TCRLA_Public/110831.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

            Wednesday, August 31, 2011, Vol. 12, No. 172

                            Headlines



A R G E N T I N A

BIG HOUSE: Creditors' Proofs of Debt Due October 14
FULL SEG: Creditors' Proofs of Debt Due September 30
LUIS G LEDESMA: Creditors' Proofs of Debt Due October 7
NAVILLUS SA: Creditors' Proofs of Debt Due October 14
PUNTO ESPRESSO: Files for Bankruptcy

SOCIEDAD INTEGRAL: Creditors' Proofs of Debt Due October 21
VINCULOS SGR: Moody's Assigns B3 Global Local Currency IFS Rating


B R A Z I L

ANHANGUERA EDUCACIONAL: S&P Raises Corp. Credit Ratings to 'BB'


C A Y M A N   I S L A N D S

ASTRAL INTERNATIONAL: Creditors' Proofs of Debt Due August 29
BAYOU INVESTMENTS: Creditors' Proofs of Debt Due September 14
CMA TECHNOLOGY: Creditors' Proofs of Debt Due September 15
HESS PERU: Creditors' Proofs of Debt Due September 15
HESS PERU: Creditors' Proofs of Debt Due September 15

HESS (MALAYSIA-BLOCK F): Creditors' Proofs of Debt Due Sept. 15
HESS (PHILIPPINES): Creditors' Proofs of Debt Due September 15
ISLAND DRIVE: Creditors' Proofs of Debt Due September 14
SFJ ASSET: Creditors' Proofs of Debt Due September 15
SFJ FUNDING: Creditors' Proofs of Debt Due September 15


J A M A I C A

UC RUSAL: Suffers Big Drop in Profits for April to June Period


P U E R T O   R I C O

COSTA DORADA: Chapter 11 Case Reassigned to Judge Enrique Lamoutte
HOTEL AIRPORT: To Hire Edgardo Munoz as Bankruptcy Counsel
HOTEL AIRPORT: Files Schedules of Assets & Liabilities
PICHI'S INC: Schedules & Statement Due Today


V E N E Z U E L A

HOVENSA LLC: Moody's Assigns 'Ba2' Corporate Family Rating
VITRO SAB: Creditors to Appeal Recent Ruling


                            - - - - -


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


BIG HOUSE: Creditors' Proofs of Debt Due October 14
---------------------------------------------------
Hector Miguel Falvino, the court-appointed trustee for Big House
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until October 14, 2011.

Mr. Falvino 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. 2, 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:

         Hector Miguel Falvino
         Avenida Pueyrredon 468
         Argentina


FULL SEG: Creditors' Proofs of Debt Due September 30
----------------------------------------------------
Francisco Fernando Rovira, the court-appointed trustee for Full
Seg SRL's bankruptcy proceedings, will be verifying creditors'
proofs of claim until September 30, 2011.

Mr. Rovira will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 49, 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:

         Francisco Fernando Rovira
         Vallejos 4400
         Argentina


LUIS G LEDESMA: Creditors' Proofs of Debt Due October 7
-------------------------------------------------------
Norberto Manuel Palmeiro, the court-appointed trustee for Luis G
Ledesma Comunicaciones SA's bankruptcy proceedings, will be
verifying creditors' proofs of claim until October 7, 2011.

Mr. Palmeiro 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. 23, 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 Manuel Palmeiro
         Arcos 4033
         Argentina


NAVILLUS SA: Creditors' Proofs of Debt Due October 14
-----------------------------------------------------
Maria Delbuono, the court-appointed trustee for Navillus SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until October 14, 2011.

Ms. Delbuono will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of Clerk
No. 16, 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:

         Maria Delbuono
         Lavalle 1290
         Argentina


PUNTO ESPRESSO: Files for Bankruptcy
------------------------------------
Punto Espresso SA filed for bankruptcy.

The company has defaulted on its payments last July.


SOCIEDAD INTEGRAL: Creditors' Proofs of Debt Due October 21
-----------------------------------------------------------
Claudio Haimovici, the court-appointed trustee for Sociedad
Integral del Plata SRL's bankruptcy proceedings, will be verifying
creditors' proofs of claim until October 21, 2011.

Mr. Haimovici will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 7, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Claudio Haimovici
         Avenida Maipu 267
         Argentina


VINCULOS SGR: Moody's Assigns B3 Global Local Currency IFS Rating
-----------------------------------------------------------------
Moody's Latin America has assigned a B3 global local currency
insurance financial strength (IFS) rating and a A3.ar IFS rating
on Argentina's national scale to financial guarantor Vínculos SGR.
The ratings outlook is stable.

Ratings Rationale

Vínculos SGR is 50% owned by the Argentine protein producer Las
Camelias S.A., with the remainder distributed among more than 300
small- and mid-sized enterprises (SMEs) whose financial
obligations Vínculos guarantees.  Las Camelias is the fourth-
largest protein producer in Argentina, and buys the SMEs' output.
Outstanding guarantees are currently mainly for bank loans, but
management is planning to enter the local secured checks and
securitization markets.

Vínculos's ratings reflect the company's ownership by and tight
integration with Las Camelias.  Vínculos and Las Camelias have
common commercial and operational strategies and share some
management functions, such as technology and legal.  The SMEs are
mainly chicken breeders that sell their output to Las Camelias,
thus aligning the interests of the SMEs with Las Camelias and
Vínculos.

Aside from its ownership by Las Camelias, Vínculos's credit
strengths include its good capitalization and operating efficiency
compared with peers'.  The company's leverage, or ratio of total
outstanding guarantees to investments, was historically very low,
at 1 times or lower, given the approximately AR$7 million
contributed by Las Camelias in 2009 and in 2010; however, the
company's leverage has been increasing in recent quarters.  The
company's administrative expenses are in large part covered by
fees and commissions; at 31 December 2011 the company's three-year
average expense ratio was 97.5%, which is among the lowest in the
local financial guarantor industry.

However, Vínculos's business is heavily concentrated in guarantees
to a single economic sector, chicken breeding, and this represents
a major credit challenge.  Among the company's other credit
weaknesses are its relatively low market presence (it accounts for
less than 1% of the general guaranty system), the poor credit
quality of its investments, and the weak and volatile Argentine
operating environment.  Vínculos's investment portfolio is
comprised mainly of deposits in local and foreign currencies in
local banks and Argentine sovereign bonds, as local regulations
for financial guarantors allow only 10% of investments to be
foreign assets.  These types of assets carry speculative grade
ratings on a global basis.

Vínculos's A3.ar IFS on Argentina's national scale positions the
company at the mid-point of possible outcomes for a global rating
of B3.  This reflects its small size, concerns with Vínculos's
increasing trend in leverage and its lack of product
diversification.

Factors that could contribute to a rating upgrade for Vínculos
include: a sustained improvement in the quality of its
investments, a general improvement in Las Camelias's credit
profile, sustained compliance with local regulations, and
improvement in the operating environment and/or an upgrade of
Argentina's sovereign bond rating.  Factors that could contribute
to a rating downgrade include deterioration in the quality of
Vínculos's investments, a significant level of delinquencies and
claims on its financial guarantees, or a significant increase in
leverage (more than 2.5 times).

Based in Buenos Aires, Vínculos for the first quarter of fiscal
year 2011 reported total assets of AR$12 million, and a net profit
of only about AR$12,000. Shareholders' equity rose 3% to total
AR$12.1 million, compared with AR$11.8 million a year ago.  Total
outstanding guarantees totaled AR$11.4 million as of March 31,
2011.


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B R A Z I L
===========


ANHANGUERA EDUCACIONAL: S&P Raises Corp. Credit Ratings to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on Brazil-
based education service company Anhanguera Educacional
Participacoes S.A., including raising the corporate credit ratings
to 'BB' from 'BB-' and to 'brAA-' from 'brA' on the global and
national scales.  The outlook is stable.

"The upgrade reflected Anhanguera's improving credit metrics,
resulting from an increasingly integrated asset portfolio and a
more conservative approach to financial leverage," said Standard &
Poor's credit analyst Debora Confortini.

In the past few quarters, Anhanguera's margins have improved
consistently because of higher economies of scale stemming from
its expanded schools portfolio; increasing student enrollment per
campus, helping the company dilute fixed costs; and a more
diversified education portfolio, with growing participation in
distance learning programs.  "We expect Anhanguera will fund its
growth strategy with existing liquidity coming from an equity
offering, resulting in relatively stable debt and improving credit
metrics," S&P related.

The ratings on Anhanguera reflect the company's aggressive growth
strategy, both organically and through acquisitions, and the risks
associated with student drop-out, delinquency, and credit losses.
"We also take into account the company's challenges to integrate
acquired schools into its existing asset portfolio and its
exposure to the fragmented and competitive private higher
education industry," S&P stated.

These risk factors are mitigated by Anhanguera's local market
leadership, with a growing position in learning center programs;
very efficient business model based on standardized curricula and
course materials; and favorable track record in capturing growth
opportunities through greenfield projects and/or acquisitions.
Growth prospects for undergraduate education in Brazil are strong.

"The stable outlook reflects our expectation that Anhanguera will
continue to gain from its large scale and high operating
efficiency while holding a prudent approach to investment
decisions," S&P added.


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


ASTRAL INTERNATIONAL: Creditors' Proofs of Debt Due August 29
-------------------------------------------------------------
The creditors of Astral International Holdings Limited are
required to file their proofs of debt by August 29, 2011, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on July 21, 2011.

The company's liquidator is:

         Lion International Management Limited
         Craigmuir Chambers
         P.O. Box 71 Road Town
         Tortola
         British Virgin Islands
         c/o Philip C. Pedro
         HSBC International Trustee Limited
         Compass Point
         Bermudiana Road
         Hamilton HM 11
         Bermuda
         Telephone: (441) 299-6482
         Facsimile: (441) 299-6526


BAYOU INVESTMENTS: Creditors' Proofs of Debt Due September 14
-------------------------------------------------------------
The creditors of Bayou Investments Ltd are required to file their
proofs of debt by September 14, 2011, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on July 21, 2011.

The company's liquidator is:

         Commerce Corporate Services Limited
         P.O. Box 694 Grand Cayman
         Cayman Islands
         Telephone: 949 8666
         Facsimile: 949 0626


CMA TECHNOLOGY: Creditors' Proofs of Debt Due September 15
----------------------------------------------------------
The creditors of CMA Technology Venture Partners Limited are
required to file their proofs of debt by September 15, 2011, to be
included in the company's dividend distribution.

The company's liquidator is:

         David Peter Martin Blair
         c/o Custom House Fund Services (Ireland) Limited
         25 Eden Quay
         Dublin 1
         Republic of Ireland
         Telephone: 00353 1878 0807
         Facsimile: 00353 1878 0827


HESS PERU: Creditors' Proofs of Debt Due September 15
-----------------------------------------------------
The creditors of Hess Peru (Block 120) Limited are required to
file their proofs of debt by September 15, 2011, to be included in
the company's dividend distribution.

The company's liquidator is:

         George C. Barry
         1185 Avenue of the Americas
         New York, N.Y. 10036
         United States of America


HESS PERU: Creditors' Proofs of Debt Due September 15
-----------------------------------------------------
The creditors of Hess Peru (Block 119) Limited are required to
file their proofs of debt by September 15, 2011, to be included in
the company's dividend distribution.

The company's liquidator is:

         George C. Barry
         1185 Avenue of the Americas
         New York, N.Y. 10036
         United States of America


HESS (MALAYSIA-BLOCK F): Creditors' Proofs of Debt Due Sept. 15
---------------------------------------------------------------
The creditors of Hess (Malaysia-Block F) Limited are required to
file their proofs of debt by September 15, 2011, to be included in
the company's dividend distribution.

The company's liquidator is:

         George C. Barry
         1185 Avenue of the Americas
         New York, N.Y. 10036
         United States of America


HESS (PHILIPPINES): Creditors' Proofs of Debt Due September 15
--------------------------------------------------------------
The creditors of Hess (Philippines) Limited are required to file
their proofs of debt by September 15, 2011, to be included in the
company's dividend distribution.

The company's liquidator is:

         George C. Barry
         1185 Avenue of the Americas
         New York, N.Y. 10036
         United States of America


ISLAND DRIVE: Creditors' Proofs of Debt Due September 14
--------------------------------------------------------
The creditors of Island Drive Aggressive Short Fund, Ltd. are
required to file their proofs of debt by September 14, 2011, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on July 21, 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


SFJ ASSET: Creditors' Proofs of Debt Due September 15
-----------------------------------------------------
The creditors of SFJ Asset Company are required to file their
proofs of debt by September 15, 2011, to be included in the
company's dividend distribution.

The company's liquidator is:

         Bernard Mcgrath
         69 Dr. Roy's Drive
         PO Box 1043, George Town
         Grand Cayman KY1-1102
         Cayman Islands


SFJ FUNDING: Creditors' Proofs of Debt Due September 15
-------------------------------------------------------
The creditors of SFJ Funding Company are required to file their
proofs of debt by September 15, 2011, to be included in the
company's dividend distribution.

The company's liquidator is:

         Bernard Mcgrath
         69 Dr. Roy's Drive
         PO Box 1043, George Town
         Grand Cayman KY1-1102
         Cayman Islands


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J A M A I C A
=============


UC RUSAL: Suffers Big Drop in Profits for April to June Period
--------------------------------------------------------------
RJR News reports that UC Rusal, owner of West Indies Alumina
Company (WINDALCO) plant, has suffered a bigger than expected drop
in profit.

UC Rusal recorded pre-tax profits of US$427 million for the April
to June period, down from US$1.3 billion last year, according to
RJR News.  The report relates that the rising costs and a stronger
trouble outweighed price rises and increased production at UC
Rusal.

As reported in the Troubled Company Reporter-Latin America on
July 8, 2011, RJR News said 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 related that the
plant was scheduled to resume operations on July 1 but it did not
materialize.  RJR News disclosed 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 noted that the re-
employment of 300 persons is also on the line if UC Rusal carries
out its threat.

UC Rusal is a Russian aluminum giant.


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


COSTA DORADA: Chapter 11 Case Reassigned to Judge Enrique Lamoutte
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico notified
the creditors and parties-in-interest in the Chapter 11 case of
Costa Dorada Apartments Corp. that the case was reassigned to the
Hon. Enrique S. Lamoutte.  The case was previously assigned to
Judge Sara E. De Jesus Kellogg.

Costa Dorada Apartments Corp., dba Villas De Costa Dorada, in
Isabela, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D.
P.R. Case No. 11-03960) on May 10, 2011.  The Debtor disclosed
US$10.7 million in assets and US$8.6 million in liabilities as of
the Chapter 11 filing.  The petition was signed by Carlos R.
Fernandez Rodriguez, its president.


HOTEL AIRPORT: To Hire Edgardo Munoz as Bankruptcy Counsel
----------------------------------------------------------
Hotel Airport Inc. seeks permission from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Edgardo Munoz, PSC, as
counsel for the Debtor.

Upon retention, the firm, will among other things:

   a) advise the Debtor with respect to its duties, powers, and
      responsibilities in this case under the laws of the United
      States and Puerto Rico in which debtor-in-possession
      conducts its operations,

   b) advise the Debtor in connection with determination on
      whether reorganization is feasible and if not, helping
      the Debtor in the orderly liquidation of assets, and

   c) prepare on behalf of the Debtor the necessary complaints,
      answers, orders, reports, memoranda of law and/or any other
      legal paper or document required in the case.

To the best of the Debtor's knowledge, in the attached verified
statement, Edgardo Munoz, Esq., and his firm have disclosed their
connection (if any) with the creditors, any party-in-interest,
their attorneys, their accountants, the U.S. Trustee, or the
personnel of the US Trustee.  To the best of the Debtor's
knowledge, Edgardo Munoz nor his firm represent or hold any
interest adverse to the debtor or the estate in the matters for
which he is being engaged pursuant to 11 U.S.C. Sec. 327.  To the
best of the Debtor's knowledge, Edgardo Munoz nor his firm are
disinterested persons within the meaning of 11 U.S.C. Sec. 101.

The firm has received a retainer in the amount of US$10,000 plus
the additional sum of US$1,039 to cover filing fees, which sums
were paid by debtor from funds generated from the operations of
its business.  An additional sum of US$10,000 has been agreed to
and shall be distributed upon proper notice and hearing, and after
court authorization required, and shall be held as additional
retainer to be credited with the final application for
compensation to be submitted under 11 U.S.C. Sec. 330.
Professional services shall be charged at the rate of US$280 per
hour plus costs and expenses.

                        About Hotel Airport

Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011.
Judge Enrique S. Lamoutte Inclan oversees the case.  Edgardo
Munoz, PSC, serves as bankruptcy counsel.  In its petition, the
Debtor estimated US$10 million to US$50 million in both assets and
debts.  The petition was signed by David Tirri, its president.


HOTEL AIRPORT: Files Schedules of Assets & Liabilities
------------------------------------------------------
Hotel Airport Inc. filed with the U.S. Bankruptcy Court for the
District of Puerto Rico, its schedules of assets and liabilities,
disclosing:

  Name of Schedule               Assets                Liabilities
  ----------------              -------                -----------
A. Real Property                US$0.00
B. Personal Property              $8,547,993
C. Property Claimed as
   Exempt
D. Creditors Holding
   Secured Claims                                    US$11,067,536
E. Creditors Holding
   Unsecured Priority
   Claims                                                  $51,271
F. Creditors Holding
   Unsecured Non-priority
   Claims                                             $160,050,584
                               -----------             -----------
      TOTAL                  US$8,547,993           US$171,169,392

                        About Hotel Airport

Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011.
Judge Enrique S. Lamoutte Inclan oversees the case.  Edgardo
Munoz, PSC, serves as bankruptcy counsel.  In its petition, the
Debtor estimated $10 million to $50 million in both assets and
debts.  The petition was signed by David Tirri, its president.


PICHI'S INC: Schedules & Statement Due Today
--------------------------------------------
Pichi's Inc. sought and obtained an order from the U.S. Bankruptcy
Court for the District of Puerto Rico extending the time to file
its remaining Schedules today, Aug. 31, 2011.

Charles A. Cuprill, Esq., of Charles Alfred Cuprill, PSC Law
Offices, attorney for the Debtor, states that the Debtor is in the
process of gathering the necessary information and documents to
properly file its remaining Schedules.  However, to this date
Debtor has been unable to complete this task within the expected
time.

                        About Pichi's Inc.

Pichi's Inc. owns and operates the Best Western Pichi's Hotel in
Guayanilla, Puerto Rico.  Pichi's filed for Chapter 11 bankruptcy
(Bankr. D. P.R. Case No. 11-06583) on Aug. 3, 2011.  Judge Mildred
Caban Flores presides over the case.  Charles Alfred Cuprill, PSC
Law Offices, serves as the Debtor's bankruptcy counsel.  CPA Luis
R. Carrasquillo & Co., P.S.C., serves as financial consultants.
In its petition, the Debtor estimated US$10 million to US$50
million in both assets and debts.  The petition was signed by Luis
A. Emmanuelli Gonzalez, president.


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V E N E Z U E L A
=================


HOVENSA LLC: Moody's Assigns 'Ba2' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service assigned a Corporate Family Rating of
Ba2 to HOVENSA LLC and downgraded the company's industrial revenue
bonds to Ba2 from Baa3.  Moody's also assigned a probability of
default rating (PDR) of Ba2.  The rating outlook is stable.

Ratings Rationale

The downgrade and assignment of the CFR reflect the refining
joint-venture's mounting losses and negative cash flows, and
expectations for continuing earnings pressure in medium-term,
which will result in increasing dependence on its owners for
financial support.  However, the ratings are underpinned by the
continued willingness of its partner owners, Hess Corporation
(Baa2, stable) and Petroleos de Venezuela (PDVSA B1 LC issuer
rating), to provide tangible financial support to HOVENSA.

HOVENSA's earnings pressures and negative cash flows stem from its
dependence on Brent-linked crudes, which are trading at a
substantial premium, and from rising fuel costs and sporadic
operating problems.  Cash flow deficits have resulted in higher
debt as HOVENSA has borrowed under its bank credit facility to
fund working capital needs and cover cashflow shortfalls. The
company has shut down its older crude distillation units, reducing
capacity by 30% to 350,000 bpd. The shutdown should help reduce
crude and operating costs, leading to a better balance on crude
feedstocks, plant utilization, higher value product output, and
improved earnings in the future.

In the meantime, HOVENSA will need to rely on both of its owners
for financial support to pay down bank debt and to fund working
capital and capital spending requirements, a significant change
from earlier years when the refinery generated free cash flow and
operated on a standalone basis.  Moody's notes that HOVENSA's debt
is non-recourse to its owners.

The rising need for owner support is negative as an indicator of
financial stress and relative to HOVENSA's ability to operate as a
standalone entity.  At the same time, the ratings continue to be
supported by the refinery's status as a strategic asset for both
owners.  As a complex large-scale refinery, HOVENSA is important
to Hess as a provider of refined products for its East Coast
retail system.  It is also significant outlet for heavy Venezuelan
crude under a long-term supply contract with PDVSA.  The owners
have the ability and stated intent to provide financial and
liquidity support during a period of elevated crude prices and
compressed margins.  This tangible support should enable HOVENSA
to pay down bank borrowings and provide coverage of debt service
on its industrial revenue bonds.

HOVENSA's stable outlook is based on the expectation that the
owners will continue to provide sufficient financial support to
service its debt and meet liquidity needs, and that the in the
medium-term refinery will return to profitability.

In conjunction with the assignment of the Ba2 CFR, Moody's
assigned a probability of default rating of Ba2 and loss given
default of LGD3 (39%), reflecting the pari passu status of the
senior secured bank debt and industrial revenue bonds.  Under the
LGD methodology, trade payables have increased in line with higher
crude prices and relative to Hovensa's actual debt level,
resulting in a notching up of the senior secured debt.  However,
we are overriding that outcome given the volatility of crude
prices.

HOVENSA L.L.C. is a refinery joint-venture owned by subsidiaries
of Hess Corporation (rated Baa2, stable outlook), and Petroleos de
Venezuela, SA. (PDVSA, rated B1 GLC Issuer Rating with a stable
outlook).  With 350,000 bpd of crude capacity, it ranks among the
largest refineries in the western hemisphere.  The joint-venture
was formed in 1998 to own and operate the refinery originally
owned by Hess and located in St. Croix, U. S. Virgin Islands.


VITRO SAB: Creditors to Appeal Recent Ruling
--------------------------------------------
Vitro, S.A.B. de C.V.'s creditors said they will appeal a recent
ruling that would let the company vote on its restructuring terms
-- putting Vitro itself ahead of other creditors.

A Monterrey-based judge last week ruled that under Mexico's
bankruptcy law, Vitro qualifies as a creditor because of its
US$1.9 billion of intercompany debt, giving it an advantage over
other creditors when it comes to deciding its US$3.4 billion
restructuring plan, according to Reuters.

The report notes that creditors said allowing Vitro SAB to vote on
its restructuring terms would discourage foreign investors from
investing in Mexican bonds and raise financing costs for Mexican
companies.

"In my opinion, this puts the Mexican financial system in a
crisis," Reuters quoted said Jesus Guerra, a lawyer at Guerra
Gonzalez y Asociados, as saying. "I think Vitro is being very
optimistic in respect to this (ruling)," he added.

Mr. Guerra, who represents a group of Vitro SAB's creditors with
about US$750 million in Vitro bonds, said they will present their
appeal next week, Reuters notes.  The report relates that Mr.
Guerra said that even if the creditors' appeal were thrown out,
they would file for an "amparo," which is a type of injunction.

Reuters relays that should the verdict stand, Mr. Guerra said, it
would send a message to investors that they could not be certain
what would happen in a Mexican bankruptcy because the rules were
not clear.

However, the report relates, not all investors are convinced the
Vitro case would damage Mexico's debt market.

"It's something we're watching closely, but it's not really
changing our investment thesis as it is right now," Reuters quoted
Carlos Legaspy, president of San Diego-based Precise Securities,
as saying.  While Vitro's effort to vote on its intercompany debt
in the bankruptcy proceedings will likely raise financing costs
for the company in the future, it will not necessarily mean higher
spreads for other Mexican debt issuers, Mr. Legaspy said, the
report relates.

Mr. Legaspy, Reuters adds, said that even if the appeal failed,
most likely lenders would simply require Mexican issuers to agree
to additional small print stating that they would not be able to
vote on intercompany debt in the event of bankruptcy.

                          About Vitro SAB

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is the
largest manufacturer of glass containers and flat glass in Mexico,
with consolidated net sales in 2009 of MXN23,991 million (US$1.837
billion).

Vitro defaulted on its debt in 2009 and sought to restructure
around US$1.5 billion in debt, including US$1.2 billion in notes.
Vitro launched an offer to buy back or swap US$1.2 billion in debt
from bondholders.  The tender offer would be consummated with a
bankruptcy filing in Mexico and Chapter 15 filing in the United
States.  Vitro said noteholders would recover as much as 73% by
exchanging existing debt for cash, new debt or convertible bonds.

           Concurso Mercantil & Chapter 15 Proceedings

Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a
pre-packaged Concurso Plan in the Federal District Court for Civil
and Labor Matters for the State of Nuevo Leon, commencing its
voluntary concurso mercantil proceedings -- the Mexican equivalent
of a prepackaged Chapter 11 reorganization.  Vitro SAB also
commenced parallel proceedings under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan
on Dec. 13, 2010, to seek U.S. recognition and deference to its
bankruptcy proceedings in Mexico.

Early in January 2011, the Mexican Court dismissed the Concurso
Mercantil proceedings.  The judge said Vitro couldn't push through
a plan to buy back or swap US$1.2 billion in debt from bondholders
based on the vote of US$1.9 billion of intercompany debt when
third-party creditors were opposed.  Vitro as a result dismissed
the first Chapter 15 petition following the ruling by the Mexican
court.

On April 12, 2011, an appellate court in Mexico reinstated the
reorganization.  Accordingly, Vitro SAB on April 14 re-filed a
petition for recognition of its Mexican reorganization in U.S.
Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754).

In the present Chapter 15 case, the Debtor seeks to block any
creditor suits in the U.S. pending the reorganization in Mexico.

On June 29, 2011, Vitro Packaging de Mexico S.A. de C.V. commenced
a voluntary judicial reorganization proceeding under the Ley de
Concursos Mercantiles before the Federal District Court for Civil
and Labor Matters for the State of Nuevo Leon, the United Mexican
States.  On June 30, 2011, Vitro Packaging filed a chapter 15
petition (Bankr. N.D. Tex. Case No. 11-34224).

Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos
serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro
Packaging de Mexico S.A. de C.V.  The Foreign Representatives are
represented by David M. Bennett, Esq., Katharine E. Battaia, Esq.,
and Cassandra A. Sepanik, Esq., at Thompson & Knight LLP, and
Andrew M. Leblanc, Esq., Risa M. Rosenberg, Esq., Thomas J. Matz,
Esq., and Jeremy C. Hollembeak, Esq., at Milbank Tweed Hadley &
McCloy LLP.

Attorneys for the Ad Hoc Group of Vitro Noteholders are Jeff P.
Prostok, Esq., and Lynda L. Lankford, Esq., at Forshey & Prostok,
LLP, and Allan S. Brilliant, Esq., Benjamin E. Rosenberg, Esq.,
Craig P. Druehl, Esq., and Dennis H. Hranitzky, Esq., at Dechert
LLP.

                     Chapter 11 Proceedings

A group of noteholders, namely Knighthead Master Fund, L.P., Lord
Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed
Opportunities Fund LP, and Brookville Horizons Fund, L.P., opposed
the exchange.  Together, they held US$75 million, or approximately
6% of the outstanding bond debt.  The Noteholder group commenced
involuntary bankruptcy cases under Chapter 11 of the U.S.
Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case
No. 10-47470) and 15 other affiliates on Nov. 17, 2010.

Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation
counsel to analyze the potential rights that Vitro may exercise in
the United States against the ad hoc group of dissident
bondholders and its advisors.

A larger group of noteholders known as the Ad Hoc Group of Vitro
Noteholders -- comprised of holders, or investment advisors to
holders, which represent approximately US$650 million of the
Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not
among the Chapter 11 petitioners, although the group has expressed
concerns over the exchange offer.  The group says the exchange
offer exposes Noteholders who consent to potential adverse
consequences that have not been disclosed by Vitro.  The group is
represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at
White & Case LLP.

The U.S. affiliates subject to the involuntary petitions are Vitro
Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10-
47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473);
Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super
Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky
International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP
Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco
Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O.
Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger
Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa
Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance
Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass,
Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC
(Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC
(Bankr. N.D. Tex. Case No. 10-47485).

A bankruptcy judge in Fort Worth, Texas, denied involuntary
Chapter 11 petitions filed against four U.S. subsidiaries.  On
April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro
America LLC and three other U.S. subsidiaries -- that were subject
to the involuntary petitions into voluntary Chapter 11.  The Texas
Court on April 21 denied involuntary petitions against the eight
U.S. subsidiaries that didn't consent to being in Chapter 11.  The
U.S. subsidiaries subsequently sold their businesses to an
affiliate of Sun Capital Partners Inc. for US$55 million.

Kurtzman Carson Consultants is the claims and notice agent to
Vitro America, et al.  Alvarez & Marsal North America LLC is the
Debtors' operations and financial advisor.

The official committee of unsecured creditors appointed in the
Chapter 11 cases of Vitro America, et al., has selected Sarah Link
Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas,
Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis
Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York,
as counsel.


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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


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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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
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Information contained herein is obtained from sources believed to
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