/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/091022.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, October 22, 2009, Vol. 10, No. 209 Headlines A N T I G U A & B A R B U D A * ANTIGUA & BARBUDA: To Seek IMF Standby Accord A R G E N T I N A GVF CONSTRUCCIONES: Creditors' Proofs of Debt Due on March 15 INTERCOM EDITORIAL: Creditors' Proofs of Debt Due on December 1 KONY SA: Creditors' Proofs of Debt Due on November 20 LUGANO TOY'S: Creditors' Proofs of Debt Due on November 20 MEVACO SRL: Creditors' Proofs of Debt Due on November 20 NEDAR SA: Creditors' Proofs of Debt Due on December 10 SPORTGAME SRL: Creditors' Proofs of Debt Due on December 3 TANASIS SRL: Creditors' Proofs of Debt Due on November 20 B R A Z I L BROOKFIELD INCORPORACOES: Raises US$272 Million From IPO COSAN SA: Sees 2010/11 Cane Crush at 58 Million Tonnes GOL LINHAS: Concludes Global Share Offering MARFRIG ALIMENTOS: Banco Nacional May Increase Stake in Firm SUL AMERICA: S&P Raises Counterparty Credit Rating to 'BB-' C A Y M A N I S L A N D S ACTIAN MASTER: Creditors' Proofs of Debt Due on October 28 AEC FIXED: Creditors' Proofs of Debt Due on October 28 ARES VI: Creditors' Proofs of Debt Due on October 29 BASE 1: Creditors' Proofs of Debt Due on October 29 BOSTON EQUITY: Creditors' Proofs of Debt Due on October 29 BOSTON RESEARCH: Creditors' Proofs of Debt Due on October 29 BOSTON TECHNOLOGY: Creditors' Proofs of Debt Due on October 29 CENTURY ASSET: Creditors' Proofs of Debt Due on October 28 ESTHER 3: Creditors' Proofs of Debt Due on October 26 FARAWAY 4: Creditors' Proofs of Debt Due on October 26 FORTRESS HOLDINGS: Creditors' Proofs of Debt Due on October 28 FORTRESS SUBSIDIARY: Creditors' Proofs of Debt Due on October 28 GRACELAND 5: Creditors' Proofs of Debt Due on October 26 HANOVER 6: Creditors' Proofs of Debt Due on October 26 ISOLDE 7: Creditors' Proofs of Debt Due on October 26 RIVERSOURCE UNIVERSAL: Creditors' Proofs of Debt Due on October 29 RIVERSOURCE VALUE: Creditors' Proofs of Debt Due on October 29 S2 CAPITAL: Creditors' Proofs of Debt Due on October 28 SAJEN TRADING: Creditors' Proofs of Debt Due on October 28 SPECTRA CAPITAL: Creditors' Proofs of Debt Due on October 26 C O L O M B I A ECOPETROL SA: To Sell 9.9% Stake in Late 2010 or 2011 J A M A I C A AIR JAMAICA: Union to Get Word on Revised Lay Off Exercise JAMAICA PUBLIC SERVICE: Still Affected by Electricity Thefts JAMAICA PUBLIC SERVICE: Reveals New Guaranteed Standards * JAMAICA: No Growth Predicted for Economy, EIU Says S U R I N A M E SURINAME: Fitch Affirms Issuer Default Rating at 'B' T R I N I D A D & T O B A G O CL FINANCIAL: CEO Admits Need to Restructure Debt V E N E Z U E L A PETROLEOS DE VENEZUELA: Won't Lower Price of Bond Issue PETROLEOS DE VENEZUELA: Fitch Puts B+/RR4 Rating on US$3BB Notes * VENEZUELA: To Publish Seized Assets of Oil Contractors X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =============================== A N T I G U A & B A R B U D A =============================== * ANTIGUA & BARBUDA: To Seek IMF Standby Accord ----------------------------------------------- The government of Antigua and Barbuda said it will seek support from the International Monetary Fund after agreeing the outlines of a fiscal consolidation program, The Dominican Today reports. According to the report, the country has been feeling the impact of the global economic downturn, which has reduced tourism revenues and financial remittances across the region. The reports relates that the country has also suffered financial losses and job layoffs as a result of the fraud scandal surrounding Texas financier Robert Allen Stanford, who is accused by U.S. prosecutors of using his bank on Antigua and Barbuda to orchestrate an alleged US$7 billion Ponzi scheme. The report notes that the government said it would seek an IMF standby arrangement, without specifying the amount of the possible loan, following talks between an IMF team and local Ministry of Finance officials. ================= A R G E N T I N A ================= GVF CONSTRUCCIONES: Creditors' Proofs of Debt Due on March 15 ------------------------------------------------------------- Jaime Ernesto del Hoyo, the court-appointed trustee for GVF Construcciones SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until March 15, 2010. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 8 in Buenos Aires, with the assistance of Clerk No. 16, 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: Jaime Ernesto del Hoyo Cerrito 4894 Argentina INTERCOM EDITORIAL: Creditors' Proofs of Debt Due on December 1 --------------------------------------------------------------- Jorge Bermudez, the court-appointed trustee for Intercom Editorial SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until December 1, 2009. Mr. Bermudez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 22 in Buenos Aires, with the assistance of Clerk No. 43, 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: Jorge Bermudez Belgrano 845 Argentina KONY SA: Creditors' Proofs of Debt Due on November 20 ----------------------------------------------------- Nestor Urrutia, the court-appointed trustee for Kony SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until November 20, 2009. Mr. Urrutia 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: Nestor Urrutia Avenida Cordoba 1351 Argentina LUGANO TOY'S: Creditors' Proofs of Debt Due on November 20 ---------------------------------------------------------- Juan Carlos Chaker, the court-appointed trustee for Lugano Toy's SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until November 20, 2009. Mr. Chaker 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. 38, 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: Juan Carlos Chaker Teniente General Juan Domingo Peron 315 Argentina MEVACO SRL: Creditors' Proofs of Debt Due on November 20 -------------------------------------------------------- Estudio Pireni, the court-appointed trustee for Mevaco SRL'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. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 47, 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: Estudio Pireni Santorsola y Asociados Paraguay 1560 NEDAR SA: Creditors' Proofs of Debt Due on December 10 ------------------------------------------------------ The court-appointed trustee for Nedar S.A.'s reorganization proceedings, will be verifying creditors' proofs of claim until December 10, 2009. The trustee will present the validated claims in court as individual reports on February 25, 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 9, 2010. Creditors will vote to ratify the completed settlement plan during the assembly on June 25, 2010. SPORTGAME SRL: Creditors' Proofs of Debt Due on December 3 ---------------------------------------------------------- Alicia Rita Romero, the court-appointed trustee for Sportgame S.R.L's bankruptcy proceedings, will be verifying creditors' proofs of claim until December 3, 2009. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 27, 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: Alicia Rita Romero Parana 26 Argentina TANASIS SRL: Creditors' Proofs of Debt Due on November 20 --------------------------------------------------------- Oscar Alfredo Arias, the court-appointed trustee for Tanasis SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until November 20, 2009. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 36, 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: Oscar Alfredo Arias Carlos Pellegrini 1063 Argentina =========== B R A Z I L =========== BROOKFIELD INCORPORACOES: Raises US$272 Million From IPO -------------------------------------------------------- Brookfield Incorporacoes SA has raised US$272 million in an initial public offering, Brian Ellsworth at Reuters says. The report relates that the company said in a securities filing that it sold 70,000 shares at an opening price of BRL6.80, yielding BRL476 million -- considerably less than the BRL700 million it said last month it expected to raise. According to the report, Brookfield Incorporacoes is the latest real estate developer seeking to benefit from investors' demand for companies in the sector. The report relates that Brazil's housing market has benefited from record-low interest rates and an $18 billion government program for low-income homes that has helped lift Brazil's economy out of recession. The report notes that the real estate companies were among the most active in stock offerings in the boom years 2006-2007, but later became among the worst performers in the local stock market because of a glut in share sales. About Brookfield Incorporacoes Brookfield Incorporacoes SA (former Brascan Residential Properties SA) is a Brazil-based company engaged in real estate sector. The Company is the developer of high-end and luxury residential buildings, houses, as well as office buildings in Sao Paulo and Rio de Janeiro metropolitan regions. Its operations include land acquisition, planning, construction, sales, financing, customer service, design, development and management of real estate projects targeted at mainstream, luxury homebuyers. The company's buildings include Reserva de Itauna, Edificio San Francisco, Chacara de Pinheiros, Time Square and Saint Tropez, among others. As of June 22, 2009, the Company had its name changed after the merger of three companies: Brascan Residential, Company and MB Engenharia. The company's major shareholder is Brookfield Asset Management. In July 2009, Companhia Energetica de Minas Gerais 95% interest in the company. * * * As reported in the Troubled Company Reporter-Latin America on September 1, 2009, Fitch Ratings has assigned the national long- term debt rating of 'A+(bra)' to the proposed first simple debentures issuance, not convertible into shares, of Brookfield Incorporacoes S.A. (Brookfield Incorporacoes), in the total amount of BRL100 million, with final maturity on September 1, 2013. The proceeds will be used for company general purposes. Fitch has already rated Brookfield Incorporacoes' foreign and local currency Issuer Default Ratings 'BB-', and national long-term rating 'A+ (bra)'. The Rating Outlook of the corporate ratings is Negative. COSAN SA: Sees 2010/11 Cane Crush at 58 Million Tonnes ------------------------------------------------------ Inae Riveras at Reuters reports that Cosan SA said it expects to crush 58 million tonnes of cane in 2010/11 (April-March), up from 54 million tonnes in 2009/10, Inae Riveras at Reuters reports. "We expect to grow at the same rate as cane crushing in the center-south will," the report quoted Pedro Mizutani, president of Cosan's sugar and ethanol division, as saying. According to the report, Mr. Mizutani said that the market has been talking about an increase in the center-south's cane crushing to around 580 million tonnes next season, from 530 million tonnes in the current season. The report notes that Cosan SA has directed around 58% of its cane crushed in 2009/10 to sugar production. "Of course our (ethanol and sugar) production will depend on prices (in 2010) but as we expect sugar prices to be higher (than ethanol prices), the production mix will be similar," Mr. Mizutani told Reuters in an interviews. The crush of a record 580 million tonnes of cane would be close to the sector's installed capacity, Mr. Mizutani added. Reuters notes that because of wet weather in the center-south, which accounts for about 90% of Brazil's cane output, between 40 million and 50 million tonnes of cane will be left untouched on the fields to be crushed next season. About Cosan SA Headquartered in Brazil, Cosan SA Industria e Comercio -- http://www.cosan.com.br/-- is a Brazil-based company active in the research and production of sugar, ethanol and derivatives. The company cultivates harvests and processes sugarcane - the main raw material used to produce sugar and ethanol. In addition, it is engaged in the production of sustained energy from renewable sources. It operates 18 production units located in the state of Sao Paulo. The Company also operates port terminals. As of March 31, 2009, Cosan was the parent company of a number of controlled entities, such as TEAS -- Terminal Exportador de Alcool de Santos SA, Cosan SA Bioenergia, Radar Propriedades Agricolas SA and Cosanpar Participacoes SA, among others. Cosan SA is a subsidiary of Bermuda-based Cosan Limited. * * * As reported in the Troubled Company July 27, 2009, Fitch Ratings has assigned 'BB-' local and foreign currency Issuer Default Ratings and a 'A-(bra)' National Scale Rating to Cosan S.A. Industria e Comercio and its subsidiary Cosan Combustiveis e Lubrificantes Ltda. Fitch has also assigned a 'BB-' rating to CCL's proposed US$300 million senior unsecured notes due 2014 issued through its wholly owned subsidiary, CCL Finance Ltd. The notes will be unconditionally and irrevocably guaranteed by CCL. The Rating Outlook for Cosan and CCL is Stable. GOL LINHAS: Concludes Global Share Offering ------------------------------------------- GOL Linhas Aereas Inteligentes S.A. concluded its global share offering, which increased its cash position by R$627.1 million. With an improved cash position that now represents more than 20% of its net revenues recorded during the last 12 months, and with its other competitive advantages: (i) the flight frequency leader between Brazil's main airports, (ii) Leadership in Latin America in low operating cost structure, number of affiliates in its mileage program (6.4 million) and e-commerce sales, and (iii) state-of-the-art corporate governance practices, GOL believes it is well structured to benefit from the growth of air transport in Brazil and Latin America. "The success of the offering has put GOL among the world's most capitalized airlines. This will create shareholder value because it will allow the Company to develop its strategic plan in a flexible manner and with a focus on results," declared Leonardo Pereira, Vice President and Chief Financial and Investor Relations Officer. "With VoeFacil program (FlyEasy program) and our low-cost structure, we expect to attract more of the new Brazilian middle- income population, making air transport even more popular in Brazil. In addition, the SMILES program and the high frequency of our flights should allow us to continue attracting more business travelers, while our e-commerce platform, together with GOLLOG, our cargo transport unit, are increasing our ancillary revenues," added Constantino de Oliveira Junior, GOL's founder and CEO. The Company said, "The high quality of our operations, backed by a modern and standardized fleet of next generation Boeing 737 aircraft, ensures regular, punctual flights, and has made us achieve the leadership in terms of operating profitability in the Brazilian industry. The offering comprised 62.2 million common and preferred shares (38.0 million in the primary offering, totaling R$627.1 million) at R$16.50 per share (US$ 9.48 per ADS), totaling R$1,026.1 million. The difference between the total offering and the primary offering is due to the offering structure designed to comply with Brazilian corporate law, keeping a minimum ratio of 50% between common and preferred shares (including ADSs). Under the offering structure, Fundo ASAS, the Company's controlling shareholder, sold a portion of its preferred shares, while the proceeds were used to buy common shares issued to comply with the regulatory ratio. The structure allowed the company to achieve its capital increase targets and to comply with Brazilian Corporate Law." A complete breakdown of the offering is shown: Breakdown of the Number of Shares and Value of the Global Offering Global Share Offering Number of Shares Total Value** --------------------- ---------------- ------------- Primary Global Offering 34,550,000 R$570,075,000 Common Shares 17,275,000 R$285,037,500 Preferred Shares 17,275,000 R$285,037,500 Additional Shares (hot issue) 3,455,000 R$57,007,500 Common Shares 1,727,500 R$28,503,750 Preferred Shares 1,727,500 R$28,503,750 Primary Offering Total 38,005,000 R$627,082,500 Share Conversion Total* 19,002,500 R$313,541,250 Over-allotment Option (Green Shoe - secondary) 5,182,500 R$85,511,250 Total - Global Share Offering 62,190,000 R$1,026,135,000 Common Shares 19,002,500 R$313,593,250 Preferred Shares 43,187,500 R$712,593,750 *The financial volume and number of shares involved in the conversion of preferred to common shares by Fundo ASAS, which was structured in such a way as to ensure the feasibility of the global offering by maintaining the capital stock ratio at 50% common shares and 50% preferred shares (including ADSs), in compliance with paragraph 2 of article 15 of Brazil's Corporate Law. ** Gross amounts -- including associated commissions and expenses. The leading asset management firms in Brazil, the United States, Europe and Asia took part in the offering. Foreign investors accounted for 69.9% of the total and Brazilian institutional investors and private pension funds for 20.3%. Of the 43,187,500 preferred shares distributed in the primary and secondary offerings, 49.6% were in the form of ADSs (American Depositary Shares) on the NYSE. The table the preferred share and ADS distribution per investor profile: Number of Type of Investor Preferred Shares % ---------------- ---------------- ------ Individuals 2,588,463 6.0% Investment Clubs 322,316 0.7% Investment Funds (national) 8,635,024 20.0% Private Pension Funds 138,749 0.3% Foreign Investors 30,200,831 69.9% Other Institutional Investors 1,302,117 3.0% Total 43,187,500 100.0% As a result of the offering, the preferred share free float (excluding shares held by board members and executive officers) increased from 44.5% to 70.5%. In terms of total capital, the free float climbed from 22.2% to 35.3%. The tables show the shareholding breakdown before and after the offering: (A) Shareholding breakdown Before the Offering Shareholder ON % PN % Total % ----------- ----------- ----- ---------- ----- ----------- ----- Fundo ASAS 114,197,142 85.7% 59,795,617 52.4% 173,992,759 6.2% Board Members & Executive Officers 16 - 2,064,587 1.8% 2,064,603 0.9% Shares held in Treasury - - 1,574,200 1.4% 1,574,200 0.7% Market (free float) - - 50,762,751 44.5% 50,762,751 22.2% ----------- ----------- ------ ----------- ------ ----------- ------ Total 114,197,158 100.0% 114,197,155 100.0% 228,394,313 100.0% (B) Shareholding breakdown After the Offering Shareholder ON % PN % Total % ----------- ----------- ----- ---------- ----- ----------- ----- Fundo ASAS 133,199,642 100.0% 35,610,617 26.7% 168,810,259 63.4% Board Members & Executive Officers 16 - 2,064,587 1.5% 2,064,603 0.8% Shares held in Treasury - - 1,574,200 1.2% 1,574,200 0.6% Market (free float) - - 93,950,251 70.5% 93,950,251 35.3% ----------- ----------- ------ ----------- ------ ----------- ------ Total 133,199,658 100.0% 133,199,655 100.0% 266,399,313 100.0% About GOL Linhas Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. -- http://www.voegol.com.br/-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on August 31, 2009, Fitch Ratings affirmed Gol Linhas Aereas Inteligentes S.A.'s ratings: -- Foreign and Local Currency long-term Issuer Default Ratings at 'B+'; -- Long-term National Rating at 'BBB(bra)'; -- US$200 million perpetual notes at 'B/RR5'; -- US$200 million senior notes due 2017 at 'B/RR5'. MARFRIG ALIMENTOS: Banco Nacional May Increase Stake in Firm ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social SA portfolio manager, Andre Salcedo Teixeira Mendes, said the bank is evaluating a possible increase in its stake in Marfrig Alimentos SA, Rogerio Jelmayer at Dow Jones Newswires reports, citing local financial newspaper Valor Economico. "We are evaluating whether to hold at the present level or increase our stake," the report quoted Andre Salcedo Teixeira Mendes as saying. According to Dow Jones Newswires, BNDES has a 14.66% stake in Marfrig, through its equity investment arm called BNDESPar. The report relates that a possible increase of the BNDES stake in Marfrig could be made by the bank via an ongoing share offer. In September, the report notes, Marfrig Alimentos's board of directors authorized the company to hold a primary offering of shares on the local exchange, the BMFBovespa. The report says that the offer will be used to finance the recent acquisition of Seara Alimentos Ltd. As reported in the Troubled Company Reporter-Latin America on September 16, 2009, Dow Jones Newswires said that Marfrig Alimentos agreed to acquire Cargill Inc.'s Brazilian business, for US$900 million in cash and assumed debt, a move to bolster the company's poultry and pork businesses while opening up better access to markets such as the U.K. and Japan. About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. About Marfrig Alimentos Brazil-based Marfrig Alimentos SA (formerly known as Marfrig Frigoroficos e Comercio de Alimentos) processes beef, pork, lamb, and poultry; and produces frozen vegetables, canned meats, fish, ready meals, and pasta. The company operates in Southern America, the united states, and Europe. * * * As reported in the Troubled Company Reporter-Latin America on September 18, 2009, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Brazil-based meat processor Marfrig Alimentos S.A. following Marfrig's announcement that it has acquired meat processor Seara Alimentos Ltda. and its subsidiaries in Brazil and Europe from Minnetonka-based Cargill Inc. for US$706.2 million in cash plus US$193.8 million in debt. The outlook is negative. SUL AMERICA: S&P Raises Counterparty Credit Rating to 'BB-' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its ratings, on Sul America S.A., including raising the counterparty credit rating to 'BB-' from 'B+' and the senior unsecured debt rating to the company's remaining $130 million, five-year senior notes to 'BB-' from 'B+'. The rating on SASA, a pure holding company, reflects a two-notch differentiation from the issuer rating on Sul America Companhia Nacional de Seguros, which S&P raised to 'BB+' from 'BB'. The outlook is stable. "The rating action reflects the solid financial performance of Sul America even under the less favorable economic and competitive conditions," said Standard & Poor's credit analyst Ricardo Brito. "The upgrade is consistent with the buildup of a longer and more consistent track record of good margins in auto and health insurance, and the strengthening of the balance sheet." However, the rating on Sul America still reflects the challenges the company faces in the competitive environment for insurance in Brazil after recent consolidations. Offsetting this weakness are the company's consistent financial condition and well-established competitive position in the country's health and auto insurance segments. Sul America has been posting better profits in the past few years and reducing its debt leverage as it benefits from good cash flow. An effective management strategy of focusing on profitability and brand recognition has helped the company achieve these results. ========================== C A Y M A N I S L A N D S ========================== ACTIAN MASTER: Creditors' Proofs of Debt Due on October 28 ---------------------------------------------------------- The creditors of Actian Master Fund Ltd. are required to file their proofs of debt by October 28, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands AEC FIXED: Creditors' Proofs of Debt Due on October 28 ------------------------------------------------------ The creditors of AEC Fixed Income Fund, Ltd. are required to file their proofs of debt by October 28, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 16, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ARES VI: Creditors' Proofs of Debt Due on October 29 ---------------------------------------------------- The creditors of Ares VI CLO Ltd. are required to file their proofs of debt by October 29, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 16, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BASE 1: Creditors' Proofs of Debt Due on October 29 --------------------------------------------------- The creditors of Base 1 Fund are required to file their proofs of debt by October 29, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 14, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BOSTON EQUITY: Creditors' Proofs of Debt Due on October 29 ---------------------------------------------------------- The creditors of Boston Equity Fund Inc. are required to file their proofs of debt by October 29, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 11, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BOSTON RESEARCH: Creditors' Proofs of Debt Due on October 29 ------------------------------------------------------------ The creditors of Boston Research Fund Inc. are required to file their proofs of debt by October 29, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 11, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BOSTON TECHNOLOGY: Creditors' Proofs of Debt Due on October 29 -------------------------------------------------------------- The creditors of Boston Technology Opportunities Fund Inc. are required to file their proofs of debt by October 29, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 11, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CENTURY ASSET: Creditors' Proofs of Debt Due on October 28 ---------------------------------------------------------- The creditors of Century Asset Funding Corporation are required to file their proofs of debt by October 28, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 10, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ESTHER 3: Creditors' Proofs of Debt Due on October 26 ----------------------------------------------------- The creditors of Esther 3 Limited are required to file their proofs of debt by October 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidators are: Christopher Johnson Russell Smith Chris Johnson Associates Ltd 80 Shedden Road PO Box 2499, Grand Cayman KY1-1104 FARAWAY 4: Creditors' Proofs of Debt Due on October 26 ------------------------------------------------------ The creditors of Faraway 4 Limited are required to file their proofs of debt by October 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidators are: Christopher Johnson Russell Smith Chris Johnson Associates Ltd 80 Shedden Road PO Box 2499, Grand Cayman KY1-1104 FORTRESS HOLDINGS: Creditors' Proofs of Debt Due on October 28 -------------------------------------------------------------- The creditors of Fortress Holdings (GAGACQ) Investors Ltd. are required to file their proofs of debt by October 28, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FORTRESS SUBSIDIARY: Creditors' Proofs of Debt Due on October 28 ---------------------------------------------------------------- The creditors of Fortress Subsidiary (GAGACQ) Investors Ltd. are required to file their proofs of debt by October 28, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GRACELAND 5: Creditors' Proofs of Debt Due on October 26 -------------------------------------------------------- The creditors of Graceland 5 Limited are required to file their proofs of debt by October 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidators are: Christopher Johnson Russell Smith Chris Johnson Associates Ltd 80 Shedden Road PO Box 2499, Grand Cayman KY1-1104 HANOVER 6: Creditors' Proofs of Debt Due on October 26 ------------------------------------------------------ The creditors of Hanover 6 Limited are required to file their proofs of debt by October 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidators are: Christopher Johnson Russell Smith Chris Johnson Associates Ltd 80 Shedden Road PO Box 2499, Grand Cayman KY1-1104 ISOLDE 7: Creditors' Proofs of Debt Due on October 26 ----------------------------------------------------- The creditors of Isolde 7 Limited are required to file their proofs of debt by October 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidators are: Christopher Johnson Russell Smith Chris Johnson Associates Ltd 80 Shedden Road PO Box 2499, Grand Cayman KY1-1104 RIVERSOURCE UNIVERSAL: Creditors' Proofs of Debt Due on October 29 ------------------------------------------------------------------ The creditors of Riversource Universal Equity Long Short Fund, Inc. are required to file their proofs of debt by October 29, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 11, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands RIVERSOURCE VALUE: Creditors' Proofs of Debt Due on October 29 -------------------------------------------------------------- The creditors of Riversource Value Long Short Fund, Inc. are required to file their proofs of debt by October 29, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 11, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands S2 CAPITAL: Creditors' Proofs of Debt Due on October 28 ------------------------------------------------------- The creditors of S2 Capital Fund (Offshore), Ltd. are required to file their proofs of debt by October 28, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 21, 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 KY1-9002, Cayman Islands SAJEN TRADING: Creditors' Proofs of Debt Due on October 28 ---------------------------------------------------------- The creditors of Sajen Trading Ltd. are required to file their proofs of debt by October 28, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SPECTRA CAPITAL: Creditors' Proofs of Debt Due on October 26 ------------------------------------------------------------ The creditors of Spectra Capital Fund LDC are required to file their proofs of debt by October 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 11, 2009. The company's liquidator is: Ramona Bowry Telephone: +1-345-769-3400 Facsimile: + 1-345-769-3404 A.R.C. Directors Ltd. P.O. Box 10250 Grand Pavilion Commercial Centre Suite #7, 802 West Bay Grand Cayman KY1-1003, Cayman Islands =============== C O L O M B I A =============== ECOPETROL SA: To Sell 9.9% Stake in Late 2010 or 2011 ----------------------------------------------------- Ecopetrol S.A. will sell a 9.9% stake in new shares on the stock market to finance its expansion in late 2010 or in 2011, Inti Landauro at Dow Jones Newswires reports, citing Company Chief Executive Javier Gutierrez. "We will stick strictly to financial criteria to go with the 9.9%," the report quoted Mr. Gutierrez as saying. "We don't have any date but we estimate it should be at the end of 2010 or in 2011," Mr. Gutierrez added. According to the report, the company was authorized by Congress to raise capital through the sale of new shares equivalent to no more than 20% of the company. The report notes that in 2007, Ecopetrol sold a 10.1% stake on the local stock market. 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 October 7, 2009, Fitch Ratings has affirmed the Issuer Default Ratings and outstanding debt ratings of Ecopetrol S.A.: -- Foreign currency IDR at 'BB+'; -- US$1.5 billion senior unsecured notes due 2019 at 'BB+'. ============= J A M A I C A ============= AIR JAMAICA: Union to Get Word on Revised Lay Off Exercise ---------------------------------------------------------- National Workers Union officials said that they expect to get word soon on managers at Air Jamaica Limited who are slated to be included in ongoing lay-offs at the airline, RadioJamaica reports. The report relates that the matter will be discussed at a Steering Committee meeting involving Air Jamaica executives and trade union representatives. As reported in the Troubled Company Reporter-Latin America on October 12, 2009, RadioJamaica said that Air Jamaica has made progress in its talks with trade unions aimed at ironing out issues which stalled job cuts at the national airline. RadioJamaica related 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 as it appears that management personnel at Air Jamaica have been excluded from the staff cuts. "Going into [the] meeting we are expecting that the management would act forthrightly to ensure that there is fairness in the matter and that the workers at the bottom of the table can see the system working in a way that resembles justice," the report quoted NWU Vice President Granville Valentine as saying. "So far we have not seen a list of the managers we cannot identify any managerial position that went in this exercise and that is a position that we are very uncomfortable about," Mr. Valentine added. 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). JAMAICA PUBLIC SERVICE: Still Affected by Electricity Thefts ------------------------------------------------------------ The Jamaica Public Service Company Limited said that its operations continue to be affected by electricity theft, Go-Jamaica reports. The report relates that the company's special anti-theft Task Force teams have found more than 9,000 cases of irregularity in electricity access. According to the report, the company said that the discovery is based on operations carried out by the team in major urban centers in the western and eastern sections of the island from March to September. The report relates that the work of the company's anti-theft task force has led to the recovery of about six million kilowatt hours of electricity or JM$112 million, over the seven month period. Meanwhile, the report notes, JPSCO said that it plans to roll out a second phase of operations, where its regional task forces will carry out island wide crackdowns on electricity theft. As reported in the Troubled Company Reporter-Latin America on October 15, 2009, RadioJamaica said that it is losing JM$4 billion annually from the theft of electricity. The report related that the company is now focusing on various initiatives to clampdown on the problem. According to the report, JPSCO Corporate Communications Manager at the JPSCO, Winsome Callum, says a US$13 million fund has been set up to specifically target electricity theft. 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: Reveals New Guaranteed Standards -------------------------------------------------------- Jamaica Public Service Company Limited's aggrieved customers will get automatic monetary compensation when the company breaches certain Guaranteed Standards, RadioJamaica reports. The report relates that the revision was determined by the Office of Utilities Regulation in its tariff review in September. According to the report, customers previously had to apply to the JPSCO for compensation, which range from a low of JM$1,500 to a high of JM$16,000. The report relates that customers whose service is not reconnected with 24 hours after being cut off for unpaid bills and customers whose faulty meters are not replaced within 20 days are entitled to automatic compensation. RadioJamaica notes Ruthlyn Johnson, the JPS' Corporate Communications Officer, said that wrongful disconnection will result in higher compensation. 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: No Growth Predicted for Economy, EIU Says ---------------------------------------------------- The Jamaican economy is likely to remain among the weakest in the Caribbean even with help from the International Monetary Fund, RadioJamaica reports, citing an assessment from London-based Economist Intelligence Unit (EIU). The report relates that EIU said Jamaica is already the worst performer in terms of growth in the Caribbean region and the depression is likely to deepen before it is reversed. According to the report, EIU said that the already strained fiscal position now appears increasingly unsustainable and conditions point to the risk of debt default, a position which the government has denied. However, the report notes that EIU said while an expected US$1.2 billion loan from the IMF will likely prevent a default of debt repayments; the Jamaican economy is likely to remain among the weakest in the Caribbean. The EIU, the report relates, forecast is for the Jamaican economy to contract by 1.6% in 2010 followed by weak positive economic growth in 2011 of just 0.2%. The report says EIU added that even in the event of a stronger global recovery, a rapid acceleration in Jamaican growth would remain hindered by the high costs associated with "pervasive crime" and by the heavy public-debt burden, which will continue to crowd out private investment. * * * According to Moody's, the country continues to hold a B1 foreign currency rating and a Ba2 local currency rating. =============== S U R I N A M E =============== SURINAME: Fitch Affirms Issuer Default Rating at 'B' ---------------------------------------------------- Fitch Ratings has affirmed Suriname's long-term foreign currency Issuer Default Rating at 'B' and revised the Rating Outlook to Positive from Stable. In addition, Fitch has affirmed Suriname's: -- Local currency IDR at 'B+'; Outlook Stable; -- Country ceiling at 'B'. The Positive Outlook on the long-term foreign currency IDR reflects Suriname's progress in clearing external arrears and increased resilience to external shocks. The government reached an agreement with Brazil, its largest external creditor, and settled outstanding debt arrears of US$118 million or 37% of year-end 2008 public external debt, in August 2009. Nevertheless, arrears with the U.S. still account for 14.1% of total public external debt. 'Outstanding external arrears remain a key constraint for the sovereign's foreign currency rating, as Suriname is the only sovereign in the 'B' rating category to have material arrears with bilateral creditors,' said Erich Arispe, Director in Fitch's Sovereign Group. Fitch believes that Suriname's resilience to external shocks has improved due to increasing diversification of the country's export base and rising international reserve levels. 'The growing importance of oil and gold in Suriname's exports reduces the economy's traditional dependence on the performance of the aluminum industry,' added Arispe. Suriname's position as a net public external creditor, at 6.6% of current account receipts in 2008, is set to strengthen further in 2009 due to continued international reserves accumulation and debt repayments. Hence, the country's liquidity ratio could rise to 790% in 2010, considerably higher than the expected 'B' median of 181%. Even when adjusted for the country's high level of financial dollarization, Suriname's liquidity ratio remains comparable to the peer median. On the fiscal side, consolidation and sustained growth in recent years have affected debt dynamics positively and reduced financing requirements. Central government debt reached 21.6% of GDP in 2008, less than half the 10-year 'B' median. While the central government deficit is expected to reach 1.4% of GDP in 2009, financing requirements (central government deficit plus amortizations) should remain manageable at 6% of GDP and decline in 2010 in spite of a higher deficit. Fiscal accounts, though, have structural weaknesses in terms of high revenue volatility and considerable spending inflexibility due to the weight of interest payments, public-sector salaries, transfers and subsidies. Moreover, Fitch considers that the macroeconomic policy framework could be strengthened further, as it is highly dependent on the credibility of the current economic authorities rather than on institutional mechanisms. As a result, elections in May 2010 could generate uncertainty about the continuity of the policies that have underpinned fiscal consolidation, lower inflation and healthy growth in recent years. Clearance of remaining external arrears could lead to an upgrade of Suriname's long-term foreign currency rating. Over the medium term, macroeconomic policy continuity as well as reforms designed to strengthen the policy framework and improve the competitiveness of the Surinamese economy would be viewed positively by Fitch. By contrast, a sharp departure from prudent fiscal and monetary policies which results in macroeconomic instability and negative debt dynamics could undermine the sovereign's positive rating momentum. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: CEO Admits Need to Restructure Debt ------------------------------------------------- CL Financial Limited Chief Executive Officer Steve Bideshi said the company needs to keep liquidity flowing which meant restructuring debt and not repeating the sins of the past, Rory Rostant at Trinidad and Tobago Newsday reports. �We have to ensure that we don�t make the same mistakes of the past,� the report quoted Mr. Bideshi as saying. According to the report, Mr. Bideshi said that audited accounts are being prepared for several subsidiaries, including Angostura, whose shares no longer trade on the Trinidad and Tobago Stock Exchange because of its failure to provide 2008 accounts. The report relates Mr. Bideshi admitted that CL Financial�s subsidiaries suffered in the past from a lack of robust and timely financials. The report notes that Mr. Bideshi wanted to ensure that subsidiaries such as Angostura, the holding company CL Financial and Home Construction Limited has enough liquidity to survive 2009. Mr. Bideshi, the report relates, said the aim now is to restructure debt and survive. T&T Newsday adds that Mr. Bidesh pointed out there was now a cultural and radical shift at CL Financial in which management has moved from being involved in serial acquisitions to one of consolidation. About CL Financial CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company, Colonial Life Insurance Company by Cyril Duprey, it was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. has downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCRLA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Won't Lower Price of Bond Issue ------------------------------------------------------- Petroleos de Venezuela said that it will not lower the price of a US$3 billion issue of 2014, 2015 and 2016 bonds launched this week despite signs of low demand from traders, Fabian Cambero at Reuters reports. Dan Molinski at Dow Jones Newswires relates that PDVSA began taking orders for the 2014, 2015 and 2016 bonds on October 19, and the sale is set to end today, October 22, with results due for release tomorrow, October 23. Dow Jones Newswires, citing traders, relates that the sale didn't start off well due to rather light demand. According to Dow Jones Newswires, the bonds were priced at 138% of face value, which analysts said implies a price of around 4.8 or VEB4.9 for US$1. The report notes that it is better than the official exchange rate of VEB2.15 for US$1, but almost equal to the black market rate, so it didn't provide much incentive to buy the bonds as a forex bet. Some analysts, Dow Jones relates, said they expected PDVSA to alter the terms of the bonds to sweeten the deal and ensure full placement. However, the report says, PDVSA's latest statement suggested that won't be happening. "We ratify the terms and conditions established," in the prospectus," the company said in a statement obtained by the Reuters. The company, Reuters relates, added that it expected sufficient demand for the sale. Reuters notes that investors in Venezuela primarily use the bonds, which can be bought with the local bolivar currency but sold in dollars, as a tool to sidestep a strict exchange rate regime. 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+/RR PETROLEOS DE VENEZUELA: Fitch Puts B+/RR4 Rating on US$3BB Notes ---------------------------------------------------------------- Fitch Ratings has assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion notes of which US$1.3 billion are due 2014, US$1.3 billion are due 2015 and US$400 million are due 2016. Coupons on these notes are 4.9%, 5% and 5.125%, respectively. These notes will be registered at Euroclear and/or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch rates PDVSA: -- Foreign currency Issuer Default Rating 'B+'; -- Local currency IDR 'B+'; -- US$3 billion outstanding zero coupon notes (due 2011) 'B+/RR4'; -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4'; -- US$3 billion outstanding senior notes (due 2027) 'B+/RR4'; -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4'; -- Long-term national scale rating of 'AAA(ven)'. The Rating Outlook is Stable. PDVSA's credit quality is inextricably linked to that of the government of Venezuela. It is a state-owned entity, whose royalties and tax payments represent more than 50% of the government's revenues, and it is of strategic importance to the economic and social policies of the country. In the past two years, the government has used PDVSA's balance sheet to nationalize electricity companies, as well as to acquire industrial companies. The government also took the additional step during 2008 of changing PDVSA's charter and mission statement to allow it to participate in any industry that could contribute to the social development of the country, including health care, education and agriculture. PDVSA continues to be an important player in global energy. A strong balance sheet in line with worldwide competitors, sizeable proven hydrocarbon reserves, strategic interests in international downstream assets, private participation in upstream operations and geographic proximity to the North American market provide important competitive advantages that are difficult to undermine. PDVSA's nature as a state-owned entity, combined with increased government control over business strategies and internal resources, underscores the close link between the company's credit profile and that of the sovereign. Venezuela's reported oil production has remained relatively stable during the past four years at approximately 3.25 million barrels per day despite high level of upstream investments. From 2002 to 2005, total capital expenditures at PDVSA averaged US$3.1 billion per year. In 2006, 2007 and 2008, they climbed to US$7.2 billion, US$12.8 billion and US$18.4 billion, respectively. Higher oil prices have also resulted in much higher contributions by PDVSA to the government in the form of royalties, taxes, dividends, and transfers to social and development funds. During 2008, these contributions totaled approximately US$53.3 billion compared to US$43.7 billion in 2007. PDVSA's cash generation is expected to drop sharply in 2009 due to lower hydrocarbon prices. Lower cash flow may reduce investments and/or increase leverage to help the government fund capex and possible macroeconomic imbalances. Despite lower expected prices, the company's planned investments in Venezuela are sizeable, totaling an estimated US$121.5 billion over the next five years, of which up to US$27.7 billion may not be related to the oil and gas industry. Expropriation of multinational oil companies' investments in the heavy oil projects during 2007 by the Venezuelan government and in May of this year the nationalization of oil and gas service companies could make it difficult to attract the needed capital and expertise to increase production. In addition, the arbitration initiated by ExxonMobil and ConocoPhillips to recover the market value of their projects could delay private sector participation in the industry's development. As of Dec. 31, 2008 total debt equalled US$15.1 billion. An estimated 11% or US$1.7 billion of the company's obligations were characterized as short term compared to US$4.5 billion unrestricted cash on hand. Overall, PDVSA has an attractive balance sheet, with total debt to EBITDA averaging 0.3 times since 2004 and total debt to capitalization of 11%. Adjusted debt over EBITDAR is in line with worldwide competitors at 1.1x as of the end of 2008. However, PDVSA has limited access to international capital markets and its cost of capital remains vulnerable to investor concerns over the company's exposure to sovereign risk. Liquidity is highly dependent on cash on hand and cash flow generation which turned negative at the end of 2008. In the fourth quarter of 2008 PDVSA's EBITDA was negative US$6 billion due to a 58% decline in price of the Venezuelan oil mix, higher costs that reflect an inflation rate of about 30% while the foreign exchange rate remains fixed, and substantial subsidies in the domestic market. Fitch expects margin pressures to continue in the first half of 2009 and to be exacerbated by PDVSA's 364 MMbpd oil production cuts to comply with OPEC quotas that took effect Jan. 1, 2009. Margins should improve in the second half of the year as oil prices increase and the company reduces costs through the recently announced nationalization of oil service companies. PDVSA is Venezuela's national oil company, with reported oil production of 3.23 MMbpd, refining capacity of 3.03 MMbpd, proved hydrocarbon reserves of 202.67 MMMboe (85% oil and 15% natural gas) and proved developed hydrocarbon reserves of 22.97 MMMboe as of December 2008. * VENEZUELA: To Publish Seized Assets of Oil Contractors -------------------------------------------------------- Maracaibo Eulogio del Pino, Petroleos de Venezuela, S.A. Vice President of Exploration and Production, said the assets of the oil contractors that were expropriated under the Organic Law that Reserves to the State the Assets and Services Related to Primary Hydrocarbon Activities will be published in presidential decrees. Mr. Del Pino explained that the decrees -- to be signed by the People's Minister for Energy and Petroleum Rafael Ramirez -- will include both the exact assets that were subject to expropriation and those that are not required for the Venezuelan core oil business. "Once the decrees are published and the auditing board has performed the relevant appraisals, we will talk to all of the concerned companies to make an estimation of value of the assets subject to expropriation. We will negotiate with all the companies willing to talk to us and negotiate based on terms of fairness and economic balance. We will attain agreements with all of them." "All of the companies will be compensated, all of them. The prerequisite for such compensation, however, are the relevant appraisals of all the assets subject to expropriation," Mr. Del Pino highlighted. Mr. Del Pino stressed that payments to the suppliers of the oil industry have been met for the last one month and a half. "We made payments to the companies we owed less than US dollar 2.5 million." * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, Marites O. Claro, Joy A. Agravente, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *