/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/081024.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, October 24, 2008, Vol. 9, No. 212 Headlines A N T I G U A & B A R B U D A * ANTIGUA AND BARBUDA: Omar Storm Beats Down Agricultural Sector A R G E N T I N A ALEJANDRO NAUM: Proofs of Claim Verification Deadline Is Nov. 11 ARWIN GROUP: Proofs of Claim Verification Deadline Is December 11 * ARGENTINA: Pension Fund Nationalization Bill Now in Congress B R A Z I L BANCO DO BRASIL: Gov't Decree Eases Acquisition of Banco Nossa BANCO DO BRASIL: Obtains Gov't Authority to Buy Stakes in Banks BANCO NACIONAL: Grants BRL121 Mil. for Small-Scale Hydro Plants JBS SA: S&P's B+ Rating Unhurt by DOJ Suit Against Nat'l Beef Buy UNIALCO SA: Moody's Withdraws B3 Corporate Family Rating USINAS SIDERURGICAS: To Keep US$14.1BB in Investments Through 2012 C A Y M A N I S L A N D S ALLIANCE HOLDINGS: Filing for Proof of Claim Is Until Oct. 30 ARCSUKUK (MULTICURRENCY): Proof of Claim Filing Is Until Oct. 30 AXIOM SPV LIMITED: Deadline for Filing of Claims Is Oct. 30 COPLEY CAPITAL II: Proof of Claim Filing Deadline Is Oct. 30 COPLEY CAPITAL III: Deadline for Filing of Claims Is Oct. 30 GRANT PARK: Deadline for Proof of Claim Filing Is Oct. 30 HEWLETT-PACKARD EQUITY: Filing for Claims Is Until Oct. 30 ML CBO XXIV (CAYMAN): Deadline for Claims Filing Is Oct. 30 ORICO ASSET: Proof of Claim Filing Deadline Is Oct. 30 ROSEWOOD LTD: Filing for Proof of Claim Deadline Is Oct. 30 UNITED GLOBAL: Proof of Claim Filing Deadline Is Oct. 30 WAYFARER CDO: Filing for Proof of Claim Is Until Oct. 30 YK JRF I: Deadline for Proof of Claim Filing Is Oct. 30 C H I L E FREEPORT-MCMORAN: To Tigten Budget Amid Slowing Demand D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Provides US$3MM to Fisheries Hurt by Omar J A M A I C A BANK OF JAMAICA: Defense Fund Helps Stabilize Market M E X I C O ANIXTER INT'L: Reports US$61.7 Mil. of Net Income in Third Quarter COOPER TIRE: To Conduct Capacity Study of US Manufacturing Plants VITRO SAB: May Seek Creditor Protection Due to Derivate Losses X X X X X X X X * Some US$1.7 Bil. Injected Into Latin America in 2008 First Half - - - - - =============================== A N T I G U A & B A R B U D A =============================== * ANTIGUA AND BARBUDA: Omar Storm Beats Down Agricultural Sector ---------------------------------------------------------------- In the aftermath of Hurricane Omar, Antigua and Barbuda's agriculture sector, which took a beating from the storm, has reported extensive losses, the Antigua Sun reports. The Minister of Agriculture, Senator Joanne Massiah, said that there had been significant damage in the areas of livestock and crops, the report relates. She noted that some farmers had already begun planting their next crop, but lost everything. The Antigua Sun writes that other farmers experienced a late crop and were unable to completely harvest their produce. Crops that were not harvested were also lost -- a sharp blow, both emotionally and psychologically, to the farmers. The minister believes losses in the fisheries sector may be significant due to the high sea swells that would have washed away fishpots, based on the report. According to the report, the minister said she made contact with other ministers of agriculture in other affected Caribbean countries like Dominica to get an idea of the damage done to their agriculture sector. However, it is apparent that mainly the fisheries sector was affected in those countries. Minister Massiah said she has made appeals to both regional and international organizations for aid to get farmers back on their feet. The Food and Agricultural Organisation (FAO), Inter- American Institute for Co-operation on Agriculture (IICA), Organisation of Eastern Caribbean States (OECS), Caribbean Agricultural Research and Development Institute (CARDI), Caricom and the Antigua and Barbuda Development Bank (ABDB) have all been approached. Aid, however, is not expected to be specifically financial in nature but more of technical assistance. The extent of the scarcity in certain food crops caused by the damage to farms depends on the speed of the agricultural sector's recovery, the Antigua Sun quotes Mininster Massiah as saying. She asserted that the current situation gives the Central Marketing Corporation (CMC) a chance to shine by ensuring all necessary commodities are made available to farmers as they seek to restore their livelihoods, the report adds. ================= A R G E N T I N A ================= ALEJANDRO NAUM: Proofs of Claim Verification Deadline Is Nov. 11 ---------------------------------------------------------------- The court-appointed trustee for Alejandro Naum S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until November 11, 2008. The trustee will present the validated claims in court as individual reports on February 10, 2009. The National Commercial Court of First Instance in Cordoba, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Alejandro Naum and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Alejandro Naum's accounting and banking records will be submitted in court on March 26, 2008. The trustee is also in charge of administering Alejandro Naum's assets under court supervision and will take part in their disposal to the extent established by law. ARWIN GROUP: Proofs of Claim Verification Deadline Is December 11 ----------------------------------------------------------------- Mauricio Zafran, the court-appointed trustee for Arwin Group SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until December 11, 2008. Ms. Zafran 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. 38, 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 Arwin Group and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Arwin Group's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Zafran is also in charge of administering Arwin Group's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Arwin Group SA Avenida Rivadavia 5484 Buenos Aires, Argentina The trustee can be reached at: Mauricio Zafran Avenida Callao 420 Buenos Aires, Argentina * ARGENTINA: Pension Fund Nationalization Bill Now in Congress -------------------------------------------------------------- Argentina's plan to take control of more than 10 of the country's private pension funds was sent for approval to Congress Wednesday, various reports say. According to The Wall Street Journal, if Congress approves the bill, US$30 billion in individually held retirement accounts managed by private pension funds will become government property. News of the nationalization sent Argentina's stocks down by more than 16 percent earlier Wednesday, Agence France-Presse says. In announcing the proposal this week, Argentine President Cristina Fernandez de Kirchner said, “We are taking this decision in a context where the biggest countries, members of the G8 and others, are taking protective measures for their banks. Instead, we're taking them for our retirees and workers.” Analysts cited by The Times said the move was an attempt to seize assets and avoid Argentina's second default this decade. The Government first defaulted on its debt payments in 2001. Meanwhile, police said they had raided the offices of 10 private pension funds as part of a government probe into possible fraudulent operations by the companies before the nationalization was announced, Agence France-Presse relates. As cited by the Troubled Company Reporter-Latin America on Oct. 22, 2008, Reuters said international banks and insurance groups BBVA, HSBC Holdings, MetLife Inc., and ING Groep NV are among the companies that run the funds. According to the Associated Press, when Argentines were allowed to switch between private and public pension funds last year, only 20% opted for the government's plan. About one-fourth of Argentina's 40 million citizens use the private funds, contributing US$4.6 [billion] annually. Separately, Bloomberg News reported October 20 that trading in Argentina's US$20 billion of defaulted bonds has dried up as speculation mounts the government will delay plans to restructure the securities amid the worst global financial crisis since the Great Depression. Bids for the bonds have “significantly decreased” this month after trading surged following the government's September 22 announcement that it was looking into a restructuring plan, Bloomberg News cited Amir Zada, an associate director at Exotix Ltd in London, as saying. According to Bloomberg News, Exotix, a brokerage that specializes in distressed securities, quoted the debt at about 25 cents on the dollar, down from 29 cents on September 29. Bloomberg News disclosed President Fernandez is seeking to use the restructuring to help meet 2009 financing needs by asking bondholders to put up cash for new debt in addition to tendering the old securities, however, the credit crisis is thwarting that effort by driving up yields on the country's dollar bonds to more than 20 percent, raising the specter of a new cash crunch. “The timing is unfortunate,” Bloomberg News quoted Joydeep Mukherji, a Latin America sovereign analyst at Standard & Poor's in New York, as saying. “Given everything else that's going on, it's very difficult to do this now.” The same report relates Cabinet Chief Sergio Massa said September 29 that the government is working with Citigroup Inc., Barclays Plc and Deutsche Bank AG on the debt exchange and expects to complete it by year-end. * * * The Troubled Company Reporter-Latin America reported on Aug. 13, 2008, that Standard & Poor's Ratings Services lowered the Republic of Argentina's global scale ratings to 'B' from 'B+' and national scale ratings to 'raAA-' from 'raAA'. The outlook on the sovereign is stable, and the 'B' short-term global scale rating remains unchanged. =========== B R A Z I L =========== BANCO DO BRASIL: Gov't Decree Eases Acquisition of Banco Nossa -------------------------------------------------------------- Banco do Brasil SA may acquire Banco Nossa Caixa SA in cash after the government allowed federally-controlled lenders to buy stakes in financial institutions, Bloomberg News reports. A decree by President Luiz Inacio Lula da Silva published October 22 authorizing Banco do Brasil and Caixa Economica Federal to acquire shares in other institutions will make the acquisitions easier, Banco do Brasil's Finance Vice President Aldo Luiz Mendes told reporters in Brasilia. Banco do Brasil, Bloomberg relates, would have previously had to issue new shares to pay for acquisitions, Mr. Mendes said. "The measure halves the obstacles to buying Nossa Caixa," Mr. Mendes said. "If a wave of bank acquisitions is coming we don't want to miss out as we did in the past." The TCR-LA on Aug. 27, 2008, citing Valor Economico, reported that Banco Nossa and Banco do Brasil are disagreeing on the amount to be paid for the acquisition of Banco Nossa's assets. As reported in the TCR-LA on Aug. 20, 2008, Banco do Brasil started negotiations for the takeover of Banco Nossa. Banco do Brasil previously depended on organic growth to stay the biggest bank in Brazil as it is barred by law from acquiring or merging with other banks. However, the Brazilian federal government authorized Banco do Brasil to incorporate other federal and state- owned banks in 2007. Banco do Brasil said it proposed talks for the incorporation of Banco Nossa, which the Sao Paulo state government approved. Banco do Brasil's President Antonio Francisco de Lima Neto said that the bank seeks to have the sale price of Banco Nossa negotiated by the end of November. Banco do Brasil is betting on takeovers of other government- controlled lenders to strengthen its lead in the Brazilian banking industry, Bloomberg says. The company is also in talks to acquire Banco do Estado do Piaui SA and Banco de Brasilia. The Troubled Company Reporter on Oct. 8, 2008, citing Noticias Financieras, reported that Banco do Brasil will incorporate Santa Catarina state-based banks Banco do Estado de Santa Catarina (Besc) and Bescri, for BRL685 million, to be paid through an issue of 23.1 million shares. Bloomberg relates that Banco do Brasil SA may buy as much as BRL6 billion in loans from 10 smaller lenders after the central bank eased rules on reserve requirements to inject more than BRL160 billion into the banking system. About Banco Nossa Caixa Headquartered in Sao Paulo, Brazil, Banco Nossa Caixa SA -- http://www.nossacaixa.com.br/-- operates as a multiple bank offering banking and financial services through commercial and loan portfolios, including real estate and foreign exchange, as well as administering credit cards. Through its subsidiary, it operates with private pensions. Nossa Caixa uses demand, saving and time deposits, which include judicial deposits, to fund its operations. The main focus of Nossa Caixa is to attend individuals, especially public employees and small and medium- sized companies in Sao Paulo, as well as state and municipal government agencies. As the official bank for the government of the State of Sao Paulo, it administers the state's resources and state lotteries and takes care of the payroll of the indirect state administration and part of the direct administration. As of Dec. 31, 2005, the Bank's network consisted of 2,579 attendance points in its distribution network. * * * In April 2008, Moody's Investors Service assigned a Ba2 foreign currency deposit rating on Banco Nossa Caixa SA, which is constrained by the country's foreign currency deposit ceiling. About Banco do Brasil Banco do Brasil SA is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Feb. 29, 2008, Moody's Investors Rating Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. BANCO DO BRASIL: Obtains Gov't Authority to Buy Stakes in Banks --------------------------------------------------------------- Bloomberg News writes that Brazilian President Luiz Inacio Lula da Silva authorized federally-controlled banks Banco do Brasil SA and Caixa Economica Federal to buy stakes in financial institutions to ease a credit crunch that's hurting small and medium-size lenders. President Lula, in a decree, also allowed Caixa Economica Federal, known as CEF, to create a unit to buy shares in homebuilders, the report notes. Banco do Brasil fell 15% in Sao Paulo trading on October 22. CEF isn't publicly traded. Authorities are stepping up efforts to inject cash into the financial system after local funding costs for smaller banks surged and loan issuance fell in October, Bloomberg observes. The move follows recent central bank measures to contribute more than BRL160 billion (US$71 billion) to the banking system by easing reserve requirement regulations. "This measure responds to the needs of a moment of liquidity crisis in the international economy," Bloomberg quotes Finance Minister Guido Mantega as saying. Brazilian banks are "solid" and none are on the verge of bankruptcy, Minister Mantega said. The minister added that both Banco do Brasil and CEF may sell the stakes they buy in troubled companies to private investors in the future, according to Bloomberg. He added that as the controlling shareholder of Banco do Brasil, the federal government is asking the bank to spur lending and cut loan rates to help the economy. Luciano Sobral, an analyst with Sao Paulo-based FRAM Capital Participacoes SA, commented that the "government is either foreseeing a deeper crisis here or it's taking a precautionary measure to prevent banks from going bankrupt," Bloomberg relates. Based on the report, small and mid-size banks are paying 108% to 109% of the local interbank rate to borrow money for six months, up from 103% to 104% four months ago, Mr. Sobral said. Bloomberg relates that Banco do Brasil declined BRL2.52 to BRL13.88 while the benchmark Bovespa index fell 10% on October 22. Banco do Brasil is down 37% in a month, more than its two closest rivals. The report notes that Banco Bradesco SA fell 24% in the period, Banco Itau Holding Financeira SA dropped 30%, and Uniao de Bancos Brasileiros SA, Brazil's fourth-largest non-government bank, fell 34%. About Banco do Brasil Banco do Brasil SA is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Feb. 29, 2008, Moody's Investors Rating Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. BANCO NACIONAL: Grants BRL121 Mil. for Small-Scale Hydro Plants --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA has granted a financing in the amount of BRL121.2 million for Rio PCH 1, a company of Neoenergia Group. These funds shall be earmarked to the construction of two small power plants -– Pedra do Garrafao and Pirapetinga -– with total power of 39 MW, as well as the construction of associated transmission lines. In fact, such works shall provide approximately 500 opportunities of direct employment. Pedra do Garrafao Power Plant, which is located in Rio Itabapoana, in the frontier between the Municipalities of Bom Jesus de Itabapoana/RJ and Sao Jose do Calcado/ES, will have a capacity to generate 19 MW. BNDES will finance 70% (BRL58.7 million) of the project total amount, BRL83.8 million, and it will include the construction of a 16km transmission line, which will be connected to the Escelsa network. Pirapetinga Power Plant, which is located between Campos dos Goytacazes/RJ and Mimoso do Sul/ES, shall receive the amount of BRL56.9 million from BNDES. This amount is equivalent to 70% of this project, in the total amount of BRL81.3 million. The Power Plant will have a capacity to generate 20 MW and a 6km transmission line that must be connected to the Ampla network. BNDES approved 69 Power Plants Projects from 2003 until August 2008. These Power Plants totalled a capacity of 1.375 MW, as well as financing and investments in the total amount of BRL4 billion and BRL5.9 billion, respectively. About Neoenergia Neoenergia S/A is a holding company managed by Iberdrola Energia S/A, Previ (Banco do Brasil Employees Pension Fund) and Banco do Brasil Investimentos S/A. The company is one of the major investors in the electric sector, and it manages nine generator and three distributor power plants: Cosern, Coelba and Celpe. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. JBS SA: S&P's B+ Rating Unhurt by DOJ Suit Against Nat'l Beef Buy ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B+' rating on Brazil-based JBS S.A. is not affected by the announcement that the United States Justice Department filed a lawsuit on Oct. 20, 2008, to prevent JBS from acquiring the membership interests of National Beef Packing Co. LLC (B+/Negative/--) for US$560 million (cash and common stock portion of the purchase price). JBS has already announced that it will immediately complete the purchase of the beef processing and cattle feeding operations of Smithfield Foods Inc. (BB-/Watch Neg/--), Smithfield Beef, for approximately US$565 million in cash. The lower amount spent for acquisitions will reduce JBS' finance needs in the near term. However, S&P expects that this will have limited effect on the company's financial leverage and other credit protection measures, despite lower incremental cash flows. In any event, the negative outlook still reflects integration risks and challenges to improve operating margins, especially in the U.S. S&P will monitor the situation and review the ratings and outlook as needed, depending on developments in the lawsuit. Headquartered in Sao Paulo, Brazil, JBS SA -- http://www.jbs.com.br/ir/-- listed on Bovespa's Novo Mercado under the symbol JBSS3, operates 23 plants in Brazil, six in Argentina, 12 in the U.S. and nine in Australia from last year's purchase of Swift & Company. With pro-forma net revenues of approximately US$20 billion, JBS currently has a slaughter capacity of approximately 57,600 heads per day for cattle and 47,900 heads per day for hogs. UNIALCO SA: Moody's Withdraws B3 Corporate Family Rating -------------------------------------------------------- Moody's Investors Service has withdrawn Unialco S.A. Alcool e Acucar's B3 corporate family rating for business reasons. In August 2008, Moody's withdrew the B2 foreign currency rating assigned to the proposed guaranteed US$150 million senior unsecured notes that were never issued by Unialco Finance Limited. Headquartered in Sao Paulo, Brazil, Unialco S.A. Alcool e Acucar is a sugar and an ethanol producer. Unialco had revenues of BRL298 million (US$155 million) for the fiscal year ending on March 31, 2007. About 62% of revenues are from sugar and 38% from ethanol, with 62% of sales to the export market. USINAS SIDERURGICAS: To Keep US$14.1BB in Investments Through 2012 ------------------------------------------------------------------ In a meeting with investors and analysts in Rio de Janeiro, CFO Paulo Penido disclosed that Usinas Siderurgicas de Minas Gerais S.A. will maintain the US$14.1 billion in investments budgeted through 2012 despite the global financial crisis, Claudio Mendonca of Business News Americas reports. According to BNamericas, the investments include a new 5Mt/y facility in tantana do Paraiso in Minas Gerais state. Scheduled to have its first phase operational in 1H11, the facility will initially produce 2.5Mt/y. The second phase is slated for 2012 and will provide an additional 2.5Mt/y. The executive, as cited by BNamericas, said the company will be prepared to make adjustments according to Brazilian consumer behavior, adding that the company is also investing US$2.1 billion to expand existing plants. Citing Mr. Penido, BNamericas relates that Usiminas is amplifying rolled products capacity by an additional 650,000t/y, adding 550,000t/y in galvanized products and increasing heavy plate production by 500,000t/y. BNamericas says that the startup of the expansion projects is slated for first half of 2011. Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de Minas Gerais S.A. -- http://www.usiminas.com.br-- is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. The company also sells in China and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local currency rating and an Aa1.br rating on its Brazilian national scale to the BRL500 million non-guaranteed subordinated debentures due 2013 to be issued by Usinas Siderurgicas de Minas Gerais S.A. (aka Usiminas). Net proceeds from the debentures issuance will be used to partially fund the company's capex program. Moody's said the rating outlook is stable. ========================== C A Y M A N I S L A N D S ========================== ALLIANCE HOLDINGS: Filing for Proof of Claim Is Until Oct. 30 ------------------------------------------------------------- Alliance Holdings International II Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to Chris Watler and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Alliance Holdings' shareholders agreed on Sept. 12, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Chris Watler and Emile Small c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands ARCSUKUK (MULTICURRENCY): Proof of Claim Filing Is Until Oct. 30 ---------------------------------------------------------------- Arcsukuk (MultiCurrency) Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to Jagjit (Bobby) Toor and Chris Watler, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Arcsukuk's shareholders agreed on Sept. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jagjit (Bobby) Toor and Chris Watler c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands AXIOM SPV LIMITED: Deadline for Filing of Claims Is Oct. 30 ----------------------------------------------------------- Axiom SPV Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to Jan Neveril and Giles Kerley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Axiom SPV's shareholders agreed on Sept. 10, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands COPLEY CAPITAL II: Proof of Claim Filing Deadline Is Oct. 30 ------------------------------------------------------------ Copley Capital II Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to Jan Neveril and Giles Kerley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Copley Capital's shareholders agreed on Sept. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands COPLEY CAPITAL III: Deadline for Filing of Claims Is Oct. 30 ------------------------------------------------------------ Copley Capital III Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to Jan Neveril and Giles Kerley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Copley Capital's shareholders agreed on Sept. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands GRANT PARK: Deadline for Proof of Claim Filing Is Oct. 30 --------------------------------------------------------- Grant Park CDO Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to George Bashforth and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Grant Park's shareholders agreed on Sept. 12, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: George Bashforth and Emile Small c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands HEWLETT-PACKARD EQUITY: Filing for Claims Is Until Oct. 30 ---------------------------------------------------------- Hewlett-Packard Equity Investments Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to Jan Neveril and Giles Kerley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Hewlett-Packard Equity's shareholders agreed on Sept. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands ML CBO XXIV (CAYMAN): Deadline for Claims Filing Is Oct. 30 ----------------------------------------------------------- ML CBO XXIV (Cayman) Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to Guy Major and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. ML CBO XXIV's shareholders agreed on Sept. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Guy Major and Emile Small c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands ORICO ASSET: Proof of Claim Filing Deadline Is Oct. 30 ------------------------------------------------------ Orico Asset Finance Holdings' creditors have until Oct. 30, 2008, to prove their claims to Giles Kerley and Jan Neveril, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Orico Asset's shareholders agreed on Sept. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Giles Kerley and Jan Neveril c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands ROSEWOOD LTD: Filing for Proof of Claim Deadline Is Oct. 30 ----------------------------------------------------------- Rosewood Ltd.'s creditors have until Oct. 30, 2008, to prove their claims to Mora Goddard and Jan Neveril, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Rosewood's shareholders agreed on Sept. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Mora Goddard and Jan Neveril c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands UNITED GLOBAL: Proof of Claim Filing Deadline Is Oct. 30 -------------------------------------------------------- United Global CDO 2 I's creditors have until Oct. 30, 2008, to prove their claims to Giles Kerley and Bobby Toor, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. United Global's shareholders agreed on Sept. 17, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Giles Kerley and Bobby Toor c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands WAYFARER CDO: Filing for Proof of Claim Is Until Oct. 30 -------------------------------------------------------- Wayfarer CDO Ltd. 2006-1's creditors have until Oct. 30, 2008, to prove their claims to Andrew Millar and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Wayfarer's shareholders agreed on Sept. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Andrew Millar and Emile Small c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands YK JRF I: Deadline for Proof of Claim Filing Is Oct. 30 ------------------------------------------------------- YK JRF I Holdings' creditors have until Oct. 30, 2008, to prove their claims to Giles Kerley and Jan Neveril, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. YK JRF's shareholders agreed on Sept. 12, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Giles Kerley and Jan Neveril c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands ========= C H I L E ========= FREEPORT-MCMORAN: To Tigten Budget Amid Slowing Demand ------------------------------------------------------ Freeport-McMoRan Copper & Gold is planning US$2.0 billion in budget cutbacks to prepare for the global financial crisis' impact on metals markets, CEO Richard Adkerson said Tuesday in a conference call on third quarter results, Business News Americas reports. "The price drop in copper has brought reality to everybody that works in the industry and it has reminded us that we are in a commodity business," BNAmericas quoted Mr. Adkerson as saying. In South America, BNAmericas says the cutback will mean the tightening of budgets for the company's 51%-owned El Abra mine in Chile and the 53.7%-owned Cerro Verde mine in Peru. In a regulatory filing, Freeport-McMoRan said economic conditions have weakened dramatically in recent weeks and there is significant uncertainty about the near-term price outlook for the company's principal products. LME copper prices declined from US$3.98 per pound at June 30, 2008, to US$2.91 per pound at September 30, 2008, and further to US$2.21 per pound at October 20, 2008. Freeport-McMoRan said it is responding to the sudden downturn and uncertain near-term outlook by revising operating plans to target reductions in costs, defer or eliminate capital projects, defer exploration expenditures and potentially curtail production at high-cost operations. Financial Results Freeport-McMoRan's net income applicable to common stock for third-quarter 2008 decreased to US$523 million from US$775 million in third-quarter 2007. Net income applicable to common stock for the first nine months of 2008 also decreased to US$2.6 billion from US$2.4 billion for the first nine months of 2007. Operating cash flows totaled US$1.5 billion for third-quarter 2008 and US$3.2 billion for the first nine months of 2008. The year- to-date operating cash flows are net of US$1.5 billion in working capital uses. Assuming average prices of US$2.15 per pound for copper, US$800 per ounce for gold and US$27 per pound for molybdenum for the fourth quarter of 2008, operating cash flows in 2008 would be in excess of US$3.5 billion. Each US$0.20 per pound change in copper prices in the fourth quarter would impact 2008 operating cash flows by approximately US$250 million. Capital expenditures totaled US$766 million for third-quarter 2008 and US$1.9 billion for the first nine months of 2008. Projected 2008 capital expenditures approximate US$2.7 billion, including investments in development projects in the Americas and Indonesia, the Tenke Fungurume greenfield project in Africa and the project to restart the Climax molybdenum mine in Colorado. Future capital spending plans are being reviewed in response to the impact of recent changes in global economic conditions on commodity prices. Total debt approximated US$7.2 billion and consolidated cash was US$1.2 billion at September 30, 2008. About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. Freeport-McMoran, formerly Phelps Dodge Corp., has mining operations in Chile, Peru, Colombia, Venezuela, and Ecuador. * * * As reported in the Troubled Company Reporter-Latin America on April 10, 2008, Fitch Ratings upgraded Freeport-McMoRan Copper & Gold Inc.'s Convertible Preferred Stock upgraded to 'BB' from 'BB-'. The Rating Outlook is Stable. As reported in the Troubled Company Reporter-Latin America on Feb. 22, 2008, Moody's Investors Service upgraded Freeport's corporate family rating to Ba1 from Ba2. The ratings outlook is stable. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Provides US$3MM to Fisheries Hurt by Omar --------------------------------------------------------------- Prime Minister, Hon. Roosevelt Skerrit stated that government has approved an initial sum of US$3 million for the fisheries sector in light of the damage brought by the hurricane Omar, the Dominica News Online reports. Government has also decided to provide support to the affected fishers in the amount of US$250 per week for a period of one month in the first instance. Meanwhile, the estimated cost of repairing the damage to road and other infrastructure has been put at US$35 million ECD(preliminary). The hurricane caused widespread damage to roads and other infrastructure along the west coast of the island, inter island vessels and the boats and other equipment of local fisherfolk. The report, citing the Minister for Fisheries, Hon. Matthew Walter, writes that 153 boats have been severely damaged or lost and fisherfolk suffered damage to their engines, outboard motors, boat houses, fish aggregating devices(FADS) and other equipment. A total of 500 fisherfolk were affected. At the same time, mechanisms are being put in place by the Ministry of Agriculture, Fisheries and Forestry to assist fisherfolk in replacing their boats and other equipment in the shortest possible time so they can go back to normal operations, the report says. At a conference, Minister for Public Works and Infrastructural Development, Hon. Ambrose George, said there was significant damage along the west coast, from Scotts Head in the south to Capuchin in the north, the Dominica News Online relates. The Prime Minister also announced that Government would move soon to start work on the construction of the second phase of the Soufriere-Scotts Head sea defence wall. The sum of US$4.5 million had already been secured from the Government of Venezuela before the passage of Hurricane Omar. The Dominican leader also announced contact has been made with the Caribbean Development Bank (CDB) for financial resources to build a sea defence wall at Point Michel. The Government of Dominica has also received monies from the Venezuelan Government for the second phase of the Tan Tan sea defence wall. Work is expected to start almost immediately. With respect to the damage suffered mainly by hotel owners in the south of the island, Government has announced its intention to provide zero interest loans to those hotel operators to assist them in returning to normal as quickly as possible. The newly refurbished Roseau Ferry Terminal suffered extensive damage. The Dominica Air and Sea Port Authority(DASPA) has indicated that it will undertake repairs to the damage caused to the building as a matter of urgency with a view to bringing it back into use as quickly as possible, in anticipation of the thousands of persons expected to arrive in Dominica for the independence celebrations from the neighbouring islands. DASPA is also moving quickly to repair damage caused to the Cruise Ship Berth in Roseau, especially in light of the fact that the new cruise ship season opens next week. Meanwhile, Dominica’s airports, Melville Hall and Canefield are operating normally. * * * The Troubled Company Reporter-Latin America on Oct. 23, 2008, citing The Dominican Today, reported that the Dominican Government's revenue estimates posted a significant loss, slipping 9.8% from the expected figure in the third quarter, reports. On Sept. 29, 2008, the TCR-LA related that Fitch Ratings affirmed the Dominican Republic's ratings as: Foreign currency issuer default rating at 'B'; Local currency issuer default rating at 'B'; Country ceiling at 'B+'; Brady bonds at 'B+/RR3'; Senior unsecured debt at 'B/RR4'; and Short-term foreign currency issuer default rating at 'B'. Fitch has also revised the Rating Outlook to Stable from Positive for both the Dominican Republic's foreign and local currency issuer default ratings, reflecting increased concern that the Dominican Republic's comparatively weak liquidity position relative to 'B' peers will render the country more vulnerable to external shocks in an environment of lower global growth and tighter international liquidity conditions. ============= J A M A I C A ============= BANK OF JAMAICA: Defense Fund Helps Stabilize Market ---------------------------------------------------- The defense fund, which the Bank of Jamaica has set up for financial institutions, have created some stability in the market, the Jamaica Gleaner writes. The fund has caused foreign brokers to back off on the margin calls that was eating away at local credit, according to central bank governor Derick Latibeaudiere. But no Jamaican institution has actually tapped the lending facility, which ratings agency Standard & Poor's revealed as a US$300 million fund (J$21.7 billion) in its most recent review of the country's creditworthiness, the report reports, citing Mr. Latibeaudiere. "They're looking at the loan agreements." The central bank governor, however, said the Bank of Jamaica had sold foreign exchange "directly" to meet the margin calls, the Jamaican Gleaner relates. The central bank's lending window for institutions facing margin calls on accounts held with foreign brokers, were they to require short-term credit, has provided sufficient assurance that domestic firms had sufficient backing to cover their obligations, the report says. According to the report, Jamaican institutions are estimated to hold upwards of 60% of the bond's issued abroad by the island's government. The country's history of meeting its debt obligations had initially caused institutions here to feel safe with their portfolios of GOJ instruments when markets fell under pressure in the face of the global credit crisis. Still, financial institutions are jittery as overseas bolted from emerging market instruments, leading to a tumble in Jamaican bond prices, the Jamaican Gleaner writes. Several Jamaican institutions which had used these bonds as collateral face margin calls or forced to fulfill repo agreements. S&P, the report notes, stated that Jamaica's financial sector was indeed "dealing with lower availability of credit lines from foreign banks" notwithstanding the "margin calls stemming from the the deterioration in government bond prices". * * * On Sept. 16, 2008, the Troubled Company Reporter-Latin America, citing Radio Jamaica, reported that the Bank of Jamaica's year-to- date losses were US$3.42 Billion. According to the report, information in Central Bank's balance sheet shows a reversal from US$350 million profit in January and US$3 billion profit in year end 2007 to US$3.42 billion losses as of Aug. 27, 2008. Radio Jamaica reported on June 12, that Bank of Jamaica's balance sheet showed increasing year to date losses of US$1.75 billion, as of June 11, 2008. Stability in the foreign currency markets, in part, have caused BoJ's continuing financial losses. =========== M E X I C O =========== ANIXTER INT'L: Reports US$61.7 Mil. of Net Income in Third Quarter ------------------------------------------------------------------ Anixter International Inc. earned US$61.7 million on net revenues of US$1.59 billion for the third quarter of 2008, compared to net income of US$64.8 million on net revenues of US$1.52 billion for the same quarter of 2007. Robert Eck, President and CEO, stated, “While we experienced strength early in the third quarter, broader negative economic factors, especially in Europe, impacted sales activities late in the period. Despite these headwinds we still generated 2 percent organic growth, primarily driven by our initiatives to expand the company's presence in the security solutions market and increase the geographic footprint of our electrical wire and cable business in Europe. The progress realized, despite a challenging environment, demonstrates the importance of focusing on growth initiatives and programs we can control to offset some of the negative shorter-term macro economic factors. The long-term strategic initiatives and our sustained execution position us for even stronger growth when the economy improves.” Operating income in the third quarter was down slightly from US$118.2 million in the year ago quarter to US$117.9 million in the most recent quarter. For the latest quarter, operating margins were 7.4 percent compared to 7.8 percent in the third quarter of 2007. Third Quarter Sales Trends Commenting on third quarter sales trends, Mr. Eck said, “Our third quarter results were negatively impacted by macro economic trends, particularly in the last few weeks of the quarter. The quarter began very favorably, with July being the best four week month in the history of the company. August, which is traditionally a softer month because of vacation schedules, produced slightly weaker results than historical patterns would have suggested. While activity levels picked up in September, they did not come back with the strength that is typically seen following the summer vacation period.” Business Outlook Mr. Eck said, “The later weeks of the third quarter signaled a more broad-based economic slowing than the company had experienced year to date. At this time it is difficult to ascertain exactly what this will mean to sales volumes in the coming months. Historically in periods of economic softness the 15-to-20 percent of our enterprise cabling and security solutions business and our electrical wire and cable business that is project-based has shown the most variability. On the other hand, the 80-to-85 percent of day-to-day business supporting maintenance and moves, adds and changes to existing infrastructure has remained comparatively steady. Also, sales in the OEM supply business are driven by customer production slowdowns that vary from customer to customer and between customer vertical markets. Overall, we believe our business mix has changed appreciably to a less volatile mix than we had in the recession earlier in this decade.” “Specific to the fourth quarter, it is important to note that we typically report lower consecutive quarter sales in the fourth quarter due to the number of holidays in the period. However, we expect that seasonal softness this year will be somewhat offset by sales from the recently completed acquisitions that are expected to add between $55 million and $60 million to fourth quarter sales as compared to the year-ago period.” "At the same time, fourth quarter sales will be positively affected by the fact that this is a 53-week year in our fiscal calendar as our 2008 fiscal year will end on Friday January 2, 2009. This is expected to add the equivalent of approximately 3 days to fourth quarter 2008 sales. The revenue effects of the extra fiscal week is limited to 3 days due to the inclusion of the New Year holiday within that week. However, from an earnings standpoint, the effect of the extra fiscal week will be slightly negative since we will have an extra week of operating expenses matched by only three days of added revenues." "As we go forward through the next few quarters, we will remain focused on building on our strategic initiatives including growing our security and OEM supply businesses, further developing a factory automation network sales effort, adding to our supply chain services offering, enlarging the geographic presence of our electrical wire & cable business, and expanding our product offering. We believe continued focus on these investments and successful execution on the associated strategies are important to both longer-term growth of the business and offsetting near-term, soft economic conditions," Mr. Eck concluded. About Anixter Anixter International Inc. -- http://www.anixter.com/-- is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts ("C" class inventory components) to original equipment manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5 million square feet of space. It has operations in Latin American countries including Mexico, Costa Rica, Brazil and Chile. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 2, 2007, Fitch Ratings affirmed these ratings for Anixter International Inc. and its wholly owned operating subsidiary, Anixter Inc.: Anixter International Inc. -- Issuer Default Rating 'BB+'; -- Senior unsecured debt 'BB-'. Anixter Inc. -- Issuer Default Rating 'BB+'; -- Senior unsecured notes 'BB+'; -- Senior unsecured bank credit facility at 'BB+'. COOPER TIRE: To Conduct Capacity Study of US Manufacturing Plants ----------------------------------------------------------------- Cooper Tire & Rubber Company will conduct a capacity study of its United States manufacturing facilities over the next ninety days. The study will determine how to optimize manufacturing capacity in relation to developing market and customer needs, and will likely result in restructuring, including capacity consolidation or geographical shifts to production. This is an evolution of the Strategic Plan as outlined by the company in February 2008. All of the company’s U.S. manufacturing facilities are included for review and will be analyzed based on a combination of factors, including long term financial benefits, labor relations and productivity. Roy Armes, Chief Executive Officer, added, "We are committed to realizing the goals outlined in our Strategic Plan to create a sustainable, competitive position in the markets we serve. This study will likely result in difficult decisions, but is a significant step toward our attainment of those goals. In the end this will benefit Cooper’s stakeholders and ultimately position us as a stronger company." "Economic conditions, including demand for replacement tires, are certainly more difficult than when we initially developed the plan, and this has resulted in surplus capacity in our U.S. facilities. Unfortunately, this type of action has become a necessity. In announcing the study, we have launched a transparent process and will communicate openly with those who may be affected in either manufacturing or administrative positions. Our Company has significant liquidity resources available during these challenging economic times, and we believe that we will emerge from this process stronger and more competitive." Findlay, Ohio-based Cooper Tire & Rubber Company -- http://www.coopertires.com/-- is a manufacturer of replacement tires. Cooper focuses on the manufacture and sale of passenger and light truck replacement tires. It also manufactures radial medium and bias light truck tires. The company also manufactures and sells motorcycle and racing tires. The company is organized into two segments: North American Tire Operations and International Tire Operations. Cooper operates eight manufacturing facilities and 37 distribution centers in nine countries. The company’s Oliver Rubber Company subsidiary (formerly part of the North American Tire Operations segment) was sold on Oct. 5, 2007. Effective Feb. 4, 2006, the Company acquired a 51% interest in Cooper Chengshan (Shandong) Passenger Tire Company Ltd. and Cooper Chengshan (Shandong) Tire Company, Ltd. Cooper Tire disclosed an agreement to invest in a tire manufacturing facility in Guadalajara, Mexico. The facility will be jointly owned by Cooper Tire, a Mexican holding corporation (IBSA), and Cooperativa TRADOC SRL, employee owners of the Occidente facility. Cooper Tire ownership in this facility is 38% at an investment of US$31 million. Revenues in 2007 were approximately US$2.9 billion. * * * As reported by the Troubled Company Reporter-Latin America on Aug. 27, 2008, Standard & Poor's Ratings Services revised its outlook on Cooper Tire & Rubber Co. to negative from stable. "At the same time, we affirmed our 'B+' corporate credit rating and other ratings. The outlook revision reflects the effect of slowing tire demand in North America and volatile raw material prices on Cooper's financial risk profile. Although the company has been introducing premium products, reducing costs, and expanding its presence in Asia, we expect the company's credit measures to worsen during the remainder of 2008," S&P says. "As of June 30, 2008, Findlay, Ohio-based Cooper had total debt of $855.4 million, including our adjustments for operating leases and postretirement benefit obligations," S&P adds. VITRO SAB: May Seek Creditor Protection Due to Derivate Losses -------------------------------------------------------------- Mexico, Vitro, S.A.B. de C.V. may be forced into creditor protection because of derivative losses, Thomas Black of Bloomberg News reports, citing analysts at ING Groep NV and Deutsche Bank AG. Eric Ollom, a debt analyst with ING in New York, said Vitro's US$700 million of 9.125 percent bonds due in 2017 are trading at a bid price of 29.5 cents on the dollar, reflecting concern the company doesn't have enough cash to meet margin calls stemming from derivative losses, Bloomberg notes. The bonds traded at 80.30 cents on Sept. 8. According to Bloomberg, Vitro losses are part of widespread problem in Latin America, where companies face paying billions of dollars on derivatives, mostly linked to a sudden drop of currencies in the region. The Mexican government is offering loan support for companies after the country's third-largest retailer declared bankruptcy because of losses from bad currency bets. Brazil may follow suit. Report shows that on Oct. 10, the company has announced that it had losses of US$227 million from derivatives on natural gas, the Mexican peso and interest rates. Derivatives are contracts used to hedge risks and are derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in interest rates. Company spokesman Albert Chico, commented that Vitro currently complying with its obligations, adding that "Vitro's objective is to assure its operations continuity and to have enough liquidity in order to face its obligations." Citing Anne Milne, head of Latin America corporate bond research at Deutsche Bank in New York, Bloomberg relates that Vitro's losses are complicated by its lack of cash on hand and its inability to borrow on short notice. At the end of June, the glassmaker had US$44 million of unrestricted cash in its treasury, down from US$104 million at the end of March and US$151 million at the end of 2007. Vitro may gain some relief from the Mexican government, which announced on Oct. 16 a program to help companies that face difficulty rolling over short-term debt, Bloomberg states. Chief Financial Officer Enrique Osorio, as cited by Bloomberg, said in a September interview that Vitro used hedges to lock in natural gas at about US$10.20 per million Btu for the rest of this year and part of 2009. Vitro, Bloomberg says, uses hedges to give it predictable fuel costs so it can plan better and attempt to recover any increases through higher prices to customers, Osorio said. Natural gas accounts for about 60 percent of what it spends for energy, which is about 14 percent of the cost of sales. However, Ms. Milne disclosed that Vitro's losses on natural-gas futures of about US$190 million are high compared with the company's annual fuel needs. "That leaves one to believe that there was some leverage imbedded into whatever hedging strategy they applied," Bloomberg quoted Ms. Milne as saying. Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 16, 2008, Standard & Poor's Ratings Services has placed its ratings, including the 'B' foreign currency long-term corporate credit rating, on Mexican glass manufacturer Vitro S.A.B. de C.V. on CreditWatch with negative implications. TCR-Latin America also reported on Oct. 9, 2008, Moody's affirmed the B2 senior unsecured debt and corporate family ratings of Vitro S.A.B. de C.V.'s , while at the same time changing the outlook for the company's ratings to negative from stable. =============== X X X X X X X X =============== * Some US$1.7 Bil. Injected Into Latin America in 2008 First Half ----------------------------------------------------------------- Despite an uncertain international economic backdrop, US$1.7 billion of private equity was invested in Latin America during the first half of 2008, according to the just released Venture Equity Latin America's 2008 Mid-Year Report. The amount invested compares to US$2.3 billion during the first half of 2007 and US$1.6 billion seen in the first half of 2006. The report documents 26 deals, with ten in Brazil and seven in Mexico. Areas attracting attention from investors were software and IT related services, finance services, transportation, private education services, and manufacturing. Fundraising surpassed the level seen a year ago, totaling approximately US$1.981 billion, and there were 17 funds with closings. In the first half of 2007, there was approximately US$1.5 billion in fundraising. While much of the fundraising activity centered in Brazil, there was also limited fundraising in Mexico and Argentina. Peru found itself the focus of multiple funds. Venture Equity Latin America's Mid-Year Report provides detailed analysis in addition to data presented in an easy-to-use electronic format that will help the user to: -- Track and act on vital industry trends with macro-level year-to-year comparison data -- Stay on top of specific region(s) of interest with country-by-country wrap up analysis -- Gauge competitors' level of activity and markets of interest through a deal tracker feature -- Find out which fund managers have successfully raised new capital -- Understand what's working for others with a comprehensive listing of all known exits in the market Venture Equity Latin America is a twice-monthly publication that delivers comprehensive information on the Latin American private equity and venture capital industry. The focus of the publication is on venture capital and private equity deal flow; new fund raising endeavors; exit activity; restructuring and bankruptcy proceedings impacting existing investments; and regulatory developments. The publisher, WorldTrade Executive, Inc., -- http://www.wtexecutive.com/-- based in Concord, Massachusetts also publishes Latin American Law and Business Report and Practical Latin American Tax Strategies, as well as other resources sharing information from senior executives and legal practitioners concerning international transactions. *********** 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. Marie Therese V. Profetana, Melanie Pador, Rizande de los Santos, and Pamella Ritah K. Jala, Editors. Copyright 2008. 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 * * *