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

              Thursday, May 20, 2010, Vol. 11, No. 098

                            Headlines



A N T I G U A  &  B A R B U D A

STANFORD INTERNATIONAL: Owner's Lawyers Appeal for his Release


A R G E N T I N A

AMERICARGAS SRL: Creditors' Proofs of Debt Due on July 1
CEREALERA LA: Creditors' Proofs of Debt Due on July 8
GUARDIA REAL: Creditors' Proofs of Debt Due on July 16
RETRIEVERS SA: Creditors' Proofs of Debt Due on July 5
YPF SA: Parent's Stock Offering May Raise US$3 Billion


B E R M U D A

CENTRAL EUROPEAN: TV Nova Ad Sales Up 3% to CZK1.03 Bil. in April
ENVIRONMENTAL ENERGY: Contributories & Creditors to Meet on May 31


B R A Z I L

BRASKEM SA: Names Carlos Fadigas CEO for New North American Unit
TAM SA: Joins Star Alliance's Network
TAM SA: Unit Signs New FFP Agreements With 16 Airlines


C O L O M B I A

ISAGEN SA: Sale Postponement Causes Peso Bonds to Fall
* COLOMBIA: Bonds Sink Due to Delays in US$1.5 Billion Isagen Sale


E C U A D O R

* ECUADOR: Jan-March Crude Output 470,000 B/D, Down 6% On Year


E C U A D O R

PETROECUADOR: April Oil Exports Rise 128% in April to US$637 Mil.


J A M A I C A

CABLE & WIRLESS: Rebukes Digicel Group Over Legal Case
DIGICEL GROUP: LIME Rebukes Firm Over Legal Case


M E X I C O

AXTEL SA: Fitch Cuts IDR & US$490MM Sr. Notes' Rating to BB-
INDUSTRIAS UNIDAS: S&P Withdraws 'D' Long-Term Credit Rating


V E N E Z U E L A

CITGO PETROLEUM: Fitch Downgrades Issuer Default Rating to 'B+'
PETROLEOS DE VENEZUELA: Keeps Plans Despite Gas Platform Collapse
* Fitch: Amendment to Illicit FX Law Could Affect Growth Prospects


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                         - - - - -


===============================
A N T I G U A  &  B A R B U D A
===============================


STANFORD INTERNATIONAL: Owner's Lawyers Appeal for his Release
--------------------------------------------------------------
Lawyers of Robert Allen Stanford, the billionaire accused of
orchestrating a multi-billion Ponzi scheme, have appealed to a
U.S. judge for his release from a Texas prison, describing their
client as "a wreck of a man" whose imprisonment could be deemed
unconstitutional, Andrew Clark at guardian.co.uk reports.

According to the report, citing a motion lodged at a Houston
court, the defense lawyers said that Mr. Stanford's condition had
deteriorated alarmingly since he was beaten up by a fellow inmate
in September -- a fight that landed him in the hospital.  The
report relates that the document said Mr. Stanford had lost all
feeling in the right side of his face and had partially lost
vision in his right eye.  Mr. Stanford, the report notes, has also
been treated for a heart condition, dangerous blood pressure,
ulcers and severe depression.

"Mr. Stanford, a man who is presumed to be innocent, is being, and
has been, subjected to substantial and undeniable punishment long
before the trial of his case has even begun," the report quoted
defence counsel Robert Bennett as saying in the motion.  "He has
been physically assaulted, he has suffered significant medical
injury and psychological debilitation; he was held in solitary
confinement two separate times for a total of 40 days; he has been
subjected to 335 days of pretrial incarceration as of May 18 2010;
and before his scheduled trial concludes, he will predictably
serve another nonspeculative 439 days," Mr. Bennett added, the
report relates.

The report discloses that a doctor treating Mr. Stanford diagnosed
abnormal liver function.  The report relates the doctor said that
Mr. Stanford is malnourished, underweight, depressed, dishevelled,
unable to sleep, unable to concentrate and struggling to
concentrate on constructing a defense.

                  About Stanford International Bank

Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement.  Stanford Private Wealth Management serves more
than 70,000 clients in 140 countries.

On February 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control.  The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.

The U.S. Securities and Exchange Commission, on Feb. 17, 2009,
charged before the U.S. District Court in Dallas, Texas, Mr.
Stanford and three of his companies for orchestrating a
fraudulent, multi-billion dollar investment scheme centering on
an US$8 billion Certificate of Deposit program.

A criminal case was pursued against him in June 2009 before the
U.S. District Court in Houston, Texas.  Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice.  Assistant Attorney General
Lanny Breuer, as cited by Agence France-Presse News, said in a 57-
page indictment that Mr. Stanford could face up to 250 years in
prison if convicted on all charges.  Mr. Stanford surrendered to
U.S. authorities after a warrant was issued for his arrest on the
criminal charges.

The criminal case is U.S. v. Stanford, H-09-342, U.S. District
Court, Southern District of Texas (Houston). The civil case is SEC
v. Stanford International Bank, 3:09-cv-00298-N, U.S. District
Court, Northern District of Texas (Dallas).


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


AMERICARGAS SRL: Creditors' Proofs of Debt Due on July 1
--------------------------------------------------------
The court-appointed trustee for Americargas S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
July 1, 2010.

The trustee will present the validated claims in court as
individual reports on August 30, 2010.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.

Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
October 12, 2010.


CEREALERA LA: Creditors' Proofs of Debt Due on July 8
-----------------------------------------------------
The court-appointed trustee for Cerealera La Juliana S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until July 8, 2010.


GUARDIA REAL: Creditors' Proofs of Debt Due on July 16
------------------------------------------------------
The court-appointed trustee for Guardia Real S.A.'s reorganization
proceedings, will be verifying creditors' proofs of claim until
July 16, 2010.

The trustee will present the validated claims in court as
individual reports on September 13, 2010.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.

Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
October 26, 2010.

Creditors will vote to ratify the completed settlement plan
during the assembly on May 5, 2011.


RETRIEVERS SA: Creditors' Proofs of Debt Due on July 5
-------------------------------------------------------
The court-appointed trustee for Retrievers S.A.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
July 5, 2010.


YPF SA: Parent's Stock Offering May Raise US$3 Billion
------------------------------------------------------
Repsol YPF SA may raise about US$3 billion as early as July from
the sale of a 20% stake in its Argentine unit, YPF SA, through a
stock offering in Buenos Aires and New York, Rodrigo Orihuela and
Carlos Caminada at Bloomberg News report, citing YPF SA Chief
Executive Officer Sebastian Eskenazi.  Repsol YPF plans to sell
15% of YPF in the U.S. and 5% in Argentina should equity markets
rebound, Mr. Eskenazi told the news agency in an interview.
Repsol YPF currently owns 84% of YPF SA.

According to the report, YPF SA's share sale would come after the
biggest surge in stock-market volatility in two decades.  At least
17 initial public offerings were postponed or withdrawn worldwide
in May, while U.S. companies that completed deals were forced to
cut their size by as much as 70%, Bloomberg data show.

The report notes that YPF SA plans to drill offshore in the
Argentine-controlled waters of the Falklands basin this year to
compensate for mature onshore fields.  The report relates that YPF
SA plans to sell between US$400 million and US$500 million of
bonds a year to grow in Argentina and international markets.

Mr. Eskenazi, the report says, said that the company aims to spend
between US$3 billion and US$3.5 billion annually to boost
operations in countries including Brazil, Colombia, Mexico and
Canada.  Overseas sales will account for 50% of total revenue in
10 years, up from 30% now, he added.

A TCR-LA report on July 3, 2009, citing Bloomberg News, related
that Chief Executive Officer Antonio Brufau wants to cut Repsol's
stake in YPF after Argentine restrictions on natural gas exports
and price caps on crude reduced profitability.  The report said
that
the company also needs to raise funds for production, including in
the deepwater fields off Brazil where Brufau said in 2008 Repsol
would spend at least US$1.5 billion developing deposits.  Repsol,
the report noted, delayed a public offering of a stake in YPF in
November after paying US$15.5 billion for more than 80 percent of
YPF in 1999.  In 2008, Repsol sold a 15% stake in YPF SA for
US$2.2 billion to Argentine investor Enrique Eskenazi, the report
noted.

                            About Repsol

Repsol YPF, S.A. is an integrated oil and gas company engaged in
all aspects of the petroleum business, including exploration,
development and production of crude oil and natural gas,
transportation of petroleum products, liquefied petroleum gas
and natural gas, petroleum refining, petrochemical production
and marketing of petroleum products, petroleum derivatives,
petrochemicals and natural gas.  The company operates in four
segments: Exploration and Production, Refining and Marketing,
Chemicals, and Gas and Electricity.

                           About YPF SA

Headquartered in Buenos Aires, Argentina, YPF S.A. is an
integrated oil and gas company engaged in the exploration,
development and production of oil and gas, natural gas and
electricity-generation activities (upstream), the refining,
marketing, transportation and distribution of oil and a range of
petroleum products, petroleum derivatives, petrochemicals and
liquid petroleum gas (downstream).  The company is a subsidiary
of Repsol YPF, S.A., a Spanish company engaged in oil
exploration and refining, which holds 99.04% of its shares.  Its
international operations are conducted through its subsidiaries,
YPF International S.A. and YPF Holdings Inc.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 9, 2009, Moody's Investors Service downgraded YPF S.A.'s
global local currency rating to Ba1 from Baa2, concluding a review
for possible downgrade announced in December 2008.  (YPF's Ba2
foreign currency bond rating, also under review for downgrade, was
withdrawn when the rated bond issue matured in February 2009.)
The rating outlook is stable.


=============
B E R M U D A
=============


CENTRAL EUROPEAN: TV Nova Ad Sales Up 3% to CZK1.03 Bil. in April
-----------------------------------------------------------------
TV Nova's gross advertising revenue increased 3% to CZK1.03
billion (US$49.3 million) in April from March, Leos Rousek at Dow
Jones Newswires reports, citing data from advertising monitoring
agencies Admosphere and ATO-Mediaresearch.  TV Nova is owned by
Central European Media Enterprises Ltd.

According to the report, research agency Kantar Media (f/k/a TNS
Media Intelligence) showed that TV Nova's spending rose 4% on the
month to CZK1.03 billion in April, but was down 25% from CZK1.37
billion a year earlier.  The report relates that Admosphere and
ATO-Mediaresearch calculate TV Nova advertising spending on the
basis of TV Nova's market share, while Kantar Media bases its
calculations on air time spending on television commercials.
Kantar Media measures advertising by minutes rather than by number
of viewers using people meters, the report says.

                   About Central European Media

Headquartered in Bermuda, Central European Media Enterprises Ltd.
-- http://www.cetv-net.com/-- invests in, develops and operates
commercial television channels in Central and Eastern Europe.  At
present, the Company has operations in Bulgaria, Croatia, the
Czech Republic, Romania, the Slovak Republic, Slovenia and
Ukraine.  The Company holds its assets through a series of Dutch
and Netherlands Antilles holding companies.  It has ownership
interests in license companies and operating companies in each
market in which it operates.  Operations are conducted either by
the license companies themselves or by separate operating
companies.  The Company generates revenues primarily through
entering into agreements with advertisers, advertising agencies
and sponsors to place advertising on air of the television
channels that it operates.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on March 4,
2010, Moody's Investors Service affirmed the B2 Corporate
Family Rating and the B2 Probability of Default Rating of Central
European Media Enterprises Ltd and revised the outlook on the
ratings to stable from negative.  At the same time, Moody's
downgraded to B3 from B2 the rating of the company's
EUR150 million senior notes due 2014.


ENVIRONMENTAL ENERGY: Contributories & Creditors to Meet on May 31
------------------------------------------------------------------
The contributories and creditors of Environmental Energy
Corporation Ltd. will hold their first meetings on May 31, 2010,
at 2:00 p.m. and 3:00 p.m. respectively.

Mike Morrison and Charles Thresh are the company's joint
provisional liquidators.


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


BRASKEM SA: Names Carlos Fadigas CEO for New North American Unit
----------------------------------------------------------------
Andrew Maykuth at The Philadelphia Inquirer reports that the
Brazilian owners of Sunoco Chemicals, Inc., named a chief
executive officer for their new North American subsidiary, based
in Philadelphia.

According to the report, Carlos Fadigas took the helm of Braskem
America, a month after Braskem SA completed the purchase of Sunoco
Chemicals.  The report relates that Braskem SA will continue to
operate the company out of Sunoco's headquarters at 1735 Market
St.  Mr. Fadigas was chief financial officer of Braskem SA and
previously served as chief financial officer of Odebrecht
Construction, a Brazilian conglomerate that is Braskem's
controlling shareholder.

The Inquirer says Bruce Rubin, the Sunoco Inc. chemicals vice
president who managed the initial phase of the integration
process, will remain at Braskem America as senior vice president
of external affairs and business development.

Braskem America's manufacturing facilities include plants in
Marcus Hook, Delaware County; La Porte, Texas; and Neal, W.Va.,
and a technology and development center in Pittsburgh.

As reported in the Troubled Company Reporter-Latin America on
April 5, 2010, Braskem S.A. completed its acquisition of the
polypropylene business of Sunoco Chemicals.  With the acquisition,
which was initially announced on February 1, Braskem invested
US$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.

                        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


TAM SA: Joins Star Alliance's Network
-------------------------------------
TAM SA has joined the Star Alliance network, thereby putting the
serving airline alliance firmly back on the South American
continent.

"Our integration into the world's leading global commercial
aviation alliance will allow us to expand our services, offering
our customers a smooth and integrated travel experience.  There
will always be a partner airline that will treat our customers as
their own anywhere across the globe," said Libano Barroso, CEO of
TAM Airlines.  "Our brand is now global, and Star Alliance now has
a strong presence in South America."

TAM SA offers more than 40 destinations in Brazil and 10 airports
across South America.  Over the past years, the airline has
expanded its intercontinental network to cover a variety of
destinations in the USA and Europe, many of these being Star
Alliance hubs.  All in all, the Star Alliance network now counts
27 member carriers, offering more than 21,050 daily flights to
1,167 destinations in 181 countries.

"With TAM Airlines we gain a carrier based in South America, an
important aviation market and home to many growing economies.
Combining TAM Airlines' network with that of our existing member
carriers will allow Star Alliance to offer a very competitive
product to, from and within this region," said Jaan Albrecht, CEO
Star Alliance.

"An intense information and experience exchange process resulted
from the first contact," explained Paulo Castello Branco, Vice
President, Commercial and Planning, TAM Airlines.  "After the
official announcement of our acceptance as a future Star Alliance
member in October of 2008, we started to align our operating
processes, which involved our functional team at all levels, as
well as those of all of our partner carriers.  This was a great
learning experience and a fundamental step towards our global
expansion."

As a result, TAM SA has not only increased the Star Alliance
network offer, but is now providing a wide range of customer
benefits.

                          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 of May 20, 2010, the company continues to carry Standard and
Poor's "B+" LT Issuer credit ratings.  The company also continues
to carry Fitch rating's "BB-" LT Issuer default ratings.


TAM SA: Unit Signs New FFP Agreements With 16 Airlines
------------------------------------------------------
TAM Linhas Aereas will enter into 16 new FFP (Frequent Flyer
Program) agreements, thus broadening the benefits already offered
to its TAM Fidelidade program members.  The partnerships include
the following member carriers of the largest global aviation
alliance: Adria Airways, Air China, Air New Zealand, ANA, Asiana
Airlines, Blue1, Croatia Airlines, EGYPTAIR, LOT Polish Airlines,
Scandinavian Airlines, Shangai Airlines, Singapore Airlines, South
African Airways, Spanair, THAI e Turkish Airlines.  TAM Linhas
Aereas in a TAM S.A. subsidiary.

With the new agreements in force, TAM Fidelidade members will be
able to earn and redeem points in flights operated by any of the
16 new partnering airlines.  The same benefit applies to members
of frequent flyer programs of these airlines, who will be able to
earn and redeem points or miles in TAM flights.

"We were pioneers in adopting a frequent flyer program in Brazil
and are now broadening even further the advantages for TAM
customers and those of Star Alliance member carriers," states
TAM's Vice-President, Commercial and Planning, Mr. Paulo Castello
Branco.  He explains that, as of May 13, TAM Fidelidade will be
integrated with the FFPs of the 26 airlines which are members of
the alliance.

TAM already has FFP agreements with Lufthansa, United, TAP
Portugal, US Airways, Air Canada, Brussels Airlines, Austrian,
bmi, Continental Airlines and SWISS, all of which are Star
Alliance members.  TAM also has an FFP agreement with LAN,
totaling 27 international partnerships.

"Passengers enrolled in TAM's FFP - TAM Fidelidade - can now earn
points in a variety of ways.  If they take a shuttle flight, for
instance, they can earn points that can be used to get tickets to
China", explains Castello Branco.

                          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 of May 20, 2010, the company continues to carry Standard and
Poor's "B+" LT Issuer credit ratings.  The company also continues
to carry Fitch rating's "BB-" LT Issuer default ratings.


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


ISAGEN SA: Sale Postponement Causes Peso Bonds to Fall
------------------------------------------------------
Andrea Jaramillo at Bloomberg News reports that Colombia's peso
bonds fell on May 18, 2010, sending benchmark yields to the
highest level this month, after the government suspended an asset
sale it expected would raise US$1.5 billion to help finance the
biggest budget deficit since 1999.  The report, citing Colombia's
stock exchange, relates that the yield on Colombia's benchmark 11%
bonds due July 2020 rose 11 basis points, or 0.11 percentage
point, to 8.37%, the highest since April 28, at 5:55 p.m., New
York time on May 18, 2010.  The bonds' price fell 0.836 centavo to
117.496 centavos per peso.

According to the report, the postponement of the sale of Isagen SA
is fueling speculation the government will issue more local bonds,
swelling the supply and depressing prices, to cover a consolidated
budget gap forecast to reach an 11-year high of 3.7% of gross
domestic product.  "The local market will probably be pretty tense
this week as investors speculate on what alternatives will be
taken to substitute those funds," the report quoted Camilo Perez,
head analyst at Banco de Bogota SA, as saying.

Bloomberg notes Finance Minister Oscar Ivan Zuluaga said that the
next government needs to decide "whether it continues with the
process, issues more debt, reduces expenditures or finds other
alternatives to finance" the deficit.  The economy may grow faster
than the government's forecast of 2.5% this year, he added.

Mr. Perez, the report relates, estimates the next government will
have to raise 700 billion pesos to cover its financing needs
should it decide not to sell Isagen.  Additional tax proceeds
fueled by an economic recovery and bond payments delayed in a debt
exchange in April will cover the rest of the money projected from
the Isagen sale, Perez added.  Mr. Perez, the report adds, said
that the government may sell bonds abroad to not spark a surge in
supply in the local debt market.

                            About Isagen SA

Isagen SA is a Colombia-based company primarily engaged in the
energy sector. Its activities comprise the electric power
generation and distribution, as well as the operation of coal,
steam and gas distribution networks.  The company has a total
installed capacity of 2,131 megawatts and its facilities include
four hydroelectric plants: Central San Carlos, Central Jaguas,
Central Calderas and Central Miel I, and one combined-cycle
thermal power station: Central Termocentro.  The company is also
involved in such expansion projects as Proyecto Guarino, Proyecto
Manso, Proyecto Hidroelectrico del Rio Amoya and Proyecto
Hidroelectrico Sogamoso.  Additionally, the Company holds a
minority interests in Gensa SA ESP and Electricaribe SA ESP.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 1, 2009, Fitch Ratings downgraded ISAGEN's local currency
Issuer Default Rating to 'BB+' from 'BBB-' and affirmed the
company's foreign currency IDR at 'BB+'.  The Rating Outlook is
Stable.


* COLOMBIA: Bonds Sink Due to Delays in US$1.5 Billion Isagen Sale
------------------------------------------------------------------
Andrea Jaramillo at Bloomberg News reports that Colombia's peso
bonds fell on May 18, 2010, sending benchmark yields to the
highest level this month, after the government suspended an asset
sale it expected would raise US$1.5 billion to help finance the
biggest budget deficit since 1999.  The report, citing Colombia's
stock exchange, relates that the yield on Colombia's benchmark 11%
bonds due July 2020 rose 11 basis points, or 0.11 percentage
point, to 8.37%, the highest since April 28, at 5:55 p.m., New
York time on May 18, 2010.  The bonds' price fell 0.836 centavo to
117.496 centavos per peso.

According to the report, the postponement of the sale of Isagen SA
is fueling speculation the government will issue more local bonds,
swelling the supply and depressing prices, to cover a consolidated
budget gap forecast to reach an 11-year high of 3.7% of gross
domestic product.  "The local market will probably be pretty tense
this week as investors speculate on what alternatives will be
taken to substitute those funds," the report quoted Camilo Perez,
head analyst at Banco de Bogota SA, as saying.

Bloomberg notes Finance Minister Oscar Ivan Zuluaga said that the
next government needs to decide "whether it continues with the
process, issues more debt, reduces expenditures or finds other
alternatives to finance" the deficit.  The economy may grow faster
than the government's forecast of 2.5% this year, he added.

Mr. Perez, the report relates, estimates the next government will
have to raise 700 billion pesos to cover its financing needs
should it decide not to sell Isagen.  Additional tax proceeds
fueled by an economic recovery and bond payments delayed in a debt
exchange in April will cover the rest of the money projected from
the Isagen sale, Perez added.  Mr. Perez, the report adds, said
that the government may sell bonds abroad to not spark a surge in
supply in the local debt market.

                         *     *     *

On June 20, 2008, Moody's raised Colombia's foreign-currency
government bond rating to Ba1 from Ba2 on, citing important and
likely sustainable structural changes to its economy and a
significant improvement in debt ratios.  The ratings outlook is
stable.


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


* ECUADOR: Jan-March Crude Output 470,000 B/D, Down 6% On Year
--------------------------------------------------------------
Ecuador's average oil output fell 6% to 470,000 barrels a day
between January and March from 500,000 barrels a day in the same
period last year, Dow Jones Newswires reports, citing the central
bank.  The report relates that Petroecuador averaged 277,867
barrels a day in the first three months of this year, while
private companies' oil output was 192,133 barrels a day.

According to the report, Petroecuador averaged 281,767 barrels a
day in January and March 2009.  Private oil companies averaged
218,233 barrels a day in the same period.  The country's total oil
production in the first three months of 2010 was 42.32 million
barrels, the report says.

Oil is Ecuador's main export and the government's main revenue
earner.

                          *     *     *

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-'.


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


PETROECUADOR: April Oil Exports Rise 128% in April to US$637 Mil.
-----------------------------------------------------------------
Petroecuador reported oil export revenue increased 128% to US$637
million in April from the US$279 million in April 2009, Mercedes
Alvaro at Dow Jones Newswires reports.  The report relates that by
volume, Petroecuador exported 9.2 million barrels of crude oil in
April, an increase of 33% from the 6.9 million barrels registered
in the same month of 2009.

According to the report, the figures translate into exports of
298,266 barrels a day in April from 223,311 barrels a day
registered in the same month of 2009.  The report relates that
exports of Oriente crude were 7.1 million barrels in April, while
exports of Napo crude were 2.1 million barrels.

Dow Jones Newswires says that Petroecuador reported oil export
revenue of $597 million in March.

                        About Petroecuador

Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government.  It produces crude
petroleum and natural gas.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
December 28, 2009, Dow Jones Newswires said that Ecuadorian
President Rafael Correa authorized naval forces to extend its
control of Petroecuador until March as more time was needed for an
orderly handover of the company to a new management structure.
The report recalled that Petroecuador was declared in a state of
emergency two years ago, and the navy has been put in charge of
its restructuring.

In previous years, Petroecuador, according to published reports,
was faced with cash-problems.  The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors.  The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings.  In 2008, a new management team was
appointed to turn around the company's operations.


=============
J A M A I C A
=============


CABLE & WIRLESS: Rebukes Digicel Group Over Legal Case
-----------------------------------------------------
Cable & Wireless plc has given no indication that it will go easy
on its main competitor Digicel Group in negotiations over legal
costs regarding the recent court room battle, Cayman News Service
reports.

As reported in the Troubled Company Reporter-Latin America on
May 11, 2010, Jamaica Observer said that Lime (formerly Cable &
Wireless Jamaica) said that it expects to be "fully compensated"
and "reimbursed" by Digicel in relation to a ruling by the UK High
Court, Jamaica Observer reports.  The report relates that the firm
made the remarks in response to reports that Digicel would be
seeking to reduce costs awarded against them in a suit it brought
against Cable & Wireless.   According to the report, The High
Court had awarded costs against Digicel in its lawsuit against
Cable & Wireless Communications and scolded the Irish-owned
telecoms provider for its handling of the case.  The report
related that Digicel had brought suit against Cable & Wireless
claiming that C&W had deliberately and intentionally delayed
Digicel's entry into several markets in the Caribbean between 2002
and 2006.

According to Cayman News Service, Cable & Wireless Executive Vice
President Donald Austin said that the company was not surprised
that Digicel wanted to negotiate on the costs as they lost the
case comprehensively.  "We estimate that they have spent about
EUR10 million in legal costs already," the report quoted Mr.
Austin as saying.  But, Cable & Wireless had not ruled out
negotiations, he added, report relates.

"Any negotiated settlement with Digicel will be can only be in the
context of our company being fully compensated and reimbursed for
the enormous expense brought on by a totally unnecessary and time-
wasting suit," the report quoted Mr. Austin as saying.

                           About LIME

Lime (formerly Cable & Wireless Jamaica) --
http://home.cwjamaica.com/-- provides national and
international fixed line services.  The company is owned 82% by
Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica
Digiport International Limited, a company which provides high
speed data and other telecommunications services exclusively to
freezone and offshore companies.

                      About Cable & Wireless

Headquartered in London, England, Cable & Wireless plc --
http://www.cw.com/-- is an international telecommunications
company.  The Company offers mobile, broadband and domestic and
international fixed line services to homes, small and medium-sized
enterprises, corporate customers and governments.  It operates in
39 countries through four major operations in the Caribbean,
Panama, Macau and Monaco & Islands.  It operates through two
businesses: International and Europe, Asia & US.  Its
International business operates full service telecommunications
companies through four major operations in the Caribbean, Panama,
Macau and Monaco and Islands.  Its Europe, Asia & US provides
enterprise and carrier solutions to the largest users of telecom
services across the United Kingdom, continental Europe, Asia and
the United States.  Its subsidiaries include Cable & Wireless UK,
Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable &
Wireless (Barbados) Ltd and Monaco Telecom SAM.

According to Bloomberg data, Cable & Wireless plc continues to
carry Moody's "Ba3"long-term corporate family rating, "B1" senior
unsecured debt rating and "Ba3"probability of default rating with
a stable outlook.  The company continues to Standard & Poor's "BB-
"long-term foreign and local issuer credit ratings and "B" short-
term foreign and local issuer credit ratings.

                       About Digicel Group

Digicel Group -- http://www.digicelgroup.com-- is renowned for
competitive rates, unbeatable coverage, superior customer care, a
wide variety of products and services and state-of-the-art
handsets. By offering innovative wireless services and community
support, Digicel has become a leading brand across its 31 markets
worldwide.

Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide. Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos. The Caribbean company also has coverage
in St. Martin and St. Barths. Digicel Pacific comprises Fiji,
Papua New Guinea, Samoa, Tonga and Vanuatu.

As of January 14, 2010, the company continues to carry these below
investment grade ratings from Moody's:

   -- LT Corp Family Rating at B2
   -- Senior Undecured Debt Rating at Caa1
   -- probability of Default at B2


DIGICEL GROUP: LIME Rebukes Firm Over Legal Case
------------------------------------------------
Cable & Wireless plc has given no indication that it will go easy
on its main competitor Digicel Group in negotiations over legal
costs regarding the recent court room battle, Cayman News Service
reports.

As reported in the Troubled Company Reporter-Latin America on
May 11, 2010, Jamaica Observer said that Lime (formerly Cable &
Wireless Jamaica) said that it expects to be "fully compensated"
and "reimbursed" by Digicel in relation to a ruling by the UK High
Court, Jamaica Observer reports.  The report relates that the firm
made the remarks in response to reports that Digicel would be
seeking to reduce costs awarded against them in a suit it brought
against Cable & Wireless.   According to the report, The High
Court had awarded costs against Digicel in its lawsuit against
Cable & Wireless Communications and scolded the Irish-owned
telecoms provider for its handling of the case.  The report
related that Digicel had brought suit against Cable & Wireless
claiming that C&W had deliberately and intentionally delayed
Digicel's entry into several markets in the Caribbean between 2002
and 2006.

According to Cayman News Service, Cable & Wireless Executive Vice
President Donald Austin said that the company was not surprised
that Digicel wanted to negotiate on the costs as they lost the
case comprehensively.  "We estimate that they have spent about
EUR10 million in legal costs already," the report quoted Mr.
Austin as saying.  But, Cable & Wireless had not ruled out
negotiations, he added, report relates.

"Any negotiated settlement with Digicel will be can only be in the
context of our company being fully compensated and reimbursed for
the enormous expense brought on by a totally unnecessary and time-
wasting suit," the report quoted Mr. Austin as saying.

                           About LIME

Lime (formerly Cable & Wireless Jamaica) --
http://home.cwjamaica.com/-- provides national and
international fixed line services.  The company is owned 82% by
Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica
Digiport International Limited, a company which provides high
speed data and other telecommunications services exclusively to
freezone and offshore companies.

                      About Cable & Wireless

Headquartered in London, England, Cable & Wireless plc --
http://www.cw.com/-- is an international telecommunications
company.  The Company offers mobile, broadband and domestic and
international fixed line services to homes, small and medium-sized
enterprises, corporate customers and governments.  It operates in
39 countries through four major operations in the Caribbean,
Panama, Macau and Monaco & Islands.  It operates through two
businesses: International and Europe, Asia & US.  Its
International business operates full service telecommunications
companies through four major operations in the Caribbean, Panama,
Macau and Monaco and Islands.  Its Europe, Asia & US provides
enterprise and carrier solutions to the largest users of telecom
services across the United Kingdom, continental Europe, Asia and
the United States.  Its subsidiaries include Cable & Wireless UK,
Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable &
Wireless (Barbados) Ltd and Monaco Telecom SAM.

According to Bloomberg data, Cable & Wireless plc continues to
carry Moody's "Ba3"long-term corporate family rating, "B1" senior
unsecured debt rating and "Ba3"probability of default rating with
a stable outlook.  The company continues to Standard & Poor's "BB-
"long-term foreign and local issuer credit ratings and "B" short-
term foreign and local issuer credit ratings.

                       About Digicel Group

Digicel Group -- http://www.digicelgroup.com-- is renowned for
competitive rates, unbeatable coverage, superior customer care, a
wide variety of products and services and state-of-the-art
handsets. By offering innovative wireless services and community
support, Digicel has become a leading brand across its 31 markets
worldwide.

Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide. Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos. The Caribbean company also has coverage
in St. Martin and St. Barths. Digicel Pacific comprises Fiji,
Papua New Guinea, Samoa, Tonga and Vanuatu.

As of January 14, 2010, the company continues to carry these below
investment grade ratings from Moody's:

   -- LT Corp Family Rating at B2
   -- Senior Undecured Debt Rating at Caa1
   -- probability of Default at B2


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


AXTEL SA: Fitch Cuts IDR & US$490MM Sr. Notes' Rating to BB-
------------------------------------------------------------
Fitch Ratings has downgraded the following ratings for Axtel,
S.A.B. de C.V. (Axtel):

--Local currency Issuer Default Ratings (IDR) to 'BB-' from 'BB';
--Foreign currency IDR to 'BB-' from 'BB';
--US$490 million Senior Notes due 2019 to 'BB-' from 'BB';
--National scale rating to 'A-(mex)' from 'A+(mex)'.

Fitch has also revised the Rating Outlook to Negative from Stable.

The rating actions reflects Axtel's continued negative operating
trends which in turn will pressure the company's leverage,
measured by total debt to EBITDA, beyond Fitch's prior expectation
of no more than 2.6 times (x) by year-end.  The revision of the
Rating Outlook to Negative reflects the challenges Axtel faces to
revert and stabilize operating results in the near term.  A
further rating downgrade can occur if Axtel continues to post
higher leverage due to continued weak results or increased
indebtedness.

Axtel ratings are supported by its business position as the
largest competitive local exchange carrier (CLEC) in Mexico,
moderate financial profile and adequate liquidity.  The
expectation of positive free cash flow in the next few years, is
likely to moderate as competitive pressures withstand, resulting
in neutral to negative free cash flow generation until the company
is able to stabilize its operating trends and capital
expenditures.  The ratings are tempered by increased competition,
particularly in the residential market, mobile substitution and
modest regulatory risk.

Axtel's first quarter operating performance deteriorated ahead of
expectations in detriment to credit quality.

Fitch views new management guidance of MXN3,700 million in EBITDA
for 2010 to be challenging to achieve in the year, given the past
few quarters trends in revenues and EBITDA as well as current
management strategy to reduce costs.  During the first quarter of
2010 revenues and EBITDA declined compared to the same quarter of
2009, 12% and 29% respectively.  The declines were due to lower
revenues from international long distance traffic and integrated
service contracts that expired and were not renewed.  Free cash
flow (FCF) is now expected to be negative for 2010 and the
previous expectation to turn positive in the future should depend
on the company's ability to stabilize its operating performance
and resume growth over the coming years.

Liquidity remains acceptable with a manageable debt maturity
profile and healthy cash balances.

As of March 31, 2010, the company registered cash of MXN1,433
million compared to short-term maturities of MXN678 million and
last 12 months funds from operations (FFO) of approximately
MXN2,595 million.  Total debt is composed of US$275 million in
senior notes due 2017, US$490 million in senior notes due 2019 and
US$94 million in other loans, capital leases and a possible
liability related to a trial with Global Towers.  Axtel has
swapped to MXN the debt service of its 2017 and existing 2019
senior notes to a fixed rate in MXN; however, the principal amount
remains exposed to the USD, adding currency risk.

The ratings factor in that pay television or 3G projects should
not alter credit quality.

Fitch considers that a pay-tv offering will enhance Axtel's
competitive position in the residential market.  The company has
mentioned that it is on the final stages in deciding whether to
reach an agreement for leasing/subcontracting pay-tv
infrastructure or deploying its own.  Fitch believes it is
economically more reasonable for Axtel to offer mobile services
through Wimax than deploying a 3G network.  The company has
indicated that if it elects to participate in the 3G spectrum
auctions, the necessary funds for this project should be financed
with new equity without increasing leverage.  Axtel's current
fixed wireless Wimax service has the potential to develop mobility
over the next few years and may eventually lead it to offer mobile
services initially oriented towards data.


INDUSTRIAS UNIDAS: S&P Withdraws 'D' Long-Term Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings has withdrawn its 'SD' (selective
default) global corporate credit rating on Industrias Unidas S.A.
de C.V. (IUSA) and its 'D' long-term credit rating on the issuer's
US$200 million 11.5% senior unsecured notes.  The withdrawal
reflects the lack of adequate information to maintain S&P's
surveillance.


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


CITGO PETROLEUM: Fitch Downgrades Issuer Default Rating to 'B+'
---------------------------------------------------------------
Fitch Ratings has downgraded the Issuer Default Rating (IDR) of
CITGO Petroleum Corporation (CITGO) to 'B+' from 'BB-' and its
senior secured rating to 'BB+' from 'BBB-'.  CITGO's current
ratings are as follows:

--Issuer Default Rating (IDR) 'B+';
--Senior Secured Credit Facility 'BB+';
--Secured Term Loan 'BB+'; and
--Fixed-Rate Industrial Revenue Bonds (IRBs) 'BB+'.

In addition, Fitch assigns 'BB+' ratings to up to US$1.5 billion
of senior secured notes, US$700 million in secured revolver (2013)
and US$300 million in secured term loan (2015).

The Rating Outlook was revised to Stable from Negative.

CITGO's ratings remain constrained by their ultimate linkage to
parent Petroleos de Venezuela SA (PDVSA; IDR 'B+' with a Stable
Outlook), as well as depressed conditions in the refining sector
which are expected to persist in the near-to-medium term due to a
significant oversupply of global refining capacity.  Given this
weakness in refining, CITGO's recent financial performance has
significantly underperformed Fitch's base case expectations.  For
the LTM ending Dec. 31, 2009, CITGO lost US$201.4 million in net
income versus a positive US$801.4 million in 2008 and US$1.586
billion the year prior.  EBITDA as calculated by Fitch was just
US$80 million in 2009 versus US$1.286 billion the year prior.  Net
income in the first quarter of 2010 was negative US$127.6 million.
CITGO was approximately free cash flow neutral in 2009; however,
netting out the amortization of PDVSA's obligations through
working capital accounts, CITGO would have had pro forma FCF of -
US$389 million.  CITGO's total debt at year-end 2009 stood at
US$2.2 billion, down slightly from the US$2.23 billion seen the
year prior.

Several credit-supportive developments undertaken at the company
recently have led to the revision of the Outlook to Stable from
Negative.  These improvements include: enhanced liquidity, reduced
covenant violation risk, and tangible progress in bringing the
Corpus Christi, TX and Lemont, IL refineries toward the
manufacture of ultra low sulfur diesel (ULSD).  Fitch also
anticipates the company will refinance its revolver (due November
2010) and a meaningful portion of its other existing debt
outstanding in the near term.  The three-notch difference between
the IDR and secured facilities stems from the strength of the
underlying security package, which was recently changed to include
the Lemont refinery, in addition to CITGO's Lake Charles and
Corpus Christi refineries, petroleum inventories, and select
accounts receivables.  Given the quality of CITGO's deep
conversion refineries, Fitch believes recovery will be robust
under a wide range of assumed US$/barrel refining multiples.

On the liquidity front, CITGO has benefited from the partial
repayment of the US$1 billion intercompany loan made by CITGO to
PDVSA in 2007.  As of the end of the first quarter 2010, US$616
million of that note had been repaid by PDVSA in the form of
offsetting crude oil cargoes to CITGO, with the remainder expected
to be paid before the end of the second quarter.  This repayment
should provide bridge liquidity in the current refining downturn
and will also help fund CITGO's ULSD capacity expansions.  As of
the end of 2009, more than one third of ULSD project spending was
complete, and both desulfurization units are expected to be
producing ULSD by the end of 2010.  The conclusion of ULSD
spending in 2010 should help ease financial pressures on CITGO, as
it marks the last major capex initiative due across CITGO's
refineries in the near term (related hydrogen plants at Lemont and
Corpus Christi refineries are being built and financed by third
parties under long-term capital leases).

CITGO has received covenant relief from its secured lending group
in the form of amendment waivers.  These include an increase in
the debt-to-capitalization ratio to 60% from its previous 55%; a
temporary waiver of interest coverage covenants, and the
introduction of a minimum liquidity test.  Note that for purposes
of making distributions to its parent, CITGO will continue to be
subject to the more restrictive 55% debt-to-cap test.  The debt-
to-capitalization requirement continues to be CITGO's most
restrictive covenant, and came in just below covenant limits for
the period ending Dec. 31, 2009, (54.9% actual vs. 55% limit).

CITGO's total liquidity was reasonable at March 31, 2010, and
included US$613 million in revolver availability and US$3 million
in cash.  There were no revolver borrowings; however, the company
had US$537 million of LCs outstanding.  Fitch expects CITGO will
replace its current secured revolver due in November 2010, and
refinance portions of its debt outstanding, which includes secured
'A' and 'B' term loans (both due November 2012 term loan 'A'-
US$515 million; term loan 'B'- US$610.3 million) and variable-rate
industrial tevenue bonds (IRBs).  Note that the company's
variable-rate IRBs require Letters of Credit (LC) support, so
conversion into fixed-rate pari passu instruments (which do not
require LC support) would increase revolver availability.  Absent
a refinancing, the maturity schedule for CITGO remains heavy, with
US$206 million due 2011 and US$903 million due 2012.  Fitch's
current rating and Outlook assume the company is able to refinance
its revolver and a meaningful portion of outstanding debt.  Any
inability to refinance could be a potential catalyst for a future
negative rating action.

Looking forward, Fitch anticipates that CITGO will be free cash
flow (FCF) positive in 2010, and modestly FCF negative in 2011,
due to gradually improving refining margins and in the case of
2010, the impact of the repayment of the remainder of the PDVSA
loan through crude cargoes.  Fitch does not expect the negative
FCF in 2011 to result in additional borrowings.

Credit concerns stem from weak year-to-date financial performance,
and ongoing global oversupply in refining capacity, which may keep
CITGO's credit metrics and cash generation weak for an extended
period.  U.S. unemployment - a key variable driving North American
gasoline demand - remains elevated well above levels seen during
the last downturn at 9.9%.  The combination of high unemployment,
the prospect of a jobless recovery in the U.S., and new refining
capacity coming online threaten to keep industry fundamentals weak
for an extended period.  The ratings link to parent PDV America (a
wholly owned subsidiary of PDVSA) also constrains CITGO's current
rating, although Fitch notes that in the current environment the
parent is providing meaningful support to its subsidiary.  This
strong linkage between the two manifests itself through the
dividend policy to PDV America; CITGO's contract to take 250,000
bpd of Venezuelan crude at its refineries; and frequent management
and board appointments at CITGO.  CITGO's current rating also
reflects the fact that it has lost significant cash flow
diversification through its many asset sales (terminals,
pipelines, equity stake in Lyondell refinery, two asphalt
refineries).

Other obligations are manageable.  CITGO's pension was underfunded
by US$197.8 million at year-end 2009, versus US$332.9 million the
year prior.  The improvement in funding status stemmed primarily
from improved actual return on plan assets, and higher employer
contributions.  CITGO's asset retirement obligation (ARO) was
US$23.6 million at year-end 2009, approximately unchanged from
levels seen the year prior.  Rental expense for operating leases
was US$177 million in 2009 versus US$266 million in 2008, and
included product storage facilities, office space, computer
equipment, and vessels.


PETROLEOS DE VENEZUELA: Keeps Plans Despite Gas Platform Collapse
-----------------------------------------------------------------
Venezuela will continue with its plans regarding offshore gas
production, which is scheduled to start in late 2012, despite the
collapse of the Aban Pearl rig.  "We reiterate that offshore gas
production will start on November 25, 2012, as planned.  We are
going to bring those gas molecules to Venezuela for household and
industry consumption, and for petrochemical use," the report
quoted Eulogio Del Pino, PDVSA Vice President for Exploration and
Production, as saying.

According to the report, in an interview with TV station
Venezolana de Television, Mr. Del Pino added that the Venezuelan
oil industry has a six-month period to complete drilling
operations.

As reported in the Troubled Company Reporter-Latin America on
May 17, 2010, Bloomberg News said that Petroleos de Venezuela SA
and Aban Offshore Ltd. will try to "rescue" the Aban Pearl gas
platform and 400,000 liters (105,540 gallons) of gasoil in the rig
that sank off the country's coast.  The report related Aban
Pearlsank after its floatation system failed, causing the rig to
tip over in waters between Venezuela and Trinidad and Tobago.
PDVSA President Rafael Ramirez, the report noted, said that
there's no environmental danger to the area off the South American
country's northern coast after PDVSA sealed a gas well and
evacuated the 95 workers.

                             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 TCR-LA 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.


* Fitch: Amendment to Illicit FX Law Could Affect Growth Prospects
------------------------------------------------------------------
Fitch Ratings said that the recently passed amendment to the Law
Against Illicit FX Transactions could further increase
macroeconomic distortions present in the Venezuelan economy,
adversely affect growth prospects, increase inflationary
pressures, and possibly undermine the external position of the
sovereign as a net external creditor, which in turn could weigh on
the Bolivarian Republic's credit quality.
In an effort to control the volume of operations in the parallel
market, the amendment places all operations in foreign currency
and FX-denominated assets in Venezuela under the direct control of
the Central Bank of Venezuela (BCV). Moreover, the BCV will have
the power to determine which financial entities can participate in
the FX market. The government's main objective is to stem the
depreciation of the VEF in the parallel market.

Nevertheless, in Fitch's view, the recently announced measures
fail to address the structural factors behind the depreciating
trend of the VEF in the parallel market. In general, the weaker
parallel market exchange rate reflects an inconsistent
macroeconomic framework, increased uncertainty about the direction
of economic policy, high inflation expectations, and inorganic
money creation through the yearly transfers of international
reserves to the National Development Fund (FONDEN). More recently,
the increased mismatch between the demand and supply of foreign
exchange in the parallel market has added to the weakness of the
unofficial exchange rate. As a result, the recently approved
amendments, could further constrain the supply of USD to the
private sector, which would do little to tame depreciating
pressures on the currency.

"In the absence of policy adjustments such as tighter fiscal and
monetary policies that can increase the credibility, consistency
and predictability of the macroeconomic framework, the parallel
market rate will continue to face depreciating pressures, thus
negatively impacting macroeconomic stability through higher
inflation and real exchange rate volatility," said Erich Arispe,
Director in Fitch's Sovereign Group. In addition, due to the high
degree of indexation currently present in the economy, a
depreciated unofficial exchange rate could also adversely affect
consumption and investment as imports become more expensive, thus
further aggravating inflationary pressures and recessionary forces
in Venezuela. Low private investment and supply bottlenecks in the
electricity sector have detracted from economic growth, while
inflation has topped 30% on an annual basis.

Since Fitch believes that the debt strategy of the public sector
has been influenced by the dynamics of the VEF in the parallel
market in recent years, the sovereign, as well as public entities
such as PDVSA, could resume issuance of USD-denominated securities
in the local market to relieve pressures on the unofficial
exchange rate. "In the absence of a recovery in international
reserve levels, increased issuance of USD instruments could turn
the sovereign into a net external debtor in spite of its status as
an oil exporter, which would erode a key strength of Venezuela's
credit profile," added Erich Arispe.

While a high degree of macroeconomic and financial volatility has
been incorporated in Venezuela's 'B+' foreign and local currency
Issuer Default Ratings, increased government intervention in the
FX market could potentially worsen the fragile macroeconomic
situation of the country. Fitch will continue to monitor the
effects of the new legislation on the Venezuelan FX market and
economy, since a disorderly adjustment from existing macroeconomic
distortion could compromise the payment capacity of the sovereign.
Moreover, greater than anticipated deterioration in Venezuela's
external solvency and liquidity indicators could also put pressure
on the sovereign creditworthiness.


===============
X X X X X X X X
===============


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
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July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
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July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.
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AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
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Oct. 6-8, 2010
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    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
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AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
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Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

October 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
    Hilton San Diego Bayfront, San Diego, CA
       Contact: http://www.turnaround.org/

Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/


                            ***********

Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.

Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA, Marites O. Claro, Joy A. Agravente, Rousel Elaine C.
Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A.
Chapman, Editors.


Copyright 2010.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


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