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/raid1/www/Hosts/bankrupt/TCRLA_Public/100405.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 Monday, April 5, 2010, Vol. 11, No. 065 Headlines B R A Z I L BRASKEM SA: Completes Acquisition of Sunoco Chemicals MARFRIG ALIMENTOS: Records R$679.1-Million net Income in 2009 C A Y M A N I S L A N D S AKANA CAPITAL: Shareholder to Hear Wind-Up Report on April 13 ALEXISLAND LTD: Placed Under Voluntary Wind-Up ALTERRA CURACAO: Shareholders' Final Meeting Set for April 16 ANALYTIC GLOBAL: Creditors' Proofs of Debt Due on April 29 ANCHORAGE MTR: Shareholders' Final Meeting Set for April 16 ARLOS BOND: Shareholders' Final Meeting Set for April 9 AXEL INVESTMENT: Shareholders Receive Wind-Up Report AXEL MANAGEMENT: Shareholders Receive Wind-Up Report BAYBERRY FUNDING: Shareholders' Final Meeting Set for April 20 CABOT INVESTMENTS: Shareholders' Final Meeting Set for April 9 CAM INTERNATIONAL: Shareholders' Final Meeting Set for April 22 CLEPSYDRA SHORT-TERM: Creditors' Proofs of Debt Due on April 30 CORRELL GLOBAL: Creditors' Proofs of Debt Due on April 21 CYRUS II: Creditors' Proofs of Debt Due on April 19 EMERGING MARKET: Creditors' Proofs of Debt Due on June 30 FOUNTAIN AIR: Shareholders' Final Meeting Set for April 20 J.P. MORGAN: Creditors' Proofs of Debt Due on April 29 KGR CAPITAL: Shareholders' Final Meeting Set for April 22 LARR INVESTMENTS: Members' Final Meeting Set for April 15 LEXINGTON INVESTMENT: Shareholder to Hear Wind-Up Report MAISON CAPITAL: Shareholders' Final Meeting Set for April 22 MOSAIC CAPITAL: Shareholders' Final Meeting Set for April 13 MS RETAIL: Creditors' Proofs of Debt Due on April 29 MS RETAIL: Creditors' Proofs of Debt Due on April 29 NOMINEE LIMITED: Shareholders' Final Meeting Set for April 20 SUDELEY LIMITED: Shareholders' Final Meeting Set for April 7 UBP TURKISH: Creditors' Proofs of Debt Due on April 19 WAH AND: Shareholder to Hear Wind-Up Report on April 15 WIJO JAPAN: Creditors' Proofs of Debt Due on April 29 G R E N A D A * GRENADA: IMF Approves US$13.3 Million Arrangement H A I T I * HAITI: IDB Pledges US$400 Million New Grants J A M A I C A AIR JAMAICA: Divestment is Underway, Minister Says M E X I C O HIPOTECARIA SU CASITA: Grupo Financiero May Purchase Firm S T L U C I A * ST. LUCIA: Macroeconomic Outcomes Weakened Significantly V E N E Z U E L A PETROLEOS DE VENEZUELA: To Spend US$60-80MM in Junin 6 in 2010 X X X X X X X X * BOND PRICING: For the Week March 29, to April 2, 2010 - - - - - =========== B R A Z I L =========== BRASKEM SA: Completes Acquisition of Sunoco Chemicals ----------------------------------------------------- Braskem S.A. has completed its acquisition of the polypropylene business of Sunoco Chemicals. With the acquisition, which was initially announced on February 1, Braskem invested $350 million as part of its strategy to establish an industrial base in the United States, which will serve as an important platform for its future international expansion. The U.S. operations for Braskem now have the capacity to produce two billion pounds of polypropylene per year, which represents 13% of the country's installed PP production capacity. The acquisition of Sunoco Chemicals and the resulting synergies provide customers with a broader portfolio of products and services. With the acquisition of these assets, Braskem strengthens its international expansion strategy and its position as one of the global leaders in the polypropylene industry. The company becomes the world's third-largest producer of polypropylene with annual production capacity of 6.5 billion pounds per year. "We will take advantage of the experience of the current Sunoco Chemicals key executives, who have excellent knowledge of U.S. market. And the team will be reinforced by the arrival of new leaders who will bring expertise and practical experience of Braskem's successful strategy and business culture," said Bernardo Gradin, Braskem's CEO. With headquarters of U.S. operations in Philadelphia, Braskem has three industrial units located in La Porte, Texas; Marcus Hook, Pa; and Neal, W.V., as well as its Technology and Innovation Center in Pittsburgh. For the employees in the United States, the acquisition by a company with polypropylene as part of its core business will bring new opportunities for growth and expanded customer relationships. In addition to polypropylene, Braskem's core business also includes polyethylene and PVC. With annual gross revenue of nearly $12 billion, the company integrates in the first- and second-generation of the petrochemical chain. In 2009, Braskem exported $2.5 billion worth of products to more than 50 countries, which included resins and basic petrochemicals such as benzene and toluene. About Braskem SA Braskem S.A. -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As of March 8, 2010, the company continues to carry Moody's Ba1 rating. The company also continues to carry Fitch ratings' BB+ LT Issuer Default ratings and Senior Unsecured Debt rating MARFRIG ALIMENTOS: Records R$679.1-Million net Income in 2009 ------------------------------------------------------------- Marfrig Alimentos S.A. reported net income in fiscal year 2009 of R$679.1 million, reversing the net loss of R$35.5 million recorded in 2008. Gross revenue in the year was R$10.28 billion, up 52% from 2008. The chart below shows the growth in Marfrig's Gross Revenue from 2005 to 2009. In an economic scenario marked by changes in consumption habits, limited financial resources and foreign exchange volatility, Marfrig's risk-dispersion strategy, which was adopted at the company's founding, once again proved well chosen -- this time due to strong efforts in the domestic markets of the 13 countries where the company operates industrial facilities. Sales volume in these local markets accounted for 71.3% of the Group's total sales volume and 63.9% of its total gross revenue. In 2009, Marfrig sold 2.2 million tons of food in more than 100 countries, for growth in sales volume of 47.6% on the prior year. A portion of this advance was due to the full consolidation of the results of companies acquired in the second half of 2008, the increase in installed capacity utilization, the leasing of plants and the startup in Brazil of lamb and turkey operations. Capital Expenditure Over the last three years, Marfrig has invested approximately R$ 5 billion to acquire 37 companies in Brazil and abroad. The Group has operations in 13 countries, with a total of 92 industrial units and offices. In 2009, Marfrig carried out and announced various investments, such as the implementation of lamb operations in Brazil, the acquisition of the turkey assets in Brazil of Doux Frangosul S.A., the capacity expansion at the Diamantino Agroindustrial Complex in Mato Gross state (accompanied by the installation of the country's largest and most modern hog waste treatment system), the leasing of the units from Margen S.A. and Mercosul S.A. and the acquisitions of Seara Alimentos Ltda. and Grupo Zenda. About Marfrig Alimentos Brazil-based Marfrig Alimentos SA (formerly known as Marfrig Frigoroficos e Comercio de Alimentos) processes beef, pork, lamb, and poultry; and produces frozen vegetables, canned meats, fish, ready meals, and pasta. The company operates in Southern America, the united states, and Europe. * * * As of April 5, 2010, the company continues to carry these low ratings from the major rating agencies: -- Moody's "B1" LT Corp Family Rating; -- Standard and Poor's "B+" LT Foreign Issuer Credit rating; and -- Fitch ratings' "B+" LT Issuer Credit ratings ========================== C A Y M A N I S L A N D S ========================== AKANA CAPITAL: Shareholder to Hear Wind-Up Report on April 13 ------------------------------------------------------------- The sole shareholder of Akana Capital Offshore Fund, Ltd. 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: Ogier c/o Jonathan Bernstein Telephone: (345) 815-1897 Facsimile: (345) 949-9876 ALEXISLAND LTD: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary general meeting held on March 8, 2010, the shareholders of Alexisland Ltd. resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM Ltd. Governor's Square, Ground Floor West Bay Road, PO Box 1982 Grand Cayman KY-1104, Cayman Islands ALTERRA CURACAO: Shareholders' Final Meeting Set for April 16 ------------------------------------------------------------- The shareholders of Alterra Curacao Holdings, Ltd. will hold their final meeting on April 16, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, Cayman Islands KY1 9002 ANALYTIC GLOBAL: Creditors' Proofs of Debt Due on April 29 ---------------------------------------------------------- The creditors of Analytic Global Opportunity Fund I, Ltd. are required to file their proofs of debt by April 29, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 9, 2010. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 ANCHORAGE MTR: Shareholders' Final Meeting Set for April 16 ----------------------------------------------------------- The shareholders of Anchorage MTR Offshore Fund, Ltd. will hold their final meeting on April 16, 2010, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, Cayman Islands KY1 9002 ARLOS BOND: Shareholders' Final Meeting Set for April 9 ------------------------------------------------------- The shareholders of Arlos Bond Fund Ltd. will hold their final meeting, on April 9, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 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 AXEL INVESTMENT: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Axel Investment Fund Ltd. received on March 31, 2010, at 12:00 noon, 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 AXEL MANAGEMENT: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of The Axel Management Group received on March 31, 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 BAYBERRY FUNDING: Shareholders' Final Meeting Set for April 20 -------------------------------------------------------------- The shareholders of Bayberry Funding, Ltd. will hold their final meeting, on April 20, 2010, at 9:40 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CABOT INVESTMENTS: Shareholders' Final Meeting Set for April 9 -------------------------------------------------------------- The shareholders of Cabot Investments will hold their final meeting on April 9, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hugh Dickson c/o Prudence Pryce P.O. Box 1370, Grand Cayman KY1- 1108 Cayman Islands Telephone: (345) 815 8236 Facsimile: (345) 949 7120 CAM INTERNATIONAL: Shareholders' Final Meeting Set for April 22 --------------------------------------------------------------- The shareholders of Cam International will hold their final meeting, on April 22, 2010, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CLEPSYDRA SHORT-TERM: Creditors' Proofs of Debt Due on April 30 --------------------------------------------------------------- The creditors of Clepsydra Short-Term Trade Finance Fund Limited are required to file their proofs of debt by April 30, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 3, 2010. The company's liquidator is: Ian D. Stokoe c/o Aaron Gardner Telephone: (345) 949 8655 Facsimile: (345) 945 4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands CORRELL GLOBAL: Creditors' Proofs of Debt Due on April 21 --------------------------------------------------------- The creditors of Correll Global Markets Fund are required to file their proofs of debt by April 21, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 4, 2010. The company's liquidator is: Maricorp Services Ltd. c/o Steven J. Barrie Telephone: 345 949 9710 Facsimile: 345 945 2188 31 The Strand, P O Box 2075 Grand Cayman KY1-1105 CYRUS II: Creditors' Proofs of Debt Due on April 19 --------------------------------------------------- The creditors of Cyrus II Holdings SPC are required to file their proofs of debt by April 19, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on February 22, 2010. The company's liquidator is: John C. McKenna, CA Telephone: (441) 292 5526 e-mail: john.mckenna@frsl.bm P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands EMERGING MARKET: Creditors' Proofs of Debt Due on June 30 --------------------------------------------------------- The creditors of Emerging Market Debt Limited are required to file their proofs of debt by June 30, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 9, 2010. The company's liquidators are: Stuart Brankin Desmond Campbell Telephone: (345) 949 5586 c/o Aston Corporate Managers, Ltd. P.O. Box 1981, Grand Cayman, KY1-1104 FOUNTAIN AIR: Shareholders' Final Meeting Set for April 20 ---------------------------------------------------------- The shareholders of Fountain Air Ltd will hold their final meeting, on April 20, 2010, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands J.P. MORGAN: Creditors' Proofs of Debt Due on April 29 ------------------------------------------------------ The creditors of J.P. Morgan Leveraged Multistrategy Fund II, Ltd. are required to file their proofs of debt by April 29, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 10, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands KGR CAPITAL: Shareholders' Final Meeting Set for April 22 --------------------------------------------------------- The shareholders of KGR Capital Management Ltd will hold their final meeting, on April 22, 2010, at 10:05 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands LARR INVESTMENTS: Members' Final Meeting Set for April 15 --------------------------------------------------------- The members of Larr Investments Limited will hold their final meeting, on April 15, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487, Grand Cayman KY1-1106 Cayman Islands LEXINGTON INVESTMENT: Shareholder to Hear Wind-Up Report -------------------------------------------------------- The sole shareholder of Lexington Investment Fund will receive on, April 14, 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: Ogier c/o Michael Lubin Telephone: (345) 815 1793 Facsimile: (345) 949-9876 MAISON CAPITAL: Shareholders' Final Meeting Set for April 22 ------------------------------------------------------------ The shareholders of Maison Capital Corporation will hold their final meeting, on April 22, 2010, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands MOSAIC CAPITAL: Shareholders' Final Meeting Set for April 13 ------------------------------------------------------------ The shareholders of Mosaic Capital Management will hold their final meeting on April 13, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 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 MS RETAIL: Creditors' Proofs of Debt Due on April 29 ---------------------------------------------------- The creditors of MS Retail Limited are required to file their proofs of debt by April 29, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 10, 2010. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 MS RETAIL: Creditors' Proofs of Debt Due on April 29 ---------------------------------------------------- The creditors of MS Retail II Limited are required to file their proofs of debt by April 29, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 10, 2010. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 NOMINEE LIMITED: Shareholders' Final Meeting Set for April 20 ------------------------------------------------------------- The shareholders of Nominee Limited will hold their final meeting, on April 20, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SUDELEY LIMITED: Shareholders' Final Meeting Set for April 7 ------------------------------------------------------------ The shareholders of Sudeley Limited will hold their final meeting on April 7, 2010, at 4:30 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Talal Mohammad Abdulraheem Mehyar Mecca Street PO Box 9988, Amman 11191, Jordan e-mail: talalmehyar@gmail.com Telephone: + (962) 77 7 500506 Facsimile: + (962) 6 541225 UBP TURKISH: Creditors' Proofs of Debt Due on April 19 ------------------------------------------------------ The creditors of UBP Turkish Equity Fund Ltd. are required to file their proofs of debt by April 19, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 2, 2010. 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 WAH AND: Shareholder to Hear Wind-Up Report on April 15 ------------------------------------------------------- The sole shareholder of Wah and Chung Investment Company Limited will receive on, April 15, 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: Lion International Management Limited P.O. Box 71, Craigmuir Chambers Road Town, Tortola, British Virgin Islands WIJO JAPAN: Creditors' Proofs of Debt Due on April 29 ----------------------------------------------------- The creditors of Wijo Japan Value Fund Inc. are required to file their proofs of debt by April 29, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 4, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands ============= G R E N A D A ============= * GRENADA: IMF Approves US$13.3 Million Arrangement --------------------------------------------------- The Executive Board of the International Monetary Fund approved Grenada's request for a new three-year arrangement under the Extended Credit Facility totaling SDR8.775 million (about US$13.3 million). Approval of the program makes an initial disbursement of SDR 1.275 million (about US$1.9 million) available immediately. The new arrangement aims at helping Grenada cushion the effects of the global crisis and support the country's agenda of economic reforms aimed at boosting growth, reducing poverty, strengthening the private sector and the business climate, and reducing vulnerabilities in the financial sector. The Executive Board also completed the fifth and last review of Grenada's economic performance under the country's previous ECF arrangement, allowing for the immediate disbursement of an amount equivalent to SDR 1.68 million (about US$2.6 million), bringing total disbursements to SDR 16.38 million (about US$24.9 million). The Executive Board also approved the request for a waiver of the missed performance criteria on the primary balance excluding grants and on the non-accumulation of external official arrears. The three-year ECF with Grenada was approved on April 17, 2006 (see Press Release No. 06/75), and in July 2008 was augmented to SDR 12.0 million (about US$18.2 million) to help mitigate the impact of food and fuel price shocks and extended by one year to April 16, 2010. The arrangement was augmented again to SDR 16.4 million (about US$24.9 million) in June 2009 to help mitigate the impact of the global downturn and financial turmoil. Following the Executive Board discussion, Mr. Murilo Portugal, Deputy Managing Director and Acting Chair, issued the following statement: "The global economic crisis has had a significant adverse impact on Grenada. Economic activity slowed, reflecting sharply weaker tourism receipts and FDI-financed construction, resulting in a deterioration of the fiscal situation. In addition, the collapse of the Trinidad and Tobago-based CL Financial Group has increased financial uncertainty and can have fiscal implications. The authorities are continuing to focus on coping with the impact of the external shocks, while laying the foundation for fiscal consolidation and growth over the medium term. The new IMF arrangement under the Extended Credit Facility will support the authorities' efforts to continue with their economic reform program. "The authorities have taken appropriate actions to improve expenditure control and ensure timely debt service payments. They are adopting a three-year rolling budget with explicit annual targets on the public debt-to-GDP ratio. To help safeguard debt sustainability, it is important to base the decision on the possible external loan to build a luxury hotel on an objective assessment of the project's returns, availability of concessional financing, and majority private sector participation. "The banking sector has remained resilient, and the authorities have made important progress in strengthening the capacity for nonbank financial supervision and regulation, including the enactment of the new Insurance Act. They are working closely with regional governments to contain the fallout from the collapse of the CL Financial Group. "Progress has been made with structural reforms, including introduction of a valued added tax in February 2010. The completion of a Country Poverty Assessment will serve as a basis for preparing a new Poverty Reduction Strategy," Mr. Portugal said. Recent Developments Grenada's economic activity contracted significantly in 2009, reflecting a decline in tourist arrivals and a collapse in foreign direct investment (FDI)-financed construction activity, which on a year-on-year basis fell 13% and 52%, respectively. Tightening financial conditions and increasing unemployment also undermined domestic demand. However, a slower decline in both stay-over arrivals and FDI-financed construction in the last quarter of 2009 suggests that the economy is bottoming out. The current account deficit is estimated to have narrowed by more than 10 percentage points of GDP, as a sharp reduction in imports more than offset lower tourism receipts. In an effort to ameliorate the impact of the crisis, the authorities expanded public spending by accelerating the execution of donor-financed capital projects and overrunning current expenditure, resulting in an expansionary fiscal stance in 2009. The public debt-to-GDP ratio increased by more than 20 percentage points to 122 percent by the end of the year, with about 8 percentage points due to lower GDP. Although the banking sector has resisted well the effects of the crisis, maintaining strong capital adequacy ratios (15.9% as of December, 2009) well above the minimum required ratio of 8 percent, commercial banks' portfolio has deteriorated. Reflecting the weak economy, the ratio of nonperforming loans to total loans worsened to 5.9% in December 2009 from 3.5 percent one year earlier. The main financial sector challenge for the authorities is to address the problems created by the collapse of the Trinidad and Tobago-based CL Financial Group and its potential fiscal implications. Program Summary In the 2010 Budget Statement the government reaffirmed its commitment to continue its comprehensive medium-term economic reform program with strategic objectives to ensure fiscal and debt sustainability, reduce vulnerabilities in the financial sector, generate high and sustained growth through structural reforms that will support private sector-led growth, and reduce poverty. The fiscal framework for 2010 calls for a significant adjustment, given both the available financing and the high debt level; the primary deficit excluding grants is expected to improve from 7.9% of GDP in 2009 to 3.6% in 2010. Although the fiscal adjustment is large, it remains achievable by limiting growth in the wage bill and capital spending, reducing spending on goods and services, and improving commitment control. Over the medium term the program targets a primary surplus excluding grants in the range of 2-2.5 percent of GDP, which would enable the debt-to-GDP ratio to decline gradually to the Eastern Caribbean Currency Union (ECCU) target of 60% by 2020. For reducing vulnerabilities in the financial sector the authorities are continuing their effort to strengthen non-bank regulation to avoid repeating the experience with the CL Financial Group, comply with the internationally agreed standard for the exchange of tax information, and strengthen the framework for Anti-Money Laundering and Combating the Financing of Terrorism. With respect to generating high and sustained growth and reduce poverty, the government underscores the need to diversify the sources of growth, by reducing the dependence on tourism and encouraging private sector-led growth in areas such as health and education services, energy development, agro-processing, and information and communication technology. The authorities are committed to continue implementing structural reforms for improving the business and investment climate in favor of stronger private sector participation. The fiscal framework under the program allows for spending aimed at reducing poverty to support the authorities social development agenda. Based on a recent report by the World Bank, UNICEF, and UNFEM on Grenada, which underscored the need to strengthen and rationalize existing social programs, the government intends to implement several measures, including the consolidation of major cash transfer programs. ========= H A I T I ========= * HAITI: IDB Pledges US$400 Million New Grants ---------------------------------------------- The Inter-American Development Bank pledged to provide US$400 million in new grants over the next two years to help Haiti carry out its national recovery plan after the devastating January 12 earthquake. Speaking at an international donors meeting held at the United Nations, IDB President Luis Alberto Moreno hailed the Haitian government's vision to turn the worst natural disaster in their country's history into an opportunity to build a "new Haiti" with stronger democratic institutions, a more dynamic economy and a more equal society. "We have witnessed close-up the capacity of the people of Haiti to overcome difficult challenges and get back on their feet quickly," he said. "With the assistance of those of us in this room, and from others outside as well, we can help turn the vision of the new Haiti into a reality." Earlier in March, Moreno told the delegates to the conference, the IDB's Board of Governors agreed on measures to provide Haiti some US$2 billion in grants over the next decade and to contribute US$479 million to cancel the country's remaining debt to the Bank. In April the IDB expects to approve around US$100 million in grants for Haiti, including US$30 million for temporary housing, $15 million for water and sanitation, US$3 million for an e- government platform and US$50 million in budget support for the Haitian government, which faces a sharp fall in revenues due to the economic damage losses caused by the earthquake. Later this year it will provide additional resources for investments in transportation infrastructure, schools, and natural disaster prevention and mitigation. The IDB is also looking at cash-for-work programs, agricultural assistance and reforestation projects to support Haiti's efforts to foster economic development beyond its capital city. "Some of these provide incentives for the 700,000 people who moved out of Port-au-Prince after the earthquake to remain in those areas," Moreno said. In a bid to help the Haitian private sector boost economic activity and job creation, the IDB is also working to promote local and foreign investments in new industrial parks and textile manufacturing plants. Through its Inter-American Investment Corporation (IIC) and the Multilateral Investment Fund (FOMIN), the IDB is also assisting small and medium-size businesses and micro-enterprises get back on their feet. In addition, the IDB will assist Haiti in setting up a multi-donor trust fund and an interim reconstruction commission that will track the flow of foreign assistance and ensure that the national development plan is carried out in a timely and transparent manner. The IDB has long been a leading source of long-term financing for Haiti. At present it has an active portfolio of around US$700 million, of which some US$330 million is undisbursed. About 40% of the financing is in infrastructure projects, 20% in agriculture and environment, 25% in basic services and 15% in governance and institutional capacity building to strengthen the Haitian public sector. ============= J A M A I C A ============= AIR JAMAICA: Divestment is Underway, Minister Says -------------------------------------------------- Jamaica Finance Minister Audley Shaw said that all is on track for the divestment of Air Jamaica Limited by April 12, 2010, Go- Jamaica News reports. According to the report, Mr. Shaw said that the government is also positioning itself to meet the financial commitments in time for the sale. The report relates that it includes the full payment of redundancy packages to workers on the day when they are being separated from the national airline. Mr. Shaw, the report notes, also said that there are other financial commitments that the Government will have to meet in time for the divestment. A transition team has been finalizing the arrangements including shareholding by the Government of Jamaica in Caribbean Airlines, he added. 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. =========== M E X I C O =========== HIPOTECARIA SU CASITA: Grupo Financiero May Purchase Firm --------------------------------------------------------- Grupo Financiero Banorte is said to be interested in purchasing Hipotecaria Su Casita, Poder360.com reports. According to the report, citing financial analysts, if Banorte completes the purchase, the bank will reaffirm its position as the number two private institution offering home loans, and would position itself near BBVA Bancomer. Hipotecaria Su Casita, S.A. de C.V. (BMV: CASITA) is Mexico's second largest specialized mortgage lending institution by market share. Its main function is to extend mortgage loans to low-income individuals under the auspices of Sociedad Hipotecaria Federal financing programs, and to provide construction financing to developers of low-income housing. It controls approximately 18% of the mortgage market served by Sofoles, based on total loan portfolio. It has 107 offices in Mexico. Hipotecaria Su Casita was established in 1994. * * * As reported in the Troubled Company reporter-Latin America on March 16, 2010, Standard & Poor's Ratings Services said that it lowered its global and Mexican national scale counterparty credit and senior unsecured debt ratings on Mexico-based mortgage and construction lender Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R. to 'B' from 'BB-' and to 'mxBBB-/mxA-3' from 'mxBBB+/ mxA-2', respectively. The outlooks are negative. ============== S T L U C I A ============== * ST. LUCIA: Macroeconomic Outcomes Weakened Significantly ---------------------------------------------------------- The Executive Board of the International Monetary Fund concluded the Article IV consultation with St. Lucia. Background Macroeconomic outcomes have weakened significantly. Real GDP is estimated to have contracted by 5.2% in 2009, reflecting a sharp decline in visitor arrivals and construction activity related to Foreign Direct Investment. For 2010, the outlook is for a nascent recovery, supported by higher advance hotel bookings and additional flights to the island. However, there are a number of downside risks to the outlook, including lower than the anticipated recovery in St. Lucia's main trading partners and FDI inflows. Inflation has declined from 7.2% in 2008 to 0.6% in 2009, and is expected to remain in the low single digits over the medium term. The fiscal position is estimated to have deteriorated sharply in FY2009/10, mainly on account of an increase in public expenditure. The primary fiscal balance is expected to shift from a surplus of about 2.3% of GDP in FY2008/09 to a deficit of about 2.5% in FY2009/10. On the revenue side, the cyclical decline was somewhat contained by a 20% increase in the prices of petroleum products in August 2009 and the adoption of a flexible energy-pricing regime. The implementation of other revenue-enhancing measures envisaged by the authorities at the time of the approval by the Executive Board of the Rapid Access Credit - Exogenous Shock Facility, however, has yet to occur. On the expenditure side, the authorities undertook a large public works program, resulting in capital expenditure increase of about 3% of GDP. The fiscal deficit is expected to be financed mainly by issuing securities on the Regional Government Securities Market. External imbalances have narrowed in 2009. The external current account deficit is projected to have declined by about 11 percentage points of GDP in 2009, reflecting lower FDI-related imports and smaller food and fuel import bills. Stayover arrivals are projected to decline by 6% (year-on-year), but discounting of hotel room rates and lower spending by tourists would result in a larger decline in tourism receipts. In addition, remittances are projected to decline in line with employment opportunities in migrant host countries. At about 20% of GDP, the estimated external current account deficit is close to its historical level and consistent with identified external financing. In 2009, credit to the private sector continued to decline and financial sector vulnerabilities have increased. The contraction in economic activity has resulted in a significant slowdown in private sector credit demand. At the same time, the weakening economic environment has led to an increase in non-performing loans and deterioration in other bank soundness indicators. While domestic bank lending rates have remained broadly stable, there are signs that conditions in the RGSM have tightened recently. The collapse of the Trinidad and Tobago-based CL Financial Group with operations in St. Lucia and other Eastern Caribbean Currency Union countries has highlighted weaknesses in the regulation and supervision of the non-bank financial sector. Executive Board Assessment The Executive Directors observed that the global downturn had led to a marked decline in St. Lucia's economic activity. The economy is recently showing welcome signs of an emerging recovery, although downside risks remain given the continued dependence on tourism. While the expansionary fiscal policy has helped to mitigate the adverse impact of the global crisis and protect the most vulnerable segments of the population, it has raised the fiscal deficit and public debt ratios significantly. Against this backdrop, Directors welcomed the authorities' commitment to implement a credible fiscal framework to achieve fiscal sustainability, while minimizing adverse implications for growth and employment. They encouraged the authorities to move ahead with the implementation of the planned value-added tax in 2010, and to embark on a measured withdrawal of discretionary spending, including by scaling back capital spending. Over the medium term, Directors emphasized the need to prioritize and improve the efficiency of public spending, to contain the growth of the public wage bill, and to seek more concessional financing in order to create fiscal space for higher targeted social spending and to absorb external shocks. Directors noted staff's assessment that St. Lucia's exchange rate does not show clear evidence of an overvaluation. Given risks of lower FDI inflows, and to increase the growth potential, they encouraged the authorities to move forward on structural reforms, including improving the business climate and boosting labor productivity. Directors observed that the financial system has been hit by both the economic downturn and the collapse of the CL-Financial Group. Given the deterioration in bank soundness indicators, they encouraged the authorities to closely monitor the financial sector and take action as needed. Directors welcomed the authorities' regional approach to the strengthening of regulation and supervision of nonbank financial institutions and the resolution of the insurance company BAICO. They looked forward to the adoption of the Financial Services Regulatory Act and related legislation. Directors commended the authorities' intention to keep the SDR allocation as a pooled liquidity buffer. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: To Spend US$60-80MM in Junin 6 in 2010 -------------------------------------------------------------- Russian companies and Venezuela will invest between US$60 million and US$80 million this year in the Junin 6 block in Venezuela's vast Orinoco heavy crude belt, Darya Korsunskaya at Reuters reports, citing a senior Russian oil executive. The report relates Petroleos de Venezuela and a consortium of Russian companies agreed in February to set up a joint venture to tap the Junin 6 field in the oil belt. According to the report, Vladimir Bogdanov, head of Surgutneftegas, said that Russian companies would start exploration in the area in 2011. The first $600 million tranche of an agreed US$1 billion signing fee had been transferred to Venezuela by the Russian companies, he added. Venezuela's energy minister, the report notes, said that the block would begin producing 50,000 barrels a day by the end of this year -- a first step toward Venezuela's goal of producing 450,000 b/d from the Orinoco belt. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As of March 8, 2010, the company continues to carry Moody's "Ba1" LC Curr Issuer rating. The company also continues to carry Standard and Poor's "B+" LT Issuer credit ratings. =============== X X X X X X X X =============== * BOND PRICING: For the Week March 29, to April 2, 2010 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA ARGENT-$DIS 8.28 12/31/2033 USD 69 ARGENT-PAR 1.18 12/31/2038 ARS 37.25749826 ARGENT-=DIS 7.82 12/31/2033 EUR 64.34857178 ARGNT-BOCON PR13 2 3/15/2024 ARS 71.85508609 BANCO MACRO SA 10.75 6/7/2012 USD 72.54031474 BUENOS AIRE PROV 9.625 4/18/2028 USD 73.15010381 MENDOZA PROVINCE 5.5 9/4/2018 USD 77.53109492 BRAZIL CESP 9.75 1/15/2015 BRL 71.56413383 CAYMAN ISLAND BANIF FIN LTD 3 12/31/2019 EUR 73.325 BARION FUNDING 0.63 12/20/2056 GBP 17.32956423 BARION FUNDING 1.44 12/20/2056 GBP 30.70998348 BCP FINANCE CO 4.239 #N/A N Ap EUR 72.75 BCP FINANCE CO 5.543 #N/A N Ap EUR 72.64585447 BES FINANCE LTD 6.984 2/7/2035 EUR 73.47399979 BISHOPSGATE ASSE 4.808 8/14/2044 GBP 72.50238 CHINA MED TECH 4 8/15/2013 USD 62.75 CHINA PROPERTIES 9.125 5/4/2014 USD 84.7402262 CHINA SUNERGY 4.75 6/15/2013 USD 66.509 DUBAI HLDNG COMM 6 2/1/2017 GBP 75.4375 FERTINITRO FIN 8.29 4/1/2020 USD 69 MAZARIN FDG LTD 1.44 9/20/2068 GBP 28.16996478 PANAMA CANAL RAI 7 11/1/2026 USD 83.75 PUBMASTER FIN 6.962 6/30/2028 GBP 71.57840443 SHINSEI FIN CAYM 6.418 #N/A N Ap USD 68.46666667 SHINSEI FIN CAYM 6.418 #N/A N Ap USD 68.863404 SHINSEI FINANCE 7.16 #N/A N Ap USD 67.96666667 SHINSEI FINANCE 7.16 #N/A N Ap USD 58.5 SOLARFUN POWER H 3.5 1/15/2018 USD 65.25 JAMAICA AIR JAMAICA LTD 8.125 6/14/2027 USD 67.75 PANAMA CARNIVAL CORP 2 4/15/2021 USD 106.25 PUERTO RICO PUERTO RICO CONS 6.2 5/1/2017 USD 50 PUERTO RICO CONS 6.5 4/1/2016 USD 63.375 VENEZUELA PETROLEOS DE VEN 5.375 4/12/2027 USD 51.62147417 PETROLEOS DE VEN 5.25 4/12/2017 USD 63.1849484 PETROLEOS DE VEN 5.125 10/28/2016 USD 60.95736209 PETROLEOS DE VEN 5 10/28/2015 USD 63.28870701 PETROLEOS DE VEN 4.9 10/28/2014 USD 68.07020856 PETROLEOS DE VEN 5.5 4/12/2037 USD 50.20779685 SIDETUR FINANCE 10 4/20/2016 USD 72.75 VENEZUELA 7 12/1/2018 USD 72.33334 VENEZUELA 7.75 10/13/2019 USD 72.6325 VENEZUELA 6 12/9/2020 USD 62.77778 VENEZUELA 9 5/7/2023 USD 74.74822 VENEZUELA 7.65 4/21/2025 USD 66.21336 VENEZUELA 8.25 10/13/2024 USD 70.01875 VENEZUELA 9.25 5/7/2028 USD 74.2284 VENEZUELA 5.75 2/26/2016 USD 73.04082 VENEZUELA 9.25 9/15/2027 USD 74.48442559 VENEZUELA 7 3/31/2038 USD 58.60438822 VENEZUELA 7 3/31/2038 USD 59.9875 VENZOD - 189000 9.375 1/13/2034 USD 74.38928 *********** 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 * * *