/raid1/www/Hosts/bankrupt/TCRLA_Public/091120.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
Friday, November 20, 2009, Vol. 10, No. 230
Headlines
A R G E N T I N A
ACRIL SRL: Requests for Preventive Contest
DEYA SA: Proofs of Claim Verification Deadline is February 3
EMPRESA BRASILEIRA: Argentina to Buy 20 Aircraft for US$700MM
LAFUENTE COMBUSTIBLES: Asks for Opening of Preventive Contest
PESQUERA GALFRIO: Requires Creditors to File Proofs of Debt
REPUBLICA HOLDINGS: Creditors' Proofs of Debt Due on Dec. 21
SERVICIOS DE HOTELERIA: Creditors' Proofs of Debt Due on Dec. 29
SUDAMERICAN ROXEL: Creditors' Proofs of Debt Due on December 22
TELECOM ARGENTINA: Telecom Italia to Discuss Firm's Sale on Dec. 2
TELECOM ARGENTINA: Raised to ?Buy? at Banco Santander
TIEMPO HABIL: Creditors' Proofs of Debt Due on February 2
B E R M U D A
CITICORP FINANCE: Creditors' Proofs of Debt Due on November 27
CITICORP FINANCE: Members' Final Meeting Set for December 16
CITICORP FSC: Creditors' Proofs of Debt Due on November 27
CITCORP FSC: Members' Final Meeting Set for December 16
CITICORP FSC: Creditors' Proofs of Debt Due on November 27
CITICORP FSC: Members' Final Meeting Set for December 16
CM FSC: Creditors' Proofs of Debt Due on November 27
CM FSC: Members' Final Meeting Set for December 16
CM FSC: Creditors' Proofs of Debt Due on November 27
CM FSC: Members' Final Meeting Set for December 16
CM FSC: Creditors' Proofs of Debt Due on November 27
CM FSC: Members' Final Meeting Set for December 16
B R A Z I L
GERDAU SA: Seeks to End Strike at Canadian Steel Works
GOL LINHAS: Increases Fares for First Time in Year
INDEPENDENCIA SA: Sets 1st Meeting of Fin'l Creditors on Nov. 25
JBS SA: In Advance Stage of Negotiation With Unnamed Investor
MINERVA SA: S&P Raises Corporate Credit Rating to 'B-' From 'CCC+'
C A Y M A N I S L A N D S
BASIS PAC-RIM: Creditors' Proofs of Debt Due on November 25
CARASIA INCOME: Creditors' Proofs of Debt Due on November 25
LINCOLN PARK: Creditors' Proofs of Debt Due on November 25
LUCERNE MID-CAP: Creditors' Proofs of Debt Due on November 25
LUCERNE MID-CAP: Creditors' Proofs of Debt Due on November 25
LUCERNE NORDIC: Creditors' Proofs of Debt Due on November 25
LUCERNE NORDIC: Creditors' Proofs of Debt Due on November 25
MITA HOLDING: Creditors' Proofs of Debt Due on November 25
MODE INVESTMENT: Creditors' Proofs of Debt Due on December 30
OAKBROOK INVESTMENTS: Commences Wind-Up Proceedings
OLD DOMINION: Creditors' Proofs of Debt Due on November 27
PARTNER RE: Creditors' Proofs of Debt Due on November 25
SUCCESSOR CAL: Creditors' Proofs of Debt Due on November 27
SUCCESSOR III: Creditors' Proofs of Debt Due on November 27
SUCCESSOR EURO: Creditors' Proofs of Debt Due on November 27
SUCCESSOR HURRICANE: Creditors' Proofs of Debt Due on November 27
SUCCESSOR IV: Creditors' Proofs of Debt Due on November 27
SUCCESSOR V: Creditors' Proofs of Debt Due on November 27
UOARS LIMITED: Creditors' Proofs of Debt Due on November 26
E C U A D O R
* ECUADOR: To Turn to China, Russia & Iran for Financing Need
J A M A I C A
IBEROSTAR ROSE HOTEL: Dispute With Workers Back at Labor Ministry
DIGICEL GROUP: Records US$857 Million Half-Year Profit
* JAMAICA: Moody's Junks Government Bond Ratings to Caa1
M E X I C O
GRUPO MEXICO: Calls Dec. 4 Shareholder Meeting to OK ASARCO Plan
P E R U
DOE RUN PERU: Says Activos Mineros Liable for La Oroya Clean-Up
V E N E Z U E L A
* VENEZUELA: 2009 GDP May Shrink 2.2%, Finance Ministry Says
V I R G I N I S L A N D
K1 GLOBAL: Hires Grant Thornton to Oversee Liquidation
- - - - -
=================
A R G E N T I N A
=================
ACRIL SRL: Requests for Preventive Contest
------------------------------------------
Acril S.R.L. requested for preventive contest. The company
stopped making payments in January 2009.
DEYA SA: Proofs of Claim Verification Deadline is February 3
------------------------------------------------------------
The court-appointed trustee for Deya S.A.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
February 3, 2010.
The trustee will present the validated claims in court as
individual reports on March 17, 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
May 3, 2010.
EMPRESA BRASILEIRA: Argentina to Buy 20 Aircraft for US$700MM
-------------------------------------------------------------
Empresa Brasileira de Aeronautica SA will sell 20 Embraer 190 AR
to the Argentine government for US$700 million, 45graus News
reports.
According to the report, about 85% of the funding will be made
through Banco Nacional de Desenvolvimento Economico e Social and
the the 15% by the Banco de la Nacion. The report relates that
the first nine aircraft will be delivered in June 2010, the other
in 2011.
Brazil President Luiz Inacio Lula da Silva, the report notes, said
that BNDES is an "enthusiastic partner" of the integration of
partnership Brazil and Argentina.
About Embraer
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.
LAFUENTE COMBUSTIBLES: Asks for Opening of Preventive Contest
-------------------------------------------------------------
Lafuente Combustibles S.R.L. asked for the opening of preventive
contest by cessation of payments.
PESQUERA GALFRIO: Requires Creditors to File Proofs of Debt
-----------------------------------------------------------
The court decreed the bankruptcy of Pesquera Galfrio SA.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
REPUBLICA HOLDINGS: Creditors' Proofs of Debt Due on Dec. 21
------------------------------------------------------------
Isabel Eugenia de Francesco, the court-appointed trustee for
Republica Holdings Limitada's bankruptcy proceedings, will be
verifying creditors' proofs of claim until December 21, 2009.
Ms. de Francesco will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 34, 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:
Isabel Eugenia de Francesco
Uruguay 660
SERVICIOS DE HOTELERIA: Creditors' Proofs of Debt Due on Dec. 29
----------------------------------------------------------------
Leonardo Kwasniewski, the court-appointed trustee for Servicios de
Hoteleria SRL's bankruptcy proceedings, will be verifying
creditors' proofs of claim until December 29, 2009.
Mr. Kwasniewski will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 10 in Buenos Aires, with the assistance of Clerk
No. 19, 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:
Leonardo Kwasniewski
Montevideo 536
Argentina
SUDAMERICAN ROXEL: Creditors' Proofs of Debt Due on December 22
---------------------------------------------------------------
The court-appointed trustee for Sudamerican Roxel Group S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until December 22, 2009.
The trustee will present the validated claims in court as
individual reports on March 9, 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 23, 2010.
TELECOM ARGENTINA: Telecom Italia to Discuss Firm's Sale on Dec. 2
------------------------------------------------------------------
Telecom Italia's board of directors will discuss on December 2
whether to sell its stake in its Argentine subsidiary, Telecom
Argentina SA, Matthew Cowley at Dow Jones Newswires reports,
citing a group of minority investors. The report relates that
Asati, the association that represents the shareholders, said that
Telecom Italia's stake in Telecom Argentina is worth more than
EUR900 million.
According to the report, Asati said that if a sale of the
Argentine unit is forced through, then Telecom Italia should sue
Telco. The report relates that the association said it was
against the sale because Telecom Italia's international expansion
should include South America, and Argentina and Brazil in
particular.
As reported in the Troubled Company Reporter-Latin America on
August 28, 2009, Dow Jones Newswires said that Argentina's
National Antitrust Commission has given Telecom Italia one year to
divest its stakes in Telecom Argentina, due to a conflict of
interest. According to the report, CNDC said that Spain's
Telefonica SA's minority stake in Telecom Italia creates a
conflict between the two companies' Argentine operations. The
report related that Telefonica owns Telefonica Argentina, which
shares an effective duopoly over the Argentine telecommunications
sector with Telecom.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As of June 30, 2009, the company continues to carry Standard and
Poor's "B-" LT Foreign Issuer Credit rating and "B" LT Local
Issuer Credit rating. The company also continues to carry Fitch
ratings' "B" LT FC Issuer default rating; "B+" LT LC Issuer
default rating; and "B" Senior Unsecured Debt rating
TELECOM ARGENTINA: Raised to ?Buy? at Banco Santander
-----------------------------------------------------
Telecom Argentina S.A. was raised to ?buy? form "hold" yesterday,
November 19, and had its 12-month share price estimate increased
30% at Banco Santander SA, which cited improving revenue outlook,
Ian Sayson at Bloomberg News reports.
The price target was raised to US$22.80, or BRL19.10, from
US$17.50, or BRL16.50 on November 19, Banco Santander analysts
Walter Chiarvesio and Gregorio Tomassi said in a report obtained
by the news agency.
?We expect value-added services to foster average revenue per user
in the coming years,? Bloomberg News quoted the analysts as
saying. ?Finally, a stronger-than-expected currency in Argentina
should allow U.S. dollar average revenue per user to show a
positive trend in the future," the added.
Bloomberg News adds that the analysts said that Banco Santander
also raised its estimates for the company?s earnings before
interest, taxes, depreciation and amortization by 15% for 2010 and
by 24 percent for 2011.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As of June 30, 2009, the company continues to carry Standard and
Poor's "B-" LT Foreign Issuer Credit rating and "B" LT Local
Issuer Credit rating. The company also continues to carry Fitch
ratings' "B" LT FC Issuer default rating; "B+" LT LC Issuer
default rating; and "B" Senior Unsecured Debt rating.
TIEMPO HABIL: Creditors' Proofs of Debt Due on February 2
---------------------------------------------------------
The court-appointed trustee for Tiempo Habil Consultora S.R.L.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until February 2, 2010.
The trustee will present the validated claims in court as
individual reports on March 16, 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 29, 2010.
=============
B E R M U D A
=============
CITICORP FINANCE: Creditors' Proofs of Debt Due on November 27
--------------------------------------------------------------
The creditors of Citicorp Finance International Ltd. are required
to file their proofs of debt by November 27, 2009, to be included
in the company's dividend distribution.
The company commenced wind-up proceedings on November 12, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CITICORP FINANCE: Members' Final Meeting Set for December 16
------------------------------------------------------------
The members of Citicorp Finance International Ltd. will hold their
final meeting on December 16, 2009, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on November 12, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CITICORP FSC: Creditors' Proofs of Debt Due on November 27
----------------------------------------------------------
The creditors of Citicorp FSC I Ltd. are required to file their
proofs of debt by November 27, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on November 12, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CITCORP FSC: Members' Final Meeting Set for December 16
-------------------------------------------------------
The members of Citicorp FSC I Ltd. will hold their final meeting
on December 16, 2009, at 9:30 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on November 12, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CITICORP FSC: Creditors' Proofs of Debt Due on November 27
----------------------------------------------------------
The creditors of Citicorp FSC II Ltd. are required to file their
proofs of debt by November 27, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on November 12, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CITICORP FSC: Members' Final Meeting Set for December 16
--------------------------------------------------------
The members of Citicorp FSC II Ltd. will hold their final meeting
on December 16, 2009, at 9:30 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on November 12, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CM FSC: Creditors' Proofs of Debt Due on November 27
----------------------------------------------------
The creditors of CM FSC II Ltd. are required to file their proofs
of debt by November 27, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on November 12, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CM FSC: Members' Final Meeting Set for December 16
--------------------------------------------------
The members of CM FSC II Ltd. will hold their final meeting on
December 16, 2009, at 9:30 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on November 12, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CM FSC: Creditors' Proofs of Debt Due on November 27
----------------------------------------------------
The creditors of CM FSC III, Ltd. are required to file their
proofs of debt by November 27, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on November 13, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CM FSC: Members' Final Meeting Set for December 16
--------------------------------------------------
The members of CM FSC III, Ltd. will hold their final meeting on
December 16, 2009, at 9:30 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on November 13, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CM FSC: Creditors' Proofs of Debt Due on November 27
----------------------------------------------------
The creditors of CM FSC IV, Ltd. are required to file their proofs
of debt by November 27, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on November 13, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CM FSC: Members' Final Meeting Set for December 16
--------------------------------------------------
The members of CM FSC IV, Ltd. will hold their final meeting on
December 16, 2009, at 9:30 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on November 13, 2009.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
===========
B R A Z I L
===========
GERDAU SA: Seeks to End Strike at Canadian Steel Works
------------------------------------------------------
Diana Kinch at Bloomberg News reports that Gerdau SA set a meeting
with the United Steelworkers Union officials on December 2 in a
bid to end a six-month strike at its construction-steel mill in
Cambridge, Ontario.
Gerdau?s North America unit contacted union officials, Tom Walsh,
coordinator for the labor organization?s south central Ontario
region, told the news agency in a telephone interview. The union
is open to discussing how to resume normal operations after a
Gerdau proposal was rejected earlier this year, Mr. Walsh added.
According to the report, Mr. Walsh said that all 190 workers at
the Cambridge mill stopped work on May 16 after turning down a
proposal to introduce a contribution- based pension plan for new
hires, replacing the previous defined-benefit system. The report
relates that the workers' actions caused the management to keep
the mill operating at a reduced rate since then.
?Gerdau Ameristeel stands by its offer,? the company said in an
e-mailed statement obtained by the news agency. The proposal
didn?t call for ?any reduction in base wages or pension benefits
for current employees,? the company added.
About Gerdau SA
Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As of June 19, 2009, the company continues to carry Moody's Ba1 LT
Corp Family rating and Ba1 Senior Unsecured Debt Ratings.
GOL LINHAS: Increases Fares for First Time in Year
--------------------------------------------------
GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A.
is raising fares for the first time in a year as the national
economy shows signs of recovery, Laura Price at Bloomberg News
reports, citing Chief Executive Officer Constantino de Oliveira
Jr. The report relates that Mr. Oliveira said the carrier is
charging passengers an average 12% more in the fourth quarter than
in the previous three months.
According to the report, citing a weekly central bank survey,
Brazil?s gross domestic product will grow 5% next year after an
estimated expansion of 0.2% in 2009.
Bloomberg News notes that the airline's yields plunged 30% in the
third quarter as it sought to win customers from larger competitor
Tam SA and discounters. ?They need to increase prices even more
because the amount they reduced prices in the third quarter wasn?t
equivalent to 12%,? the report quoted Cesar Mezomo, a senior
analyst at Victoire Finance Capital in Sao Paulo, as saying.
?It?s a first step toward future price increases. They?ve shown
the worst is behind them,? Mr. Mezomo added.
The airline, the report says, raised its market outlook for 2009 a
week ago after posting a third-quarter profit that beat analysts?
estimates. The report relates that the airline is forecasting a
14% jump this year in domestic traffic following an earlier
prediction of 2% to 4% industry growth.
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'.
INDEPENDENCIA SA: Sets 1st Meeting of Fin'l Creditors on Nov. 25
----------------------------------------------------------------
Independencia S.A., which is in judicial reorganization, pursuant
to the terms of Chapter II and Clause 9.1. of the Joint Amended
and Consolidated Plan of Reorganization approved by the General
Meeting of Creditors, calls its Financial Creditors for the First
Meeting of Financial Creditors -- MFC, to be conducted on November
25, 2009 (first call) or November 30, 2009 (second call), both
starting at 10:00 am Sao Paulo time, at Rua Hungria 1.100, Sao
Paulo, State of Sao Paulo, having the following order of the day:
(i) deliberation and voting on reasoned rejection of
Independencia?s merger with F1 Carnes e Derivados Ltda. ("F1
Carnes"), subject to the results of the legal due diligence
conducted at F1 Carnes, as established in the Consolidated Plan;
and (ii) other issues of the Interest of Independˆncia and
Financial Creditors, including but not limited to the presentation
and deliberation regarding proposals for New Financings received
until the commencement of the MFC.
The Financial Creditors may be represented by attorneys-in-fact or
proxies, provided the pertinent documentation supporting the valid
representation are sent until November 24, 2009, until 10:00 am
Sao Paulo time, to:
Fernanda Flauzino,
Av. Luiz Alli Fayrdin,
680, District of Jordanesia, Cajamar,
State of Sao Paulo,
CEP 07760- 000
e-mail: fernanda.flauzino@independencia.com.br.
In the case of Financial Creditors holding Independencia's
outstanding notes, whose notes are held in book-entry form through
The Depository Trust Company, such Financial Creditors may
participate in person, or may be represented by an attorney-
infact, at the First Meeting of Financial Creditors by presenting
until November 24, 2009, 10:00 am, a brokerage statement dated no
later than November 23, 2009, reflecting such Financial Creditors'
holdings in the outstanding notes, together with a power of
attorney or proxy in the case of those holders who will be
represented by an attorney-infact.
About Independencia SA
Independencia SA -- http://www.independencia.com.br/-- is
Brazil's fourth largest meat exporter. It filed for bankruptcy
protection earlier this year after the global economic crisis
caused exports to slump. Independencia S.A. filed its Chapter 15
petition on March 27, 2009 (Bankr. S.D. N.Y., Case No. 09-10903).
Paul R. DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP, is the
Debtor's counsel.
* * *
As of August 20, 2009, the company continues to carry Moody's Ca
LT Corp Family rating and Standard and Poor's D LT Issuer Credit
ratings.
JBS SA: In Advance Stage of Negotiation With Unnamed Investor
-------------------------------------------------------------
JBS S.A. is in an advanced stage of negotiations with an unnamed
investor interested in committing US$2.5 billion to JBS's U.S.
division, Michigan Farmers News reports.
According to the report, as a result of the company's steep
decline in earnings in the third fiscal quarter, it needs to sell
up to 26.3% of its U.S. unit to shore up its financial ratios. The
report relates that until this happens, JBS S.A.'s plan to buy
Brazilian rival Bertin cannot be completed.
As reported in the Troubled Company Reporter-Latin America on
November 13, 2009, Bloomberg News said that JBS SA's
third-quarter profit declined 78% to BRL151.5 million (US$87
million) from BRL694 million a year earlier, when the meatpacker
posted gains from currency hedges. The report related that the
company's operating profit dropped to BRL218.1 million from
BRL750.5 million in the year-earlier period. Bloomberg News added
that sales climbed 7.8% to BRL8.38 billion after JBS SA bought
companies including U.S.-based Smithfield Beef Group Inc. last
year.
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 Raises Corporate Credit Rating to 'B-' From 'CCC+'
------------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Brazil-based meat manufacturer Minerva S.A. from
'CCC+' to 'B-'. The outlook is stable.
"The rating action reflects the improving trend for the company's
credit measures due to stronger operating cash generation,
improving market conditions for both local and export meat sales,
and the measures it's taken to strengthen its financial profile.
Minerva's ability to sustain adequate liquidity throughout the
industry's downturn and the recovery in its EBITDA margins since
mid-2009 are also positive rating factors," said Standard & Poor's
credit analyst Piero Parolin.
The rating action also takes into account Minerva's recently
concluded, successful R$159 million equity offer and S&P's
expectation that its credit metrics will continue improving on
stronger cash flows in 2010.
The ratings on Minerva reflect its leveraged financial profile and
its significant interest burden which, despite efforts to reduce
interest costs, will continue hampering its ability to report
significant free cash flows. The ratings also incorporate
Minerva's dependence on the successful ramp-up of its expansions
and greenfield projects (including Minerva Dawn Farms) to maintain
improving cash flows. S&P also see as risks: the company's
exposure to the highly competitive global meat industry; its
highly leveraged financial profile; and its still-weak (though
improving) credit metrics.
These negative rating factors are partly mitigated by: Minerva's
increasingly diversified geographic asset basis; the growth of its
product portfolio through its joint-venture with Dawn Farms Food;
some improvement in its capital structure following the equity
offer; the positive trend towards gradual cash flow recovery; and
some operating flexibility in producing made-to-order products due
to its higher capacity for deboning than for slaughtering.
The stable outlook reflects S&P's expectations that Minerva's
credit metrics will continue improving and that its refinancing
risks will moderate with stronger operating profitability and cash
flows. "A positive revision of the ratings would depend on the
company's achieving more-conservative financial ratios (such as,
total debt to EBITDA below 5.0x), a sustainable adequate liquidity
position, and positive trends in its markets (both domestic and
foreign). On the other hand, S&P could downgrade Minerva if it's
not able to keep improving its results in 2010, if its cash
reserves are depleted, or if it reports higher refinancing risks
with greater-than-expected short-term debt," Mr. Parolin added.
==========================
C A Y M A N I S L A N D S
==========================
BASIS PAC-RIM: Creditors' Proofs of Debt Due on November 25
-----------------------------------------------------------
The creditors of Basis Pac-Rim Opportunity Fund (Master) are
required to file their proofs of debt by November 25, 2009, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on September 30, 2009.
The company's liquidator is:
Walkers
c/o Laura Del Fuoco
Telephone: (345) 814 4568
Facsimile: (345) 814 8268
c/o Walkers
Walker House, 87 Mary Street
Grand Cayman KY1-9001, Cayman Islands
CARASIA INCOME: Creditors' Proofs of Debt Due on November 25
------------------------------------------------------------
The creditors of Carasia Income Management are required to file
their proofs of debt by November 25, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on October 6, 2009.
The company's liquidator is:
Patrick Shaunessy
Telephone: (345) 949-5588
Facsimile: (345) 945-5772
The Crighton Building, Suite 201
256 Crewe Road, P.O. Box 1166
Grand Cayman KY1-1102
LINCOLN PARK: Creditors' Proofs of Debt Due on November 25
----------------------------------------------------------
The creditors of Lincoln Park are required to file their proofs of
debt by November 25, 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:
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
LUCERNE MID-CAP: Creditors' Proofs of Debt Due on November 25
-------------------------------------------------------------
The creditors of The Lucerne Mid-Cap Offshore Fund, Ltd. are
required to file their proofs of debt by November 25, 2009, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on October 5, 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
LUCERNE MID-CAP: Creditors' Proofs of Debt Due on November 25
-------------------------------------------------------------
The creditors of The Lucerne Mid-Cap Master Fund, Ltd. are
required to file their proofs of debt by November 25, 2009, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on October 5, 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
LUCERNE NORDIC: Creditors' Proofs of Debt Due on November 25
------------------------------------------------------------
The creditors of The Lucerne Nordic Fund, Ltd. are required to
file their proofs of debt by November 25, 2009, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on October 5, 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
LUCERNE NORDIC: Creditors' Proofs of Debt Due on November 25
------------------------------------------------------------
The creditors of The Lucerne Nordic Master Fund, Ltd. are required
to file their proofs of debt by November 25, 2009, to be included
in the company's dividend distribution.
The company commenced wind-up proceedings on October 5, 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
MITA HOLDING: Creditors' Proofs of Debt Due on November 25
----------------------------------------------------------
The creditors of Mita Holding, Inc. are required to file their
proofs of debt by November 25, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on October 9, 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
MODE INVESTMENT: Creditors' Proofs of Debt Due on December 30
-------------------------------------------------------------
The creditors of Mode Investment Ltd. are required to file their
proofs of debt by December 30, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on September 30, 2009.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
MBT Trustees Ltd.
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
OAKBROOK INVESTMENTS: Commences Wind-Up Proceedings
---------------------------------------------------
At an extraordinary general meeting held on October 7, 2009, the
members of Oakbrook Investments Limited resolved to voluntarily
wind up the company's operations.
Only creditors who were able to file their proofs of debt by
November 10, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Rose Ferguson
Telephone: (345) 949-0355
Facsimile: (345) 949-0360
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
OLD DOMINION: Creditors' Proofs of Debt Due on November 27
----------------------------------------------------------
The creditors of Old Dominion Ltd. are required to file their
proofs of debt by November 27, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on October 8, 2009.
The company's liquidator is:
Ian Stokoe
c/o Sarah Moxam
Telephone: (345) 914 8634
Facsimile: (345) 945 4237
PO Box 258, Grand Cayman KY1-1104
Cayman Islands
PARTNER RE: Creditors' Proofs of Debt Due on November 25
--------------------------------------------------------
The creditors of Partner Re Feeder Fund Ltd. are required to file
their proofs of debt by November 25, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on October 7, 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
SUCCESSOR CAL: Creditors' Proofs of Debt Due on November 27
-----------------------------------------------------------
The creditors of Successor Cal Quake Industry Ltd are required to
file their proofs of debt by November 27, 2009, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on October 7, 2009.
The company's liquidators are:
Scott Aitken
Connan Hill
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
Sylvia Lewis
Telephone: 949-7755
Facsimile: 949-7634
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
SUCCESSOR III: Creditors' Proofs of Debt Due on November 27
-----------------------------------------------------------
The creditors of Successor III Ltd are required to file their
proofs of debt by November 27, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on October 7, 2009.
The company's liquidators are:
Scott Aitken
Connan Hill
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
Sylvia Lewis
Telephone: 949-7755
Facsimile: 949-7634
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
SUCCESSOR EURO: Creditors' Proofs of Debt Due on November 27
------------------------------------------------------------
The creditors of Successor Euro Wind Ltd are required to file
their proofs of debt by November 27, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on October 7, 2009.
The company's liquidators are:
Scott Aitken
Connan Hill
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
Sylvia Lewis
Telephone: 949-7755
Facsimile: 949-7634
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
SUCCESSOR HURRICANE: Creditors' Proofs of Debt Due on November 27
-----------------------------------------------------------------
The creditors of Successor Hurricane Modeled Ltd are required to
file their proofs of debt by November 27, 2009, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on October 7, 2009.
The company's liquidators are:
Scott Aitken
Connan Hill
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
Sylvia Lewis
Telephone: 949-7755
Facsimile: 949-7634
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
SUCCESSOR IV: Creditors' Proofs of Debt Due on November 27
----------------------------------------------------------
The creditors of Successor IV Ltd are required to file their
proofs of debt by November 27, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on October 7, 2009.
The company's liquidators are:
Scott Aitken
Connan Hill
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
Sylvia Lewis
Telephone: 949-7755
Facsimile: 949-7634
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
SUCCESSOR V: Creditors' Proofs of Debt Due on November 27
---------------------------------------------------------
The creditors of Successor V Ltd are required to file their proofs
of debt by November 27, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on October 7, 2009.
The company's liquidators are:
Scott Aitken
Connan Hill
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
Sylvia Lewis
Telephone: 949-7755
Facsimile: 949-7634
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
UOARS LIMITED: Creditors' Proofs of Debt Due on November 26
-----------------------------------------------------------
The creditors of UOARS Limited are required to file their proofs
of debt by November 26, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on October 2, 2009.
The company's liquidator is:
Stuart Sybersma
c/o Jennifer Chailler
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949 7500
Facsimile: (345) 949 8258
e-mail: jchailler@deloitte.com
=============
E C U A D O R
=============
* ECUADOR: To Turn to China, Russia & Iran for Financing Need
-------------------------------------------------------------
Ecuador will turn to China, Russia and fellow OPEC member Iran for
financing needed to meet US$4.1 billion in expected borrowing next
year, Alexandra Valencia at Reuters reports, citing Finance
Minister Elsa Viteri.
According to the report, the country has been shut out of the
international capital markets since it defaulted on its global
bonds last year.
As reported in the Troubled Company Reporter-Latin America on
April 23, 2009, Bloomberg News said that President Correa skipped
a US$30.6 million payment for the country?s 12% bonds due in 2012,
calling the debt ?illegal? and ?illegitimate.? The move also sent
its bonds due 2015 and 2030 into default, the same report noted.
Argentina, the report notes, has relied largely on multilateral
lending since the 2008 default.
Reuters says the country's oil sector has been hit by lower demand
caused by the global financial crisis.
The government, the report notes, expects to receive more than
US$2.5 billion in financing from Russia to develop "strategic
sectors" of the country's economy. The report adds that Ecuador
has also signed a US$1 billion cash-for-oil deal with China, and
President Correa said he expects more bilateral deals ahead.
* * *
As reported by the Troubled Company Reporter - Latin America on
December 17, 2008, Fitch Ratings downgraded Ecuador's long-
term foreign currency Issuer Default Rating (IDR) to 'RD' from
'CCC' following the expiration of the grace period for the coupon
payment on the 2012 global bonds that was due on Nov. 15 and the
government's announcement that it will selectively default on all
global bonds. The short-term foreign currency rating was
downgraded to 'D' from 'C'. The country ceiling remains at 'B-'.
=============
J A M A I C A
=============
IBEROSTAR ROSE HOTEL: Dispute With Workers Back at Labor Ministry
-----------------------------------------------------------------
Iberostar Rose Hall Beach Hotel's management in St. James and the
University and Allied Workers (UAWU) has been called by the
Ministry of Labour to settle the four-month dispute, RadioJamaica
reports.
According to the report, the Ministry has called the parties after
UAWU wrote to Labour Minister Pearnel Charles requesting for a
meeting in order to resolve the protracted dispute over the
management's decision to make workers' positions redundant, to
which the hotel claimed were necessary. However, the report
relates, that in a letter to the management, UAWU Vice President
said that the union had received information that the hotel is
fully booked until January next year.
RadioJamaica notes that the management claimed that all
supervisory employees have been called back to work while workers
who accepted termination letters and redundancy pay had also been
rehired by Iberostar.
As reported in the Troubled Company Reporter-Latin America on
September 1, 2009, RadioJamaica said that the IBEROSTAR Hotels &
Resorts, which was opened in 2007, one of three hotels on the
Spanish chain's property in Montego Bay, was closed on September
1, due to low occupancy.
About IBEROSTAR Hotels & Resorts
IBEROSTAR Hotels & Resorts -- http://www.iberostar.com-- is the
hotel division of Iberostar Group, is one of the most renowned
Spanish hotel chains at the global level. Founded by the Fluxa
family in Palma de Mallorca (Balearic Islands, Spain) in 1986, it
has come to offer top-level accommodation in major travel
destinations around the world. As a brand name, IBEROSTAR is
synonymous with quality in the fifteen countries where it
operates, providing outstanding service and personal assistance to
ensure full guest satisfaction. With a star as its symbol, the
chain has managed to win over customers with its philosophy and
values, and its efficient, professional staff.
DIGICEL GROUP: Records US$857 Million Half-Year Profit
------------------------------------------------------
Digicel Group reported a 10% increase in its half year profit
(EBITDA) to US$364 million on revenues of US$857 million. Digicel
has grown its subscriber base by 7% in the past 12 months to
7.3 million, and in its most recent quarter to September 30, 2009,
it added 98,000 subscribers.
Colm Delves, Digicel Group CEO, comments, ?These results
demonstrate a strong start to the financial year with Digicel
increasing profits and subscribers even in a tough economic
climate. Despite increased competition, Digicel is winning market
share as customers continue to prefer the better value offered by
Digicel?s Bigger, Better Network.?
Digicel?s revenues for the six months to September 30 were US$857
million -- growing 3% in constant currency terms. Digicel?s
EBITDA margin* for the most recent quarter was 44% -- the fifth
successive quarter it has been at or over 40%.
Mr. Delves added, ?We have demonstrated that with disciplined cost
control and relentless focus on giving customers what they want,
companies can continue to thrive even in challenging times.?
In the first six months of this financial year, Digicel has
announced several other initiatives and achievements:
-- On July 7, Digicel completed a US$160 million high-yield
bond issue that was more than two times over-subscribed,
demonstrating the company?s continued good standing in
capital markets.
-- On September 2, Digicel disclosed its plans to launch a
consumer WiMax business in Jamaica, bringing a cost
effective, fast and easy to access broadband solution to
a poorly served market.
-- On September 11, Digicel disclosed the acquisition of
Orange Dominica, a subsidiary of France Telecom.
-- On September 28, Digicel has been shortlisted for
two awards at the prestigious World Communications
Awards 2009.
-- On October 27, Digicel disclosed its intention to move
its Jamaica and Group offices to a brand new facility on
the waterfront in downtown Kingston, demonstrating its
commitment to spearhead the rejuvenation of this area of
the capital city of the first country in which Digicel
launched back in 2001.
The numbers outlined above relate to Digicel Group Limited which
operates in 24 markets in the Caribbean and in El Salvador.
About Digicel Group
Digicel Group -- http://www.digicelgroup.com-- is renowned for
competitive rates, unbeatable coverage, superior customer care, a
wide variety of products and services and state-of-the-art
handsets. By offering innovative wireless services and community
support, Digicel has become a leading brand across its 31 markets
worldwide.
Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide. Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos. The Caribbean company also has coverage
in St. Martin and St. Barths. Digicel Pacific comprises Fiji,
Papua New Guinea, Samoa, Tonga and Vanuatu.
* * *
As of June 25, the company continues to carry these low ratings
from Moody's:
-- LT Corp Family Rating at B2
-- Senior Undecured Debt Rating at Caa1
-- probability of Default at B2
* JAMAICA: Moody's Junks Government Bond Ratings to Caa1
--------------------------------------------------------
Moody's Investors Service downgraded Jamaica's local and foreign
currency government bond ratings to Caa1 from B2, as options to
restore debt sustainability without a debt restructuring are
narrowing despite the strong resolve of the authorities to avoid a
rescheduling. Delays in reaching an IMF agreement are also an
issue of concern. The outlook on the new ratings is negative.
"After several months of negotiations with the IMF and various
statements indicating progress, there are signs that an agreement
with the IMF may not be within reach yet," said Alessandra Alecci,
a Moody's Vice-President/Senior Analyst. "Such agreement is
crucial to maintain confidence, meet this year's government's
funding needs and provide foreign currency inflows to sustain the
external position," she added.
"Even though an IMF program would probably give some much-needed
breathing room to the fiscal position, the size of the public debt
is such that Jamaica is unlikely to restore debt sustainability in
the medium-term without some sort of meaningful debt restructuring
at some point," Ms. Alecci said.
Over the past several years, attempts to place the public debt on
a more sustainable path via painful fiscal adjustments and
strategies aimed at accelerating economic growth have proved
largely unsuccessful. Jamaica's public debt-to-GDP ratio
consistently remained above 100% over the past decade, with debt
to revenues standing at around 400%.
Although no official details about a possible restructuring have
been disclosed, Ms. Alecci said, the very high cost of servicing
Jamaica's debt -- estimated at over 55% of central government
revenues and at 16% of GDP this fiscal year -- may force the
authorities to enter into discussions with local creditors.
"Jamaica's willingness to honor its obligations has remained
unusually strong for a country facing such significant fiscal
challenges," said Ms. Alecci. "The government has never
defaulted, opting instead to run high primary surpluses in recent
years, some in the order of 10% of GDP," she added.
The latter has come at the cost of slashing public investment, a
condition that has contributed to very low economic growth, with
GDP growth averaging only 1.1% annually during the decade prior to
this crisis.
If a debt restructuring were to take place, estimating potential
losses to investors involves an extremely difficult exercise.
Still, the current Caa1 rating takes into consideration that as
the majority of the debt is held by local financial institutions,
a potential restructuring would likely attempt to strike a balance
between a meaningful cash flow alleviation and preserving the
health of the financial system.
"Accordingly, Moody's decision to place Jamaica's rating at the
top of the Caa range reflects the expectation that, if a debt
restructuring were indeed to materialize, it would likely involve
limited losses," said Alecci.
She said the negative outlook reflects uncertainty associated with
the potential consequences of protracted delays in reaching a
final agreement with the IMF. Such a situation would lead to a
loss of confidence that could negatively affect the exchange rate
and exert upward pressures on domestic interest rates. If these
conditions were to materialize, they could create a situation in
which the government's liquidity would be stretched and investors
would face higher losses as the decision to restructure debt would
be made under duress.
Other ratings affected included downgrades of the foreign-currency
country ceiling for bonds to B1 from Ba3 and the foreign-currency
ceiling for deposits to Caa1 from B3, both with a negative
outlook. The local-currency country ceiling for bonds was also
downgraded to Baa2 from A3, and the local-currency ceiling for
deposits to Baa2 from Baa1.
The last change to Jamaica's ratings was implemented on March 4,
2009, when the government's B1 foreign-currency and Ba2 local-
currency bond ratings were downgraded to B2.
===========
M E X I C O
===========
GRUPO MEXICO: Calls Dec. 4 Shareholder Meeting to OK ASARCO Plan
----------------------------------------------------------------
Daily Bankruptcy Review and Dow Jones Newswires report that Grupo
Mexico SAB said Thursday it has called a shareholders' meeting
December 4 to seek approval of its restructuring plan for U.S.
copper-mining
subsidiary Asarco LLC.
According to Dow Jones, Grupo Mexico said in a filing with the
Mexican Stock Exchange shareholders will be asked to approve its
financing plan for Asarco.
Dow Jones' Ken Parks relates Grupo Mexico's plan requires it to
put up US$2.2 billion in cash and issue a promissory note to
Asarco's asbestos creditors for US$280 million. Grupo Mexico said
that to finance the US$2.2 billion cash contribution it has
committed $800 million and lined up $1.4 billion in loans from
four financial institutions, Mr. Parks
adds.
As reported by the Troubled Company Reporter on November 18, 2009,
Judge Andrew S. Hanen of the U.S. District Court for the Southern
District of Texas confirmed on November 13, the Plan of
Reorganization submitted by Asarco Incorporated and Americas
Mining Corporation for ASARCO LLC, Southern Peru Holdings, LLC,
AR Sacaton, LLC, and ASARCO Master, Inc.
After months of battling to gain control of ASARCO LLC's
business, which has been churning out profits despite being in
bankruptcy, Judge Hanen chose the Parent's Plan backed by Grupo
Mexico SAB de C.V. over the Debtors' Plan sponsored by Sterlite
(USA), Inc., and Vedanta Resources plc, to the disappointment of
the Debtors' workers, the United Steelworkers of America AFL-CIO-
CLC, and several governmental agencies, who supported the
Debtors' Plan.
A full-text copy of 135-page District Court ruling on the ASARCO
plan is available for free at:
http://bankrupt.com/misc/ASARCO_Plan_Ruling_111309.pdf
Bankruptcy Court Judge Richard S. Schmidt twice issued a report
and recommendation for the District Court to confirm the Parent
Plan. Judge Hanen, however, gave ASARCO and Sterlite a chance to
defend their Plan. The Competing Plans provide full payment for
all creditors.
Judge Hanen also reaffirmed what Judge Schmidt has said before --
that "even if the Debtors' Post-Confirmation Plan were
considered, the Parent's Plan remains superior under Section
1129(c) analysis."
Each of ASARCO and Grupo Mexico released statements regarding
Judge Hanen's ruling. USW also released its own statement,
criticizing the ruling. The USW and the Debtors' workers
previously threatened to strike if the Mexican miner regains
control of ASARCO.
Among the major issues hurled against the confirmation of the
Parent Plan is Plan's alleged violation of the special
successorship clause of the 2007 collective bargaining agreement
between the USW and ASARCO LLC. The SSC requires that in the
event of a change of control, which is defined to include a plan
of reorganization, the buyer must recognize the USW and negotiate
a new CBA.
Judge Hanen, however, opined that:
(a) the lack of a CBA does not bar confirmation of the
Parent's Plan;
(b) the SSC does not apply because exigent circumstances
exist; and
(c) the possibility of a strike does not make the Parent's
Plan infeasible.
"This presents to the [District] Court (as it surely did to the
Bankruptcy Court) a dilemma," Judge Hanen admitted on the SCC
issue. The District Court, however, ruled that the Parent's Plan
fully complies with Sections 1122 and 1123 of the Bankruptcy
Code, and the requirements for confirmation set forth under
Section 1129 of the Bankruptcy Code, and that the Parent has
complied with the disclosure requirements set forth under Section
1125 of the Bankruptcy Code.
The District Court finds that the existing CBA remains in effect
until June 30, 2010, and that the Parent has agreed to extend the
existing Collective Bargaining Agreement until June 30, 2011.
Judge Hanen, hence, ordered the Parent to keep open for
acceptance by USW until 5:00 p.m., on February 26, 2010, (i) its
offer to extend the CBA for one year through June 30, 2011, and
(ii) all other offers or stipulations made during the bankruptcy
process, including a seat on the Board of Directors of
Reorganized ASARCO for a representative of the Unions.
Judge Hanen has directed the Parent to make a comprehensive
proposal to the USW no later than January 15, 2010, after
reviewing the Parent's post-confirmation hearing advisory
regarding the status of its negotiations with the Union. He
previously set the deadline for November 24, 2009.
A full-text copy of the Parent's advisory can be obtained for
free at http://bankrupt.com/misc/ASARCO_CBA_Advisory_11122009.pdf
The Parent has asserted, among other things, that (i) the issues
in dispute between the Parent and the Union are not susceptible
to easy or quick resolution, and (ii) substantial operational and
financial information must be collected and analyzed to evaluate
the Existing CBA and make informed decisions about long term
commitments that can prudently be made in a successor labor
agreement.
In a separate order, Judge Hanen said that consistent with
Confirmation Order, as well as the authority under Section 157(d)
of the Judicial and Judiciary Procedures Code, the District Court
retains jurisdiction over any contested, disputed, or adversary
matter related to:
(a) any of the injunctions issued under the Confirmation
Order;
(b) implementation, consummation and effectuation of the
Confirmation Order;
(c) labor issues, including the approval of any future agreed
collective bargaining agreement; and
(d) interpretation, construction and enforcement of the
Confirmation Order.
To the extent other matters are currently pending or will be
pending in the future, Judge Hanen noted that those matters will
remain to be referred to the Bankruptcy Court for adjudication
pursuant to established bankruptcy procedures.
Reorganized ASARCO
The Debtors will be deemed consolidated under the Parent's Plan,
solely for the limited purposes of voting and distribution under
the Parent's Plan. Mark Roberts of Alvarez & Marsal Holdings,
LLC, is appointed to serve as the Parent's Plan Administrator.
Carlos Ruiz Sacristan, Agustin Santamarina and Jorge Lazalde
Psihas are appointed to serve as members of the Board of
Directors of Reorganized ASARCO from and after the Plan Effective
Date.
The Board of Reorganized ASARCO is to be expanded to include a
representative of USW, to be chosen by the USW, if USW elects to
accept the Parent's offer to extend the Collective Bargaining
Agreement through June 30, 2011. Manuel E. Ramos Rada and Oscar
Gonzalez Barron are appointed to serve as officers of Reorganized
ASARCO from and after the Effective Date.
On the Effective Date, the Section 524(g) Trust will be
established in accordance with the Parent's Plan Documents.
To induce, preserve and promote the settlements contemplated by
and provided for in the Parent's Plan, and pursuant to Section
524(g) of the Bankruptcy Code, all Asbestos Personal Injury
Claims and Demands will be channeled to the Section 524(g) Trust,
and all holders of Asbestos Personal Injury Claims and all
Entities that have held or asserted any Asbestos Personal Injury
Claim will be permanently and forever stayed, restrained and
enjoined from taking any action against any ASARCO Protected
Party with respect to the Asbestos Personal Injury Claim.
Comments on Hanen Ruling
"We compliment the judges in this case for their professionalism
and effort over years to effect a resolution that is in the best
interest of all creditors," said Joseph F. Lapinsky, President and
Chief Executive Officer of ASARCO LLC. "Our Board of Directors,
employees, outside counsel and consultants as well as the
Unsecured and Asbestos Creditors and U.S. Department of Justice
working with federal and state creditors have all worked very hard
to achieve this successful outcome," he added.
"The USW is certainly disappointed with the District Court's
decision. We are reviewing the 135-page decision, as well as our
legal and other options," said Robert LaVenture, Director of USW
District 12 and union chairman of bargaining with ASARCO. "It
appears that the District Court committed the same error as the
Bankruptcy Court by disregarding contractual provisions that
protect employee rights and benefits in the event of a sale or
other change in control."
Grupo Mexico and the USW engaged in bargaining earlier this
year in an effort to reach a new agreement, but the parties have
not met since July 24, when the USW submitted a comprehensive
proposal.
"Our July 24th proposal provides for a long-term agreement that
protects American jobs and keeps profits earned by American
workers in the company," said Mr. LaVenture. "Grupo Mexico never
offered a counter to our July 24 proposal and instead, mainly
chose to communicate its bargaining position through court
filings and the statements of its bankruptcy lawyers."
"ASARCO has thrived outside of Grupo Mexico's control, and all
stakeholders -- workers and retirees, small businesses that supply
goods and services to the mines and smelters, local governments
that depend on ASARCO tax revenues and federal and state
governments that expect ASARCO to be a good steward of its
environmental obligations -- should be concerned about the
possibility of Grupo Mexico regaining control of this business,"
said Mr. LaVenture.
Speaking directly to ASARCO's workers, Mr. LaVenture said, "The
Steelworkers and other union workers who work at ASARCO deserve
all of the credit for the company's success in the past four
years. Should Grupo Mexico follow through and regain control of
ASARCO, we will need to stand together in solidarity once again
to preserve the benefits we have negotiated."
The USW represents approximately 850,000 workers in the United
States and Canada and is the largest union representing workers in
the copper industry.
About ASARCO LLC
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.
ASARCO LLC filed for Chapter 11 protection on August 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack
L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts
L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq.,
and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth,
P.C., represent the Debtor in its restructuring efforts. Paul M.
Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq.,
at Reed Smith LLP give legal advice to the Official Committee of
Unsecured Creditors and David J. Beckman at FTI Consulting, Inc.,
gives financial advisory services to the Committee.
When ASARCO LLC filed for protection from its creditors, it listed
US$600 million in total assets and US$1 billion in total debts.
ASARCO LLC has five affiliates that filed for Chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos.
05-20521 through 05-20525). They are Lac d'Amiante Du Quebec
Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company,
Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. Details
about their asbestos-driven Chapter 11 filings have appeared in
the Troubled Company Reporter since April 18, 2005.
Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-
21346) also filed for Chapter 11 protection, and ASARCO has asked
that the three subsidiary cases be jointly administered with its
Chapter 11 case. On October 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.
ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on December 12, 2006. (Bankr. S.D. Tex. Case No.
06-20774 to 06-20776).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by ASARCO LLC and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
=======
P E R U
=======
DOE RUN PERU: Says Activos Mineros Liable for La Oroya Clean-Up
---------------------------------------------------------------
The Doe Run Peru said that it is the reporponsiblity of state firm
Activos Mineros, the public entity responsible for cleaning up
mining liabilities as a result of state participation in the
sector, to clean up pollution sites in La Oroya, Poder360.com
reports. The report relates that Doe Run figured that it is
completely the state's responsibility to resolve this
environmental damage.
According to the report, the general manager of Activos Mineros,
Victor Carlos Estrella indicated that due to the transfer contract
signed when the state firm Centromin sold its metallurgical
complex in La Oroya to Doe Run in 1996, the state is only
responsible for all environmental liabilities generated on sites
until October of that year. The report relates Mr. Estrella said
that the damages subsequent to the signing will be assumed by the
state so long as DRP complies satisfactorily with its
Environmental Management Adjustment Program and doesn't go beyond
the pollution levels of Centromin when it operated in La Oroya.
As reported in the Troubled Company Reporter-Latin America on
October 1, 2009, AMM News said that a Doe Run Peru spokesman said
that the company will delay the reopening of its smelter following
reports that Peru's congress voted to give the comany a 30-month
extension on its environmental cleanup deadline, which expired on
October. The report recalls that Doe Run Peru filed for a
government-monitored financial restructuring because it was
worried creditors might try to freeze its assets or operations.
Reuters related that Doe Run Peru owes some US$100 million to its
suppliers and needs to spend another US$150 million to clean up La
Oroya.
About Doe Run Peru
Doe Run Peru operates an integrated primary lead operation and a
recycling operation located in Missouri, referred to as Buick
Resource Recycling. Fabricated Products operates a lead
fabrication operation located in Arizona and a lead oxide
business located in Washington.
* * *
As of May 21, 2009, the company continues to carry Moody's bank
financial strength at D- and Fitch Ratings individual rating at D.
=================
V E N E Z U E L A
=================
* VENEZUELA: 2009 GDP May Shrink 2.2%, Finance Ministry Says
------------------------------------------------------------
Jose Orozco and Daniel Cancel at Bloomberg News report that
Venezuelan Finance Minister Ali Rodriguez said that the economy
may shrink 2.2% in 2009, slashing an earlier forecast for zero
growth after falling oil output pulled the economy into its first
recession since 2003.
As reported in the Troubled Company Reporter-Latin America on
November 18, 2009 Bloomberg News said that Venezuela's economy
fell into recession this year as gross domestic product contracted
for the second consecutive quarter in the three months through
September. The report, citing the central bank, related that the
economy shrank 4.5% in the third quarter from a year earlier after
manufacturing and retail sales plunged. According to the report,
Venezuela's private sector has atrophied this year as the
government cut back on dollars available at the official exchange
rate and consumption fell
?We estimate that the slowdown this year could reach 2.2%,? Mr.
Rodriguez told Bloomberg News in an interview. ?We had set out to
reach zero percent growth, it has not been possible,? he added.
According to the report, Venezuela's economy contracted after
prices for oil, which accounts for half of Venezuela?s fiscal
spending and more than 90% of its exports, slumped on
international markets. The report relates that Venezuelan
businesses have struggled this year after the government cut back
on dollars available at the official exchange rate of VEB2.15 per
dollar, pushing importers to the parallel market.
The economic contraction and surging consumer prices, which rose
29% in October, are signs that the economy is showing growing
symptoms of stagflation and so-called Dutch disease, Alberto
Ramos, an economist at Goldman Sachs Group Inc. in New York said
in a research note obtained by the news agency.
* * *
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.
========================
V I R G I N I S L A N D
========================
K1 GLOBAL: Hires Grant Thornton to Oversee Liquidation
------------------------------------------------------
Josh Fineman and Saijel Kishan at Bloomberg News report that
K1 Global Ltd., a fund of K1 Group based in the British Virgin
Islands, hired Grant Thornton to help it liquidate.
According to Bloomberg, K1 Global had EUR173 million
(US$258.7 million) under management as of July 31.
Bloomberg recalls K1 Invest Ltd., a separate K1 Group fund, hired
Grant Thornton as its liquidator earlier this month. K1 Invest
had EUR248 million as of July 31, Bloomberg notes.
"As with K1 Invest, the relationship between K1 Global and
the K1 Group is as yet unclear," Bloomberg quoted Grant Thornton
as saying an e-mailed statement. "We are in the course of
contacting the German authorities as a matter of urgency to try
and gain some visibility on the current situation and have
commenced investigations into the financial position and affairs
of the fund."
K1 Group is at the center of an international criminal probe after
saddling banks including Barclays Plc, JPMorgan Chase & Co. and
BNP Paribas SA with about US$400 million of losses, Bloomberg
discloses citing people with knowledge of the probe. Bloomberg
says European and U.S. authorities are examining whether K1
founder Helmut Kiener, who helps manage funds of hedge funds,
deceived the banks when borrowing money to inflate investments.
In a Nov. 13 report Bloomberg disclosed Mr. Kiener lost a bid to
have a German court order his release from pretrial detention.
According to Bloomberg, Helga Mueller, a spokeswoman for the
Wuerzburg Regional Court, said Nov. 13 Mr. Kiener is a flight risk
and the evidence against him so far strongly suggests that he has
committed four counts of fraud and breach of trust. Bloomberg
noted in a filing to the court, Mr. Kiener denied wrongdoing and
said he never violated investment rules as each step was approved
by the banks concerned.
***********
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 * * *