/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110708.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, July 8, 2011, Vol. 12, No. 134 Headlines A R G E N T I N A DIAGRAMA PUBLICITARIO: Creditors' Proofs of Debt Due September 5 ECOSYSTEM SA: Requests Opening of Reorganization Proceedings MAUMIS SA: Creditors' Proofs of Debt Due August 9 PILARMATE SRL: Creditors' Proofs of Debt Due August 17 PUNNTO PDS: Creditors' Proofs of Debt Due September 14 SERVIPALLETS SA: Creditors' Proofs of Debt Due August 22 C A Y M A N I S L A N D S AJW MASTER: Appoints Walker and Stokoe as Liquidators CEDARVIEW LEVERAGED: Creditors' Proofs of Debt Due July 26 FORTROSS EMERGING: Creditors' Proofs of Debt Due August 4 GARDEN REACH: Creditors' Proofs of Debt Due August 5 GOLDMAN SACHS: Creditors' Proofs of Debt Due August 4 LARRAU NOUVEAU: Creditors' Proofs of Debt Due August 4 LIFE SETTLEMENTS I: Creditors' Proofs of Debt Due July 26 MOSELLE NOUVEAU: Creditors' Proofs of Debt Due August 4 PANDA GLOBAL MASTER: Creditors' Proofs of Debt Due August 4 PANDA GLOBAL FUND: Creditors' Proofs of Debt Due August 4 ROBIN LTD: Creditors' Proofs of Debt Due July 22 SEMPERMACRO FUND: Creditors' Proofs of Debt Due August 5 SEMPERMACRO MASTER: Creditors' Proofs of Debt Due August 5 WOODPECKER INVESTMENTS: Creditors' Proofs of Debt Due July 20 ZEBRA LIMITED: Creditors' Proofs of Debt Due July 22 J A M A I C A UC RUSAL: Minister to Hold Talks on Kirkvine Plant Reopening * JAMAICA: Ranks 5th as in Worst Economies in the World Survey M E X I C O DESARROLLADORA HOMEX: S&P Puts 'BB-' CCR on Watch Negative GRUPO IUSACELL: 2013 Bondholders Agree to 50% Cut, Delayed Payment PACIFIC RUBIALES: S&P Ups CCR to 'BB' on Improved Finc'l. Profile P A N A M A NEWLAND INTERNATIONAL: Moody's Cuts Sr. Secured Rating to 'B3' P U E R T O R I C O HOSPITAL DAMAS: Court Approves Settlement with Puerto Hospital X X X X X X X X * LATAM: Moody's Says Good Governance is Vital for Family Firms - - - - - ================= A R G E N T I N A ================= DIAGRAMA PUBLICITARIO: Creditors' Proofs of Debt Due September 5 ---------------------------------------------------------------- Victor Tomasi, the court-appointed trustee for Diagrama Publicitario SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 5, 2011. Mr. Tomasi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 37, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Victor Tomasi Bogota 2791 Argentina ECOSYSTEM SA: Requests Opening of Reorganization Proceedings ------------------------------------------------------------ Ecosystem SA requested the opening of reorganization proceedings. The company has defaulted on its payments due November 10, 2010. MAUMIS SA: Creditors' Proofs of Debt Due August 9 ------------------------------------------------- Norberto Ruben Di Napoli, the court-appointed trustee for Maumis SA's reorganization proceedings, will be verifying creditors' proofs of claim until August 9, 2011. Mr. Di Napoli will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 26 in Buenos Aires, with the assistance of Clerk No. 51, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Norberto Ruben Di Napoli Marcelo Torcuato de Alvear 925 Argentina PILARMATE SRL: Creditors' Proofs of Debt Due August 17 ------------------------------------------------------ Zulma Gloria Ghogliano, the court-appointed trustee for Pilarmate SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until August 17, 2011. Mr. Ghogliano will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 47, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Zulma Gloria Ghogliano Cipoletti 554 Argentina PUNNTO PDS: Creditors' Proofs of Debt Due September 14 ------------------------------------------------------ Beatriz del Carmen Muruaga, the court-appointed trustee for Punnto PDS Argentina SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 14, 2011. Ms. Muruaga will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 1, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Beatriz del Carmen Muruaga Aguero 1290 Argentina SERVIPALLETS SA: Creditors' Proofs of Debt Due August 22 -------------------------------------------------------- Susana L. Erusalimsky, the court-appointed trustee for Servipallets SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until August 22, 2011. Ms. Erusalimsky will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 24, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Susana L. Erusalimsky Espinosa 2501 Argentina =========================== C A Y M A N I S L A N D S =========================== AJW MASTER: Appoints Walker and Stokoe as Liquidators ----------------------------------------------------- On May 30, 2011, the Grand Court of the Cayman Islands appointed David Walker and Ian Stokoe as liquidators of AJW Master Fund II, Ltd. The Liquidators can be reached at: David Walker Ian Stokoe c/o Elizabeth Osborne Telephone: (345) 914 8686 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands CEDARVIEW LEVERAGED: Creditors' Proofs of Debt Due July 26 ---------------------------------------------------------- The creditors of Cedarview Leveraged Opportunities Ma, Ltd. are required to file their proofs of debt by July 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 20, 2011. The company's liquidator is: Swiss Re Services Limited 30 St Mary's Axe London FORTROSS EMERGING: Creditors' Proofs of Debt Due August 4 --------------------------------------------------------- The creditors of Fortross Emerging Opportunity Fund, Ltd. are required to file their proofs of debt by August 4, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 15, 2011. The company's liquidator is: Tagora Capital LLP Smeets Law (Cayman) Attorneys-at-Law for the Company Reference: GJJ Telephone: (+1) 345 815 2800 Facsimile: (+1) 345 947 4728 Suite 2206, Cassia Court 72 Market Street, Camana Bay P.O. Box 32302 Grand Cayman KY1-1209 Cayman Islands GARDEN REACH: Creditors' Proofs of Debt Due August 5 ---------------------------------------------------- The creditors of Garden Reach Ltd. are required to file their proofs of debt by August 5, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 20, 2011. The company's liquidator is: Royhaven Secretaries Limited c/o Julie Reynolds Telephone: 945 4777 Facsimile: 945 4799 P.O. Box 707 Grand Cayman KY1-1107 GOLDMAN SACHS: Creditors' Proofs of Debt Due August 4 ----------------------------------------------------- The creditors of Goldman Sachs Master Alpha Transport Fund, Ltd. are required to file their proofs of debt by August 4, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 10, 2011. The company's liquidator is: Walkers Corporate Services Limited c/o Jennifer Chailler Telephone: (345) 814 6847 Walker House 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands LARRAU NOUVEAU: Creditors' Proofs of Debt Due August 4 ------------------------------------------------------ The creditors of Larrau Nouveau Investments Limited are required to file their proofs of debt by August 4, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 15, 2011. The company's liquidator is: Walkers Corporate Services Limited c/o Jennifer Chailler Telephone: (345) 814 6847 Walker House 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands LIFE SETTLEMENTS I: Creditors' Proofs of Debt Due July 26 --------------------------------------------------------- The creditors of Life Settlements I Limited are required to file their proofs of debt by July 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 22, 2011. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands MOSELLE NOUVEAU: Creditors' Proofs of Debt Due August 4 ------------------------------------------------------- The creditors of Moselle Nouveau Investments Limited are required to file their proofs of debt by August 4, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 15, 2011. The company's liquidator is: Walkers Corporate Services Limited c/o Jennifer Chailler Telephone: (345) 814 6847 Walker House 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands PANDA GLOBAL MASTER: Creditors' Proofs of Debt Due August 4 ----------------------------------------------------------- The creditors of The Panda Global Master Fund, Ltd. are required to file their proofs of debt by August 4, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 17, 2011. The company's liquidator is: Alan Turner Turner & Roulstone Strathvale House, 3rd Floor 90 North Church Street P.O. Box 2636, George Town Grand Cayman KY1-1102 Cayman Islands Telephone: 943 5555 PANDA GLOBAL FUND: Creditors' Proofs of Debt Due August 4 --------------------------------------------------------- The creditors of The Panda Global Fund, Ltd. are required to file their proofs of debt by August 4, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 17, 2011. The company's liquidator is: Alan Turner Turner & Roulstone Strathvale House, 3rd Floor 90 North Church Street P.O. Box 2636, George Town Grand Cayman KY1-1102 Cayman Islands Telephone: 943 5555 ROBIN LTD: Creditors' Proofs of Debt Due July 22 ------------------------------------------------ The creditors of Robin Ltd are required to file their proofs of debt by July 22, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 20, 2011. The company's liquidator is: Buchanan Limited c/o Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170 Grand Cayman KY1-1102 Cayman Islands SEMPERMACRO FUND: Creditors' Proofs of Debt Due August 5 -------------------------------------------------------- The creditors of The Sempermacro Fund Limited are required to file their proofs of debt by August 5, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 13, 2011. The company's liquidator is: Stuart Sybersma c/o Claudine Thompson Deloitte & Touche P.O. Box 1787 Grand Cayman KY1-1109 Cayman Islands Telephone: +1 (345) 814 2342 Facsimile: +1 (345) 949 8258 e-mail: cthompson@deloitte.com SEMPERMACRO MASTER: Creditors' Proofs of Debt Due August 5 ---------------------------------------------------------- The creditors of The Sempermacro Master Fund Limited are required to file their proofs of debt by August 5, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 13, 2011. The company's liquidator is: Stuart Sybersma c/o Claudine Thompson Deloitte & Touche P.O. Box 1787 Grand Cayman KY1-1109 Cayman Islands Telephone: +1 (345) 814 2342 Facsimile: +1 (345) 949 8258 e-mail: cthompson@deloitte.com WOODPECKER INVESTMENTS: Creditors' Proofs of Debt Due July 20 ------------------------------------------------------------- The creditors of Woodpecker Investments Ltd. are required to file their proofs of debt by July 20, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 1, 2011. The company's liquidator is: Rankin Berkower (Cayman) Ltd. c/o Philip Rankin Telephone: 345-949-7818 ext 21 Facsimile: 345-946-7051 Corporate Plaza, 1st Floor P.O. Box 30349 Grand Cayman KY1-1202 Cayman Islands ZEBRA LIMITED: Creditors' Proofs of Debt Due July 22 ---------------------------------------------------- The creditors of Zebra Limited are required to file their proofs of debt by July 22, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 20, 2011. The company's liquidator is: Buchanan Limited c/o Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170 Grand Cayman KY1-1102 Cayman Islands ============= J A M A I C A ============= UC RUSAL: Minister to Hold Talks on Kirkvine Plant Reopening ------------------------------------------------------------ RJR News reports that Clive Mullings, the new Jamaica minister of energy and mining, will hold a briefing with UC Rusal to ascertain the company's plans with regards to the reopen of its Kirkvine plant in Manchester on July 6. RJR News relates that the plant was scheduled to resume operations on July 1 but it did not materialize. As reported in the Troubled Company Reporter-Latin America on June 14, 2011, RJR News said that UC Rusal threatens to postpone its July 1 plan to reopen the Kirkvine Plant in Manchester after not getting certain concessions from the Golding administration to resume production. The re-opening's delay, according to the report, will pose a setback to the recovery of Jamaica's bauxite/alumina industry. RJR News adds that the re-employment of 300 persons is also on the line if UC Rusal carries out its threat. "Questions were coming up about the issue of the levy and any concession that UC Rusal would like to get but that is something Cabinet has deliberated on I will be having a full briefing on it and in short order I will explain where we go from here. I am to meet with the (officials) from UC Rusal as well and the unions when I've been fully briefed," RJR News quoted Mr. Mullings as saying. Meanwhile, RJR News notes that the National Workers' Union (NWU), which represented former employees of the Kirkvine Plant, said there is growing anxiety in bauxite communities in Manchester following the July 1 failed reopening. NWU President Vincent Morrison said there is also concern about the Government's handling of the negotiations with UC Rusal, RJR News adds. UC Rusal is a Russian aluminum giant. * JAMAICA: Ranks 5th as in Worst Economies in the World Survey -------------------------------------------------------------- RJR News reports that Forbes Magazine said that Jamaica has the 5th worst economy in 2011 due to Jamaica being a victim of the global financial crisis. Forbes said it based the ranking on the devastating impact the crisis had on Jamaica's vital tourism industry, according to RJR News. The report relates that it's a claim which flies in the face of official statistics which indicate that even though, tourism bookings were tempered, growth in that industry was realized through the throes of the recession. Now, Jamaica is out of that recession. RJR News says that a 1.4% growth between January and March confirmed that much and that growth was led by the tourism industry. Another questionable assertion Forbes made is that poverty in the country has been halved to 10%, RJR News adds. =========== M E X I C O =========== DESARROLLADORA HOMEX: S&P Puts 'BB-' CCR on Watch Negative ---------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' rating on Mexican homebuilder Desarrolladora Homex S.A.B. de C.V. on CreditWatch with negative implications. "We could lower or affirm the ratings once we evaluate Homex's financial and operating performance after the company reports its third-quarter results," S&P said. "The CreditWatch placement follows our perception of an increase in Homex's management risk tolerance, seen in its aggressive growth targets that have required significant investments in working capital and higher-than-expected use of debt," said Standard & Poor's credit analyst Laura Martinez. This has led to deterioration in the company's financial metrics. "The company's aggressive growth targets and financial policy in a highly competitive market, its higher use of debt to support its growth plans, and its significant working-capital requirements that have limited free operating cash flow (FOCF) generation limit our ratings on Homex. The ratings also reflect the concentration of mortgage origination in Infonavit and Fovissste, and a degree of political risk inherent to these institutions. Homex's position as one of the largest homebuilders in Mexico, its leading position in the sector, and its geographic diversity support the ratings. We assess Homex's business risk profile as fair," S&P stated. "We view Homex's financial risk profile as aggressive. Homex has continued to make significant investments in working capital, specifically related to work-in-progress inventory, to sustain its aggressive revenue growth target of 13% to 16% for 2011. This led to negative FOCF of Mexican pesos (MXN) 540 million during the first quarter of 2011 and negative by MXN2.7 billion in 2010. Resulting debt has been higher than we expected, and key financial ratios have been weaker. Its adjusted total debt-to-EBITDA, EBITDA interest coverage, and funds from operations (FFO)-to-total debt ratios were 3.3x, 2.2x, and 20.8% for the past 12 months ended March 31, 2011, compared with 2.7x, 2.7x, and 28.9% a year ago," S&P stated. "We will resolve the CreditWatch listing once Homex reports its third-quarter results and we evaluate the company's financial and operating performance. Specifically, our evaluation will focus on Homex's management risk tolerance and financial policy, as well as the company's improvement of its working capital requirements, FOCF generation, and efforts to deleverage. We could lower the ratings if we do not perceive an improvement on Homex's performance during the next two quarters, reflected in a positive FOCF generation and an adjusted total debt-to-EBITDA ratio of less than 3.0x," S&P said. GRUPO IUSACELL: 2013 Bondholders Agree to 50% Cut, Delayed Payment ------------------------------------------------------------------ Crayton Harrison at Bloomberg News reports that Grupo Iusacell SA said holders of US$206 million in bonds due in 2013 agreed to a restructuring plan in which they will get US$103 million in notes due 2017, plus additional fees. The plan was approved in Mexican bankruptcy court in April, and the new notes were to be issued around June 30 of this year, Iusacell said in a U.S. regulatory filing, according to Bloomberg. Grupo Iusacell SA is the Mexican mobile-phone carrier owned by billionaire Ricardo Salinas. PACIFIC RUBIALES: S&P Ups CCR to 'BB' on Improved Finc'l. Profile ----------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Pacific Rubiales Energy Corp. to 'BB' from 'BB-'. "We also raised our rating on Pacific Rubiales' US$450 million senior unsecured notes due 2016 to 'BB'. The outlook is stable," S&P stated. "The upgrade is based on the company's continued improvement in its operating and financial performance, which has exceeded our expectations," said Standard & Poor's credit analyst Fabiola Ortiz. For the past 12 months (LTM) ended March 31, 2011, the company's revenues doubled, reaching US$1.9 billion, mainly as a result of the increase in production at the Rubiales' and Quifa's heavy oil fields and, to a lesser extent, the start of operations in Peru and Guatemala. Moreover, the company's profits continue to improve, reaching and adjusted EBITDA margin of 56.8% as of March 31, 2011 (compared with 50.3% of the same period of 2010). For the past 12 months ended March 31, 2011, Pacific Rubiales posted an adjusted debt-to-EBITDA, funds from operations (FFO)-to- debt, and EBITDA interest coverage ratios of 0.8x, 89.4%, and 12.0x, which compares favorably with 1.8x, 39.3%, and 7.9x of the same period of 2010. For the past 12 months ended March 31, 2011, the company's adjusted discretionary cash flow was US$157.2 million. "The ratings on Pacific Rubiales also reflect our view of a fair business profile given the company's short track record and heavy concentration in the Colombian region. Pacific Rubiales is still a small exploration and production (E&P) company, although growing, when compared with other regional and local players. Recent and expected strong growth in production and reserves, strong liquidity, an experienced management team, and significant financial profile support the rating," S&P stated. "The stable outlook reflects our view that the company's financial performance will continue to be strong and that its good position will allow the company to continue executing its organic and geographic diversification growth strategies," S&P said. "If the company's production growth is beyond our expectations in the next few years and improves its geographic diversification while maintaining its current financial profile, we could raise the ratings. We could lower the ratings if the company's liquidity or financial flexibility deteriorates significantly to an adjusted total debt-to-EBITDA ratio of more than 3.0x and adjusted FFO to total debt of less than 20%," S&P added. =========== P A N A M A =========== NEWLAND INTERNATIONAL: Moody's Cuts Sr. Secured Rating to 'B3' -------------------------------------------------------------- Moody's downgraded Newland International Properties, Corp.'s senior secured rating to B3 and maintains the outlook at negative. The following rating was downgraded with a negative outlook: Newland International Properties, Corp. -- senior secured debt rating to B3 from B2 Ratings Rationale The rating downgrade reflects expected client defaults above 30% upon completion of construction deliveries in the 3Q11. In addition, the construction delivery schedule has been delayed substantially as a result of subcontractor delays, which have ultimately increased construction costs by approximately 8% or US$19.6 million. Newland however was able to fund the construction escrow account from sales and collection proceeds to date, avoiding another Construction Shortfall. The negative rating outlook reflects Moody's concerns regarding the ultimate collection of remaining balances on sold hotel and condo units upon completion and delivery, particularly as current estimates place default rates above 30%. In addition, uncertainty remains as to the cash generation ability of the project to sustain all of the first amortization payment due in November 2011. Moody's stated that a ratings upgrade is unlikely at this time. Despite the substantial pre-sales, uncertainty remains regarding full collection upon delivery of units, total sales and sales proceeds, as well as the global economic outlook. Moody's noted that the construction of the project is fully funded with the proceeds from the notes issuance. These funds are all in an escrow account. A downgrade would result from continued construction delays that further hinder current planned delivery of units. Any issues in the delivery process of units, including foreclosures above the current projected rate of 32-35% would also result in a downgrade. Moody's warns that any difficulties in making the November 2011 amortization payment on the bond would likely result in a multiple-notch downgrade. Moody's last rating action with respect to Newland was on May 18, 2010, when Moody's confirmed Newland's rating at B2 and changed the outlook to negative. This action concluded Moody's review started on April 5, 2010. Newland's rating was assigned by evaluating factors Moody's believes 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 issuers both within and outside of Newland's core industry and the company's ratings are believed to be comparable to those of other issuers of similar credit risk. Newland International Properties Corp. is a sociedad anonima organized under the laws of the Republic of Panama. Newland is a real estate development company established to develop the "Trump Ocean Club International Hotel & Tower" in Panama City, Panama. Trump Ocean Club is being developed as a multi-use luxury tower, overlooking the Pacific Ocean, with luxury condominium residences, a hotel condominium, a limited number of offices, and premier leisure amenities. Trump Ocean Club will be located on the Punta Pacifica Peninsula in Panama City, on approximately 2.8 acres (11,200 square meters) of land, including approximately 295 lineal feet (90 lineal meters) of oceanfront. ===================== P U E R T O R I C O ===================== HOSPITAL DAMAS: Court Approves Settlement with Puerto Hospital -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico has approved Hospital Damas Inc.'s settlement agreement/stipulation with Puerto Hospital Supply, Inc. The Debtor and PRHS have agreed to settle and compromise issues between them under these terms and conditions: A. The Debtor and PRHS concur that the total amount owing by Debtor to PRHS for the prepetition purchase of services and supplies totals US$673,437. B. The Debtor desires to assume and renew these executory contracts with PRHS: i) the X-ray and related products and services contract executed on April 10, 2010, and valid through April 9, 2013; ii) the "atados" Customed Packs contract executed on May 1, 2009, and valid through April 30, 2012; and iii) the Ethicon Sut/ethicon and ethicon endo contract executed on June 1, 2008, and valid through May 31, 2011, which is renewed pursuant to its terms; iv) the case cart cardiovascular surgery, materials and services contract originally executed on Sept. 1, 2007, and valid through Aug. 31, 2010, but which the parties by their conduct and dealings have effectively extended; v) the 3M contract for medical surgical supplies and services, executed on July 8, 2008, and valid through June 30, 2009, but which the parties by their conduct and dealings have effectively extended from year to year. C. The Debtor agrees to pay PRHS the amount of US$356,000 to cure all prepetition amounts owing to PRHS under the five executory contracts. A full-text copy of the settlement agreement is available for free at http://bankrupt.com/misc/HOSPITALDAMAS_settlementagreement.pdf About Hospital Damas, Inc. Ponce, Puerto Rico-based Hospital Damas, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 10-08844) on Sept. 24, 2010. Charles A. Cuprill-Hernandez, Esq., at Charles A. Cuprill, P.S.C., Law Offices, serves as the Debtor's bankruptcy counsel. Silva CPA Group serves as its financial advisor. Enrique Peral Law Offices, P.S.C., as special counsel. FPV & Galindez PSC to will assist in processing and preparing statistical data required for the preparation of the Medicare cost report. In October 2010, the U.S. Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors of the Debtor. Todd C. Meyers, Esq., and Colin M. Bernardino, Esq., at Kilpatrick Stockton LLP, represents the Committee as legal counsel, and Edgardo Munoz, Esq., at Edgardo Munoz, PSC, serves the Committee as local counsel. In its schedules, the Debtor disclosed US$24,017,166 in total assets and US$21,267,263 in total liabilities as of the Petition Date. =============== X X X X X X X X =============== * LATAM: Moody's Says Good Governance is Vital for Family Firms --------------------------------------------------------------- Significant derivatives-related corporate failures during the credit crisis and the growing number of smaller, tightly controlled companies tapping credit markets are highlighting the need for greater scrutiny of corporate governance practices in Latin America, says Moody's Investors Service in a new report. Governance practices across Latin America have continued to improve, says Moody's, but at different speeds in different jurisdictions. "There is also some question as to the speed of progress moving forward in 2011 and onward," said Christian Plath, a Moody's Vice President. "To date, corporate governance improvements in Latin America, as with other emerging markets, have been driven in large part by the need to attract foreign investment and lower the overall cost of capital. While this is still an important factor, there is a chance that broad-based governance reforms may slow or stall as the flood of 'hot money' currently pouring into emerging- market equity and debt provides much cheaper financing sources." In general, the quality of corporate governance in Latin America varies widely, says Moody's. On the one hand, market leaders will follow international "best practices." On the other hand, smaller, non-listed private firms often have governance practices that are questionable. Although these generally family-controlled firms can display certain governance strengths, family control in general will present more risks to investors than strengths over time, says Moody's. "From a bondholder's perspective, there are a range of potential strengths, weaknesses and mitigating factors that are more acute in family-controlled firms," said Moody's Plath. "In many cases, controlling shareholders abuse their position to the detriment of minority shareholders and other key stakeholders, including bondholders. Local corporate culture will also tolerate weaker standards of corporate governance." To provide investors with a useful framework for assessing the governance quality of these family-controlled firms, the new Moody's report presents a "top 10" list of corporate governance considerations. Among the considerations are transparency and disclosure, ownership and control, board composition and independence, executive leadership and transition risk. The additional considerations are CEO/chair separation, board committees, related party transactions, internal controls, and policy formalization. The report "Corporate Governance in Latin America: Our Top Ten Considerations for Non-Financial Family-Controlled Corporates," which is available on Moodys.com, also lists potential red flags that may be signs of bad governance and recent governance developments in select countries. *********** 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. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Psyche A. Castillon, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. 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 * * *