TCRLA_Public/100527.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

              Thursday, May 27, 2010, Vol. 11, No. 103

                            Headlines



A R G E N T I N A

* ARGENTINA: U.S. Court Freezes $2.43 Billion in Government Assets


B E R M U D A

GEROVA FINANCIAL: Sets Up New Insurance Headquarters in Bermuda


B R A Z I L

COMPANHIA DE SANEAMENTO: To Obtain US$200MM Financing From BNDES
COSAN SA: Debt Yields Most Since January
MARFRIG ALIMENTOS: European Unit to Acquire Rival for GBP26MM
MARFRIG ALIMENTOS: Drops as Raymond James Says "Avoid" Stock


C A Y M A N  I S L A N D S

BARCA NINE: Creditors' Proofs of Debt Due on June 24
CEDAR LANE: Creditors' Proofs of Debt Due on July 1
CEDAR LANE: Creditors' Proofs of Debt Due on July 1
DOLOMITE LATIN: Creditors' Proofs of Debt Due on June 14
EVERGREEN INTERNATIONAL: Creditors' Proofs of Debt Due on June 24

EXPRESSWAY PARTNERS: Creditors' Proofs of Debt Due on June 24
FIFTY FEATHERS: Creditors' Proofs of Debt Due on June 24
GEMINI BB: Creditors' Proofs of Debt Due on June 24
IRVINGTON SCDO: Creditors' Proofs of Debt Due on June 24
IRVINGTON SCDO: Creditors' Proofs of Debt Due on June 24

JUPITER FUND: Creditors' Proofs of Debt Due on June 25
MIDNIGHT CO: Creditors' Proofs of Debt Due on June 18
NG CAYMAN: Creditors' Proofs of Debt Due on June 24
PMI CDS: Commences Liquidation Proceedings
PMI CDS: Commences Liquidation Proceedings

PMI CDS: Commences Liquidation Proceedings
PMI CDS: Commences Liquidation Proceedings
PMI CDS: Commences Liquidation Proceedings
PMI CDS: Commences Liquidation Proceedings
SAS LTD: Creditors' Proofs of Debt Due on July 14


M E X I C O

GRUPO MEXICO: To Expand Construction Business; Eyes Airport Bid
GRUPO MEXICO: To Sell Shares in Transpo Unit After Merger


P U E R T O  R I C O

POPULAR INC: President & Chief Operating Officer to Step Down


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Citgo Bond Issue Cuts Firm's Leeway
* VENEZUELA: Seizes 8 Brokers in Foreign Currency Investigation
* VENEZUELA: Extends Recession With 5.8% Slide


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                         - - - - -


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


* ARGENTINA: U.S. Court Freezes $2.43 Billion in Government Assets
------------------------------------------------------------------
In response to a request from eight plaintiff class-action groups
holding defaulted Argentine bonds, U.S. District Court Judge
Thomas P. Griesa issued a restraining order that freezes up to
US$2.43 billion in Argentine government assets held by Banco de la
Nacion Argentina.

"For six years, Argentina has refused to pay its obligations to
these bondholders," said attorney Michael Diaz, managing partner,
Diaz Reus, an international law firm based in Miami, and co-lead
counsel in the class action cases.  "As a result, the plaintiffs
have taken action to collect on several judgments entered by the
U.S. court in 2009 that cumulatively total US$2.43 billion plus
interest."

In early 2004, the bondholders took legal action against the
Republic of Argentina seeking payment on eight separate series of
defaulted global bonds and accumulated interest, and won a series
of judgments on their behalf.  "To date, those judgments have not
been paid, and the Republic has not offered any justification for
its failure," said Diaz Reus attorney Guillermo Gleizer, who filed
the motion and has represented bondholders since.

The restraining order from Judge Griesa will allow the plaintiffs
to attach all available U.S. assets held by Argentina in the name
of its alter ego, Banco de la Nacion Argentina.  The order also
halts any "sale, assignment, transfer or interference with any
property" in which the government has an interest.

Recently, the Republic of Argentina launched a voluntary bond
exchange program that discriminates against members of the class-
action plaintiff groups, according to Judge Gleizer.  "Our motion
is not an attempt to halt the bond exchange.  Our goal is to
restrain and freeze the assets of the Republic of Argentina in
order to protect and attempt to make whole all bondholders who are
not voluntarily participating in the exchange.  That includes
those bondholders who already have won judgments against the
Republic of Argentina, and who would suffer a net loss to the
value of their bonds as a direct result of this exchange."

Diaz noted that under the Argentine government's exchange program,
bondholders would lose their right to participate in a US$2
billion attachment against funds held by Argentina in an account
at the Depository Trust & Clearing Corporation in the United
States and frozen by a November 19, 2009 attachment order,
"thereby pulling the rug out from under existing U.S. judgments,"
according to Diaz.

Under the government's program, all current bondholders
participating would exchange about US$300 of their defaulted bonds
for about $100 of new bonds (face value).  However, for the
members of the eight class-action groups represented by Diaz Reus
and the other co-lead counsel, who have already obtained
judgments, by participating in the exchange they would give up not
only the $300 in defaulted bonds, but also potentially up to
another $150 -- their share of the value of the U.S. judgment and
the value of the attached bonds.

                        About Diaz Reus

Miami-based Diaz Reus is a full-service international law firm
focusing on complex commercial, civil, and criminal litigation and
arbitration matters, and trade and business transactions.  The
firm operates offices in Miami, Florida; Shanghai, China;
Frankfurt, Germany; Caracas, Venezuela, and Mexico City, Mexico;
as well as affiliate offices in Colombia and Brazil.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
October 9, 2009, Standard & Poor's Ratings Services said that it
lowered to 'B-' from 'B' its local currency long-term issuer
credit rating on the City of Buenos Aires.  At the same time,
Standard & Poor's affirmed its 'B-' foreign currency long-term
issuer credit rating.  The outlook on the local and foreign
currency long-term issuer credit ratings is stable.


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


GEROVA FINANCIAL: Sets Up New Insurance Headquarters in Bermuda
---------------------------------------------------------------
Gerova Financial Group, Ltd., has established new headquarters for
its insurance operations in Hamilton, Bermuda.

The new offices are the global headquarters for GEROVA Holdings,
Ltd., and for its insurance subsidiaries.  The offices are located
in Cumberland House, in the central business district of Hamilton.

Lou Hensley, CEO of GEROVA, said: "We are excited to establish our
base in Bermuda.  We believe that Bermuda is an attractive
location for conducting our insurance operations due to Bermuda's
strong locally based insurance and reinsurance infrastructure,
deep pool of local insurance talent, excellent availability of
cost effective third-party services providers, political and
economic stability, and easy access from major East coast U.S.
cities."

                      About GEROVA Financial

GEROVA Financial Group, Ltd. is a specialty reinsurance company
established in 2008 to take advantage of opportunities arising
from financial market dislocations.  GEROVA underwrites insurance
risks that it believes will produce favorable long-term returns on
shareholder equity.  GEROVA seeks to further enhance returns on
equity by directly originating high-yield senior secured
commercial loans to middle market companies in select industries.
In connection with its January 2010 transactions, GEROVA
successfully raised approximately $725 million in equity assets
through the issuance of its convertible preferred stock.  GEROVA
intends to utilize this new equity as regulatory capital to
support writing bulk reinsurance, with a focus on life and annuity
reinsurance with long term assets.


                          *     *    *

As reported in the Troubled Company Reporter-Latin America on
March 2, 2010, Gerova Financial Group, Ltd., received notification
that the NYSE Amex LLC intends to delist the Company's units,
warrants and ordinary shares from the Exchange in accordance with
Section 341 of the Exchange's Company Guide.  In accordance with
the Company Guide, GEROVA became subject to the Exchange's
original listing standards upon the closing of its previously
announced acquisition of an insurance company together with
approximately $650.0 million of assets from unaffiliated
investment funds on January 20, 2010.  The Exchange staff
determined that the post-closing entity failed to satisfy the
Exchange's minimum distribution requirements for original listing
set forth in Section 102(a) of the Company Guide.  Such minimum
distribution standards require, among other things, that the
Company have a minimum of 400 shareholders.


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


COMPANHIA DE SANEAMENTO: To Obtain US$200MM Financing From BNDES
----------------------------------------------------------------
Companhia de Saneamento do Parana (Sanepar)'s board authorized the
company to obtain a financing worth BRL374 million (US$200
million) from National Development Bank (BNDES), Rogerio Jelmayer
at Dow Jones Newswires reports, citing a company statement.

According to the report, Sanepar said it will issue debentures to
be acquired by BNDES.  The report relates that the company will
use the proceeds to improve its operations.

Headquartered in Curitiba, Brazil, Companhia de Saneamento do
Parana - Sanepar is majority owned and controlled by the
government of the State of Parana.  Sanepar provides water
treatment and distribution to 8.8 million consumers, and sewage
service to 5.2 million consumers in 344 municipalities in the
state of Parana and one municipality in the state of Santa
Catarina.  In the last 12 months ending March 31, 2009, SANEPAR
reported net earnings of BRL131 million (US$66 million) on
BRL1,301 million (US$656 million) in net revenues.

                           *     *     *

As of May 26, 2010, the company continues to carry Moody's "Ba3"
local currency LT debt rating and long term rating.


COSAN SA: Debt Yields Most Since January
----------------------------------------
Veronica Navarro Espinosa at Bloomberg News reports that Cosan SA
Industria e Comercio is paying the most to borrow relative to the
government in four months as Europe's widening debt crisis prompts
investors to shun higher-yielding assets.  Dollar bonds due in
2017 from Cosan SA yield 259 basis points, or 2.59 percentage
points, more than sovereign notes, the largest gap since
January 27, according to data compiled by Bloomberg and JPMorgan
Chase & Co.

According to the report, JPMorgan's CEMBI index of Brazilian
corporate borrowing costs rose to an almost nine-month high on
May 25 on concern the financial weakness that forced four Spanish
banks to merge soon will spread to Latin America.  The report
relates that bond yields also climbed after North Korea said it
will sever ties with South Korea.

Bloomberg News, citing the CEMBI index, notes that the extra yield
investors demand to own Brazilian companies' dollar bonds instead
of U.S. Treasuries swelled 84 basis points this month to 344, the
widest since September 3.  The report says that the gap is 95
basis points more than the average spread on sovereign bonds, the
biggest since December 16.

Rising borrowing costs are deterring Brazilian companies from
tapping international debt markets, the report discloses.  The
country's corporate dollar bond sales dropped to zero in May from
a $3.8 billion monthly average in the January-to-April period,
according to data compiled by Bloomberg.

                         About Cosan SA

Cosan S.A. Industria e Comercio is a low-cost Brazilian sugar and
ethanol producer with a leading position in the global sugar and
ethanol industry.  Cosan is also the fourth largest fuel
distributor in Brazil.

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 3, 2010, Moody's Investors Service placed the Ba3 corporate
family rating for Cosan S.A. Industria e Comercio and its
guaranteed senior unsecured debt ratings on review for possible
upgrade, following the announcement that the company has entered
into a memorandum of understanding with Shell for the formation of
two joint ventures to combine the majority of Cosan's businesses
with several of Shell's assets in Brazil, including its fuel
distribution business.


MARFRIG ALIMENTOS: European Unit to Acquire Rival for GBP26MM
-------------------------------------------------------------
Laura Price at Bloomberg News reports that Moy Park has agreed to
buy Ballymena-based rival O'Kane Poultry for GBP26 million.  Moy
Park is owned by Marfrig Alimentos SA (f/k/a Marfrig Frigoroficos
e Comercio de Alimentos).

According to the report, The Marfrig Holdings (Europe) BV and Moy
Park units will pay half the amount now and the second half in
June 2011.

The report notes that O'Kane has the capacity to process 120,000
chickens and 5,000 turkeys per day and had sales of GBP132 million
in 2009.

Brazil-based Marfrig Alimentos SA (formerly known as Marfrig
Frigoroficos e Comercio de Alimentos) processes beef, pork, lamb,
and poultry; and produces frozen vegetables, canned meats, fish,
ready meals, and pasta.  The company operates in Southern America,
the United States, and Europe.

                          *     *     *

As of April 14, 2010, the company continues to carry these low
ratings from the major rating agencies:

  -- Moody's "B1" LT Corp Family Rating;
  -- Standard and Poor's "B+" LT Foreign Issuer Credit
     rating; and
  -- Fitch ratings' "B+" LT Issuer Credit ratings


MARFRIG ALIMENTOS: Drops as Raymond James Says "Avoid" Stock
------------------------------------------------------------
Alexander Cuadros at Bloomberg News reports that Marfrig Alimentos
SA (f/k/a Marfrig Frigoroficos e Comercio de Alimentos) fell the
most in 11 months after Raymond James & Associates Inc. told
investors to avoid the stock, citing high debt levels and exposure
to Europe.

According to the report, analysts Daniela Bretthauer and Marina
Braga wrote in a note to clients that net debt at Marfrig is 4.6
times Ebitda, the highest among companies covered by Raymond
James.  The analysts, the report relates, said that Marfrig
Alimentos is exposed to "struggling" European economies because
30% of its first quarter sales came from that continent.  The
company may underperform peers and the benchmark Bovespa because a
weakening real means its dollar-denominated debt, which accounts
for 76% of the total, will cut earnings, they added, the report
notes.

Bloomberg News says that Raymond James is reviewing its
recommendation on the stock.

Marfrig on May 13, 2010, reported net sales of BRL3.22 billion
(US$1.7 billion), less than the BRL3.43 billion average estimate
of six analysts in a Bloomberg survey.

                    About Marfrig Alimentos

Brazil-based Marfrig Alimentos SA (formerly known as Marfrig
Frigoroficos e Comercio de Alimentos) processes beef, pork, lamb,
and poultry; and produces frozen vegetables, canned meats, fish,
ready meals, and pasta.  The company operates in Southern America,
the united states, and Europe.

                          *     *     *

As of April 14, 2010, the company continues to carry these below
investment grade ratings from the major rating agencies:

  -- Moody's "B1" LT Corp Family Rating;

  -- Standard and Poor's "B+" LT Foreign Issuer Credit
     rating; and

  -- Fitch ratings' "B+" LT Issuer Credit ratings


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


BARCA NINE: Creditors' Proofs of Debt Due on June 24
----------------------------------------------------
The creditors of Barca Nine Limited are required to file their
proofs of debt by June 24, 2010, to be included in the company's
dividend distribution.

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

The company's liquidator is:

         Walkers SPV Limited
         c/o Anthony Johnson
         Telephone: (345) 914-6314
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9002, Cayman Islands


CEDAR LANE: Creditors' Proofs of Debt Due on July 1
---------------------------------------------------
The creditors of Cedar Lane Entertainment Fund, Ltd. are required
to file their proofs of debt by July 1, 2010, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on April 30, 2010.

The company's liquidator is:

         Michael Pearson
         c/o Andrew Rutherford
         Deloitte & Touche, P.O. Box 1787
         Grand Cayman KY1-1109, Cayman Islands
         Telephone: (345) 949 7500
         Facsimile: (345) 949 8258
         e-mail: arutherford@deloitte.com


CEDAR LANE: Creditors' Proofs of Debt Due on July 1
---------------------------------------------------
The creditors of Cedar Lane Entertainment, Ltd. are required to
file their proofs of debt by July 1, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on April 30, 2010.

The company's liquidator is:

         Michael Pearson
         c/o Andrew Rutherford
         Deloitte & Touche, P.O. Box 1787
         Grand Cayman KY1-1109, Cayman Islands
         Telephone: (345) 949 7500
         Facsimile: (345) 949 8258
         e-mail: arutherford@deloitte.com


DOLOMITE LATIN: Creditors' Proofs of Debt Due on June 14
--------------------------------------------------------
The creditors of Dolomite Latin America Fund, Ltd. are required to
file their proofs of debt by June 14, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on May 10, 2010.

The company's liquidator is:

         Raj M. Keswani
         122 East 42nd Street, Suite 5005
         New York, NY 10168, U.S.A.


EVERGREEN INTERNATIONAL: Creditors' Proofs of Debt Due on June 24
-----------------------------------------------------------------
The creditors of Evergreen International SMID Cap Absolute Return
Offshore Master Fund Ltd are required to file their proofs of debt
by June 24, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on May 10, 2010.

The company's liquidator is:

         Walkers Corporate Services Limited
         c/o Anthony Johnson
         Telephone: (345) 914-6314
         Walker House, 87 Mary Street, George Town
         Grand Cayman, KY1-9005, Cayman Islands


EXPRESSWAY PARTNERS: Creditors' Proofs of Debt Due on June 24
-------------------------------------------------------------
The creditors of Expressway Partners Master Fund, Ltd. are
required to file their proofs of debt by June 24, 2010, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on April 28, 2010.

The company's liquidator is:

         Walkers Corporate Services Limited
         c/o Anthony Johnson
         Telephone: (345) 914-6314
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9005, Cayman Islands


FIFTY FEATHERS: Creditors' Proofs of Debt Due on June 24
--------------------------------------------------------
The creditors of Fifty Feathers, Ltd. are required to file their
proofs of debt by June 24, 2010, to be included in the company's
dividend distribution.

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

The company's liquidator is:

         Walkers SPV Limited
         c/o Anthony Johnson
         Telephone: (345) 914-6314
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9002, Cayman Islands


GEMINI BB: Creditors' Proofs of Debt Due on June 24
---------------------------------------------------
The creditors of Gemini BB Holdings are required to file their
proofs of debt by June 24, 2010, to be included in the company's
dividend distribution.

The company's liquidator is:

         Bernard McGrath
         69 Dr. Roy's Drive, PO Box 1043
         Grand Cayman KY1-1102, Cayman Islands


IRVINGTON SCDO: Creditors' Proofs of Debt Due on June 24
--------------------------------------------------------
The creditors of Irvington SCDO 2004-2 Ltd. are required to file
their proofs of debt by June 24, 2010, to be included in the
company's dividend distribution.

The company's liquidator is:

         Bernard McGrath
         69 Dr. Roy's Drive, PO Box 1043
         Grand Cayman KY1-1102, Cayman Islands


IRVINGTON SCDO: Creditors' Proofs of Debt Due on June 24
--------------------------------------------------------
The creditors of Irvington SCDO 2004-1 Ltd. are required to file
their proofs of debt by June 24, 2010, to be included in the
company's dividend distribution.

The company's liquidator is:

         Bernard McGrath
         69 Dr. Roy's Drive, PO Box 1043
         Grand Cayman KY1-1102, Cayman Islands


JUPITER FUND: Creditors' Proofs of Debt Due on June 25
------------------------------------------------------
The creditors of Jupiter Fund, Ltd are required to file their
proofs of debt by June 25, 2010, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on May 10, 2010.

The company's liquidator is:

         Ian D. Stokoe
         c/o Aaron Gardner
         Telephone: (345) 914 8655
         Facsimile: (345) 945 4237
         PO Box 258, Grand Cayman KY1-1104
         Cayman Islands


MIDNIGHT CO: Creditors' Proofs of Debt Due on June 18
-----------------------------------------------------
The creditors of Midnight Co. Ltd are required to file their
proofs of debt by June 18, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on April 28, 2010.

The company's liquidator is:

         Alric Lindsay
         Telephone: (345)-526-1688
         Mirco Centre
         Unit 215, PO Box 11371, North Sound Road
         Grand Cayman KY1-1008, Cayman Islands


NG CAYMAN: Creditors' Proofs of Debt Due on June 24
---------------------------------------------------
The creditors of NG Cayman Ltd. are required to file their proofs
of debt by June 24, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on April 21, 2010.

The company's liquidator is:

         Company Secretaries Ltd.
         P.O. Box 30592, Landmark Square, 3rd Floor,
         64 Earth Close, Grand Cayman KY1-1203
         Cayman Islands


PMI CDS: Commences Liquidation Proceedings
------------------------------------------
PMI CDS (Cayman) I Limited commenced liquidation proceedings on
March 5, 2010.

The company's liquidator is:

         Patrick L. Mathis
         3003 Oak Road
         Walnut Creek, California 94597


PMI CDS: Commences Liquidation Proceedings
------------------------------------------
PMI CDS (Cayman) II Limited commenced liquidation proceedings on
March 5, 2010.

The company's liquidator is:

         Patrick L. Mathis
         3003 Oak Road
         Walnut Creek, California 94597


PMI CDS: Commences Liquidation Proceedings
------------------------------------------
PMI CDS (Cayman) IV Limited commenced liquidation proceedings on
March 5, 2010.

The company's liquidator is:

         Patrick L. Mathis
         3003 Oak Road
         Walnut Creek, California 94597


PMI CDS: Commences Liquidation Proceedings
------------------------------------------
PMI CDS (Cayman) VI Limited commenced liquidation proceedings on
March 5, 2010.

The company's liquidator is:

         Patrick L. Mathis
         3003 Oak Road
         Walnut Creek, California 94597


PMI CDS: Commences Liquidation Proceedings
------------------------------------------
PMI CDS (Cayman) VIII Limited commenced liquidation proceedings on
March 31, 2010.

The company's liquidator is:

         Patrick L. Mathis
         3003 Oak Road
         Walnut Creek, California 94597


PMI CDS: Commences Liquidation Proceedings
------------------------------------------
PMI CDS (Cayman) IX Limited commenced liquidation proceedings on
March 5, 2010.

The company's liquidator is:

         Patrick L. Mathis
         3003 Oak Road
         Walnut Creek, California 94597


SAS LTD: Creditors' Proofs of Debt Due on July 14
-------------------------------------------------
The creditors of SAS Ltd. are required to file their proofs of
debt by July 14, 2010, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on May 12, 2010.

The company's liquidator is:

         Alexander Strang
         c/o Desmond Campbell
         Telephone: (345) 949 5586
         c/o Aston Corporate Managers, Ltd.
         P.O. Box 1981, Grand Cayman KY1-1104


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


GRUPO MEXICO: To Expand Construction Business; Eyes Airport Bid
---------------------------------------------------------------
Mica Rosenberg at Reuters reports that Grupo Mexico SA de C.V. is
pushing to expand its construction business by eyeing a bid for a
new international airport near Cancun and a major Pacific port.

According to the report, investment at Cananea copper mine have
been put on hold by a nearly 3-year long strike.  The report
relates that the company is choosing to funnel new investments to
other mining projects while planning to grow its construction arm,
company executives told Reuters recently.  "We are interested in
expanding our infrastructure and construction business in areas of
ports, airports and all the types of infrastructure that is linked
to our principal businesses: the railroad and the mines," Juan
Rebolledo, vice president of international relations, told the
news agency in an interview.

Reuters notes that Grupo Mexico is considering involvement in the
construction and operation of a new international airport south of
the tourist hot spot of Cancun, on Mexico's Caribbean ocean.  The
report relates that the government in mid-November will start to
accept bids for the "Riviera Maya" airport, which will be located
in Tulum, popular for white sand beaches and Mayan ruins.  Airport
operators Grupo Aeroportuario del Sureste, Grupo Aeroportuario del
Centro Norte and Grupo Aeroportuario del Pacifico are also
interested to bid in the project.

"The capital expenditures between Grupo Mexico's divisions are not
comparable.  The mining division alone will spend US$2.8 billion
in the coming years, while the airport project on the Riviera Maya
is estimated at less than US$250 million," the report quoted Pablo
Peregrina, an analyst at BBVA Bancomer, as saying.  The report
relates Mr. Peregrina added that Grupo Mexico was unlikely to win
the Riviera Maya bid as other groups with experience will present
aggressive proposals to build and operate the airport.

However, Reuters says, Jorge Pulido, head of Grupo Mexico's
investor relations, said that the airport is not the company's
only major target as Grupo Mexico is also looking at a large
container port project.  The report relates Mr. Pulido said that
Grupo Mexico is currently building just one public-works project:
two tunnels to help prevent flooding along the Grijalva River in
southeastern Mexico for the Federal Electricity Commision.

                      About Grupo Mexico

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                           *     *     *

As of August 14, 2009, Grupo Mexico continues to carry Fitch
Ratings' BB+ Issuer Default ratings.


GRUPO MEXICO: To Sell Shares in Transpo Unit After Merger
---------------------------------------------------------
Carlos Manuel Rodriguez at Bloomberg News reports that Grupo
Mexico SA de C.V. plans to sell shares of its transportation unit,
Infraestructura y Transportes Mexico (ITM), in an initial public
offering once the company can merge its two railroad companies,
Grupo Mexico owns the Ferrocarril Mexicano SA (Ferromex), and
Ferrosur SA.  A finalized merger "can only mean realizing the
synergies and doing an IPO to reveal the value of the group,"
Chief Financial Officer Daniel Muniz told the news agency in an
interview.

The report recalls that a federal court upheld Grupo Mexico's
December 2005 acquisition of Ferrosur, owned by billionaire Carlos
Slim.  The report relates that the planned acquisition had been
halted by the antitrust commission in 2006 and prompted a
government probe.

According to the report, Mr. Muniz said that the company prefers
to do an IPO of ITM, the holding company of the railroad units,
instead of spinning off either of the two.  The report relates
that Grupo Financiero Inbursa SAB, the bank owned by Mr. Slim, has
a 25% stake in ITM.

                        About Grupo Mexico

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                           *     *     *

As of August 14, 2009, Grupo Mexico continues to carry Fitch
Ratings' BB+ Issuer Default ratings.


====================
P U E R T O  R I C O
====================


POPULAR INC: President & Chief Operating Officer to Step Down
-------------------------------------------------------------
David Mildenberg at Bloomberg News reports that Popular Inc.
President and Chief Operating Officer David H. Chafey
Jr. will step down from his post.  The report relates that bank
Chairman Richard L. Carrion will become president.

"We were very fortunate to have had [Mr. Chafey] as part of the
leadership of our organization during the past three decades,"
Frederic V. Salerno, lead independent director, said in a
statement obtained by the new agency.

According to the report, the bank said that the post of chief
operating officer won't be filled for now.

                        About Popular Inc.

Headquartered in Puerto Rico, Popular Inc. (Nasdaq: BPOP) --
http://www.popular.com/-- is a full service financial
institution with operations in Puerto Rico, the United States,
the Caribbean and Latin America.  With over 300 branches and
offices, the company offers retail and commercial banking
services through its franchise, Banco Popular de Puerto Rico,
well as auto and equipment leasing and financing, mortgage
loans, consumer lending, investment banking, broker/dealer and
insurance services through specialized subsidiaries.  In the
United States, the company has established a community banking
franchise providing a broad range of financial services and
products to the communities it serves.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 12, 2009, Standard & Poor's Ratings Services said that it
lowered its ratings on Popular Inc., including lowering the long-
term counterparty credit rating to 'BB-' from 'BB+' and the rating
on the company's preferred shares to 'C' from 'B-', and affirmed
the short-term counterparty credit rating at 'B'.


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


PETROLEOS DE VENEZUELA: Citgo Bond Issue Cuts Firm's Leeway
-----------------------------------------------------------
Citgo Petroleum Corp.'s upcoming bid of bonds will reduce the
leeway of its parent company Petroleos de Venezuela, which
temporarily will not be able to resort to its unit to finance its
operations amid hard economic times, EL Universal News reports.

As reported in the Troubled Company Reporter-Latin America on
May 21, 2010, El Universal said that Citgo Petroleum intends to
issue bonds worth up to US$1.5 billion.

According to EL Universal, the terms of the debt issuance, due in
2017 and 2020, restrict Citgo's ability to sell or merge assets,
invest and contract new debt, as the bonds will have as collateral
three refineries in the United States, inventories, assets and
accounts receivable.  The report relates Citgo Corp said that
funds obtained from the operation would be used to repay all its
current loans, to finance the purchase of IRBs (industrial revenue
bonds) and for general purposes.

                      About Citgo Petroleum

Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela S.A., the
state-owned oil company of Venezuela.

                           *     *     *

As of May 20, 2010, the company continues to carry Moody's "Ba2"
Long term and LT Corp family ratings.  The company also continues
to carry Standard and Poor's "BB-" LT Issuer Credit ratings.

                             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"
local currency issuer rating.  The company also continues to carry
Standard and Poor's "B+" LT Issuer credit ratings.


* VENEZUELA: Seizes 8 Brokers in Foreign Currency Investigation
---------------------------------------------------------------
Venezuela has taken control of eight brokerages as part of a probe
into irregularities in foreign currency transactions, Jose Orozco
and Corina Rodriguez Pons at Bloomberg News report, citing Tomas
Sanchez, the country's securities regulator.

Mr. Sanchez told the news agency in an interview that the
brokerages taken over by the government were:

   -- Fidevalores Sociedad de Corretaje de Titulos Valores SA;
   -- Bencorp Casa de Bolsa, C.A.;
   -- Econoinvest Casa de Bolsa, C.A.;
   -- Venevalores, Sociedad de Corretaje de Valores, C.A.;
   -- Valores Financieros;
   -- Innova Capital Sociedad de Corretaje de Titulos Valores SA;
   -- BBO Casa de Bolsa, C.A.; and
   -- Strategos Sociedad de Corretaje de Titulos Valores, C.A.,

According to the report, Mr. Sanchez said that some brokerages may
have to be "liquidated."

The report relates that President Hugo Chavez said that brokerages
committed "fraud" in currency transactions and were trying to
weaken the bolivar to 10 per dollar or lower before the government
restricted trading of dollar-denominated assets in the local
market May 18.  The report notes that Banco Central de Venezuela
will oversee transactions in a bid to control inflation and
speculation in the market.  "We decided to take action because we
presume that they were laundering money through bond
transactions," the report quoted Mr. Sanchez as saying.

                          *     *     *

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


* VENEZUELA: Extends Recession With 5.8% Slide
----------------------------------------------
Venezuela's economy contracted at a 5.8% pace in the first quarter
in a fourth consecutive contraction amid a severe recession,
Agence France-Presse reports, citing central bank figures.

According to the report, the central bank cited "the temporary
restraining access of foreign exchange for imports of goods and
services, reduced consumption and investment" as well as a drastic
plan to curb electric power use implemented by the government.
The report relates that the figure on gross domestic product
matched a 5.8% drop in the fourth quarter of 2009 and followed a
4.5% decline in the third quarter and 2.4% drop in the second
quarter of last year.

In 2009, the report notes, GDP fell 3.3%, but the Venezuelan
government expects the economy to grow 0.5% in 2010.

This month, APF notes, authorities have ordered a crackdown on
hard currency sales outside official channels in a bid to curb
inflation but analysts say this may only deepen the country's woes
by making it harder to get dollars for needed imports.

                         *     *     *

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


===============
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
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.
          Contact: http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

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

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

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


                            ***********

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

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

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

                            ***********


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

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


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

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

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

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


           * * * End of Transmission * * *