/raid1/www/Hosts/bankrupt/TCRLA_Public/100401.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, April 1, 2010, Vol. 11, No. 064
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L: Investors Can Sue Third Parties to Recover Money
STANFORD INT'L: Owner Wants New Attorneys to Represent Him
TELECOM ARGENTINA: S&P Withdraws 'B' Corporate Credit Ratings
* ARGENTINA: Moody's Assigns 'B2' Rating on Buenos Aires' Notes
B A H A M A S
ULTRAPETROL SA: Posts US$220.5 Million Revenues in 2009
B E R M U D A
CENES (BERMUDA): Creditors' Proofs of Debt Due on April 7
CENES (BERMUDA): Members to Receive Wind-Up Report on April 28
B R A Z I L
GOL LINHAS: To Launch Scheduled Service to Punta Cana
GOL LINHAS: Posts Additional Information on Financial Estimates
LUPATECH SA: Inks R$150MM Pipe Lining Supply Contract W/ Petrobras
LUPATECH SA: Creates Lupatech Oilfield Services Company
USINAS SIDERURGICAS: Moody's Affirms Ratings on Various Notes
C A Y M A N I S L A N D S
ABSOLUTE VI: Shareholders to Receive Wind-Up Report on April 16
AIRPORT DEVELOPMENT: Shareholders Receive Wind-Up Report
ALMOCA INVESTMENTS: Shareholders' Final Meeting Set for April 16
BGI EOS: Shareholders to Receive Wind-Up Report on April 16
BGI EOS: Shareholders to Receive Wind-Up Report on April 16
BLUE OAR: Shareholders Receive Wind-Up Report
BLUE OAR: Shareholders Receive Wind-Up Report
CAMULOS CAPITAL: Wins Liquidation Battle Against Angry Investor
CEDAR MASTER: Shareholders' Final Meeting Set for April 15
CONTEXT/TQA CONVERTIBLE: Shareholders' Meeting Set for April 16
CREDIT LINKED: Shareholders Receive Wind-Up Report
CREDIT LINKED: Shareholders to Hear Wind-Up Report on April 16
CREDIT LINKED: Shareholders to Hear Wind-Up Report on April 16
CREDIT LINKED: Shareholders to Hear Wind-Up Report on April 16
DB HENLOW: Shareholder to Receive Wind-Up Report on April 30
MOSAIC EUROPE: Shareholder to Hear Wind-Up Report on April 13
PALLAS VI: Shareholders to Hear Wind-Up Report on April 16
PLAINFIELD DIRECT: Shareholders to Hear Wind-Up Report on April 15
PLAINFIELD DIRECT: Shareholders to Hear Wind-Up Report on April 15
SAPPHIRE CDO: Shareholders to Hear Wind-Up Report on April 16
STORES FUNDING: Shareholder to Receive Wind-Up Report on April 30
SUPPLI INVESTMENTS: Shareholder to Hear Wind-Up Report on April 30
TRIUMPH COMPANY: Shareholders to Hear Wind-Up Report on April 6
UBS AIS: Members to Receive Wind-Up Report on April 8
UBS AIS: Members to Receive Wind-Up Report on April 8
UBS AIS: Members to Receive Wind-Up Report on April 8
UBS AIS: Members to Receive Wind-Up Report on April 8
UBS GLOBAL: Members to Receive Wind-Up Report on April 8
UBS GLOBAL: Members to Receive Wind-Up Report on April 8
UBS NEUTRAL: Members to Receive Wind-Up Report on April 8
ZAIS SCEPTICUS: Shareholder to Hear Wind-Up Report on April 14
C H I L E
EMPRESAS IANSA: Fitch Affirms 'B-' Issuer Default Rating
E C U A D O R
* ECUADOR: Chevron Wins US$700 Million Oil Case
J A M A I C A
AIR JAMAICA: NWU Uncertain on Airline Readiness for April 12
AIR JAMAICA: CEO Says "Divestment Still on Track"
AIR JAMAICA: No Visa Cancellation for Airline Staff
JAMAICA PUBLIC SERVICE: CEO Takes Charge of Financial Unit
UNITED CHURCH IN JAMAICA: Tax Department Erred in Seizing Assets
WINDALCO: Reaches Redundancy Payments Agreement With NWU
M E X I C O
BARCLAYS BANK: Moody's Gives Stable Outlook; Keeps 'D' Rating
CEMEX SAB: Canning Wins Contract at Bramshill Quarry
VITRO SAB: Makes Revised Proposal to Restructure Defaulted Debt
P A N A M A
MULTIBANK INC: S&P Raises Counterparty Credit Rating to 'BB'
P E R U
BANCO DE CREDITO: Peru's National Industry to Reach 5% Growth
V E N E Z U E L A
FERTINITRO FINANCE: Fitch Retains 'CCC' Rating on $250 Mil. Bonds
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
===============================
STANFORD INT'L: Investors Can Sue Third Parties to Recover Money
----------------------------------------------------------------
Laurel Brubaker Calkins and Andrew M. Harris at Bloomberg News
report that a under a recent agreement, the committee of investors
allegedly swindled by Robert Allen Stanford can sue third parties
to recover some of their money if Stanford Financial Group court-
appointed receiver, Ralph Janvey, declines to file these suits
himself. The report recalls that the Dallas judge overseeing the
U.S. Securities and Exchange case against Mr. Stanford had blocked
investors from filing such third-party actions, ruling that only
Mr. Janvey had that right.
According to the report, citing a statement released jointly by
the receiver and Morgenstern & Blue LLC of New York, Peter
Morgenstern, a lawyer for some Stanford investors, said that "this
agreement recognizes the legitimate rights of Stanford's investors
to participate in the receivership process, including the pursuit
of assets and lawsuits aimed at recovering funds." The report
notes that Mr. Morgenstern was one of the primary lawyers pushing
U.S. District Judge David Godbey, who oversees the SEC case, to
convert the Stanford receivership into a bankruptcy proceeding.
the agreement resolves that dispute, and gives investors a formal
voice in the receivership proceedings, Mr. Morgenstern said, the
report relates.
"We have essentially obtained all of the benefits of a bankruptcy
filing for the victims while accommodating the receiver's
legitimate concerns about the potential difficulties that such a
filing would pose," Mr. Morgenstern said in the joint statement
obtained by Bloomberg News. The report relates Mr. Janvey said in
the joint statement that the deal will allow him to work with the
investors' committee "to provide the greatest return possible to
those injured by the Stanford fraud."
Bloomberg News says that the newly created seven-member investors'
committee will initially be led by Dallas lawyer John Little, who
is the court-appointed examiner representing Stanford investors in
the SEC case. The report relates that also serving on the
committee will be Dallas investor Angela Shaw, founder of the
Stanford Victims Coalition.
The agreement and proposed by-laws for the investors' committee
were submitted to Judge Godbey for approval, the report adds.
About Stanford International Bank
Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement. Stanford Private Wealth Management serves more
than 70,000 clients in 140 countries.
On February 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control. The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.
The U.S. Securities and Exchange Commission, on Feb. 17, 2009,
charged before the U.S. District Court in Dallas, Texas, Mr.
Stanford and three of his companies for orchestrating a
fraudulent, multi- billion dollar investment scheme centering on
an US$8 billion Certificate of Deposit program.
A criminal case was pursued against him in June 2009 before the
U.S. District Court in Houston, Texas. Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice. Assistant Attorney General
Lanny Breuer, as cited by Agence France-Presse News, said in a 57-
page indictment that Mr. Stanford could face up to 250 years in
prison if convicted on all charges. Mr. Stanford surrendered to
U.S. authorities after a warrant was issued for his arrest on the
criminal charges.
The criminal case is U.S. v. Stanford, H-09-342, U.S. District
Court, Southern District of Texas (Houston). The civil case is SEC
v. Stanford International Bank, 3:09-cv-00298-N, U.S. District
Court, Northern District of Texas (Dallas).
STANFORD INT'L: Owner Wants New Attorneys to Represent Him
---------------------------------------------------------
Juan A. Lozano at The Associated Press reports that Robert Allen
Stanford, in motion filed March 30, is again asking for new
attorneys, his fourth set of lawyers in less than a year.
The AP notes that Mr. Stanford is asking to now be represented by
Houston, Texas-based attorneys Michael Essmyer and Robert Bennett.
According to the report, Kent Schaffer, who along with George
Secrest currently represent Mr. Stanford, said they are more than
happy to step aside because there was tremendous conflict between
them and Mr. Stanford over how the case should be tried. "Mr.
Secrest and I believe our strategy in trying the case is
important," the report quoted Mr. Schaffer as saying. "Mr.
Stanford has his own ideas. We're happy he's found lawyers who
want to do it the way he wants to do it," he added.
U.S. District Judge David Hittner, the report says, ordered a
hearing on Mr. Stanford's request be held on April 6.
Mr. Essmyer, the report discloses, said that if he and Bennett are
appointed, they "probably plan" on filing a motion to have
Stanford's trial moved out of Houston because of the intense
publicity in the case.
About Stanford International Bank
Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement. Stanford Private Wealth Management serves more
than 70,000 clients in 140 countries.
On February 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control. The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.
The U.S. Securities and Exchange Commission, on Feb. 17, 2009,
charged before the U.S. District Court in Dallas, Texas, Mr.
Stanford and three of his companies for orchestrating a
fraudulent, multi-billion dollar investment scheme centering on
an US$8 billion Certificate of Deposit program.
A criminal case was pursued against him in June 2009 before the
U.S. District Court in Houston, Texas. Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice. Assistant Attorney General
Lanny Breuer, as cited by Agence France-Presse News, said in a 57-
page indictment that Mr. Stanford could face up to 250 years in
prison if convicted on all charges. Mr. Stanford surrendered to
U.S. authorities after a warrant was issued for his arrest on the
criminal charges.
The criminal case is U.S. v. Stanford, H-09-342, U.S. District
Court, Southern District of Texas (Houston). The civil case is SEC
v. Stanford International Bank, 3:09-cv-00298-N, U.S. District
Court, Northern District of Texas (Dallas).
TELECOM ARGENTINA: S&P Withdraws 'B' Corporate Credit Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has withdrawn its
'B' local and 'B-' foreign currency corporate credit ratings on
Argentina-based Telecom Argentina S.A. at the company's request
after the prepayment of all of its capital market debt on an
individual basis.
* ARGENTINA: Moody's Assigns 'B2' Rating on Buenos Aires' Notes
---------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating (global scale)
to the Series 08 notes issued by the City of Buenos Aires for up
to US$475 million, paying an annual interest rate of 12.5%.
The city's foreign currency rating of B2 is constrained by
Argentina's foreign currency country ceiling, currently B2. At
the same time, Moody's Latin America has assigned a rating of
Aa3.ar (Argentine national scale) to the new notes.
The notes are scheduled to mature in April 2015 and are to be
offered under the city's Medium Term Note Program, which is
currently limited to a maximum authorized amount of
US$1.4 billion. The notes, which will pay interest at a fixed
rate on a semi-annual basis, are direct, unconditional, unsecured
and unsubordinated obligations of the city ranking at all times
pari passu without any preference among themselves.
"The rating assigned to the Series 08 notes, equivalent to the
Argentine foreign currency country ceiling for bonds, reflects the
city's broad economy, which generates incomes far higher than the
national average, and relatively low debt levels that have been
reduced steadily since 2003," said Moody's Associate Analyst
Patricio Esnaola. "Debt levels remain low, though with a large
share of foreign currency debt, exposing the city to devaluation
risk."
Even though operating revenues are highly sensitive to economic
cycles, he said, the city benefits from a high own-source revenue
base that contributes to financial flexibility.
"Buenos Aires' position relative to national peers reflects a high
degree of financial flexibility fed by a strong own-source revenue
base and significantly lower debt levels", said Mr. Esnaola.
"However, the city's credit profile also reflects serious credit
risks stemming from economic uncertainty and the need to resist
ongoing spending pressures, especially from personnel costs."
Continued application of prudent fiscal policies remains a
necessary condition for debt stabilization matching revenue and
expenditure growth, explained the Moody's analyst.
The ratings are also constrained, he said, by the operating
environment for regional and local governments in Argentina, which
is characterized by a GDP per capita that is high for a developing
country, very high GDP volatility, and a very low ranking on the
World Bank's Government Effectiveness Index, indicating a high
level of systemic risk.
"This environment is wed to an institutional framework under which
regional and local governments carry significant responsibility
for public services while nearly all rely heavily on federal
automatic transfers of the tax share regime, suggesting a low
level of fiscal flexibility in relation to revenue," said Mr.
Esnaola.
Moody's Argentina National Scale ratings are opinions of the
relative creditworthiness of issuers and issues within Argentina
and are not globally comparable. The Moody's Global Scale rating
allows investors to compare the province's creditworthiness to all
other issuers in the world. It incorporates all Argentina-related
risks, including the potential volatility of the Argentine
economy.
=============
B A H A M A S
=============
ULTRAPETROL SA: Posts US$220.5 Million Revenues in 2009
-------------------------------------------------------
Ultrapetrol (Bahamas) Limited posted its financial results for the
fourth quarter and full year ended December 31, 2009.
The company recorded full year 2009 revenues of US$220.5 million.
The company recorded adjusted EBITDA of US$57.1 million in 2009.
The company posted total adjusted net loss and adjusted EPS of
US$(9.2) million and US$(0.31), respectively, in 2009, which
excludes the effect of a non-cash loss of US$25.0 million
corresponding to an impairment charge of the Princess Marisol as
well as the effect of a US$5.6 million provision for unrealized
foreign exchange rate gains on U.S. dollar-denominated debt of our
Brazilian subsidiary in the Offshore Supply Business;2
Ultrapetrol (Bahamas) Limited posted revenues of US$49.4 million
in the fourth quarter of 2009. The company recorded adjusted
EBITDA of US$7.6 million for the fourth quarter of 2009.
In the fourth quarter, the company posted total adjusted net loss
and adjusted EPS of US$(10.6) million and US$(0.36), respectively,
in 2009, which excludes the effect of a non-cash loss of US$25.0
million corresponding to an impairment test of the book value of
the Princess Marisol and the effect of a US$500,000 provision for
unrealized foreign exchange rate gains on U.S. dollar-denominated
debt of the Company's Brazilian subsidiary in the Offshore Supply
Business.
A full-text copy of the company's financial results is available
free at http://ResearchArchives.com/t/s?5d01
About Ultrapetrol
Ultrapetrol -- http://www.ultrapetrol.net/-- is an industrial
transportation company serving the marine transportation needs of
its clients in the markets on which it focuses. It serves the
shipping markets for grain, forest products, minerals, crude oil,
petroleum and refined petroleum products, as well as the offshore
oil platform supply market with its extensive and diverse fleet of
vessels. These include river barges and pushboats, platform
supply vessels, tankers and oil-bulk-ore/capesize vessels.
* * *
As reported in the Troubled Company Reporter-Latin America on
September 1, 2009, Standard & Poor's Rating Services said that it
revised its outlook on Bahamas-based transportation company
Ultrapetrol (Bahamas) Ltd. to negative from stable. At the same
time, S&P affirmed the ratings, including the corporate credit
rating on the company, at 'B'.
=============
B E R M U D A
=============
CENES (BERMUDA): Creditors' Proofs of Debt Due on April 7
---------------------------------------------------------
The creditors of CeNeS (Bermuda) Ltd. are required to file their
proofs of debt by April 7, 2010, to be included in the company's
dividend distribution
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CENES (BERMUDA): Members to Receive Wind-Up Report on April 28
--------------------------------------------------------------
The members of CeNeS (Bermuda) Ltd. will receive on April 28,
2010, at 9:10 a.m., the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
===========
B R A Z I L
===========
GOL LINHAS: To Launch Scheduled Service to Punta Cana
-----------------------------------------------------
GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. is
launching new service to Punta Cana, Dominican Republic, starting
April 3, 2010, Airline Industry Information reports.
According to the report, the flights have already been approved by
the Brazilian National Civil Aviation Agency and other necessary
authorities. The report relates that the service will initially
be operated weekly, on Saturdays, from Rio de Janeiro and Sao
Paulo international airports, stopping over in Caracas, Venezuela,
prior to landing in Punta Cana.
Flights will be operated under the VARIG brand using Boeing 737-
800 Next Generation aircraft, the report says.
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 of March 8, 2010, the company continues to carry Fitch Ratings
"B" long-term issuer default ratings. The company also continues
to carry Moody's B1 LT Corp Family rating.
GOL LINHAS: Posts Additional Information on Financial Estimates
---------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. posted additional information
regarding its financial estimates for 2010 and 2011.
-- SMILES program clients: growth of its current client base of
6.7 million to 9.1 million participants by the end of 2010
(about a 35% increase compared to February 2010 and a 40%
increase compared to the 6.5 million participants in
December 2009).
-- Buy on Board expansion, additional board service offered by
the Company since April 2009, from 42 daily flights to about
50% of its daily flights by the end of 2010.
-- Expansion of ancillary revenue to represent up to 20% of net
revenue in 2011, considering its financial revenues, due to
the expansion of the VoeFacil program, focus on cargo
services (GOLLOG), Buy on Board, and other products to be
launched by GOL and its commercial partners, which will
explore its e-commerce platform.
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 of March 8, 2010, the company continues to carry Fitch Ratings
"B" long-term issuer default ratings. The company also continues
to carry Moody's B1 LT Corp Family rating.
LUPATECH SA: Inks R$150MM Pipe Lining Supply Contract W/ Petrobras
------------------------------------------------------------------
Lupatech SA has signed a contract with Petroleo Brasileiro S.A.
for supplying special internal lining in steel pipes, well
installation, field services, commissioning and technical
assistance.
The Company would also like to inform that during the last months
has participated of several bids with positive results in the
services, valves and coating and lining areas.
The negotiations related with the successful bids on services and
valves remain in progress and once completed will be announced to
the market.
The Contract signed has the approximated amount of R$150 million,
to be recognized in three years starting on the second quarter of
2010, and includes a renewal clause for the same period.
The bidding that resulted in this Contract had a minimum of 50%
requirement for Local Content in the first year and 100% after the
second year.
The lining solutions that will be applied to Petrobras' pipes are
already provided by Lupatech in the Brazilian market. The result
from the lining process can be noticed by the increase of the
operational life of the oil and gas exploration and production
pipes, especially those exposed to corrosive environments, besides
the increase of the operational safety and environmental
protection.
The strong presence of Lupatech in Brazil, mainly due to its
installed industrial capacity resulting from recent investments,
as well as the ability to quickly access critical materials,
create competitive advantages in the market. The Contract
reassures the existence of attractive opportunities for new
businesses involving companies with distinguished technologies,
and with an installed capacity in Brazil to supply the growing
demand of the oil and gas industry in the country.
The services covered in the Contract will be executed through the
operational site of Lupatech in Rio das Ostras (RJ - Brazil).
About Lupatech SA
Headquartered in Brazil, Lupatech SA -- http://www.lupatech.com.br
-- is a holding company engaged in three business segments:
Energy Products, Flow Control and Metallurgy. In the Energy
Products segment, the company provides such products as deepwater
platform anchoring ropes, valves, tools for oil exploration and
tube coating. In the Flow Control segment, it is involved in the
production and sale of industrial valves for the petrochemical,
pharmaceutical and construction industries, among others. In the
Metallurgy segment, the Company is principally engaged in the
production of parts for the automotive industry. Lupatech SA?s
brand portfolio includes MNA, CSL Off Shore, Petroima,
Esferomatic, Gasoil, K&S, Fiberware, Aspro, Gavea, Sinergas and
Tecval, among others. During the year ended December 31, 2008,
the Company incorporated Cordoaria Sao Leopoldo Offshore SA,
Metalurgica Nova Americana Ltda and Metalurgica Ipe Ltda.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 9, 2010, Standard & Poor's Ratings Services lowered its
long-term global scale corporate credit rating on Brazil-based
industrial and oil and gas valves producer Lupatech S.A. to 'B+'
from 'BB-', and its Brazilian national scale rating to 'brBBB+'
from 'brA-', and removed them from CreditWatch negative, where
they were placed with negative implications on Nov. 13, 2009.
At the same time, S&P lowered its rating on the company's
$275 million perpetual notes to 'B-' from 'BB-'. The outlook is
negative.
LUPATECH SA: Creates Lupatech Oilfield Services Company
-------------------------------------------------------
Lupatech S.A. has created the Lupatech Oilfield Services, a
company focused on operations to provide services for well
intervention.
The company said that the creation of Lupatech Oilfield Services
marks a new phase for this sector in Latin America, as is the
emergence of a regional player in the area of specialized services
for oil and gas.
LOFS's main competitive differentials are three: is the first
regional player with structure and portfolio diversification;
brings together the biographies of executives with extensive
industry experience in all countries where the company will
operate, and has a project aligned with the needs of the oil & gas
industry to use local content.
The management of Lupatech Oilfield Services will be conducted by
the professional expertise of the following executives:
* Joao Carlos de Luca: 36 years of experience in the oil and
gas companies like Petrobras, Repsol and currently holds the
position of president of the Brazilian Petroleum Institute -
IBP.
* Cesar Paolini: 31 years of experience in the oil and gas
companies like Schlumberger in various countries and
Consultec.
* Carlos Portela: 30 years of experience in the oil and gas
companies such as British
Petroleum and Atlantic LNG
Lupatech will control 85% of the new company. The remaining 15%
will be owned by the executive team, with a possibility to
increase the stake up to a limit of 30% after the investments
made by Lupatech returns accumulated with a 17% per year in U.S.
dollars.
At the first moment US$16 million will be invested. Future
investments are linked to market opportunities for Lupatech
Oilfield Services as part of its market penetration strategy.
The company seeks to meet a growing demand for solutions that
integrate services and equipment. Lupatech already has wide range
of equipment and is a player in services not related to well
intervention, so there will be no competition with LOFS.
From the union with the executives of Penta and creation of
Lupatech Oilfield Services, Lupatech will have access to new
markets, facilitated by the deep industry knowledge in Latin
America and the "customer view" brought by the executive team of
LOFS.
The first markets to be developed will be Brazil, the Andean
Region (Colombia and Peru) and Mexico, and were chosen because of
their size and excellent growth prospects.
Lupatech Oilfield Services will start its operations in Colombia,
where an acquisition was concluded on March 29, 2010. HS, the
acquired business, reported in 2009 net revenues of US$11.7
million and EBITDA of US$2.25 million.
About Lupatech SA
Headquartered in Brazil, Lupatech SA -- http://www.lupatech.com.br
-- is a holding company engaged in three business segments:
Energy Products, Flow Control and Metallurgy. In the Energy
Products segment, the company provides such products as deepwater
platform anchoring ropes, valves, tools for oil exploration and
tube coating. In the Flow Control segment, it is involved in the
production and sale of industrial valves for the petrochemical,
pharmaceutical and construction industries, among others. In the
Metallurgy segment, the Company is principally engaged in the
production of parts for the automotive industry. Lupatech SA?s
brand portfolio includes MNA, CSL Off Shore, Petroima,
Esferomatic, Gasoil, K&S, Fiberware, Aspro, Gavea, Sinergas and
Tecval, among others. During the year ended December 31, 2008,
the Company incorporated Cordoaria Sao Leopoldo Offshore SA,
Metalurgica Nova Americana Ltda and Metalurgica Ipe Ltda.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 9, 2010, Standard & Poor's Ratings Services lowered its
long-term global scale corporate credit rating on Brazil-based
industrial and oil and gas valves producer Lupatech S.A. to 'B+'
from 'BB-', and its Brazilian national scale rating to 'brBBB+'
from 'brA-', and removed them from CreditWatch negative, where
they were placed with negative implications on Nov. 13, 2009.
At the same time, S&P lowered its rating on the company's
$275 million perpetual notes to 'B-' from 'BB-'. The outlook is
negative.
USINAS SIDERURGICAS: Moody's Affirms Ratings on Various Notes
-------------------------------------------------------------
Moody's Investors Service affirmed the Baa3 global scale and
Aa1.br Brazilian national scale senior unsecured issuer ratings of
Usinas Siderurgicas de Minas Gerais S.A. and all related debt
ratings, and changed the ratings outlook to stable from negative.
Ratings affirmed are:
Issuer: Usinas Siderurgicas de Minas Gerais S.A.
-- Senior Unsecured Issuer Rating: Baa3 (global scale); Aa1.br
(Brazilian national scale)
-- US$500 million Senior Unsecured Global MTN Program: Baa3
Foreign Currency Rating
-- BRL500 million local currency subordinated unsecured
debentures due 2013: Ba1 (global scale); Aa2.br (Brazilian
national scale).
Issuer: Cosipa Commercial Ltd.
-- US$200 million senior unsecured notes due 2016, guaranteed by
Usiminas: Baa3 Foreign Currency Rating
Issuer: Usiminas Commercial Ltd.
-- US$400 million senior unsecured notes due 2018, guaranteed by
Usiminas: Baa3 Foreign Currency Rating
The outlook for all ratings is stable.
The rating action reflects the company's improved operating
performance in light of enhanced market conditions for the global
steel industry, particularly in Brazil which is Usiminas' main
market. Moody's expect that the recovery in the global steel
industry will continue to progress, although slowly. Usiminas'
gross margins were affected during 2009 by high-cost iron ore and
coal inventories, which have been liquidated during 2009, thus
relieving margins from this cost pressure.
The rating action also reflects Usiminas' good liquidity based on
hefty cash position of BRL 3.08 billion as of December 31, 2009
(covering short term adjusted debt 2.6x) and comfortable headroom
under its financial covenants in addition to an adequate funding
profile for its ongoing capex program. Moreover, as Usiminas
postponed part of its planned investments, namely the construction
of a new five million tons slab mill, and margins have rebounded
after the second quarter of 2009, Moody's anticipate a slow but
sustainable reduction in its leverage as ongoing investments
mature.
The ratings continue to be supported by the company's leading
position in the Brazilian flat steel market, as well as its
globally competitive production costs as evidenced by its average
EBITDA margin (as defined by Moody's) of about 36% in the past
five years, reflecting its large scale, track record of almost
full-capacity utilization, the proximity of its facilities to
high-grade iron-ore reserves, efficient logistics, and partial
self-sufficiency in iron-ore, coke and energy. As a low-cost
producer, Moody's believe that Usiminas is better prepared to face
the ups and downs of the cyclical steel industry than most of its
international peers from an operational standpoint.
The stable oulook reflects the fact that Usiminas is operating
back at high capacity utilization rates in addition to Moody's
expectation that the company will be able to take further
advantage from the steel market recovery, especially in Brazil,
and will post enhanced operating margins going forward although
not at the same level as historically since pressured by increased
input costs. As a result, Moody's expect the company to reduce
its leverage over the near term as investments mature, while
continuing to prudently manage liquidity and dividends.
The ratings or outlook could be upgraded if operating performance
and cash generation improves such that Total Adjusted Debt to
EBITDA approaches 2x and CFO less Dividends to Net Debt (total
debt less estimated cash available for debt reduction) is
sustained above 20%. The maintenance of comfortable financial
covenants headroom and cash plus unused committed credit
facilities to short-term debt of above 1.3x would also be
necessary for an upgrade.
The ratings or outlook could be downgraded if the company's
recently improved performance is not sustainable, preventing a
reduction in leverage and / or causing CFO less Dividends to Net
Debt to remain consistently below 20% without prospects for
improvement in the near term. A substantial deterioration in
liquidity could also cause a downgrade. Finally, a significant
increase in consolidated secured debt could negatively affect the
senior unsecured debt ratings.
Moody's last rating action on Usiminas occurred on July 28, 2009,
when Moody's affirmed its Baa3 global scale senior unsecured
issuer rating and downgraded its Brazilian national scale senior
unsecured issuer rating to Aa1.br from Aaa.br and revised the
ratings outlook to negative from stable.
Headquartered in Belo Horizonte, Brazil, Usinas Siderurgicas de
Minas Gerais S.A. is the largest fully integrated flat-steel
manufacturer in Latin America, with production capacity of
9.5 million tons of crude steel and consolidated net revenues of
BRL10.9 billion (US$5.4 billion converted by the average exchange
rate) in 2009.
==========================
C A Y M A N I S L A N D S
==========================
ABSOLUTE VI: Shareholders to Receive Wind-Up Report on April 16
---------------------------------------------------------------
The shareholders of Absolute VI Synthetic CDO Limited will receive
on April 16, 2010, at 9:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
AIRPORT DEVELOPMENT: Shareholders Receive Wind-Up Report
--------------------------------------------------------
The shareholders of Airport Development Consulting Ltd. received,
on March 29, 2010, the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
ALMOCA INVESTMENTS: Shareholders' Final Meeting Set for April 16
----------------------------------------------------------------
The shareholders of Almoca Investments Ltd. will receive on
April 16, 2010, at 9:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Mourant Cayman Liquidators, Ltd.
Harbour Centre, 42 North Church Street
George Town, P.O. Box 1348
Grand Cayman KY1-1108, Cayman Islands
BGI EOS: Shareholders to Receive Wind-Up Report on April 16
-----------------------------------------------------------
The shareholders of BGI EOS (Euros) Ltd. will receive on April 16,
2010, at 9:30 a.m., the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
BGI EOS: Shareholders to Receive Wind-Up Report on April 16
-----------------------------------------------------------
The shareholders of BGI EOS (US Dollars) Ltd. will receive on
April 16, 2010, at 9:15 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
BLUE OAR: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of The Blue Oar Long Short UK Equity Fund Limited
received, on March 29, 2010, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Stuart Sybersma
c/o Trudy-Ann Baines
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949-7500
Facsimile: (345) 949-8258
BLUE OAR: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of The Blue Oar Long Short UK Equity Master Fund
received, on March 29, 2010, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Stuart Sybersma
c/o Trudy-Ann Baines
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949-7500
Facsimile: (345) 949-8258
CAMULOS CAPITAL: Wins Liquidation Battle Against Angry Investor
---------------------------------------------------------------
The Caymans Court of Appeal threw out a winding-up petition
against one of Camulos Capital's hedge funds, Camulos Partners
Offshore fund, ruling that it was improper to seek to liquidate a
solvent hedge fund that refused to meet an investor's demand, FIN
alternatives reports. The report relates that Austrian private
bank Kathrein & Co., filed two contributory winding up petitions
against the Camulos fund after Camulos suspended redemptions from
the fund.
According to the report, Kathrein in 2008 sought to redeem some
US$27 million from the fund. The report relates that it was not
alone: Camulos, like many hedge funds that summer, was inundated
with redemption requests, first offering an exchange to limit them
-- which Kathrein rejected -- and then suspending redemptions
entirely.
The private bank, the report recalls, sued Camulos Capital last
April, demanding its US$27 million, including 15% in cash. The
report relates that three months later, the bank threatened to
seek the fund's liquidation, filing the petition in September
after a judge rejected Camulos' bid for an injunction.
However, the report points out, the appeals court directed
Kathrein to employ regular legal channels to get its money back,
ruling that winding up petitions cannot be used to place improper
pressure on companies to give in to their demands. The court also
ordered the bank to pay Camulos' costs, the report adds.
CEDAR MASTER: Shareholders' Final Meeting Set for April 15
----------------------------------------------------------
The shareholders of Cedar Master Platform Fund will receive on
April 15, 2010, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106, Grand Cayman KY1-1205
CONTEXT/TQA CONVERTIBLE: Shareholders' Meeting Set for April 16
---------------------------------------------------------------
The shareholders of Context/TQA Convertible Master Fund, Ltd. will
receive on April 16, 2010, at 9:45 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
CREDIT LINKED: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Credit Linked Notes Ltd. 2004-1 received, on
January 22, 2010, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984, Grand Cayman KY1-1104
CREDIT LINKED: Shareholders to Hear Wind-Up Report on April 16
--------------------------------------------------------------
The shareholders of Credit Linked Notes Ltd. 2004-2 will receive
on April 16, 2010, the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984, Grand Cayman KY1-1104
CREDIT LINKED: Shareholders to Hear Wind-Up Report on April 16
--------------------------------------------------------------
The shareholders of Credit Linked Notes Ltd. 2004-3 will receive
on April 16, 2010, the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984, Grand Cayman KY1-1104
CREDIT LINKED: Shareholders to Hear Wind-Up Report on April 16
--------------------------------------------------------------
The shareholders of Credit Linked Notes Ltd. 2004-4 will receive
on April 16, 2010, the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984, Grand Cayman KY1-1104
DB HENLOW: Shareholder to Receive Wind-Up Report on April 30
------------------------------------------------------------
The sole shareholder of DB Henlow Investments Limited will
receive, on April 30, 2010, at 11:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Jeremy Simon Spratt
c/o Jacqueline Edwards
Telephone: +44 (0) 20 7311 8563
Facsimile: +44 (0) 20 7694 3533
KPMG LLP
8 Salisbury Square, London, EC4Y 8BB
MOSAIC EUROPE: Shareholder to Hear Wind-Up Report on April 13
-------------------------------------------------------------
The sole shareholder of Mosaic Europe Fund will receive, on
April 13, 2010, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Alain Zajfen
c/o Alain Zajfen
Campbells
P.O. Box 268
4th Floor, Scotia Centre, George Town
Grand Cayman KY1-1104, Cayman Islands
Telephone: 1-345-946-0754
Facsimile: 1-345-946-0751
PALLAS VI: Shareholders to Hear Wind-Up Report on April 16
----------------------------------------------------------
The shareholders of Pallas VI Limited will receive on April 16,
2010, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984, Grand Cayman KY1-1104
PLAINFIELD DIRECT: Shareholders to Hear Wind-Up Report on April 15
------------------------------------------------------------------
The shareholders of Plainfield Direct Master Fund Limited will
receive on April 15, 2010, at 4:00 p.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
DMS Corporate Services Ltd
c/o Bernadette Bailey-Lewis
Telephone: (345) 946 7665
Facsimile: (345) 946 7666
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
PLAINFIELD DIRECT: Shareholders to Hear Wind-Up Report on April 15
------------------------------------------------------------------
The shareholders of Plainfield Direct Offshore Feeder Fund Limited
will receive on April 15, 2010, at 4:00 p.m., the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
DMS Corporate Services Ltd
c/o Bernadette Bailey-Lewis
Telephone: (345) 946 7665
Facsimile: (345) 946 7666
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
SAPPHIRE CDO: Shareholders to Hear Wind-Up Report on April 16
-------------------------------------------------------------
The shareholders of Sapphire CDO Limited will receive on April 16,
2010, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984, Grand Cayman KY1-1104
STORES FUNDING: Shareholder to Receive Wind-Up Report on April 30
-----------------------------------------------------------------
The sole shareholder of Stores Funding Limited will receive, on
April 30, 2010, at 11:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Jeremy Simon Spratt
c/o Jacqueline Edwards
Telephone: +44 (0) 20 7311 8563
Facsimile: +44 (0) 20 7694 3533
KPMG LLP
8 Salisbury Square, London, EC4Y 8BB
SUPPLI INVESTMENTS: Shareholder to Hear Wind-Up Report on April 30
------------------------------------------------------------------
The sole shareholder of Suppli Investments (Cayman) No. 1 Limited
will receive, on April 30, 2010, at 10:30 a.m., the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Jeremy Simon Spratt
c/o Jacqueline Edwards
Telephone: +44 (0) 20 7311 8563
Facsimile: +44 (0) 20 7694 3533
KPMG LLP
8 Salisbury Square, London, EC4Y 8BB
TRIUMPH COMPANY: Shareholders to Hear Wind-Up Report on April 6
---------------------------------------------------------------
The shareholders of Triumph Company will receive on April 6, 2010,
at 9:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Krysten Lumsden
Telephone: (345) 814 7366
Facsimile: (345) 945 3902
P.O. Box 2681, Grand Cayman KY1-1111
Cayman Islands
UBS AIS: Members to Receive Wind-Up Report on April 8
-----------------------------------------------------
The members of UBS AIS Strategy Fund - Relative Value (Feeder)
Limited will receive on April 8, 2010, at 10:30 a.m., the
liquidator's report on the company's wind-up proceedings and
property disposal.
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
UBS AIS: Members to Receive Wind-Up Report on April 8
-----------------------------------------------------
The members of UBS AIS Strategy Fund - Relative Value Limited will
receive on April 8, 2010, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
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
UBS AIS: Members to Receive Wind-Up Report on April 8
-----------------------------------------------------
The members of UBS AIS Strategy Fund - Trading (Feeder) Limited
will receive on April 8, 2010, at 11:30 a.m., the liquidator's
report on the company's wind-up proceedings and property disposal.
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
UBS AIS: Members to Receive Wind-Up Report on April 8
-----------------------------------------------------
The members of UBS AIS Strategy Fund - Trading Limited will
receive on April 8, 2010, at 11:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
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
UBS GLOBAL: Members to Receive Wind-Up Report on April 8
--------------------------------------------------------
The members of UBS Global Alpha Strategies (Danish Krone) Limited
will receive on April 8, 2010, at 12:00 noon, the liquidator's
report on the company's wind-up proceedings and property disposal.
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
UBS GLOBAL: Members to Receive Wind-Up Report on April 8
--------------------------------------------------------
The members of UBS Global Alpha Strategies (Swiss Franc) Limited
will receive on April 8, 2010, at 12:30 p.m., the liquidator's
report on the company's wind-up proceedings and property disposal.
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
UBS NEUTRAL: Members to Receive Wind-Up Report on April 8
---------------------------------------------------------
The members of UBS Neutral Alpha Strategies (Euro) Limited will
receive on April 8, 2010, at 1:00 p.m., the liquidator's report on
the company's wind-up proceedings and property disposal.
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
ZAIS SCEPTICUS: Shareholder to Hear Wind-Up Report on April 14
--------------------------------------------------------------
The sole shareholder of Zais Scepticus Fund I, Ltd. will receive,
on April 14, 2010, at 11:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Ogier
c/o Hayden Isbister
Telephone: (345) 815-1815
Facsimile: (345) 949-9876
=========
C H I L E
=========
EMPRESAS IANSA: Fitch Affirms 'B-' Issuer Default Rating
--------------------------------------------------------
Fitch Ratings has affirmed and removed from Rating Watch Negative
these Issuer Default Ratings and outstanding debt ratings for
Empresas Iansa S.A.:
-- Local currency IDR at 'B-';
-- Foreign currency IDR at 'B-';
-- Senior unsecured notes due 2012 at 'B+/RR2';
-- National Scale at 'BB-(cl)'.
Iansa's Rating Outlook is Stable.
Fitch has also affirmed this rating:
-- National Scale Equity at 'Level 4'.
Iansa's credit profile continues to reflect the low profitability
of its main business lines and high levels of leverage. The
Stable Outlook and Negative Rating Watch removal, which Fitch
initiated on March 9, 2009, result from the lower pressure Iansa
faces in terms of liquidity. Iansa has managed to finance its
working capital needs, while also lowering its short-term debt.
The Stable Outlook also reflects the strengthening of the equity
structure Iansa will achieve over the next few weeks, after
realize a capital increase by about US$55 million. These
resources will finance Iansa's new strategic plan.
Liquidity Improves based on Lower Working Capital Requirements and
Decrease in Short-Term Debt:
In 2009, Iansa's EBITDA reached US$17 million. Considering
financial expenses for US$11 million and other incomes for
US$12 million (net), Funds from Operations totaled US$16 million.
In the same period, Iansa reduced its working capital requirements
by US$17 million, which along with a capital expenditure for
US$7 million, resulted in a Free Cash Flow of US$26 million, which
was used to reduce short-term debt.
As of Dec. 31, 2009, Iansa had a total debt of US$163 million,
which showed a 20% drop as compared to the end of 2008. Long term
debt is composed mainly from a Yankee bond for US$87 million
(net), maturing in 2012. Although by Dec. 31, 2009, Iansa's
short-term debt totaled US$70 million, in the next twelve months,
Iansa faces amortizations for only US$4 million, while the
remaining US$66 million correspond to revolving debt (working
capital lines and buy back agreements). Iansa's liquidity also
rests on the US$43 million it maintains in cash balances.
Financial profile still under pressure; potential strengthening in
2010:
Iansa's profitability at consolidated level presented an important
deterioration since 2008, mainly explained by low production and
profitability levels of its main business segment, sugar and by-
products (representing 60% of Iansa's consolidated sales during
2009). During the last year it was observed a slight improvement
in terms of EBITDA, being main factor the implementation of the
cost saving plan by mid 2008.
Iansa's credit metrics sharply deteriorated since 2008, reflecting
a lower operational cash flow generation, a higher level of debt
and increase in financial expenses, observed in 2009 less pressure
as a result of decreased debt. During 2009, Iansa reached an
EBITDA / Financial Expenses coverage of 1.5x (1.4x in 2008; 3.9x
in 2007) while the Total Debt / EBITDA ratio was 9.7x (13.5x in
2008; 3.2x in 2007).
During the current 2009/2010 season, the area planted with beet
has increased by 24%, while Iansa has managed to decrease the
price paid to growers by 25%, going from US$70/ton to US$52.5/ton.
This would lead to improved margins and flow generation for the
sugar business in 2010, which would favorably impact the financial
flexibility and credit ratios of the company at the consolidated
level.
Capital Increase will allow Iansa to finance its 2010 -- 2014
Strategic Plan; Focus in Sugar and by -- products business:
In order to secure long term viability and to regain market share
in its core business segment, Iansa defined a strategic plan,
called 'Sweet Plan 2014'. This plan considers moving from a
productive focus, which considered many business segments; to a
commercial focus, concentrated in the sugar and by-products
business, and oriented to the whole national market. This plan
will allow Iansa to improve supply and commercial capabilities as
well as operational efficiency.
In this context, future investments will be oriented to diversify
raw material supply, by introducing imported refined and crude
sugar; and to increase Iansa's share in the industrial segment
with the acquisition of ED&F MAN Chile. The latter is owned
subsidiary of ED&F MAN Holdings, indirect shareholder of Iansa
with 27.47% stake, and leader in sugar trading world wide.
The strategic plan involves US$50 million investments, which will
be financed with a US$55 million capital increase, which is
expected to be placed in the local market.
=============
E C U A D O R
=============
* ECUADOR: Chevron Wins US$700 Million Oil Case
-----------------------------------------------
Jessica Resnick-Ault and Daniel Cancel at Bloomberg News report
that Chevron Corp. has been awarded about US$700 million by an
international arbitration court that ruled in favor of its claim
against Ecuador over past operations at its Texaco unit. The
tribunal found that Ecuador's courts delayed rulings on a contract
dispute between Texaco and the Ecuadorian government, violating
international law, Chevron said in a statement obtained by
Bloomberg News.
According to the report, the Hague-based Permanent Court of
Arbitration awarded Chevron principal damages and interest as of
Dec. 22, 2006, pending further proceedings to determine taxes,
interest and costs.
The report notes that the ruling marks a victory for the company
following four decades of escalating disputes over oil production
in Ecuador. The report notes that a separate arbitration case
filed last year over a US$27 billion pollution claim still is
pending.
Bloomberg News, citing the central bank, said that the award to
Chevron is equivalent to about a fifth of Ecuador's US$3.85
billion of international reserves as of March 26.
Chevron, the report recalls, has argued that the Ecuadorian
government and PetroEcuador violated crude-production contracts in
the 1970s with Texaco Inc. Chevron bought Texaco in 2001. The
report relates that Chevron filed for international arbitration in
2006, after unsuccessfully pursuing the matter in the Ecuadorian
courts since the early 1990s.
* * *
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
=============
AIR JAMAICA: NWU Uncertain on Airline Readiness for April 12
------------------------------------------------------------
The National Workers Union said it's uncertain that the government
will be able to hand over Air Jamaica Limited to Caribbean
Airlines Limited by April 12, 2010, Go-Jamaica News reports. The
report relates that with only two weeks remaining before the
handing over of the state-owned airline to the Trinidad and Tobago
based carrier, workers at Air Jamaica are yet to receive word on
whether they will be given new contracts.
According to the report, NWU Vice President Granville Valentine
said that given the current environment of uncertainty he's not
confident that the deal with Caribbean Airlines will be finalized
by the deadline. The report relates that Air Jamaica's management
said that it will continue to operate Air Jamaica utilizing the
existing aircraft fleet under contract to Caribbean Airlines for a
year. During the transition period, Caribbean Airlines will be
financially responsible for the transition operation after
April 12, the report notes.
The Gleaner notes that a new company has also been formed to hire
the personnel required. However, the report discloses, Mr.
Valentine said that the unions still do not know the name of the
company which has been given this responsibility.
As reported in the Troubled Company Reporter-Latin America on
March 5, 2010, Gleaner Power 106 said that Air Jamaica Limited's
management has indicated a proposed date for the redundancy of all
employee positions at the airline. The report related that in a
memorandum to the staff, Airline President Bruce Nobles told the
employees that the Air Jamaica management is working with
Caribbean Airlines towards a major schedule change on April 12.
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
January 27, 2010, Moody's Investors Service changed the ratings
outlook of Air Jamaica Limited to stable. The Corporate Family
and senior unsecured ratings of Air Jamaica are affirmed at Caa1.
The change in outlook mirrors the change of the outlook of the
foreign currency bond rating of The Government of Jamaica to
stable, which occurred on January 22, 2010. The ratings reflect
Jamaica's unconditional and irrevocable guarantee of the rated
debt obligations of Air Jamaica. The foreign currency bond rating
of Jamaica remains Caa1, notwithstanding the January 22, 2010
downgrade of Jamaica's local currency bond rating by Moody's to
Caa2.
As reported in the TCR-LA on November 5, 2009, Standard & Poor's
Ratings Services said that it lowered its long-term corporate
credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The
outlook is negative.
AIR JAMAICA: CEO Says "Divestment Still on Track"
-------------------------------------------------
Air Jamaica Limited's management said that there has been no
change to the date for the airline's operations to be placed under
the management of Trinidadian air carrier Caribbean Airlines
Limited.
According to the report, Air Jamaica CEO Bruce Nobles said that as
far as he is aware, the schedule for the transition is still on
track and as a result, the national carrier will be placed in new
hands come April 12.
As reported in the Troubled Company Reporter-Latin America on
March 5, 2010, Gleaner Power 106 said that Air Jamaica Limited's
management has indicated a proposed date for the redundancy of all
employee positions at the airline. The report related that in a
memorandum to the staff, Airline President Bruce Nobles told the
employees that the Air Jamaica management is working with
Caribbean Airlines towards a major schedule change on April 12.
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
January 27, 2010, Moody's Investors Service changed the ratings
outlook of Air Jamaica Limited to stable. The Corporate Family
and senior unsecured ratings of Air Jamaica are affirmed at Caa1.
The change in outlook mirrors the change of the outlook of the
foreign currency bond rating of The Government of Jamaica to
stable, which occurred on January 22, 2010. The ratings reflect
Jamaica's unconditional and irrevocable guarantee of the rated
debt obligations of Air Jamaica. The foreign currency bond rating
of Jamaica remains Caa1, notwithstanding the January 22, 2010
downgrade of Jamaica's local currency bond rating by Moody's to
Caa2.
As reported in the TCR-LA on November 5, 2009, Standard & Poor's
Ratings Services said that it lowered its long-term corporate
credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The
outlook is negative.
AIR JAMAICA: No Visa Cancellation for Airline Staff
---------------------------------------------------
Air Jamaica Limited's management is denying swirling claims that
the work visas of some of its crew members have not been renewed
by the United States authorities, RadioJamaica reports.
According to the report, speculation has been rife that the work
visas of some Air Jamaica employees were rejected for renewal due
to the extradition row between Jamaica and the US. However, the
report relates Bruce Nobles, Chief Executive Officer of Air
Jamaica, said that there is no truth to the claims.
The report notes Mr. Nobles told RJR News that apart from one
minor incident involving the renewal of the work visa of one of
the airline's pilots, he was not aware of any other problems. "We
had one pilot whose crew visa was up for renewal and the US
service wanted some clarification about his status going forward
but that's it, I'm not aware of any other," the report quoted Mr.
Nobles as saying.
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
January 27, 2010, Moody's Investors Service changed the ratings
outlook of Air Jamaica Limited to stable. The Corporate Family
and senior unsecured ratings of Air Jamaica are affirmed at Caa1.
The change in outlook mirrors the change of the outlook of the
foreign currency bond rating of The Government of Jamaica to
stable, which occurred on January 22, 2010. The ratings reflect
Jamaica's unconditional and irrevocable guarantee of the rated
debt obligations of Air Jamaica. The foreign currency bond rating
of Jamaica remains Caa1, notwithstanding the January 22, 2010
downgrade of Jamaica's local currency bond rating by Moody's to
Caa2.
As reported in the TCR-LA on November 5, 2009, Standard & Poor's
Ratings Services said that it lowered its long-term corporate
credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The
outlook is negative.
JAMAICA PUBLIC SERVICE: CEO Takes Charge of Financial Unit
----------------------------------------------------------
Jamaica Public Service Company Limited Chief Executive Officer
Damian Obiglio has taken charge of the utility's financial unit
'in the short term' following a restructuring by its parent
company that resulted in the departure of Chief Financial Officer
Gary Osbourne, Jamaiva Gleaner reports. Mr. Osbourne resigned
from his post effective March 31, 2010.
According to the report, Marubeni TAQA Caribbean, which owns 40%
of JPSCO, has decided to significantly reduce the staff complement
at its head office in Atlanta after an internal review that a
stock market filing by JPSCO said extended to expatriates assigned
to the Caribbean business units.
The report notes that JPSCO's current earnings report for 2009
indicates a shift in performance levels for the company, which
just a year before was alternating between losses and gains per
quarterly period -- ending the year at US$7 million in the black,
or the equivalent of J$577 million.
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 12, 2010, RadioJamaica said that the multi-billion dollar
show down between the Jamaica Public Service and the three unions
-- BITU, NWU, and UCASE -- representing workers at the company has
entered the penultimate stage before the Industrial Disputes
Tribunal. The report related that the IDT heard testimony from
the Chairman of JPSCO, Tommy Fukuda who was called as the last
witness. According to the report, Mr. Fukuda maintained that
JPSCO has paid the US$2.3 billion it owed the workers following
the 2001 job reclassification exercise. However, the report
related, the three unions argued that the company still owed the
workers an additional JM$500 to 600 million dollars in
retroactive, overtime and redundancy payments.
UNITED CHURCH IN JAMAICA: Tax Department Erred in Seizing Assets
----------------------------------------------------------------
The United Church in Jamaica and the Cayman Islands is expressing
surprise after some of its assets were seized on March 29, 2010,
by an enforcement team from the Tax Administration Services
Department for outstanding arrears, RadioJamaica reports. The
report relates the organization said that the seizure of its two
vehicles were unwarranted as an agreement was in place for it to
clear its arrears.
According to the report, the organization said that officers of
the Church met with the Inland Revenue Department and offered to
pay nearly JM$20 million over a 62 month period. The agreement,
the report notes, included:
-- an initial payment of JM$1.5 million,
-- a monthly amount of JM$188,000,
-- as well as lump sum payments of JM$4 million this year; and
-- JM$1 million for every succeeding year.
The report notes the United Church said that it is current with
its payments.
The Church, the report notes, said that it offered to release a
title for one of its prime real estate properties which would more
than compensate for the total amount owing, but it was reportedly
refused.
The church explained that the outstanding liability is directly
related to the lack of resources and the Synod has decided to
divest property to retire this debt, the report adds.
WINDALCO: Reaches Redundancy Payments Agreement With NWU
--------------------------------------------------------
West Indies Alumina Company's management and the National Workers
Union have reached a settlement on redundancy payments to more
than 700 workers, GO-Jamaica reports. The report relates NWU
President Vincent Morrison said that the union and Windalco were
able to negotiate an agreement after weeks of discussions.
As reported in the Troubled Company Reporter-Latin America on
March 8, 2010, Jamaica Gleaner said that Windalco will end its
bauxite production in Jamaica and make 762 permanent jobs
redundant on March 31. The report related that the redundancy
exercise comes a year after the company suspended production at
its Kirkvine, Manchester, and Ewarton, St Catherine, refineries
because of reduced demand for aluminium on the world market. The
company is 93% owned by Russian entity, UC Rusal. The Gleaner
disclosed that Kayon Wallace, Windalco's senior communications
officer, said that, as of April 1, a 'take-care' organization
comprising a small complement of contract workers will be
responsible for preserving the company's assets and meeting legal
and community obligations. The report added that Mr. Wallace said
that the company will still be involved in agricultural activities
that formed part of its original mandate.
About WINDALCO
West Indies Alumina Company is situated on the island of Jamaica
in the Caribbean. The company comprises two alumina refineries
(Ewarton Works and Kirkvine Works), a shipping port (Port
Esquivel) and also bauxite mines in Schwallenburgh (Ewarton) and
Russell Place (Kirkvine) and farms in Manchester and St. Ann.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 8, 2010, Jamaica Gleaner said that West Indies Alumina
Company will end its bauxite production in Jamaica and make 762
permanent jobs redundant. The report related that the redundancy
exercise comes a year after the company suspended production at
its Kirkvine, Manchester, and Ewarton, St Catherine, refineries
because of reduced demand for aluminium on the world market. The
company is 93% owned by Russian entity, UC Rusal.
===========
M E X I C O
===========
BARCLAYS BANK: Moody's Gives Stable Outlook; Keeps 'D' Rating
-------------------------------------------------------------
Moody's Investors Service changed to stable from negative the
outlook on Barclays Bank (Mexico), S.A.'s local and foreign
currency deposit ratings. All other ratings were affirmed with
stable outlook.
At the same time, Moody's changed to stable from negative the
outlook on Barclays Capital Casa de Bolsa, S.A. de C.V.'s global
local currency issuer ratings.
The rating actions on Barclays Bank Mexico and Barclays Capital
Casa de Bolsa follow a similar rating action taken on Barclays
Bank PLC.
Moody's said that Barclays Bank Mexico's GLC deposit rating to a
great extent incorporates Moody's assessment of the very high
probability of support that would be received from its parent
company Barclays if necessary to cover its deposit obligations.
Moody's notes that an integral part of the parental support
reflects the transfer of a significant portion of the risks
inherent to the Mexican subsidiary to other entities of the
Barclays network. Moody's also indicated that the issuer ratings
of Barclays Capital Casa de Bolsa are aligned to those of its
sister bank to reflect the full integration between these two
entities and with their ultimate parent, Barclays.
The last rating action on Barclays Bank Mexico was on February 11,
2009, when Moody's downgraded Barclays Bank Mexico's GLC and
foreign currency long term deposit ratings to Baa2, with negative
outlook, from Baa1. The bank's NSR was also downgraded to Aa1.mx,
stable outlook, from Aaa.mx. The last rating action on Barclays
Capital Casa de Bolsa was on April 24, 2009 when Moody's assigned
first-time issuer ratings to the company.
The long-term Mexican National Scale rating of Aa1.mx indicates
issuers or issues with the strongest creditworthiness relative to
other domestic issuers. The short-term Mexican National Scale
rating of MX-1 indicates that the issuer has the strongest ability
to repay short-term senior unsecured debt obligations relative to
other domestic issuers.
These rating actions were taken on Barclays Bank (Mexico), S.A.:
-- Global local currency deposits: Outlook changed to stable
from negative
-- Foreign currency deposits: Outlook changed to stable from
negative
These ratings on Barclays Bank (Mexico), S.A., were affirmed with
stable outlook:
-- Bank Financial Strength: D
-- Long term local and foreign currency deposits: Baa2
-- Short term local and foreign currency deposits: Prime-3
-- Long term Mexican National Scale: Aa1.mx
-- Short term Mexican National Scale: MX-1
These rating actions were taken on Barclays Capital Casa de Bolsa,
S.A. de C.V.:
-- Global local currency deposits: Outlook changed to stable
from negative
These ratings on Barclays Capital Casa de Bolsa, S.A. de C.V.
were affirmed with stable outlook:
-- Long term local currency issuer: Baa2
-- Short term local currency issuer: Prime-3
-- Long term Mexican National Scale: Aa1.mx
-- Short term Mexican National Scale: MX-1
CEMEX SAB: Canning Wins Contract at Bramshill Quarry
----------------------------------------------------
Following a successful project at neighboring Eversley Quarry,
Canning Conveyor is to supply equipment for the CEMEX sand and
gravel operation at Bramshill Quarry in Hampshire.
Canning have received an order to design, manufacture and supply a
new 35 tonne dump hopper/feeder which will accept up to 35 tonnes
of sand and gravel from reversing dump trucks.
Fitted with flare plates to decrease the possibility of spillage
the hopper will be fully fabricated from 6mm thick mild steel
plate suitably stiffened with RSA/PFC sections. All internal
sloping surfaces will be fully lined with 10mm low friction white
perplas. Inlet dimensions of the hopper are 4 metres wide x 3
metres deep, with the hopper fitted with a hinged sloping product
grid to accept the material whilst rejecting any oversize. The
hopper outlet will feed onto a short 5 metre troughed belt feeder
which will be designed to discharge onto the loading point of a
new field conveyor (also by Canning) at the rate of up to 200 tph.
This feeder will be driven by a 15 kW drive unit and will feature
close pitched rubber covered impact idlers, multiblade scraper at
discharge, vee-type return belt plough and emergency stop pull
wire system all around.
Installation is scheduled for April to May 2010 when the equipment
will be tested and commissioned by Canning engineers.
About Cemex SAB
CEMEX, S.A.B. de C.V. is a Mexican corporation, a holding company
of entities which main activities are oriented to the construction
industry, through the production, marketing, distribution and sale
of cement, ready-mix concrete, aggregates and other construction
materials. CEMEX is a public stock corporation with variable
capital (S.A.B. de C.V.) organized under the laws of the United
Mexican States, or Mexico.
* * *
As of March 8, 2010, the company continues to carry Standard and
Poor's "B" LT Issuer credit ratings. The company also continues
to carry Fitch rating's "B" LT Issuer Default ratings and "B+"
Currency LT Debt ratings. Cemex is seeking US$1.3 billion in
compensation for the seizure of its assets. The government of
President Hugo Chavez has offered about a third of that.
The flare-up in relations between Venezuela and Cemex does not
bode well for the Monterrey-based cement maker's efforts to win
back money it badly needs to pay off debt, analysts say.
Cemex hopes to use compensation from Venezuela to reduce its US$15
billion debt load as it struggles with slumping U.S. and European
cement volumes due to the global recession and a collapse in
construction activity worldwide. Cemex took on big debts to
finance its acquisition of Australia's Rinker in 2007, just before
the U.S. housing crisis broke.
VITRO SAB: Makes Revised Proposal to Restructure Defaulted Debt
---------------------------------------------------------------
Nathan Gill and Thomas Black at Bloomberg News report that Vitro,
S.A.B. de C.V. made a revised proposal to restructure US$1.5
billion of defaulted debt.
According to the report, Vitro SAB is offering US$660 million of
eight-year bonds in exchange for US$1.5 billion of debt and will
give creditors 20 cents for every dollar that surpasses annual
cash flow of US$250 million. The report notes that its first
proposal called for US$100 million less of new bonds and offered
no additional payment from higher cash flow.
"The market is taking this as a positive sign that the company is
ready to restructure its debt," the report quoted Gerardo Roman,
head of equity trading at Mexico City-based Actinver SA, as
saying. "The terms are good," he added.
The report notes that Jim Harper, director of corporate research
at BCP Securities in Greenwich, Connecticut, said terms may still
not be attractive enough to gain creditor approval. The offer is
worth a little more than 30 cents on the dollar based on a yield
of 12 percent on the new securities and no boost from the cash-
flow incentive, he added.
As reported in the Troubled Company Reporter-Latin America on
March 5, 2010, Vitro SAB's initial restructuring proposal in
August, which sought a debt writedown of about US$1 billion, was
rejected by bondholders, who made a counteroffer in September.
The report related that the August proposal showed Vitro's total
debt, including US$240 million of derivative losses less
collateral, of US$1.81 billion.
About Vitro
Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.
* * *
In June 30, 2009, Galaz, Yamazaki, Ruiz Urquiza, S.C., member of
Deloitte Touche Tohmatsu and C.P.C. Jorge Alberto Villarreal in
Monterrey, N.L., Mexico raised substantial doubt about the
Company's ability to continue as a going concern after auditing
financial results for the period ended Dec. 31, 2007, and 2008.
The auditors pointed out to the Company's net loss and its non-
compliance with covenants related to its long-term debt
obligations.
===========
P A N A M A
===========
MULTIBANK INC: S&P Raises Counterparty Credit Rating to 'BB'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term counterparty credit rating on Multibank Inc. y Subisidiarias
to 'BB' from 'BB-'. At the same time, S&P affirmed its short-term
'B' rating on the bank. The outlook is stable.
"The upgrade reflects Multibank's successful business strategy,
which has led to a consistent market share growth and business
diversification, while maintaining good asset quality and adequate
liquidity and capitalization ratios. The ratings are balanced by
the absence of a central bank as a source of liquidity, relatively
high concentration by client, and challenges for expected growth
in 2010," said Standard & Poor's credit analyst Jos‚ P‚rez-
Gorozpe.
Multibank has taken advantage of Panama's evolving banking
industry to expand. As of Dec. 31, 2009, the bank's market
position in Panama showed significant improvement, ranking 12th in
loan portfolio and deposit volumes, up from 23rd and 20th,
respectively, in 2005. S&P is expecting continued growth, which
may be reflected in a gradual improvement of the bank's market
share.
The stable outlook on Multibank reflects S&P's expectation that
the bank will keep increasing its market share. S&P also expects
the bank to maintain good asset quality, adequate reserve
coverage, and decent capitalization ratios.
Loan concentrations remain a source of concern -- the bank would
have to significantly reduce these concentrations while
maintaining its good financial profile before S&P would consider a
possible boost in ratings.
A negative rating action would result if asset quality indicators
deteriorate, or recurrent revenues or capitalization erode.
=======
P E R U
=======
BANCO DE CREDITO: Peru's National Industry to Reach 5% Growth
-------------------------------------------------------------
Peru's industry will reach a five percent growth this year, with
rising expectations, Andina News reports, citing Banco de Credito
del Peru. "Although, it is clear that the worst of the global
crisis for the sector has already passed, there are still
different behaviors among subsectors", the report quoted the bank
as saying.
According to the report, the bank said that in that sense, the
levels of production previous to the international crisis have not
recovered yet, and such process can take some more months.
"Having seen the behavior of the two last months, it seems like
the growth pace has moderated, even if it is considered only the
behavior of the non-primary manufacture", the bank indicated, the
report relates.
BCP, the report notes, explained that it is based on that the
industries that are mostly focused on the external market are
still facing a contraction period of its demand that could last
some quarters.
About Banco de Credito del Peru
Banco de Credito del Peru is Peru's largest bank, with a
dominating market share of over 30% of deposits, and boasts
total consolidated assets of US$9.6 billion and equity of US$780
million as of June 30, 2006. It is the principal operating
company within Credicorp, Peru's largest financial services
company, which controls 96.2% of Banco de Credito; Credicorp is
widely held by local and foreign institutional shareholders.
* * *
As reported in the Troubled Company Reporter-Latin America on
November 10, 2009, Standard & Poor's Ratings Services said that it
affirmed its 'BB' subordinated debt rating on Banco de Credito del
Peru's US$250 million noncumulative fixed/floating-rate step-up
junior subordinated notes due 2069. Proceeds from the issuance
will be used for general corporate purposes.
=================
V E N E Z U E L A
=================
FERTINITRO FINANCE: Fitch Retains 'CCC' Rating on $250 Mil. Bonds
-----------------------------------------------------------------
Fitch Ratings maintains FertiNitro Finance Inc.'s US$250 million
8.29% secured bonds due 2020 at 'CCC' on Rating Watch Negative.
The rating action reflects FertiNitro's payment yesterday of
$39.5 million in semi-annual debt service. The timely payment
(due April 1) prevents further decline to FertiNitro's rating.
The rating also takes into account information provided by
management that the cash flow for the current payment was
generated from plant operations rather than cost reductions and
capital investment deferrals which enabled the October 2009 debt
payment. Fitch expects rating pressure to remain through 2011,
when the project reaches its maximum annual debt service
requirement. The subsequent decline in debt service coincides
with the maturity of bank debt separate from the secured bonds.
The Rating Watch Negative status remains as near-term pressures
could adversely affect FertiNitro's ability to make its next debt
payment of $38.8 million due Oct. 1, 2010. Specifically, the
combination of weaker ammonia and urea prices since 2008 and a
history of lower than expected production levels contribute to
Fitch's view of FertiNitro's distressed financial position and
limited debt service capacity in 2010. While management reports
that it will have a modest cash balance to support operations, the
debt service reserve fund is depleted as a result of yesterday's
debt payment. Based on Fitch's 'Rating Criteria for
Infrastructure and Project Finance', dated Sept. 29, 2009, Fitch
projects a 2010 debt service coverage ratio of 0.77 times,
indicating that without sponsor support or sustained improvements
in plant operations, the project may not have enough cash
available for the next debt service payment.
As urea makes up 80% of project revenues, Fitch is concerned by
the volatility in urea prices. Urea prices fell to a low of
$181/metric ton in June 2009 from a high of $693/MT in August
2008. In 2009 the average price was $223/MT, down from the 2008
average of $416/MT. These prices reflect the blend of selling
domestically at the official price of $72.19/MT per the May 2007
Decree and of exporting at international market prices. For
ammonia, prices declined to a low of $81.60/MT in January 2009
from a high of $852.48/MT in September 2008. Ammonia prices
averaged $216/MT in 2009 down from $506/MT in 2008.
Additional financial pressure derives from the requirement that
FertiNitro supply urea to the Venezuelan market at a price of
about $36.00 per metric ton, half of the $72.19/MT price in 2009
before the currency devaluation. Mitigating this concern is that
actual urea shipments in 2009 were approximately 122,000 MT below
the budget estimate of 175,000 MT. In 2009, domestic urea sales
were 10% of the total volume of 1,204,914 MT.
Furthermore, it is uncertain that FertiNitro will be able to
perform at projected production levels (85% of capacity for
ammonia and 83% of capacity for urea) absent planned capital
expenditures of nearly $20 million in 2010, which are partly
derived from deferring a portion of investments planned for 2009.
In 2009 the production versus nameplate capacity was 78% for
ammonia and 74% for urea consistent with 2008 results and below
2007 levels of 83% for ammonia and 81% for urea.
Recent legislative action has increased uncertainty regarding the
potential for additional government intervention. In June 2009,
the Official Gazette 39,203 for the Development of Petrochemical
Activities law was approved by the Venezuelan National Assembly.
The law gives Pequiven the right to manage basic and intermediate
petrochemical activities-related companies. The right could be
executed directly by the state-owned company or via mixed
enterprises through which Pequiven decision making and
participation in the project could increase to at least 50%.
Fitch will monitor these key drivers that could affect
FertiNitro's rating:
-- Ability and willingness to make the next debt service
payment;
-- Plant production levels and minimization of forced outages;
-- Trend in urea and ammonia prices;
-- Domestic sales trend in relation to management's budget; and
-- Impact of additional government intervention.
FertiNitro, located in the Jose Petrochemical Complex in
Venezuela, ranks as one of the world's largest nitrogen-based
fertilizer plants, with nameplate daily production capacity of
3,600 MT of ammonia and 4,400 MT of urea. FertiNitro is owned 35%
by a Koch Industries, Inc. subsidiary, 35% by Pequiven, 20% by a
Snamprogetti S.p.A. subsidiary, and 10% by a Cerveceria Polar,
C.A. subsidiary.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
April 20-22, 2010
TURNAROUND MANAGEMENT ASSOCIATION
Sheraton New York Hotel and Towers, New York, NY
Contact: http://www.turnaround.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. 6-8, 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/
October 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.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 2010. 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 * * *