/raid1/www/Hosts/bankrupt/TCRLA_Public/100618.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, June 18, 2010, Vol. 11, No. 119
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L: Vantis Plc Chief Executive Officer Resigns
A R G E N T I N A
AEROPUERTOS ARGENTINA: Moody's Assigns 'B1' Currency Rating
ASOCIACION CIVIL: Creditors' Proofs of Debt Due on July 16
B.H.L. EXPRESS: Creditors' Proofs of Debt Due on August 6
BITECHE SRL: Creditors' Proofs of Debt Due on June 30
BLANCO MIGUEL: Creditors' Proofs of Debt Due on July 12
CONIGLIO SA: Stops Making Payments
ESTABLECIMIENTO GRAFICO: Creditors' Proofs of Debt Due on Sept. 1
LIBRERIAS CIENFUEGOS: Stops Making Payments
SORTITEX SA: Asks for Preventive Contest
B R A Z I L
GERDAU SA: Raised to 'Buy' from 'Hold' at Deutsche Bank
MARFRIG ALIMENTOS: S&P Reviews 'B+' Corporate Credit Rating
MARFRIG FRIGORIFICOS: MIPA Cues Moody's 'B1' Rating Review
C A Y M A N I S L A N D S
G SQUARE: S&P Affirms Ratings on Various Classes of Notes
E C U A D O R
* ECUADOR: Finance Ministry Sells US$594 Million in Domestic Bonds
J A M A I C A
JPSCO: To Expand North Coast Hydropower Capabilities
JPSCO: Opposition Seeks RollBack of Firm's Rate Increase
M E X I C O
AXTEL SAB: Unit Concludes 2nd Round of Investment Into Eden
P E R U
DOE RUN PERU: Miners' Nationalization Request May Cost US$1.18 BB
* PERU: Doe Run Nationalization Could Cost the State US$1.18 Bil.
T R I N I D A D & T O B A G O
* TRINIDAD AND TOBAGO: Bank Chief Worries About Gov't Deficit
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Keeps Exec on Payroll Amid Food Scandal
X X X X X X X X
LIAT LIMITED: Cancels 100++ Flights Over Pay Dispute
- - - - -
===============================
A N T I G U A & B A R B U D A
===============================
STANFORD INT'L: Vantis Plc Chief Executive Officer Resigns
----------------------------------------------------------
Harry Wilson at telegraph.co.uk reports that Vantis Plc admitted
that it has money troubles.
According to the report, the company's shares were suspended as it
told the London market that its chief executive and another senior
manager had given up their jobs with immediate effect after
concluding the firm may not have enough cash to continue
operations. The report relates the company said in a statement
that it could "no longer be certain that it will continue to trade
on a going concern basis".
The report notes Vantis Chief Executive Officer Paul Jackson and
Nigel Hamilton-Smith, head of business recovery services, told
Vantis' board on that they would resign as directors.
Finance director Stephen Smith, the report notes, is taking over
the running of the company in the interim. The report says that
Mr. Jackson and Mr. Hamilton-Smith will continue to be employees
of Vantis, which specializes in business recovery work for
troubled companies.
Vantis Plc, the report adds, said that it was looking at selling
some of its assets as well as talking to new investors to help
reduce its GBP54 million debts.
About Vantis
Vantis Business Recovery Services --- http://www.vantisplc.com/--
is a trading division of Vantis Group Ltd, which is regulated by
the Institute of Chartered Accountants in England and Wales for a
range of investment business activities. Vantis Group Ltd is a
Vantis plc group company.
Vantis is the AIM listed UK accounting, tax and business advisory
group.
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
=================
AEROPUERTOS ARGENTINA: Moody's Assigns 'B1' Currency Rating
-----------------------------------------------------------
Moody's Latin America has assigned a B1 global local currency
rating and an Aa2.ar National Scale Rating to Aeropuertos
Argentina 2000 S.A.'s ARS75 million bank credit loan with Banco de
la Nacion Argentina (not rated). At the same time, Moody's
affirmed a B1 global local currency rating and an Aa2.ar National
Scale Rating on AA2000's Class "A" and Class "B" senior unsecured
notes and a B2 global local currency rating and a Aa3.ar National
Scale Rating on AA2000's Class "C" senior unsecured notes. The
Argentine country ceiling constrains the ratings on the notes,
given that they are denominated in US dollars. Simultaneously,
Moody's affirmed AA2000's B1 global local currency corporate
family rating and an Aa2.ar Argentina national scale rating. The
outlook for all ratings is stable.
Ratings are:
-- Issuer: Aeropuertos Argentina 2000 S.A.
-- B1 // Aa2.ar (Global Local Currency Corporate Family Rating
and national scale rating, respectively)
-- B1 // Aa2.ar ARS 75 million bank credit loan
-- US$38 million Senior Unsecured Notes:
-- B1 // Aa2.ar (Global Local Currency Rating and national scale
rating, respectively): Class "A"
-- B1 // Aa2.ar (Global Local Currency Rating and national scale
rating, respectively): Class "B"
-- B2 // Aa3.ar (Global Local Currency Rating and national scale
rating, respectively): Class "C":
Outlook for all ratings is stable.
"The B1 and Aa2.ar ratings principally reflect AA2000's recent
improvements in credit quality and overall credit metrics due to
the final agreement with the national government to increase the
aeronautical tariffs that began in March 2009. Aeronautical
tariffs had been frozen since the last economic crisis in 2002,"
said Veronica Amendola, AVP-analyst at Moody's.
"AA2000's ratings reflect a number of credit factors that include
the company's dominant position in its business and the structure
and length of the 1998 concession agreement under which the
company operates. In addition, the downturns in passenger traffic
that began in 2001 and 2002 as a result of a convergence of
various economic crises and the impact of the events of 9/11, SARs
and the wars in the Middle East have basically ended and the
airport is experiencing some modest growth" said Amendola.
With two main airports generating 94% of its revenues, AA2000 has
limited geographical diversification, which offsets the company's
key strengths. The evolving global macroeconomic situation has
softened the passenger growth rate, as Moody's anticipated in
January 2009. In addition, within AA2000's portfolio of airports,
only Ezeiza (EZE) is currently equipped to service present levels
of international flight traffic. Moody's acknowledges that any
event affecting EZE's capacity to service international flights
could adversely affect the company's business and financial
condition overall.
Key challenges facing AA2000 include the current run-up in
operating costs and some fundamental issues such as the political
risks inherent in operating in Argentina, along with the country's
shrinking and volatile economy.
AA2000's B1 global local currency rating reflects its global
default and loss expectation, while the Aa2.ar national scale
rating reflects the standing of AA2000's credit quality relative
to its domestic peers. Moody's National Scale Ratings are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs in Argentina are
designated by the ".ar" suffix. Issuers or issues rated Aa3.ar
present below-average creditworthiness relative to other domestic
issuers. NSRs differ from global scale ratings in that they are
not globally comparable to the full universe of Moody's rated
entities, but only with other rated entities within the same
country
The rating outlook reflects the bondholder protections embedded in
AA2000's debt structure and Moody's expectations for low revenue
volatility. Additionally, Moody's assumes that the evolving
global macroeconomic situation, leading to a softening passenger
growth rate, will not impact the company's credit performance
dramatically.
Sustained higher than projected passenger traffic, resulting in
higher than expected revenue collections, might exert upward
pressure on the ratings. Additional sources of upward pressure
could result from expansion of AA2000's market size or geographic
diversification, as well as from an improving business environment
in Argentina that leads to growth of both aeronautical and non-
aeronautical revenues.
Possible developments that could have negative implications for
the rating include passenger traffic flows that are substantially
less than projected on a sustained basis, a prolonged inability to
adjust rates and tariffs as needed going forward, and/or
unfavorable changes to the terms of the Concession Agreement.
Headquartered in Buenos Aires, Argentina, AA2000 was incorporated
in 1998 after winning the national and international bid for the
concession rights related to the "Group A" airports of the
Argentine National Airport System. The concession agreement
expires in 2028. AA2000's shareholders are Societa per Azioni
Esercizi Aeroportuali S.E.A (10%), Corporacion America
Sudamericana S.A (35%), Corporacion America S.A (54%) and Riva
SAICFyA (1%).
ASOCIACION CIVIL: Creditors' Proofs of Debt Due on July 16
----------------------------------------------------------
Martha Magdalena Comba, the court-appointed trustee for Asociacion
Civil Pro Defensa de la Salud, el Trabajo y la Seguridad Social's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until July 16, 2010.
Ms. Comba will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 16
in Buenos Aires, with the assistance of Clerk No. 31, 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.
The Trustee can be reached at:
Martha Magdalena Comba
Ortega y Gasset 1739
Argentina
B.H.L. EXPRESS: Creditors' Proofs of Debt Due on August 6
---------------------------------------------------------
The court-appointed trustee for B.H.L. Express S.A.'s
reorganization proceedings will be verifying creditors' proofs of
claim until August 6, 2010.
BITECHE SRL: Creditors' Proofs of Debt Due on June 30
-----------------------------------------------------
The court-appointed trustee for Biteche S.R.L.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
June 30, 2010.
The trustee will present the validated claims in court as
individual reports on August 18, 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
September 20, 2010.
BLANCO MIGUEL: Creditors' Proofs of Debt Due on July 12
-------------------------------------------------------
The court-appointed trustee for Blanco Miguel Florencio y Arias
Gabriel Omar S.H.'s reorganization proceedings will be verifying
creditors' proofs of claim until July 12, 2010.
The trustee will present the validated claims in court as
individual reports on September 7, 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 20, 2010.
CONIGLIO SA: Stops Making Payments
----------------------------------
Coniglio SA stopped making payments last April 21.
ESTABLECIMIENTO GRAFICO: Creditors' Proofs of Debt Due on Sept. 1
-----------------------------------------------------------------
The court-appointed trustee for Establecimiento Grafico San Pablo
S.A.'s bankruptcy proceedings will be verifying creditors' proofs
of claim until September 1, 2010.
LIBRERIAS CIENFUEGOS: Stops Making Payments
-------------------------------------------
Librerias Cienfuegos SRL stopped making payments last May 15,
2010.
SORTITEX SA: Asks for Preventive Contest
----------------------------------------
Sortitex SA asked for preventive contest.
The company stopped making payments last February 1, 2010.
===========
B R A Z I L
===========
GERDAU SA: Raised to 'Buy' from 'Hold' at Deutsche Bank
-------------------------------------------------------
Eric Martin at Bloomberg News reports that Gerdau SA was raised to
"buy" from "hold" at Deutsche Bank AG on June 16, 2010. The
report relates Deutsche Bank said that the company's earnings will
probably increase and it has a "positive strategy outlook."
According to the report, Deutsche Bank boosted its one-year price
estimate for the company's American depositary receipts to US$19
from US$18.
Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As of June 19, 2009, the company continues to carry Moody's Ba1 LT
Corp Family rating and Ba1 Senior Unsecured Debt Ratings.
MARFRIG ALIMENTOS: S&P Reviews 'B+' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'B+'
foreign currency corporate credit rating on Marfrig Alimentos S.A.
on CreditWatch with negative implications. The ratings could
either be affirmed or lowered by one notch at the completion of
S&P's review.
"The CreditWatch placement reflects uncertainties about the
overall effects of an acquisition on Marfrig's financial and
business profiles," said Standard & Poor's credit analyst Flavia
Bedran.
Although the company announced that it plans to finance the
acquisition of U.S.-based food producer Keystone Foods Inc. with a
mandatory convertible debenture issuance, a detailed analysis of
the characteristics of the instrument, which have not been
defined, is warranted.
S&P expects to resolve the CreditWatch listing when S&P has
further information on the mandatory convertible debentures and a
clearer view on the improvements the expected synergies could make
to Marfrig's business profile.
MARFRIG FRIGORIFICOS: MIPA Cues Moody's 'B1' Rating Review
----------------------------------------------------------
Moody's placed Marfrig Frigorificos e Comercio de Alimentos
S.A.'s B1 ratings on review for possible downgrade, following
the company's announcement that it has signed a MIPA --
Membership Interest Purchase Agreement to acquire 100% of the
stock of Keystone Foods for a total initial consideration of
US$1.26 billion (approximately BRL2.5 billion). Closing of the
transaction is expected to take place in the second half of 2010.
These ratings were placed under review for possible downgrade:
-- US$500 million senior unsecured guaranteed notes due 2020:
B1 (foreign currency)
-- US$375 million 9.625% senior unsecured guaranteed notes due
2016: B1 (foreign currency)
-- Corporate family rating: B1 (Global scale)
Marfrig's B1 ratings were placed on review for possible downgrade
based on the fast pace of acquisitions including the Keystone
Foods and Seara purchases. Integrating those operations into the
business will create further operating and execution challenges,
in addition to those posed by the previous acquisitions.
Furthermore, the capital structure that will prevail after the
closing of the deal is likely to stretch Marfrig's balance sheet.
Keystone Food is a global supplier and distributor of protein
products (beef, chicken and fish) primarily to McDonald's
restaurants and other franchises. The company is based in the US,
and through its 54 facilities in 13 countries globally, generated
revenues of US$6.4 billion in 2009.
Prior to the Keystone Foods purchase, Marfrig had acquired a dozen
different companies that have operations in lamb, pork, turkey,
poultry and beef processing in Argentina, Chile, Uruguay, Brazil,
England, Nothern Ireland, France, the Netherlands and USA. The
company's stated strategy of increasing its operations in non-beef
animal proteins and outside of Brazil is positive in terms of
product and geographic sales mix and raw material sourcing, which
are important factors in Moody's natural product processors rating
methodology. The Keystone Foods deal would also have a
substantial positive impact on size and scale factors in the
methodology. This acquisition would make Marfrig a leading
supplier to several fast-food chains including McDonald's,
Campbell's and Subway. However, the pace of acquisitions will
test management's capacity to efficiently operate and integrate
several companies with very different activities and still deliver
credit metrics commensurate with the B1 rating category and more
in line with rated peers.
Moody's review will focus on gaining a better understanding of the
risks and benefits of the acquisition of the Keystone Foods assets
and the future growth strategy of the company. A second important
focus of the review will be on projected cash flow metrics, in
light of the large number of recent acquisitions, even before the
Keystone Foods deal, along with the challenging environment for
cattle sourcing in Brazil.
Moody's review will also consider the amount and details of the
purchase of US$1.26 billion as Marfrig will finance the deal
through the issuance of five-year mandatorily convertible
debentures of BRL 2.5billion (approximately US$1.3 billion).
The transaction will undergo the due diligence, including approval
by anti-trust authorities and is expected to be concluded during
the second half of this year.
Moody's last rating action on Marfrig was on April 26, 2010, when
Moody's assigned a B1 foreign currency rating to Marfrig's
US$500 million senior unsecured guaranteed notes maturing in 2020.
At the same time, Marfrig's existing B1 senior unsecured and
corporate family ratings were affirmed.
Marfrig, headquartered in Sao Paulo, Brazil, is one of the largest
beef processing companies in Brazil. With processing plants in
Brazil, Argentina, Uruguay, Chile, England, Nothern Ireland,
France, The Netherlands and USA, Marfrig processes, prepares
packages and delivers fresh, chilled and processed beef, pork and
lamb products to customers in Brazil and abroad, with
approximately 50% of its sales derived from exports. Along with
its beef products, the company also operates a wholesale food
distribution business which delivers additional food products that
it imports or acquires in the local market.
==========================
C A Y M A N I S L A N D S
==========================
G SQUARE: S&P Affirms Ratings on Various Classes of Notes
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
G Square Finance 2006-1 Ltd.'s notes.
S&P's cash flow analysis indicates that the credit enhancement
available to the class X notes remains commensurate with a 'AAA'
rating. S&P has also based its affirmation decision on the fact
that the seniority of this class of notes does not change even if
an event of default occurs.
S&P's affirmation of the 'CC' ratings on the class A and B notes
is due to a performing asset balance that still does not cover the
current outstanding principal balance of the class A note. S&P
believes these classes of notes remain vulnerable to nonpayment of
interest and principal.
G Square Finance 2006-1 is a collateralized debt obligation of
asset-backed securities transaction.
Ratings List
G Square Finance 2006-1 Ltd.
?17 Million, $1.496 Billion Senior Secured Floating-Rate Notes
Ratings Affirmed
Rating
------
Class To From
----- -- ----
X AAA AAA
A-1 CC CC
A-2 CC CC
B CC CC
=============
E C U A D O R
=============
* ECUADOR: Finance Ministry Sells US$594 Million in Domestic Bonds
------------------------------------------------------------------
Ecuador's Finance Ministry has sold about US$594 million in
domestic bonds since last month, traders from the Quito and
Guayaquil stock exchanges told Dow Jones Newswires.
According to the report, of the total, Ecuador's Social Security
Institute (IESS), bought US$550 million, made up of US$85.85
million in ten-years bonds, with an interest rate of 6.5%, and
US$464.15 million in twelve-year bonds, with an interest rate of
7%. The report relates that state-run Corporacion Financiera
Nacional bought US$17 million, while local brokerages bought the
remaining amount.
Dow Jones Newswires notes that the sale is part of a package of
US$1.52 billion in domestic bonds that the Finance Ministry will
place in three tranches on the Quito and Guayaquil Stock Exchanges
worth US$91.3 million, US$959 million and US$465 million, with
maturities of one to three years, ten years and 12 years,
respectively.
The debt will carry interest rates ranging from 4% to 7%, the
report says.
The report discloses that the administration of President Rafael
Correa will sell the bonds to finance infrastructure projects for
the 2010-2011 period and also to cover financial necessities amid
a lack of financial sources after Ecuador in 2008 defaulted on
US$3.2 billion of Global bonds.
The fiscal deficit, the report notes, is officially projected at
US$4.2 billion for this year, but local economists say that the
government is going to have a deficit of over US$5 billion.
* * *
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 to 'RD' from 'CCC'
following the expiration of the grace period for the coupon
payment on the 2012 global bonds that was due on Nov. 15 and the
government's announcement that it will selectively default on all
global bonds. The short-term foreign currency rating was
downgraded to 'D' from 'C'. The country ceiling remains at 'B-'.
=============
J A M A I C A
=============
JPSCO: To Expand North Coast Hydropower Capabilities
----------------------------------------------------
The Jamaica Public Service Company is to begin work on expanding
its hydropower capabilities on the north coast, Gleaner/Power 106
News reports.
According to the report, the company is set to receive a grant
from Japanese engineering firm Nippon Koei, which will be
instrumental in conducting a feasibility study on the Great River
in western Jamaica. The report relates JPSCO said that it's
looking to develop a hydroelectric power station with a generating
capacity of 8 mega watts of electricity in the area. The report
notes that the move comes six months after the recommissioning of
the Constant Spring Hydroelectric Power Station in St Andrew.
Meanwhile, the report relates, JPSCO said that a five-member
Japanese team is now in the island for a month-long visit to
review the previous studies conducted on the Great River.
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.
JPSCO: Opposition Seeks RollBack of Firm's Rate Increase
--------------------------------------------------------
The Opposition Spokesman on Energy Phillip Paulwell wants a
rollback of the non-fuel rate increase granted to the Jamaica
Public Service Company, Gleaner/Power 106 News reports.
According to the report, despite the increase in the non-fuel
rate, there will be an overall 2.3% reduction in light bills this
month because the fuel rates as well as the U.S. dollar exchange
rate have been cut.
However, the report notes Mr. Paulwell said in the first place
there should not have been any increase in the non-fuel rates.
The report relates Mr. Paulwell is also calling for a reform of
the OUR.
Mr. Paulwell, the report notes, said that the OUR should place
more attention on consumer matters even though it is not a
consumer lobby group.
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
===========
AXTEL SAB: Unit Concludes 2nd Round of Investment Into Eden
-----------------------------------------------------------
Eden Rock Communications, LLC, disclosed that Servicios Axtel,
S.A. de C.V., a subsidiary of Axtel S.A.B. de C.V., has completed
a second round of strategic financial investment into Eden Rock
Communications. Since 2008, Eden Rock has been a provider to
Axtel of 4G strategic technology consulting services in such areas
as strategic technology assessments, airlink systems engineering,
system capacity analysis, system availability analysis, and
equipment certification. Axtel SAB currently operates one of the
largest and most successful WiMAX deployments in the world. Axtel
further seeks to realize the benefits of Eden Rock's Eden-NET(TM)
multi-node controller solution for its 4G network deployments.
"Axtel is a world-class, fast-paced, highly-entrepreneurial,
smaller-tier operator with focus on 4G wireless telephony and
broadband data services. We are pleased Axtel has demonstrated
their confidence in Eden Rock with this second investment," said
Chaz Immendorf, President & CEO of Eden Rock Communications, "Our
work with Axtel has proven to have the added benefit of spawning
numerous innovations which can be applied to our flagship Eden-
NET(TM) product."
"Eden Rock has served Axtel SAB extremely well with their unique
4G technology expertise. Eden Rock demonstrated these
capabilities while assisting Axtel SAB to solve complex issues
presented during our WiMAX deployment in 2008 and 2009. This
expertise and their proprietary Eden-NET solution should deliver
significant benefits to 4G wireless network deployments around the
world. With this agreement, which brings Axtel SAB and Eden Rock
closer, we look forward to expanding further our deployment and
network capacity planning expertise," said Victor Rangel, Axtel
SAB's Technology Planning Director.
Ivan Alonso, Executive Director for Innovation and Technology of
Axtel, has joined the Eden Rock Communications Board of Directors.
"Ivan brings a wealth of industry and operational experience in
the area of wireless network deployments to Eden Rock," said Chaz.
"We value the additional guidance Ivan will bring - he is a great
addition to our Board."
About Eden Rock
Eden Rock Communications, LLC, is a leading innovator of 4G
wireless Self Organizing Network (SON) solutions. Eden Rock's
Eden-NET(TM) Multi-Node Radio Resource Controller product provides
substantial performance gains through the advanced scheduling of
radio resources among multiple neighboring wireless access nodes
for 4G network deployments. Additionally, Eden Rock has a proven
track-record of delivering high-value strategic professional
services to 4G operators, OEM's, and ODM's.
About Axtel SAB
Axtel S.A.B. de C.V. is the second largest fixed-line integrated
services telephony company in Mexico and is one of the primary
virtual private network operators in the country. AXTEL SAB
provides comprehensive telecommunications services to every
sector, from residential and small and medium businesses to large
corporations, financial institutions, and government entities.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 15, 2010, Standard & Poor's Ratings Services lowered its
long-term issuer credit rating on Mexican telecommunications
company Axtel S.A.B de C.V. to 'B+' from 'BB-'. At the same time,
S&P lowered the rating on the company's senior unsecured notes to
'B+' from 'BB-' and affirmed the recovery rating of '3' on the
notes (indicating the expectation of meaningful (50%-70%) recovery
in the event of payment default). The outlook is stable.
=======
P E R U
=======
DOE RUN PERU: Miners' Nationalization Request May Cost US$1.18 BB
-----------------------------------------------------------------
The request by mining workers of Doe Run Peru for the Peruvian
government to nationalize the company could cost the state
US$1.180 billion, Poder360.com reports, citing former mining
director for the Ministry of Energy and Mines, Maria Chappuis.
According to the report, citing an interview given to newspaper
Gestion, Ms. Chappuis said that the government would have to pay
off the debts which the company owes its owner, its suppliers and
the National Superintendent of Tax Administration, which adds up
to US$540 million.
Ms. Maria, the report relates, said that US$500 million in
compensation would have to be paid to children affected by lead
contamination and another US$140 million would have to be paid for
the completion of the mineral foundry and the environmental
cleanup of La Oroya.
As reported in the Troubled Company Reporter-Latin America on
April 30, 2010, Mining Weekly said that Doe Run Peru been given
until end of July to prepare for a restart of its La Oroya
smelter, but the government of Peru warned that there would be
penalties if the new deadline is not met. According to a TCRLA
report on January 26, 2010, Bloomberg News said that Doe Run Peru
is "close" to reaching an agreement on US$156 million of debt to
reopen its zinc and lead smelter. The report recalled that Doe
Run Peru filed for a government-monitored financial restructuring
because it was worried creditors might try to freeze its assets or
operations. Reuters related that Doe Run Peru owes some US$100
million to its suppliers and needs to spend another US$150 million
to clean up La Oroya.
About Doe Run Peru
Doe Run Company operates an integrated primary lead operation and
a recycling operation located in Missouri, referred to as Buick
Resource Recycling. Fabricated Products operates a lead
fabrication operation located in Arizona and a lead oxide business
located in Washington. Doe Run Peru is a subsidiary of the
company.
Doe Run Peru operates a polymetallic smelter at La Oroya and
copper mine at Cobriza both in Peru.
* * *
As of May 21, 2009, the company continues to carry Moody's bank
financial strength at D- and Fitch Ratings' individual rating
at D.
* PERU: Doe Run Nationalization Could Cost the State US$1.18 Bil.
-----------------------------------------------------------------
The request by mining workers of Doe Run Peru for the Peruvian
government to nationalize the company could cost the state
US$1.180 billion, Poder360.com reports, citing former mining
director for the Ministry of Energy and Mines, Maria Chappuis.
According to the report, citing an interview given to newspaper
Gestion, Ms. Chappuis said that the government would have to pay
off the debts which the company owes its owner, its suppliers and
the National Superintendent of Tax Administration, which adds up
to US$540 million.
Ms. Maria, the report relates, said that US$500 million in
compensation would have to be paid to children affected by lead
contamination and another US$140 million would have to be paid for
the completion of the mineral foundry and the environmental
cleanup of La Oroya.
As reported in the Troubled Company Reporter-Latin America on
April 30, 2010, Mining Weekly said that Doe Run Peru been given
until end of July to prepare for a restart of its La Oroya
smelter, but the government of Peru warned that there would be
penalties if the new deadline is not met. According to a TCRLA
report on January 26, 2010, Bloomberg News said that Doe Run Peru
is "close" to reaching an agreement on US$156 million of debt to
reopen its zinc and lead smelter. The report recalled that Doe
Run Peru filed for a government-monitored financial restructuring
because it was worried creditors might try to freeze its assets or
operations. Reuters related that Doe Run Peru owes some US$100
million to its suppliers and needs to spend another US$150 million
to clean up La Oroya.
About Doe Run Peru
Doe Run Company operates an integrated primary lead operation and
a recycling operation located in Missouri, referred to as Buick
Resource Recycling. Fabricated Products operates a lead
fabrication operation located in Arizona and a lead oxide business
located in Washington. Doe Run Peru is a subsidiary of the
company.
Doe Run Peru operates a polymetallic smelter at La Oroya and
copper mine at Cobriza both in Peru.
* * *
As of May 21, 2009, the company continues to carry Moody's bank
financial strength at D- and Fitch Ratings' individual rating
at D.
===============================
T R I N I D A D & T O B A G O
===============================
* TRINIDAD AND TOBAGO: Bank Chief Worries About Gov't Deficit
-------------------------------------------------------------
Tony Fraser at The Associated Press reports that Trinidad and
Tobago's Central Bank Head Bank Gov. Ewart Williams voiced his
concern Tuesday about the government's deficit.
According to the report, Mr. Williams warned that the 2010 budget
projects that government spending will exceed revenues by US$1.1
billion. The economy will likely be flat this year, with possible
growth of just 1%, he added. "This is a serious structural
challenge," the report quoted Mr. Williams as saying.
Mr. Williams, the report notes, said that Prime Minister Kamla
Persad-Bissessar's new coalition government should focus on
economy-boosting spending while restraining spending in other
areas over the next three years.
The report discloses that like other finance experts in recent
years, Mr. Williams called on the government to diversify the
economy because swings in global fuel prices can slash government
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Keeps Exec on Payroll Amid Food Scandal
---------------------------------------------------------------
Dan Molinski at Dow Jones Newswires reports that Petroleos de
Venezuela is keeping one of its top board members on the job and
the payroll despite his recent arrest in an alleged corruption
scandal over tens of thousands of tons of rotting food discovered
abandoned at a government warehouse.
According to the report, Luis Pulido, one of 11 PDVSA board
directors, a group hand-picked by President Hugo Chavez, was
arrested June 1. The report relates Mr. Pulido was charged with
corruption, accused of being one of the leaders in a scheme in
which some 2,334 shipping containers filled with food were
imported by the government, only to go bad in state warehouses,
rather than being distributed.
The report notes that the scandal has also led to calls for the
firing of PDVSA President Rafael Ramirez, Pulido's direct boss.
The Attorney General's office, which is leading the investigation,
has consistently referred to Mr. Pulido simply as the "former
president of PDVAL," which a government-run food distribution
company created as a PDVSA subsidiary, the report states. PDVAL,
Dow Jones Newswires says, uses funds from oil sales to import food
and sell it at discounts of up to 50% to PDVSA employees and the
poor.
However, the report adds, Mr. Pulido remains a current PDVSA board
member and the internal director of production and logistics,
which is a paid position.
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.
===============
X X X X X X X X
===============
LIAT LIMITED: Cancels 100++ Flights Over Pay Dispute
----------------------------------------------------
The Caribbean airline LIAT is canceling more than 100 flights as
pilots call in sick over a long-running pay dispute, Canadian
Business News reports. According to the report, airline spokesman
Desmond Brown said it appears none of the 137 flights scheduled
for Wednesday will be able to take off. Mr. Brown, the report
relates, said that more than 3,000 travelers were booked on those
flights.
The report notes that the sickout comes one day after the regional
carrier's chief executive met with the chairman of the pilots'
association on disputes over pension payments and other issues.
The report says that the Leeward Islands Airline Pilots
Association said after the meeting that the airline falsely
claimed an agreement had been reached for resolving the disputes.
Pilots would show "strong resentment" if the company did not
immediately withdraw those remarks, it added.
***********
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 * * *