/raid1/www/Hosts/bankrupt/TCRLA_Public/100915.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, September 15, 2010, Vol. 11, No. 182
Headlines
A R G E N T I N A
BANCO DE GALICIA: Moody's Gives Positive Outlook on 'D-' Rating
EMPRESA DISTRIBUIDORA: Moody's Puts B2 Rating with Stable Outlook
WPE INTERNATIONAL: Fitch Assigns 'B+' Issuer Default Ratings
B R A Z I L
ABENGOA SA: Fitch Issues 'BB' Long-Term Issuer Default Rating
BANCO INDUSTRIAL: Moody's Upgrades Long-Term Deposit Ratings
BANCO RIBEIRAO: Moody's Affirms 'D' Bank Financial Strength Rating
COMPANHIA SIDERURGICA: Fitch Assigns Rating on Perpetual Bonds
COMPANHIA DE SECURITIZACAO: Moody's Assigns 'Ba2' Rating on Certs.
CSN ISLANDS: Moody's Assigns 'Ba1' Rating with Stable Outlook
INDEPENDENCIA SA: Gets Creditors' Approval to Freeze Debt Payments
MINERVA OVERSEAS: Commences Exchange Offer for Notes Due 2017
C A Y M A N I S L A N D S
CANYON INVESTMENTS: Commences Liquidation Proceedings
CHAMBERI LIMITED: Creditors' Proofs of Debt Due on October 13
CPIM GLOBAL: Creditors' Proofs of Debt Due on October 13
CROSBY ACTIVE: Commences Liquidation Proceedings
CROSBY ACTIVE: Commences Liquidation Proceedings
EUROTAX GLASS'S: Creditors' Proofs of Debt Due on October 8
EUROTAX GLASS'S: Shareholders' Final Meeting Set for October 11
GS ASSOCIATED: Creditors' Proofs of Debt Due on October 13
HM4-EQ/EN/FOF: Creditors' Proofs of Debt Due on October 8
HM4-EQ/EN/FOF: Shareholders' Final Meeting Set for October 11
HMTF CANADIAN: Creditors' Proofs of Debt Due on October 8
HMTF CANADIAN: Shareholders' Final Meeting Set for October 11
HMTF FUND: Creditors' Proofs of Debt Due on October 8
HMTF FUND: Members' Final Meeting Set for October 11
HMTF PRIVATE: Creditors' Proofs of Debt Due on October 8
HMTF PRIVATE: Shareholders' Final Meeting Set for October 11
IBIS ASSET: Creditors' Proofs of Debt Due on October 13
LOOMIS SAYLES: Creditors' Proofs of Debt Due on October 13
MALBEC EMERGING: Creditors' Proofs of Debt Due on October 4
MALBEC EMERGING: Creditors' Proofs of Debt Due on October 4
MARINER LATITUDE: Creditors' Proofs of Debt Due on October 8
MARINER LATITUDE: Shareholders' Final Meeting Set for October 11
MARINER LATITUDE: Creditors' Proofs of Debt Due on October 8
MARINER LATITUDE: Shareholders' Final Meeting Set for October 11
SPF CAYMAN: Creditors' Proofs of Debt Due on October 8
SPF CAYMAN: Shareholders' Final Meeting Set for October 11
TUDOR EMERGING: Creditors' Proofs of Debt Due on October 13
VOLUNTEER INSURANCE: Placed Under Voluntary Liquidation
C O L O M B I A
BANCOLOMBIA SA: Moody's Gives Positive Outlook on 'Ba2' Rating
C U B A
* CUBA: To Make 500,000 Government Jobs Redundant by 2011
D O M I N I C A N R E P U B L I C
INVERCAR: Judge Charges Senior Executives With Swindling
M E X I C O
HIPOTECARIA SU: Moody's Junks Senior Unsecured Debt Rating
* MEXICO: Moody's Affirms 'B1' Rating on Ramos Arizpe
T R I N I D A D & T O B A G O
CL FIN'L: Guyana President to Meet With CLICO Policyholders
COLONIAL LIFE: A.M. Best Withdraws 'C' Financial Strength Rating
V E N E Z U E L A
HOLCIM: Receives US$650 Million for Seized Assets
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A R G E N T I N A
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BANCO DE GALICIA: Moody's Gives Positive Outlook on 'D-' Rating
---------------------------------------------------------------
Moody's Investors Service changed to positive, from stable, the
outlook on Banco de Galicia y Buenos Aires's D - (minus) bank
financial strength rating, as well as on its Ba3 global local
currency deposit rating. The global long- and short-term foreign
currency deposit ratings of Caa1 and Not Prime were affirmed. At
the same time, Moody's Latin America changed to positive, from
stable, the outlook on Galicia's national scale local currency
deposit rating of Aa2.ar. The national scale foreign currency
deposit rating of Ba1.ar was affirmed.
Moody's said the change in outlook is supported by the improvement
in Galicia's balance sheet profile, as indicated by the
substantial reduction reported in its exposure to the Argentine
public sector, and the resulting positive effect on its asset mix
and liquidity. Galicia managed to halve such exposure to 7.3% of
its assets in mid 2010, from 15.9% in June 2009, mainly by
swapping its stock of "Guaranteed Loans" (Pr‚stamos Garantizados)
for Argentine government bonds, and by selling its holdings of
government Bodens 2012. Additionally, Galicia has been reducing
its stock of foreign debt as it has repurchased part of its
outstanding bonds.
As a result, Moody's noted, Galicia's risk assets have shifted
towards private sector, peso-denominated loans, which have
increased by a hefty 25% over the past 12 months. On the other
hand, loans to individuals accounted for 56% of its total loans as
of June 2010 up from 46% in 2008. Moreover, lending growth has
allowed Galicia to increase its core profitability, which
management has used to accelerate the amortization of legal
proceedings ("amparos"). These are a legacy of the Argentine
crisis, and have been declining gradually, with a modest Ar$115
million yet to be amortized.
Moody's noted that it will closely monitor Galicia's asset
quality, however, particularly as it relates to the performance of
its growing credit card portfolio, including that of its
subsidiaries, Tarjetas Regionales. This business line has
experienced consistent expansion over the past several years and
now accounts for 39% of Galicia's total loans; a further increase
in its credit card concentration could put the upward rating
movement at risk, the rating agency said.
Banco Galicia y Buenos Aires S.A. is a universal bank
headquartered in Buenos Aires. The bank offers financial services
to retail, small and medium companies as well as to corporates.
As of June 2010, Banco Galicia accounted assets and equity for Ar$
30.3 billion and Ar$ 2.3 billion respectively on a consolidated
basis.
The outlook for these ratings were changed to positive from
stable:
* Bank Financial Strength Rating of D-
* Long- and short-term global local-currency deposit ratings of
Ba3
* Long-Term National Scale Local-Currency Deposit Rating of Aa2.ar
These ratings were affirmed:
* Long - and short-term global foreign-currency deposit ratings of
Caa1 and Not Prime
* Long - Term National Scale Foreign Currency Deposit Rating of
Ba1.ar
EMPRESA DISTRIBUIDORA: Moody's Puts B2 Rating with Stable Outlook
-----------------------------------------------------------------
Moody's Latin America assigned a B2/A1.ar ratings to Edenor's up
to US$300 million proposed notes, with a stable outlook. The new
notes will be offered concurrently with an Exchange Offer;
therefore net proceeds of the new notes will be applied to
refinance or repurchase most of Edenor's outstanding debt (the
existent notes).
Ratings Rationale
The B2 and A1.ar ratings reflect Edenor's leading position as the
largest distribution utility in the domestic electricity market in
terms of number of clients and its conservative financial profile
as indicated by its relatively low leverage. Nevertheless, the
ratings anticipate a continuation of volatile pricing and the
possibility of a significant decline in the company's distribution
margin due to the lack of timeliness with respect to cost
recovery. Despite authorized increases in the distribution tariff
by the Argentinean regulators in recent years, the recovery
mechanism, more recently, has not worked as expected. The ratings
still reflect the uncertainty that surrounds Argentina's electric
industry due to the lack of transparency and predictability of the
current regulatory framework.
Edenor's B2 rating primarily reflects its expected financial
performance and its regulatory risk profile in accordance with
Moody's global rating methodology for regulated electric and gas
utilities. The A1.ar is a National Scale rating, and it is
intended to measure the relative creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate between relative risks. NSRs in Argentina
are designated by the ".ar" suffix. NSRs differ from global scale
ratings in that they are not globally comparable to the full
universe of Moody's rated entities, but only with other rated
entities within the same country.
Moody's continuing concern with the overall regulatory environment
in Argentina remains a major constraint to the ratings. Edenor's
tariffs and other terms of its concession are subject to
regulation by the Secretariat of Energy and the Argentine National
Electricity Regulator. Edenor's regulated tariffs have remained
frozen for several years and while the Argentinean regulators have
authorized an adjustment of the VAD (value added for distribution)
in 2007 for Edenor's non-residential consumers and in 2008 for
residential, the expected cost recovery mechanism after those
initial adjustments is not working as anticipated. The absence of
a workable cost recovery mechanism in a context of growing
inflation is clearly hurting Edenor's operating profits. To
offset the delays in the CMM, the Energy Secretariat allowed
Edenor to retain funds from the Program for the Rational Use of
Electric Power, in order to reimburse the company for the amounts
it is owed under requested CMM increases, which are not yet
reflected in the distribution margin. While this compensation
mechanism may not be sustainable and is less clear and less
transparent than it could have been with the timely application of
the CMM as originally designed, it has allowed Edenor to maintain
its cash generation capacity.
Edenor's proposed notes are dollar denominated while revenues are
in the local currency and will be therefore exposed to devaluation
risk. Furthermore, Edenor has no hedging policy in place.
Historically, Edenor has only hedged its upcoming interest
payments but not principal.
In spite of declining margins, Moody's sees Edenor's credit metric
and cash flow metrics to be supportive of current ratings.
Leverage ratios have increased slightly to 2.4x from 2.2x at
fiscal year-end due to a combination of declining EBITDA and the
effect of the peso devaluation on Edenor's dollar denominated
debt. The EBITDA decline reflects the lack of any CMM adjustment
to tariffs resulting in lower margins in 2009 on similar revenues
in the previous year, a trend that has persisted in 2010.
Nevertheless, cash flow metrics in relation to debt remain at 2008
levels, or are even higher, as a consequence of the PUREE
compensation mechanism. Cash flow from operations pre- working
capital changes (CFO Pre W/C) + interest to interest expense stood
at 6.0x while CFO Pre-W/C to debt improved to 70% at year-end 2009
(73% as of June 2010) from 50% in 2008 due to amounts being
collected by the company through the compensation mechanism. As
of June 30 2010, the amount retained from the PUREE amounted to
ARS 369 million (approximately US$ 95 million).
Moody's views Edenor's liquidity as adequate. The issuance of the
new notes in combination with the exchange offer will further
enhance Edenor's relatively strong liquidity position. The new
notes will have 12 years tenor and proceeds will be used to redeem
2017 US$ notes and most of the remaining outstanding debt, giving
the company enough financial flexibility for the foreseeable
future.
The stable outlook reflects Moody's expectation that the company
will be able to reasonably maintain its current financial profile.
The stable outlook also considers that Edenor will continue to
post strong internal cash flow generation in spite of declining
operating margins.
Ratings could come under upward pressure if the evolution of the
current regulatory framework leads to a more stable and
predictable regulatory environment. Evidence of a more consistent
application of the CMM mechanism for the recovery of increased
costs could also add upward pressure on the ratings.
In addition, the implementation of a more conservative financial
policy by the company that further reduces leverage leading to a
debt to EBITDA ratio of less than 1.5 times on a sustainable basis
along with a material change in debt currency denomination that
would reduce dollar exposure by at least 50% could also have a
positive impact on ratings.
If the current regulatory environment deteriorates further, such
that Edenor becomes unable to retain the cash amounts collected
under the PUREE on its balance sheet while the CMM is not applied
and/or the company's financial position returns to the levels
registered in the 2004-2005 period, or where the CFO Pre W/C plus
Interest to Interest were to fall below three times or CFO Pre W/C
to Debt were to drop below 20%, the ratings could come under
pressure. To that end, continuation of the rate freeze and
failure to implement any aspect of the CMM recover mechanism could
negative impact ratings for the Argentinean utilities.
Since Edenor's revenues are in local currency and its bonds are
dollar-denominated, its financial profile could be substantially
and adversely affected by a major devaluation of the Argentine
peso.
Empresa Distribuidora Norte S.A., headquartered in Buenos Aires,
Argentina, is the country's largest electricity distribution
company. As of June 2010, Edenor had 2.6 million clients and
reported total revenues of ARS2.1 billion (approximately US$540
million).
WPE INTERNATIONAL: Fitch Assigns 'B+' Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has assigned 'B+' local and foreign currency Issuer
Default Ratings to WPE International Coorperatief U.A. a direct
subsidiary of WPE, which in turn is wholly owned by Industrias
Metalurgicas Pescarmona. Fitch has also assigned 'B+(exp)/RR4'
ratings to WPE International's proposed guaranteed notes of up to
US$300 million due in 2017/2020. These notes will be irrevocably
and unconditionally guaranteed by IMPSA and WPE on a senior
unsecured basis.
The Rating Outlook is Stable.
The rating of the proposed notes reflects the creditworthiness of
the guarantors. Fitch rates IMPSA 'B+'. WPE is a fully owned
subsidiary of IMPSA with strong operating, strategic and financial
ties to its parent company.
IMPSA's 'B+' ratings reflect the positive trend for the company's
long-term business fundamentals due to sustained global demand for
hydro and wind power generating equipment. They also incorporate
the company's growing business presence in Brazil and its sizeable
backlog, which provides certainty to the company's cash generation
over the medium term. Balanced against these strengths are the
company's high leverage, aggressive capital expenditure program
(mostly concentrated in the development of wind farms, funded with
non-recourse debt) and its dependence on a few large projects in
developing countries. A sudden downturn in the key markets would
negatively impact IMPSA's ability to develop new projects.
Fitch expects revenues and EBITDA from Brazil to represent more
than 65% of IMPSA's consolidated figures from FY 2011 onwards.
The growth of the company's business in Brazil has reduced IMPSA's
exposure to more volatile markets such as Argentina and has
increased its access to multiple funding sources. This has
reduced concerns about IMPSA's need to finance its working capital
needs in Argentina should that market deteriorate, and has enabled
the company's foreign currency rating to exceed the 'B' country
ceiling of Argentina.
Fitch expects IMPSA's EBITDA to grow to above US$160 million
during the fiscal year ended Jan. 31, 2011. The company's free
cash flow (FCF) is anticipated to remain negative during 2010 due
to capital expenditures and growing working capital needs. Much
of the cash deficit will be funded with non-recourse project
financing. For the fiscal year ended in January 2011, Fitch
expects IMPSA's total debt with recourse to increase to
approximately US$450 million from $438 million, resulting in a
total debt (with recourse)-to-EBITDA ratio of approximately 3
times. This ratio is an improvement from 4.3x for the fiscal year
ended January 2010.
For the fiscal year ended Jan. 31, 2010, U.S. dollar denominated
sales accounted for approximately 90% of IMPSA's revenues. At
July 2010, IMPSA's backlog was US$3.65 billion, compared to US$1.5
billion at May 2009. Given the long-term production cycle of
IMPSA's developments, usually in the range of 30 months, this
backlog level provides some certainty to the company's cash
generation in the medium term.
The creation of WPE International is part of IMPSA's liability
management program. This program aims to extend the average life
of the company's debt, which includes the buy-back of its 2014
notes through a tender offer announced on Sept. 8, 2010 and the
issuance of new notes. Both transactions are contingent upon one
another. Therefore, the issuance of the proposed notes will
depend on the success of the tender offer. Use of proceeds
include the refinancing of IMPSA's 2014 notes (rated 'B+/RR4' by
Fitch), the prepayment of short-term loans and funds for
additional CAPEX. Through this transaction, the average life of
IMPSA's consolidated debt is expected to grow to above four years
from approximately two years as of September 13.
The company's ratings could come under pressure if non-recourse
financing increases above levels anticipated by Fitch, any
material performance problems that threaten future projects and
cash flow, or a failure to comply with the terms for the operation
of the wind farms (for which long-term PPAs have been signed with
Eletrobras and the CCEE).
===========
B R A Z I L
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ABENGOA SA: Fitch Issues 'BB' Long-Term Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has published Abengoa, S.A.'s Long-term Issuer
Default Rating and a senior unsecured rating of 'BB',
respectively. The Outlook for the Long-term IDR is Stable.
The ratings are supported by Abengoa's diversity in terms of
geography, industry and counterparties, in addition to its
profitable and growing businesses. Fitch acknowledges Abengoa's
leading positions in the renewable energy arena, especially in
thermal solar power, European recycling and biofuels. This is
further supported by the integrated model between engineering and
construction, including extensive R&D, and solar, biofuels, and
environmental services. The company is also a leading private
electricity transmission operator in Brazil, a long-term
concession based business benefiting from a stable regulatory
framework. However, this business is financed on a non-recourse
basis and, in Fitch's analysis the company's cash flow benefit is
largely limited to the expected dividend income and the
contribution to its order back-log.
These strengths are partially mitigated by a relatively high
leverage given the large contribution of engineering and
construction and biofuels businesses to corporate (recourse)
earnings and despite the healthy order back-log. The ratings are
based on an assumption of sustainable net (recourse) leverage of
below 3x and also take the company's strong liquidity profile into
consideration.
"Fitch views Abengoa's business as highly reliant on continued
government and regulatory support for renewable energy sources,
especially in the EU and US," said Josef Pospisil, Director in
Fitch's EMEA Energy, Utilities and Regulation team. "While Fitch
would not expect an adverse change of regulation to be
retroactive, such that it would affect existing businesses in the
foreseeable future, Abengoa's growth prospects may be severely
impacted until solar power and biofuels become competitive without
government or regulatory support."
Fitch notes that the agreement of the Spanish Ministry of Industry
with the wind and solar industry, reached in July 2010, is only
expected to have a marginal negative impact on Abengoa due to a
short delay in the commissioning of some of its new solar plants.
It is also less likely that future changes would be retroactive as
a result of the agreement.
The corporate and capital structure of Abengoa is complex with a
varied level of synergies between the businesses, which is seen by
Fitch as a credit concern. Parts of the business are exposed to
market risks such as commodity price risk, foreign exchange risk
and uncontrollable supply/demand dynamics. Abengoa has entered
into partnerships and joint ventures for some of its projects,
which reduce its exposure to market risks.
The Stable Outlook on the Long-term IDR reflects Fitch's view that
the company is comfortably placed at the current rating level.
Delivery of some of key projects, a longer track record and an
improved cost base related to renewable energy technologies would
be favourable to the ratings. Fitch would also view positively
reduced leverage, given an otherwise unchanged business profile
and continued healthy order back-log which is presently around
EUR8.9bn or 30 months.
Conversely, long delays in the delivery of key engineering and
construction projects, regulatory changes leading to a decrease in
the order back-log, and weaker cash flows from existing projects
as well as increased leverage or a global and sustained fall in
ethanol margins may be negative for the ratings. The senior
unsecured rating may also be negatively affected if recourse
tangible fixed assets decrease significantly below the level of
recourse net debt.
BANCO INDUSTRIAL: Moody's Upgrades Long-Term Deposit Ratings
------------------------------------------------------------
Moody's Investors Service upgraded to Baa3 and P-3, from Ba1 and
Not Prime, Banco Industrial e Comercial S.A's long-term and short-
term global local-currency and foreign-currency deposit ratings,
respectively. Moody's also upgraded to Baa3, from Ba1, BICBANCO's
long-term foreign-currency senior unsecured debt rating, and to
Ba1, from Ba2, the long-term foreign-currency subordinated debt
rating. The long-term Brazilian national scale deposit rating was
also upgraded to Aa1.br from Aa2.br, while the BR-1 short-term
rating was affirmed. In addition, Moody's raised the unsupported
baseline credit assessment to Baa3 from Ba1, and affirmed
BICBANCO's bank financial strength rating at D+. The outlook on
all ratings is stable.
These ratings of BICBANCO were upgraded:
* Global local-currency deposit ratings: to Baa3 and P-3, from Ba1
and Not Prime, stable outlook
* Foreign-currency deposit ratings: to Baa3 and P-3, from Ba1 and
Not Prime, stable outlook
* Long-term foreign-currency senior unsecured debt rating: to
Baa3, from Ba1, stable outlook
* Long-term foreign-currency subordinated debt rating: to Ba1,
from Ba2, stable outlook
* Long-term Brazilian national scale deposit rating: to Aa1.br,
from Aa2.br, stable outlook
These ratings of BICBANCO were affirmed:
* Bank financial strength rating: D+, stable outlook
* Short-term Brazilian national scale deposit rating: BR-1, stable
outlook
Ratings Rationale
The lift of Moody's baseline credit assessment for BICBANCO to
Baa3, from Ba1, triggered the upgrade of its deposit and debt
ratings. The BCA of Baa3 derives from a D+ bank financial
strength rating of D+, and reflects BICBANCO's stand-alone risk,
without the incorporation of any external support.
Moody's noted that the ratings upgrade reflects the resilience of
the bank's balance sheet and financial metrics, which is supported
by its consistent business strategy as a lender to small and mid
size corporations. "BICBANCO's long track-record and disciplined
risk approach to this segment have yielded important loan and
earnings stability over time relative to its peers", said Moody's
analyst Alexandre Albuquerque. The steady recurrence of its
earnings is illustrated by three-year risk-adjusted core returns
of 5.59% and financial margins of 9.57%, which performed well even
during the market turmoil of the past two years.
"Management's conservative risk appetite and credit policies are
observed in the largely collateralized, short-term nature of its
loan book and on its ability to preserve asset quality and
margins, despite increasing competition in its core target
market", said Mr. Albuquerque. The bank's well-capitalized
position and adequate level of reserves are also positive elements
for the rating. BICBANCO's efforts to further diversify its
funding structure have resulted in increased participation of
customer deposits, at the expense of more volatile wholesale
sources of funds, thus supporting continued growth.
The last rating action on BICBANCO was on April 20, 2010, when
Moody's assigned long-term foreign currency debt rating of Ba2 to
BICBANCO's US$300 million subordinated notes. All other ratings
remained unchanged.
BICBANCO is headquartered in Sao Paulo, Brazil, with assets
totaling R$14.6 billion (US$8.1 billion) and equity of
R$1.9 billion (US$1.0 billion) as of June 30, 2010.
BANCO RIBEIRAO: Moody's Affirms 'D' Bank Financial Strength Rating
------------------------------------------------------------------
Moody's Investors Service affirmed the D bank financial strength
rating and the Ba2 and Not Prime long- and short-term global
deposit ratings, both for local and foreign currencies, assigned
to Banco Ribeirao Preto S.A. At the same time, Moody's affirmed
the bank's A1.br and BR-1 Brazilian national scale deposit
ratings, long and short-term, respectively. The bank has no
outstanding debt rated by Moody's. All ratings have a stable
outlook.
In affirming the ratings, Moody's acknowledged BRP's regional
banking franchise, which is based on long-standing client
relationships in its normal footprint, and on management's
expertise of the region and its industries. The ratings also
address management's conservative approach to credit growth,
despite the increasing competition in BRP's markets, and the
bank's adequate liquidity position, supported by customer deposits
and onlendings from government-sponsored programs.
Moody's noted that BRP's embedded franchise provides reasonable
stability to asset quality and earnings as a result of its core
operation that targets secured lending to small and mid-size
companies headquartered in its region. Nevertheless, the bank's
loan portfolio has a substantial degree of concentration, both of
single borrowers and industry relative to its core capital and
earnings, of which agribusiness is the most relevant. Such
concentration exposes the bank's earnings to volatility, and may
affect asset quality in a downturn. This was evidenced in 2009,
when BRP tightened its loan origination, a move that affected
profitability and its delinquency ratio, which peaked at 6.3% in
June 2009.
The rating agency also mentioned the bank's limited funding access
as a key factor challenging its growth potential beyond its local
footprint. As competition increases, BRP may need to further
diversify its funding alternatives to also attract institutional
investors, which could pressure margins and add liquidity risk.
Moody's Ba2 global local-currency deposit rating for BRP is
aligned to the baseline credit assessment of Ba2, and as such, it
does not incorporate any uplift due to systemic support. This
reflects BRP's very modest importance to the Brazilian banking
system. However, Moody's acknowledges the commitment of the
bank's shareholder to the bank's operation and the track-record of
conservative earnings retention policy.
The last rating action was on August 23, 2007 when Moody's
upgraded BRP's long-term foreign currency deposit rating to Ba2
from Ba3, following Brazil's foreign currency deposit ceiling
upgrade. Other ratings remained unchanged.
Banco Ribeirao PretoS.A. is located in the city of Ribeirao Preto,
Brazil. As of June 30, 2010, the bank had total assets of R$374.7
million (US$208.5 million) and shareholders' equity of R$63.1
million (US$34.9 million).
These ratings assigned to Banco Ribeirao Preto S.A. were affirmed:
* Bank financial strength rating: D, stable outlook
* Long term global local currency deposit rating: Ba2, stable
outlook
* Short term global local currency deposit rating: Not Prime
* Long-term foreign currency deposit rating: Ba2, stable outlook
* Short-term foreign currency deposit rating: Not Prime
* Long-term national scale deposit rating in Brazil: Aa1.br,
stable outlook
* Short-term national scale deposit rating in Brazil: BR-1
COMPANHIA SIDERURGICA: Fitch Assigns Rating on Perpetual Bonds
--------------------------------------------------------------
Fitch Ratings has assigned a 'BBB-' rating to Companhia
Siderurgica Nacional's proposed perpetual bonds up to the amount
of US$1 billion. The bonds will be issued through CSN's
subsidiary, CSN Islands XII Corp., and will be unconditionally and
irrevocably guaranteed by CSN. Net proceeds from the proposed
issuance will be used to repay the existing US$750 million
perpetual bonds issued by CSN Islands X Corp. in 2005.
Fitch currently rates CSN:
-- Foreign currency Issuer Default Rating at 'BBB-';
-- Local currency IDR at 'BBB-';
-- National scale rating and local debenture issuances at
'AA(bra)';
-- Unsecured debt obligations issued by CSN Islands entities
'BBB-';
-- Senior unsecured euro note issued by CSN Resources S.A.
'BBB-'.
National Steel S.A.
-- US$450 million 9.875% perpetual notes at 'BB'.
The Rating Outlook for CSN is Stable.
CSN's ratings reflect the company's strong financial profile and
solid business position as a vertically integrated flat steel
producer with a high quality iron ore asset, the Casa de Pedra
mine, in Brazil. As of June 30, 2010, CSN had BRL9.7 billion
(US$5.4 billion) of cash and marketable securities and BRL17.9
billion (US$10 billion) of total adjusted debt. Liquidity is high
relative to short-term maturities of BRL1.47 billion (US$817
million) in 2010 and BRL1.5 billion (US$834 billion) in 2011.
CSN's credit protection measures are solid for the rating category
considering the weak operating environment faced by the company
during 2009 that resulted in low steel prices and volumes. For
the latest 12 months ended June 30, 2010, the company generated
BRL5.1 billion (US$2.8 billion) of EBITDA, a 42% improvement on
BRL3.6 billion (US$1.8 billion) in 2009, and BRL3.5 billion
(US$1.9 billion) of funds from operations. These figures
translate to a net-debt-to-EBITDA ratio of 1.6 times, a FFO
adjusted leverage of 2.7x, and a FFO interest coverage of 2.1x.
CSN also has some of the highest EBITDA margins in the steel
industry, at 39% during the LTM to June 30, 2010.
Fitch's base case forecast for CSN during 2010 results in a growth
of EBITDA in the range of BRL5.5 billion (US$3.1 billion) to
BRL6.5 billion (US$3.6 billion) from BRL3.6 billion (US$2 billion)
in 2009, with net debt to EBITDA expected around 1.6x-1.8x, in
line with historical averages. The main drivers of this growth
include higher average prices for steel products compared to 2009
driven by iron ore price increases, rising output from the
company's mining division, and significantly higher sales volumes
driven by high domestic steel demand. Steel sales volumes showed
a marked rebound in the first quarter of 2010 compared to the
first quarter of 2009 with a 96% increase, reflecting the
difficult trading conditions during the start of 2009.
In addition to the strong financial profile, Fitch's credit
ratings also reflect CSN's strong market position as a flat steel
producer in Brazil, as well as its growing presence in iron ore
from its high quality asset of Casa de Pedra. CSN's domestic
market share for flat steel was 36% in 2009, an increase on 33% in
2008. On a standalone basis, the company's galvanized steel
market share for the civil construction and white goods industries
were 90% and 88%, respectively, for 2009. CSN's galvanized
automotive market share increased to 26% in 2009 from 21% in 2008.
Rating concerns such as event risk and cyclicality of prices and
demand are ever-present for the steel industry. As a leading
Brazilian steel company with a growing presence in iron ore
exports, along with a comfortable liquidity position and capital
structure, CSN is well positioned to take advantage of strategic
opportunities during the rest of 2010. However, imports of steel
have recently increased in Brazil. Should imports continue to
erode prices and hurt margins on a substantial scale, a Negative
Outlook or downgrade on the ratings could take place.
An upgrade or Positive Outlook could be considered following the
large scale diversification into iron ore with the new mining
company accounting for a significant portion of consolidated CSN
group revenues (16% in 2009, 20% expected in 2010). Consideration
for an upgrade or Positive Outlook could also follow the growth of
CSN's other business units resulting in the dilution of steel
business unit to around half of total consolidated revenues,
providing significant protection against the cyclicality of the
steel business.
COMPANHIA DE SECURITIZACAO: Moody's Assigns 'Ba2' Rating on Certs.
------------------------------------------------------------------
Moody's America Latina has assigned provisional ratings of (P)
A1.br (Brazilian National Scale) and of (P) Ba2 (Global Scale,
Local Currency) to the first issuance of the 177th Series of
certificates issued by Brazilian Securities Companhia de
Securitizacao (Brazilian Securities or the issuer).
Issuer: Brazilian Secuities Companhia de Securitizacao -- 177th
Series
* Up to BRL 162,000,000 certificates rated (P) Ba2 / (P) A1.br
Ratings Rationale
The certificates are ultimately backed by cedulas de credito
bancario (CCB or Bank Loan) which document a bank loan to Gafisa
S.A. (Gafisa), one of the largest fully integrated homebuilders in
Brazil and rated Ba2/A1.br (negative outlook) by Moody's.
The provisional ratings of the certificates are based on these
factors:
- The structure of the transaction, that will fully match
payments due under the cedulas de credito bancario (Bank Loan
or CCB) payable by Gafisa to payments due under the rated
certificates;
- The ability and willingness of Gafisa , which has a rating of
A1.br (Brazilian National Scale) and Ba2 (Global Scale, Local
Currency) (negative outlook), to make payments due under the
Bank Loan,
- The structural and legal features of the transaction,
including the events of early termination of the Bank Loan
leading to early termination of the certificates.
The certificates have a four year tenor from closing and will pay
investors eight semi-annual interest payments with full principal
amortization at maturity. Interest rate will be fixed at a spread
of 1.3% p.a. over the interbank deposit rate.
Moody's views the certificates as being full pass through
securities of the underlying Bank Loan. The key steps to the
transaction are:
1 -- Gafisa issues in favor of Banco Votorantim, the CCBs or Bank
Loan, that represent the real estate financing granted for
the development of certain real estate projects,
2 -- Under the transaction's Purchase Agreement (or Contrato de
Cessao), all credit rights represented in the form of the
CCBs are sold by Banco Votorantim to the Issuer,
3 -- The Issuer, under the terms of the CCI Issuance Agreement
(Instrumento Particular de Emissao de CCIs), issues the CCI
representing all the Credit Rights,
4 -- The Issuer issues under fiduciary regime the CRI backed by
the CCIs,
5 -- The CRI are distributed to qualifying investors,
6 --The Issuer receives issuance proceeds, which in turn are used
to pay for the CCBs,
7 -- On each payment date, Gafisa will make principal and interest
payments under the CCBs through Cetip, the Brazilian clearing
system.
8 -- Cetip makes payments directly to the Issuer, which in turn
makes CRI payments also through the Cetip clearing system.
In case of merger or acquisition of Gafisa by another company
while the CRI is outstanding, the Fiduciary Agent of the
transaction must notify investors. Investors have then the option
to request early amortization of the outstanding CRIs.
The (P) A1.br / (P) Ba2 ratings of the 177th Series of
certificates issued by Brazilian Securities are primarily based on
Gafisa's ability to make payments under the bank loan agreement.
This is commensurate with Gafisa's A1.br / Ba2 corporate family
rating, which currently has a negative outlook. Any future
changes to the ratings of Gafisa will lead to a change in the
ratings assigned to the certificates.
Headquartered in Sao Paulo, Brazil and founded in 1954, Gafisa is
one of the largest fully integrated homebuilders in Brazil,
ranking second in terms of revenues and volumes, and also one of
the most diversified in terms of product offering to different
income levels and geographic regions, operating in 99 cities and
20 different states.
Moody's Investors Service did not receive or take into account a
third party due diligence report on the underlying assets or
financial instruments in this transaction.
CSN ISLANDS: Moody's Assigns 'Ba1' Rating with Stable Outlook
-------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 foreign currency
rating and a stable rating outlook to the proposed US$1 billion
senior unsecured perpetual notes issuance of CSN Islands XII
Corporation (Cayman Islands), to be irrevocably and
unconditionally guaranteed by Companhia Siderurgica Nacional. The
net proceeds of the issuance will be used primarily to prepay US$
750 million in outstanding guaranteed perpetual notes issued in
2005 by CSN Islands X Corporation and for liability management,
thus not affecting CSN's overall leverage metrics on a net debt
basis.
Assignments:
Issuer: CSN Islands XII Corporation (Cayman Islands)
-- Senior Unsecured Guaranteed Perpetual Notes, Assigned Ba1
Ratings Rationale
The Ba1 rating and stable outlook of the proposed notes assume
that the final transaction documents will not be materially
different from draft legal documentation reviewed by Moody's to
date and assume that these agreements are legally valid, binding
and enforceable. The fact that the notes are rated the same as
CSN's corporate family rating reflects the low level of secured
debt on a consolidated basis as well as the fact that the large
majority of consolidated debt is either at or guaranteed by CSN.
CSN's Ba1 rating reflects its position as a leading manufacturer
of flat-rolled steel in Brazil, with a favorable product mix
focused on value-added products. Historically, the company has
reported a strong EBITDA margin in the 40% range, supported by its
solid domestic market position and globally competitive production
costs. CSN's operational efficiency and low costs reflect the
large scale of its integrated steel mill, its own captive iron ore
mine and its self-sufficiency in electricity and 75% self-
sufficiency in coke. Also supporting CSN's high margins are the
company's strategic location in the most industrialized region of
Brazil and its proximity to high-grade iron ore reserves and port
terminals, as well as its efficient logistics. While Moody's
believe that the company is better-positioned than most of its
global peers to face the ups and downs of the cyclical steel
industry from an operational standpoint, CSN's ratings are
primarily constrained by its track record of aggressive
shareholder return, low operational diversity, with the
concentration of its steel production in a single site, and by the
event risk from its large capex program to expand iron ore mining,
cement and logistics operations.
The stable outlook reflects Moody's expectation that CSN will
continue to report robust operating performance as demonstrated in
the last two quarters, with recurring EBITDA margins (as defined
by Moody's) above 40%, which Moody's believe are sustainable over
the near term based mainly on the company's efficient cost
controls and on the continuous expansion of the high-margin iron
ore operations. Although CSN has aggressive investment plans for
the next several years, Moody's expect the company to manage its
modular-in-nature capex and dividends in order to maintain
adequate leverage and liquidity.
CSN's ratings could be positively affected if the company
maintains a strong liquidity position (with cash balance covering
130% of short term debt maturities) and adequate leverage during
the execution of its large capex program, with Net Debt
(considering a minimum readily available liquidity cushion of BRL
3.5 billion) to EBITDA below 3x. Sustainable Cash From Operations
less Dividends to Net Debt approaching 20% would also be necessary
for an upgrade.
Conversely, the rating could suffer downward pressure should CSN's
operating margins weaken significantly and dividends remain high,
resulting in CFO less Dividends to Net Debt consistently in the
single digit range, or in the case of a substantive deterioration
of its liquidity position, with an inability to cover 130% of
short term debt with readily available liquidity and free cash
flow. Downward pressure could also affect the ratings or outlook
if Consolidated Net Debt (considering a minimum readily available
liquidity cushion of BRL 3.5 billion) to EBITDA remains above 3.5x
for an extended time period. A significant increase in
consolidated secured debt or debt benefiting from claim priority
could negatively affect the rating or outlook of CSN's senior
unsecured debt.
Companhia Siderurgica Nacional is a vertically integrated, low-
cost producer of flat-rolled steel, with an annual capacity of 5.6
million tons of crude steel and 5.1 million tons of rolled
products. CSN also produces and sells iron ore and cement. In
the twelve months ended on June 30, 2010 CSN recorded consolidated
net revenues of BRL13.1 billion (about US$7.3 billion converted by
the average exchange rate).
INDEPENDENCIA SA: Gets Creditors' Approval to Freeze Debt Payments
------------------------------------------------------------------
Lucia Kassai at Bloomberg News reports that Independencia SA
received approval from creditors to freeze debt payments for two
months.
According to the report, the company was authorized to repay
installments on BRL150 million (US$87.6 million) of debt due this
month and October in November. The report relates that the
company's total repayments will be cut to 22 from 24.
Independencia SA -- http://www.independencia.com.br/-- is
Brazil's fourth largest meat exporter. Independencia S.A. The
Company commenced a restructuring process under Brazilian
insolvency law in February 2009. It filed a Chapter 15 petition
on February 27, 2009 (Bankr. S.D.N.Y., Case No. 09-10903)
to seek recognition of the Brazilian proceedings. Paul R.
DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP, is the Debtor's
counsel in the Chapter 15 case.
MINERVA OVERSEAS: Commences Exchange Offer for Notes Due 2017
-------------------------------------------------------------
On September 3, 2010, Minerva Overseas II Ltd commenced a private
exchange offer for any and all of the outstanding 9.50% Notes due
2017 issued by Minerva Overseas Ltd. for its 10.875% Notes due
2019. On January 29, 2010, Minerva II issued US$250.0 million in
aggregate principal amount of new notes under an indenture entered
into among Minerva II, Minerva, as guarantor, and The Bank of New
York Mellon, as trustee, registrar, paying agent and transfer
agent. The new notes to be issued pursuant to the Exchange Offer
will constitute an additional issuance of new notes under the new
notes indenture, and will be identical to, and will be pari passu
with, the new notes issued on January 29, 2010, and will be
treated as a single series of notes under the new notes indenture.
The Exchange Offer is being solicited only from noteholders who
have properly completed, executed and delivered to the information
agent an eligibility letter, whereby such holder has represented
to Minerva II that it is one of the following: (i) a "qualified
institutional buyer," or "QIB," as defined in Rule 144A under the
Securities Act of 1933, as amended, (ii) an institutional
"accredited investor" (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) or (iii) a "non-U.S.
Person" (as defined in Regulation S under the Securities Act).
Holders who have satisfied this requirement are referred to as
"eligible holders."
Eligible holders who validly tender their old notes at or prior to
5:00 p.m., New York City time, on September 20, 2010, unless
extended, will receive US$990.476 in principal amount of new notes
for each US$1,000 in principal amount of old notes accepted for
exchange.
Eligible holders who validly tender their old notes at or prior to
11:59 p.m., New York City time, on October 1, 2010, unless
extended, but after the early participation date, will receive
US$952.381 in principal amount of new notes for each US$1,000 in
principal amount of old notes accepted for exchange. The amount
of new notes to be issued to any holder will be issued in minimum
denominations of US$100,000 and integral multiples of US$1,000
above such amount and will be rounded down to the nearest
US$1,000. Any fractional portion of new notes not received as a
result of rounding down will be paid in cash.
In conjunction with the Exchange Offer, Minerva II is also
soliciting consents to certain proposed amendments with respect to
the indenture dated as of January 26, 2007, between Minerva I,
Minerva, as guarantor, and The Bank of New York Mellon, as
trustee, registrar, paying agent and transfer agent, pursuant to
which the old notes were issued. The proposed amendments will
eliminate certain provisions, including substantially all of the
restrictive covenants and certain events of default under the old
notes indenture. Any eligible holder who tenders old notes for
exchange must also deliver its consent to the proposed amendments.
Eligible holders may withdraw their tenders and revoke their
consents at any time at or prior to the early participation date,
but not thereafter. An eligible holder may not revoke its consent
without withdrawing the old notes tendered pursuant to the
Exchange Offer.
The new notes have not been and will not be registered under the
Securities Act or any state securities laws, may not be offered or
sold in the United States absent registration or an applicable
exemption from registration requirements, and will therefore be
subject to substantial restrictions on transfer.
About Minerva Overseas
Minerva Overseas II Ltd., a wholly-owned subsidiary of Minerva
S.A. Minerva S.A. produces and sells beef, leather and live
cattle in Brazil, and is one of the country's three largest
exporters in the sector in terms of gross sales revenue, exporting
to around 80 countries.
* * *
As reported in the Troubled Company Reporter-Latin America on
January 21, 2010, Standard & Poor's Ratings Services said that it
has assigned its 'B-' rating to the forthcoming US$250 million
senior unsecured notes due 2020 to be issued by Minerva Overseas
II Ltd., a wholly owned subsidiary of Brazil-based beef company
Minerva S.A. The notes will be unconditionally and irrevocably
guaranteed by Minerva.
==========================
C A Y M A N I S L A N D S
==========================
CANYON INVESTMENTS: Commences Liquidation Proceedings
-----------------------------------------------------
Canyon Investments Limited commenced liquidation proceedings on
August 25, 2010.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Paul Wrench
Arnold House, St Julian's Avenue
St Peter Port, Guernsey, GY1 3NF
Channel Islands
c/o Philip C Pedro
HSBC International Trustee Limited
Compass Point, Bermudian Road
Hamilton HM 11
Bermuda
Telephone: (441) 299-6482
Facsimile: (441) 299-6526
CHAMBERI LIMITED: Creditors' Proofs of Debt Due on October 13
-------------------------------------------------------------
The creditors of Chamberi Limited are required to file their
proofs of debt by October 13, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on August 25, 2010.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street
George Town Grand Cayman, KY1-9002
Cayman Islands
CPIM GLOBAL: Creditors' Proofs of Debt Due on October 13
--------------------------------------------------------
The creditors of CPIM Global Financials Fund Inc. are required to
file their proofs of debt by October 13, 2010, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on August 20, 2010.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street
George Town Grand Cayman, KY1-9005
Cayman Islands
CROSBY ACTIVE: Commences Liquidation Proceedings
------------------------------------------------
On August 13, 2010, the sole shareholder of Crosby Active
Opportunities Feeder Fund Limited resolved to voluntarily
liquidate the company's business.
The company's liquidators are:
Fok Hei Yu
Roderick John Sutton
FS Asia Advisory Limited
The Hong Kong Club Building, 14th Floor
3A Chater Road, Central
Hong Kong
Telephone: +852 2820 5600
CROSBY ACTIVE: Commences Liquidation Proceedings
------------------------------------------------
On August 13, 2010, the sole shareholder of Crosby Active
Opportunities Master Fund Limited resolved to voluntarily
liquidate the company's business.
The company's liquidators are:
Fok Hei Yu
Roderick John Sutton
FS Asia Advisory Limited
The Hong Kong Club Building, 14th Floor
3A Chater Road, Central
Hong Kong
Telephone: +852 2820 5600
EUROTAX GLASS'S: Creditors' Proofs of Debt Due on October 8
-----------------------------------------------------------
The creditors of Eurotax Glass's Investments GP Ltd. are required
to file their proofs of debt by October 8, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
EUROTAX GLASS'S: Shareholders' Final Meeting Set for October 11
---------------------------------------------------------------
The shareholders of Eurotax Glass's Investments GP Ltd. will hold
their final meeting, on October 11, 2010, at 9:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
GS ASSOCIATED: Creditors' Proofs of Debt Due on October 13
----------------------------------------------------------
The creditors of GS Associated Partners Access Offshore Advisors,
Inc. are required to file their proofs of debt by October 13,
2010, to be included in the company's dividend distribution.
The company commenced liquidation proceedings on August 23, 2010.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street
George Town Grand Cayman, KY1-9005
Cayman Islands
HM4-EQ/EN/FOF: Creditors' Proofs of Debt Due on October 8
---------------------------------------------------------
The creditors of HM4-EQ/EN/FOF Coinvestors, Ltd. are required to
file their proofs of debt by October 8, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
HM4-EQ/EN/FOF: Shareholders' Final Meeting Set for October 11
-------------------------------------------------------------
The shareholders of HM4-EQ/EN/FOF Coinvestors, Ltd. will hold
their final meeting, on October 11, 2010, at 9:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
HMTF CANADIAN: Creditors' Proofs of Debt Due on October 8
---------------------------------------------------------
The creditors of HMTF Canadian Cable Ltd. are required to file
their proofs of debt by October 8, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
HMTF CANADIAN: Shareholders' Final Meeting Set for October 11
-------------------------------------------------------------
The shareholders of HMTF Canadian Cable Ltd. will hold their final
meeting, on October 11, 2010, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
HMTF FUND: Creditors' Proofs of Debt Due on October 8
-----------------------------------------------------
The creditors of HMTF Fund IV, Ltd. are required to file their
proofs of debt by October 8, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
HMTF FUND: Members' Final Meeting Set for October 11
----------------------------------------------------
The members of HMTF Fund IV, Ltd. will hold their final meeting,
on October 11, 2010, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
HMTF PRIVATE: Creditors' Proofs of Debt Due on October 8
--------------------------------------------------------
The creditors of HMTF Private Fund IV, Ltd. are required to file
their proofs of debt by October 8, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
HMTF PRIVATE: Shareholders' Final Meeting Set for October 11
------------------------------------------------------------
The shareholders of HMTF Private Fund IV, Ltd. will hold their
final meeting, on October 11, 2010, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
IBIS ASSET: Creditors' Proofs of Debt Due on October 13
-------------------------------------------------------
The creditors of Ibis Asset Management (Cayman) Ltd are required
to file their proofs of debt by October 13, 2010, to be included
in the company's dividend distribution.
The company commenced liquidation proceedings on August 18, 2010.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street
George Town Grand Cayman, KY1-9005
Cayman Islands
LOOMIS SAYLES: Creditors' Proofs of Debt Due on October 13
----------------------------------------------------------
The creditors of Loomis Sayles Energy Master Fund Ltd. are
required to file their proofs of debt by October 13, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on August 25, 2010.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street
George Town Grand Cayman, KY1-9005
Cayman Islands
MALBEC EMERGING: Creditors' Proofs of Debt Due on October 4
-----------------------------------------------------------
The creditors of Malbec Emerging Markets Opportunities Fund, SPC
are required to file their proofs of debt by October 4, 2010, to
be included in the company's dividend distribution.
The company commenced wind-up proceedings on August 19, 2010.
The company's liquidator is:
Reid Services Limited
Clifton House, 75 Fort Street
P.O. Box 190, Grand Cayman, KY1-1104
Cayman Islands
MALBEC EMERGING: Creditors' Proofs of Debt Due on October 4
-----------------------------------------------------------
The creditors of Malbec Emerging Markets Opportunities GP Limited
are required to file their proofs of debt by October 4, 2010, to
be included in the company's dividend distribution.
The company commenced wind-up proceedings on August 19, 2010.
The company's liquidator is:
Reid Services Limited
Clifton House, 75 Fort Street
P.O. Box 190, Grand Cayman, KY1-1104
Cayman Islands
MARINER LATITUDE: Creditors' Proofs of Debt Due on October 8
------------------------------------------------------------
The creditors of Mariner Latitude International, Ltd. are required
to file their proofs of debt by October 8, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on August 24, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
MARINER LATITUDE: Shareholders' Final Meeting Set for October 11
----------------------------------------------------------------
The shareholders of Mariner Latitude International, Ltd. will hold
their final meeting, on October 11, 2010, at 9:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on August 24, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
MARINER LATITUDE: Creditors' Proofs of Debt Due on October 8
------------------------------------------------------------
The creditors of Mariner Latitude Master Fund, Ltd. are required
to file their proofs of debt by October 8, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on August 24, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
MARINER LATITUDE: Shareholders' Final Meeting Set for October 11
----------------------------------------------------------------
The shareholders of Mariner Latitude Master Fund, Ltd. will hold
their final meeting, on October 11, 2010, at 9:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on August 24, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
SPF CAYMAN: Creditors' Proofs of Debt Due on October 8
------------------------------------------------------
The creditors of SPF Cayman Ltd. are required to file their proofs
of debt by October 8, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
SPF CAYMAN: Shareholders' Final Meeting Set for October 11
----------------------------------------------------------
The shareholders of SPF Cayman Ltd. will hold their final meeting,
on October 11, 2010, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on August 20, 2010.
The company's liquidators are:
E. Andrew Hersant
Christopher Humphries
c/o Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510, Grand Cayman KY1-1104
Cayman Islands
TUDOR EMERGING: Creditors' Proofs of Debt Due on October 13
-----------------------------------------------------------
The creditors of Tudor Emerging Markets GP Ltd are required to
file their proofs of debt by October 13, 2010, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on August 26, 2010.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106, Grand Cayman KY1-1205
Cayman Islands
VOLUNTEER INSURANCE: Placed Under Voluntary Liquidation
-------------------------------------------------------
At an extraordinary general meeting held on August 16, 2010, the
shareholders of Volunteer Insurance resolved to voluntarily
liquidate the company's business.
The company's liquidators are:
Kenneth Krys
Timothy LeCornu
Krys & Associates Cayman Ltd
23 Lime Tree Bay Avenue
Governors Square, Building 6, 2nd Floor
P.O. Box 31237, KY1-1205, Grand Cayman
Cayman Islands
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C O L O M B I A
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BANCOLOMBIA SA: Moody's Gives Positive Outlook on 'Ba2' Rating
--------------------------------------------------------------
Moody's Investors Service changed the outlook on Bancolombia
S.A.'s and Banco de Bogota's long term foreign currency deposit
ratings of Ba2 to positive, from stable.
The outlook change on the foreign currency deposit ratings for
Bancolombia and Banco de Bogota are in line with the outlook
change of Colombia's foreign currency deposit ceiling of Ba2.
Bancolombia's and Banco de Bogota's foreign currency deposit
ratings of Ba2 are constrained by the ceiling of Ba2.
The last rating action on Bancolombia was on 14 July 2010, when
Moody's assigned a foreign currency debt rating of Baa3 to the
bank's US$620 million subordinated bond due July 26, 2020 (coupon
of 6.125%). The ratings on Bancolombia's subordinated issuances
are not constrained by the Baa3 country ceiling for foreign
currency debt, and as such remain with a stable outlook..
The last announcement on Banco de Bogota was on 1 September 2010,
when Moody's placed its bank financial strength rating of C- and
long and short term local currency deposit ratings of Baa1/Prime-2
on review for possible downgrade. The last rating action on Banco
de Bogota was on 14 October 2009, when Moody's downgraded the
bank's local currency deposit rating to Baa1, from A2.
These ratings were affected:
Bancolombia S.A.
-- Long term foreign currency deposit rating of Ba2, outlook
changed to positive, from stable
Banco de Bogota
-- Long term foreign currency deposit rating of Ba2, outlook
changed to positive, from stable
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C U B A
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* CUBA: To Make 500,000 Government Jobs Redundant by 2011
---------------------------------------------------------
The Cuban government said it will fire at least half a million
state workers by mid-2011 and will free up private enterprise to
help them find new work -- radically remaking employment on the
communist island, The Associated Press reports.
According to the report, citing the Cuban Workers Confederation,
the layoffs will start immediately and run through the first half
of next year.
The union, the AP relates, said that the government would
authorize simultaneous increases in job opportunities in the non-
state sector, allowing more Cubans to become self-employed, to
form cooperatives run by employees rather than government
bureaucrats, and to increase private control of state land and
infrastructure through long-term leases.
* * *
As of September 14, 2010, the country continues to carry Moody's
"Caa2" country ceiling long-term foreign deposit rating and "Caa1"
issuer and long-term ratings.
==================================
D O M I N I C A N R E P U B L I C
==================================
INVERCAR: Judge Charges Senior Executives With Swindling
--------------------------------------------------------
The La Romana Instruction Judge Carlos Manuel Baez issued arrest
warrants against senior executives of financial company Invercar
and its subsidiary, realtor Grema S.A, for swindling businessman
Henry Leonidas Tejada, The Dominican Today reports.
According to the report, Judge Baez declared Invercar President
Marcos Marcelino Cabrera and his sister, Alexandra Marcelino,
administrator of Grema SA, as fugitives and accused of them of
stealing RD$21 million from Mr. Tejada. The report relates Mr.
Tejada deposited funds in both companies as investment
certificates.
The Dominican Today notes that on June 17, 2010, the Banks
Superintendence intervened on Invercar's operations, after
Monetary Board declared it bankrupt. The report relates that the
company was ordered to be dissolved, dragging Grema SA with it,
affecting hundreds of depositors and investors.
The Dominican Today says that the Marcelino brothers and other
close relatives operated Invercar and Grema jointly for 25 years,
and obtained hundreds of million of pesos from different sources,
but the now missing funds will prevent repaying those jeopardized.
Mr. Tejada filed the civil and criminal complaint against the
Marcelino brothers, through his lawyers Angel Cano, Dianirys
Perderaux and Carlos de la Rosa, the report adds.
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M E X I C O
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HIPOTECARIA SU: Moody's Junks Senior Unsecured Debt Rating
----------------------------------------------------------
Moody's Investors Service downgraded Hipotecaria Su Casita, S.A.
de C.V.'s senior unsecured debt rating to Caa2 from B2, global
scale local currency issuer rating to Caa2 from B2 (national scale
issuer rating to Caa2.mx from Baa3.mx) and long-term corporate
family rating to Caa2 from B2. The ratings were placed on review
for possible further downgrade.
These ratings were downgraded and placed on review for possible
further downgrade:
* Hipotecaria Su Casita, S.A. De C.V. -- National scale issuer
rating to Caa2.mx from Baa3.mx;
* global scale local currency issuer rating to Caa2 from B2;
* corporate family rating to Caa2 from B2 and senior notes to Caa2
from B2
Ratings Rationale
This rating action follows the announcement on September 10th that
negotiations with BBVA Bancomer to purchase a portion of Su
Casita's loan portfolio had ceased due to an inability to reach
agreement on valuation. Su Casita's current liquidity position is
weak, as the Sofome has sufficient funds available to cover
existing debt only through the middle of 1Q 2011, at which time
the company would suffer a liquidity shortfall.
In its review Moody's will monitor Su Casita's ability to repay
its short-term obligations, in light of the company's limited
access to external sources of capital. In addition, Moody's will
also closely monitor the Sofome's ultimate strategic direction and
capital structure as well any additional support it may receive
from Sociedad Hipotecaria Federal.
Should the company not adequately address its liquidity
constraints, the ratings would likely face a multiple-notch
downgrade, reflecting the increased likelihood of default and the
potential for above average loss severity for bondholders in the
event of default.
The last rating action with respect to Su Casita was on June 21,
2010, when Moody's downgraded its senior unsecured debt rating to
B2, from B1, national scale issuer rating to Baa3.mx, from
Baa1.mx, the global scale local currency issuer rating to B2, from
B1 and the LT corporate family rating to B2, from B1. The rating
outlook remained negative.
Su Casita's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of Su Casita's core industry and the company's ratings are
believed to be comparable to those of other issuers of similar
credit risk.
Su Casita, based in Mexico City, Mexico, started operations in
1994 as a non-bank financial institution/Sofol Mortgage Company.
Su Casita's main activity consists of extending mortgage loans
financed by monies from SHF to low income individuals -- an
important role in the low-income housing market, as there is no
rental market in Mexico. As of June 30, 2010, the company
reported total assets of approximately US$37.9 billion Mexican
pesos, and US$2.6 billion Mexican pesos in equity.
* MEXICO: Moody's Affirms 'B1' Rating on Ramos Arizpe
-----------------------------------------------------
Moody's de Mexico upgraded the issuer rating of the Municipality
of Ramos Arizpe to Baa2.mx (Mexico National Scale) from Baa3.mx.
Moody's Investors Service affirmed the issuer rating of the
Municipality of Ramos Arizpe of B1 (Global Scale, local currency).
The outlook on the ratings is stable.
Ratings Rationale
The upgrade reflects a recent improvement in the municipality's
gross operating balances, driven by robust growth in own-source
revenues, and an easing of debt and debt service pressures, owing
to a refinancing that extended its amortization schedule.
In recent years, Ramos Arizpe's credit profile has been
strengthened by the recording of consistent operating margins that
generate pay-as-you-go financing for a portion of capital
projects. Between 2005 and 2009, gross operating balances
(operating revenues minus operating spending, including interest
payments) averaged 14.1% of operating revenues, a strong level
compared to national peers. This performance reflects gains in
own-source revenues and federal transfers that have outpaced
spending pressures for salaries and general service costs: between
2005 and 2009, operating revenues expanded at a compound annual
growth rate of 11.1%, outpacing the equivalent 9.6% CAGR for
operating expenditures.
As a reflection of the paying-off of short-term debt obligations
and strong revenue growth, Ramos Arizpe's debt burden declined
significantly in 2009. Specifically, net direct and indirect debt
as a percentage of total revenues decreased to 25.5% in 2009, from
a recent peak of 49.6% in 2008. Given Moody's expectations of
roughly balanced consolidated fiscal results over the near term,
and recognizing that the current administration, which took power
in January 2010, does not have plans to contract additional debt,
Moody's expect debt service payments to remain manageable, at less
than 5.0% of total revenues in 2010 and 2011.
The Baa2.mx/B1 ratings also reflect credit challenges stemming
from the municipality's narrow liquidity position, which limits
internal capacity to absorb unforeseen shocks. Net working
capital (current assets net of current liabilities) has been
negative during the last five years, mainly due to the
accumulation of accounts payable to public works suppliers. In
2009, net working capital amounted to -13.4% of total
expenditures, a low level compared to peers.
The last rating action on the Municipality of Ramos Arizpe was
taken on 12 November 2008, when Moody's assigned Baa3.mx (Mexico
National Scale Rating) and B1 (Global Scale, local currency)
issuer ratings.
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T R I N I D A D & T O B A G O
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CL FIN'L: Guyana President to Meet With CLICO Policyholders
-----------------------------------------------------------
Guyana President Bharrat Jagdeo is scheduled to hold discussions
on September 16, 2010, with more than 10,000 policyholders of
Clico Life and General Insurance (South America) Limited (CLICO
Guyana) who are affected by the company's financial dilemma,
Caribbean News Now reports.
According to the report, on September 10, Guyana Chief Justice Ian
Chang ruled that CLICO be wound up and that the Bank of Guyana be
appointed liquidator for the purpose of executing the order for
the company's winding up. The report relates that the ruling
complements the government's efforts to ensure that the company is
wound up so that there is an orderly resolution of the
difficulties it encountered and that the public's interest is
protected.
Asked what will be the fate of some of CLICO's assets at present,
President Jagdeo said the liquidator is now tasked with re-
advertising a number of the assets already up for sale, the report
notes. "We are hoping that bid prices would approximate the book
value, we're not sure because that's up to the market to decide
but we are hoping that if they approximate closer to the book
value of these assets, then there will be more resources available
so we can see a faster reimbursement of the policyholders," the
report quoted President Jagdeo as saying.
Questioned whether it is possible for the Guyana government to
take possession of some of the assets, President Jagdeo said those
decisions will have to be made after bids have been received, the
report relates. "If the bids are too low then we will have to
find alternative arrangements, to occupy these buildings . . .
because we do have to build additional buildings because of
greater demands for public service. So if we find that bids are
too low we may very well pay that money and acquire these
buildings for governmental purposes," he added.
Caribbean News Now notes that the CLICO debacle stemmed from
volatility in the global financial sector that resulted in the
Bahamian regulators, obtaining a liquidation order on February 24,
2009, from the courts in relation to CLICO Bahamas Limited. The
report relates that the Guyana government subsequently approached
the High Court and obtained an order placing CLICO under judicial
management.
The report says that CLICO Guyana has GY$6.9 billion or
approximately US$34 million invested in CLICO Bahamas, which
represents 53% of the Guyana company's total assets. The report
relates that The National Insurance Scheme, in turn, has invested
TT$6 billion in CLICO Guyana.
About CL Financial
CL Financial Limited is a privately held conglomerate in Trinidad
and Tobago. Founded as an insurance company, Colonial Life
Insurance Company by Cyril Duprey, it was expanded into a
diversified company by his nephew, Lawrence Duprey. CL Financial
is now one of the largest local conglomerates in the region,
encompassing over 65 companies in 32 countries worldwide with
total assets standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, A.M. Best Co. downgraded the financial strength
rating to C (Weak) from B (Fair) and issuer credit rating to "ccc"
from "bb" of Colonial Life Insurance Company (Trinidad) Limited
(CLICO) (Trinidad & Tobago). The ratings remain under review with
negative implications. CLICO is an insurance member company of CL
Financial Limited (CL Financial), a diversified holding company
based in Trinidad & Tobago.
According to a TCRLA report on Feb. 20, 2009, citing Trinidad and
Tobago Express, Tobago President George Maxwell Richards signed
bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis
COLONIAL LIFE: A.M. Best Withdraws 'C' Financial Strength Rating
----------------------------------------------------------------
A.M. Best Co. has withdrawn the financial strength rating of C
(Weak) and issuer credit rating (ICR) of "ccc" of Colonial Life
Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago)
and assigned an NR-5 (Not Formally Followed) to the FSR and an
"nr" to the ICR. The ratings have been removed from under review
with negative implications. CLICO is an insurance member company
of CL Financial Limited (CL Financial), a diversified holding
company based in Trinidad & Tobago.
The rating actions reflect CLICO's management's decision to no
longer participate in A.M. Best's interactive rating process.
Despite repeated requests, A.M. Best has been unsuccessful in
receiving updated financial information or satisfactory levels of
dialogue with CLICO's new management. The information A.M. Best
was requesting is necessary for A.M. Best to perform its analysis
on the financial condition of the company. Given the lack of
transparency, A.M. Best is withdrawing its interactive rating on
the company effective immediately.
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V E N E Z U E L A
=================
HOLCIM: Receives US$650 Million for Seized Assets
-------------------------------------------------
Haig Simonian at The Financial Times reports that Holcim has
reached agreement with Venezuela over compensation for the seizure
of its assets in 2008, ending a two-year stand-off with President
Hugo Chavez's government.
According to the report, Holcim said it would receive US$650
million for its former Venezuelan subsidiary, Holcim Venezuela
C.A., which was nationalized in 2008 -- along with other
construction companies' assets -- after complaints by President
Chavez that not enough homes were being built.
The report notes that the two sides clashed over compensation,
with Holcim turning down Venezuela's initial offers as inadequate.
In 2009, the report relates, the construction company initiated an
arbitration procedure before the International Centre for
Settlement of Investment Disputes.
The FT says that under the surprise agreement with Venezuela,
Holcim has received an initial US$260 million downpayment, with
the remaining US$390 million to be paid in four equal installments
over the next four years. The arbitration procedure will be
suspended.
Holcim said the initial proceeds would be used to reduce debt,
while in the longer term, the compensation would go towards
boosting investments, the report adds.
Holcim is a Swiss cement company.
***********
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.
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* * * End of Transmission * * *