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/raid1/www/Hosts/bankrupt/TCRLA_Public/100804.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, August 4, 2010, Vol. 11, No. 152 Headlines A R G E N T I N A PETROBRAS ENERGIA: Veolia Eau Wins Water Treatment Contract TELECOM ARGENTINA: To Hold 2Q Earnings Conference Call Today TRANSPORTADORA DE GAS: Incurs ARS22.9 Million Net Loss in 2ndQ * ARGENTINA: Prepares to Make US$2.2 Billion Payment B R A Z I L COSAN SA: Ethanol Sales Outside Brazil Fell 80% EVEN CONSTRUTORA: Shareholders May Sell Stake GOL LINHAS: Crew Plans 24-Hour Strike on August 13 Over Pay TAM SA: To Open Back Office in Hong Kong USINAS SIDERURGICAS: Banco BTG Cuts "Buy" Rating to "Neutral" C A Y M A N I S L A N D S ADF CAPITAL: Creditors' Proofs of Debt Due on September 3 BANCO PRIVADO: Grand Court Enters Wind-Up Order BLUE EAGLE: Creditors' Proofs of Debt Due on August 31 CORRELL CAPITAL: Creditors' Proofs of Debt Due on September 7 EQUITYSTAR GLOBAL: Creditors' Proofs of Debt Due on September 9 EQUITYSTAR GLOBAL: Creditors' Proofs of Debt Due on September 9 GALLEON ASIA: Creditors' Proofs of Debt Due on September 2 GALLEON QUANTITATIVE: Creditors' Proofs of Debt Due on September 2 GDF MANAGEMENT: Creditors' Proofs of Debt Due on August 27 GLACIER BAY: Creditors' Proofs of Debt Due on August 23 MARATHON RESOURCE: Creditors' Proofs of Debt Due on September 2 MARATHON RESOURCE: Creditors' Proofs of Debt Due on September 2 METAL OVERSEAS: Creditors' Proofs of Debt Due on August 24 NORTH STREET: Creditors' Proofs of Debt Due on September 2 NORTH STREET: Creditors' Proofs of Debt Due on September 2 R-ONE FUSHIMI: Creditors' Proofs of Debt Due on September 2 R-ONE NAKAGAWA: Creditors' Proofs of Debt Due on September 2 SKYIMPACT GP: Creditors' Proofs of Debt Due on September 2 TIAHUANACO LIMITED: Creditors' Proofs of Debt Due on September 2 WOORI ABSOLUTE: Creditors' Proofs of Debt Due on September 2 D O M I N I C A N R E P U B L I C AUTOPISTAS DEL NORDESTE: Fitch Affirms 'B' Rating on Senior Notes M E X I C O MEXICANA AIRLINES: Files for Bankruptcy in Mexico & U.S. * MEXICO: Moody's Cuts Rating on Atizapan de Zaragoza to 'Ba2' N I C A R A G U A * NICARAGUA: IDB Approves US$40 Million Loan V E N E Z U E L A PETROLEOS DE VENEZUELA: Forms Strategic Alliance With CVG - - - - - ================= A R G E N T I N A ================= PETROBRAS ENERGIA: Veolia Eau Wins Water Treatment Contract ------------------------------------------------------------- French utility Veolia Environnement SA said its water unit Veolia Eau was awarded a water treatment contract for the offshore oil production at the Petrobras Energia SA Papa Terra P63 project, offshore Brazil, by QUIP SA, Geraldine Amiel at Dow Jones Newswires reports. According to the report, QUIP is the Brazilian company appointed by oil major Petrobras to manage the supply and integration of the floating production, storage and offloading unit. The report relates that the contract represents total estimated revenue of around EUR30 million for Veolia Water. About Petrobras Energia Headquartered in Buenos Aires, Argentina, Petrobras Energia S.A. -- http://www.petrobras.com.ar/-- is an integrated company engaged in energy sector. The company's activities are divided into four segments. The oil and gas exploration and production segment is responsible for the acquisition, exploration and maintenance of oil and gas reserves, as well as the production of fuels. The refining and distribution segment is engaged in the refining of crude oils and their processing into lubricants. It is represented by Refineria del Norte SA and Empresa Boliviana de Refinacao SA. The petrochemistry segment is engaged in the production of styrene, polystyrene, rubber, fertilizers and polypropylene through Innova SA and Petroquimica Cuyo SA. The gas and energy segment is involved in the production of gas and electric energy, and energy transportation through Transportadora de Gas del Sur SA. The company also operates in Bolivia, Ecuador, Peru, Colombia and Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on May 10, 2010, Standard & Poor's Ratings Services affirmed its 'B+' ratings on Argentinean oil and gas company Petrobras Energia S.A. following the announcement on the sale of refining and marketing assets. The outlook is stable. TELECOM ARGENTINA: To Hold 2Q Earnings Conference Call Today ------------------------------------------------------------ Telecom Argentina will hold its second quarter 2010 earnings conference call today, August 4, 2010, at 11:00 a.m. ET to 12:00 p.m. Buenos Aires at: http://www.videonewswire.com/event.asp?id=70843 The call will be archived at http://www.telecom.com.ar Contact: Solange Barthe Dennin Telephone: (5411) 4968-3752 Email: sbarthe@ta.telecom.com.ar About Telecom Argentina Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone- related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. * * * As of January 12, 2010, the company continues to carry Standard and Poor's "B-" long-term foreign issuer credit rating and "B" long-term local issuer credit rating. The company also continues to carry Fitch Ratings' "B" long-term foreign currency issuer default rating; "B+" long-term local issuer default rating; and "B" senior unsecured debt rating. TRANSPORTADORA DE GAS: Incurs ARS22.9 Million Net Loss in 2ndQ -------------------------------------------------------------- Transportadora de Gas del Sur SA reported a second-quarter net loss of ARS22.9 million (US$5.8 million), compared with a profit of ARS24.6 million a year earlier, Taos Turner at Dow Jones Newswires reports. The report relates that company revenue was ARS384.8 million in the second quarter, up from ARS337.9 million in the same period a year ago. According to the report, TGS said revenue was up in the second quarter due to a tariff increase, but the company posted a loss because there's a delay before it will actually be able to receive that extra revenue. The company, the report notes, said that a 20% tariff increase came into effect in December 2009, which helped push up revenue in the second quarter. Nevertheless, most of the increase "will be billed and cashed in the long-term in monthly installments with no interest," TGS said, the report relates. As a result, the report says, it took a financial charge of ARS54.6 million during the quarter because of the time it will take to actually receive the cash from the higher prices. About Transportadora de Gas Headquartered in Buenos Aires, Argentina, Transportadora de Gas del Sur SA -- http://www.tgs.com.ar/-- is a transporter of natural gas; having a 7,419-kilometer (4,610 miles) pipeline system with a firm contracted capacity of 62.5 million cubic meters per day (MMm3/d) with an installed power of 538.220 horsepower. Substantially all of Transportadora de Gas' capacity is subscribed for under firm long-term transportation contracts. Transportadora de Gas is also a processor of natural gas and marketer of natural gas liquids in Argentina. The company operates the General Cerri gas processing complex and the associated Galvan loading and storage facility in Bahia Blanca in the Buenos Aires Province where natural gas liquids are separated from gas transported through the Company's pipeline system and stored for delivery. Transportadora de Gas is engaged in midstream activities and the provision of telecommunication services in Argentina. The company operates the largest pipeline transmission system in Argentina, which accounts for roughly 60% of the country's total natural gas consumption. * * * As of May 11, 2010, the company continues to carry Moody's "B2" long-term rating and senior unsecured debt rating. The company also continues to carry Fitch rating's "B" long-term FC issuer default and senior unsecured debt ratings and "B+" long-term LC issuer default ratings. * ARGENTINA: Prepares to Make US$2.2 Billion Payment ---------------------------------------------------- Argentine dollar-denominated bonds due in 2012 are being recommended by Bank of America Corp. as the government prepares to make a US$2.2 billion payment, leaving 25% of the total issue outstanding, Bloomberg News reports. According to the report, Bank of America said prices for longer- term bonds may decline as the government issues more of the securities when it taps overseas debt markets for the first time since its default in 2001. The reports relates that the supply of Argentine notes due in 2033 and 2035 will also increase as investors who participated in Argentina's US$18.3 billion debt restructuring in June receive the securities in exchange for defaulted notes. "I don't think Argentina is going to default or take the risk of defaulting in the near term -- this is a safe allocation of capital in terms of Argentine credit," the report quoted Laura Tribuno, an emerging markets trader who buys and sells Argentine debt with RBC Capital Markets, a unit of Canada's biggest bank, in New York, as saying. The report notes Economy Minister Amado Boudou said in June that the government aimed to sell as much as US$1 billion of bonds due in 2017 on international markets once yields fell below 10%. Meanwhile, the report relates Siobhan Morden, head of Latin America debt strategy with RBS Securities Inc., said that Argentina may follow the payment with the sale of 2017 bonds in a bid to "capture the reinvestment flow." The government is unlikely to swap the 2012 bonds for debt with longer maturities, Ms. Morden told the news agency in a phone interview. "This bond will be paid and won't be exchanged," she added. Argentina, the report notes, made an early payment of US$33.7 million to holders of the 2012 bonds in June 2009 as slowing economic growth and a lack of access to international debt markets increased the chances of default. The government, the report notes, used US$2.7 billion in central bank reserves, which are at an all-time high of $51.1 billion, to pay off debt due this year. * * * As of July 2, 2010, the Argentina republic continues to carry Moody's "Caa1" country ceiling long-term foreign bank deposit rating and "B2" country ceiling long-term foreign currency debt ratings. The company also continues to carry Standard and Poor's "B-" currency long-term debt ratings and "C" currency short-term debt ratings. =========== B R A Z I L =========== COSAN SA: Ethanol Sales Outside Brazil Fell 80% ----------------------------------------------- Louise Downing at Bloomberg News reports that Cosan S.A. Industria & Comercio's sales of ethanol outside Brazil fell 80% from a year ago in the fiscal first quarter ended in June. According to the report, citing the company's preliminary results, Cosan SA sold 49 million liters of ethanol outside its local market in the first quarter of its 2011 fiscal year, which ends in March, from 244 million liters for the same period last year. The report relates that this is a drop of some 195 million liters. "Brazilian ethanol exports continue to be minimal this year as the U.S. ethanol blend is being sourced locally, and Brazilian ethanol demand locally has decreased in the period, due to higher local prices," said Camila Ramos, an industry analyst at Bloomberg New Energy Finance in London. The report notes that Cosan SA sold less ethanol and sugar this quarter than a year ago. The report relates that revenue for sugar climbed 27%, while revenues for ethanol declined 26%. According to Bloomberg, a spokesman from Cosan declined to provide any reason behind the figures until the results are published in full on Aug. 13. About Cosan S.A. Cosan S.A. Industria e Comercio is a low-cost Brazilian sugar and ethanol producer with a leading position in the global sugar and ethanol industry. Cosan is also the fourth largest fuel distributor in Brazil. * * * As of June 21, 2010, the company continues to carry Moody's "Ba3" long-term rating, long-term corporate family rating, and senior unsecured debt rating. The company also continues to carry Standard and Poor's "BB-" long-term issuer credit ratings. EVEN CONSTRUTORA: Shareholders May Sell Stake --------------------------------------------- Even Construtora e Incorporadora SA's shareholders Terepins family and Spinnaker fund are seeking to sell their stakes in the Brazilian homebuilder, Telma Marotto at Bloomberg News reports, citing Valor Economico newspaper. According to the report, the newspaper said that the partners are in advanced talks with potential buyers, including Brookfield Incorporacoes SA and Gafisa SA. The report relates Valor said that Banco Itau BBA is helping the shareholders in the transaction. Valor newspaper, the report notes, said that members of the Terepins family hold 11% of the company's shares, while Spinnaker has a 21% stake. An unnamed spokeswoman said that Even denied the sale. About Even Construtora Even Construtora e Incorporadora SA is a holding company involved in the real estate sector. The Company is principally involved in the acquisition, construction and sale of residential real estate properties. * * * As of August 3, 2010, the company continues to carry Fitch Rating's "B+" long-term issuer default ratings. GOL LINHAS: Crew Plans 24-Hour Strike on August 13 Over Pay ----------------------------------------------------------- Gol Linhas Aereas Inteligentes SA pilots and cabin crew plan to strike for 24 hours on August 13 for a 25% pay rise, changes in shift and better health insurance plans, Laura Price at Bloomberg News reports, citing Folha de S. Paulo. According to the report, the newspaper said that Gol Linhas had to cancel flights this week because of an agreement with the National Union of Aeronauts not to allow crew to exceed a certain number of working hours. The report, citing Infraero, the country's airport authority, relates that about 56% of Gol Linhas's domestic flights were delayed. The report notes the newspaper said that Infraero said the delays were caused by a new shift system, which led to a shortage of available crew members. About Gol Linhas Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. -- http://www.voegol.com.br/-- through its subsidiary, GOL Transportes Aereos S.A., provide airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on July 16, 2010, Moody's Investors Service raised its Corporate Family and senior unsecured ratings for Gol Linhas Aereas Inteligentes S.A. and Gol Finance to "Ba3" from "B1" reflecting improved operating performance and financial flexibility especially following the recent debt issuance. The ratings outlook is stable. Ratings upgraded with a stable outlook: Issuer: Gol Finance -- 7.5% US$225 million senior unsecured notes due 2017: Ba3 -- 8.75% US$200 million senior unsecured perpetual notes: Ba3 Issuer: Gol Linhas Aereas Inteligentes S.A. -- Corporate Family Rating: Ba3 TAM SA: To Open Back Office in Hong Kong ---------------------------------------- TAM SA is going to open a back office in Hong Kong by the end of this year to promote the growth of its activities in Asia. The company currently has representative offices in South Korea, India, Japan, Thailand and Taiwan. Its new commercial structure will also include a management office in China (Beijing and Shanghai) and in Japan (Tokyo). TAM serves several destinations in the Asian Continent by codeshare agreements. According to TAM SA's Commercial and Planning Vice-President, Paulo Castello Branco, the company's revenue in the Asian market is expected to increase over the next years, based on the new structure in Asia and its local representatives' effort, as well as TAM SA's entry into the Star Alliance. The activities to be carried out in Hong Kong will be managed by Thierry Curey, currently business manager in Europe. The new office will be the third international back office, besides similar facilities in Europe (Madrid) and in the United States (Miami). The business structure that TAM adopted is part of its expansion strategy in the international market. In addition to the back offices, the company has representative offices in markets not served by its own flights, also called offline bases. "We firmly believe in our business model. We had 18 offline bases out of Brazil in the end of 2009 and are now present in 51 markets in Europe, Asia and the Middle East, in addition to the offices in countries served by our own flights", says Mr. Castello Branco. About TAM SA Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * As of May 20, 2010, the company continues to carry Standard and Poor's "B+" long-term issuer credit ratings. The company also continues to carry Fitch Rating's "BB-" long-term issuer default ratings. USINAS SIDERURGICAS: Banco BTG Cuts "Buy" Rating to "Neutral" ------------------------------------------------------------- Alexander Ragir at Bloomberg News reports that Banco BTG Pactual cut the Usinas Siderurgicas de Minas Gerais's "buy" rating to "neutral" on August, 2, 2010, citing "worsening earnings momentum" in the second half of the year. According to the report, Brazil Trade Ministry said it may lower duties on some imported steel plates. The report relates that Brazil has lowered for six months import duties on some steel plates used to produce capital goods for the petrochemicals industry because of supply shortages. "While results were in line with estimates, the outlook for the coming quarters appears challenging, with declining volumes in the domestic market and higher costs," wrote BTG analysts Edmo Chagas and Antonio Heluany in a note obtained by the news agency. International steel prices will likely rise in the second half of the year, while Brazil steel prices are "less favorable" and Usiminas will be hurt most by this given its dependence on sales within the country, the analysts said, the report relates. The analysts, the report adds, said that investors should switch from Usiminas to other "more attractive" metals producers, including Vale SA, Gerdau SA, or Cia. Siderurgica Nacional SA. About Usinas Siderurgicas 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 ========================== ADF CAPITAL: Creditors' Proofs of Debt Due on September 3 --------------------------------------------------------- The creditors of ADF Capital Management Ltd are required to file their proofs of debt by September 3, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 8, 2010. The company's liquidator is: DMS Corporate Services Ltd. c/o 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 BANCO PRIVADO: Grand Court Enters Wind-Up Order ----------------------------------------------- On July 9, 2010, the Grand Court of Cayman Islands entered an order that voluntarily winds up the operations of Banco Privado Portugues (Cayman) Limited. The company's liquidators are: Ian Stokoe c/o Elizabeth Osborne Telephone: (345) 914-8686 Facsimile: (345) 945-4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands BLUE EAGLE: Creditors' Proofs of Debt Due on August 31 ------------------------------------------------------ The creditors of Blue Eagle Re are required to file their proofs of debt by August 31, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 12, 2010. The company's liquidator is: Alan Noskow Alan M. Noskow Patton Boggs LLP 8484 Westpark Drive, 9th Floor McLean Virginia 22102 United States of America CORRELL CAPITAL: Creditors' Proofs of Debt Due on September 7 ------------------------------------------------------------- The creditors of Correll Capital Caymans Limited are required to file their proofs of debt by September 7, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 6, 2010. The company's liquidator is: DMS Corporate Services Ltd. c/o 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 EQUITYSTAR GLOBAL: Creditors' Proofs of Debt Due on September 9 --------------------------------------------------------------- The creditors of Equitystar Global Partners Master Fund Ltd are required to file their proofs of debt by September 9, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 15, 2010. The company's liquidator is: DMS Corporate Services Ltd. c/o 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 EQUITYSTAR GLOBAL: Creditors' Proofs of Debt Due on September 9 --------------------------------------------------------------- The creditors of Equitystar Global Partners Ltd are required to file their proofs of debt by September 9, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 15, 2010. The company's liquidator is: DMS Corporate Services Ltd. c/o 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 GALLEON ASIA: Creditors' Proofs of Debt Due on September 2 ---------------------------------------------------------- The creditors of Galleon Asia Macro Fund, Ltd. are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 9, 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 GALLEON QUANTITATIVE: Creditors' Proofs of Debt Due on September 2 ------------------------------------------------------------------ The creditors of Galleon Quantitative Multi-Strategy Fund, Ltd. are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 9, 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 GDF MANAGEMENT: Creditors' Proofs of Debt Due on August 27 ---------------------------------------------------------- The creditors of GDF Management (Cayman) Limited are required to file their proofs of debt by August 27, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 12, 2010. The company's liquidator is: Noel Webb c/o Krysten Lumsden Telephone: (345) 814-7366 Facsimile: (345) 945-3902 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands GLACIER BAY: Creditors' Proofs of Debt Due on August 23 ------------------------------------------------------- The creditors of Glacier Bay 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 wind-up proceedings on June 4, 2010. The company's liquidator is: Ogier c/o Shameer Jasani Telephone: (345) 815-1802 Facsimile: (345) 949-9877 c/o Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands MARATHON RESOURCE: Creditors' Proofs of Debt Due on September 2 --------------------------------------------------------------- The creditors of Marathon Resource Partners II, Ltd. are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 30, 2010. The company's liquidator is: Walkers Corporate Services Limited Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands MARATHON RESOURCE: Creditors' Proofs of Debt Due on September 2 --------------------------------------------------------------- The creditors of Marathon Resource Partners IV - Precious Metals Fund, Ltd. are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 30, 2010. The company's liquidator is: Walkers Corporate Services Limited Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands METAL OVERSEAS: Creditors' Proofs of Debt Due on August 24 ---------------------------------------------------------- The creditors of Metal Overseas S.A. are required to file their proofs of debt by August 24, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 14, 2010. The company's liquidator is: Nicolas Burr San Francisco No. 4760, San Miguel Santiago, Chile Walkers Barnaby Gowrie e-mail: Barnaby.gowre@walkersglobal.com Telephone: +1 345 9146365 Walkers, 87 Mary Street George Town Grand Cayman KY1-9001 Cayman Islands NORTH STREET: Creditors' Proofs of Debt Due on September 2 ---------------------------------------------------------- The creditors of North Street Referenced Linked Notes, 2003-2A Limited are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 13, 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 NORTH STREET: Creditors' Proofs of Debt Due on September 2 ---------------------------------------------------------- The creditors of North Street Referenced Linked Notes 2002-1A Limited are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 12, 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 R-ONE FUSHIMI: Creditors' Proofs of Debt Due on September 2 ----------------------------------------------------------- The creditors of R-One Fushimi Holdings are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 13, 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 R-ONE NAKAGAWA: Creditors' Proofs of Debt Due on September 2 ------------------------------------------------------------ The creditors of R-One Nakagawa Holdings are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 13, 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 SKYIMPACT GP: Creditors' Proofs of Debt Due on September 2 ---------------------------------------------------------- The creditors of Skyimpact GP Co. are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 13, 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 TIAHUANACO LIMITED: Creditors' Proofs of Debt Due on September 2 ---------------------------------------------------------------- The creditors of Tiahuanaco Limited are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 8, 2010. The company's liquidator is: Graham Robinson c/o Charmaine Cayasso Telephone: (345) 949-7576 Facsimile: (345) 949-8295 P.O. Box 897, Windward 1, Regatta Office Park Grand Cayman KY1-1103, Cayman Islands WOORI ABSOLUTE: Creditors' Proofs of Debt Due on September 2 ------------------------------------------------------------ The creditors of Woori Absolute Asia Multi-Strategy Fund are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 13, 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 ================================== D O M I N I C A N R E P U B L I C ================================== AUTOPISTAS DEL NORDESTE: Fitch Affirms 'B' Rating on Senior Notes ----------------------------------------------------------------- Fitch Ratings affirms Autopistas del Nordeste, C. por A.'s underlying long-term senior secure notes at 'B'. The notes mature in 2026, secured by the Autopistas del Nordeste tolls revenues and supported by the minimum revenue guarantee program provided by the Government. The Rating Outlook is Stable. The rating action reflects: i) the Government's commitment to honoring the MRG, which provides the required liquidity to the structure in order to cover any cash shortfall for debt service; ii) the financial guarantee provided by the Multilateral Investment Guarantee Agency; iii) Congress approval on concessionaire's Financial Closing records; iv) ability to modify tariffs without regulatory interference from the Government of Dominican Republic; and vi) a letter of credit of US$20 million at the end of 2009 that has not been utilized since the GODR prompt provision of the required financial support. Credit concerns focus on: i) strong dependence on MRG to service debt; ii) traffic volumes below Independent Engineer's pessimistic projections; iii) traffic is forecasted to be low in 2011; iv) willingness and ability of GODR to continue honouring the MRG until traffic levels provide sufficient revenues to satisfy debt service; and v) exposure to foreign exchange fluctuations. So far the GODR has complied with their obligations to ensure the MRG of the project; however, due to the track record of the GODR in honouring debt with suppliers, contractors and other local currency obligations, Fitch considers the MRG protection of the project consistent with the 'B' rating. In addition, as MIGA political risk insurance covers up to 51% of the value of the bonds, according to Fitch methodology regarding partial guarantee, this is consistent with one-notch benefit from the standalone basis. Since the opening of all three toll road plazas in June 2008, traffic volumes and revenues in Autopistas del Nordeste have been significantly below projections. Thus, increasing reliance on the MRG provided by the Government of Dominican Republic, constrains the rating at 'B'. As of May 2010, although traffic continues to be lower than the IE estimations, toll road averaged 3,300 vehicles per day at the first toll plaza, 2,400 at the second toll plaza and 2,050 at the third toll plaza. When compared on a year-over-year basis with 2009, monthly traffic is slightly growing, which is consistent in toll road projects during ramp-up periods. Fitch believes that unless there is significant growth in traffic in the following years, the project will continue to be highly dependent on MRG to amortize principal payments that start in 2013 through maturity after the interest-only period. The availability of the MRG is commensurate with the Stable Rating Outlook of 2010. Going forward, Fitch expects the MRG to remain the main source of revenue source for at least the next three years, as traffic data does not contain substantial elements to project higher performance within the same period. While current hotel capacity expansion and higher industry activity are forecasted to improve traffic volumes for the coming years, Fitch will continue to monitor traffic level trends, industry growth, and the willingness and ability of the Government to honour its obligation. =========== M E X I C O =========== MEXICANA AIRLINES: Files for Bankruptcy in Mexico & U.S. -------------------------------------------------------- Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on Monday. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. CMA filed a "Concurso Mercantil" or insolvency petition with a Mexico City district court to ensure the continued operation of the Company. CMA filed for Chapter 15 petition to obtain U.S. bankruptcy protection and injunction relief in both countries. Mexicana listed debt of more than US$1 billion in its bankruptcy petition, according to Dow Jones Daily Bankruptcy Review. The Associated Press reports the airline owes Mexican banks at least MXN2.5 billion (US$199 million), Chief Executive Officer Manuel Borja said at a news conference Monday. Mr. Borja didn't say what the company's total debt is. William Heuer, Esq., a partner at Duane Morris' New York office, is representing Mexicana in the matter. In a statement, CMA said its costs, particularly those associated to flight crews are well above industry average; such costs must be brought into line with market conditions to allow the Company to reach a restructuring agreement with its creditors to secure its financial viability well into the future. Since changing hands in 2006, CMA has made aggressive efforts to boost productivity by expanding and renewing fleet, enhancing its route network, as well as introducing state of the art technologies. These measures have translated into improved operating efficiency, savings in excess of US$800 million and has contributed resources superior to US$350 million. Although these initiatives helped offset a sharp drop in demand for air services due to the global financial crisis and the AH1N1 flu epidemic of 2009, the Company's current cost structure makes it financially non-viable. Consequently, CMA is negotiating new collective labor contracts with its unions, and is confident they will result in a positive outcome enabling the Company to continue offering its customers world-class services at competitive fares. Proposals to Labor Groups Also on Monday, Mexicana said despite of investments of over US$300 million in credit lines and resources put up by its parent, Nuevo Grupo Aeronautico and its subsidiaries, MexicanaClick and MexicanaLink, its current financial situation is no longer tenable. Concerted efforts have been made over the last four and a half years to restructure costs, efforts that have translated into savings of some US$800 million as a direct result of investment in IT systems, new routes and more efficient aircraft, but have not been sufficient to offset its crew costs. Although the airline's operating costs excluding crew labor costs are 30% lower than the average of legacy airlines in the United States, these non competitive labor costs are the main reason why the company has continued to suffer losses, to the extent that it is now financially non-viable. According to company sources, CMA's pilots earn 49% more than the average wage paid by legacy airlines in the United States and 185% more than the average pilots flying Airbus A320s for other Mexican low cost airlines like Volaris or Interjet. Likewise, Mexicana Airlines flight attendants earn 32% more than the U.S. average and 165% more than their Mexican counterparts employed by the same airlines. Mexicana said that, numbers confirm, that if its collective contracts had been more competitive, instead of registering losses of US$350 million from 2007 to date, the company would have posted profits of US$350 million, illustrating that CMA does indeed have the potential to be a profitable, financially viable carrier. In light of the current situation, CMA has presented its pilots' and flight attendants' unions with two alternatives: -- The first is the option to enter into a new collective contract to secure the CMA's long-term financial viability. This would imply accepting cuts of 41% and 39% in wages and fringe benefits for pilots and flight attendants, respectively. This alternative also calls for additional cost-cutting measures, including downsizing 40% of the airline's pilots and flight attendants. On the upside, it incorporates a profit-sharing plan whereby the unions would get a percentage of any operating profits that exceed 5% of the company's total revenues. -- As a second alternative, stockholders have offered to sell CMA to its unions for the token sum of one peso, proving them convinced of the vital role these labor organizations will play in the future of the company. As the only entities capable of turning the situation around, CMA's management have stated that it would be willing to transfer control of the airline to its unions. The transaction would require further and more detailed negotiations with the unions, but in broad terms would require NGA to assume liabilities of US$120 million in bank credit lines, while the unions would have the option of retaining a BANCOMEXT loan for US$80 million or transferring this credit line and its respective sureties to NGA. The unions would also be given a six-month permit for the use of the Mexicana Airlines brand name, among other measures designed to allow for a smooth transition. In response to statements by representatives of the pilots union to the effect that both proposals outlined by CMA would be rejected, the company said that it is time to acknowledge reality, that the paradigm of commercial aviation has changed worldwide and that only airlines that operate at competitive costs can hope to survive and continue flying. Hugo Martin at Los Angeles Times reports that Lizette Clavel Sanchez, the secretary general of Mexicana's flight attendants union, said Tuesday that the airline's employees were willing to keep negotiating with Mexicana, but only in "transparency and without abuse." Ms. Clavel said the airline's contention that Mexicana workers are paid significantly more than those at other airlines in Mexico is like "comparing pears and apples." "Those are low-cost airlines that don't have the same service, technology and flight times we do. Airlines like Volaris or Interjet don't make flights longer than four hours. We have flights that are as long as 16 hours," Ms. Clavel said, according to LA Times. "It is wrong to quantify our salaries that way." Concurso Mercantil The "Concurso Mercantil" is a Mexican legal resource that guarantees the operation of companies that are unable to meet their obligations, while protecting those companies they do business with. Similar to Chapter 11 of the United States Bankruptcy Code and other similar legislations, this recourse grants companies a reasonable timeframe in which to reorganize themselves in an orderly manner while continuing to operate. Under Mexican law, once the insolvency filing has been accepted, the judge will order the Company to continue operating to ensure services are not interrupted and that consumers are not adversely affected. The judge will also appoint an expert to oversee the proceedings up to the conciliation phase, during which CMA will attempt to reach a restructuring agreement with its creditors. Request for TRO Patrick Fitzgerald at Dow Jones Daily Bankruptcy Review reports Mexicana is asking Judge Stuart M. Bernstein of the U.S. Bankruptcy Court in Manhattan to issue a temporary restraining order to bar creditors from seizing its assets in the U.S. According to Dow Jones, Maru E. Johansen, Mexicana's U.S. vice president of legal affairs and corporate affairs, said in court papers a U.S. court order is necessary to block creditors from throwing a wrench in the company's restructuring. "The seizure of even one aircraft, for example, could disrupt Mexicana's global operations and potentially trigger or encourage the subsequent exercise of remedies by other parties," Mr. Johansen said. Dow Jones notes three Mexicana jets were seized on behalf of leasing companies worried about payments in Canada and the U.S. last week. Business as Usual Passengers will not be affected as part of the proceedings, since CMA will continue to render services normally while it restructures its liabilities and brings its costs into line with market conditions. CMA's sister domestic market airlines, MexicanaClick and MexicanaLink, operate independently and will therefore not be affected by the reorganization process. CMA remains committed to its customers, commercial partners and employees, and will keep all parties updated on the progress of such restructuring process. Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/-- is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Duane Morris may be reached at: William C. Heuer DUANE MORRIS LLP 1540 Broadway New York, NY 10036-4086 Telephone: 212-692-1070 Facsimile: 212-208-4521 E-mail: wheuer@duanemorris.com Mexicana's spokesman may be reached at: Adolfo Crespo Telephone: 011 52 1 55. 5448-3296 E-mail: adolfo.crespo@mexicana.com.mx * MEXICO: Moody's Cuts Rating on Atizapan de Zaragoza to 'Ba2' -------------------------------------------------------------- Moody's de Mexico downgraded the issuer rating of the Municipality of Atizapan de Zaragoza to A2.mx (Mexico National Scale) from A1.mx. Moody's Investors Service downgraded the issuer rating of the Municipality of Atizapan de Zaragoza to Ba2 (Global Scale, local currency) from Ba1. At the same time, Moody's also changed the outlook on the issuer ratings to negative from stable. The downgrade of the issuer ratings reflects the recent deterioration of Atizapan's financial performance, on an absolute basis and relative to peers. This deterioration includes: 1) the recording of sizable consolidated fiscal deficits in 2008 and 2009, 2) recent increases in debt metrics that diverge from Moody's previous expectation of a gradual decline in debt burden, and 3) a contraction in liquidity due to increases in accounts payable and decreases in cash. First, following minor cash financing surpluses recorded in 2005 and 2007, equivalent to 3.2% and 0.7% of total revenues, respectively, Atizapan recorded cash financing requirements in 2006, 2008 and 2009, equivalent on average to -15.4% of total revenues, a high level relative to the median of its peers. The sizable requirement recorded in 2008 (-25.4% of total revenues) was driven by a pre-planned expansion of the municipality's capital program (160% annual increase in capital expenditures), while 2009's cash financing requirement of -13.0% was driven by a slowdown in own-source revenues and operating pressures. Second, as a result of these cash financing requirements, Atizapan's net direct and indirect debt reached 43.6% of total revenues in 2009, well above the median of Ba rated Mexican municipalities. Debt service costs (principal and interest payments) reached a very high 9.7% of total revenues in 2009, also well above the median for Ba rated Mexican municipalities. Third, as a result of increases in payables to suppliers and short term borrowings, combined with a substantial reduction in cash reserves, net working capital (current assets less current liabilities) decreased to -5.9% of total expenditures in 2009, from a positive average of 22.2% registered from 2005 to 2008. In 2010, the municipal government also announced a loss of approximately MXN 50 million from investments in high-risk financial instruments contracted by the previous administration. Although this loss is not expected to have mid-term effects on financial results, it represented roughly 5% of 2009 total revenues and will exert further pressure on liquidity. The negative outlook reflects challenges to redress this deterioration over the near to medium term. Specifically, given the magnitude of recent cash financing requirements, in conjunction with the deterioration in liquidity and debt metrics, Atizapan faces significant challenges to rebalance municipal finances over the near to medium term. Although risks are more heavily weighted to the downside, the negative outlook also recognizes that the new administration, which took power in late 2009, plans to implement an expenditure austerity program and initiatives to increase own-source revenue collection that may redress fiscal challenges. Over the next 12 to 18 months, Moody's will monitor the execution of these plans to evaluate the extent to which they: 1) rebalance fiscal outcomes, reducing annual borrowing needs, 2) ease debt metrics from peak levels expected at the end of 2010, and 3) support a return to positive net working capital. The last rating action on the Municipality of Atizapan was taken on November 20, 2007, when Moody's assigned Aa2.mx (Mexico National Scale Rating) and Baa2 (Global Scale, Local Currency) ratings to a MXN430 million enhanced loan. ================= N I C A R A G U A ================= * NICARAGUA: IDB Approves US$40 Million Loan -------------------------------------------- The Inter-American Development Bank approved a US$40 million loan to finance the second phase expansion of the San Jacinto-Tizate geothermal power project, which is being developed by a private sector company, Polaris Energy Nicaragua S.A.. Once completed, the combined first phase and second phase expansion will produce 72 MW (net), increasing Nicaragua's overall electricity generating capacity by 7 percent through renewable sources, thus providing a stable and low-cost supply of electricity. As the second operating geothermal power plant in Nicaragua, the project will help demonstrate the viability of this renewable source, and is expected to stimulate more private sector investment in electricity generation. Completion of the second phase expansion is scheduled for December 2011 at an estimated cost of US$177 million, which will be co- financed by a group of multilateral lenders, including the IDB. * * * As of August 3, 2010, the country continues to carry Moody's "Caa1" CC long-term foreign bank deposit rating, "B2" CC long-term foreign currency debt rating and "B3" long term rating, currency issuer ratings, and local currency long-term debt rating. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Forms Strategic Alliance With CVG --------------------------------------------------------- Patrick J. O'Donoghue at VHeadline News reports that Venezuelan Guayana Corporation and Petroleos de Venezuela held a meeting to consolidate a network of suppliers to supposedly eradicate imports. According to the report, CVG Industrial Development Vice President Jose Luis Colmenares said that the move was strategic because it could consolidate strategic alliances among state companies. The report relates that procurement managers from Sidor, Venealum, Carbonarca, Bauxilum and Ferrominera Orinoco attended the first session explaining their operational characteristics. For PDVSA the managers of these subsidiaries attended: Petroanzoategui, Petrocedeno and Petropiar, the report adds. 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 * * *