/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100827.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, August 27, 2010, Vol. 11, No. 169 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Owner Drew on Investor Money, Trial Witness Says STANFORD INT'L: Ex-Chief Investment Officer Settles With Lloyd's A R G E N T I N A COMPSUD SRL: Creditors' Proofs of Debt Due on October 1 IMPRESSION SA: Creditors' Proofs of Debt Due on September 21 INDUSTRIA PUBLICITARIA: Creditors' Proofs of Debt Due on Sept. 23 C A Y M A N I S L A N D S ALPHA CAPITAL: Shareholders' Final Meeting Set for September 6 ANCHORAGE SHORT: Shareholders' Final Meeting Set for September 17 ANTHRACITE MASTER: Shareholders' Final Meeting Set for Sept. 6 BAYSHORE FLOATING: Shareholders' Final Meeting Set for Sept. 17 CAP 17: Shareholders' Final Meeting Set for September 17 CHILDREN'S INVESTMENT: Members' Final Meeting Set for Sept. 16 CLARIUM CAPITAL: Shareholders' Final Meeting Set for September 23 EATON VANCE: Shareholders' Final Meeting Set for September 17 FINSBURY ASSET: Shareholders' Final Meeting Set for September 16 HORSEMAN EMERGING: Members' Final Meeting Set for September 23 IFIT VOLTA: Shareholders' Final Meeting Set for October 4 INVESTCORP MINI-FUND: Shareholders' Final Meeting Set for Sept. 28 KBC FP: Shareholders' Final Meeting Set for September 17 KENMAR GLOBAL: Shareholders' Final Meeting Set for September 17 MANCHESTER TRUSTEES: Shareholders' Final Meeting Set for Sept. 17 MIDORI CDO: Shareholders' Final Meeting Set for September 17 NISR 3: Shareholders' Final Meeting Set for September 17 ONSLOW GLOBAL: Shareholders' Final Meeting Set for September 17 PAN-STRATEGIES FUND: Shareholders' Final Meeting Set for Sept. 24 SANDAKAN INVESTMENTS: Shareholders' Final Meeting Set for Sept. 17 TRICO MARINE: Files for Chapter 11 Protection in U.S. TRICO MARINE: Case Summary & 40 Largest Unsecured Creditors D O M I N I C A N R E P U B L I C CARIBAIR: Plus Int'l Seizes Four Aircraft on Unpaid US$1.5MM Debt CERVECERIA NACIONAL: S&P Downgrades Corporate Credit Rating to 'B' J A M A I C A CIGARETTE COMPANY OF JAMAICA: Demands Tax Dispute Settlement PETROLEUM CORPORATION OF JAMAICA: Still Without Board of Directors M E X I C O FUNDACION INTEGRAL: S&P Assigns 'BB-/B' Global Counterparty Rating SANLUIS CORPORACION: Sanluis Co-Inter Unit Files for Bankruptcy VITRO SAB: Trust Fund Sells Real Estate Assets for US$63.8 Million P U E R T O R I C O FIRST BANCORP: Reveals Preliminary Results of Exchange Offer T R I N I D A D & T O B A G O PETROTRIN: World GTL's Lawsuit Against Firm Put on Hold V I R G I N I S L A N D S BERNARD MADOFF: Judge Seeks Money Held by Gibraltar for Hedge Fund X X X X X X X X * Homebuilders More Likely to Use Covenant Lite Package - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Owner Drew on Investor Money, Trial Witness Says ---------------------------------------------------------------- Lloyd's of London underwriters are attempting to convince U.S. District Judge Nancy Atlas that financier Robert Allen Stanford conspired to steal money so they can avoid paying attorneys to defend him on criminal fraud charges, Ellen Rosen at Bloomberg News reports. Judge Nancy Atlas began hearing evidence on August 24, 2010, in Houston federal court in a three-day civil trial conducted without a jury in Mr. Stanford's lawsuit against the London-based insurers. According to a separate Bloomberg report, Lloyd's of London witness forensic accountant Alan Westheimer testified that the US$1.6 billion that Mr. Stanford allegedly skimmed from investors was borrowed from Stanford International Bank Limited as loans to startup entities and other businesses Mr. Stanford controlled. According to the report, Mr. Westheimer said that Stanford Financial Group Companies Chief Accountant Gilbert Lopez and comptroller Mark Kuhrt, who hired him after they were indicted in June 2009, told him this year they thought the borrowing should have been publicly disclosed. "The funds were being passed through as inter-company loans to the entities that were the recipients of the shareholder loans" the report quoted Mr. Westheimer as saying. "Within a short period, usually six months, Mr. Stanford would assume those loans and the recipient companies transferred those balances to their," he added. The report relates a second forensic accountant who testified, Mark Berenblut, was also a witness for Lloyd's of London. "Basically, the underwriters sought to convict their own insureds," Lee Shidlofsky, a lawyer for Stanford's colleagues, said in an e-mail obtained by the news agency. "And by doing so, underwriters undermined the very essence of the protections afforded by a directors' and officers' policy," he added, the report relates. As reported in the Troubled Company Reporter-Latin America on November 26, 2009, Caribbean Net News said that Mr. Stanford and his former executives sued Lloyd's of London for defense costs. The report related that Lloyd's had advanced some legal fees under a directors and officers policy but the insurer sent a letter on Nov. 16 declining to extend coverage for beyond August 27. According to Bloomberg News, Lloyd's of London said that the admission made by former Stanford International Bank Limited Chief Financial Officer, James "Jim" Davis when he pleaded guilty relieves the insurance syndicate of the obligation to pay defense costs for Mr. Stanford and his codefendants. The report related that Lloyd's lawyers told U.S. District Court Judge David Hittner that the statements reveal criminal activity that takes the defendants actions outside the terms of their directors' and officers' insurance coverage. About Stanford International Bank Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, 2009, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June 2009, before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money- laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57- page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342 (S.D. Tex.). The civil case is SEC v. Stanford International Bank, 09-cv-00298 (N.D. Tex.). STANFORD INT'L: Ex-Chief Investment Officer Settles With Lloyd's ---------------------------------------------------------------- Patsy R. Brumfield at Northeast Mississippi Daily Journal reports that former Stanford Financial Group Chief Investment Officer Laura Pendergest-Holt has settled with insurer Lloyd's of London over paying to defend herself on charges she was involved with the international scandal that took down the company. According to the report, U.S. District Judge Nancy Atlas told her Houston, Texas, courtroom about Ms. Holt's settlement, but neither she nor Ms. Holt's attorneys gave any other details. As reported in the Troubled Company Reporter-Latin America on November 26, 2009, Caribbean Net News said that Mr. Stanford and his former executives sued Lloyd's of London for defense costs. The report related that Lloyd's had advanced some legal fees under a directors and officers policy but the insurer sent a letter on Nov. 16 declining to extend coverage for beyond August 27. According to Bloomberg News, Lloyd's of London said that the admission made by former Stanford International Bank Limited Chief Financial Officer, James "Jim" Davis when he pleaded guilty relieves the insurance syndicate of the obligation to pay defense costs for Mr. Stanford and his codefendants. The report related that Lloyd's lawyers told U.S. District Court Judge David Hittner that the statements reveal criminal activity that takes the defendants actions outside the terms of their directors' and officers' insurance coverage. About Stanford International Bank Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, 2009, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June 2009, before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money- laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57- page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342 (S.D. Tex.). The civil case is SEC v. Stanford International Bank, 09-cv-00298 (N.D. Tex.). ================= A R G E N T I N A ================= COMPSUD SRL: Creditors' Proofs of Debt Due on October 1 ------------------------------------------------------- The court-appointed trustee for Compsud S.R.L.'s reorganization proceedings, will be verifying creditors' proofs of claim until October 1, 2010. The trustee will present the validated claims in court as individual reports on November 4, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on December 21, 2010. IMPRESSION SA: Creditors' Proofs of Debt Due on September 21 ------------------------------------------------------------ The court-appointed trustee for Impression S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until September 21, 2010. The trustee will present the validated claims in court as individual reports on November 3, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on December 16, 2010. INDUSTRIA PUBLICITARIA: Creditors' Proofs of Debt Due on Sept. 23 ----------------------------------------------------------------- The court-appointed trustee for Industria Publicitaria Acierto S.A.'s reorganization proceedings, will be verifying creditors' proofs of claim until September 23, 2010. The trustee will present the validated claims in court as individual reports on November 8, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on December 21, 2010. ========================== C A Y M A N I S L A N D S ========================== ALPHA CAPITAL: Shareholders' Final Meeting Set for September 6 -------------------------------------------------------------- The shareholders of Alpha Capital Commodity Master Fund Ltd. will hold their final meeting, on September 6, 2010, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuart Sybersma c/o Jennifer Chailler Deloitte & Touche P.O. Box 1787, Grand Cayman KY1-1109 Cayman Islands Telephone: (345) 949-7500 Facsimile: (345) 949-8258 ANCHORAGE SHORT: Shareholders' Final Meeting Set for September 17 ----------------------------------------------------------------- The shareholders of Anchorage Short Credit Offshore Fund II, Ltd. will hold their final meeting, on September 17, 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: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town Grand Cayman KY1-9002 Cayman Islands ANTHRACITE MASTER: Shareholders' Final Meeting Set for Sept. 6 -------------------------------------------------------------- The shareholders of Anthracite Master Company (5) Limited will hold their final meeting, on September 6, 2010, at 4:00 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 BAYSHORE FLOATING: Shareholders' Final Meeting Set for Sept. 17 --------------------------------------------------------------- The shareholders of Bayshore Floating Rate Senior Loan Fund III Limited will hold their final meeting, on September 17, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands CAP 17: Shareholders' Final Meeting Set for September 17 -------------------------------------------------------- The shareholders of CAP 17 SPC, Ltd. will hold their final meeting, on September 17, 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: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town Grand Cayman KY1-9002 Cayman Islands CHILDREN'S INVESTMENT: Members' Final Meeting Set for Sept. 16 -------------------------------------------------------------- The shareholders of The Children's Investment Segregated Fund will hold their final meeting, on September 16, 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 Cayman Islands CLARIUM CAPITAL: Shareholders' Final Meeting Set for September 23 ----------------------------------------------------------------- The shareholders of Clarium Capital (Cayman) Ltd. will hold their final meeting, on September 23, 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: Richard Finlay c/o Tania Dons Telephone: (345) 814-7766 Facsimile: (345) 945-3902 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands EATON VANCE: Shareholders' Final Meeting Set for September 17 ------------------------------------------------------------- The shareholders of Eaton Vance Variable Leverage Fund Ltd. will hold their final meeting, on September 17, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands FINSBURY ASSET: Shareholders' Final Meeting Set for September 16 ---------------------------------------------------------------- The shareholders of Finsbury Asset Funding Limited will hold their final meeting, on September 16, 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: Darren Riley c/o Ellen J. Christian Telephone: 345 945-9208 Facsimile: 345 945-9210 c/o BNP Paribas Bank & Trust Cayman Limited Royal Bank House, 3rd Floor Shedden Road George Town, Grand Cayman Cayman Islands HORSEMAN EMERGING: Members' Final Meeting Set for September 23 -------------------------------------------------------------- The members of Horseman Emerging Market Opportunities Fund 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 Cayman Islands IFIT VOLTA: Shareholders' Final Meeting Set for October 4 --------------------------------------------------------- The shareholders of Ifit Volta Fund will hold their final meeting, on October 4, 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: Philip Mosely Paul Travers PO Box 1569, George Town Grand Cayman KY1-1110 Cayman Islands Tel: 949 4018 Facsimile: 949 7891 e-mail: general@caymanmanagement.ky INVESTCORP MINI-FUND: Shareholders' Final Meeting Set for Sept. 28 ------------------------------------------------------------------ The shareholders of Investcorp Mini-Fund 12 Limited will hold their final meeting, on September 28, 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: Westport Services Ltd. c/o Bonnie Willkom Telephone: (345) 949-5122 Facsimile: (345) 949-7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands KBC FP: Shareholders' Final Meeting Set for September 17 -------------------------------------------------------- The shareholders of KBC FP International VI Ltd. will hold their final meeting, on September 17, 2010, at 11:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town Grand Cayman KY1-9002 Cayman Islands KENMAR GLOBAL: Shareholders' Final Meeting Set for September 17 --------------------------------------------------------------- The shareholders of Kenmar Global Opportunities Fund SPC Limited will hold their final meeting, on September 17, 2010, at 11:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town Grand Cayman KY1-9002 Cayman Islands MANCHESTER TRUSTEES: Shareholders' Final Meeting Set for Sept. 17 ----------------------------------------------------------------- The shareholders of Manchester Trustees Limited will hold their final meeting, on September 17, 2010, at 12:15 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street George Town Grand Cayman KY1-9002 Cayman Islands MIDORI CDO: Shareholders' Final Meeting Set for September 17 ------------------------------------------------------------ The shareholders of Midori CDO, Ltd will hold their final meeting, on September 17, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands NISR 3: Shareholders' Final Meeting Set for September 17 -------------------------------------------------------- The shareholders of NISR 3 Limited will hold their final meeting, on September 17, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands ONSLOW GLOBAL: Shareholders' Final Meeting Set for September 17 --------------------------------------------------------------- The shareholders of Onslow Global Fund, Ltd. will hold their final meeting, on September 17, 2010, at 11:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town Grand Cayman KY1-9002 Cayman Islands PAN-STRATEGIES FUND: Shareholders' Final Meeting Set for Sept. 24 ----------------------------------------------------------------- The shareholders of Pan-Strategies Fund Limited will hold their final meeting, on September 24, 2010, at 9:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Linburgh Martin Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KYI-1102 Cayman Islands SANDAKAN INVESTMENTS: Shareholders' Final Meeting Set for Sept. 17 ------------------------------------------------------------------ The shareholders of Sandakan Investments Ltd. will hold their final meeting, on September 17, 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: C.I. Directors Ltd. Telephone: (345) 943-2237 Facsimile: (345) 949-6096 P.O. Box 1110, Grand Cayman KY1-1102 Cayman Islands TRICO MARINE: Files for Chapter 11 Protection in U.S. ----------------------------------------------------- Trico Marine Services, Inc.'s U.S. companies and its Cayman Islands holding company have filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware. Aside from the Cayman Islands holding company, Trico's foreign subsidiaries were not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Trico's U.S. and worldwide operations are expected to continue without interruption during the restructuring process. Chairman of the Board of Directors, President and Chief Executive Officer, Richard A. Bachmann commented, "Over the last several months, we have worked diligently to improve our liquidity, including through the sale of US$3 million of non-core assets, the sale of a North Sea class vessel for US$16 million and additional cost-cutting initiatives. While we are beginning to see indications of improved operational performance, the combination of a sluggish economy, a highly leveraged balance sheet and imminent interest payments due, has led us to determine that a court-supervised restructuring is the best course of action for the Company and its stakeholders. While we are continuing discussions with our lenders, the Board decided to begin this process now in order to get the Company's restructuring underway without delay. We intend to move through this process as quickly as possible. Throughout the restructuring process, we will remain focused on operating our business worldwide while continuing our efforts to manage costs, strengthen our balance sheet and gain financial flexibility in order to position Trico as a strong and profitable competitor in our industry." In conjunction with the filing, Trico has received a commitment for up to US$35 million in debtor-in-possession financing from Tennenbaum DIP Opportunity Fund and other funds managed by Tennenbaum Capital Partners, LLC (collectively, "Tennenbaum"), of which US$10 million will represent incremental liquidity. The Company expects that, upon Court approval and satisfaction of other customary conditions, the DIP financing, combined with cash from the Company's ongoing operations, will provide funding to support the business. In addition, the Company anticipates that it will meet its obligations going forward to its employees, customers and suppliers. Separately, the Company announced that Trico Shipping AS and its affiliates have reached an agreement in principle for US$22 million in senior secured multi-draw term loan financing from certain holders of its 11 7/8% Senior Secured Notes (the "Trico Shipping Notes") representing approximately 80% of the Trico Shipping Notes and Tennenbaum. The closing of this financing arrangement is subject to obtaining required consents, as well as certain other closing conditions of Trico Shipping AS and its affiliates. This financing would be used to fund operating expenses and other working capital needs. "We look forward to working together with all of our stakeholders to complete a successful financial restructuring," said Mr. Bachmann. "Our global operations are expected to continue without interruption throughout the restructuring process, and we remain committed to providing our customers with high quality service. We appreciate the ongoing dedication of all our employees, whose hard work is critical to our success and the future of the Company." Trico will file a series of motions with the Court to ensure the continuation of normal operations, including requesting Court approval to continue paying employee wages and salaries and providing employee benefits without interruption and to continue use of its bank accounts and insurance policies. The Company expects the Court to approve these requests. During the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the U.S. Bankruptcy Code, and Trico has taken steps to ensure continued supply of goods and services to its customers. Trico has established a toll-free Restructuring Information Hotline for employees, suppliers, customers, investors and other interested parties, in the United States at 1-888-369-8929 or internationally at 214-647-7656. More information is also available on Trico's website, http://www.tricomarine.com/where the Company has set up a special restructuring section. For access to Court documents and other general information about the Chapter 11 cases, please visit http://dm.epiq11.com/trico/ About Trico Marine Group The Trico Marine Group is an integrated provider of subsea, trenching and marine support vessels and services. Trico's towing and supply division provides a broad range of marine support services to the oil and gas industry through use of its diversified fleet of vessels including the transportation of drilling materials, supplies and crews to drilling rigs and other offshore facilities; towing drilling rigs and equipment, and support for the construction, installation, repair and maintenance of offshore facilities. Trico's subsea services and trenching/installation divisions control a well equipped fleet of vessels and operate a fleet of modern ROVs and trenching and other subsea protection equipment. The Trico Marine Group is headquartered in The Woodlands, Texas and has a global presence with operations in the North Sea, West Africa, Mexico, Brazil and Southeast Asia. TRICO MARINE: Case Summary & 40 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Trico Marine Services, Inc. 10001 Woodlock Forest Drive, Suite 610 The Woodlands Texas, TX 77380 Bankruptcy Case No.: 10-12653 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Trico Marine Assets, Inc. 10-12648 Trico Marine Operators, Inc. 10-12649 Trico Marine International, Inc. 10-12650 Trico Marine Cayman, L.P. 10-12651 Trico Holdco, LLC 10-12652 Type of Business: Trico Marine Services, Inc., is an integrated provider of subsea services, subsea trenching and protection services, and towing and supply vessels. Web site: http://www.tricomarine.com Chapter 11 Petition Date: August 25, 2010 Bankruptcy Court: U.S. Bankruptcy Court District of Delaware Debtors' Counsel: John E. Mitchell, Esq. Angela B. Degeyter, Esq. VINSON & ELKINS LLP Trammell Crow Center 2001 Ross Avenue, Suite 3700 Dallas, TX 75201 Phone: (214) 220-7700 Fax: (214) 220-7716 Web site: http://www.velaw.com Harry A. Perrin, Esq. VINSON & ELKINS LLP First City Tower 1001 Fannin Street, Suite 2500 Houston, TX 77002-6760 Tel: (713) 758-2222 Fax: (713) 758-2346 Web site: http://www.velaw.com Debtors' Delaware Counsel: Robert J. Dehney, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 N. Market Street P.O. Box 1347 Wilmington, DE 19899-1347 Tel: (302) 658-9200 Fax: (302) 658-3989 Debtor's Special Counsel: CAHILL GORDON & REINDELL LLP Debtor's Delaware Counsel: MORRIS, NICHOLS, ARSHT & TUNNELL LLP Debtor's Chief Restructuring Officer: ALIX PARTNERS SERVICES, LLC Debtors' Claims & Notice Agent: EPIQ BANKRUPTCY SOLUTIONS Total Assets: US$30,562,681 Total Debts: US$353,606,467 The petition was signed by John Castellano, authorized officer. Debtor's List of 40 Largest Unsecured Creditors: Entity/Person Nature of Claim Claim Amount ------------- --------------- ------------ Deutsche Bank National Trust Guarantee US$400,000,000 Company 222 South Riverside Plaza Chicago, IL 60606-5808 Wells Fargo Bank, National Debentures $152,725,000 Association 1445 Ross Avenue - 2nd Floor Dallas, TX 75202-2812 Credit Suisse Energy LLC Trade Debt $36,905,023 Eleven Madison Avenue 10th Floor New York, New York 10010 Joseph S. Compofelice Employment $2,400,000 Agreement Rishi Varma Employment $700,000 Agreement Converteam, Inc. Trade Debt $665,256 Astoundry, Inc. Trade Debt $311,943 Tectura Corporation Trade Debt $203,514 Discovery Group, Inc. Trade Debt $184,327 Gleacher & Company Trade Debt $143,797 Securities, Inc. GE Capital Corporation Trade Debt $90,826 International Specialist, Inc. Trade Debt $55,069 Advance Logistics, LLC Trade Debt $50,323 Winston & Strawn LLP Trade Debt $40,797 Maxwell Drummond International Trade Debt $39,600 Delaware Secretary of State Trade Debt $36,000 Light 125 James West LLC Trade Debt $33,120 Seasupplier, Ltd. Trade Debt $28,486 Laporte, Sehrt, Romig Trade Debt $23,604 Broadridge Trade Debt $22,582 Grant Thornton LLP Trade Debt $21,200 LRN Corporation Trade Debt $19,780 CD Language Solutions, Inc. Trade Debt $17,751 Amarchand Mangaldas Trade Debt $17,200 Bluecross Blueshield Trade Debt $16,394 Fire Protection Ser., Inc. Trade Debt $13,905 Leblanc & Associates, Inc. Trade Debt $13,489 Maritima Consulting Services Trade Debt $13,412 Executive Coaching & Trade Debt $12,500 Consulting Fugro Chance, Inc. Trade Debt $10,370 A T & T Mobility Trade Debt $10,215 Jones, Walker, Waechter Trade Debt $10,213 Thrust Matter of Texas Inc. Trade Debt $10,039 KMPG Professional Services Trade Debt $9,952 EMT Electronics, Inc. Trade Debt $9,757 A T & T Trade Debt $9,738 Aluko & Oyebode Trade Debt $7,217 Zeno Imaging Trade Debt $7,125 Power Specialties, Inc. Trade Debt $6,727 A T & T Trade Debt $6,534 Meltwater News, Inc. Trade Debt $6,495 ================================== D O M I N I C A N R E P U B L I C ================================== CARIBAIR: Plus Int'l Seizes Four Aircraft on Unpaid US$1.5MM Debt ----------------------------------------------------------------- The Plus International Bank of Florida seized four aircraft from Caribair for a debt of US$1.5 million, The Dominican Today reports. The report relates that Caribair failed to fulfill a contract with Plus International. According to the report, the bank obtained a judgment that allowed the seizure of Caribair's four best planes. The report notes Plus International Bank empowered the law services of Russin, Vecchi & Heredia Bonetti, whose lawyers handled the case until they received a verdict favorable to the U.S. bank. Caribair is an airline based in Santo Domingo, Dominican Republic. It operated scheduled services within the Dominican Republic and to Haiti, as well as charter flights and air taxi services throughout the Caribbean. Its main base was La Isabela International Airport, Santo Domingo. CERVECERIA NACIONAL: S&P Downgrades Corporate Credit Rating to 'B' ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered the corporate credit rating on Dominican Republic-based Cerveceria Nacional Dominicana C. Por A. to 'B' from 'B+'. S&P also revised the outlook to stable from negative. "The rating action reflects CND's failure to achieve its targeted deleveraging, given its weaker-than-expected financial results of 2008 and 2009," said Standard & Poor's credit analyst Marcela Duenas. "The downgrade also reflects CND's limited financial flexibility resulting from the lack of headroom under one of its financial covenants, as well as the important debt maturities in 2012 and beyond that could pressure liquidity," she continued. CND is the leading beer and malt producer and distributor in the Dominican Republic. The ratings reflect the company's aggressive financial risk profile, the challenges of operating in the Dominican Republic, and exposure to the nation's economic cycles, making the company sensitive to sovereign risk considerations. S&P also consider the business constraints associated with CND's geographic concentration, and intense industry and regional competition, which could limit the company's ability to expand internationally. CND's leading industry position in the Dominican Republic offsets these challenges. The stable outlook reflects S&P's expectation that CND will be able to maintain its business profile as a market leader in the Dominican Republic in the next couple of years. S&P could lower the ratings if there is a greater-than-expected cyclical downturn or if CND generates leverage above 3.5x. The potential for an upgrade is limited due to the sovereign rating on the Dominican Republic, the company's high geographic concentration, and exposure to a vulnerable economy. However, if the company can strengthen its capital structure and successfully refinance its medium-term debt maturities, S&P could raise the ratings. ============= J A M A I C A ============= CIGARETTE COMPANY OF JAMAICA: Demands Tax Dispute Settlement ------------------------------------------------------------ The Jamaican Ministry of Finance is running out of time to refund nearly JM$2 billion at the centre of its tax dispute with defunct cigarette manufacturer, Cigarette Company of Jamaica, RadioJamaica reports. The report relates that the company's parent, Carreras Limited, has approached the Ministry to repay JM$1.7 billion. According to the report, Carreras Limited is also seeking interest on the amount to be refunded. In February, the report notes, the Court of Appeal handed down its judgment in the tax matter between Cigarette Company and the Commissioner of Taxpayer Audit and Assessment. The report relates that the court upheld the appeal of Cigarette Company to recover the JM$1.7 billion it paid. The report notes that the court also refused the Commissioner's application for a stay of execution from refunding the amount until the matter is heard at the Privy Council. The report relates that the Court subsequently granted the Commissioner leave to appeal to the Privy Council. However, the report adds, attorneys for Cigarette Company are optimistic that the case will prevail at the final court of appeal. About Cigarette Company of Jamaica The Cigarette Company of Jamaica is a member of the Carreras Group of Companies of Jamaica. The company manufactures cigarettes. CCJ was originally a joint venture between the Carreras Group and Rothmans international tobacco company that operated as a virtual monopoly in Jamaica for some time. PETROLEUM CORPORATION OF JAMAICA: Still Without Board of Directors ------------------------------------------------------------------ Petroleum Corporation of Jamaica is still without a Board of Directors, three weeks after the former board which was led by attorney-at-law, Kathryn Phipps, expired, RadioJamaica reports. According to the report, Energy Minister James Robertson says the search is now on to find new Directors of the PCJ Board. The report relates Mr. Robertson said that the decision has been made to identify young and innovative individuals who will be asked to serve as Directors. As reported in the Troubled Company Reporter-Latin America on August 23, 2010, Jamaica Observer said that 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. According to RadioJamaica, 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. =========== M E X I C O =========== FUNDACION INTEGRAL: S&P Assigns 'BB-/B' Global Counterparty Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it assigned its 'BB- /B' global scale and 'mxBBB/mxA-3' national scale counterparty credit ratings to Fundacion Integral Comunitaria A.C. The outlooks are stable. "The ratings reflect high competition in the Mexican microfinance market, limited funding sources, and S&P's concerns about the increasing debt burden among companies in this niche--a burden which could pressure the foundation's asset quality," said Standard & Poor's credit analyst Alfonso J. Novelo. "A seasoned management team and FINCA Mexico's good profitability and capitalization counterbalance these weaknesses somewhat." FINCA Mexico is a microfinance company focused on giving credit to urban and rural low-income families. Approximately 95% of its portfolio is oriented to group credits. The stable outlook reflects S&P's expectation that FINCA Mexico will be able to sustain its good internal capital generation capacity and keep its nonperforming assets under control in 2010 and 2011. A significant deterioration of FINCA Mexico's asset quality or a substantial reduction in its profitability indicators could pressure the ratings. SANLUIS CORPORACION: Sanluis Co-Inter Unit Files for Bankruptcy --------------------------------------------------------------- Anthony Harrup at Dow Jones Newswires reports Sanluis Corporacion SAB said Wednesday that its unit Sanluis Co-Inter has filed for bankruptcy protection as it seeks to restructure its debt. According to the report, Sanluis said once its request for bankruptcy protection under the Mexican equivalent of the U.S.'s Chapter 11 bankruptcy is granted, it will present a restructuring plan to creditors. Dow Jones relates that, at the end of June, Sanluis Co-Inter defaulted on US$88.1 million in notes that were issued in 2002 under a debt refinancing, prompting holders of around US$132 million in mandatorily convertible debentures due June 2011 to accelerate payment, and demanding cash. The default of the June 2010 notes came after Sanluis rescheduled US$146 million in bank debt, to which the Co-Inter notes are subordinate. According to the report, the company said that as Sanluis Co-Inter is a holding company, the filing won't affect its operations. Mexican auto-parts company Sanluis Corporacion SAB makes brakes and suspension parts. According to Dow Jones, the company suffered a big drop in earnings in recent years as a result of the downturn in the global economy and particularly the auto industry. Sanluis said that demand remains "significantly below pre-crisis levels." Dow Jones also notes Fitch Ratings, in downgrading Sanluis' credit ratings earlier this month, said Sanluis' business has been under extreme pressure from a dramatic decline in demand for light trucks in North America and that "a rebound in demand for vehicles in the U.S. may not improve the outlook for the company, as consumers shift to smaller vehicles." VITRO SAB: Trust Fund Sells Real Estate Assets for US$63.8 Million ------------------------------------------------------------------ Thomas Black at Bloomberg News reports that Vitro, S.A.B. de C.V. said a trust fund it formed with government export bank Bancomext in 2008 sold US$63.8 million of real estate assets. According to the report, citing a company statement to the Mexican stock exchange, the proceeds from the sale plus US$5.5 million of Vitro SAB cash were used to end the trust fund with a payment of US$69.3 million. The company, the report notes, said that the assets were lots near the corporate offices that weren't being used. Vitro retained two corporate office buildings that originally formed part of the trust fund's capital, the report adds. 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 U E R T O R I C O ==================== FIRST BANCORP: Reveals Preliminary Results of Exchange Offer ------------------------------------------------------------ First BanCorp disclosed the preliminary results as of 11:59 p.m., New York City time, August 24, 2010, of its offer to exchange up to 256,401,610 newly issued shares of its common stock, par value US$0.10 per share, for any and all of the issued and outstanding shares of Non-Cumulative Perpetual Monthly Income Preferred Stock, Series A through E. The offer was extended to 9:30 a.m., New York City time, on August 25, 2010. Final results of the Exchange Offer will be announced as soon as possible thereafter. The Relevant Price as defined in the preliminary prospectus dated August 25, 2010 was fixed on August 20, 2010 and is $1.18. The Corporation said that 3,145,436 shares of Series A Preferred Stock, 2,515,053 shares of Series B Preferred Stock, 3,666,254 shares of Series C Preferred Stock, 3,130,810 shares of Series D Preferred Stock, and 6,880,599 shares of Series E Preferred Stock have been validly tendered and not withdrawn. In total, approximately US$483.5 million, or approximately 87.9%, of the liquidation preference of the Preferred Stock have been tendered. These tenders will result in the issuance of approximately 225.3 million new shares of First BanCorp Common Stock. Aurelio Aleman, President and Chief Executive Officer of First BanCorp commented, "The high participation rate of our preferred stockholders in the exchange of preferred stock for common stock would satisfy one of the substantive conditions of the agreement with the U.S. Treasury to convert the Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series G, into shares of common stock. The successful exchange of Series A to E Preferred Stock into common stock and the approval of all proposals at yesterday's special stockholder's meeting are important milestones for the Corporation which will enhance our ability to continue executing our capital plan." 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. =============================== T R I N I D A D & T O B A G O =============================== PETROTRIN: World GTL's Lawsuit Against Firm Put on Hold ------------------------------------------------------- The World GTL's lawsuit against the Petroleum Company of Trinidad and Tobago Ltd (Petrotrin) has been put on hold, forcing World GTL to carry their claims before the London Court of International Arbitration, Trinidad and Tobago Newsday reports. According to the report, World GTL filed a TT$12 billion lawsuit against Petrotrin in a New York court in February for losses over the collapse of a joint venture project of a US$3 billion gas-to- liquid plant in Trinidad. The report notes Petrotrin said on August 11, 2010, Judge Lawrence McKenna of the U.S. District Court for the Southern District of New York granted the motion of Petrotrin and issued an order staying the lawsuit commenced against Petrotrin by World GTL Inc. and its subsidiary, World GTL of St. Lucia Ltd. in that court. The report says that Judge McKenna's August 11 order rejected all of the World GTL parties' arguments against Petrotrin's motion. The report relates that the effect of the order was to suspend the litigation commenced by the World GTL parties. Petrotrin said in June 2010, it moved for an order staying the lawsuit and compelling the World GTL parties to arbitrate any claims they believe they have against Petrotrin, as agreed in the Project Agreement and the Shareholders Agreement entered into between the parties, the report notes. Newsday says that while the lawsuit has been put on hold, the company said it will continue to vigorously pursue its rights in the arbitration brought against the World GTL parties. About Petrotrin Petroleum Company of Trinidad and Tobago is the major State-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, given its higher labor costs. The company operates a refinery at Pointe-�- Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on June 9, 2010, Trinidad Express said that four members of Petrotrin submitted their resignation letters. According to the report, Malcom Jones resigned as chairman of Petrotrin and from the State boards. The report related board members Lawford Dupres, who chaired the National Petroleum board, attorney Kerwin Garcia and Andrew McIntosh had also resigned. Prime Minister Kamla Persad- Bissessar, the report noted, said that Cabinet had ordered a forensic audit of Petrotrin as there were "grounds for suspicion of misconduct" at Petrotrin similar to what may have transpired at special-purpose State enterprise UDeCOTT. The report said that the company was experiencing serious financial difficulties resulting in high cost overruns of its refinery upgrade. The situation was exacerbated by a US$12 billion lawsuit by World GTL Inc. against Petrotrin, the report added. ========================== V I R G I N I S L A N D S ========================== BERNARD MADOFF: Judge Seeks Money Held by Gibraltar for Hedge Fund ------------------------------------------------------------------ Erik Larson at Bloomberg News reports that U.S. Bankruptcy Judge Burton Lifland asked the Supreme Court of Gibraltar to turn over US$73 million it is holding for a hedge fund that lost money in the fraud. According to the report, the money would be deducted from a US$180 million default judgment issued earlier this month in New York against the fund, Vizcaya Partners Ltd., a British Virgin Islands company. The report relates that assets recovered in the Madoff liquidation can only be shared effectively among victims "if judgments arising out of this bankruptcy proceeding are given universal application," Judge Lifland said in a letter written to the Gibraltar court that was obtained by the news agency. The report notes that the disputed money was transferred to the Gibraltar court by Vizcaya's bank, Banque Jacob Safra (Gibraltar) Ltd., during an investigation by financial authorities in the U.K. territory. The bank was also named as a defendant in the New York case, the report relates. The case is Picard v. Vizcaya Partners Ltd., 09-01154, U.S. Bankruptcy Court, Southern District of New York (Manhattan). About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On December 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of August 13, 2010, a total of US$5,578,441,409 in claims by investors has been allowed, with US$715,602,064 to be paid by the SIPC. Investors are expected to receive additional distributions from money recovered by Mr. Picard. Mr. Picard has recovered a number of assets and in liquidated some of those assets for the benefit of customers, totaling US$1,183,779,811 as of November 2009. =============== X X X X X X X X =============== * Homebuilders More Likely to Use Covenant Lite Package ------------------------------------------------------- Moody's assessment of 440 bonds issued in the Americas and Europe from 2008 through June 2010 shows generally higher rates of "covenant-lite" protections for bonds rated at the higher end of the speculative-grade rating scale and more stringent packages for lower-rated instruments, said the ratings agency in a new report. However, the report also notes important exceptions, such as homebuilders, among others. The covenant package of a conventional high-yield bond (rated Ba1 or lower at issuance) includes a restricted payments covenant and a debt incurrence covenant ("high-yield package"), the study stated. "Moody's considers the package covenant-lite if it lacks either or both covenants, which are the two most important forms of investor protection," said Alexander Dill, Moody's Vice President-Senior Covenant Officer. The debt incurrence covenant limits a company's ability to increase leverage and the restricted payments covenant limits cash leakage from the covenant-restricted entities in the corporate family and investments in riskier assets, the report said. "These shareholder-friendly actions can erode the ability of issuers lower down in the rating spectrum to service their debt," noted Matthew Musicaro, an Associate Analyst at Moody's and the report's primary author. Based on the sample assessment of 440 high yield bonds, Moody's observed that homebuilders, despite being one of the worst- performing sectors during the financial crisis, were far more likely to use a covenant lite ("investment grade") package than the rest of the market. Those companies that used light covenants generally had the cash and cash flow allowing them to negotiate relaxed loan covenants and thus had little incentive to agree to high-yield covenants to bondholders. Other than a few auto suppliers, no other sector followed the cov-lite trend, said Musicaro. In addition, throughout the 2008-2010 period, 21% of Ba1 bonds, 56% of Ba2 bonds and 76% of Ba3 bonds used a high-yield package , while fallen angels consistently used an investment-grade package."Of the 28 fallen angels' bonds rated Ba1 or Ba2 at issuance in Moody's sample for the 2008 -- 2010 period, 25 used an investment-grade package," noted Musicaro. "Only 23 of the 50 bonds issued by conventional high-yield issuers rated Ba1 and Ba2 used an investment-grade package." Moody's found that that European high-yield issuers were more likely to have a debt incurrence covenant than issuers in the Americas. "Between January 1, 2008 and June 30, 2010, no European issuer in Moody's population came to market with a bond rated Ba1 or lower without a debt incurrence covenant," said Musicaro. "In contrast, 5% of all bonds rated B1 or below in the Americas population did not have a debt incurrence covenant." "We found a divide at the Ba3-B1 ratings threshold," Musicaro said. "Bonds that were rated B1 or below did not use an investment-grade package in 2008. However, some bonds rated B1 or below did so in 2009 and 2010." *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, Marites O. Claro, Joy A. Agravente, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *