/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100616.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 Wednesday, June 16, 2010, Vol. 11, No. 117 Headlines B E R M U D A SENATOR LIMITED: Creditors' Proofs of Debt Due on June 25 SENATOR LIMITED: Members' Final Meeting Set for July 21 VALIDUS HOLDINGS: Posts Results of Dutch Auction Tender Offer B R A Z I L BANCO PINE: S&P Affirms Counterparty Credit Rating at 'BB-/B' CAMARGO CORREA: Unit to Buy Cement Co in Mozambique COMPANHIA SIDERURGICA: Court Upholds Cartel Ruling Against Firm LUPATECH SA: Signs US$68 Million Contract With Petrobras MARFRIG ALIMENTOS: Buys Keystone Foods for US$1.26 Billion USINAS SIDERURGICAS: Court Upholds Cartel Ruling Against Firm C A Y M A N I S L A N D S BABSON GLOBAL: Members' Final Meeting Set for June 29 BATTERSEA LIMITED: Members' Final Meeting Set for July 14 BLACK RIVER: Members' Final Meeting Set for July 14 BLACK RIVER: Members' Final Meeting Set for July 14 CULZEAN LIMITED: Members' Final Meeting Set for July 12 CYAN OPPORTUNITIES: Members' Final Meeting Set for June 29 CYAN OPPORTUNITIES: Members' Final Meeting Set for June 29 DRIEHAUS INTERNATIONAL: Members' Final Meeting Set for June 29 MCKINLEY NON-U.S.: Shareholders' Final Meeting Set for July 9 MULTIPLUS CORPORATION: Members' Final Meeting Set for June 29 S-LINK LIMITED: Shareholders Receive Wind-Up Report TVA OPPORTUNITY: Shareholders' Final Meeting Set for July 9 J A M A I C A AIR JAMAICA: Shelves Plans for New Grand Cayman, Barbados Flights AIR JAMAICA: New Trinidad Government Not a Threat to Airline JPSCO: Energy Minister Defends Himself in Wake of Firm Increase M E X I C O CEMEX SAB: Debt Terms Create 'Nightmares' of Missing Mergers COMERCIAL MEXICANA: Shareholders Approve Restructuring CONSORCIO HOGAR: Moody's Downgrades National Rating to 'Ba3' - - - - - ============= B E R M U D A ============= SENATOR LIMITED: Creditors' Proofs of Debt Due on June 25 --------------------------------------------------------- The creditors of Senator Limited are required to file their proofs of debt by June 25, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 8, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda SENATOR LIMITED: Members' Final Meeting Set for July 21 ------------------------------------------------------- The members of Senator Limited will hold their final meeting, on July 21, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on June 8, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda VALIDUS HOLDINGS: Posts Results of Dutch Auction Tender Offer ------------------------------------------------------------- Validus Holdings, Ltd. disclosed the final results of its "modified Dutch auction" tender offer, which expired at 5:00 p.m., New York City time, on June 8, 2010. Validus has accepted for purchase 12,000,000 of its common shares at a price of US$25.00 per common share for a total cost of US$300 million, excluding fees and expenses relating to the tender offer. The common shares purchased pursuant to the tender offer represent approximately 9.5% of the common shares outstanding as of June 7, 2010. Validus has been informed by BNY Mellon Shareowner Services, the depositary for the tender offer, that the final proration factor for the tender offer is approximately 86.3%. Validus funded the purchase of the shares in the tender offer using cash on hand. Based on the final count by the depositary (and excluding any conditional tenders that were not accepted due to the specified condition not being satisfied), 13,896,804 common shares were properly tendered and not withdrawn at or below a price of US$25.00per share. The depositary will promptly pay for the common shares accepted for purchase, and will promptly return the 1,896,804commonshares tendered and not purchased, pursuant to the terms of the tender offer. Upon completion of the tender offer, Validus has approximately 114.7 million common shares outstanding. As noted in the Company's Offer to Purchase, the Company may in the future consider various forms of share repurchases, including open market purchases, tender offers and/or accelerated share repurchases or otherwise. Under applicable securities laws, the Company may not repurchase any of its common shares until after June 22, 2010. Following completion of the tender offer, Validus has approximately US$364 million remaining under its current share repurchase program. The timing, form and amount of any future share repurchases under the program will depend on a variety of factors, including the Company's results of operations, financial position and capital requirements, general business conditions, legal, tax, regulatory, rating agency and contractual constraints or restrictions and other factors its board of directors deems relevant. The share repurchase program may be modified, extended or terminated by the Company's board of directors at any time. Dowling & Partners Securities, LLC served as the dealer manager for the tender offer. Georgeson Inc. served as the information agent. Shareholders and investors who have questions or need information about the tender offer may call Georgeson Inc. at (866) 482-4966 (toll free) and (212) 440-9800 (for banks and brokers). About Validus Holdings Validus Holdings Ltd. -- http://www.validusre.bm/-- is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd., and Talbot Holdings Ltd. Validus Re is a Bermuda based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd's insurance market through Syndicate 1183. * * * As reported in the Troubled Company Reporter-Latin America on September 11, 2009, A.M. Best Co. affirmed the ICR of "bbb-" and the indicative ratings for securities available under the shelf registration of "bbb-" on senior debt, "bb+" on subordinated debt and "bb" on the preferred stock of Validus Holdings, Ltd. (Validus Holdings). =========== B R A Z I L =========== BANCO PINE: S&P Affirms Counterparty Credit Rating at 'BB-/B' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB- /B' counterparty credit rating and its 'brA-' Brazil national scale counterparty credit rating on Banco Pine S.A. The outlook is stable. The rating on Banco Pine reflects the more competitive environment that Pine is likely to face, its dependence on institutional investors for funding, its less-diversified business profile with concentration in small and midsize enterprises, and the challenge to maintain adequate profitability in its upper-middle-market portfolio. Pine's consistent track record in its niche of midsize companies, good credit risk management (as seen in its stronger-than-average asset quality), conservative liquidity management, and good capitalization partially offset the risks. Pine's adequate liquidity management has offset dependence on institutional investors, whose funding is potentially volatile. The ratio of adjusted liquid assets to deposits has been strong (34%). Pine's decision to discontinue payroll loans is positive in light of its funding tenor profile. S&P believes its concentration in short-term operations will increase Pine's financial flexibility and help the bank overcome periods of stress. As of March 2010, 66% of its loan portfolio matured in less than one year. S&P considers asset quality to be one of Pine's strengths. The bank has maintained above-average asset-quality indicators by focusing on the upper middle market. In S&P's opinion, the good performance of the bank's loan portfolio is due to its expertise in dealing with midsize companies and using collateral to manage the intrinsic risk in this segment. The stable outlook on Pine incorporates S&P's expectation that the bank will implement its growth strategy successfully and sustain its good asset-quality indicators. S&P also expects the bank to maintain its good liquidity management. S&P may raise the ratings or revise the outlook to positive if Pine can translate growth opportunities into increased scale of operations, compete more effectively with peers on profitability, and maintain its current asset quality. S&P may revise the outlook to negative or lower the ratings if there is a significant deterioration in asset quality that affects profitability, or if liquidity deteriorates due to funding difficulties. CAMARGO CORREA: Unit to Buy Cement Co in Mozambique --------------------------------------------------- Camargo Correa Cimentos SA, an arm of Brazil's industrial conglomerate Camargo Correa SA, said that it signed a contract to buy a 51% stake in Mozambique cement company Cimentos de Nacala, or Cinac, Rogerio Jelmayer at Dow Jones Newswires reports. According to the report, Camargo Correa Cimentos said that it acquired the stake from Mozambique conglomerate Insitec Holding, which will hold 49% of Cinac, after the conclusion of the deal. The report relates that the value of the transaction was not unveiled. Cinac has the capacity to produce 350,000 metric tons of cement per year. About Camargo Correa Camargo Correa SA is one of the largest private industrial conglomerates in Brazil. The company is a holding company with interests in cement, engineering and construction, textiles, footwear and sportswear manufacturing. It also owns non- controlling equity interests in the energy, transportation (highway concessions) and steel businesses. During the last 12 months through June 2007, Camargo Correa had net sales of BRL9.2 billion and EBITDA of BRL1.4 billion. * * * As reported in the Troubled Company Reporter-Latin America on November 26, 2009, Fitch Ratings rates Camargo and its special- purpose vehicle CCSA Finance Limited: -- Foreign currency Issuer Default Rating 'BB'; -- Local currency IDR 'BB'; COMPANHIA SIDERURGICA: Court Upholds Cartel Ruling Against Firm --------------------------------------------------------------- Alastair Stewart at Dow Jones Newswires reports that a Brazilian federal court upheld a decision to fine local steelmakers Companhia Siderurgica Nacional SA and Usinas Siderurgicas de Minas Gerais SA for forming a cartel. According to the report, the court rejected an appeal against the 1999 decision by the Justice Ministry's Cade antitrust regulator to fine the three firms some 1% of 1996 revenue, or a total of BRL50 million (US$28.2 million). The report relates that the decision has historic undertones as it was one of the first times that Cade had condemned companies for forming a cartel. Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal, and the U.S. * * * As of January 12, 2010, the company continues to carry Moody's Currency LT Debt ratings at Ba1. The company also continues to carry Standard and Poor's Issuer credit ratings at BB+. About Usiminas Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas do Minas Gerais S.A. aka Usiminas -- http://www.usiminas.com.br-- is principally engaged in the steel industry. The company has a production capacity of 4.7 million tons of crude steel per annum. The company produces non-coated steel (including slabs, heavy plates, hot- and cold-rolled sheets and coils) and galvanized sheets and coils. The company provides its products to the automotive, piping, building and electrical/electronic and agricultural and road machinery industries. In addition to its core business operations, it is also involved in the commercialization, import and export of raw materials, steel products and by-products; the provision of project development and research services; the provision of personnel training services, and the provision of mining, transportation, construction and technical assistance services. The company's products are sold in Brazil, as well as exported to other Latin American countries, the United States, China and South Korea, among others. * * * As of May 7, 2010, the company continues to carry Moody's Ba1 Subordinate Debt rating. LUPATECH SA: Signs US$68 Million Contract With Petrobras -------------------------------------------------------- Lupatech SA signed a contract to provide services to state-run energy company Petroleo Brasileiro SA (Petrobras), Rogerio Jelmayer at Dow Jones Newswires reports, citing a company statement. The report relates the company said that the contract, worth BRL123 million Brazilian (US$68 million) will be in place for the next five years. "The contract comprises services of preservation and general repair of equipment, tools and materials for well completion operations, wire line, measurement, drilling and special services," the report quoted the company as saying. According to the report, with the current contract and other contracts worth BRL1.45 billion announced earlier this month, the company's current backlog amounts to BRL2.4 billion, with approximately BRL426 million to be converted into revenue in the next 12 months and the remaining BRL2.0 billion beyond the 12 months. About Lupatech SA Headquartered in Brazil, Lupatech SA -- http://www.lupatech.com.br -- is a holding company engaged in three business segments: Energy Products, Flow Control and Metallurgy. In the Energy Products segment, the company provides such products as deepwater platform anchoring ropes, valves, tools for oil exploration and tube coating. In the Flow Control segment, it is involved in the production and sale of industrial valves for the petrochemical, pharmaceutical and construction industries, among others. In the Metallurgy segment, the Company is principally engaged in the production of parts for the automotive industry. Lupatech SA's brand portfolio includes MNA, CSL Off Shore, Petroima, Esferomatic, Gasoil, K&S, Fiberware, Aspro, Gavea, Sinergas and Tecval, among others. During the year ended December 31, 2008, the Company incorporated Cordoaria Sao Leopoldo Offshore SA, Metalurgica Nova Americana Ltda and Metalurgica Ipe Ltda. * * * As reported in the Troubled Company Reporter-Latin America on March 9, 2010, Standard & Poor's Ratings Services lowered its long-term global scale corporate credit rating on Brazil-based industrial and oil and gas valves producer Lupatech S.A. to 'B+' from 'BB-', and its Brazilian national scale rating to 'brBBB+' from 'brA-', and removed them from CreditWatch negative, where they were placed with negative implications on Nov. 13, 2009. At the same time, S&P lowered its rating on the company's $275 million perpetual notes to 'B-' from 'BB-'. The outlook is negative. MARFRIG ALIMENTOS: Buys Keystone Foods for US$1.26 Billion ---------------------------------------------------------- Helder Marinho at Bloomberg News reports that Marfrig Alimentos SA agreed to pay US$1.26 billion for chicken nugget maker Keystone Foods LLC. The report relates that Marfrig Alimentos signed an agreement with Lindsay Goldberg LCC to buy all the shares in closely held West Conshohocken, Pennsylvania-based Keystone. According to the report, Marfrig Alimentos said that buying Keystone gives the company access to a supplier to international food and restaurant companies such as McDonald's Corp. and Campbell Soup Co. Marfrig has sought to expand production through acquisitions in the past three years. "Adding the resources and the experience of Keystone Foods and its management, we will be expanding businesses of the Marfrig group with the scale and a sustainable supply chain that are necessary to achieve significant growth opportunities in the industry and to serve the needs of our global customers," the report quoted Company CEO and Chairman Marcos Antonio dos Santos. The company, the report notes, said that it plans to sell BRL2.5 billion (US$1.38 billion) of five-year convertible-local bonds "to finance this acquisition and at the same time maintain the flexibility in its balance sheet." Current shareholders will have priority to buy the bonds, the company added. Keystone produces more than 1.6 billion pounds of poultry products and 388 million pounds of beef products a year and distributes them to about 30,000 restaurants in 13 countries including the U.S., France, Australia, South Korea and Israel. 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 USINAS SIDERURGICAS: Court Upholds Cartel Ruling Against Firm ------------------------------------------------------------- Alastair Stewart at Dow Jones Newswires reports that a Brazilian federal court upheld a decision to fine local steelmakers Companhia Siderurgica Nacional SA and Usinas Siderurgicas de Minas Gerais SA for forming a cartel. According to the report, the court rejected an appeal against the 1999 decision by the Justice Ministry's Cade antitrust regulator to fine the three firms some 1% of 1996 revenue, or a total of BRL50 million (US$28.2 million). The report relates that the decision has historic undertones as it was one of the first times that Cade had condemned companies for forming a cartel. Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal, and the U.S. * * * As of January 12, 2010, the company continues to carry Moody's Currency LT Debt ratings at Ba1. The company also continues to carry Standard and Poor's Issuer credit ratings at BB+. About Usiminas Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas do Minas Gerais S.A. aka Usiminas -- http://www.usiminas.com.br-- is principally engaged in the steel industry. The company has a production capacity of 4.7 million tons of crude steel per annum. The company produces non-coated steel (including slabs, heavy plates, hot- and cold-rolled sheets and coils) and galvanized sheets and coils. The company provides its products to the automotive, piping, building and electrical/electronic and agricultural and road machinery industries. In addition to its core business operations, it is also involved in the commercialization, import and export of raw materials, steel products and by-products; the provision of project development and research services; the provision of personnel training services, and the provision of mining, transportation, construction and technical assistance services. The company's products are sold in Brazil, as well as exported to other Latin American countries, the United States, China and South Korea, among others. * * * As of May 7, 2010, the company continues to carry Moody's Ba1 Subordinate Debt rating. ========================== C A Y M A N I S L A N D S ========================== BABSON GLOBAL: Members' Final Meeting Set for June 29 ----------------------------------------------------- The members of Babson Global Macro Limited will hold their final meeting, on June 29, 2010, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BATTERSEA LIMITED: Members' Final Meeting Set for July 14 --------------------------------------------------------- The members of Battersea Limited will hold their final meeting, on July 14, 2010, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BLACK RIVER: Members' Final Meeting Set for July 14 --------------------------------------------------- The members of Black River Municipal Opportunity Fund Ltd. will hold their final meeting, on July 14, 2010, at 11:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BLACK RIVER: Members' Final Meeting Set for July 14 --------------------------------------------------- The members of Black River Municipal Opportunity Master Fund Ltd. will hold their final meeting, on July 14, 2010, at 11:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CULZEAN LIMITED: Members' Final Meeting Set for July 12 ------------------------------------------------------- The members of Culzean Limited will hold their final meeting, on July 12, 2010, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CYAN OPPORTUNITIES: Members' Final Meeting Set for June 29 ---------------------------------------------------------- The members of Cyan Opportunities Fund, Ltd. will hold their final meeting, on June 29, 2010, at 10:40 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CYAN OPPORTUNITIES: Members' Final Meeting Set for June 29 ---------------------------------------------------------- The members of Cyan Opportunities, Ltd. will hold their final meeting, on June 29, 2010, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands DRIEHAUS INTERNATIONAL: Members' Final Meeting Set for June 29 -------------------------------------------------------------- The members of Driehaus International Small Cap Growth Fund, Ltd. will hold their final meeting, on June 29, 2010, at 9:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands MCKINLEY NON-U.S.: Shareholders' Final Meeting Set for July 9 ------------------------------------------------------------- The shareholders of Mckinley Non-U.S. Ex-Canada Developed/(130/30) Growth Offshore Fund Ltd. will hold their final meeting, on July 9, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Fund Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands MULTIPLUS CORPORATION: Members' Final Meeting Set for June 29 ------------------------------------------------------------- The members of Multiplus Corporation will hold their final meeting, on June 29, 2010, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands S-LINK LIMITED: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of S-Link Limited received on June 11, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands TVA OPPORTUNITY: Shareholders' Final Meeting Set for July 9 ----------------------------------------------------------- The shareholders of TVA Opportunity Master Fund will hold their final meeting, on July 9, 2010, at 9:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands ============= J A M A I C A ============= AIR JAMAICA: Shelves Plans for New Grand Cayman, Barbados Flights ----------------------------------------------------------------- Air Jamaica Limited has halted plans to fly from Jamaica to Grand Cayman and from New York to Barbados this summer, Travel Agent Central reports. "There was a high level of excitement after we announced the addition of Grand Cayman and Barbados to our schedule, and we are very disappointed that we are not able to do so at this time," said Bruce Nobles, president and CEO of Air Jamaica, in a written release obtained by the news agency. "We had expected to add another aircraft to the fleet but this deal will not go forward. Operating the schedule as planned would have compromised our reliability and so we had to suspend these two routes," he added. According to the report, Air Jamaica will still go forward with the addition of New York/Grenada to its summer schedule, as well as a return to Nassau, an increase in flights to Toronto and an increase in flights between Kingston and New York as previously announced. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government owned 25% of the company after it went private in 1994. However, in late 2004, the government assumed full ownership of the airline after an investor group turned over its 75% stake. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on January 27, 2010, Moody's Investors Service changed the ratings outlook of Air Jamaica Limited to stable. The Corporate Family and senior unsecured ratings of Air Jamaica are affirmed at Caa1. The change in outlook mirrors the change of the outlook of the foreign currency bond rating of The Government of Jamaica to stable, which occurred on January 22, 2010. The ratings reflect Jamaica's unconditional and irrevocable guarantee of the rated debt obligations of Air Jamaica. The foreign currency bond rating of Jamaica remains Caa1, notwithstanding the January 22, 2010 downgrade of Jamaica's local currency bond rating by Moody's to Caa2. As reported in the TCR-LA on November 5, 2009, Standard & Poor's Ratings Services said that it lowered its long-term corporate credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The outlook is negative. AIR JAMAICA: New Trinidad Government Not a Threat to Airline ------------------------------------------------------------ Horace Hines at Jamaica Observer reports that Chief Executive Officer of Caribbean Airlines Limited Ian Brunton said he is confident that the newly formed Trinidad and Tobago government, headed by Prime Minister Kamla Persad-Bissessar, should not affect the arrangement between the Jamaican and Trinidad governments in the Air Jamaica Limited deal. According to the report, Caribbean Airlines acquired Air Jamaica in May, before Mr. Bissessar's coalition party defeated the Patrick Manning led People's National Movement, which had signed the deal. The report relates that the opposition had been stinging in its criticism of the deal, stating that Trinidad could not afford to bail out Air Jamaica. "Nothing is going to change. What has happened in Trinidad . . . there has been a change in government. But it is a responsible, modern government. What went on between the government of Trinidad and Tobago and the Government of Jamaica is an international treaty. It is something that is good for both sides," the report quoted Mr. Brunton as saying. As reported in the Troubled Company Reporter-Latin America on June 15, 2010, Jamaica Gleaner said that the new Trinidad government is reportedly having second thoughts about the takeover of Air Jamaica by Caribbean Airlines. According to the report, under the agreement finalized on April 28, 2010, the government of Trinidad and Tobago was slated to contribute working capital to facilitate the merger while the Jamaican Government assumed the debt and covered the multibillion-dollar winding-up costs. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government owned 25% of the company after it went private in 1994. However, in late 2004, the government assumed full ownership of the airline after an investor group turned over its 75% stake. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on January 27, 2010, Moody's Investors Service changed the ratings outlook of Air Jamaica Limited to stable. The Corporate Family and senior unsecured ratings of Air Jamaica are affirmed at Caa1. The change in outlook mirrors the change of the outlook of the foreign currency bond rating of The Government of Jamaica to stable, which occurred on January 22, 2010. The ratings reflect Jamaica's unconditional and irrevocable guarantee of the rated debt obligations of Air Jamaica. The foreign currency bond rating of Jamaica remains Caa1, notwithstanding the January 22, 2010 downgrade of Jamaica's local currency bond rating by Moody's to Caa2. As reported in the TCR-LA on November 5, 2009, Standard & Poor's Ratings Services said that it lowered its long-term corporate credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The outlook is negative. JPSCO: Energy Minister Defends Himself in Wake of Firm Increase --------------------------------------------------------------- Energy Minister James Robertson has hit back at Omar Azan, President of the Jamaica Manufacturers Association, who bitterly lashed out at a rate increase granted to the Jamaica Public Service Company, RadioJamaica News reports. According to the report, Mr. Azan blasted Mr. Robertson and the Office of Utilities Regulation over new increases in inflation rates while berating them for stating that the rate hike has been nullified by a drop in the price of oil and an ease in the exchange rate. Mr. Robertson claimed that Mr. Azan's anger has been misdirected because he cannot be held responsible for periodic adjustments in JPS rates. "He is very unreasonable but the Ministry or Minister of Energy (cannot) instruct the OUR, an independent authority. There is a license which dictates what can be given to the JPSCO, so his anger directed at me is unreasonable," the report quoted Mr. Robertson as saying. Mr. Robertson, the report discloses, also asserted that applications for periodic increases from the JPSCO are legally binding in the provisions of the 2001 license agreement and that the OUR must respond favorably to the requests. As reported in the Troubled Company Reporter-Latin America on June 15, 2010, RadioJamaica said that OUR granted JPSCO an inflation adjustment. The report related that JPSCO was seeking an inflation related increase in electricity rates from the OUR. JPSCO, the report noted, had applied for a 4.81% increase in non- fuel costs of electricity bills but the OUR granted the light and power company a 4.79% increase. The increases will take effect on June 18, 2010. About JPSCO Headquartered in Kingston, Jamaica -- https://www.jpsco.com/ -- Jamaica Public Service Company Limited is an integrated electric utility company and the sole distributor of electricity in Jamaica. The company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. Japanese-based Marubeni Corporation owns 80 percent of the company. The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has roughly 582,000 customers who are served by a workforce of over 1,600 employees. The Company owns and operates 28 generating plants, 54 substations, and roughly 14,000 kilometers of distribution and transmission lines. * * * As reported in the Troubled Company Reporter-Latin America on March 12, 2010, RadioJamaica said that the multi-billion dollar show down between the Jamaica Public Service and the three unions -- BITU, NWU, and UCASE -- representing workers at the company has entered the penultimate stage before the Industrial Disputes Tribunal. The report related that the IDT heard testimony from the Chairman of JPSCO, Tommy Fukuda who was called as the last witness. According to the report, Mr. Fukuda maintained that JPSCO has paid the US$2.3 billion it owed the workers following the 2001 job reclassification exercise. However, the report related, the three unions argued that the company still owed the workers an additional JM$500 million to JM$600 million in retroactive, overtime and redundancy payments. =========== M E X I C O =========== CEMEX SAB: Debt Terms Create 'Nightmares' of Missing Mergers ------------------------------------------------------------ Thomas Black at Bloomberg News reports that CEMEX, S.A.B. de C.V. is concerned that its efforts to cut debt will mean sitting out the next round of industry consolidation. "Our strategic position in the sector appears in my nightmares," Fernando Gonzalez, chief of planning and finance, told the news agency an interview. "The largest players might grow faster than what we can do in the next five years, and that keeps me up," he added. According to the report, Mr. Gonzales said that after a near- default on US$21.7 billion in debt in 2009, any expansion will have to come through an investment fund in which Cemex SAB will be a minority partner, rather than the direct purchaser. "The main fear is letting good opportunities in good markets pass by," the report quoted Gonzalo Fernandez, an analyst with Banco Santander SA, as saying. Mr. Gonzalez, the report notes, estimated that there is a potential for US$42 billion of acquisitions worldwide in cement operations, the largest share of a possible US$70 billion of deals in the global building-materials industry. Keeping Pace "Our competitors are nowadays in good shape, and I'm sure they have their plans to continue the growth process," the report quoted Mr. Gonzalez, as saying." "We know we have to keep the pace," he added. The report notes Mr. Gonzales said that Cemex SAB's investment fund, unveiled in April, may offer a way around the limits on acquisitions put in place by creditors after an agreement with banks in August to refinance about US$15 billion in debt through 2014. The report relates that the company sold shares and assets to reduce debt and adopted a cap of US$100 million a year for acquisitions or joint ventures. Cemex hired Lazard Ltd. to help drum up interest in the fund, Blue Rock Cement Holdings SA, and expects to reach its target of having US$500 million to invest "at the latest in a couple of months," Mr. Gonzalez said, the report notes. Mr. Gonzales, the report discloses, said that Cemex SAB would take a minority stake of 10% to 20% in the fund and run any cement plants acquired or built. At the end of five years, Cemex would have the option to buy out its partners, he added. Mr. Gonzales, the report adds, said that the company will contribute the entire $100 million it's allowed to spend on acquisitions this year. About CEMEX SAB CEMEX, S.A.B. de C.V. is a Mexican corporation, a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As of 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 "B" LT Issuer Default ratings and "B+" Currency LT Debt ratings. Cemex is seeking US$1.3 billion in compensation for the seizure of its assets. The government of President Hugo Chavez has offered about a third of that. COMERCIAL MEXICANA: Shareholders Approve Restructuring ------------------------------------------------------ Controladora Comercial Mexicana SAB de CV's shareholders have approved a plan to restructure its debt, moving a step closer to the end of a lengthy battle with creditors, Cyntia Barrera Diaz at Reuters reports. As reported in the Troubled Company Reporter-Latin America on May 31, 2010, Dow Jones Newswires said that Comerci has reached a debt restructuring agreement with most of its creditors under which it will issue around US$1.54 billion in new debt. The report related that the company said that the agreement reached with a substantial majority of its creditors will be put to a shareholder vote on June 11, 2010, and also requires the approval of creditor committees. According to Reuters, the shareholders' vote was crucial for Comerci to move ahead with a prepackaged credit court proceeding in a landmark test of Mexico's insolvency laws. Its plan will be presented in the United States as well, under Chapter 15 of the U.S. bankruptcy code, the report notes. Reuters points out that Comerci could become the first listed company to file a pre-pack debt restructuring in Mexico, taking advantage of 2007 reforms to the country's insolvency law and opening the way for other troubled companies. The report notes that Mexico's insolvency law, called "Concurso Mercantil," is just 10 years old. The report says that companies and lenders are still wary of using it given concerns about transparency and a lack of precedent for many complex situations, and they often opt instead to spend years in out-of-court negotiations. Comerci could be ready to present all papers to the court next week. About Comerci Controladora Comercial Mexicana SAB de CV a.k.a Comerci (MXK:COMERCIUBC) -- http://www.comerci.com.mx/-- is a Mexican holding company that, through its subsidiaries, operates several chains of retail stores, as well as a chain of family restaurants under the Restaurantes California brand name. In addition, CCM owns a 50% interest in the Costco de Mexico, a joint venture with Costco Wholesale Corporation, which operates a chain of membership warehouses in Mexico. The company's store chains include Comercial Mexicana, City Market, Mega, Bodega CM, Sumesa and Alprecio, among others. As of December 31, 2007, CCM operated 214 commercial units and 71 restaurants across Mexico. The company's retail outlets sell a variety of food items, including basic groceries and perishables, and non-food items, which include electronics, home furnishings, personal hygiene products and clothing. CCM is a parent of Tiendas Comercial Mexicana SA de CV, Tiendas Sumesa SA de CV, Restaurantes California SA de CV and Costco de Mexico SA de CV, among others. * * * As of June 19, 2009, the company continues to carry Moody's "D" LT Issuer Credit ratings. The company also continues to carry Fitch Ratings' "D" LT Issuer Default ratings. CONSORCIO HOGAR: Moody's Downgrades National Rating to 'Ba3' ------------------------------------------------------------ Moody's de Mexico downgraded to Ba3.mx from Ba2.mx the national scale the issuer rating, and to B3 from B2 the global scale local currency rating of Consorcio Hogar, S.A.B. de C.V. Concurrently, Moody's announced that it would withdraw Hogar's rating for business reasons. This rating action reflects Hogar's ongoing challenges in returning to positive net profits as well as demonstrating only a modest improvement in sales over the past twelve months while continuing to maintain very weak credit metrics. In addition, Hogar is currently without a CEO and has just restructured its Board of Directors, which casts doubt regarding the strategic direction of the firm. This rating was downgraded and withdrawn: * Consorcio Hogar, S.A.B. de C.V. -- issuer rating to B3/Ba3.mx from B2/Ba2.mx Moody's last rating action with respect to Hogar took place on August 21, 2008 when Moody's downgraded to Ba2.mx from Baa3.mx the national scale issuer rating, and to B2 from B1 the global scale local currency issuer rating, of Hogar and changed the outlook to negative. Consorcio Hogar is a publicly traded mid-sized homebuilder engaged in the development, construction, marketing, and sale of affordable housing in Mexico. The firm reported assets of approximately $918 million Mexican pesos and equity of approximately $384 million Mexican pesos at March 31, 2010. *********** 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 * * *