TCRLA_Public/100514.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      L A T I N  A M E R I C A

              Friday, May 14, 2010, Vol. 11, No. 094

                            Headlines



A R G E N T I N A

RAIT CRE: Fitch Downgrades Ratings on All Classes of Notes


B R A Z I L

BRASIL FOODS: Records BRL Million Profit on Sadia SA Acquisition
BRASIL FOODS: Sees Brazil Sales Topping Europe, U.S. Rebound
COMPANHIA ENERGETICA: To Pay US$14 Million in Dividends
JBS SA: USA Unit to Host 1Q Earnings Conference Call on May 17
GOL LINHAS: Bond Beats Tam SA in Brazilian Market

TAM SA: Gol Linhas' Bonds Beat Firm's in Brazilian Market
TAM SA: S&P Downgrades Corporate Credit Rating to 'B+'


C A Y M A N  I S L A N D S

ALPHAGEN AVIOR: Creditors' Proofs of Debt Due on June 10
ALPHAGEN VELAS: Creditors' Proofs of Debt Due on June 10
BELLEPLAIN LIMITED: Members to Receive Wind-Up Report on May 3
ERICA LIMITED: Members to Receive Wind-Up Report on May 3
HORIZON INTERNATIONAL: Creditors' Proofs of Debt Due on June 10

HUAXIN MINING: Creditors' Proofs of Debt Due on May 31
KASPA INTERNATIONAL: Members to Receive Wind-Up Report on May 3
KERANA LIMITED: Creditors' Proofs of Debt Due on June 10
LEONIA HOLDINGS: Creditors' Proofs of Debt Due on June 10
LEWIS BAY: Creditors' Proofs of Debt Due on June 10

LEWIS BAY: Creditors' Proofs of Debt Due on June 10
MAMF INVESTMENT: Creditors' Proofs of Debt Due on May 31
MSK INVESTOR: Grand Court Enters Wind-Up Order
PELICAN FINANCE: Creditors' Proofs of Debt Due on June 10
POLARIS CAPITAL: Creditors' Proofs of Debt Due on June 9

PORT CAPITAL: Members to Receive Wind-Up Report on June 10
RED PINE: Members to Receive Wind-Up Report on May 3
REDROCK LIMITED: Placed Under Voluntary Wind-Up
TERRA LNR I: Creditors' Proofs of Debt Due on June 10


C O L O M B I A

ECOPETROL SA: To Invest Up to US$7.5 Billion Annually
TRANSGAS DE OCCIDENTE: Fitch Affirms 'BB+' Rating on Senior Notes


E C U A D O R

* ECUADOR: To Sell US$1.5 Billion of Bonds to Finance Gap


J A M A I C A

JAMAICA URBAN TRANSIT: To Get 50 News Buses
ST. ANN BAUXITE: Capital Spending, Job Cuts to Save US$13MM a Year


M E X I C O

GRUMA SAB: UBS Upgrades Firm to Neutral
HIPOTECARIA SU: S&P Downgrades Counterparty Credit Rating to 'B-'
* Moody's Upgrades Issuer Rating on State of Mexico to 'Ba2'


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Signs US$30BB Ventures W/ Chevron & Repsol
PETROLEOS DE VENEZUELA: Completes Drilling & Evaluation at DR 6


V I R G I N  I S L A N D S

BORETS INTERNATIONAL: S&P Affirms 'BB-' Corporate Credit Rating




                         - - - - -


=================
A R G E N T I N A
=================


RAIT CRE: Fitch Downgrades Ratings on All Classes of Notes
----------------------------------------------------------
Fitch Ratings has downgraded all classes of RAIT CRE CDO I Ltd.
reflecting Fitch's base case loss expectation of 49.6%.  Fitch's
performance expectation incorporates prospective views regarding
commercial real estate market value and cash flow declines.  A
detailed list of rating actions follows at the end of this
release.

RAIT CDO is collateralized by both senior and subordinate
commercial real estate debt: 64.2% are either whole loans or A-
notes, and 32.1% are either mezzanine loans (24.3%) or equity
participations (7.8%) as of the April 2010 trustee report.
Approximately 3.7% of the portfolio is cash.  Fitch expects
significant losses upon default for the subordinate positions,
since they are generally highly leveraged debt classes.  Further,
17 loans (9.1%) are currently defaulted or delinquent while Fitch
considers nine loans (20.3%) to be Fitch Loans of Concern.  Fitch
expects partial to complete losses on the defaulted assets and
Loans of Concern.

RAIT CDO is a $1 billion CRE collateralized debt obligation
managed by RAIT Financial Trust.  The transaction has a five-year
reinvestment period during which principal proceeds may be used to
invest in substitute collateral.  The reinvestment period ends in
November 2011.  As of the April 2010 trustee report, all
overcollateralization and interest coverage (IC) ratios remained
above their covenants.  The Class F/G/H OC test has the tightest
cushion at 3.9%.

Under Fitch's updated methodology, approximately 75.2% of the
portfolio is modeled to default in the base case stress scenario,
defined as the 'B' stress.  In this scenario, the modeled average
cash flow decline is 10.9% from the most recent available cash
flows.  Fitch estimates that recoveries will average 34.0%.

The largest component of Fitch's base case loss expectation is an
A-note (3.4%) secured by a recently constructed 255,572 square
foot office property located in Scottsdale, Arizona.  The property
has been slow to stabilize and cash flow does not support the
loan.  The sponsor is coming out-of-pocket to cover debt service.
Fitch modeled a term default with a significant loss in its base
case scenario.

The next largest component of Fitch's base case loss expectation
is a whole loan (3.6%) secured by a 360 unit multifamily property
located in Glendale, Arizona.  The property is a failed condo
conversion that is currently being used as rental apartments.
Performance has lagged the market with respect to both rent and
occupancy, and cash flow declined by over 20% during 2009 as
vacancy spiked to 35% from 12%.  The current property cash flow is
insufficient to cover debt service and the borrower is covering
the shortfall out-of-pocket.  Fitch modeled a term default with a
significant loss in its base case scenario.

The third largest component of Fitch's base case loss expectation
is an A-note (2.8%) secured by a 638,000 sf regional mall located
in Houston, Texas.  The property suffers from low in-line
occupancy (41%) and two of the three anchors are dark.  Cash flow
at the property is insufficient to cover debt service payments and
the borrower is using the operating reserve to support the loan.
Fitch modeled a term default with a significant loss in its base
case scenario.

This transaction was analyzed according to the 'Surveillance
Criteria for U.S. Commercial Real Estate Loan CDOs,' which applies
stresses to property cash flows and uses debt service coverage
ratio (DSCR) tests to project future default levels for the
underlying portfolio.  Recoveries are based on stressed cash flows
and Fitch's long-term capitalization rates.  The default levels
were then compared to the breakeven levels generated by Fitch's
cash flow model of the CDO under the various default timing and
interest rate stress scenarios, as described in the report 'Global
Criteria for Cash Flow Analysis in CDOs'.  Based on this analysis,
the credit characteristics for classes A-1A and A-1B are generally
consistent with the 'BB' rating category.  The credit
characteristics for class A-2 are generally consistent with the
'B' rating category.

The ratings for classes B through J are based on a deterministic
analysis, which considers Fitch's base case loss expectation for
the pool, and the current percentage of defaulted and delinquent
assets and Fitch Loans of Concern factoring in anticipated
recoveries relative to each class' credit enhancement.

Based on this analysis, classes B through G are consistent with
the 'CCC' rating category, meaning default is a real possibility.
Fitch's base case loss expectation of 49.6% exceeds these classes'
respective current credit enhancement levels.  The rating for
classes H and J are deemed to be consistent with the 'CC' rating
category, meaning default appears probable given losses expected
on the currently defaulted/delinquent assets and Loans of Concern
in the pool generally exceed these classes' respective credit
enhancement levels.

Classes A-1A through A-2 were each assigned a Negative Outlook
reflecting Fitch's expectation of further negative credit
migration of the underlying collateral.  These classes were also
assigned Loss Severity ratings ranging from 'LS4' to 'LS5'
indicating each tranche's potential loss severity given default,
as evidenced by the ratio of tranche size to the expected loss for
the collateral under the 'B' stress.  LS ratings should always be
considered in conjunction with probability of default indicated by
a class's long-term credit rating.  Fitch does not assign Outlooks
or LS ratings to classes rated 'CCC' or lower.

Classes B through J were assigned Recovery Ratings to provide a
forward-looking estimate of recoveries on currently distressed or
defaulted structured finance securities.  Recovery Ratings are
calculated using Fitch's cash flow model and incorporate Fitch's
current 'B' stress expectation for default and recovery rates
(75.2% and 34.0%, respectively), the 'B' stress US$ LIBOR up-
stress, and a 24-month recovery lag.  All modeled distributions
are discounted at 10% to arrive at a present value and compared to
the class's tranche size to determine a Recovery Rating.

The assignment of 'RR4' to class B reflects modeled recoveries of
34% of its outstanding balance.  The expected recovery proceeds
are broken down:

  -- Present value of expected principal recoveries ($0);
  -- Present value of expected interest payments ($37.2 million);
  -- Total present value of recoveries ($37.2 million);
  -- Sum of undiscounted recoveries ($60.7 million).

Classes C through J are assigned a Recovery Rating of 'RR6' as the
present value of the recoveries in each case is less than 10% of
each class's principal balance.

Fitch has downgraded, assigned LS and RR ratings and Outlooks to
these classes as indicated:

  -- $200,000,000 class A-1A to 'BB/LS4' from 'AAA'; Outlook
     Negative;

  -- $275,000,000 class A-1B to 'BB/LS4' from 'AAA'; Outlook
     Negative;

  -- $90,000,000 class A-2 to 'B/LS5' from 'AAA'; Outlook
     Negative;

  -- $110,000,000 class B to 'CCC/RR4' from 'AA';

  -- $41,500,000 class C to 'CCC/RR6' from 'A+'

  -- $25,000,000 class D to 'CCC/RR6' from 'A';

  -- $16,000,000 class E to 'CCC/RR6' from 'A-';

  -- $22,000,000 class F to 'CCC/RR6' from 'BBB+';

  -- $20,500,000 class G to 'CCC/RR6' from 'B';

  -- $18,000,000 class H to 'CC/RR6' from 'B';

  -- $35,000,000 class J to 'CC/RR6' from 'B'.

Additionally, all classes are removed from Rating Watch Negative.


===========
B R A Z I L
===========


BRASIL FOODS: Records BRL Million Profit on Sadia SA Acquisition
----------------------------------------------------------------
Lucia Kassai at Bloomberg News reports that BRF Brasil Foods SA
reported a profit in the first quarter after it acquired its
biggest Brazilian rival and margins rose.

According to the report, citing a Brasil Foods statement, the
company recorded net income of BRL53 million (US$30 million), or
6 centavos a share, from a year-earlier net loss of BRL226
million, or BRL1.09 a share.  Perdigao was expected to post a
profit of 12.5 centavos a share on an adjusted basis, the average
estimate of seven analysts in a Bloomberg survey.

The report relates that the company's net sales almost doubled to
BRL5.05 billion from BRL2.6 billion following Perdigao's
acquisition last year of rival Sadia, which booked more that BRL3
billion in losses related to currency bets.  Brasil Foods, the
report notes, said that Ebitda margins rose to 8.9% from 4.5%.

Brasil Foods and Sadia, the report says, are still waiting for
approval from Brazil's antitrust regulator to fully merge assets
and operations.  The companies expect to cut costs by BRL500
million by 2012, Bloomberg News adds.

                     About BRF-Brasil Foods

BRF-Brasil Foods SA is a food processor in Latin America.  The
company raises chickens to produce poultry products.  Brasil foods
also processes frozen pasta, soybeans, and their derivatives, and
distributes frozen vegetables.  The company's core business is
chilled and frozen food.  The company has offices in the Middle
East, Asia, and Europe.

                           *     *     *
As of April 12, 2010, the company continues to carry Moody's Ba1
LT Corp Family rating.  The company also continues to carry
Standard and Poor's BB+ LT Issuer Credit Ratings.


BRASIL FOODS: Sees Brazil Sales Topping Europe, U.S. Rebound
------------------------------------------------------------
Lucia Kassai a Bloomberg News reports that BRF Brasil Foods SA
said that sales growth in the Latin American country will continue
to outpace Europe and the U.S.  The report relates that the
company's sales almost doubled to BRL5.05 billion from BRL2.6
billion.

According to the report, BRF Brasil Chief Executive Officer Jose
Antonio do Prado Fay said that demand in Brazil for the company's
products will expand by as much as 10% this year, outpacing export
growth of as much as 5%.  "Domestic demand is good and will stay
strong throughout 2010," the report quoted Mr. Fay as saying.
"Demand from international markets is gradually recovering," he
added.

BRF Brasil Foods, the report notes, said that the Brazilian
market, where margins are higher, accounted for about 63% of sales
in the first quarter.  "We continue to view a strong earnings
momentum over the next two years," the report quoted Alexandre
Pizano, an analyst at Bank of America in Sao Paulo, as saying.
"The antitrust regulator's approval, expected by mid-year, is one
of the company's relevant short- term drivers," he added.

Mr. Pizano rated the company a "buy."

                     About BRF-Brasil Foods

BRF-Brasil Foods SA is a food processor in Latin America.  The
company raises chickens to produce poultry products.  Brasil foods
also processes frozen pasta, soybeans, and their derivatives, and
distributes frozen vegetables.  The company's core business is
chilled and frozen food.  The company has offices in the Middle
East, Asia, and Europe.

                           *     *     *

As of April 12, 2010, the company continues to carry Moody's Ba1
LT Corp Family rating.  The company also continues to carry
Standard and Poor's BB+ LT Issuer Credit Ratings.


COMPANHIA ENERGETICA: To Pay US$14 Million in Dividends
-------------------------------------------------------
Companhia Energetica de Sao Paulo (CESP) said that it will pay out
BRL25 million (US$14 million) in dividends, in the form of
interest on its own equity, Rogerio Jelmayer at Dow Jones
Newswires reports.

According to the report, the company will pay BRL1.82 per
preferred share of class A, BRL0.03 per each preferred share of
Class B and BRL0.03 per common share.

The payment, the report relates, will be based on shareholders'
positions as of May 11, however, it didn't disclose the payment
date.

Companhia Energetica de Sao Paulo plans, constructs, and operates
electricity generation and distribution systems in the State of
Sao Paulo, Brazil.  The company generates electricity through
hydroelectric plants located on the rivers of Panama, tiete,
paraibuna, and Jaguari.

                           *     *     *

As of December 21, 2009, the company continues to carry Moody's
Ba2 LT Corp Family rating and Senior Unsecured Debt rating.

The company also continues to carry Standard and Poors' "B" LT
Issuer credit rating.


JBS SA: USA Unit to Host 1Q Earnings Conference Call on May 17
--------------------------------------------------------------
JBS USA, LLC will hold its first quarter 2010 earnings conference
call Monday, May 17, at 10:30 a.m. Eastern (8:30 a.m. Mountain).

The call will be open to holders of the company's 11.625% Senior
Notes due 2014 as well as prospective investors, securities
analysts and market makers.  For more information about the call,
visit http://www.jbsswift.com/and refer to the "JBS USA Bond
Investors" link under the Investor Relations tab.  Financial
statements for the first quarter 2010 will also be available to
investors on the Company's Web site on May 14, 2010.

JBS USA, LLC is a leading processor of beef and pork in the United
States and the number one processor of beef in Australia in terms
of daily slaughtering capacity.  The company processes, prepares,
packages and delivers fresh, processed and value-added beef and
pork products for sale to customers in over 60 countries on six
continents.  The Company is an indirect wholly owned subsidiary of
JBS S.A., the world's largest beef producer.

                           About JBS SA

JBS SA is one of the world's largest beef producers with
operations in Brazil, the United States, Argentina, Australia and
Italy.  The company is the largest producer and exporter of fresh
meat and meat by-products in Brazil, Argentina and Australian and
the third largest in the USA.

                           *     *     *

As of April 28, 2010, the company continues to carry Moody's B1
long term rating, LT Corp Family rating, and senior unsecured debt
rating.  The company also continues to carry Standard and Poor's
B+ Issuer Credit ratings.


GOL LINHAS: Bond Beats Tam SA in Brazilian Market
-------------------------------------------------
Veronica Navarro Espinosa and Gabrielle Coppola at Bloomberg News
report that Gol Linhas Aereas Inteligentes is beating its biggest
rival, Tam SA, in the bond market as Brazil's economic growth
accelerates amid a four-month rally in the real.  Gol's 7.5% bonds
due in 2017 yield 7.72%, or 82 basis points less than Tam SA's
similar-maturity notes, after yielding 476 basis points more a
year ago, according to data compiled by Bloomberg.

According to the report, citing April figures, the relationship
between the nation's two largest airlines reversed because Gol
gets 89% of its paid passenger miles from domestic business while
Tam receives 41% of its miles from international business.  The
report relates that the real's 6.8% gain since Feb. 1 has reduced
fuel and debt-servicing costs for Gol while hampering Tam's
revenue growth.  "Right now Gol is doing better because more of
its revenues are in reais," the report quoted Roger King, an
analyst at CreditSights Inc. who has covered airlines for 20
years, as saying.  "Many of their costs are in dollars. When the
real gets stronger, those costs become lower in Brazilian terms,"
he added.

The yield on Gol's US$221 million of 2017 bonds has tumbled 45
basis points since the end of January; while the yield on Tam's
US$298 million of 2017 notes dropped 29 basis points over that
time to 8.54% on May 12, 2010, according to Bloomberg data.  The
report relates that the gap between the two securities reached 99
basis points last week, the biggest since March 22.  Tam bonds
last yielded less than Gol debt on Oct. 21, the report says.

Mr. King, Bloomberg News discloses, said that Gol Linhas bonds
will likely keep outperforming Tam SA securities over the next
year.  The real will advance 3.1% more to US$1.72 per dollar by
year-end as the expansion lures investment, according to the
median estimate from 19 analysts surveyed by Bloomberg.

Gol Linhas, the report adds, has also held up better than Tam in
the equity market as the company's shares are down 14% this year,
compared with a 25% slide for Tam SA.

                         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.

                           About TAM SA

Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/--
has business agreements with the regional airlines Pantanal,
Passaredo, Total and Trip.  As of Jan. 14, the daily flight on the
Corumba -- Campo Grande route in Mato Grosso do Sul began to be
operated by a partnership with Trip.  With the expansion of the
agreement with NHT, TAM will now be serving 82 destinations in
Brazil, 45 of which with its own flights.  In addition, the
company is strengthening its presence in Rio Grande do Sul and
Santa Catarina.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
October 20, 2009, Fitch Ratings has assigned a 'BB-' rating to TAM
S.A.'s US$300 million proposed senior guaranteed notes due 2019.
These notes will be issued through TAM's subsidiary, TAM Capital 2
Inc and will be unconditionally guaranteed by TAM and TAM Linhas
Aereas S.A.  Proceeds from the proposed issuance will be used to
enhance the company's cash balance and for general corporate
purpose.


TAM SA: Gol Linhas' Bonds Beat Firm's in Brazilian Market
---------------------------------------------------------
Veronica Navarro Espinosa and Gabrielle Coppola at Bloomberg News
report that Gol Linhas Aereas Inteligentes is beating its biggest
rival, Tam SA, in the bond market as Brazil's economic growth
accelerates amid a four-month rally in the real.  Gol's 7.5% bonds
due in 2017 yield 7.72%, or 82 basis points less than Tam SA's
similar-maturity notes, after yielding 476 basis points more a
year ago, according to data compiled by Bloomberg.

According to the report, citing April figures, the relationship
between the nation's two largest airlines reversed because Gol
gets 89% of its paid passenger miles from domestic business while
Tam receives 41% of its miles from international business.  The
report relates that the real's 6.8% gain since Feb. 1 has reduced
fuel and debt-servicing costs for Gol while hampering Tam's
revenue growth.  "Right now Gol is doing better because more of
its revenues are in reais," the report quoted Roger King, an
analyst at CreditSights Inc. who has covered airlines for 20
years, as saying.  "Many of their costs are in dollars. When the
real gets stronger, those costs become lower in Brazilian terms,"
he added.

The yield on Gol's US$221 million of 2017 bonds has tumbled 45
basis points since the end of January; while the yield on Tam's
US$298 million of 2017 notes dropped 29 basis points over that
time to 8.54% on May 12, 2010, according to Bloomberg data.  The
report relates that the gap between the two securities reached 99
basis points last week, the biggest since March 22.  Tam bonds
last yielded less than Gol debt on Oct. 21, the report says.

Mr. King, Bloomberg News discloses, said that Gol Linhas bonds
will likely keep outperforming Tam SA securities over the next
year.  The real will advance 3.1% more to US$1.72 per dollar by
year-end as the expansion lures investment, according to the
median estimate from 19 analysts surveyed by Bloomberg.

Gol Linhas, the report adds, has also held up better than Tam in
the equity market as the company's shares are down 14% this year,
compared with a 25% slide for Tam SA.

                         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.

                           About TAM SA

Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/--
has business agreements with the regional airlines Pantanal,
Passaredo, Total and Trip.  As of Jan. 14, the daily flight on the
Corumba -- Campo Grande route in Mato Grosso do Sul began to be
operated by a partnership with Trip.  With the expansion of the
agreement with NHT, TAM will now be serving 82 destinations in
Brazil, 45 of which with its own flights.  In addition, the
company is strengthening its presence in Rio Grande do Sul and
Santa Catarina.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
October 20, 2009, Fitch Ratings has assigned a 'BB-' rating to TAM
S.A.'s US$300 million proposed senior guaranteed notes due 2019.
These notes will be issued through TAM's subsidiary, TAM Capital 2
Inc and will be unconditionally guaranteed by TAM and TAM Linhas
Aereas S.A.  Proceeds from the proposed issuance will be used to
enhance the company's cash balance and for general corporate
purpose.


TAM SA: S&P Downgrades Corporate Credit Rating to 'B+'
------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its
corporate credit rating on Brazil-based airline TAM S.A. to 'B+'
from 'BB-' and its national scale rating to 'brBBB+' from 'brA'.
The outlook is stable.

"The rating action reflects S&P's expectation that TAM's credit
metrics will remain aggressive in the next years, despite
improving market conditions in Brazil," said Standard & Poor's
credit analyst Reginaldo Takara.  "S&P's main assumption is that
yields will not increase enough to strengthen profitability and
cash flows significantly in the medium term.  In addition, fleet
expansion will continue adding new aircraft financing to the
company's total debt.  Finally, S&P believes load factors and
aircraft utilization may be affected by TAM's fleet strategy,
which help explain the company's having a weaker cost position
than its main domestic competitor.  TAM's liquidity will remain a
relevant mitigating factor for its leveraged capital structure and
high short-term debt."

TAM's business profile is weak.  The company benefits from a
strong, leading position in the fairly concentrated air
transportation market in Brazil, with a market share of 42.3%
through April 2010.  However, this has not prevented TAM from
facing fierce price competition, which has significantly affected
its profitability and cash flows in 2009.  TAM's aggressive
capacity expansion (resulting in lower aircraft utilization and
lower load factors) has also contributed for its weaker results.

The stable outlook reflects S&P's expectation that TAM's credit
metrics will remain aggressive despite stronger market conditions
projected for the next years.  S&P believes the company's
liquidity will allow it to face competition and manage its fleet
expansion in the next years, but cash flow will remain limited by
relatively weak yields.  "The ratings could be revised upwards if
TAM is able to reduce total debt and improve cash generation, for
example, reaching a total adjusted debt to EBITDA of less than
5.0x.  S&P could lower the ratings further if liquidity
deteriorates, exposing the company to higher refinancing risks,
with cash reserves of less than R$1 billion," Mr. Takara added.


==========================
C A Y M A N  I S L A N D S
==========================


ALPHAGEN AVIOR: Creditors' Proofs of Debt Due on June 10
--------------------------------------------------------
The creditors of The Alphagen Avior Fund Limited are required to
file their proofs of debt by June 10, 2010, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 26, 2010.

The company's liquidator is:

         Marc Randall
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102, Cayman Islands


ALPHAGEN VELAS: Creditors' Proofs of Debt Due on June 10
--------------------------------------------------------
The creditors of The Alphagen Velas Fund Limited are required to
file their proofs of debt by June 10, 2010, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 26, 2010.

The company's liquidator is:

         Marc Randall
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102, Cayman Islands


BELLEPLAIN LIMITED: Members to Receive Wind-Up Report on May 3
--------------------------------------------------------------
The members of Belleplain Limited will receive, on May 3, 2010,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman


ERICA LIMITED: Members to Receive Wind-Up Report on May 3
---------------------------------------------------------
The members of Erica Limited will receive, on May 3, 2010, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman


HORIZON INTERNATIONAL: Creditors' Proofs of Debt Due on June 10
---------------------------------------------------------------
The creditors of Horizon International Limited are required to
file their proofs of debt by June 10, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on April 26, 2010.

The company's liquidators are:

         Scott Aitken
         Connan Hill
         P.O. Box 1109, Grand Cayman KY1-1102
         Cayman Islands
         c/o Sylvia Lewis
         Telephone: 949-7755
         Facsimile: 949-7634
         P.O. Box 1109, Grand Cayman KY1-1102
         Cayman Islands


HUAXIN MINING: Creditors' Proofs of Debt Due on May 31
------------------------------------------------------
The creditors of Huaxin Mining (Holdings) Limited are required to
file their proofs of debt by May 31, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on April 19, 2010.

The company's liquidator is:

         Richard, Wai Hung Poon
         Room 1410, Harbour Centre, 25 Harbour Road,
         Wanchai, Hong Kong
         Telephone: (852) 2887 8621
         Facsimile: (852) 2887 8631


KASPA INTERNATIONAL: Members to Receive Wind-Up Report on May 3
---------------------------------------------------------------
The members of Kaspa International Investments Limited will
receive, on May 3, 2010, the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman


KERANA LIMITED: Creditors' Proofs of Debt Due on June 10
--------------------------------------------------------
The creditors of Kerana Limited are required to file their proofs
of debt by June 10, 2010, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on May 3, 2010.

The company's liquidator is:

         Marc Randall
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102, Cayman Islands


LEONIA HOLDINGS: Creditors' Proofs of Debt Due on June 10
---------------------------------------------------------
The creditors of Leonia Holdings Ltd. are required to file their
proofs of debt by June 10, 2010, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on April 21, 2010.

The company's liquidator is:

         Victor Murray
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102, Cayman Islands


LEWIS BAY: Creditors' Proofs of Debt Due on June 10
---------------------------------------------------
The creditors of Lewis Bay Macro Offshore Fund, Ltd. are required
to file their proofs of debt by June 10, 2010, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on April 27, 2010.

The company's liquidators are:

         Brendan Dolan
         Alfredo D'Onofrio
         c/o Lewis Bay Capital LLC
         2 Overhill Road, Suite 400
         Scarsdale, New York 10583, USA


LEWIS BAY: Creditors' Proofs of Debt Due on June 10
---------------------------------------------------
The creditors of Lewis Bay Macro Master Fund, Ltd. are required to
file their proofs of debt by June 10, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on April 16, 2010.

The company's liquidators are:

         Brendan Dolan
         Alfredo D'Onofrio
         c/o Lewis Bay Capital LLC
         2 Overhill Road, Suite 400
         Scarsdale, New York 10583, USA


MAMF INVESTMENT: Creditors' Proofs of Debt Due on May 31
--------------------------------------------------------
The creditors of MAMF Investment Corporation are required to file
their proofs of debt by May 31, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on April 12, 2010.

The company's liquidator is:

         Robert Bigelow III
         c/o Bigelow & Hart Capital Management LLC
         7 North Willow Street
         Suite 8A, Montclair, NJ 07042, USA


MSK INVESTOR: Grand Court Enters Wind-Up Order
----------------------------------------------
On April 22, 2010, the Grand Court of Cayman Islands entered an
order that voluntarily winds up the operations of MSK Investor,
Inc.

The company's liquidator is:

         Ian Stokoe
         PricewaterhouseCoopers
         P.O. Box 258, Strathvale House, George Town
         Grand Cayman KY1-1104, Cayman Islands


PELICAN FINANCE: Creditors' Proofs of Debt Due on June 10
---------------------------------------------------------
The creditors of Pelican Finance Ltd. are required to file their
proofs of debt by June 10, 2010, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on April 29, 2010.

The company's liquidator is:

         Darren Riley
         c/o Ellen J. Christian
         Telephone: 345 945 9208
         Facsimile: 345 945 9210
         c/o BNP Paribas Bank & Trust Cayman Limited
         3rd Floor Royal Bank House, Shedden Road
         George Town, Grand Cayman


POLARIS CAPITAL: Creditors' Proofs of Debt Due on June 9
--------------------------------------------------------
The creditors of Polaris Capital Limited are required to file
their proofs of debt by June 9, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on April 20, 2010.

The company's liquidator is:

         Eagle Holdings Ltd.
         c/o Barclays Private Bank & Trust (Cayman) Limited
         4th Floor, FirstCaribbean House
         P.O. Box 487, Grand Cayman KY1-1106
         Cayman Islands
         Telephone: 345 949-7128


PORT CAPITAL: Members to Receive Wind-Up Report on June 10
----------------------------------------------------------
The members of Port Capital International Limited will receive, on
June 10, 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


RED PINE: Members to Receive Wind-Up Report on May 3
----------------------------------------------------
The members of Red Pine Investments Ltd. will receive, on May 3,
2010, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman


REDROCK LIMITED: Placed Under Voluntary Wind-Up
-----------------------------------------------
On April 6, 2010, the shareholder of Redrock Limited passed a
resolution that voluntarily winds up the company's operations.

The company's liquidator is:

         Commerce Corporate Services Limited
         P.O. Box 694, Grand Cayman KY1-1107
         Cayman Islands
         Telephone: 949 8666
         Facsimile: 949 0626


TERRA LNR I: Creditors' Proofs of Debt Due on June 10
-----------------------------------------------------
The creditors of Terra LNR I Ltd. are required to file their
proofs of debt by June 10, 2010, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on April 19, 2010.

The company's liquidator is:

         Victor Murray
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102, Cayman Islands


===============
C O L O M B I A
===============


ECOPETROL SA: To Invest Up to US$7.5 Billion Annually
-----------------------------------------------------
Ecopetrol SA will increase investments to an average of US$7
billion to US$7.5 billion annually in coming years, Carlos Manuel
Rodriguez at Bloomberg News reports, citing Maria Victoria Riano,
Ecopetrol's director of mergers and acquisitions.  The projected
investments don't include potential acquisition expenditures, Ms.
Riano told the news agency in an interview.

According to the report, Ecopetrol SA plans to spend US$6.9
billion this year as it seeks to almost double crude oil output to
1 million barrels per day in 2015.  The report relates that the
company will increase production by 15% this year.  Ecopetrol
produced 521,000 barrels a day in 2009.

Ms. Riano, the report notes, said that Ecopetrol SA is purchasing
assets and forming ventures "mainly" on the U.S. side of the Gulf
of Mexico and in Brazil as part of its long-term expansion plan,.
The Colombian company may consider investments on the Mexican side
of the Gulf, if "Mexico opens a door," she added.

Ecopetrol said in February it will borrow as much as US$3.5
billion this year to help fund investment, the report adds.

                      About Ecopetrol S.A.

Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest
company in Colombia as measured by revenue, profit, assets and
shareholders' equity.  The company is Colombia's only vertically
integrated crude oil and natural gas company with operations in
Colombia and overseas.  Ecopetrol is one of the 40 largest
petroleum companies in the world and one of the four principal
petroleum companies in Latin America.  It is majority owned by the
Republic of Colombia and its shares trade on the Bolsa de Valores
de Colombia S.A. under the symbol ECOPETROL. Colombia owns 90% of
Ecopetrol.  The company divides its operations into four business
segments that include exploration and production; transportation;
refining; and marketing of crude oil, natural gas and refined-
products.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 15, 2009, Fitch Ratings assigned a 'BB+' rating to Ecopetrol
S.A.'s proposed issuance of at least US$1 billion senior unsecured
notes due 2019.  Proceeds will be used for investments and general
corporate purposes.

According to Moody's Investors Service, Venezuela continues to
carry a B2 foreign currency rating and a B1 local currency rating
with stable outlook.

As reported in the Troubled Company Reporter-Latin America on
September 7, 2009, Fitch Ratings affirmed Colombia's sovereign
ratings:

  -- Long-term foreign currency Issuer Default Rating at 'BB+';
  -- Short-term foreign currency IDR at 'B';
  -- Outstanding senior unsecured debt at 'BB+';


TRANSGAS DE OCCIDENTE: Fitch Affirms 'BB+' Rating on Senior Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed the 'BB+' debt rating of TransGas de
Occidente's 9.79% senior secured notes due 2010.  The Rating
Outlook is Stable.

The affirmation is based on the rationale that the notes are
solely supported by the tariff payments from Ecopetrol, tied to
throughput of the natural gas pipeline, under the Transportation
Service Agreement which has a 20-year tenure starting from project
operations.  It is worth noting that the debt associated with the
project will fully amortize in Nov. 1, 2010.  The total
outstanding debt amount (principal and interest) is completely
reserved in a Bank New York Mellon trust account.  Since
inception, the project's operating and financial performance has
been in line generally with Fitch's expectations.

Although the project economics supports a higher level of ratings,
it is constrained mainly by the Issuer Default Rating of Ecopetrol
(IDR of 'BB+' with a stable Outlook by Fitch), which is further
constrained by Colombia's country rating (long-term foreign
currency rating of 'BB+' with a Stable Outlook).  Additionally,
the total resources to pay the outstanding debt are completely
reserved ensuring the timely payment of capital and interest until
maturity in November 2010.

The scheduled investments needed to maintain the gas pipeline in
good conditions have been completed in a satisfactory manner, in
particular a major maintenance completed in 2008.  For YTD 2009,
the availability rate has been close to 100% and Ecopetrol has
paid the full tariff payments, i.e. no penalty was assessed
against TransGas.  The financial performance of the company was
more in line with the sponsor base and is expected to remain
stable throughout the term of the debt.  For the year 2010, the
outstanding debt is US$$10.56 million.  The total amount reserved
to pay capital and interest was deposited in two short-term
deposits with April 2010 and October 2010 maturity dates, dates
that match with the maturity date of the notes.  As such, the full
repayment of the project's debt is expected to be met as
scheduled.

TransGas was incorporated under Colombian law in 1995 to create,
build, own, operate, maintain and transfer a natural gas pipeline.
The project consists of a 206-mile, 20-inch diameter trunk line
and 47 lateral lines totaling approximately 275 miles with
metering stations to connect with distribution networks.  The
three largest equity holders of TransGas are TCPL Marcali Company
Ltd. (44%), BP Colombia Pipeline Ltd. (20%), and Gas Natural del
Oriente ESP (14%).


=============
E C U A D O R
=============


* ECUADOR: To Sell US$1.5 Billion of Bonds to Finance Gap
---------------------------------------------------------
Nathan Gill at Bloomberg News reports that Ecuador will sell
US$1.5 billion of bonds in its first offerings in the local market
in 17 months to help finance its budget deficit.  The government,
which has had limited access to financing since defaulting on
international bonds in 2008, will use proceeds from the sales to
help fund infrastructure projects, the securities regulator said
in a statement published in Quito-based newspaper El Comercio
obtained by Bloomberg.

Ecuador will sell bonds with maturities ranging from one to 12
years and start offering the debt on May 13, 2010, Nathalie
Suikouski, an economist at the securities regulator in Quito, told
Bloomberg News in a telephone interview.

According to the report, President Rafael Correa is seeking to
raise cash to cover a deficit the Finance Ministry estimates will
reach US$4.2 billion this year.  The report relates Finance
Minister Maria Elsa Viteri said before she resigned last month
that the country's Social Security Institute (IESS) plans to buy
$1.1 billion of government bonds this year.

Ms. Suikouski, the report discloses, said that the Finance
ministry will sell US$959 million in 10-year bonds at an interest
rate of 6.5%.  The government will issue $465 million of 12-year
bonds at 7% and US$91.3 million in one- and three-year bonds at an
interest rate between 4% and 4.5%, Ms. Suikouski added.

                           *     *     *

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
=============


JAMAICA URBAN TRANSIT: To Get 50 News Buses
-------------------------------------------
State-run Jamaica Urban Transit Company will receive 50 new buses
from the public transportation sector, RadioJamaica reports.  The
report relates that the buses will be cleared from the wharf on
May 18, 2010.

According to the report, Reginald Allen, Corporate Communications
Manager at the JUTC, said a second fleet is scheduled to arrive in
a matter of weeks.  The report relates Mr. Allen said that the new
buses will improve the JUTC's ability to provide service to the
public.  "In terms of both numbers and reliability, it puts us in
better position to more adequately service the needs of the
commuting public in the Kingston Metropolitan Area.  We're looking
forward to another 50 to 53 (buses) in July which is part of an
overall 200 unit arrangement that is extending into next year,"
the report quoted Mr. Allen as saying.

                            About JUTC

Jamaica Urban Transit Company was established in 1998 to provide a
centrally managed state-of-the-art public bus service.  The
government invested US$6 billion aiming to have an efficient
transport system and for the Jamaican people.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2009, RadioJamaica said JUTC has defaulted on loan
obligations with RBTT Bank and Petrocaribe Development Fund, among
others, due to cash flow problems.

The Ministry of Information, as cited by Radio Jamaica, stated
that the JUTC operates an overdraft facility of US$520 million at
the National Commercial Bank which expired in February.  The
report noted that the Ministry said this facility is consistently
utilized at the upper limit and, on occasions, exceeds the limit
giving rise to the imposition of penalty charges above 43%.


ST. ANN BAUXITE: Capital Spending, Job Cuts to Save US$13MM a Year
------------------------------------------------------------------
St. Ann Bauxite plans to reduce its employee headcount by 160
persons and outsource its mining operations to a third party aimed
to save JM$4 million (US$356 million) to JM$5 million (US$445
million) annually, Jamaica Observer reports.  The report relates
that the company has also cut capital expenditure by US$7 million
to US$8 million.

According to the report, Noranda Aluminum -- which owns 49% of St
Ann Bauxite Bauxite -- in a filing to the U.S. Securities and
Exchange Commission said that the "the substantial portion of our
bauxite mining to third party contractors" was contracted out on
April 21, 2010.  The report relates that the termination "through
a combination of voluntary retirement packages and involuntary
terminations", according to Noranda, will result in pre-tax
charges of US$3 million to US$4 million in the second quarter of
2010.

The report recalls that in 2009, Noranda "received a claim from
the UAWU in Jamaica which alleges that (it) failed to properly
negotiate with the union in advance of declaring approximately 150
UAWU members redundant".  The report says that Noranda said it was
contesting the claim "vigorously".

St. Ann Bauxite, the report notes, has a special mining lease with
the Government for the supply of bauxite.  The report relates that
the lease ensures access to sufficient reserves to allow St Ann to
ship annually 4.5 million dry metric tonnes of bauxite from mining
operations in a specified concession area through September 30,
2030.  In return for these rights, St. Ann is required to pay fees
called for in the establishment agreement totaling in excess of
US$2 million, the report adds.


===========
M E X I C O
===========


GRUMA SAB: UBS Upgrades Firm to Neutral
---------------------------------------
UBS upgraded has upgraded Gruma, S.A.B. de C.V. to neutral from
sell, Anthony Harrup at Dow Jones Newswires reports.  The report
relates that UBS cited recent price weakness and potential
benefits of currency depreciation in upgrading the firm.

According to the report, the investment bank kept its price target
for Gruma SAB at MXN24.  The report notes that Gruma SAB's shares
were gaining 3.2% to MXN22.30.

Headquartered in Monterrey, Mexico, Gruma, S.A.B. de C.V. --
http://www.gruma.com-- is a corn flour and tortilla producer and
distributor.  The company conducts its U.S. and European
operations principally through its subsidiary, Gruma Corporation,
which manufactures and distributes corn flour, packaged tortillas,
corn chips and related products.  As of Dec. 31, 2007, Gruma held
approximately 8.62 % of the capital stock of Grupo Financiero
Banorte, S.A.B. de C.V.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 30, 2009, Standard & Poor's Ratings Services said that its
ratings on GRUMA S.A.B. de C.V., including its 'B+' corporate
credit rating, remain on CreditWatch with negative implications,
where they were placed on Oct. 13, 2008.  S&P based that action on
its perception of GRUMA's more aggressive financial policy,
including the use of derivative instruments.


HIPOTECARIA SU: S&P Downgrades Counterparty Credit Rating to 'B-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its
ratings on Mexico-based mortgage and construction lender
Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R., including
lowering the global and Mexican national scale counterparty credit
ratings to 'B-' from 'B' and 'mxBB-/mxB' from 'mxBBB-/mxA-3',
respectively.  The outlooks are negative.

The downgrade followed the company's weaker-than-expected first-
quarter 2010 results, which revealed a significant rise in
nonperforming assets (nonperforming loans plus foreclosed assets)
that resulted in a large net loss, in spite of a net interest
margin improvement.  These results have caused further
deterioration in the company's financial profile.

"Although the company recently announced a large capital injection
and the signing of a credit line with Sociedad Hipotecaria Federal
to restore its mortgage and construction loan origination, in
S&P's view, these steps are still not sufficient to enable HSC to
face its most immediate short-term challenges to asset quality and
capital," said Standard & Poor's credit analyst Arturo S nchez.


* Moody's Upgrades Issuer Rating on State of Mexico to 'Ba2'
------------------------------------------------------------
Moody's de Mexico upgraded the issuer rating of the State of
Mexico to A2.mx (Mexico National Scale) from A3.mx.  Moody's
Investors Service upgraded the issuer rating of the State of
Mexico to Ba2 (Global Scale, local currency) from Ba3.  The rating
outlook is stable.

The rating action reflects long-term improvements in the State of
Mexico's financial and debt metrics, in conjunction with the
resilience of the state's fiscal framework during the recent
economic slowdown.

The State of Mexico's financial performance has strengthened in
recent years, reflecting the alignment of revenue and expenditure
growth.  Between 2005 and 2009, the state recorded roughly
balanced consolidated financial results that averaged -0.6% of
total revenues.  These results have led to easing debt metrics and
improving liquidity levels.  Net direct and indirect debt declined
to 24.2% of total revenue in 2009, from 40.8% in 2005, while net
working capital (current assets less current liabilities)
increased to 5.2% in 2009, from -2.7% of total revenues in 2005.

Going forward, Moody's expects that the state's strong governance
and management practices will support the maintenance of balanced
fiscal results over the medium-term.  Likewise, over this period,
Moody's expect debt ratios to remain relatively stable, as modest
debt increases are matched by revenue increases.

The last rating action with respect the issuer rating of the State
of Mexico was taken on April 9, 2008, when Moody's upgraded the
state's issuer rating (Mexico National Scale) to A3.mx from
Baa1.mx and the rating outlook was changed to positive from
stable.


=================
V E N E Z U E L A
=================


PETROLEOS DE VENEZUELA: Signs US$30BB Ventures W/ Chevron & Repsol
------------------------------------------------------------------
Daniel Cancel at Bloomberg News reports that Petroleos de
Venezuela SA signed final contracts worth at least US$30 billion
to develop crude reserves in the Carabobo blocks of the Orinoco
Belt with groups led by Chevron Corp. and Repsol YPF SA.

According to the report, Venezuela Oil Minister Rafael Ramirez
said that PDVSA will hold a 60% stake in the joint ventures and
oversee the production of as many as 880,000 barrels of oil a day
in the two blocks.  The partners also plan to construct upgraders
that convert heavy tar-like crude into lighter oil for export, he
added.

Mr. Ramirez, the report relates, said that the Carabobo projects
are central to Venezuela's plans to boost waning oil output by 2.9
million barrels a day by 2017.  The report notes that the foreign
companies get the opportunity to stake a claim in one of the
world's biggest oil deposits.

Bloomberg News says that Chevron, Mitsubishi Corp., Inpex
Corp. and Suelopetrol CA will take a combined 40% stake in the
Carabobo 3 area.  The report relates that output is scheduled to
start in 2013 and increase to 400,000 barrels a day in 2016.

Meanwhile, Bloomberg News, citing the Official Gazette, discloses
that the companies are required to pay a signing bonus of US$500
million to access the reserves and provide a US$1 billion loan to
PDVSA to begin operations.

                          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.  According to
the TCRLA on January 18, 2010, Fitch Ratings downgraded Jamaica's
long-term local currency rating to 'C' from 'CCC'.  In addition,
Fitch has affirmed Jamaica's long-term and short-term foreign
currency ratings at 'CCC' and 'C' respectively, and affirmed the
Country Ceiling at 'B-'.  Jamaica's sovereign ratings Outlook
remains Negative.


PETROLEOS DE VENEZUELA: Completes Drilling & Evaluation at DR 6
---------------------------------------------------------------
Petroleos de Venezuela Exploration and Production Offshore adds
another successful operational achievement with the completion of
drilling and productivity evaluation of the well DR 6, located at
Camp Dragon Northeast Coast of Paria.  This is the second of the
eight-well gas field contained in the plan of exploitation of this
field, as part of the first phase of the project Mariscal Sucre,
drilled through the semi-submersible Unit Aban Pearl and the
valuable efforts of the  New PDVSA workers.

With the results of drilling the well, the teams of geosciences,
engineering and operations of the Company may update the
geological model previously developed for wells Mariscal Sucre
Project, to optimize various plans to capture information, to
bring new information to the engineering of wells, in order to
improve operational practices in offshore areas, where PDVSA had
no historical precedent.

Once the final completion of  the well DR 6  is made,  it is
estimated an output of 75 million cubic feet of gas per day
(MMPCGD), in which together with the seven planned wells for the
operation of the Dragon Field, will provide the first 600 MMPCGD
with the aim of meeting the target for delivery by November 2012.

Once the evaluations of the well DR 6 are completed,  Aban Pearl
unit will carry out the shelling process and evaluation of DR 5A
Well, after having completed its drilling on April 11, 2010 by
Saudi Petro Discoverer drill ship.

Petroleos de Venezuela promotes thus the Oil Sowing Plan, set in
the Plan for Economic Development and Social Welfare 2007-2013,
and it continues to work for the benefit of gas development and
industrial country, committed in its efforts to bring gas to the
inhabitants of Sucre and Venezuelan people and to sustain the
domestic market and the National Domestic Gas Plan.

                          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.  According to
the TCRLA on January 18, 2010, Fitch Ratings downgraded Jamaica's
long-term local currency rating to 'C' from 'CCC'.  In addition,
Fitch has affirmed Jamaica's long-term and short-term foreign
currency ratings at 'CCC' and 'C' respectively, and affirmed the
Country Ceiling at 'B-'.  Jamaica's sovereign ratings Outlook
remains Negative.


==========================
V I R G I N  I S L A N D S
==========================


BORETS INTERNATIONAL: S&P Affirms 'BB-' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
British Virgin Islands-headquartered electrical submersible pumps
manufacturer Borets International Ltd. to negative from stable.
The 'BB-' long-term corporate credit rating and the 'ruAA-' Russia
national scale rating were affirmed.

The outlook revision follows a report by Borets that the Russian
tax authorities have imposed an additional backdated tax demand on
the company for 2006-2008.  Borets disputes the demands.

"S&P believes Borets' financial flexibility could narrow should
these claims be approved by the relevant authorities," said
Standard & Poor's credit analyst Varvara Nikanorava.  "Given
Borets' free operating cash flow generation for 2009 of about
$50 million, still limited visibility on earnings improvements,
and Borets' asset expansion and modernization program, S&P think
that any additional calls on the company's cash will limit its
financial flexibility." In addition, S&P sees a risk that the
expected recovery in Borets' operational performance might not be
strong enough for it to sustain adequate headroom under covenants
in its main loan agreements.

The potential final amount Borets may have to pay is still unclear
and S&P understands that it could be covered to a large extent by
Borets' access to external funding.  S&P thinks that should no
agreement be reached in the course of the appeal process, the
company would be subject to court proceedings, which would take
time and could change the amount claimed significantly given
Russia's evolving tax legislation and relatively weak
institutions.

As of year-end 2009, the company reported debt of $127 million,
which is a substantial reduction from about $270 million a year
ago.  This reduction is attributable to about $119 million of
shareholder loans, including accrued interest being converted into
equity and about $57 million being paid out in cash.  This debt
reduction led to a considerable improvement in Borets' credit
ratios, offsetting the effect of lower earnings.  Borets' debt-to-
capital ratio in 2009 improved to about 25% and leverage to 1.6x,
from 56% and 2.6x, respectively, in 2008, which S&P considers
commensurate with the current rating.  "S&P sees the possibility
of a downgrade in the near term if the ultimate amount of the
payment of the backdated taxes increases from the levels currently
disclosed and if this amount is not covered by the company's
internal sources and through its access to external funding," said
Ms. Nikanorava- "S&P may also lower the rating if S&P sees
deterioration in the company's access to financing as a result of
the tax claims.  S&P will monitor the development closely, and
expect to review the rating within the next three to six months."


                            ***********

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

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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.


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