/raid1/www/Hosts/bankrupt/TCRLA_Public/100823.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
Monday, August 23, 2010, Vol. 11, No. 165
Headlines
A R G E N T I N A
EL AVICULTOR: Creditors' Proofs of Debt Due on September 13
ESTUDIO AZTECA: Creditors' Proofs of Debt Due on October 22
FIBRA PAPELERA: Creditors' Proofs of Debt Due on February 22
FORESTAL IBICUY: Creditors' Proofs of Debt Due on October 22
GRUPO CLARIN: Government Shuts Down Fibertel Internet Service
LAXIM SRL: Creditors' Proofs of Debt Due on October 7
ORDENA TU: Creditors' Proofs of Debt Due on October 4
B A R B A D O S
DIGICEL GROUP: Fails to Get FTC Review on LIME Rates in Barbados
B E R M U D A
OBAN INVESTMENTS: Creditors' Proofs of Debt Due on September 6
OBAN INVESTMENTS: Members' Final Meeting Set for September 24
C A Y M A N I S L A N D S
GGR INSURANCE: Creditors' Proofs of Debt Due on September 6
MARSHALL WACE: Creditors' Proofs of Debt Due on September 13
MARSHALL WACE: Creditors' Proofs of Debt Due on September 13
MIF HOLDINGS: Creditors' Proofs of Debt Due on September 16
MONARCH INCOME: Creditors' Proofs of Debt Due on September 16
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
MW TOPS: Creditors' Proofs of Debt Due on September 13
SAPIC - 98: Creditors' Proofs of Debt Due on September 16
SAPIC - 98: Creditors' Proofs of Debt Due on September 16
SAPIC - 98: Creditors' Proofs of Debt Due on September 16
SAVECOM INTERNATIONAL: Creditors' Proofs of Debt Due on Sept. 7
SMALL HAVEN: Creditors' Proofs of Debt Due on September 15
SMITH & WILLIAMSON: Creditors' Proofs of Debt Due on September 16
SMITH & WILLIAMSON: Creditors' Proofs of Debt Due on September 16
SOTRADA FIXED: Creditors' Proofs of Debt Due on September 16
C O L O M B I A
TERMOCANDELARIA SCA: Fitch Upgrades Issuer Default Rating to 'BB'
E C U A D O R
PETROECUADOR: To Supply Oil to PetroChina Under US$1BB Loan Deal
J A M A I C A
PETROLEUM CORPORATION: Don Wehby Turns Down Offer to Head Firm
M E X I C O
* MEXICO: Moody's Reviews Ba2 Rating on City Airport Trust's Bonds
X X X X X X X X
* BOND PRICING: For the Week August 16, to August 20, 2010
- - - - -
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A R G E N T I N A
=================
EL AVICULTOR: Creditors' Proofs of Debt Due on September 13
-----------------------------------------------------------
The court-appointed trustee for El Avicultor S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
September 13, 2010.
ESTUDIO AZTECA: Creditors' Proofs of Debt Due on October 22
-----------------------------------------------------------
Hugo Hector Dogliani, the court-appointed trustee for Estudio
Azteca SA's bankruptcy proceedings, will be verifying creditors'
proofs of claim until October 22, 2010.
Mr. Dogliani will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 6 in Buenos Aires, with the assistance of Clerk
No. 11, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Hugo Hector Dogliani
Pedro Ignacio Rivera 3944
Argentina
FIBRA PAPELERA: Creditors' Proofs of Debt Due on February 22
------------------------------------------------------------
Estudio Sagardoy Arce, the court-appointed trustee for Fibra
Papelera SA's reorganization proceedings, will be verifying
creditors' proofs of claim until February 22, 2011.
The trustee 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.
Creditors will vote to ratify the completed settlement plan
during the assembly on February 2, 2012.
The Trustee can be reached at:
Estudio Sagardoy Arce
Coppo & Asociados
Argentina
FORESTAL IBICUY: Creditors' Proofs of Debt Due on October 22
------------------------------------------------------------
Silvia Beatriz Giambone, the court-appointed trustee for Forestal
Ibicuy SA's bankruptcy proceedings, will be verifying creditors'
proofs of claim until October 22, 2010.
Ms. Giambone will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 14 in Buenos Aires, with the assistance of Clerk
No. 28, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Silvia Beatriz Giambone
Saenz Pena 651
Argentina
GRUPO CLARIN: Government Shuts Down Fibertel Internet Service
-------------------------------------------------------------
Eliana Raszewski at Bloomberg News reports that the Argentine
government has shut down the Internet service provided by Grupo
Clarin SA's Fibertel unit, saying the company's merger with
Cablevision SA was illegal. The report relates that the
government's move is the latest in a fight between Grupo Clarin
and President Cristina Fernandez de Kirchner, which said that the
company is biased in its coverage of the government.
"Fibertel doesn't exist anymore because of its own decision," the
report quoted Planning Minister Julio De Vido as saying. "They
announced a merger that was never approved," he added. The report
relates Mr. de Vido Fibertel said that customers are free to find
other service providers and the company will cease operations
within 90 days.
The government's decision is "illegal and arbitrary," and
Cablevision will pursue all legal actions to continue with
Fibertel's Internet service, the company said in an e-mailed
statement obtained by the news agency.
Bloomberg says that about 63% of Grupo Clarin's ARS$1.87 billion
(US$470 million) in sales in the second quarter came from its
cable and Internet services. The report relates that Fibertel has
about 1 million clients.
About the Company
Grupo Clarin a media company in Argentina and a market leader in
the cable television and Internet access, printing and publishing,
and broadcasting and programming segments. Its cable television
network is one of the largest in Latin America, with one of the
largest broadband subscriber base in Argentina. Its flagship
newspaper -- Diario Clarin -- is the highest circulation newspaper
in Latin America and the second-highest circulation Spanish-
language newspaper in the world. Grupo Clarin is the largest
producer of media content in Argentina, including news, sports and
entertainment and reaches substantially all segments of the
Argentine population in terms of wealth, geography and age.
LAXIM SRL: Creditors' Proofs of Debt Due on October 7
-----------------------------------------------------
Elsa Ester Andrade, the court-appointed trustee for Laxim SRL's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until October 7, 2010.
Ms. Andrade will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 7, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Elsa Ester Andrade
Avenida Callao 449
Argentina
ORDENA TU: Creditors' Proofs of Debt Due on October 4
-----------------------------------------------------
Fernando J. Marziale, the court-appointed trustee for Ordena Tu
Espacio SA's bankruptcy proceedings, will be verifying creditors'
proofs of claim until October 4, 2010.
The trustee 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. 50, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Fernando J. Marziale
Avenida Callao 930
Argentina
===============
B A R B A D O S
===============
DIGICEL GROUP: Fails to Get FTC Review on LIME Rates in Barbados
----------------------------------------------------------------
The Fair Trading Commission in Barbados has denied Digicel Group's
application to review an earlier decision on rates charged by
Cable and Wireless, which trades as LIME, to other telecoms
companies to use its network, Jamaica Observer reports. The
report relates that in a recent decision, the FTC said Digicel
Group failed to demonstrate any need to review its February 22
ruling as the company "has not properly supported a modification
of the Commission's decision."
According to the report, on March 6, 2010, Digicel had filed a
Notice of Motion for Review, contending that the regulator
breached the rules of natural justice in that it was under duty to
act judiciously, but did not do so. The report relates FTC said
arguments put forward by the mobile phone service provider "were
at some points inconsistent and seemingly contradictory with
respect to the nature and extent of the Commission's process and
Digicel's involvement."
"Cable and Wireless subsequently proposed that in the absence of a
Long Run Incremental Cost (LRIC) study and until this exercise is
completed it would reduce domestic interconnection tariffs for
Public Switched Telephone Network (PSTN) Termination Access
Service, Public Land Mobile Network Termination Access Service and
PSTN Transit Service by five per cent . . ." FTC said, the report
notes. "Based on the foregoing and on the reasons expressed in
the decision, the Commission finds that Digicel in its motion for
review and written submissions, has not demonstrated that errors
of fact or law or any other grounds for review exist," FTC added.
About Digicel Group
Digicel Group -- http://www.digicelgroup.com-- is renowned for
competitive rates, unbeatable coverage, superior customer care, a
wide variety of products and services and state-of-the-art
handsets. By offering innovative wireless services and community
support, Digicel has become a leading brand across its 31 markets
worldwide.
Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide. Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos. The Caribbean company also has coverage
in St. Martin and St. Barths. Digicel Pacific comprises Fiji,
Papua New Guinea, Samoa, Tonga and Vanuatu.
* * *
As of January 14, 2010, the company continues to carry Moody's
"Caa1" senior unsecured debt rating.
=============
B E R M U D A
=============
OBAN INVESTMENTS: Creditors' Proofs of Debt Due on September 6
--------------------------------------------------------------
The creditors of Oban Investments Limited are required to file
their proofs of debt by September 6, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on August 6, 2010.
The company's liquidator is:
Nigel J.S. Chatterjee
PricewaterhouseCoopers Advisory Limited
Dorchester House
7 Church Street, Hamilton
Bermuda
OBAN INVESTMENTS: Members' Final Meeting Set for September 24
-------------------------------------------------------------
The members of Oban Investments Limited will hold their final
meeting, on September 24, 2010, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on August 6, 2010.
The company's liquidator is:
Nigel J.S. Chatterjee
PricewaterhouseCoopers Advisory Limited
Dorchester House
7 Church Street, Hamilton
Bermuda
==========================
C A Y M A N I S L A N D S
==========================
GGR INSURANCE: Creditors' Proofs of Debt Due on September 6
-----------------------------------------------------------
The creditors of GGR Insurance Company, Ltd. are required to file
their proofs of debt by September 6, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on August 5, 2010.
The company's liquidator is:
Russell Smith
c/o Russell Homer
Telephone: (345) 946-0820
Facsimile: (345) 946-0864
PO Box 2499, George Town KY1-1104 Grand Cayman
Cayman Islands
MARSHALL WACE: Creditors' Proofs of Debt Due on September 13
------------------------------------------------------------
The creditors of Marshall Wace Latin America Fund SPC are required
to file their proofs of debt by September 13, 2010, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on August 5, 2010.
The company's liquidator is:
John Sutlic
c/o Kim Charaman
Telephone: (345) 949-8455
Facsimile: (345) 949-8499
Close Brothers (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034, Grand Cayman KY1-1102
MARSHALL WACE: Creditors' Proofs of Debt Due on September 13
------------------------------------------------------------
The creditors of Marshall Wace Tops Trading N (Market Neutral)
Limited are required to file their proofs of debt by September 13,
2010, to be included in the company's dividend distribution.
The company commenced liquidation proceedings on August 5, 2010.
The company's liquidator is:
John Sutlic
c/o Kim Charaman
Telephone: (345) 949-8455
Facsimile: (345) 949-8499
Close Brothers (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034, Grand Cayman KY1-1102
MIF HOLDINGS: Creditors' Proofs of Debt Due on September 16
-----------------------------------------------------------
The creditors of MIF Holdings Ltd are required to file their
proofs of debt by September 16, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 21, 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
MONARCH INCOME: Creditors' Proofs of Debt Due on September 16
-------------------------------------------------------------
The creditors of Monarch Income Fund Ltd are required to file
their proofs of debt by September 16, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 21, 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
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
----------------------------------------------------------
The creditors of Mutual Fund Basket Reference Fund (1-R) Limited
are required to file their proofs of debt by September 16, 2010,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on July 30, 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
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
----------------------------------------------------------
The creditors of Mutual Fund Basket Reference Fund (1-S) Limited
are required to file their proofs of debt by September 16, 2010,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on July 30, 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
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
----------------------------------------------------------
The creditors of Mutual Fund Basket Reference Fund (1-T) Limited
are required to file their proofs of debt by September 16, 2010,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on July 30, 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
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
----------------------------------------------------------
The creditors of Mutual Fund Basket Reference Fund (1-U) Limited
are required to file their proofs of debt by September 16, 2010,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on July 30, 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
MUTUAL FUND: Creditors' Proofs of Debt Due on September 16
----------------------------------------------------------
The creditors of Mutual Fund Basket Reference Fund (8-E) Global
Focus Limited are required to file their proofs of debt by
September 16, 2010, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on July 30, 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
MW TOPS: Creditors' Proofs of Debt Due on September 13
------------------------------------------------------
The creditors of MW Tops Trading M (Global) Limited are required
to file their proofs of debt by September 13, 2010, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on August 5, 2010.
The company's liquidator is:
John Sutlic
c/o Kim Charaman
Telephone: (345) 949-8455
Facsimile: (345) 949-8499
Close Brothers (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034, Grand Cayman KY1-1102
SAPIC - 98: Creditors' Proofs of Debt Due on September 16
---------------------------------------------------------
The creditors of Sapic - 98 Reference Fund (21) Limited are
required to file their proofs of debt by September 16, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on August 2, 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
SAPIC - 98: Creditors' Proofs of Debt Due on September 16
---------------------------------------------------------
The creditors of Sapic - 98 Reference Fund (25) Limited are
required to file their proofs of debt by September 16, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on August 2, 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
SAPIC - 98: Creditors' Proofs of Debt Due on September 16
---------------------------------------------------------
The creditors of Sapic - 98 Reference Fund (26) Limited are
required to file their proofs of debt by September 16, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on August 2, 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
SAVECOM INTERNATIONAL: Creditors' Proofs of Debt Due on Sept. 7
---------------------------------------------------------------
The creditors of Savecom International Holding Inc. are required
to file their proofs of debt by September 7, 2010, to be included
in the company's dividend distribution.
The company commenced wind-up proceedings on August 3, 2010.
The company's liquidator is:
Pu-Dong Weng
No. 17, Alley 4, Lane 43 Tien-Mu E. Road
Taipei, Taiwan
R.O.C.
Telephone: +886 2 2653 7755
SMALL HAVEN: Creditors' Proofs of Debt Due on September 15
----------------------------------------------------------
The creditors of Small Haven Limited are required to file their
proofs of debt by September 15, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on July 27, 2010.
The company's liquidator is:
Eagle Holdings Ltd.
c/o Barclays Private Bank & Trust (Cayman) Limited
FirstCaribbean House, 4th Floor
P.O. Box 487, Grand Cayman KY1-1106
Cayman Islands
Telephone: 345 949-7128
SMITH & WILLIAMSON: Creditors' Proofs of Debt Due on September 16
-----------------------------------------------------------------
The creditors of Smith & Williamson Enterprise Fund Limited are
required to file their proofs of debt by September 16, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on August 3, 2010.
The company's liquidator is:
Stuart Sybersma
c/o Trudy-Ann Baines
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949-7500
Facsimile: (345) 949-8258
e-mail: tabaines@deloitte.com
SMITH & WILLIAMSON: Creditors' Proofs of Debt Due on September 16
-----------------------------------------------------------------
The creditors of Smith & Williamson Enterprise Master Fund Limited
are required to file their proofs of debt by September 16, 2010,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on August 3, 2010.
The company's liquidator is:
Stuart Sybersma
c/o Trudy-Ann Baines
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949-7500
Facsimile: (345) 949-8258
e-mail: tabaines@deloitte.com
SOTRADA FIXED: Creditors' Proofs of Debt Due on September 16
------------------------------------------------------------
The creditors of Sotrada Fixed Income RV Fund Limited are required
to file their proofs of debt by September 16, 2010, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on August 5, 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 KY1-9002/9005
Cayman Islands
===============
C O L O M B I A
===============
TERMOCANDELARIA SCA: Fitch Upgrades Issuer Default Rating to 'BB'
-----------------------------------------------------------------
Fitch Ratings has upgraded Termocandelaria S.C.A. E.S.P.'s foreign
and local currency Issuer Default Ratings to 'BB' from 'BB-'. The
rating action applies to approximately US$76 million of
outstanding senior secured notes issued by Termocandelaria Power
Ltd. The Rating Outlook is Stable.
The rating upgrade reflects the company's improving credit metrics
resulting from stable cash flow generation and modest reductions
in debt and financial leverage. The company somewhat benefited
during the recent drought due to higher sales volume. Going
forward, Termocandelaria EBITDA generation is expected to moderate
and reflect the stability of the company's capacity payments.
During the last 12 months ended June 30, 2010, the company
reported an EBITDA generation of approximately US$41.3 million and
total debt of US$76.5 million, which translated into a modest
leverage of 1.9 times as of June 30, 2010. The rating action also
reflects the company's recent operating performance characterized
by high capacity utilization. The plant performed well when it
was called to dispatch electricity due to low availability of
hydroelectric plants as a result of droughts in the country.
Stable Cash Generation Supported by Reliability Payments:
Termocandelaria's ratings reflect the company's stable and
predictable cash flow stream generated by fixed capacity payments,
or reliability charges received from the Colombian electric
system; Termocandelaria is a merchant power generator with no
specific power purchase agreements in place and is primarily used
as a back-up provider of power to the electric system. In 2006,
Colombia revised its regulatory framework, establishing a new
firm-capacity compensation scheme for Colombian generation
companies. The new regulation favorably affected Termocandelaria
and increased the reliability charges it receives to approximately
US$35 million-US$40 million annually from approximately US$16
million-US$18 million annually prior to the regulatory change.
These reliability charges are dollar-linked and are to exist for a
five-year period ending November 2012, and will be adjusted
thereafter to reflect current market prices based on future energy
auctions, subject to a cap and floor until 2015. The first energy
auction that took place in 2008 modestly increased the 2013
reliability payment to approximately US$14 per MWh-year from the
current rate of US$13 MWh-year established in 2006.
Competitive Electricity Generation Market:
Termocandelaria operates in a highly competitive electricity
market dominated by low-cost, hydro-based generation companies.
The company operates primarily as a back-up generator as
Termocandelaria's marginal cost is significantly higher than that
of its peers. New capacity is not expected to be needed until at
least 2013 since overall generation capacity is expected to be
sufficient to meet Colombia's electricity demand for the next few
years. The company may participate in future generation auctions
and increase its installed capacity by converting its plant from a
single-cycle to a combined-cycle configuration. Successful
auction bids will receive long-term fixed capacity payments after
2013. The addition of new capacity would likely increase
Termocandelaria's leverage and possibly have a negative effect on
the company's credit quality.
The rating incorporates moderate regulatory risk. Possible
regulatory changes relate to fuel storage and distribution for the
operation of thermo electric plants. This could negatively impact
thermoelectric generation companies in Colombia in general but the
outcome remains uncertain at this time. The company's ability to
generate electricity on short notice bodes well for its business
risk given that this proves the company's reliability and
mitigates political interference risk, which could result from
poor operating performance.
Solid Credit Metrics:
The company's credit metrics are in line with the assigned rating
and have significantly improved after the 2007 debt restructuring,
which reduced debt to one-third of the outstanding amount. For
the LTM ended June 30, 2010 and as of year-end 2009, financial
leverage was adequate at approximately 1.9x and 2.8x total debt to
EBITDA, respectively. Interest coverage of 6.8x and 2.9x for LTM
June 2010 and year end 2009 is considered healthy. The existing
notes benefit from a solid trust structure and are secured by most
of the company's assets. The company operates with low levels of
cash on hand and approximately US$10 million of credit lines
available. During recent months the company's liquidity was
bolstered by readily available access to credit markets.
Termocandelaria intents to maintain low levels of on-balance sheet
cash, which exposes the company to liquidity risk associated with
future working capital needs; this risk is considered low.
During the 12 months ended June 2010, the company's financial
performance was positively impacted by droughts in Colombia.
Going forward, Termocandelaria cash flow generation is expected to
moderate and reflect revenues generated by reliability payments
while the company returns to its back-up mode with only marginal
electricity generation. During the LTM ended June 30, 2010, the
company reported an EBITDA of approximately US$41.3 million, up
from US$32.7 million as of year end 2009. Total debt of
approximately US$76.5 million consists mostly of senior secured
debt due 2016. The covenant package includes limitations on the
sale of assets, among other things. Increases in debt and
dividend distributions are restricted if the company's net
leverage exceeds 3.05x.
=============
E C U A D O R
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PETROECUADOR: To Supply Oil to PetroChina Under US$1BB Loan Deal
----------------------------------------------------------------
Ecuador Vice Financial Minister Maria Dolores Almeida said that
Ecuador has completed loan talks with China and that both nations
are expected to sign a US$1 billion agreement by the end of this
month, China Knowledge reports, citing unnamed sources.
According to the report, in June, Ms. Almeida entered negotiations
with China Development Bank in Beijing and both parties signed an
agreement. Pursuant to the agreement, the report relates, China
will offer Ecuador US$1 billion in loan in exchange for oil.
Petroecuador will supply 36,000 barrels of oil or fuel per day to
PetroChina International Co., a subsidiary of PetroChina Co. Ltd.,
the report notes.
About Petroecuador
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.
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J A M A I C A
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PETROLEUM CORPORATION: Don Wehby Turns Down Offer to Head Firm
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GraceKennedy Chief Operating Officer Don Wehby has turned down an
offer to become the new chairman of the Petroleum Corporation of
Jamaica because he felt that, with his primary focus on his
functions at GraceKennedy, he would not have enough time to devote
to a chairmanship role with the PCJ, Jamaica Observer reports.
According to the report, PCJ has been one of the most scrutinized
public agencies over the last few years and has been without a
chairman since Kathryn Phipps left her post.
As reported in the Troubled Company on May 21, 2010, RadioJamaica
said that auditors found a raft of irregularities in the financial
operations of the PCJ, with millions of dollars paid out under
questionable circumstances. The report related that the audit
reportedly revealed a lax system which allowed money to be paid
out without following basic accounting or government guidelines.
Dr. Ruth Potopsingh, Managing Director of the PCJ, was eventually
sacked by the PCJ board, the report said.
About Petroleum Corporation
Petroleum Corporation of Jamaica is a petroleum company owned by
the government of Jamaica. It was established in 1975 as State
Energy Corporation under the Ministry of Mining and Energy and
changed its name in 1979 by the Petroleum Act. The PCJ has the
exclusive right to explore for oil in Jamaica.
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M E X I C O
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* MEXICO: Moody's Reviews Ba2 Rating on City Airport Trust's Bonds
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Moody's Investors Service placed the Mexico City Airport Trust's
(Fumisa) Ba2 rating on review for possible downgrade, affecting US
$ 76.3 million and 76.5 million UDI (equivalent to $26.3 million
US) lease receivable bonds.
The review is prompted by the uncertainty surrounding the effect
on the medium term revenue stream of Fumisa brought about by the
August 3, 2010 bankruptcy filing of Mexicana Airlines. During the
first half of 2010, Mexicana Airlines comprised 32% of the
international passenger traffic through Terminal 1 of the Mexico
City International Airport (AICM for its acronym in Spanish).
Fumisa receives its revenues from the lease of commercial space in
Terminal 1 of the Mexico City International Airport primarily to
commercial vendors, with a more modest portion stemming from
counter space and other terminal space leased to airlines. While
airport passenger traffic is not the driver of revenue for the
payment of the lease revenue bonds, it is an important indicator
of the flow of passengers that makes the Terminal 1 an attractive
location for duty free and other concessionaires. A major
disruption in the number of passengers coming through the terminal
will likely hinder the ability of the commercial vendors to make
lease payments over the medium term and could compromise the
project's ability to meet debt service from the project cash flows
at levels that are consistent with the current rating.
For the quarter ending August 2010, Fumisa had projected a debt
service coverage ratio of 1.25x and given that the majority of
those revenues have already been collected it is likely that the
company will hit its target. However, going forward, revenues
could be lower and a DSCR below 1.15x could result in an early
amortization of the bonds. The sponsor, Advent International, is
able to support the project through an equity injection in the
Coverage Reserve Account, to bring DSCR over 1.15x. This remedy
is only allowed three times in the life of the debt, with one
already used during 2009. The support through the CRA must also
fall 12 months apart, which would allow the use of the CRA by
November of this year, and the need for support beyond that point
depends on the outcome of Mexicana's situation.
The review of the credit over the next three months will focus on
the maintenance and/or recovery of Mexicana's flights in and out
of AICM Terminal 1, by it or other carriers, and the ensuing
effects on passenger traffic and most importantly on Fumisa's
revenues. Additionally, Moody's will review the project's
liquidity position which at present is strengthened by cash
trapped in the trigger reserve account, and that held for lease
prepayment and tenant security accounts. The project structure
benefits from a 6 month debt service reserve account. The notes
amortize fully through December 2013.
The last rating action on the Mexico City Airport Trust was on
February 16, 2010 when the Ba2 rating was confirmed with a stable
outlook.
The lease receivable bond ratings were assigned by evaluating
factors believed to be relevant to the credit profile of the
Project such as i) the business risk and competitive position of
the project versus others within its industry or sector, ii) the
capital structure and financial risk of the project, iii) the
projected performance of the project over the near to intermediate
term, and iv) the project's history of achieving consistent
operating performance and meeting budget or financial plan goals.
These attributes were compared against other projects both within
and outside of the Airport's core peer group and the lease
receivable bond ratings are believed to be comparable to ratings
assigned to other projects of similar credit risk.
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X X X X X X X X
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* BOND PRICING: For the Week August 16, to August 20, 2010
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Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
Argentina
ARGENT-PAR 1.18 12/31/2038 ARS 80
ARGENT-?DIS 7.82 12/31/2033 EUR 71
ARGENT-?DIS 7.82 12/31/2033 EUR 72
ARGENT- DIS 4.33 12/31/2033 JPY 12
ARGENT- PAR&GDP 0.45 12/31/2038 JPY 8
ARGNT-BOCON PR11 2 12/3/2010 ARS 68.065
BANCO MACRO SA 10.75 6/7/2012 USD 70.04559
MENDOZA PROVINCE 5.5 9/4/2018 USD 81.58646
BRAZIL
CESP 9.75 1/15/2015 BRL 70.10162
CAYMAN ISLAND
BANCO BPI (CI) 4.15 11/14/2035 EUR 70.385
BANIF FIN LTD 3 12/31/2019 EUR 54.375
BARION FUNDING 0.63 12/20/2056 GBP 17.92655
BARION FUNDING 1.44 12/20/2056 GBP 31.69097
BCP FINANCE CO 4.239 EUR 66.55357
BCP FINANCE CO 5.543 EUR 69.0727
BES FINANCE LTD 5.58 EUR 67.59743
BES FINANCE LTD 6.984 2/7/2035 EUR 64.66379
CHINA MED TECH 4 8/15/2013 USD 67
CHINA SUNERGY 4.75 6/15/2013 USD 73.051
DUBAI HLDNG COMM 6 2/1/2017 GBP 70.988
EFG ORA FUNDING 1.7 10/29/2014 EUR 65.83251
ESFG INTERNATION 5.753 EUR 67.6
FERTINITRO FIN 8.29 4/1/2020 USD 68
IMCOPA INTL CAYM 10.375 12/16/2014 USD 32.375
MAZARIN FDG LTD 1.44 9/20/2068 GBP 29.06388
PUBMASTER FIN 6.962 6/30/2028 GBP 71.41634
SHINSEI FIN CAYM 6.418 USD 64.46992
SHINSEI FINANCE 7.16 USD 64.4235
COLOMBIA
AGUAS NUEVAS 3.4 5/15/2012 CLP 0.9707
ESVAL S.A. 3.8 7/15/2012 CLP 50.66407
PUERTO RICO
PUERTO RICO CONS 6.2 5/1/2017 USD 48
PUERTO RICO CONS 6.5 4/1/2016 USD 54.3
VENEZUELA
PETROLEOS DE VEN 4.9 10/28/2014 USD 59.99436
PETROLEOS DE VEN 5 10/28/2015 USD 55.75565
PETROLEOS DE VEN 5.125 10/28/2016 USD 52.74665
PETROLEOS DE VEN 5.25 4/12/2017 USD 59.08586
PETROLEOS DE VEN 5.375 4/12/2027 USD 46.45213
PETROLEOS DE VEN 5.5 4/12/2037 USD 45.60755
SIDETUR FINANCE 10 4/20/2016 USD 67
VENEZUELA 5.75 2/26/2016 USD 68
VENEZUELA 6 12/9/2020 USD 57.25
VENEZUELA 7 12/1/2018 USD 65.5
VENEZUELA 7 3/31/2038 USD 55.5
VENEZUELA 7 3/31/2038 USD 54.952
VENEZUELA 7.65 4/21/2025 USD 58.5
VENEZUELA 7.75 10/13/2019 USD 63.5
VENEZUELA 8.25 10/13/2024 USD 60
VENEZUELA 9 5/7/2023 USD 64.5
VENEZUELA 9.25 9/15/2027 USD 69.1
VENEZUELA 9.25 9/15/2027 USD 69.25
VENEZUELA 9.25 5/7/2028 USD 64.5
VENZOD - 189000 9.375 1/13/2034 USD 64.5
***********
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
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publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
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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
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definitive compilation of stocks that are ideal to sell short.
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***********
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
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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.
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* * * End of Transmission * * *