/raid1/www/Hosts/bankrupt/TCRLA_Public/100721.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, July 21, 2010, Vol. 11, No. 142
Headlines
A R G E N T I N A
AUTOPISTAS DEL: Debt Offer Fails to Lure Enough Creditors
BIS-AY SRL: Creditors' Proofs of Debt Due on September 9
CABLEVISION SA: Fitch Affirms Low-B Issuer Default Ratings
CRS INFORMATICA: Creditors' Proofs of Debt Due on December 17
DAL SRL: Requests for Preventive Contest
MARAVI TECHNOLOGIES: Asks for Preventive Contest
METROGAS SA: Judge Opens Bankruptcy Protection Proceedings
PACEY SA: Creditors' Proofs of Debt Due on October 25
TEJEDURIA ORIENTAL: Asks for Preventive Contest
VADAMIL SRL: Creditors' Proofs of Debt Due on September 13
B R A Z I L
BANCO BMG: Fitch Assigns 'B' Rating on Subordinated Notes
BANCO VOTORANTIM: Raises US$400MM in 2020 Bond Retap
BR MALLS: EI Brazil Investments Sells Firm's Shares in Auction
BROOKFIELD INCORPORACOES: 2ndQ Contracted Sales Totals BRL1.3BB
COMPANHIA DE SANEAMENTO: Approves 5th Issue of Promissory Notes
CESP: Names Hudson Calefe as Chief Executive Officer
GERDAU SA: Credit Suisse Raises Year-End Target Share Price
USINAS SIDERURGICAS: Credit Suisse Raises Target Share Price
C A Y M A N I S L A N D S
AI-EVENT DRIVEN: Creditors' Proofs of Debt Due on August 18
AI-TACTICAL TRADING: Creditors' Proofs of Debt Due on August 18
ARUMON OFFSHORE: Creditors' Proofs of Debt Due on August 23
BLUETRACK ASSET: Creditors' Proofs of Debt Due on August 30
BROOKLINE AVENUE: Creditors' Proofs of Debt Due on August 19
DB MARCASSIN: Creditors' Proofs of Debt Due on August 20
HARMONY ORACLE: Commences Liquidation Proceedings
HYUNDAI CAPITAL: Creditors' Proofs of Debt Due on August 19
MITRA CORP: Creditors' Proofs of Debt Due on August 23
NETHERFIELD INVESTMENTS: Creditors' Proofs of Debt Due on Aug. 6
OAKTREE INVESTMENTS: Creditors' Proofs of Debt Due on August 10
SITHE GLOBAL: Creditors' Proofs of Debt Due on August 19
TCM SPECTRUM: Creditors' Proofs of Debt Due on August 18
TCM SPECTRUM: Creditors' Proofs of Debt Due on August 18
TREETOP GLOBAL: Creditors' Proofs of Debt Due on August 19
TRICOM LATINOAMERICA: Creditors' Proofs of Debt Due on August 16
TUSCAN CAYMAN: Creditors' Proofs of Debt Due on August 19
UBS JAPAN: Creditors' Proofs of Debt Due on August 19
UBS JAPAN: Creditors' Proofs of Debt Due on August 19
WP X: Creditors' Proofs of Debt Due on August 19
C O L O M B I A
BANCOLOMBIA SA: Sells US$620 Million 10-Year Bonds at 6.3%
PETROECUADOR: To Spend US$1.7 Million to Study Refinery Expansions
M E X I C O
CONTROLADORA COMERCIAL: Chapter 15 Case Summary
HIPOTECARIA SU: S&P Junks Counterparty Credit Rating
GRUMA SAB: Venezuela Studying Joint Venture With Subsidiary
P E R U
DOE RUN PERU: Presents 48-Month Payback Plan to Creditors
V E N E Z U E L A
PETROLEOS DE VENEZUELA: China Create JV to Develop Agriculture
- - - - -
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A R G E N T I N A
=================
AUTOPISTAS DEL: Debt Offer Fails to Lure Enough Creditors
---------------------------------------------------------
Drew Benson and Rodrigo Orihuela at Bloomberg News report that
Autopistas del Sol SA is struggling to drum up creditor support
for its restructuring plan after months of negotiations.
According to the report, the company extended its swap offer for a
ninth time, eight months after saying it was halting payments on
the dollar-denominated bonds because government restrictions on
toll-rate increases led to a "progressive deterioration" of its
finances. The report relates that Autopistas del Sol originally
sought to conclude the debt exchange by February.
Bloomberg News notes that the company said participation in its
exchange offer reached 92.5% as of July 16, below a 96% target
needed to avoid a courtroom settlement.
As reported in the Troubled Company Reporter-Latin America on
June 24, 2010, Dow Jones Newswires said that Autopistas del Sol
again extended the closing date for a restructuring offer to
July 16, 2010, from June 17, 2010, as many creditors continue to
turn up their noses at the deal. The report related that the
offer was first made in January, and has been extended several
times. The report noted that the company is trying to get at
least two-thirds of its bondholders to sign onto the restructuring
proposal, which it hopes will allow the company to trim its
liabilities and avoid bankruptcy. The report recalled that Ausol
del Sol failed to make a US$9 million interest payment Nov. 23,
2010, resulting to a default on its US$307 million debt and
leading the government to step in to audit and monitor the
company's debt restructuring. Ausol del Sol suffered last year due
to lower traffic levels, increasing operational costs and a
devaluation of the peso, the report added.
About Autopistas del Sol
Autopistas del Sol S.A. operates and maintains motorways in
Argentina. The company runs part of the Pan-American highway as
toll concession.
* * *
As of June 23, 2010, the company continues to carry Standard and
Poor's "D" long-term foreign issuer credit rating. The company
also continues to carry S&P's "D" national long-term issuer credit
rating.
BIS-AY SRL: Creditors' Proofs of Debt Due on September 9
--------------------------------------------------------
Maria Cristina Salzano, the court-appointed trustee for Bis-Ay
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until September 9, 2010.
Ms. Salzano will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 49, 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.
The Trustee can be reached at:
Maria Cristina Salzano
Pringues 463
Argentina
CABLEVISION SA: Fitch Affirms Low-B Issuer Default Ratings
----------------------------------------------------------
Fitch Ratings has affirmed Cablevision S.A.'s long-term foreign
currency Issuer Default Rating at 'B' and its local currency IDR
at 'B+'. Fitch has also affirmed the 'B' / RR4 ratings on
Cablevisions' senior unsecured notes. The Rating Outlook is
Stable.
The issue and Recovery Ratings apply to US$516 million of
outstanding notes as of March 2010:
-- US$100 million, seven-year bond (2012);
-- US$235.1 million, 10-year bond (2015);
-- US$100.4 million, seven-year bond (2013);
-- US$80.3 million, 10-year bond (2016).
The ratings are supported by the company's solid business position
and strong credit protection measures. They take into
consideration increasing regulatory risk and political
interference within the media industry. Other credit concerns
include the lack of revenue diversity and costs pressures derived
from double digit inflation. Cablevision's FC IDR is capped by
Argentina's country ceiling of 'B', while its Recovery Rating of
'RR4' is constrained by the soft cap of 'RR4' for bonds issued by
Argentine corporates.
As the largest pay TV provider in Argentina, Cablevision's
business proved to be resilient during the recent global economic
downturn. The company generated US$ 1140 million of revenues and
US$415 million of EBITDA for the LTM ended March 31, 2010. These
figures compare with US$ 1124 million of revenues and
US$377 million of EBITDA for the LTM ended March 31, 2009.
Cablevision's leading position in the Pay-TV business allowed it
to pass-through costs increases and maintained operating margins
within the range of 33-36% over the last five years, consistent
with those of its peers. The company's solid business performance
in the midst of an economic crisis was the result of its strategy
of targeting high-quality subscribers, which improved average
revenue per user (ARPU), operating margins, subscriber loyalty and
cash flows, while lowering subscriber churn levels.
The political climate in Argentina continues to present challenges
for media and entertainment companies. In mid-2009, the
government moved to nationalize the licenses to offer payTV
football. Other issues faced by the company include the
government's attempt to regulate cable TV prices and to nullify
Cablevision's merger with Multicanal S.A. While many of the
regulatory and legal actions have yet to be implemented or are
undergoing a judicial review, they indicate a challenging and
highly politicized regulatory environment for the industry that is
not expected to cease until 2011.
In terms of the network reach and capacity, Cablevision has
achieved significant synergies from its merger with Multicanal.
The company has network bi-directional capabilities of 56%, and
its investments in dark fiber rings have allowed it to transport
almost 90% of internal traffic through its own network. Organic
growth has also been increased by Cablevision's efforts to
continuously widen its bandwidth capacity. Investments during the
last year have been more selective due to recent political actions
and were mainly oriented towards short term returns.
As of March 31, 2010, Cablevision had US$533 million of financial
debt, a reduction from US$784 million as of December 2007. The
lack of access to local and international debt capital markets by
Cablevision is offset by its low leverage, manageable debt
maturity profile, and strong free cash flow. Cablevision's
liquidity position is supported by expected free cash flow
generation (after potential dividend payments) and approximately
US$50 million of cash on hand as of March 31, 2010. During the
remainder of 2010 approximately US$33 million of debt is scheduled
to mature, followed by approximately US$50 million during 2011.
The company's leverage ratio (total debt/EBITDA) for the LTM ended
March 31, 2010 was 1.30 times, which is below its leverage target
of 2.0x.
Fitch projects that the company will generate more than
US$120 million of free cash flow during 2010. Most of this excess
cash flow will be used to reduce debt. The company's low leverage
is appropriate due to the continued regulatory and political
threatens against Grupo Clarin and its subsidiaries (Cablevision)
that make it difficult to plan and execute new long-term projects.
Cablevision is the largest MSO in Argentina serving 3.2 million
(including Uruguay and Paraguay) pay TV basic subscribers out of
7 million and 7.5 million of home-passed, showing a high Pay TV
penetration compared to Latin American peers and more than
1 million of internet subscribers. As of July 19, 2010, Pay-TV
revenues account for almost 80% of total revenues and internet
accounts for the remaining 20% of total revenues. Cablevision is
indirectly controlled by the Argentine media group Clarin (60%)
and 40% by Fintech Advisory Inc.
CRS INFORMATICA: Creditors' Proofs of Debt Due on December 17
-------------------------------------------------------------
Nestor Szwarcberg, the court-appointed trustee for CRS Informatica
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until December 17, 2010.
Mr. Szwarcberg will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 10 in Buenos Aires, with the assistance of Clerk
No. 20, 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.
The Trustee can be reached at:
Nestor Szwarcberg
Pinzon 1555
Argentina
DAL SRL: Requests for Preventive Contest
----------------------------------------
Dal SRL requested for preventive contest.
The company stopped making payments last June 29, 2010.
MARAVI TECHNOLOGIES: Asks for Preventive Contest
------------------------------------------------
Maravi Technologies Argentina SA asked for preventive contest.
The company stopped making payments last March 26, 2010.
METROGAS SA: Judge Opens Bankruptcy Protection Proceedings
----------------------------------------------------------
A Buenos Aires judge has opened bankruptcy proceedings requested
by Metrogas SA, Drew Benson at Bloomberg News reports, citing a
company statement to the stock exchange.
As reported in the Troubled Company Reporter-Latin America on
June 22, 2010, The Financial Times said that Argentina Planning
Ministry said the government will take over administration of
Metrogas SA, after the company said it could not meet its US$20
million debts. According to Dow Jones Newswires said that
Metrogas SA filed for bankruptcy protection in Argentine court
after it been plagued with debt problems, citing "an urgent need"
to for the government to increase the rates it charges to
customers. Metrogas SA described the bankruptcy filing
as similar to a Chapter 11 filing in the U.S. Meanwhile, Dow
Jones Newswires related that the government rejects Metrogas SA'
claim that frozen tariffs have caused its financial problems. The
company's debt has nothing to do with investments and its problems
date back to the country's default in 2001, the government added,
the report added.
About Metrogas SA
Metrogas SA is an Argentinean gas distribution utility, with
operations in the capital city and the southern area of Buenos
Aires Province, which is one of the biggest concession areas in\
terms of number of clients and annual revenues of ARS 780 million.
Metrogas is controlled by GASA, a holding company that is
controlled by BG (54.7%; A2 Stable) and YPF (45.3; Ba1, Sta.).
* * *
As reported in the Troubled Company Reporter-Latin America on
March 16, 2010, Moody's assigned Caa3 global scale ratings and
Caa3.ar national scales ratings to Metrogas S.A. up to US$600
million MTM Program. The outlook for all the ratings is negative.
PACEY SA: Creditors' Proofs of Debt Due on October 25
-----------------------------------------------------
Atilio Ruben Mossi, the court-appointed trustee for Pacey SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until October 25, 2010.
Mr. Mossi will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 8 in
Buenos Aires, with the assistance of Clerk No. 16, 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.
The Trustee can be reached at:
Atilio Ruben Mossi
Montevideo 536
Argentina
TEJEDURIA ORIENTAL: Asks for Preventive Contest
-----------------------------------------------
Tejeduria Oriental SA asked for preventive contest.
VADAMIL SRL: Creditors' Proofs of Debt Due on September 13
----------------------------------------------------------
Gabriel Gerardo Garber, the court-appointed trustee for Vadamil
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until September 13, 2010.
Mr. Garber will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 33, 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.
The Trustee can be reached at:
Gabriel Gerardo Garber
Uruguay 750
===========
B R A Z I L
===========
BANCO BMG: Fitch Assigns 'B' Rating on Subordinated Notes
---------------------------------------------------------
Fitch Ratings has assigned an expected rating of 'B' to Banco BMG
S.A.'s upcoming issuance of subordinated notes due 2020.
The notes will carry semi-annual payments of interest at a fixed
interest rate to be set at the time of issuance. The final rating
for the notes is contingent on the receipt of final documentation
conforming to information already received. The expected rating
of the subordinated notes is notched two notches below the bank's
long-term local currency IDR of 'BB-'. The notching of the issue
below the bank's IDRs reflects the issue's subordinated status.
BMG's IDRs are driven by its Individual rating, which reflects the
bank's strong franchise in its product niche, lending against
public sector payrolls and beneficiary payments of the Brazilian
social security agency payments, which have contributed to the
bank's good profitability and good asset quality. At the same
time, the vulnerability to external factors coupled with the
bank's dependence on a sole product and few institutional funding
sources, which constrains its individual rating and could affect
its profitability and loan origination.
The securities are subject to approval from Brazil's Central Bank
to be treated as Tier II instruments for regulatory capital
purposes and will likely be considered as class D securities and
receive 75% equity-credit under Fitch's guidelines regarding its
capital assessment approach, reflecting their high loss absorption
capacity. BMG has historically maintained capitalization ratios
in line with local peers although continued loan growth, as
anticipated, has put some pressure on its capital ratios; the
regulatory capital stood at 13.9% at the end of the second quarter
of 2010. The proceeds arising from the subordinated issue will be
used to both strengthen its total capitalization ratio in view of
expected continued growth of its loan operations in 2010/2011 and
will help ease the expected impact on earnings in 2011 of new
accounting requirements related to loan assignment expected for
January 2011.
Under Fitch's criteria, eligible hybrids and other capital
securities (equity-like instruments) can represent up to 30% of
Fitch eligible capital, defined as core capital plus eligible
hybrid debt and other capital securities. With this issue, these
will stand at about 27% of Fitch eligible capital, which should
stand at a relatively tight ratio of approximately 12.5%.
BMG has its origins back in 1930 and is owned by Mr. Flavio
Pentagna Guimaraes and his family, which directly and indirectly
control approximately 98.9% of total voting shares. The Guimaraes
family also has interests in real state, agribusiness and food
processing.
BANCO VOTORANTIM: Raises US$400MM in 2020 Bond Retap
----------------------------------------------------
Banco Votorantim raised US$400 million in a reopening of its
existing 2020 bonds, offering investors a yield of 7%, Kejal Vyas
at Dow Jones Newswires reports, citing an unnamed source.
Bank of America Merrill Lynch, BB Securities, Deutsche Bank and
RBS were lead managers of the deal.
The offering, the report notes, adds to the US$750 million in
securities the bank priced in January. At the time, the company
had to entice buyers with a yield of 7.375%, the report adds.
Terms of the bond retap were:
Amount: $400 Million
Maturity: Jan. 21, 2020
Coupon: 7.375%
Price: 102.566
Yield: 7%
Spread: 404.3 basis points over Treasurys
About Banco Votorantim
Banco Votorantim S.A., together with its subsidiaries, operates as
a multiple bank with commercial, credit, financing, and investment
portfolios in Brazil. It offers commercial and investment banking
services, consumer finance, asset management, and securities
brokerage services. The company engages in financing for the
infrastructure sector, including projects involving electric power
generation, transmission, and distribution; and providing private
banking services, such as wealth management and estate planning
advisory services with a focus on risk control, investment
performance, and wealth preservation and expansion. Banco
Votorantim also engages in the negotiation and distribution of
securities for third parties, and administration of investment
funds. The company was founded in 1988 and is headquartered in
Sao Paulo, Brazil. Banco Votorantim S.A. is a part of the
Votorantim Group
* * *
As of January 12, 2010, the bank continues to carry Standard and
Poor's BB+ LT Issuer Credit ratings. The company also continues
to carry S&P's B ST Issuer Credit ratings.
BR MALLS: EI Brazil Investments Sells Firm's Shares in Auction
--------------------------------------------------------------
BR Malls Participacoes SA said EI Brazil Investments LLC sold 18.2
million of the company's common shares in an auction, Robin
Stringer at Bloomberg News reports, citing a regulatory filing.
According to the report, the shares sold are equal to 9% of the
company's total stock.
Headquartered in Rio de Janeiro, Brazil, BR Malls Participacoes
S.A. -- http://www.brmalls.com.br-- is the largest integrated
shopping mall company in Brazil with a portfolio of 34 malls,
representing 985.2 thousand square meters in total Gross Leasable
Area (GLA) and 429.1 thousand square meters in owned GLA.
* * *
As reported in the Troubled Company Reporter-Latin America on
October 14, 2009, Fitch Ratings affirmed the ratings of
BRMALLS Participacoes S.A.:
-- foreign currency issuer default rating at 'BB-';
-- local currency issuer default rating at 'BB-';
-- long-term national scale rating at 'A(Bra)';
-- US$175 million perpetual notes at 'BB-'.
BROOKFIELD INCORPORACOES: 2ndQ Contracted Sales Totals BRL1.3BB
---------------------------------------------------------------
Brookfield Incorporacoes SA reported its preliminary unaudited
operating results for the second quarter and first half of 2010.
Contracted sales in the second quarter of 2010 totaled R$1.3
billion, a 120.8% improvement over the same quarter of 2009. In
the first six months of 2010 contracted sales reached R$1.8
billion, a 107.7% growth when compared to the first half of 2009.
In the first half of 2010, we sold 5,137 units, a 76.5% upturn
over the 2,910 units sold in the first half of 2009.
The residential segment accounted for 51.5% of total contracted
sales in the first half of 2010. The office segment accounted for
48.5% of total sales in the first half, mainly due to the sale on
May 31, 2010 of the Company's entire interest in the Faria Lima
project, a Triple A business tower located in Sao Paulo, to the
Victor Malzoni Group, in partnership with a non-financial vehicle
of the BTG Pactual group, for R$600.6 million, equivalent to
approximately R$17.7 thousand per square meter. The project is
expected to be concluded in October 2011. Another highlight was
the DF Century Plaza project in the Federal District, which
recorded sales of R$198 million in the first half of 2010.
In the second quarter of 2010, the largest share of contracted
sales, 95.0%, came from projects under construction and launching
phase, while the remaining 5.0% came from the sale of units
already concluded. Sao Paulo, Rio de Janeiro and the Midwest
accounted for 61.5%, 12.9% and 24.8% of the contracted sales,
respectively. The Company will continue to focus its operations
on these markets, as well as seeking opportunities in new markets
such as the countryside of the State of Sao Paulo and the South
region of Brazil.
The volume of launches in the first half of 2010 reached R$1.1
billion, a growth of 31.5% when compared to the first half of
2009. Of this total, the Midwest accounted for 71.6%, Sao Paulo
state for 20.5%, Rio de Janeiro state for 6.9% and the South
region for 1.1%. In the first half, we launched 5,243 units,
82.2% more than the 2,877 units launched in the first half of
2009.
Of those developments launched in the first half of 2010, R$889.2
million or 78.9% referred to residential projects, or 62.7% of the
total. Products priced between R$130,000 and R$500,000, targeted
to mid-low and middle income, represented 46.4% in the half
quarter of 2010.
About Brookfield Incorporacoes
Brookfield Incorporacoes SA (former Brascan Residential Properties
SA) is a Brazil-based company engaged in real estate sector. The
Company is the developer of high-end and luxury residential
buildings, houses, as well as office buildings in Sao Paulo and
Rio de Janeiro metropolitan regions. Its operations include land
acquisition, planning, construction, sales, financing, customer
service, design, development and management of real estate
projects targeted at mainstream, luxury homebuyers. The company's
buildings include Reserva de Itauna, Edificio San Francisco,
Chacara de Pinheiros, Time Square and Saint Tropez, among others.
As of June 22, 2009, the Company had its name changed after the
merger of three companies: Brascan Residential, Company and MB
Engenharia. The company's major shareholder is Brookfield Asset
Management. In July 2009, Companhia Energetica de Minas Gerais
95% interest in the company.
* * *
As of July 20, 2010, the company continues to carry Fitch rating's
"BB-" long-term issuer credit ratings.
COMPANHIA DE SANEAMENTO: Approves 5th Issue of Promissory Notes
---------------------------------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP)
approved the 5th issue of promissory notes of the Company for
public distribution, with firm commitment and restricted placement
efforts, in accordance with CVM Instruction 476 of January 16,
2009, in the total amount of R$600 million.
The structuring and distribution process is being conducted by a
syndicate of financial institutions led by HSBC Corretora de
Titulos e Valores Mobiliarios S.A., the other underwriters being
BB - Banco de Investimento S.A. and Santander Corretora de Titulos
e Valores Mobiliarios S.A. The Offering will be targeted
exclusively at qualified investors. It will be presented to a
maximum of 50 qualified investors and the Promissory Notes may be
subscribed by a maximum of 20 qualified investors, as set forth in
Article 3 of CVM Instruction 476.
The Promissory Notes' maturity will be 180 days from their issue
date. The funds raised by the Company through the promissory
notes will be used to settle the financial obligations falling due
in 2010 and 2011.
The Promissory Notes will be paid with the funds to be raised by
the Company through the public issue of Debentures by it, and the
structuring and distribution process will be conducted by the
Underwriters on a firm commitment basis.
About Sabesp
Companhia de Saneamento Basico do Estado de Sao Paulo, a.k.a.
Sabesp (Bovespa: SBSP3; NYSE: SBS) -- http://www.sabesp.com.br
-- is one of the largest water and sewage service providers in
the world based on the population served in 2005. It operates
water and sewage systems in Sao Paulo, Brazil.
* * *
As of July 20, 2010, the company continues to carry Standard and
Poor's "BB" issuer credit ratings. The company also continues to
carry Fitch rating's "BB" issuer default ratings and senior
unsecured rating.
CESP: Names Hudson Calefe as Chief Executive Officer
----------------------------------------------------
Robin Stringer at Bloomberg News reports that Companhia de
Saneamento do Parana (Sanepar) named Hudson Calefe chief executive
officer and Heitor Mello e Silva chief financial officer.
Companhia Energetica de Sao Paulo plans, constructs, and operates
electricity generation and distribution systems in the State of
Sao Paulo, Brazil. The company generates electricity through
hydroelectric plants located on the rivers of Panama, tiete,
paraibuna, and Jaguari.
* * *
As of December 21, 2009, the company continues to carry Moody's
"Ba2" long-term corporate family rating and senior unsecured debt
rating. The company also continues to carry Standard and Poor's
"B" long- term issuer credit rating.
GERDAU SA: Credit Suisse Raises Year-End Target Share Price
-----------------------------------------------------------
Diana Kinch at Dow Jones Newswires reports that Credit Suisse
raised its year-end target share price for Brazilian steelmaker
Gerdau SA on improving demand prospects for their heavy-plate and
long-steel products in the domestic market.
The report notes that Credit Suisse raised Gerdau SA's target
price to BRL35 from BRL34 on the prospect of higher long steel
prices and sale volumes in the Brazilian market and increased
sales at the company's specialty-steel segment. "Long-steel
demand has been accelerating and should support at least two
quarters of strong results for Gerdau in Brazil," the report
quoted Credit Suisse analysts led by Ivan Fadel as saying. "We
expect the drivers for long-steel demand to become more
evident," they added, the report relates.
About Gerdau SA
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 lon
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As of June 23, 2010, the company continues to carry Moody's "Ba1"
long-term corporate family rating and "Ba1" senior unsecured debt
ratings.
USINAS SIDERURGICAS: Credit Suisse Raises Target Share Price
------------------------------------------------------------
Diana Kinch at Dow Jones Newswires reports that Credit Suisse
raised its year-end target share price for Brazilian steelmaker
Usinas Siderurgicas de Minas Gerais SA (Usiminas) on improving
demand prospects for their heavy-plate and long-steel products in
the domestic market.
According to the report, citing Credit Suisse analysts led by Ivan
Fadel, Usiminas' target price was lifted to BRL59 (US$32.98) from
BRL54 previously. The report relates that the analysts cited the
company's revised plan for its iron-ore assets following the
striking of a strategic partnership and an upturn in demand for
heavy steel plates from the local machinery and capital-goods
sector.
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
==========================
AI-EVENT DRIVEN: Creditors' Proofs of Debt Due on August 18
-----------------------------------------------------------
The creditors of AI-Event Driven Strategies Fund, Ltd. are
required to file their proofs of debt by August 18, 2010, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on June 24, 2010.
The company's liquidators are:
Figaro Advisors, Ltd
Fabian Schonenberg
Andrea Shakir
Telephone: (441) 295-5588
Facsimile: (441) 295-5578
Figaro Advisors, Ltd 2 Reid Street
Hamilton HM 11, Bermuda
AI-TACTICAL TRADING: Creditors' Proofs of Debt Due on August 18
---------------------------------------------------------------
The creditors of AI-Tactical Trading Strategies Fund, Ltd. are
required to file their proofs of debt by August 18, 2010, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on June 24, 2010.
The company's liquidators are:
Figaro Advisors, Ltd
Fabian Schonenberg
Andrea Shakir
Telephone: (441) 295-5588
Facsimile: (441) 295-5578
Figaro Advisors, Ltd 2 Reid Street
Hamilton HM 11, Bermuda
ARUMON OFFSHORE: Creditors' Proofs of Debt Due on August 23
-----------------------------------------------------------
The creditors of Arumon Offshore Fund, Ltd are required to file
their proofs of debt by August 23, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on June 29, 2010.
The company's liquidator is:
DMS Corporate Services Ltd.
Bernadette Bailey-Lewis
Telephone: (345) 946 7665
Facsimile: (345) 946 7666
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
BLUETRACK ASSET: Creditors' Proofs of Debt Due on August 30
-----------------------------------------------------------
The creditors of Bluetrack Asset Funding Limited are required to
file their proofs of debt by August 30, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on July 1, 2010.
The company's liquidator is:
Lisa Clarke
c/o Jane Fleming
Telephone: (345) 945-2187/ (345) 945-2197
PO Box 30464, Grand Cayman KY1-1202
Cayman Islands
BROOKLINE AVENUE: Creditors' Proofs of Debt Due on August 19
------------------------------------------------------------
The creditors of Brookline Avenue Offshore Fund, Ltd. are required
to file their proofs of debt by August 19, 2010, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on June 22, 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
DB MARCASSIN: Creditors' Proofs of Debt Due on August 20
--------------------------------------------------------
The creditors of DB Marcassin (Cayman) Holdings Limited are
required to file their proofs of debt by August 20, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on July 5, 2010.
The company's liquidator is:
Jeremy Simon Spratt
KPMG LLP 8 Salisbury Square London
EC4Y 8BB United Kingdom Contact
c/o Jacqueline Edwards
Telephone: +44 (0) 20 7311 8563
Facsimile: +44 (0) 20 7694 3533
KPMG P.O. Box 493, Grand Cayman KY1-1106
Cayman Islands
FAO: David Thacker
Telephone: 345-949-4800
Facsimile: 345-949-7164
HARMONY ORACLE: Commences Liquidation Proceedings
-------------------------------------------------
Harmony Oracle Asia Partners Limited commenced liquidation
proceedings on June 29, 2010.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Clifford Louie
c/o Maples and Calder Attorneys-at-law
PO Box 309, Ugland House, Grand Cayman KY1-1104
Cayman Islands
HYUNDAI CAPITAL: Creditors' Proofs of Debt Due on August 19
-----------------------------------------------------------
The creditors of Hyundai Capital Auto Funding IV Limited are
required to file their proofs of debt by August 19, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on June 28, 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
MITRA CORP: Creditors' Proofs of Debt Due on August 23
------------------------------------------------------
The creditors of Mitra Corp. are required to file their proofs of
debt by August 23, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 23, 2010.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
NETHERFIELD INVESTMENTS: Creditors' Proofs of Debt Due on Aug. 6
----------------------------------------------------------------
The creditors of Netherfield Investments Limited are required to
file their proofs of debt by August 6, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on June 30, 2010.
The company's liquidator is:
Edward Lavelle
HSBC Guyerzeller Trust Company AG
5 Rue Alfred Vincent
PO Box 2019, CH-1211
Geneva 1 Switzerland
c/o Philip C. Pedro
HSBC International Trustee Limited
Compass Point, 9 Bermudiana Road
Hamilton HM 11, Bermuda
Telephone: (441) 299-6482
Facsimile: (441) 299-6526
OAKTREE INVESTMENTS: Creditors' Proofs of Debt Due on August 10
---------------------------------------------------------------
The creditors of Oaktree Investments Ltd. are required to file
their proofs of debt by August 10, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 25, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949-3344
Facsimile: (345) 949-2888
P.O. Box 2510
Grand Cayman KY1-1104 Cayman Islands
SITHE GLOBAL: Creditors' Proofs of Debt Due on August 19
--------------------------------------------------------
The creditors of Sithe Global Ghana Holdings, Ltd. (Caymans) are
required to file their proofs of debt by August 19, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on June 29, 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
TCM SPECTRUM: Creditors' Proofs of Debt Due on August 18
--------------------------------------------------------
The creditors of TCM Spectrum Fund (Offshore) II Ltd. are required
to file their proofs of debt by August 18, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on July 2, 2010.
The company's liquidator is:
Reid Services Limited
Clifton House, 75 Fort Street
PO Box 1350, Grand Cayman KY1-1108
Cayman Islands
TCM SPECTRUM: Creditors' Proofs of Debt Due on August 18
--------------------------------------------------------
The creditors of TCM Spectrum Fund (Offshore) Ltd. are required to
file their proofs of debt by August 18, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on July 2, 2010.
The company's liquidator is:
Reid Services Limited
Clifton House, 75 Fort Street
PO Box 1350, Grand Cayman KY1-1108
Cayman Islands
TREETOP GLOBAL: Creditors' Proofs of Debt Due on August 19
----------------------------------------------------------
The creditors of Treetop Global Long/Short Meridian Fund Inc. are
required to file their proofs of debt by August 19, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on June 23, 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
TRICOM LATINOAMERICA: Creditors' Proofs of Debt Due on August 16
----------------------------------------------------------------
The creditors of Tricom Latinoamerica, S.A. are required to file
their proofs of debt by August 16, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 21, 2010.
The company's liquidator is:
Scot Fischer
Scot Fischer 1 North Federal Highway
Suite 400 Boca Raton
Florida 33432, USA
Telephone: 1-561-953-4164
TUSCAN CAYMAN: Creditors' Proofs of Debt Due on August 19
---------------------------------------------------------
The creditors of Tuscan Cayman GP, Ltd. are required to file their
proofs of debt by August 19, 2010, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on July 1, 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
UBS JAPAN: Creditors' Proofs of Debt Due on August 19
-----------------------------------------------------
The creditors of UBS Japan Opportunities Master Limited are
required to file their proofs of debt by August 19, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on June 25, 2010.
The company's liquidator is:
Stuart Sybersma
c/o Jennifer Chailler
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949-7500
Facsimile: (345) 949-8258
e-mail: jchailler@deloitte.com
UBS JAPAN: Creditors' Proofs of Debt Due on August 19
-----------------------------------------------------
The creditors of UBS Japan Opportunities Limited are required to
file their proofs of debt by August 19, 2010, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on June 25, 2010.
The company's liquidator is:
Stuart Sybersma
c/o Jennifer Chailler
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949-7500
Facsimile: (345) 949-8258
e-mail: jchailler@deloitte.com
WP X: Creditors' Proofs of Debt Due on August 19
------------------------------------------------
The creditors of WP X Investments III Ltd. are required to file
their proofs of debt by August 19, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 2, 2010.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
c/o Mourant Ozannes Attorneys-at-Law JAPF
Telephone: (+1) 345 949-4123
Facsimile: (+1) 345 949-4647; or
Mourant Ozannes Cayman Liquidators Limited
c/o Peter Goulden
Telephone: (+1) 345 949-4123
Facsimile: (+1) 345 949-4647
Mourant Ozannes Harbour Centre
42 North Church Street
P.O. Box 1348, George Town
Grand Cayman KY1-1108, Cayman Islands
===============
C O L O M B I A
===============
BANCOLOMBIA SA: Sells US$620 Million 10-Year Bonds at 6.3%
----------------------------------------------------------
Bancolombia SA raised US$620 million through a 10-year bond sale,
becoming the first company out of Colombia to tap external debt
markets this year to take advantage of a rise in investor interest
in the country's currency and debt securities, Kejal Vyas at Dow
Jones Newswires reports.
According to the report, bankers managing the deal said orders for
the new securities exceeded US$3 billion, allowing the company to
offer a yield at the lower end of where market participants had
anticipated and upsize the deal by US$20 million.
Bank of America Merrill Lynch and J.P. Morgan managed the sale.
The report notes that terms of the Bancolombia deal were:
Amount: US$620 Million
Maturity: July 26, 2020
Coupon: 6.125%
Price: 98.418
Yield: 6.341%
Spread: 337.5 basis points over Treasurys
About Bancolombia S.A.
Bancolombia S.A. is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4\
billion in shareholders' equity as of Sept. 30, 2006. Bancolombia
is the only Colombian company with an ADR level III program in the
New York Stock Exchange.
* * *
As of March 14, 2010, the bank continues to carry Fitch ratings
"BB+" long-term issuer default ratings and subordinate debt
rating. The company also continues to carry short-term foreign
currency issuer default ratings.
PETROECUADOR: To Spend US$1.7 Million to Study Refinery Expansions
------------------------------------------------------------------
Nathan Gill at Bloomberg News reports that Petroecuador will spend
US$1.7 million to study production expansions at its Libertad and
Amazonas refineries.
According to the report, Petroecuador is planning renovations and
expansions to increase capacity at the Amazonas refinery and plans
to upgrade the Libertad refinery to increase oil-derivative
production.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil company
owned by the Ecuador government. It produces crude petroleum and
natural gas.
* * *
As reported in the Troubled Company Reporter-Latin America on
December 28, 2009, Dow Jones Newswires said that Ecuadorian
President Rafael Correa authorized naval forces to extend its
control of Petroecuador until March as more time was needed for an
orderly handover of the company to a new management structure. The
report recalled that Petroecuador was declared in a state of
emergency two years ago, and the navy has been put in charge of
its restructuring.
===========
M E X I C O
===========
CONTROLADORA COMERCIAL: Chapter 15 Case Summary
-----------------------------------------------
Chapter 15 Petitioner: Fernando del Castillo Elorza
Chapter 15 Debtor: Controladora Comercial Mexicana,
S.A.B. de C.V.,
Avenida Revolucion 1780 Modulo 2
Mexico D.F.
Mexico 03730
Colonia San Juan, Mexico
Chapter 15 Case No.: 10-13750
Type of Business: The Debtor is a leading retailer in Mexico which
operates about 215 stores and 75 restaurants.
Chapter 15 Petition Date: July 16, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Stuart M. Bernstein
Debtor's Counsel: Gary Kaplan, Esq.
Fried Frank Harris Shriver & Jacobson
One New York Plaza
New York, NY 10004
Tel: (212) 859-8812
Fax: (212) 859-8583
E-mail: gary.kaplan@ffhsj.com
Estimated Assets: more than US$1 billion
Estimated Debts: more than US$1 billion
The Company did not file a list of creditors together with its
petition.
HIPOTECARIA SU: S&P Junks Counterparty Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its global
and Mexican national scale counterparty credit and senior
unsecured debt ratings on Mexico-based mortgage and construction
lender Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R., to 'CCC'
from 'B-' and to 'mxCCC/mxC' from 'mxBB-/mxB', respectively. The
outlook is negative.
"The downgrade reflects S&P's expectation that HSC's financial
position will weaken further, with liquidity pressures, weak and
declining adjusted capitalization levels, mounting losses, and
continuous deterioration in its asset quality," said Standard &
Poor's credit analyst Arturo Sanchez.
The company's deteriorating financial standing could cause
significant liquidity pressure. S&P currently believe that HSC's
liquidity position of Mexican pesos (MXN) 1.6 billion in cash and
liquid securities, plus MXN300 million from its liquidity line
with Sociedad Hipotecaria Federal S.N.C., is sufficient to cover
its 2010 debt maturities of MXN1.6 billion, between banking, long-
term market debt, and warehousing facilities amortizations.
However, during first-quarter 2011 the company has a
MXN1.5 billion debt burden, for which liquidity pressures will be
significant.
S&P expects HSC's adjusted capitalization to deteriorate even
further, placing it in a very fragile financial position. Despite
the MXN370 million capital injection that occurred on May 4, 2010,
mounting losses resulting from its asset-quality deterioration
continue to weaken HSC's adjusted capital position. S&P currently
believe that its adjusted total equity-to-adjusted assets ratio
could decline to levels close to zero, or even turn negative by
year-end 2010. S&P does not expect fresh capital in the coming
quarters while net losses keep rising. The company has very
limited capability to absorb further losses.
S&P expects mounting losses to remain as the company has not been
able to stabilize its nonperforming assets (past-due loans plus
foreclosed assets). S&P forecast losses at year-end 2010 higher
than those registered during 2009. The company has not returned
to profitability during the past several quarters, reflecting
increasing loan-loss provisions, which continue to consume a
significant part of the company's already weak earnings. This
continues to hurt HSC's internal capital generation.
S&P does not expect the pace of NPAs to stabilize in the short-
term. S&P's base-case expectation is that NPAs could reach more
than 20% during fourth-quarter 2010. This level is higher than
the 16.0% registered as of March 2010 and much higher than the
12.9% year-end 2009 level. S&P's expectation is based on the
impact the economic recession in Mexico has had on the real-estate
industry. Prolonged unemployment in the economy, lower home take-
outs, and household indebtedness, in S&P's view, will continue to
deteriorate asset quality. Although HSC's nonperforming loans'
roll rates are beginning to abate, S&P believes the company will
not be able to stabilize its NPAs for the remainder of 2010. In
addition, HSC's NPA reserve coverage remained low at 41.4%.
The negative outlook reflects the ongoing challenges the company
is facing in the short term in capital, asset quality, earnings,
and liquidity. S&P will reassess the company's financial standing
during fourth-quarter 2010 to determine its liquidity position in
light of its debt maturities for 2011.
GRUMA SAB: Venezuela Studying Joint Venture With Subsidiary
-----------------------------------------------------------
Venezuela Vice President Elias Jaua said that the country is
studying the possibility of creating a joint venture with Gruma,
S.A.B. de C.V. after President Hugo Chavez said that he intends to
nationalize the company's local unit, Molinos Nacionales CA
(Monaca), in May, Daniel Cancel at Bloomberg News reports, citing
El Nacional.
According to the report, the newspaper said that Mr. Jaua said the
government will analyze Gruma SAB's proposal to create the joint
venture for Monaca.
As reported in the Troubled Company Reporter-Latin America on
May 18, 2010, The Latin America Herald Times said that the
Venezuelan government issued an executive order that authorized
the "forced acquisition" of Monaca, a producer of wheat and corn
flour, rice, oil, oats and other basic food products, several of
them subject to price controls. According to the report, the
decree stated that the government must ensure the job security of
Monaca's workers, saying they could be employed by the new state-
run entity. The report related Gruma SAB said that it will demand
that the Venezuelan government provide "prompt, adequate and
effective" compensation for the nationalization of Monaca. The
report, citing a company statement, added that Monaca has always
complied with Venezuelan law, met customers' demand for its
products in a timely manner and even boosted production by 13
percent since November 2009.
About Gruma SAB
Headquartered in Monterrey, Mexico, Gruma, S.A.B. de C.V. --
http://www.gruma.com-- is a corn flour and tortilla producer and
distributor. The company conducts its U.S. and European
operations principally through its subsidiary, Gruma Corporation,
which manufactures and distributes corn flour, packaged tortillas,
corn chips and related products. As of Dec. 31, 2007, Gruma held
approximately 8.62 % of the capital stock of Grupo Financiero
Banorte, S.A.B. de C.V.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 21, 2010, Fitch Ratings affirmed Gruma, S.A.B. de C.V.'s
(Gruma) ratings following the forced sale of its Venezuelan assets
to the government of Venezuela. The ratings have been affirmed
were:
-- foreign currency long-term issuer default rating at 'B+';
-- local currency long-term issuer default rating at 'B+';
-- US$300 million perpetual bonds at 'BB-/RR3'.
=======
P E R U
=======
DOE RUN PERU: Presents 48-Month Payback Plan to Creditors
---------------------------------------------------------
Ryan Dube at Business News Americas reports that Doe Run Peru has
drawn up a 48-month plan to pay back the principal of its US$97
million debt to its creditors.
According to the report, the company would start to make monthly
payments to creditors two months after operations restart at its
polymetallic smelter in La Oroya. The report relates that the
plan involves repaying US$26 million during the remainder of 2010,
US$25 million in 2011 and the remaining US$46 million in 2012.
The company told creditors that payments of the interest will
begin one month after the principal is repaid, the report says.
Business News Americas relates that the company's new business
plan is designed to decrease total liabilities from US$519 million
in 2010 to US$381 million in 2014. The report relates that the
plan projects net sales of US$398 million in 2010, US$1.32 billion
in 2011, US$1.34 billion in 2012, and US$1.14 billion in both 2013
and 2014.
Doe Run Peru's proposal would come into effect if it is formally
accepted by two-thirds of its creditors and once the company is
able to resolve pending issues with the Peruvian government, the
report notes.
Meanwhile, the report says that the company has requested that the
government modify a 1997 privatization agreement that would
protect the firm and its parent company from environmental
lawsuits abroad. The report relates that Doe Run Peru's other
requests are related to the repayment of a more than US$270
million debt to tax agency Sunat and waiving fines from mining
investment regulator Osinergmin. In addition, the company wants
the energy and mines ministry to refrain from applying
environmental standards for air quality in La Oroya until an
environmental cleanup agreement dubbed PAMA is completed, the
report discloses.
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 June 21, 2010, the company continues to carry Moody's bank
financial strength at D- and Fitch Ratings' individual rating at
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.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: China Create JV to Develop Agriculture
--------------------------------------------------------------
Petroleos de Venezuela said that Venezuela and China have agreed
to set up a joint venture to development agriculture projects in
the eastern Orinoco Belt, Latin American Herald Tribune reports.
According to the report, PDVSA will have a 70% stake in the new
entity, while Chinese state-owned firm Heilongjiang Xinliang
Grains & Oils will hold the remaining 30%. The report relates
PDVSA said in a statement that the joint venture will help
"strengthen agri-food sovereignty and security"in Venezuela,
"capitalizing on China's experience in this area."
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+" long-term issuer credit ratings.
As reported in the Troubled Company Reporter-Latin America on
January 25, 2010, Reuters said that Petroleos de Venezuela's total
debt jumped 42% in 2009 after it borrowed heavily to pay off
service company debts and intervene in currency markets. The\
report related that PDVSA said that total outstanding debt rose to
US$21.4 billion from US$15.1 billion the year before. According
to the report, PDVSA built up billions of dollars in debts to
service companies after the 2008 collapse of oil prices.
***********
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 * * *