TCRLA_Public/100825.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 25, 2010, Vol. 11, No. 167

                            Headlines



A R G E N T I N A

CICCONE CALCOGRAFICA: Creditors' Proofs of Debt Due on Sept. 29
GASTRONOMIC SRL: Creditors' Proofs of Debt Due on September 6
GRUPO CLARIN: Battle With Argentine Government Intensifies
VICUNOL SACI: Creditors' Proofs of Debt Due on September 27


B E R M U D A

MEGASLOT SHIPHOLDING: Creditors' Proofs of Debt Due on September 1
MEGASLOT SHIPHOLDING: Members' Final Meeting Set for September 22
RVI INVESTMENT: Creditors' Proofs of Debt Due on September 1
RVI INVESTMENT: Members' Final Meeting Set for September 22


C A Y M A N  I S L A N D S

ANTHRACITE BALANCED: Members' Final Meeting Set for September 6
ANTHRACITE BALANCED: Members' Final Meeting Set for September 6
ANTHRACITE CFO: Members' Final Meeting Set for September 6
ANTHRACITE MASTER: Members' Final Meeting Set for September 6
ASB OPPORTUNITY: Members' Final Meeting Set for September 10

CAPULA INVESTMENTS: Creditors' Proofs of Debt Due on September 16
CLOVERDALE LIMITED: Creditors' Proofs of Debt Due on September 6
COGO WOLF: Creditors' Proofs of Debt Due on September 16
CYCLONE INVESTMENTS: Creditors' Proofs of Debt Due on September 17
EMERSON REINSURANCE: Creditors' Proofs of Debt Due on September 13

FORTRINN VOLATILITY: Members' Final Meeting Set for September 30
FOUNDATION RE: Creditors' Proofs of Debt Due on September 16
JAVELIN RE: Creditors' Proofs of Debt Due on September 16
MONT GELE: Creditors' Proofs of Debt Due on September 13
MSIIUSD VEHICLE: Creditors' Proofs of Debt Due on September 16

PERITUS OFFSHORE: Creditors' Proofs of Debt Due on September 16
RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due on Sept. 16
RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due on Sept. 16
STARLIGHT HOLDINGS: Creditors' Proofs of Debt Due on September 17
SUNRISE VENTURES: Members' Final Meeting Set for September 23


C H I L E

COMPANIA MINERA: Disaster Puts Firm at Risk of Bankruptcy


M E X I C O

MEXICANA AIRLINES: 6 Investor Groups Interested in Buying Airline
MEXICANA AIRLINES: Obtains Preliminary Injunction Order in U.S.
MEXICANA AIRLINES: Suspends Some Services, To Return Planes
VITRO SAB: Postpones Bond Consent Solicitation


P A R A G U A Y

VISION BANCO: S&P Raises Counterparty Credit Rating to 'B+'


P U E R T O  R I C O

CARIBBEAN PETROLEUM: Gets Interim Nod for US$10MM DIP Financing
CARIBBEAN PETROLEUM: Puerto Rico Gov't Seeks Venue Transfer
FIRST BANCORP: Reveals Relevant Price & Exchange Ratios for Offer


V I R G I N  I S L A N D S

INNOVATIVE COMM: Last-Minute Court Ruling Delays Asset Sale




                         - - - - -


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A R G E N T I N A
=================


CICCONE CALCOGRAFICA: Creditors' Proofs of Debt Due on Sept. 29
---------------------------------------------------------------
The court-appointed trustee for Ciccone Calcografica SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until September 29, 2010.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of Clerk
No. 15, 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.


GASTRONOMIC SRL: Creditors' Proofs of Debt Due on September 6
-------------------------------------------------------------
The court-appointed trustee for Gastronomic S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
September 6, 2010.


GRUPO CLARIN: Battle With Argentine Government Intensifies
----------------------------------------------------------
Taos Turner at Dow Jones Newswires reports that a day after
Argentina's government disclosed plans to deal a serious blow to
Grupo Clarin S.A., their ongoing battle has intensified and may
drag on through next year's presidential election.

According to the report, Argentine President Cristina Fernandez
has long bashed the media, accusing it of bias and abuse of power.
To curb the influence of traditional media companies, Fernandez
last year signed a law, now held up in court, reorganizing the
media industry in general and forcing Grupo Clarin to sell key
assets, the report relates.

Dow Jones Newswires says that Clarin's flagship newspaper
escalated the feud by publishing the personal e-mail address of
Planning Minister Julio De Vido's wife.

As reported in the Troubled Company Reporter-Latin America on
August 23, 2010, Bloomberg News said that the Argentine government
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 the Planning Minister Julio De Vido
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.

                          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.


VICUNOL SACI: Creditors' Proofs of Debt Due on September 27
-----------------------------------------------------------
Marcela Mazzoni, the court-appointed trustee for Vicunol SACI's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until September 27, 2010.

Ms. Mazzoni 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:

         Marcela Mazzoni
         Tucuman 1545
         Argentina


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B E R M U D A
=============


MEGASLOT SHIPHOLDING: Creditors' Proofs of Debt Due on September 1
------------------------------------------------------------------
The creditors of Megaslot Shipholding Corporation Ltd. are
required to file their proofs of debt by September 1, 2010, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on August 13, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


MEGASLOT SHIPHOLDING: Members' Final Meeting Set for September 22
-----------------------------------------------------------------
The members of Megaslot Shipholding Corporation Ltd. will hold
their final meeting, on September 22, 2010, at 9:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company commenced wind-up proceedings on August 13, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


RVI INVESTMENT: Creditors' Proofs of Debt Due on September 1
------------------------------------------------------------
The creditors of RVI Investment Holdings Limited are required to
file their proofs of debt by September 1, 2010, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on August 16, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


RVI INVESTMENT: Members' Final Meeting Set for September 22
-----------------------------------------------------------
The members of RVI Investment Holdings Limited will hold their
final meeting, on September 22, 2010, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company commenced wind-up proceedings on August 16, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


==========================
C A Y M A N  I S L A N D S
==========================


ANTHRACITE BALANCED: Members' Final Meeting Set for September 6
---------------------------------------------------------------
The members of Anthracite Balanced Company (JR-50) Limited will
hold their final meeting, on September 6, 2010, at 12:00 noon to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Ian D. Stokoe
         c/o Aaron Gardner
         Telephone: (345) 914-8655
         Facsimile: (345) 945-4237
         PO Box 258, Grand Cayman KY1-1104
         Cayman Islands


ANTHRACITE BALANCED: Members' Final Meeting Set for September 6
---------------------------------------------------------------
The members of Anthracite Balanced Company (JR-57) Limited will
hold their final meeting, on September 6, 2010, at 1:00 p.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Ian D. Stokoe
         c/o Aaron Gardner
         Telephone: (345) 914-8655
         Facsimile: (345) 945-4237
         PO Box 258, Grand Cayman KY1-1104
         Cayman Islands


ANTHRACITE CFO: Members' Final Meeting Set for September 6
----------------------------------------------------------
The members of Anthracite CFO Issuer No. 1 Limited will hold their
final meeting, on September 6, 2010, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Ian D. Stokoe
         c/o Aaron Gardner
         Telephone: (345) 914-8655
         Facsimile: (345) 945-4237
         PO Box 258, Grand Cayman KY1-1104
         Cayman Islands


ANTHRACITE MASTER: Members' Final Meeting Set for September 6
-------------------------------------------------------------
The members of Anthracite Master Company (2) Limited will hold
their final meeting, on September 6, 2010, at 11:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Ian D. Stokoe
         c/o Aaron Gardner
         Telephone: (345) 914-8655
         Facsimile: (345) 945-4237
         PO Box 258, Grand Cayman KY1-1104
         Cayman Islands


ASB OPPORTUNITY: Members' Final Meeting Set for September 10
------------------------------------------------------------
The members of ASB Opportunity Fund Limited will hold their final
meeting, on September 10, 2010, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Richard Finlay
         c/o Krysten Lumsden
         Telephone: (345) 814-7366
         Facsimile: (345) 945-3902
         P.O. Box 2681, Grand Cayman KY1-1111
         Cayman Islands


CAPULA INVESTMENTS: Creditors' Proofs of Debt Due on September 16
-----------------------------------------------------------------
The creditors of Capula Investments 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 wind-up proceedings on August 2, 2010.

The company's liquidator is:

         Ogier Employee Benefit Services Limited
         Whiteley Chambers Don Street
         St Helier, Jersey JE4
         Ogier Fiduciary Services (Cayman) Limited
         89 Nexus Way, Camana Bay
         Grand Cayman KY1-9007, Cayman Islands


CLOVERDALE LIMITED: Creditors' Proofs of Debt Due on September 6
----------------------------------------------------------------
The creditors of Cloverdale 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 liquidation proceedings on July 29, 2010.

The company's liquidator is:

         Alan Johnson
         Wilmington Trust Corporate Services (Cayman) Limited
         c/o Carl Gosselin, Agent
         P.O. Box 32322, Grand Cayman KY1-1209
         Cayman Islands
         Telephone: (345) 814-6712


COGO WOLF: Creditors' Proofs of Debt Due on September 16
--------------------------------------------------------
The creditors of Cogo Wolf Trimaran Liquidity 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 August 3, 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


CYCLONE INVESTMENTS: Creditors' Proofs of Debt Due on September 17
------------------------------------------------------------------
The creditors of Cyclone Investments Limited are required to file
their proofs of debt by September 17, 2010, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on July 20, 2010.

The company's liquidator is:

         Charles Pitter
         c/o Prue Lawson
         Telephone: (345) 914-8662
         Facsimile: (345) 945-4237
         PO Box 258, Grand Cayman KY1-1104 Cayman Islands


EMERSON REINSURANCE: Creditors' Proofs of Debt Due on September 13
------------------------------------------------------------------
The creditors of Emerson Reinsurance Ltd. are required to file
their proofs of debt by September 13, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 3, 2010.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         P.O. Box 1109, HSBC House
         68 West Bay Road, Grand Cayman
         Cayman Islands
         c/o Shane Delaney
         Telephone: 914-7582/ 949-7755
         Facsimile: 949-6021/ 949-6021


FORTRINN VOLATILITY: Members' Final Meeting Set for September 30
----------------------------------------------------------------
The members of Fortrinn Volatility Fund Ltd. will hold their final
meeting, on September 30, 2010, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         CDL Company Ltd.
         P.O. Box 31106, Grand Cayman KY1-1205


FOUNDATION RE: Creditors' Proofs of Debt Due on September 16
------------------------------------------------------------
The creditors of Foundation Re 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 wind-up proceedings on August 3, 2010.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         P.O. Box 1109, HSBC House
         68 West Bay Road, Grand Cayman
         Cayman Islands
         c/o Shane Delaney
         Telephone: 914-7582/ 949-7755
         Facsimile: 949-6021/ 949-6021


JAVELIN RE: Creditors' Proofs of Debt Due on September 16
---------------------------------------------------------
The creditors of Javelin Re 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 wind-up proceedings on August 3, 2010.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         P.O. Box 1109, HSBC House
         68 West Bay Road, Grand Cayman
         Cayman Islands
         c/o Shane Delaney
         Telephone: 914-7582/ 949-7755
         Facsimile: 949-6021/ 949-6021


MONT GELE: Creditors' Proofs of Debt Due on September 13
--------------------------------------------------------
The creditors of Mont Gele Re are required to file their proofs of
debt by September 13, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on August 3, 2010.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         P.O. Box 1109, HSBC House
         68 West Bay Road, Grand Cayman
         Cayman Islands
         c/o Shane Delaney
         Telephone: 914-7582/ 949-7755
         Facsimile: 949-6021/ 949-6021


MSIIUSD VEHICLE: Creditors' Proofs of Debt Due on September 16
--------------------------------------------------------------
The creditors of MSIIUSD Vehicle 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 August 3, 2010.

The company's liquidator is:

         Roger Anscher
         Ramius Alternative Solutions LLC
         Telephone: +1 212 845 7964
         Facsimile: +1 212 845 7998
         e-mail: ranscher@ramius.com
         599 Lexington Avenue
         19th Floor
         New York, New York 10022


PERITUS OFFSHORE: Creditors' Proofs of Debt Due on September 16
---------------------------------------------------------------
The creditors of The Peritus Offshore 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 wind-up proceedings on June 30, 2010.

The company's liquidator is:

         David J. Desmond
         26 West Anapamu Street 3rd Floor
         Santa Barbara CA 93101
         USA


RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due on Sept. 16
------------------------------------------------------------------
The creditors of Residential Reinsurance 2006 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 wind-up proceedings on August 3, 2010.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         P.O. Box 1109, HSBC House
         68 West Bay Road, Grand Cayman
         Cayman Islands
         c/o Shane Delaney
         Telephone: 914-7582/ 949-7755
         Facsimile: 949-6021/ 949-6021


RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due on Sept. 16
------------------------------------------------------------------
The creditors of Residential Reinsurance 2007 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 wind-up proceedings on August 3, 2010.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         P.O. Box 1109, HSBC House
         68 West Bay Road, Grand Cayman
         Cayman Islands
         c/o Shane Delaney
         Telephone: 914-7582/ 949-7755
         Facsimile: 949-6021/ 949-6021


STARLIGHT HOLDINGS: Creditors' Proofs of Debt Due on September 17
-----------------------------------------------------------------
The creditors of Starlight Holdings Limited are required to file
their proofs of debt by September 17, 2010, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on July 28, 2010.

The company's liquidator is:

         Charles Pitter
         c/o Prue Lawson
         Telephone: (345) 914-8662
         Facsimile: (345) 945-4237
         PO Box 258, Grand Cayman KY1-1104 Cayman Islands


SUNRISE VENTURES: Members' Final Meeting Set for September 23
-------------------------------------------------------------
The members of Sunrise Ventures Limited will hold their final
meeting, on September 23, 2010, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         CDL Company Ltd.
         P.O. Box 31106, Grand Cayman KY1-1205


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C H I L E
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COMPANIA MINERA: Disaster Puts Firm at Risk of Bankruptcy
---------------------------------------------------------
The owners of Compania Minera San Esteban Primera's San Jose mine
in Chile said that the recent accident that resulted to the
entrapment of 33 miners at the local mine might place the company
at risk of bankruptcy, Agence France-Presse reports.  The report
relates that the owners told a Chilean radio station that they
might not be able to pay the miners once they have been rescued.

According to Buenos Aires Herald, rescue workers said it could
take 120 days to dig a new tunnel to reach the miners after the
main mine ramp collapsed on August 5.  The report notes that the
government said earlier this month that the likelihood of finding
the miners alive was low.

AFP relates that the engineer in charge of the rescue mission at
the mine, Andres Sougarret, said he was plotting where to drill a
hole large enough to lift the miners out one by one from a gallery
nearly 700 meters (2,300 feet) below ground.

The Herald says that serious mining accidents are rare in Chile,
but the government said that the San Jose mine has suffered a
series of mishaps and 16 workers were killed in recent years.

                       About Compania Minera

Compania Minera San Esteban Primera is engaged in the production
of both copper and gold concentrates.


===========
M E X I C O
===========


MEXICANA AIRLINES: 6 Investor Groups Interested in Buying Airline
-----------------------------------------------------------------
Lizette Clavel Sanchez, head of the Mexican Aviation Stewards
Union Association, said Wednesday at least six investor groups
had expressed interest in buying Mexicana Airlines, reports
Xinhua News Agency.

However, Ms. Sanchez said in a press conference Mexicana had
scared some investors away by producing unreliable information,
saying the company has accumulated a debt of 5.5 billion dollars
in the first quarter of this year, not its published figure of
1.25 million dollars, notes the report.

"It is not that they are not reporting information, but they are
not giving information with the speed and transparency needed,"
Xinhua quoted Mr. Sanchez as saying.

These statements came one day after the Mexican Airline Pilots
Association said it received a concrete offer from venture
capital firm Advent International for US$49 million.

ASPA's purported deal with Advent International provides that
the cash Advent would invest in Mexicana would depend on
government willingness to temporarily supply free fuel and allow
a deferral on payments due for using the country's airspace,
Reuter said.  The potential investment was about half of what the
airline's management says is needed to keep it operating, Reuters
added.

But ASPA spokesman Antonio Vargas Echegoyen subsequently
disclosed in a press conference that Advent only wants to fly 30
airliners, 39 planes less than those at present, according to
Xinhua.

Ms. Sanchez also pointed out in a separate radio interview the
offer would be helpful, yet 100 million dollars are needed for
Mexicana to survive in the long term.

Ms. Sanchez told Radio Formula that other financial institutions
would be welcomed into the talks, but so far Advent is the only
one that has committed cash, Reuters says.

"This is a first step, by showing there are serious investors
looking at the airline," Ms. Sanchez said, notes the report.

Mr. Vargas said the unions are optimistic that Mexicana Airlines
will emerge from bankruptcy under the same brand name but new
management.  He further added that reductions in operations,
fleet size and crew staff will be necessary as the company "owes
more or less six times its value," Dow Jones reported.

Goldman Sachs Group Inc. and Credit Suisse Group AG have been
cited by media as potential investors in the airline.

                      About Mexicana Airlines

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.

Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two
other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and
Mexicana Inter S.A. de C.V. (Mexicana Link).

Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
August 2, 2010.  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.

Maru E. Johansen, foreign representative of Compania Mexicana,
estimated in the Chapter 15 petition that the company has assets
of US$500 million to US$1 billion and debts of more than
US$1 billion.  William C. Heuer, Esq., at Duane Morris LLP, serves
as counsel to Ms. Johansen.

Mexicana de Aviacion stated that despite its bankruptcy filing, it
expects to continue to operate normally, and that such filings

Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines
Bankruptcy News.  The newsletter tracks the chapter 11 proceedings
and the ancillary proceedings undertaken by Compania Mexicana de
Aviacion and its units.  (http://bankrupt.com/newsstand/or
215/945-7000).


MEXICANA AIRLINES: Obtains Preliminary Injunction Order in U.S.
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
has granted a preliminary injunction barring anyone from taking
legal actions against Compania Mexicana de Aviacion, S.A. de C.V.

Mexicana Airlines sought preliminary injunction to prevent
creditors and leasing companies from seizing its assets or
terminating their contracts while it is awaiting the Bankruptcy
Court's recognition of its insolvency case in Concurso, Mexico,
as the main proceeding.

In a 10-page order issued August 18, 2010, Judge Martin Glenn
said that Mexicana Airlines "may suffer immediate and irreparable
injury" without the injunction, pointing out that its assets
could be subject to potential actions by creditors in the U.S.

"Such acts could interfere with and cause harm to Mexicana's
efforts to administer its estate pursuant to the Concurso
proceeding and the Mexican Court's administration of the Concurso
proceeding," Judge Glenn said.

A copy of the preliminary injunction order is available for free
at http://bankrupt.com/misc/Mexicana_Orderpreliminjunction.pdf

Mexicana Airlines has already received several notices of default
under its various aircraft and spare engine leases as well as
notices to terminate those leases and ground the aircraft.  Many
of its aircraft were also seized in Canada and there were similar
attempts made in other areas.

Pursuant to the August 18 order, creditors or any concerned party
in the U.S. may only be allowed to take actions against the
company or its U.S.-based assets if there is an approval from the
Bankruptcy Court or the Mexican Court and if there is consent
from Maru Johansen, the company's foreign representative.

The court order, however, does not enjoin anyone from commencing
or continuing any action outside of the U.S. involving the
company or its assets.  If any person obtains judicial relief
from a foreign court and wants to obtain the same from the
Bankruptcy Court, that relief may only be granted upon prior
notice to the foreign representative.

The order also established Ms. Johansen as the representative of
Mexicana Airlines and gave her authority to administer the
company's assets in the U.S.  Both the company and its
representative were granted full protections and rights available
under Section 1519(a)(1)-(3) of the Bankruptcy Code.

Ms. Johansen and Mexicana Airlines were authorized to perform
their obligations in accordance with the Industry Agreements,
pursuant to which they are required to (i) honor and pay
outstanding claims arising in the ordinary course of business,
and (ii) to process customary payments or transfers and to honor
customary transfer requests made by Mexicana Airlines and other
participants.

The Industry Agreements include interline agreements,
clearinghouse agreements and billing and settlement agreements
administered by the International Air Transport Association, the
IATA Clearing House, the Airlines Clearing House Inc. and
Universal Air Travel Plan Inc.

The injunction will remain in effect until Mexicana Airlines'
insolvency case is recognized by the Bankruptcy Court as foreign
main proceeding.

Prior to the Court's entry of its Order, various groups including
leasing companies and lenders filed objections and motions for
relief from preliminary injunction.  These groups include:

A.  C.I.T. Leasing, et al.

C.I.T. Leasing Corporation and CIT Aerospace International
earlier blocked the approval of Mexicana Airlines' application
for preliminary injunction in a bid to seize the aircraft it
leased out to the company.

Mexicana Airlines allegedly breached its lease contracts with the
CIT entities after it failed to pay as much as US$5.1 million for
its use of the aircraft.  The contracts had either expired or had
been terminated by the CIT entities after the company defaulted
under the contracts.

The CIT entities argued that the company "had no continuing
possessory interest" in the aircraft when it filed its petitions,
and, thus, would not be harmed if forced to return the aircraft.

Only two of the eight aircraft being leased are expected to be
returned soon to the CIT entities in accordance with the lease
termination agreements the group reached with Mexicana Airlines.

B. Allied Aviation

Allied Aviation Fueling Company of San Antonio Inc. filed a
motion for relief from the temporary restraining order so that it
could suspend or discontinue its "fuel storage and into-plane
fuel services" to Mexicana Airlines.

Allied Aviation expressed concern that Mexicana Airlines may not
be able to meet its postpetition payment obligations in light of
the filing of its insolvency case.

C. Banco Mercantil

Banco Mercantil del Norte S.A. filed an objection seeking relief
from the preliminary injunction and demanding protection in
exchange for Mexicana Airlines' continued use of its cash
collateral.

Banco Mercantil is a lender of the company and is one of those
lenders exempted from the injunction granted earlier by the
Mexican Court.

In its objection, Banco Mercantil demanded the company to account
for the use of its cash collateral held in the bank's two deposit
accounts during the pendency of its insolvency case; to use the
cash in accordance with a budget agreeable to the bank; grant the
bank replacement liens and superpriority administrative priority
claims, among other things.

Mexicana Airlines owes Banco Mercantil about US$123.6 million
under an April 17, 2008 credit agreement.  Its obligations to the
bank are secured by the deposit accounts pledged in favor of its
collateral agent, Inter National Bank, as well as by their
proceeds.

Federico Santos Cernuda, legal director of Banco Mercantil, said
that Mexicana Airlines does not have equity in the funds since
the value of the cash collateral is well below what is owed by
the company to the bank.

D.  Flying Food

Flying Food Catering Inc. sought a court ruling holding that the
injunction does not bar it from either discontinuing its
postpetition services to Mexicana Airlines or requiring the
company to pay cash in advance for those services.

Flying Food provides the company catering and garbage removal
services at the O'Hare International Airport in Illinois.

E.  GE Capital Aviation

GE Capital Aviation Services Limited and its affiliates objected
to the scope of the TRO and the preliminary injunction, saying it
is "too broad" and exceed the purpose of Chapter 15 of the
Bankruptcy Code.

GE Capital is particularly opposed to the application of the
injunction to actions taken pursuant to orders of the Mexican
Courts that do not affect the U.S.-based assets of Mexicana
Airlines, and are not lawfully enjoined in its insolvency case.

F. Menzies Aviation

Menzies Aviation (USA) Inc. filed a motion seeking relief from
the TRO and demanding Mexicana Airlines to either assume or
reject their standard ground handling agreements or to provide
adequate assurance of future performance like changed terms for
payment.

Menzies Vice-President for Commercial and Corporate Services
Philip Harnden said Mexicana Airlines has failed and refused to
make payments due under the SGHA, and is in default under the
agreement.

G.  Integrated Airline

Integrated Airline Services Inc. objected to the imposition of
the injunction because it does not require Mexicana Airlines to
pay its ramp and passenger services under an agreement dated
October 1, 2009.

IAS asked the Bankruptcy Court to issue a ruling that the TRO or
any injunction does not prevent IAS from exercising its rights
under an agreement with Mexicana Airline.

H. Aviation Port

Aviation Port Services LLC, another supplier of Mexicana Airlines,
expressed concern that the injunction would require it to
continue performing under a 2009 standard ground handling
agreement without receiving advance payment or adequate assurance
of payment for its services.

I.  Aircraft Service

Aircraft Service International Inc. complained that its interest
is not sufficiently protected as required under bankruptcy law.
Aircraft Service asked the Bankruptcy Court either to deny
Mexicana Airlines' request for preliminary injunction or to
require the company to provide a US$300,000 security deposit or
cash-in-advance payment terms.

J. The Greater Orlando Aviation Authority, et al.

The Greater Orlando Aviation Authority, and a consortium of
airport authorities represented by New York-based Edwards Angell
Palmer & Dodge LLP, complained over the lack of notification
about Mexicana Airlines' request to insert provisions with
respect to the treatment of postpetition claims against the
company or the treatment of passenger facility charge trust
funds.  They sought a court ruling providing them postpetition
protections and benefits provided to other service providers and
counterparties to the contracts.

K. Servisair

Mexicana and Servisair LLC, Servisair USA Inc, Servisair & Shell
Fuel Services LLC are parties to several International Air
Transportation Association Standard Ground Handling Agreements.
However, Servisair clarifies that no agreement has been
negotiated or signed and thus, this service has been provided as
an accommodation only.

Servisair notes that the cancellation of Mexicana flights has
adversely affected its ability to continue to meet the cost of
its labor forces and equipment expenses.  Servisair is doubtful
that Mexicana will have enough money to pay it and similar
service providers who remain obligated under Court Order
to continue providing services.

Servisair, hence, filed a motion for relief from the TRO and ask
the Court to hold that it is allowed to discontinue the services
or in the alternative, for the Court to compel Mexicana to
provide adequate assurance of future performance like pre-
payment, or deposits for the benefit of the creditor.

John R. Guest, Servisair vice president and general counsel,
filed a declaration in support of the request.

L. EAST Trust

EAST Trust-Sub 12 filed a motion for relief from the TRO arguing
that a lease agreement between it and Mexicana was validly
terminated prior to Mexicana's Concurso Proceeding, and
therefore, any automatic stay is inapplicable to it.

L. Others

International Lease Finance Corp., Whitney Ireland Leasing
Limited and Calliope Limited filed a supplemental memorandum and
a declaration in support of their motion for relief from the TRO.
Both documents further address the issues over whether Mexicana
Airlines' possession of the aircraft makes the aircraft property
of its bankruptcy estate; whether the aircraft is property of the
estate under Mexican law, among other issues.

                   Court Addresses Objections

Pursuant to the August 18 court order, the Court held that Allied
Aviation, Flying Food, Menzies, Integrated Airline, Aviation
Port, Aircraft Service and the Servisair entities can discontinue
their services unless Mexicana Airlines meets certain conditions
that will provide sufficient protection to its suppliers.  These
conditions include maintaining the company's insurance coverage,
payment for postpetition goods and services, among other things.

In response to GE Capital's objection, the Bankruptcy Court
inserted a provision stating that the order does not enjoin
anyone from commencing or continuing any judicial, administrative
or other action outside of the U.S. involving Mexicana or its
assets.  The Bankruptcy Court, meanwhile, denied the motion by
East Trust-Sub 12 for relief from preliminary injunction.

The injunction does not apply to or does not enjoin Banco
Mercantil from exercising its rights and remedies against
Mexicana Airlines' U.S.-based assets arising under their
agreements, which include (i) the Credit Agreement dated
April 17, 2008, among Banorte, Mexicana, as an obligor, and
certain non-debtor affiliates of Mexicana parties (ii) Deposit
Account Security Agreement dated June 16, 2008, among Inter
National Bank, as collateral agent, Mexicana and Aerovias Caribe,
S.A. de C.V., as grantors, and (iii) the Collateral Agency
Agreement dated June 16, 2008, between Banorte and INB, the order
stated.

INB will remain subject to the court order, except to the extent
acting on instructions given to it by Banorte Mercantil
consistent with those agreements.  The court order does not
relieve any party's obligation to perform under the (i) June 12,
2002 agreement between U.S. Bank N.A. and Mexicana Airlines, and
(ii) the Terms and Conditions for Worldwide Acceptance of the
American Express Card By Airlines among Mexicana Airlines and
Aerovias Caribe S.A. de C.V., Grupo Mexicana de Aviacion S.A. de
C.V. and American Express Travel Related Services Company Inc.
dated May 10, 2006.

Nothing in the Bankruptcy Court's August 2 and 18 orders to Show
Cause with TRO, or in Section 362 of the Bankruptcy Code enjoins
or prevents Marco Aircraft Leasing Ltd., Wells Fargo Bank
Northwest N.A., AFT Trust-Sub I, Celestial Aviation Trading 43
Ltd., Celestial Aviation Trading 68 Ltd., Celestial Aviation
Trading 69 Ltd., International Lease Finance Corp., Calloipe
Ltd., Sierra Leasing Ltd. and Whitney Ireland Leasing Ltd. from
exercising their rights or remedies with respect to certain
assets.  A list of these assets is available for free at:

         http://bankrupt.com/misc/Mexicana_ListAssets.pdf

With respect to the objection of the airport authorities, the
Court held that the order does not prohibit Mexicana Airlines
from remitting fees and taxes that are not property of the
estate.  Mexicana has already confirmed to the Bankruptcy Court
that it recognizes and will fulfill all of its obligations
including its obligations to remit fees and taxes, and to
segregate and remit passenger facility charges to U.S. airports.

The hearing to consider the objection of Wells Fargo Bank, Marco
Aircraft and AeroTurbine with respect to certain spare parts and
engines owned by Aeroturbine as well as the objection of the CIT
entities was adjourned per agreement with Mexicana Airlines.  The
date of the hearing has not yet been determined.

Meanwhile, Pacific Fuel Trading Corp. withdrew its motion for
relief from the temporary restraining order after it reached an
agreement with Mexicana Airlines to resolve the motion.

                 Recognition of Concurso Proceeding

The hearing to consider Mexicana Airlines' motion for recognition
of its insolvency case as foreign main proceeding has been set
for September 8, 2010, at 11:00 a.m.   Deadline for filing
objections or responses is September 1, 2010, at 4:00 p.m.

                      About Mexicana Airlines

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.

Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two
other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and
Mexicana Inter S.A. de C.V. (Mexicana Link).

Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
August 2, 2010.  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.

Maru E. Johansen, foreign representative of Compania Mexicana,
estimated in the Chapter 15 petition that the company has assets
of US$500 million to US$1 billion and debts of more than
US$1 billion.  William C. Heuer, Esq., at Duane Morris LLP, serves
as counsel to Ms. Johansen.

Mexicana de Aviacion stated that despite its bankruptcy filing, it
expects to continue to operate normally, and that such filings

Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines
Bankruptcy News.  The newsletter tracks the chapter 11 proceedings
and the ancillary proceedings undertaken by Compania Mexicana de
Aviacion and its units.  (http://bankrupt.com/newsstand/or
215/945-7000).


MEXICANA AIRLINES: Suspends Some Services, To Return Planes
-----------------------------------------------------------
Mexicana Airlines said it is returning some aircraft and is
suspending some services offered by its low-cost and regional
units, according to an August 18, 2010, report by Dow Jones.

Adolfo Crespo, senior vice-president of customer service and
corporate communications, said the company is set to return eight
aircraft to leasing companies by the end of the week.  Mexicana
Airlines had already handed back seven aircraft, Dow Jones
reported.

An earlier report by Aviation Week, a trade publication, said
that Mexicana Airlines had agreed to return 27 Airbus aircraft to
leasing companies, including 12 to the General Electric Co.'s
aircraft leasing arm.

Mexicana has an operational fleet of 64 planes, but three had
already been grounded by their owners.

In another development, Grupo Mexicana, which controls the
company, said in a statement that flights operated by all three
of the group's airlines would be subject to changes from midnight
on August 18, 2010.  No destinations, however, would be canceled
as a result of the changes although fewer flights would be
available on certain routes, according to the statement.

Passengers are advised to visit www.cmainforms.com,
www.mexicana.com or contact Mexicana Airlines through twitter
@mexicanaair for further information.

                      About Mexicana Airlines

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.

Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two
other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and
Mexicana Inter S.A. de C.V. (Mexicana Link).

Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
August 2, 2010.  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.

Maru E. Johansen, foreign representative of Compania Mexicana,
estimated in the Chapter 15 petition that the company has assets
of US$500 million to US$1 billion and debts of more than
US$1 billion.  William C. Heuer, Esq., at Duane Morris LLP, serves
as counsel to Ms. Johansen.

Mexicana de Aviacion stated that despite its bankruptcy filing, it
expects to continue to operate normally, and that such filings

Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines
Bankruptcy News.  The newsletter tracks the chapter 11 proceedings
and the ancillary proceedings undertaken by Compania Mexicana de
Aviacion and its units.  (http://bankrupt.com/newsstand/or
215/945-7000).


VITRO SAB: Postpones Bond Consent Solicitation
----------------------------------------------
Vitro SAB de CV has postponed the launch of an application
consent, previously disclosed to be launched in early August, in
relation to its bonds with a rate of 8.625% interest due 2012,
11.75% in 2013 and 9.125% in 2017, The Financial Online reports.

According to the report, the company postponed the launch of the
application for consent until September 2010 because it is in
discussions with relevant creditors in both ends with the revision
of the terms and conditions of the same application.  The report
relates Vitro SAB said that it remains committed to deliver a
package, which includes cash and new tools, representing a
significant increase in the recovery of the creditors of the level
of historical price of the bonds.

In addition, the report says, the proposed structure was developed
in order to ensure financial sustainability and competitiveness of
Vitro in the long term, which should have a positive impact on the
future value of structured debt.

                          About Vitro SAB

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.

                           *     *     *

In June 2010, Fitch Ratings withdrew all ratings of Vitro, S.A.B.
de C.V., given the lack of information following the company's
default on Feb. 2, 2009, and consistent with Fitch's policies.
Fitch will no longer provide ratings or credit research on the
Company.  Andres R. Martinez at Bloomberg News said in June that
Vitro was suspended from trading in Mexico City after failing to
file its fourth-quarter earnings report.  The company missed the
June 2 deadline for the results, Mexico's stock exchange said in
an e-mailed statement obtained by the news agency.  Vitro plans to
file the report once its debt restructuring is complete or if
ordered by a judge.  Vitro said that the suspension won't affect
company operations.

On June 30, 2009, Galaz, Yamazaki, Ruiz Urquiza, S.C., member of
Deloitte Touche Tohmatsu and C.P.C. Jorge Alberto Villarreal in
Monterrey, N.L., Mexico raised substantial doubt about the
Company's ability to continue as a going concern after auditing
financial results for the period ended Dec. 31, 2007, and 2008.
The auditors pointed out to the Company's net loss and its non-
compliance with covenants related to its long-term debt
obligations.


===============
P A R A G U A Y
===============


VISION BANCO: S&P Raises Counterparty Credit Rating to 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its
counterparty credit rating on Vision Banco S.A.E.C.A. to 'B+' from
'B', in tandem with the sovereign upgrade on the Republic of
Paraguay.  S&P also revised the outlook to positive from stable.

The sovereign upgrade on Paraguay reflects the gradual
strengthening of Paraguay's economic fundamentals, as well as its
greater political stability over the past three years.  The
sovereign upgrade, along with the upgrade on Vision, reflects the
close linkage between the sovereign and financial system credit
quality in Paraguay.

"The positive outlook reflects S&P's expectation that despite
Paraguay's still-high operating and sovereign risks, its recent
measures to consolidate its strategic position among banks will
enable Vision to continue to improve its present competitive
position," said Standard & Poor's credit analyst Delfina Cavanagh.
"S&P believes Vision will be able to achieve this without its
credit portfolio significantly deteriorating," she continued.

Potential for a higher rating is limited due to the close linkage
between the sovereign and financial system credit quality.  A
sovereign upgrade would positively affect S&P's rating on Vision.
Alternatively, if Paraguay's economy experienced a major decline
or if Vision's capitalization level or asset quality deteriorated,
S&P could lower the rating.


====================
P U E R T O  R I C O
====================


CARIBBEAN PETROLEUM: Gets Interim Nod for US$10MM DIP Financing
---------------------------------------------------------------
Caribbean Petroleum Corp., et al., sought and obtained interim
authorization from the U.S. Bankruptcy Court for the District of
Delaware to obtain postpetition secured financing from Banco
Popular de Puerto Rico and to use cash collateral.

The DIP Lender has committed to provide up to US$10,000,000 non-
revolving, multi-draw credit sub-facility.  A copy of the DIP term
sheet is available for free at:

   http://bankrupt.com/misc/CARIBBEAN_PETROLEUM_diptermsheet.pdf

Mark D. Collins, Esq., and Jason M. Madron, Esq., at Richards,
Layton & Finger, P.A., explain that the Debtors need the DIP
financing to fund the marketing for a sale of all or substantially
all assets of the Debtors, rehabilitation, the DIP Lender's
monthly interest, out-of-pocket costs, fees, and expenses related
to the DIP Facility, employee wages and general corporate
purposes, payment of professional fees of counsel and financial
advisors to the Debtors and the statutory committee of unsecured
creditors appointed in the Chapter 11 cases, adequate protection
payments, adequate assurance deposit for the Debtors' utility
providers, and payment of quarterly fees to the U.S. Trustee.

The DIP facility will mature (i) 25 days after entry of interim
order if the final dip order have not been entered by the court
and the amendment have not been executed and delivered by the DIP
borrowers to the postpetition lender; (ii) consummation of any
consensual or nonconsensual chapter 11 plan or liquidation of or
for the dip borrowers; or (iii) 180 days after the dip closing
date.

The DIP Facility will incur interest at 8.00% per annum, payable
monthly in arrears not later than the first day of each calendar
month and will be calculated on the basis of a 360-day year and
actual days elapsed.  In the event of default, the Debtors will
pay an additional 2% default interest per annum.

The DIP Facility will be afforded certain liens and claims,
including limited priming liens and superpriority claims on
property of the estate.

The Debtors are authorized to use cash collateral, in addition to
obtaining DIP financing.  As adequate protection, the Debtors will
grant the prepetition lender, among other things, additional
replacement liens, superpriority claims, repayment from
unencumbered assets, payment of all reasonable professional fees
and expenses incurred by the prepetition lender in connection with
the administration of the Chapter 11 cases, and the right to
credit bid, payment of insurance proceeds.

The Court has set a final hearing for September 8, 2010, at
12:30 p.m., Eastern Daylight Time, on the Debtors' request to be
allowed to obtain DIP financing.

                     About Caribbean Petroleum

San Juan, Puerto Rico-based Caribbean Petroleum Corporation, aka
CAPECO, owns and operates certain facilities in Bayomon, Puerto
Rico for the import, offloading, storage and distribution of
petroleum products.

Cribbean Petroleum filed for Chapter 11 protection (Bankr. D. Del.
Case No. 10-12553) on August 12, 2010, nearly 10 months after a
massive explosion at its major Puerto Rican fuel storage depot
virtually shut down the company's operations.  The Debtor
estimated its assets at US$100 million to US$500 million and its
debts at US$500 million to US$1 billion as of the Petition Date.

Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum
Refining (Puerto Rico) Corporation filed separate Chapter 11
petitions on August 12, 2010.

Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., serves
as counsel to the Debtors.  The Debtors' co-counsel is Cadwalader,
Wickersham & Taft LLP.  The Debtors' financial advisor is FTI
Consulting Inc.  The Debtors' chief restructuring officer is Kevin
Lavin of FTI Consulting Inc.


CARIBBEAN PETROLEUM: Puerto Rico Gov't Seeks Venue Transfer
----------------------------------------------------------
Patrick Fitzgerald at Dow Jones Daily Bankruptcy Review reports
that Puerto Rican officials want Caribbean Petroleum Corp.'s
bankruptcy case moved from Delaware to San Juan, claiming the
cleanup of environmental damage caused by a massive explosion at
the company's storage facility is of the "highest public interest"
to the island's citizens.

According to Dow Jones, Puerto Rico's treasury secretary said
Thursday that "the interests of justice and the convenience of the
parties" support the transfer of the privately held oil-and-gas
distributor's Chapter 11 case to Puerto Rico.

"The healthy completion of the cleanup of the devastating effects
of the explosions is a matter of the highest public interest in
Puerto Rico," lawyers for the secretary of the Treasury said in a
court filing Thursday, according to Dow Jones.

Dow Jones notes a catastrophic explosion on Oct. 23, 2009,
destroyed much of the company's Bayamon storage facility and
rocked the San Juan area.  According to the company's finance
chief, the explosions dealt the company a blow from which it never
recovered.  The explosions also had a dramatic impact on Puerto
Rico, leaving behind significant environmental damage and cleanup
costs.  The Environmental Protection Agency has barred the company
from using its surviving facilities pending an inspection.

Dow Jones says prior to the explosions, Caribbean Petroleum's
pipelines delivered more than two-thirds of the jet fuel used at
San Juan International airport as well as supplying the Puerto
Rico Electric Power Authority, the government entity that provides
electricity to the island's people.  Moreover, more than 90% of
the company's creditors are in Puerto Rico, according to court
papers.

Dow Jones notes the Debtor is also facing more than two dozen
lawsuits in Puerto Rico for, among other claims, property damage
and injuries. Caribbean Petroleum estimates that plaintiffs in
these suits are seeking more than US$455 million.

"There is significant local interest in having such disputes
resolved by a bankruptcy court in Puerto Rico," the officials
said, according to Dow Jones.

Dow Jones notes a lawyer for Caribbean Petroleum couldn't
immediately be reached for comment.

Dow Jones says Judge Kevin Gross will consider the request to move
the case to Puerto Rico at a hearing Sept. 8.

The Debtor is selling such assets as a network of Gulf-branded
service stations, six pipelines and a deepwater dock in San Juan
Harbor.  The sales are being conducted without the benefit of a
stalking horse, a lead bidder that sets a floor price for the
assets on the block.

Dow Jones notes the Debtor owes Banco Popular de Puerto Rico
US$137 million, and the bank holds a lien on virtually all the
company's assets.  Caribbean Petroleum said it will allow the bank
to "credit bid" its secured debt, meaning the bank debt could
serve as a de facto stalking-horse bid.

                     About Caribbean Petroleum

San Juan, Puerto Rico-based Caribbean Petroleum Corporation, aka
CAPECO, owns and operates certain facilities in Bayomon, Puerto
Rico for the import, offloading, storage and distribution of
petroleum products.

Cribbean Petroleum filed for Chapter 11 protection (Bankr. D. Del.
Case No. 10-12553) on August 12, 2010, nearly 10 months after a
massive explosion at its major Puerto Rican fuel storage depot
virtually shut down the company's operations.  The Debtor
estimated its assets at US$100 million to US$500 million and its
debts at US$500 million to US$1 billion as of the Petition Date.

Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum
Refining (Puerto Rico) Corporation filed separate Chapter 11
petitions on August 12, 2010.

Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., serves
as counsel to the Debtors.  The Debtors' co-counsel is Cadwalader,
Wickersham & Taft LLP.  The Debtors' financial advisor is FTI
Consulting Inc.  The Debtors' chief restructuring officer is Kevin
Lavin of FTI Consulting Inc.


FIRST BANCORP: Reveals Relevant Price & Exchange Ratios for Offer
-----------------------------------------------------------------
First BanCorp. has determined the Relevant Price and Exchange
Ratios in connection with its previously communicated offer to
exchange up to 256,401,610 newly issued shares of its common
stock, par value US$1.00 per share, for any and all of the issued
and outstanding shares of Non-Cumulative Perpetual Monthly Income
Preferred Stock, Series A through E.

In accordance with the terms of the Exchange Offer, as set forth
in the Corporation's Preliminary Prospectus, dated August 18,
2010, and related letter of transmittal, the Corporation has
determined the Relevant Price and Exchange Ratios for the
Preferred Stock referred to below.  The Relevant Price is US$1.18,
which is the Minimum Share Price.

The expiration date for the Exchange Offer is 11:59 p.m., New York
City time, on Tuesday, August 24, 2010, unless the Corporation
extends the Exchange Offer or terminates it prior to that date.

For each share of Preferred Stock accepted in accordance with the
terms of the Exchange Offer, the Corporation will issue a number
of shares of its Common Stock equal to the "Exchange Ratio," which
is the Exchange Value set forth in the table below divided by the
Relevant Price of US$1.18.  The closing sale price for a share of
Common Stock on the New York Stock Exchange on August 20, 2010 was
US$0.51, which is less than the Relevant Price.

To receive the consideration in the Exchange Offer, holders must
validly tender and not withdraw their shares of Preferred Stock
prior to the expiration date, and such shares must be accepted for
exchange.  The Corporation intends to deliver the consideration
for the shares that are tendered and accepted in the Exchange
Offer on or about August 27, 2010.

The dealer manager for the Exchange Offer is UBS Investment Bank,
which can be contacted at (888) 719-4210.

The Corporation has filed a registration statement, a preliminary
prospectus and related exchange offer materials with the
Securities and Exchange Commission for the exchange offer to which
this communication relates.

                       About First BanCorp

First BanCorp is the parent corporation of FirstBank Puerto Rico,
a state-chartered commercial bank with operations in Puerto Rico,
the Virgin Islands and Florida, and of FirstBank Insurance Agency.
First BanCorp and FirstBank Puerto Rico operate under U.S. banking
laws and regulations.  The Corporation operates a total of 175
branches, stand-alone offices and in-branch service centers
throughout Puerto Rico, the U.S. and British Virgin Islands, and
Florida.  Among the subsidiaries of FirstBank Puerto Rico are
First Federal Finance Corp., a small loan company; First Leasing
and Rental Corp., a leasing company; FirstBank Puerto Rico
Securities, a broker-dealer subsidiary; First Management of Puerto
Rico; and FirstMortgage, Inc., a mortgage origination company. In
the U.S. Virgin Islands, FirstBank operates First Insurance VI, an
insurance agency, and First Express, a small loan company.  First
BanCorp's common and publicly-held preferred shares trade on the
New York Stock Exchange under the symbols FBP, FBPPrA, FBPPrB,
FBPPrC, FBPPrD and FBPPrE.

                           *     *     *

As of June 18, 2010, the bank continues to carry Standard & Poor's
"CCC+" long-term issuer credit ratings.

As reported by the Troubled Company Reporter on June 21, 2010,
FirstBank Puerto Rico agreed to a Consent Order with the Federal
Deposit Insurance Corporation and the Office of the Commissioner
of Financial Institutions of Puerto Rico and that First BanCorp
agreed to enter into a written agreement with the Federal Reserve
Bank of New York.  FirstBank and the Corporation have agreed to
take certain actions intended to address various matters,
including among others, the development and adoption of a plan to
attain certain capital levels, and the reduction of non-performing
and classified assets that have impacted FirstBank's financial
condition and performance.


==========================
V I R G I N  I S L A N D S
==========================


INNOVATIVE COMM: Last-Minute Court Ruling Delays Asset Sale
-----------------------------------------------------------
Joy Blackburn at Virgin Islands Daily News reports that on
August 17, 2010, a federal bankruptcy court judge issued an order
clearing the way for the sale of Innovative Communication Corp.'s
telephone and cable companies, and on the same day a Virgin
Islands Superior Court judge granted a stay on the V.I. Public
Services Commission order that authorized the transfer.

According to the report, PSC Chairman Joseph Boschulte said that
he was not sure what the next step would be -- although it would
involve lawyers.  "I expect to meet with our council to understand
the potential impact of each order and the orders together," the
report quoted Mr. Boschulte as saying.

The report notes U.S. Bankruptcy Judge Judith Fitzgerald issued an
order giving final approval for the National Rural Utilities
Cooperative Finance Corporation to take over the phone and cable
companies.  In her ruling, Judge Fitzgerald found that former ICC
owner and chief executive Jeffrey Prosser, who filed an objection
to the motion for the sale, did not have the legal standing to do
so because any ownership interest he had in the corporation is now
the property of his bankruptcy estate, the report relates.
Nonetheless, after his objection was filed, Mr. Prosser was
allowed to participate in the proceedings and in a hearing that
was conducted in July, Judge Fitzgerald said, the report notes.

The report says that Mr. Prosser's objection made multiple
allegations about the impropriety of the sale.  In her ruling,
Judge Fitzgerald said that despite her determination that Mr.
Prosser was without legal standing to object, she considered the
arguments his attorneys raised and the testimony at the hearing,
the report relates.  "The Court has analyzed each allegation
raised by Jeffrey Prosser as though he had standing and finds that
his objections are without merit and there is no basis on which to
deny the sale motion.  Due process was satisfied," Judge
Fitzgerald wrote in a footnote of the ruling, the report says.

On May 5, the report notes, PSC, the regulatory agency for public
utilities in the territory, approved National Rural Utilities
Cooperative Finance Corporation's bid to take over the telephone
and cable companies.

In June, attorney Jeffrey Moorhead, Mr. Prosser, and his wife,
Dawn Prosser, asked the PSC to reconsider its decision, contending
that major irregularities had occurred in the PSC transfer of
control process, as well as in the bankruptcy proceedings.  The
PSC did not take any action on the request.

On July 7, the report relates, the Prossers and Mr. Moorhead
petitioned the V.I. Superior Court, appealing the PSC order.

On August 17, 2010, the report says, the same day that Judge
Fitzgerald entered her order -- V.I. Superior Court Judge Harold
Willocks granted an emergency request by the Prossers and Mr.
Moorhead for an immediate stay of the PSC's May 5 order
authorizing the transfer of control.

Judge Willocks scheduled a status conference on the matter for
September 17.

The timing of the two orders, in the two separate proceedings, in
two separate courts, was not completely clear from the documents
Virgin Islands Daily News had available.

However, the report relates, in her 30-page ruling, Judge
Fitzgerald notes that she is not aware of any stay of the PSC
order.  Judge Fitzgerald said that while local law allows for a
stay of the commission's order between the time a hearing on the
appeal is scheduled and the actual date of the hearing, there is
no provision to stay the order simply because a petition is filed,
the report adds.

                  About Innovative Communications

Innovative Communications Corporation provides landline and mobile
telephone, DSL and cable television services in the United States
Virgin Islands. It also operates cable TV services in Sint
Maarten, Martinique, Guadeloupe, the British Virgin Islands, and
France.


                            ***********

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
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