter, the first contraction in over five years. Many economists and the International Monetary Fund say Venezuela will suffer a worse contraction in 2010 while other Latin American countries start to recover from the global recession, the report relates. President Chavez, the report adds, said inflation for 2010 was expected to be as high as 22 percent, below current estimates for 2009 price rises but well above the original 12% the government forecast this 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 =============== * ECLAC & ILO See 8.5% Unemployment for LatAM & Caribbean in 2009 ----------------------------------------------------------------- Urban unemployment rates in Latin America and the Caribbean reached 8.5% in the second quarter of the year and could average the same at the end of the year, estimated ECLAC and ILO in a joint bulletin. This means that 2.5 million additional people will join the ranks of the urban unemployed, which would then reach 18.4 million, say the organizations in their second joint bulletin "The Employment Situation in Latin America and the Caribbean. Crisis in Labour Markets and Countercyclical Responses." The 8.5% estimate for 2009, calculated on the basis of a 1.9% drop in GDP this year, is slightly more optimistic than the forecast published in the first bulletin in June (between 8.7% and 9.1%) and is one percentage point higher than the unemployment rate in 2008 (7.5%). The adjustment of the estimate is due mainly to the fall in the participation rate during the first half of 2009 and which is expected to maintain throughout the year. This could be largely due "to a sense of discouragement as a result of scarce job opportunities in the context of the crisis". In this second bulletin, ECLAC and ILO analyze how the impact of the crisis has deepened in labor markets in the region during the first semester of this year and examine the progress made in public investment in infrastructure and emergency employment programs implemented to counteract its effects. They conclude that labor markets in the region continue suffering the impact of the international crisis and deteriorated even further in terms of employment levels during the second quarter of 2009, according to the latest available indicators from countries in the region. The bulletin asserts that regional unemployment reached 8.5% in the second quarter of 2009, up from the 7.7% registered during the same quarter last year. In addition, some indicators reveal a rise in labor informality, a weakening of social-security protected employment and a contraction of full-time jobs. "Youths have paid a high cost for the crisis or economic slowdown, given that unemployment among youths has increased significantly," says the bulletin. Nevertheless, both organizations see signs that the economic crisis already reached bottom in mid-year. In many countries, production has stopped declining and there are signs of an incipient recovery, partly due to the impact of countercyclical policies implemented there, which could prop up labor markets in the region during the fourth quarter. However, they stress that greater economic growth will not solve labor problems immediately. Recovering employment levels will lag behind economic activity, and will be gradual and heterogeneous in the different countries in the region. Labor demand and job creation will continue weak as well. ECLAC and ILO call on countries to redouble their efforts to stimulate decent job creation, strengthening the effectiveness of available instruments. Through this, they may advance in social inclusion and towards compliance of the Millennium Development Goals. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------------ ------- ACO ALTONA EALT3 BZ 80647079.55 -12603367.15 ACO ALTONA SA EAAON BZ 80647079.55 -12603367.15 ACO ALTONA-PREF EAAPN BZ 80647079.55 -12603367.15 ACO ALTONA-PREF EALT4 BZ 80647079.55 -12603367.15 ALL MALHA PAULIS GASC3 BZ 881202387.66 -501612577.9 ALL MALHA PAULIS GASC3B BZ 881202387.66 -501612577.9 ARTHUR LAN-DVD C ARLA11 BZ 21333792.82 -16295577.05 ARTHUR LAN-DVD P ARLA12 BZ 21333792.82 -16295577.05 ARTHUR LANG-RC C ARLA9 BZ 21333792.82 -16295577.05 ARTHUR LANG-RC P ARLA10 BZ 21333792.82 -16295577.05 ARTHUR LANG-RT C ARLA1 BZ 21333792.82 -16295577.05 ARTHUR LANG-RT P ARLA2 BZ 21333792.82 -16295577.05 ARTHUR LANGE ARLA3 BZ 21333792.82 -16295577.05 ARTHUR LANGE SA ALICON BZ 21333792.82 -16295577.05 ARTHUR LANGE-PRF ALICPN BZ 21333792.82 -16295577.05 ARTHUR LANGE-PRF ARLA4 BZ 21333792.82 -16295577.05 AZEVEDO AZEV3 BZ 58171856.05 -4288079.64 AZEVEDO E TRA-PR AZEVPN BZ 58171856.05 -4288079.64 AZEVEDO E TRAVAS AZEVON BZ 58171856.05 -4288079.64 AZEVEDO-PREF AZEV4 BZ 58171856.05 -4288079.64 B&D FOOD CORP BDFCE US 15779763 -588840 B&D FOOD CORP BDFC US 15779763 -588840 BALADARE BLDR3 BZ 141215707.17 -12257915.87 BOMBRIL BMBBF US 239716189.99 -242287717.11 BOMBRIL BOBR3 BZ 239716189.99 -242287717.11 BOMBRIL CIRIO SA BOBRON BZ 239716189.99 -242287717.11 BOMBRIL CIRIO-PF BOBRPN BZ 239716189.99 -242287717.11 4 BOMBRIL SA-ADR BMBPY US 239716189.99 -242287717.11 BOMBRIL SA-ADR BMBBY US 239716189.99 -242287717.11 BOMBRIL-PREF BOBR4 BZ 239716189.99 -242287717.11 BOMBRIL-RGTS PRE BOBR2 BZ 239716189.99 -242287717.11 BOMBRIL-RIGHTS BOBR1 BZ 239716189.99 -242287717.11 BOTUCATU TEXTIL STRP3 BZ 31385624.73 -9890708.41 BOTUCATU-PREF STRP4 BZ 31385624.73 -9890708.41 BUETTNER BUET3 BZ 86940610.88 -37817234.67 BUETTNER SA BUETON BZ 86940610.88 -37817234.67 BUETTNER SA-PRF BUETPN BZ 86940610.88 -37817234.67 BUETTNER SA-RT P BUET2 BZ 86940610.88 -37817234.67 BUETTNER SA-RTS BUET1 BZ 86940610.88 -37817234.67 BUETTNER-PREF BUET4 BZ 86940610.88 -37817234.67 CAF BRASILIA CAFE3 BZ 18218224.29 -631269432.16 CAF BRASILIA-PRF CAFE4 BZ 18218224.29 -631269432.16 CAFE BRASILIA SA CSBRON BZ 18218224.29 -631269432.16 CAFE BRASILIA-PR CSBRPN BZ 18218224.29 -631269432.16 CAMBUCI SA CAMBON BZ 87269252.24 -22493566.05 CAMBUCI SA CAMB3 BZ 87269252.24 -22493566.05 CAMBUCI SA-PREF CAMBPN BZ 87269252.24 -22493566.05 CAMBUCI SA-PREF CAMB4 BZ 87269252.24 -22493566.05 CAMBUCI SA-PREF CXDOF US 87269252.24 -22493566.05 CHIARELLI SA CCHI3 BZ 22274026.77 -44537138.21 CHIARELLI SA CCHON BZ 22274026.77 -44537138.21 CHIARELLI SA-PRF CCHPN BZ 22274026.77 -44537138.21 CHIARELLI SA-PRF CCHI4 BZ 22274026.77 -44537138.21 CHILESAT CO-ADR TL US 432460542.94 -44559657.55 CHILESAT CO-RTS CHISATOS CI 432460542.94 -44559657.55 CHILESAT CORP SA TELEX CI 432460542.94 -44559657.55 CIA PETROLIF-PRF 1CPMPN BZ 377602195.17 -3014291.72 CIA PETROLIF-PRF MRLM4 BZ 377602195.17 -3014291.72 CIA PETROLIF-PRF MRLM4B BZ 377602195.17 -3014291.72 CIA PETROLIFERA 1CPMON BZ 377602195.17 -3014291.72 CIA PETROLIFERA MRLM3 BZ 377602195.17 -3014291.72 CIA PETROLIFERA MRLM3B BZ 377602195.17 -3014291.72 CIMOB PART-PREF GAFP4 BZ 36817394.78 -33083086.54 CIMOB PART-PREF GAFPN BZ 36817394.78 -33083086.54 CIMOB PARTIC SA GAFON BZ 36817394.78 -33083086.54 CIMOB PARTIC SA GAFP3 BZ 36817394.78 -33083086.54 COMERCIAL PL-ADR SCPDS LI 146090772.51 -255079026.8 COMERCIAL PL-C/E COMEC AR 146090772.51 -255079026.8 COMERCIAL PLA-BL COMEB AR 146090772.51 -255079026.8 COMERCIAL PLAT-$ COMED AR 146090772.51 -255079026.8 CTM CITRUS SA CTMON BZ 38740523.05 -671039.81 CTM CITRUS- PR R CTPC2 BZ 38740523.05 -671039.81 CTM CITRUS-ADR CTMMY US 38740523.05 -671039.81 CTM CITRUS-COM R CTPC1 BZ 38740523.05 -671039.81 CTM CITRUS-PREF 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US 38740523.05 -671039.81 MARAMBAIA-PREF CTPC4 BZ 38740523.05 -671039.81 MINUPAR MNPR3 BZ 89611489.39 -20702110.72 MINUPAR SA MNPRON BZ 89611489.39 -20702110.72 MINUPAR SA-PREF MNPRPN BZ 89611489.39 -20702110.72 MINUPAR-PREF MNPR4 BZ 89611489.39 -20702110.72 MMX MINERACA-GDR XMM CN 1060478942.97 -123550800.05 MMX MINERACA-GDR MMXMY US 1060478942.97 -123550800.05 MMX MINERACA-GDR 3M11 GR 1060478942.97 -123550800.05 MMX MINERACAO TRES3 BZ 1060478942.97 -123550800.05 MMX MINERACAO MMXCF US 1060478942.97 -123550800.05 MMX MINERACAO MMXM3 BZ 1060478942.97 -123550800.05 NORDON MET NORD3 BZ 14029500.1 -17709728.15 NORDON MET-RTS NORD1 BZ 14029500.1 -17709728.15 NORDON METAL NORDON BZ 14029500.1 -17709728.15 NOVA AMERICA SA NOVA3B BZ 21287489 -183535527.21 NOVA AMERICA SA NOVA3 BZ 21287489 -183535527.21 NOVA AMERICA SA NOVAON BZ 21287489 -183535527.21 NOVA AMERICA SA 1NOVON BZ 21287489 -183535527.21 NOVA AMERICA-PRF 1NOVPN BZ 21287489 -183535527.21 NOVA AMERICA-PRF NOVAPN BZ 21287489 -183535527.21 NOVA AMERICA-PRF NOVA4 BZ 21287489 -183535527.21 NOVA AMERICA-PRF NOVA4B BZ 21287489 -183535527.21 PARMALAT LCSA3 BZ 331179097.84 -108537915.07 PARMALAT BR-RT C LCSA5 BZ 331179097.84 -108537915.07 PARMALAT BR-RT P LCSA6 BZ 331179097.84 -108537915.07 PARMALAT BRAS-PF LCSAPN BZ 331179097.84 -108537915.07 PARMALAT BRASIL LCSAON BZ 331179097.84 -108537915.07 PARMALAT-PREF LCSA4 BZ 331179097.84 -108537915.07 PARQUE TEM-DV CM PQT5 BZ 58692385.42 -188832203.73 PARQUE TEM-DV PF PQT6 BZ 58692385.42 -188832203.73 PARQUE TEM-RCT C PQTM9 BZ 58692385.42 -188832203.73 PARQUE TEM-RCT P PQTM10 BZ 58692385.42 -188832203.73 PARQUE TEM-RT CM PQTM1 BZ 58692385.42 -188832203.73 PARQUE TEM-RT PF PQTM2 BZ 58692385.42 -188832203.73 PET MANG-RECEIPT RPMG9 BZ 76852724.18 -212528966.16 PET MANG-RECEIPT RPMG10 BZ 76852724.18 -212528966.16 PET MANG-RIGHTS RPMG1 BZ 76852724.18 -212528966.16 PET MANG-RIGHTS RPMG2 BZ 76852724.18 -212528966.16 PET MANGUINH-PRF RPMG4 BZ 76852724.18 -212528966.16 PETRO MANGUIN-PF MANGPN BZ 76852724.18 -212528966.16 PETRO MANGUINHOS RPMG3 BZ 76852724.18 -212528966.16 PETRO MANGUINHOS MANGON BZ 76852724.18 -212528966.16 PROMAN PRMN3B BZ 12167222.17 -207882.19 PROMAN PRMN3 BZ 12167222.17 -207882.19 REII INC REIC US 15779763 -588840 RENAUXVIEW SA TXRX3 BZ 50909736.38 -79601048.99 RENAUXVIEW SA-PF TXRX4 BZ 50909736.38 -79601048.99 RIMET REEMON BZ 63757621.65 -107162239.91 RIMET REEM3 BZ 63757621.65 -107162239.91 RIMET-PREF REEM4 BZ 63757621.65 -107162239.91 RIMET-PREF REEMPN BZ 63757621.65 -107162239.91 RIOSULENSE SA RSUL3 BZ 56866478.19 -9053574.99 RIOSULENSE SA RSULON BZ 56866478.19 -9053574.99 RIOSULENSE SA-PR RSUL4 BZ 56866478.19 -9053574.99 RIOSULENSE SA-PR RSULPN BZ 56866478.19 -9053574.99 SANESALTO SNST3 BZ 24569561.13 -754460.51 SANSUY SNSY3 BZ 100279114.92 -45812488.77 SANSUY SA SNSYON BZ 100279114.92 -45812488.77 SANSUY SA-PREF A SNSYAN BZ 100279114.92 -45812488.77 SANSUY SA-PREF B SNSYBN BZ 100279114.92 -45812488.77 SANSUY-PREF A SNSY5 BZ 100279114.92 -45812488.77 SANSUY-PREF B SNSY6 BZ 100279114.92 -45812488.77 SCHLOSSER SCLO3 BZ 10818026.01 -65846678.92 SCHLOSSER SA SCHON BZ 10818026.01 -65846678.92 SCHLOSSER SA-PRF SCHPN BZ 10818026.01 -65846678.92 SCHLOSSER-PREF SCLO4 BZ 10818026.01 -65846678.92 SNIAFA SA SNIA AR 11489328.24 -840226.12 SNIAFA SA-B SDAGF US 11489328.24 -840226.12 SNIAFA SA-B SNIA5 AR 11489328.24 -840226.12 SOC COMERCIAL PL CAD IX 146090772.51 -255079026.8 SOC COMERCIAL PL CADN EO 146090772.51 -255079026.8 SOC COMERCIAL PL COME AR 146090772.51 -255079026.8 SOC COMERCIAL PL CADN SW 146090772.51 -255079026.8 SOC COMERCIAL PL SCDPF US 146090772.51 -255079026.8 SOC COMERCIAL PL CVVIF US 146090772.51 -255079026.8 STAROUP SA STARON BZ 31385624.73 -9890708.41 STAROUP SA-PREF STARPN BZ 31385624.73 -9890708.41 TECEL S JOSE FTSJON BZ 17924946.14 -18569451.23 TECEL S JOSE SJOS3 BZ 17924946.14 -18569451.23 TECEL S JOSE-PRF FTSJPN BZ 17924946.14 -18569451.23 TECEL S JOSE-PRF SJOS4 BZ 17924946.14 -18569451.23 TEKA TKTQF US 219773260.95 -306726075.74 TEKA TEKA3 BZ 219773260.95 -306726075.74 TEKA TEKAON BZ 219773260.95 -306726075.74 TEKA-ADR TEKAY US 219773260.95 -306726075.74 TEKA-ADR TKTQY US 219773260.95 -306726075.74 TEKA-ADR TKTPY US 219773260.95 -306726075.74 TEKA-PREF TKTPF US 219773260.95 -306726075.74 TEKA-PREF TEKAPN BZ 219773260.95 -306726075.74 TEKA-PREF TEKA4 BZ 219773260.95 -306726075.74 TELEBRAS SA TLBRON BZ 219200060.46 -3774997.87 TELEBRAS SA TBASF US 219200060.46 -3774997.87 TELEBRAS SA TELB3 BZ 219200060.46 -3774997.87 TELEBRAS SA-PREF TELB4 BZ 219200060.46 -3774997.87 TELEBRAS SA-PREF TLBRPN BZ 219200060.46 -3774997.87 TELEBRAS SA-RT TELB9 BZ 219200060.46 -3774997.87 TELEBRAS-ADR TBAPY US 219200060.46 -3774997.87 TELEBRAS-ADR TBX GR 219200060.46 -3774997.87 TELEBRAS-ADR TBASY US 219200060.46 -3774997.87 TELEBRAS-ADR TBRAY GR 219200060.46 -3774997.87 TELEBRAS-ADR RTB US 219200060.46 -3774997.87 TELEBRAS-ADR TBH US 219200060.46 -3774997.87 TELEBRAS-BLOCK TELB30 BZ 219200060.46 -3774997.87 TELEBRAS-CED C/E RCT4C AR 219200060.46 -3774997.87 TELEBRAS-CED C/E TEL4C AR 219200060.46 -3774997.87 TELEBRAS-CEDE BL RCT4B AR 219200060.46 -3774997.87 TELEBRAS-CEDE PF RCTB4 AR 219200060.46 -3774997.87 TELEBRAS-CEDE PF TELB4 AR 219200060.46 -3774997.87 TELEBRAS-CEDEA $ RCT4D AR 219200060.46 -3774997.87 TELEBRAS-CEDEA $ TEL4D AR 219200060.46 -3774997.87 TELEBRAS-CM RCPT TELE31 BZ 219200060.46 -3774997.87 TELEBRAS-CM RCPT RCTB31 BZ 219200060.46 -3774997.87 TELEBRAS-CM RCPT RCTB30 BZ 219200060.46 -3774997.87 TELEBRAS-CM RCPT TBRTF US 219200060.46 -3774997.87 TELEBRAS-CM RCPT RCTB32 BZ 219200060.46 -3774997.87 TELEBRAS-COM RT TELB1 BZ 219200060.46 -3774997.87 TELEBRAS-PF BLCK TELB40 BZ 219200060.46 -3774997.87 TELEBRAS-PF RCPT CBRZF US 219200060.46 -3774997.87 TELEBRAS-PF RCPT RCTB41 BZ 219200060.46 -3774997.87 TELEBRAS-PF RCPT TLBRUP BZ 219200060.46 -3774997.87 TELEBRAS-PF RCPT RCTB40 BZ 219200060.46 -3774997.87 TELEBRAS-PF RCPT TBAPF US 219200060.46 -3774997.87 TELEBRAS-PF RCPT TELE41 BZ 219200060.46 -3774997.87 TELEBRAS-PF RCPT RCTB42 BZ 219200060.46 -3774997.87 TELEBRAS-RCT RCTB33 BZ 219200060.46 -3774997.87 TELEBRAS-RCT PRF TELB10 BZ 219200060.46 -3774997.87 TELEBRAS-RECEIPT TLBRUO BZ 219200060.46 -3774997.87 TELEBRAS-RTS CMN RCTB1 BZ 219200060.46 -3774997.87 TELEBRAS-RTS CMN TCLP1 BZ 219200060.46 -3774997.87 TELEBRAS-RTS PRF RCTB2 BZ 219200060.46 -3774997.87 TELEBRAS-RTS PRF TLCP2 BZ 219200060.46 -3774997.87 TELEBRAS/W-I-ADR TBH-W US 219200060.46 -3774997.87 TELECOMUNICA-ADR 81370Z BZ 219200060.46 -3774997.87 TELEX-A TELEXA CI 432460542.94 -44559657.55 TELEX-RTS TELEXO CI 432460542.94 -44559657.55 TELMEX CORP SA CHILESAT CI 432460542.94 -44559657.55 TELMEX CORP-ADR CSAOY US 432460542.94 -44559657.55 TEXTEIS RENA-RCT TXRX10 BZ 50909736.38 -79601048.99 TEXTEIS RENA-RCT TXRX9 BZ 50909736.38 -79601048.99 TEXTEIS RENAU-RT TXRX2 BZ 50909736.38 -79601048.99 TEXTEIS RENAU-RT TXRX1 BZ 50909736.38 -79601048.99 TEXTEIS RENAUX RENXON BZ 50909736.38 -79601048.99 TEXTEIS RENAUX RENXPN BZ 50909736.38 -79601048.99 TRESSEM PART SA 1TSSON BZ 1060478942.97 -123550800.05 VARIG PART EM SE VPSC3 BZ 101177852.25 -318442006.32 VARIG PART EM TR VPTA3 BZ 49432124.18 -399290425.77 VARIG PART EM-PR VPSC4 BZ 101177852.25 -318442006.32 VARIG PART EM-PR VPTA4 BZ 49432124.18 -399290425.77 VARIG SA VARGON BZ 966298025.55 -4695211316.33 VARIG SA VAGV3 BZ 966298025.55 -4695211316.33 VARIG SA-PREF VAGV4 BZ 966298025.55 -4695211316.33 VARIG SA-PREF VARGPN BZ 966298025.55 -4695211316.33 WETZEL SA MWELON BZ 69983432.56 -6279264.91 WETZEL SA MWET3 BZ 69983432.56 -6279264.91 WETZEL SA-PREF MWET4 BZ 69983432.56 -6279264.91 WETZEL SA-PREF MWELPN BZ 69983432.56 -6279264.91 WIEST WISA3 BZ 39838113.86 -93371563.06 WIEST SA WISAON BZ 39838113.86 -93371563.06 WIEST SA-PREF WISAPN BZ 39838113.86 -93371563.06 WIEST-PREF WISA4 BZ 39838113.86 -93371563.06 *********** 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 * * *