/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090107.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, January 7, 2009, Vol. 9, No. 4 Headlines A R G E N T I N A INDUMENTARIA BALLY: Verifying Proofs of Claim Until April 16 MARTINEZ Y OBARRIO: Verifying Proofs of Claim Until March 23 MIRABRAS ARGENTINA: Verifying Proofs of Claim Until March 17 NATURAL BEEF: Verifying Proofs of Claim Until March 27 PATAGONIA INDUSTRIA: Verifying Proofs of Claim Until March 18 PESQUERA TRES: Verifying Proofs of Claim Until March 16 TGN: Argentina Files Legal Complaint on "Irregularities" B A R B A D O S CARIBBEAN MEDIA: Directors Decide to Temporarily Continue Business B E R M U D A ARA BOUSTEAD: Commences Liquidation Proceedings ARA BOUSTEAD: Members' Final Meeting Set for January 28 RAGGIO DI: Commences Liquidation Proceedings RAGGIO DI: Members' Final Meeting Set for January 20 B O L I V I A BANCO DE LA NACION: Moody's Withdraws 'Caa1' Deposit Ratings B R A Z I L ARANTES ALIMENTOS: Reduced Flexibility Cues Fitch's Junk Ratings FORD MOTOR: Auto Sales Drop More Than 30% in December 2008 C A Y M A N I S L A N D S ALABAMA FIRE: Commences Liquidation Proceedings BOULDER CREEK: Commences Liquidation Proceedings CCL INVESTMENT: Commences Liquidation Proceedings CLASSIC IV: Commences Liquidation Proceedings CRESCENT POINT: Enters Wind-Up Proceedings CZ320-97F LIMITED: Creditors' Proofs of Debt Due on January 12 CZ320-97H LIMITED: Creditors' Proofs of Debt Due on January 12 JADE (GENERAL PARTNER): Commences Liquidation Proceedings NORDIC VALLEY: Enters Wind-Up Proceedings PRINCIPIA EUROPE: Enters Wind-Up Proceedings PRINCIPIA EUROPE: Enters Wind-Up Proceedings SILVER CREST: Commences Liquidation Proceedings STEAMBOAT SELECT: Commences Liquidation Proceedings SZ95A LIMITED: Commences Liquidation Proceedings WORLD WIDE: Placed Under Voluntary Liquidation E C U A D O R PETROECUADOR: Esmeraldas Refinery Shuts Down 2 Units G U Y A N A TRANSPORT AND HARBOURS: Terminates 40 Berbice Ferry Workers J A M A I C A AIR JAMAICA: Union Asks Government to Delay Stake Sale M E X I C O AMC ENTERTAINMENT: Affiliates Sell 100% Stake in Grupo Cinemex KEY PLASTICS: Court Sets Jan. 29 Disclosure Statement Hearing * MEXICO: Dec. Manufacturing Index Hits Lowest on U.S. Recession P U E R T O R I C O CENTENNIAL COMMS: No Exact Date Yet on Shareholders Meeting T R I N I D A D & T O B A G O HINDU CREDIT: Depositors Face Payment Delay, Liquidator Says V E N E Z U E L A PDVSA: Citgo Suspends Heating Aid for U.S. Poor PDVSA: Crude Output Drops 5.6% in January - September Period X X X X X X X X * IATA Sees US$2.5 Billion Airline Industry Loss in 2009 * PwC Foresees Slower Growth in Emerging Economies This Year - - - - - ================= A R G E N T I N A ================= INDUMENTARIA BALLY: Verifying Proofs of Claim Until April 16 ------------------------------------------------------------ The court-appointed trustee for Indumentaria Bally S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until April 16, 2009. The trustee will present the validated claims in court as individual reports on June 1, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 15, 2009. MARTINEZ Y OBARRIO: Verifying Proofs of Claim Until March 23 ------------------------------------------------------------ The court-appointed trustee for Martinez y Obarrio Estudio Aduanero S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 23, 2009. The trustee will present the validated claims in court as individual reports on May 12, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 24, 2009. MIRABRAS ARGENTINA: Verifying Proofs of Claim Until March 17 ------------------------------------------------------------ The court-appointed trustee for Mirabras Argentina S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until March 17, 2009. The trustee will present the validated claims in court as individual reports on May 6, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 19, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on December 12, 2009. NATURAL BEEF: Verifying Proofs of Claim Until March 27 ------------------------------------------------------ The court-appointed trustee for Natural Beef S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 27, 2009. The trustee will present the validated claims in court as individual reports on May 19, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 1, 2009. PATAGONIA INDUSTRIA: Verifying Proofs of Claim Until March 18 ------------------------------------------------------------- The court-appointed trustee for Patagonia Industria Grafica S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until March 18, 2009. The trustee will present the validated claims in court as individual reports on May 6, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 19, 2009. PESQUERA TRES: Verifying Proofs of Claim Until March 16 ------------------------------------------------------- The court-appointed trustee for Pesquera Tres Marias S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until March 16, 2009. The trustee will present the validated claims in court as individual reports on May 4, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 16, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on December 10, 2009. TGN: Argentina Files Legal Complaint on "Irregularities" -------------------------------------------------------- Argentina's government filed a legal complaint against Transportadora de Gas del Norte SA ("TGN") over "grave irregularities" at the firm, a week after appointing a temporary co-administrator to the company, Hilary Burke of Reuters reports. As reported in the Troubled Company Reporter - Latin America on January 5, 2009, Latin American Herald Tribune said the Argentine government took over TGN for 120 days to guarantee service by the company and to audit its accounts. According to The Tribune, Roberto Pons, the director of an energy studies center at the University of Buenos Aires, was appointed as overseer of the company and was also responsible for auditing the company's accounts. In a TCRLA report on January 2, Bloomberg News said TGN disclosed it will default on its US$22.1 million debt. TGN, Bloomberg News recalled, said Dec. 23 it will miss year-end debt payments estimated at US$22.1 million by Fitch Ratings as Argentina´s peso weakens and fuel exports drop. According to the Associated Press, Mr. Pons presented his investigation to federal Judge Rodolfo Canicoba, saying he uncovered "serious irregularities" in the company's bookkeeping, which could point to "illegal activity." TGN, the AP relates, blamed its dire financial situation on tariff freezes imposed by the government, which prevent the company from raising customers' rates. The company also cited rising costs and falling gas exports as the government demands companies distribute more gas domestically to address rising demand and keep prices low at home, AP says. About TGN Headquartered in Buenos Aires, Transportadora de Gas del Norte SA -- http://www.tgn.com.ar/-- is one of the two largest transporters of natural gas in Argentina, delivering approximately 40% of the country's total gas consumption and more than 50% of Argentine total gas exports. The northern Argentine gas pipeline system connects major gas fields in northern and central-western Argentina. The company benefits from an exclusive 35-year concession contract, ending Dec. 28, 2027, which may be extended for an additional 10 years. The parent company is Gasinvest S.A., which has a 56.35% stake and comprises five companies: Totalfinaelf (27.2%), Transcogas Inversora S.A. (22.3%), Compania General de Combustibles (5%), Organizacion Techint (27.2%), and Petroliam Nasional Berhad (18.3%). In addition, CMS Gas Argentina holds 23.5% of Transportadora Norte's shares, while the remaining 20% is traded on the Buenos Aires stock exchange. * * * As reported by the Troubled Company Reporter - Latin America on Dec. 19, 2008, Fitch Ratings downgraded the long-term local and foreign currency Issuer Default Ratings of Transportadora de Gas del Norte S.A. to 'C/C (arg)' from 'CCC BB (arg)' . Fitch also downgraded TGN's senior unsecured notes due in 2012 to 'CC' from 'CCC', while the Recovery Rating of the notes remains at 'RR4'. In conjunction with the rating actions, Fitch downgraded TGN's national scale issuance ratings to 'CC (arg)' from 'BB(arg)'. All Ratings have been placed on Rating Watch Negative. =============== B A R B A D O S =============== CARIBBEAN MEDIA: Directors Decide to Temporarily Continue Business ------------------------------------------------------------------ Caribbean Media Corporation's ("CMC") Board of Directors last week decided that the operations of the regional media outlet will continue for the immediate future, Caribbean Net News reports. According to the report, the decision comes against the backdrop of a November meeting of the Bureau of Heads of Government of Caribbean Community (CARICOM) in Antigua. At that meeting, the report recalls the CARICOM Secretariat agreed to lead an initiative to seek US$50,000 from each member government as bridge financing for CMC's operations until end of first quarter of 2009. "We are looking forward to the urgent receipt of these remittances as a means of continuing the CMC's mandate of uniting the region through the media information process," Caribbean Net News quoted CMC Director Patrick Cozier as saying. "In the meantime, we remain open for business," he added. According to Caribbean Net News, CMC was formed in 2000 by the Caribbean Broadcasting Union (CBU) and the Caribbean News Agency (CANA) and has pioneered daily television, radio and print news services across the region. ============= B E R M U D A ============= ARA BOUSTEAD: Commences Liquidation Proceedings ----------------------------------------------- The members of ARA Boustead Limited met on Dec. 18, 2008, and resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 2, 2009, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, 2 Church Street Hamilton, HM 11 Bermuda ARA BOUSTEAD: Members' Final Meeting Set for January 28 ------------------------------------------------------- The members of ARA Boustead Limited will hold their final general meeting on January 28, 2009, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Dec. 18, 2008. The company's liquidator is: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, 2 Church Street Hamilton, HM 11 Bermuda RAGGIO DI: Commences Liquidation Proceedings -------------------------------------------- The members of Raggio Di Sole Consultants Limited met on Dec. 18, 2008, and resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 2, 2009, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, 2 Church Street Hamilton, HM 11 Bermuda RAGGIO DI: Members' Final Meeting Set for January 20 ---------------------------------------------------- The members of Raggio Di Sole Consultants Limited will hold their final general meeting on January 20, 2009, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Dec. 18, 2008. The company's liquidator is: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, 2 Church Street Hamilton, HM 11 Bermuda ============= B O L I V I A ============= BANCO DE LA NACION: Moody's Withdraws 'Caa1' Deposit Ratings ------------------------------------------------------------ Moody's Investors Service has withdrawn all of its ratings for Banco de la Nación Argentina for business reasons. Moody's Latin America has also withdrawn the national scale ratings for Banco de la Nacion. Banco de la Nacion (Bolivia), is headquartered in Santa Cruz and it had assets of Bs 168.1 million and deposits of Bs 75.8 million. These ratings were withdrawn: -- Long term foreign currency deposit rating: Caa1, Stable Outlook -- Short term foreign currency deposit rating: Not Prime, Stable Outlook -- National Scale foreign currency deposit rating: A2.bo -- Long term local currency deposit rating: Caa1, Stable Outlook -- Short term local currency deposit rating: Not Prime, Stable Outlook -- National Scale local currency deposit rating: A2.bo =========== B R A Z I L =========== ARANTES ALIMENTOS: Reduced Flexibility Cues Fitch's Junk Ratings ---------------------------------------------------------------- (Fitch Ratings-Chicago-06 January 2009) Fitch Ratings has downgraded the ratings of Arantes Alimentos Ltda and Arantes International (a special-purpose vehicle wholly-owned and unconditionally guaranteed by Arantes): Arantes Alimentos Ltda -- Local currency Issuer Default Rating (IDR) to 'CC' from 'B''; -- Foreign currency IDR to 'CC' from 'B'; -- National scale rating to 'CC(bra)' from 'BBB(bra)'. Arantes International Ltd. -- US$150 million senior unsecured notes to 'CC/RR4' from 'B/RR4'. The ratings have all been placed on Rating Watch Negative. The downgrade reflects Arantes' reduced financial flexibility and potential difficulty to rollover short term lines of credit and meet other near-term debt obligations, including BRL220 million (US$115 million) of short-term bank debt. On Dec. 19, 2008, Arantes did not meet the interest payment of its US$150 million senior unsecured notes due 2013 of approximately US$8 million. At that time in a letter to certain creditors, the company indicated that the interest payment be made by Jan. 10, 2009 and within the cure period. The combination of the company's moderate cash position at September 2008 and the strong liquidity restriction in the national and international markets has considerably raised Arantes refinancing risks. Arantes aggressive expansion strategy through the acquisition of new plants and other producers and the growing working capital needs require Arantes to roll over and refinance short term maturities, a difficult requirement given the major contraction in market liquidity. The Rating Watch Negative is based on the difficulties that Arantes will have to re-establish its liquidity position in the short-term and meet its short-term obligations as well as the more challenging business environment in 2009. The expected reduction in the Brazilian beef sector exports, where Arantes is quite active, should pressure the company's cash flow in 2009 and weaken its already leveraged capital structure and profitability of its business. At Sept. 30, 2008, the company had total debt of BRL 771 million (US$404 million) and cash and marketable securities of BRL 125 million (US$65 million), resulting in a ratio of total adjusted debt to EBITDA of 4.1 times and adjusted net debt to EBITDA of 3.4x, excluding leased properties as all leased property titles, except for one, which are being transferred from the Arantes family to Arantes Alimentos Ltda. During the same period, interest expense coverage was 1.5x EBITDA. Credit-protection measures will likely remain under pressure in the very near term. Arantes is positioned as one of the top 10 largest Brazilian beef exporters. The company has an aggregate daily slaughtering capacity of approximately 5,500 head of cattle at the seven slaughterhouses it operates in the Brazilian States of Mato Grosso, Goias and Maranhao. Arantes exports its products to more than 140 customers located in over 35 countries. The foreign market corresponded to about 49% of Arantes' 2007 sales. The company maintains long-term relationships with leading international beef distributors. FORD MOTOR: Auto Sales Drop More Than 30% in December 2008 ---------------------------------------------------------- Mike Barris at The Wall Street Journal reports that Ford Motor Co. reported that its sales dropped more than 30% in December 2008. The first quarter will be "bad, no matter how you look at it" and the loan from the government will be help auto sale recover in the second half of 2009, WSJ relates, citing Ford Motor senior economist Emily Kolinski Morris. Ford Motor's sales figures in December 2008 reflected the housing market, the economy and the jobless rate. Ford Motor sales analyst George Pipas said that the sales rate in December was similar to what we saw in October and November. "During these three months, the total vehicle sales rate including medium and heavy trucks is about 10.6 or 10.7 million and the light vehicle sales rate is probably in 10.3 or 10.4 and that is the lowest sales rate for the fourth quarter since 1981, so that gives you some indication the kind of conditions we are facing now as well as probably what we can expect to see as we begin 2009 at least in the first quarter," said Ford Motor. According to Bloomberg, U.S. auto sales plunged 36 percent in December, dragging the industry's annual volume to a 16-year low as the recession ravaged demand. F-Series Brings Ford Higher Market Share New vehicles, including the all-new F-150 truck, and fuel- efficient powertrains are winning over customers for Ford Motor, Lincoln and Mercury, which realized market share increases for a third consecutive month in December. Ford Motor estimates its market share was 14.6% in December, up 0.7 of a point versus a year ago. This marks the first time since 1997 Ford Motor has achieved a market share increase three months in a row. "This is a strong ending to end a very challenging year," said Jim Farley, Ford Motor's group vice president, Marketing and Communications. "In addition to finishing the year with increased market share, we received several accolades from third parties concerning our world-class quality and safety, and we turned some heads on the fuel economy front with our 41 mpg Fusion Hybrid, the most fuel-efficient mid-size sedan in America." The F-Series truck played a key role in Ford Motor's fourth quarter market share gains. The all-new F-150 accounted for 8,600 of total F-Series sales in December, an increase of 84% compared with November 2008. For the year, F-Series sales totaled 515,513. "Our thanks go out to our customers, our dealers and, of course, the Ford employees and supplier partners who design, engineer and manufacture quality, fuel-efficient trucks delivering unmatched capability," Mr. Farley said. "The all-new F-150 affirms what Ford has known for years -- that listening to customers provides the best rewards." The all-new F-150 recently was named 2009 Motor Trend Truck of the Year, a finalist for the North American Truck of the Year and the Texas Auto Writers Association's "Truck of Texas." Ford Flex, the company's newest crossover utility, finished 2008 with its best sales month of the year, netting 2,685 sales. Flex has the highest conquest rate of any Ford vehicle and is a finalist for the North American Car of the Year. In other car news, Ford Focus posted full-year sales of 195,823, the small car's highest sales year since 2004 and up 13% versus full-year 2007. Focus parlayed SYNC technology and 35 mpg highway fuel economy, which is 5 mpg better than Toyota's Corolla and 2 mpg better than the smaller Honda Fit, to achieve a market share increase in the competitive small car segment -- its first share increase since Focus was introduced during the 2000 model year. Meanwhile, Ford Fusion posted near-record sales of 147,569 units in 2008. Fusion, Mercury Milan and Lincoln MKZ are redesigned for the 2010 model year and will arrive in dealer showrooms this spring. The first-ever Fusion Hybrid will be America's most fuel- efficient mid-size car with 41 mpg in the city and 36 mpg on highway -- besting the Toyota Camry hybrid by 8 mpg in the city and 2 mpg on highway. Lincoln outpaced the competition as 2008 drew to a close. Helped by the all-new Lincoln MKS sedan, Lincoln sales totaled 9,053 in December, down 10% compared with a year ago. In the fourth quarter, however, Lincoln increased its share in the luxury market as its 16% sales decline was less than half of the average decline of all other luxury brands. U.S. Sales In December, Ford, Lincoln and Mercury sales totaled 134,114, down 32% compared with a year ago. Retail sales to individual customers were down 27%, and fleet sales were down 42% (including a 57% decline in daily rental sales), consistent with Ford Motor's plans. For the full year, Ford, Lincoln and Mercury sales totaled 1.9 million, down 20% versus a year ago. Retail sales were down 22%, and fleet sales were down 17% (including a 22% decline in daily rental sales), in line with Ford's plans. U.S. Market Share In the Fourth Quarter, Ford, Lincoln and Mercury's market share is estimated at 15.0%, up 0.9 points versus a year ago. This is the first time since 2001 that the company's Fourth Quarter market share was higher than a year ago. For the full year of 2008, Ford, Lincoln and Mercury's market share is estimated at 14.2%, down 0.4 points versus a year ago. This marks the company's smallest decline in market share this decade. "This is a strong ending to...a very challenging year," said marketing chief Jim Farley. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Moody's Investors Service lowered the debt ratings of Ford Motor Company, Corporate Family and Probability of Default Ratings to Caa1 from B3. The company's Speculative Grade Liquidity rating remains at SGL-3 and the rating outlook is negative. In a related action Moody's also lowered the long-term rating of Ford Motor Credit Company to B3 from B2. The outlook for Ford Credit is negative. As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. ========================== C A Y M A N I S L A N D S ========================== ALABAMA FIRE: Commences Liquidation Proceedings ----------------------------------------------- On November 25, 2008, the members of Alabama Fire & Accident Insurance Company resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt today, Jan. 7, 2009, will be included in the company's dividend distribution. The company's liquidator is: Christopher R. Cooper c/o Global Captive Management, Ltd. Governors Square, 23 Lime Tree Bay Ave Building 3, 2nd Floor P. O. Box 1363, Grand Cayman KY1-1108 Cayman Islands BOULDER CREEK: Commences Liquidation Proceedings ------------------------------------------------ On October 15, 2008, the sole shareholder of Boulder Creek CLO, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt today, Jan. 7, 2009, will be included in the company's dividend distribution. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman Cayman Islands KY1 9002 Telephone:(345) 914-6314 CCL INVESTMENT: Commences Liquidation Proceedings ------------------------------------------------- On November 24, 2008, the shareholders of CCL Investment Management Limited resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt today, Jan. 7, 2009, will be included in the company's dividend distribution. The company's liquidator is: Edward Shiu Lun Lee Suite 1909, 19th Floor 9 Queen's Road Central Central, Hong Kong Telephone:(852) 2869 1201 Facsimile:(852) 2869 1207 CLASSIC IV: Commences Liquidation Proceedings --------------------------------------------- On November 25, 2008, the sole shareholder of Classic IV (Cayman) Limited resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt today, Jan. 7, 2009, will be included in the company's dividend distribution. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands Telephone:(345) 914-6314 CRESCENT POINT: Enters Wind-Up Proceedings ------------------------------------------ On October 2, 2008, the sole shareholder of Crescent Point Asia Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 8, 2008, will be included in the company's dividend distribution. The company's liquidators are: Linburgh Martin John Sutlic c/o Neil Gray Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman Telephone:(345) 949 8455 Facsimile:(345) 949 8499 CZ320-97F LIMITED: Creditors' Proofs of Debt Due on January 12 -------------------------------------------------------------- The creditors of CZ320-97F Limited are required to file their proofs of debt by January 12, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Nov. 25, 2008. The company's liquidators are: Sylvia Lewis Isabel Mason P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands Telephone:345 949-7755 Facsimile:345 949-7634 CZ320-97H LIMITED: Creditors' Proofs of Debt Due on January 12 -------------------------------------------------------------- The creditors of CZ320-97H Limited are required to file their proofs of debt by January 12, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Nov. 25, 2008. The company's liquidators are: Sylvia Lewis Isabel Mason P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands Telephone:345 949-7755 Facsimile:345 949-7634 JADE (GENERAL PARTNER): Commences Liquidation Proceedings --------------------------------------------------------- On November 25, 2008, the members of Jade (General Partner) Inc. resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt today, Jan. 7, 2009, will be included in the company's dividend distribution. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands Telephone:(345) 914-6314 NORDIC VALLEY: Enters Wind-Up Proceedings ----------------------------------------- On November 26, 2008, the sole shareholder of Nordic Valley 2007-1 CDO, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt today, Jan. 7, 2009, will be included in the company's dividend distribution. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman Cayman Islands KY1 9002 Telephone:(345) 914-6314 PRINCIPIA EUROPE: Enters Wind-Up Proceedings -------------------------------------------- On November 26, 2008, the sole shareholder of Principia Europe Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 30, 2008, will be included in the company's dividend distribution. The company's liquidator is: David A.K. Walker c/o Prue Lawson PO Box 258, Grand Cayman KY1-1104 Cayman Islands Telephone:(345) 914 8662 Facsimile:(345) 945 4237 PRINCIPIA EUROPE: Enters Wind-Up Proceedings -------------------------------------------- On November 26, 2008, the sole shareholder of Principia Europe (Master) Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 30, 2008, will be included in the company's dividend distribution. The company's liquidator is: David A.K. Walker c/o Prue Lawson PO Box 258, Grand Cayman KY1-1104 Cayman Islands Telephone:(345) 914 8662 Facsimile:(345) 945 4237 SILVER CREST: Commences Liquidation Proceedings ----------------------------------------------- On November 24, 2008, the sole shareholder of Silver Crest Loan Fund, Ltd. passed a resolution to voluntarily liquidate the company's business. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands Telephone:(345) 914-6314 STEAMBOAT SELECT: Commences Liquidation Proceedings --------------------------------------------------- On October 15, 2008, the sole shareholder of Steamboat Select International Fund Ltd. resolved to voluntarily liquidate the company's business. Only creditors who can file their proofs of debt today, Jan. 7, 2009, will be included in the company's dividend distribution. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman Cayman Islands KY1 9002 Telephone:(345) 914-6314 SZ95A LIMITED: Commences Liquidation Proceedings ------------------------------------------------ On November 17, 2008, the sole shareholder of SZ95A Limited passed a resolution to voluntarily liquidate the company's business. The company's liquidator is: Trident Liquidators (Cayman) Limited P O Box 847, Grand Cayman KY1 1103 Cayman Islands c/o Philip Sutcliffe Telephone:(345) 949 0880 Facsimile:(345) 949 0881 WORLD WIDE: Placed Under Voluntary Liquidation ---------------------------------------------- The shareholders of World Wide Mezzanine Investors, Ltd. met on November 20, 2008, and resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by December 4, 2008, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Khatidja McLean Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone:(345) 815 1760 Facsimile:(345) 949 1986 ============= E C U A D O R ============= PETROECUADOR: Esmeraldas Refinery Shuts Down 2 Units ---------------------------------------------------- An article posted by Industrial Info Resources (IIR) on MSNBC's Web site said Petroecuador's Esmeraldas refinery, which produces 110,000-barrel-per-day (BBL/d), was forced to shut down two units on December 27 after problems arose in the CE-28 exchanger. According to the article, maintenance was being performed on the units, the 55,000-BBL/d Crude 2 and 15,900-BBL/d Vacuum 2, but a restart date has not yet been determined. Headquartered in Quito, Ecuador, Petroecuador -- http://www.petroecuador.com.ec-- is an international oil company owned by the Ecuador government. It produces crude petroleum and natural gas. * * * In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. =========== G U Y A N A =========== TRANSPORT AND HARBOURS: Terminates 40 Berbice Ferry Workers ----------------------------------------------------------- Oscar Ramjeet at Caribbean Net News reports that the Transport and Harbours Department (THD) in Guyana has sent termination letters to 40 of its employees at New Amsterdam and Rosignol who are employed with the Berbice Ferry. The termination, the report says, is a result of the ferry, which plies between Rosignol and New Amsterdam, no longer carrying cars and other small vehicles since the bridge between Palmyra and Cotton Tree began operation. The report relates it is understood that some THD employees at Bartica and Parika will also be laid off. ============= J A M A I C A ============= AIR JAMAICA: Union Asks Government to Delay Stake Sale ------------------------------------------------------ The National Workers Union ("NWU"), one of the union representing the Air Jamaica workers, is suggesting that the Jamaican government should seriously consider delaying the stake sale of Air Jamaica, Jamaica News reports. The union said hope is fading that the March 31 deadline for the divestment will be met, the report relates. As reported in the Troubled Company Reporter - Latin America on January 6, 2009, Radio Jamaica News said Air Jamaica still has no clear buyer as the three months divestment deadline expiration approaches. According to the report, the deepening financial woes in the global economy could put a damper on efforts by the Bruce Golding administration to get the loss-making Air Carrier off its books. The TCRLA, citing Radio Jamaica News, related Air Jamaica President and Chief Executive Officer, Bruce Nobles, told RJR News that while discussions are underway with several interested parties, the impact of the economic crunch could make the sale a difficult one. However he remains optimistic despite the daunting economic challenges, the same report said. According to a TCRLA report on November 20, Jamaican Information Service said Mr. Nobles and his team had been in discussion with potential purchasers to ensure the divestment is completed by the deadline. The Government has contracted the services of IFC, the private sector arm of the World Bank, as consultants and advisers in the divestment process, the same report added. NWU Vice President Granvilel Valentine, Radio Jamaica relates, said the Golding administration should face reality and put the sale on hold until next year. "I think they should cancel, not necessarily cancel but still try to continue the process and not allow a disconnect. They should continue the process but extend the period," Mr. Valentine was quoted by the same report as saying. Mr. Valentine added, "I think . . . getting all the stakeholders involved will be a more appropriate and beneficial way of approaching it; in fact it would be the right way." "There is definitely the need for more time and I think all parties should realize that by now that it is not realistic to get it sold by the end of March," Mr. Valentine said. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government owned 25% of the company after it went private in 1994. However, in late 2004, the government assumed full ownership of the airline after an investor group turned over its 75% stake. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported by the Troubled Company Reporter-Latin America on Nov. 6, 2008, Moody's Investors Service placed the debt ratings of Air Jamaica Limited, B1 senior unsecured notes guaranteed by the Government of Jamaica, on review for possible downgrade. The review coincides with Moody's action placing the ratings of the Government of Jamaica under review for downgrade on November 4, 2008. =========== M E X I C O =========== AMC ENTERTAINMENT: Affiliates Sell 100% Stake in Grupo Cinemex -------------------------------------------------------------- AMC Entertainment Inc. disclosed in a filing with the Securities and Exchange Commission that certain of its subsidiaries and Entretenimiento GM de Mexico S.A. de C.V. have reached an agreement and entered into a definitive Stock Purchase Agreement for the sale of the 100% ownership interest in Grupo Cinemex, S.A. de C.V. and Symphony Subsisting Vehicle, S. de R.L. de C.V. owned by AMCE and its subsidiaries to Entretenimiento. Cinemex operates 44 theaters with 493 screens in the Mexico City Metropolitan area. The Agreement provides for the stockholders of Cinemex and equity holders of Symphony to receive US$315,000,000 decreased by the amount of net funded indebtedness of Cinemex of approximately $77,500,000 as of Sept. 30, 2008, and other specified items in exchange for all of their equity interests in Cinemex and Symphony. The amount of net funded indebtedness of Cinemex will fluctuate through the closing of the Sale depending on the amount of cash and cash equivalents of Cinemex at closing and the US dollar exchange rates for the Mexican peso. The Sale, which is expected to close on or about January 2009, is subject to customary closing conditions, including approval by the Mexican Federal Competition Commission. The Agreement provides that, upon termination of the Agreement without completing the Sale, AMCE may be obligated, under certain circumstances, to pay Entretenimiento liquidated damages of US$50,000,000 and Entretenimiento may be obligated, under certain circumstances, to pay AMCE liquidated damages of US$50,000,000. About AMC Entertainment Headquartered in Kansas City, Missouri, AMC Entertainment Inc. -- http://www.amctheatres.com/-- is a theatrical exhibition company. As of July 3, 2008, the company owned, operated or had interests in 353 theatres and 5,117 screens, with 89% or 4,569 of its screens in the U.S. and Canada and 11%, or 548 of its screens in Mexico, China (Hong Kong), France and the United Kingdom. The company's principal direct and indirect owned subsidiaries are American Multi-Cinema Inc., Grupo Cinemex, S.A. de C.V. and AMC Entertainment International Inc. For thirteen weeks ended Oct. 2, 2008, the company reported net earnings of US$3.6 million compared with net earnings of US$36.9 million for the same period in the previous year. For twenty-six weeks ended Oct. 2, 2008, the company reported net earnings of US$14.4 million compared with net earnings of US$59.0 million for the same period in the previous year. At Oct. 2, 2008, the company's balance sheet showed total assets of US$3.7 billion, total liabilities of US$2.6 billion and stockholders' equity of US$1.1 billion. As of Oct. 2, 2008, the company was in compliance with all financial covenants relating to the Senior Secured Credit Facility, the Cinemex Credit Facility, the Notes due 2016, the Notes due 2014, and the Fixed Notes due 2012. * * * To date, AMC Entertainment Inc. still carries Fitch Ratings' 'CCC+' senior subordinate rating assigned on Jan. 12, 2006. KEY PLASTICS: Court Sets Jan. 29 Disclosure Statement Hearing ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will hold a hearing on Jan. 29, 2009 at 2:00 p.m. prevailing Eastern time to consider approval of Key Plastics L.L.C. and Key Plastics Finance Corp.'s proposed Disclosure Statement explaining their Prepackaged Plan of Reorganization which was filed with the Court on Dec. 15, 2008. A hearing to consider confirmation of the Plan and any objections thereto will commence immediately following the Disclosure Statement Hearing. Any objections to the Disclosure Statement or the the Prepackaged Plan must be filed with the Court together with proof of service, so as to be received no later than 4:00 p.m prevailing Eastern time on Jan. 18, 2009. Objections whould also be served upon counsel of the Debtors: Weil, Gotshal & Manges LLP Attn: Stephen A. Youngman, Esq. 200 Crescent Court Suite 300 Dallas, Texas 76201 and Richards, Layton & Finger, P.A. Attn: Mark D. Collins, Esq. One Rodney Square P.O. Box 551 Wilmington Delaware 19899 As reported in the Troubled Company Reporter on Dec. 16, 2008, under the plan, each holder of Key Plastics Series A Unit Claims will be paid cash equal to US$474 per Series A Unit held. At its option, holders of Senior Notes will be entitled to receive, either: -- pro rata share of 65% of the fully-diluted new common units to be issued by Reorganized Key Plastics, which will subsequently be contributed to the Reorganized Finance Corp. in exchange for an equal percentage of new common stock to be issued by Reorganized Finance Corp.; or -- cash equal to 16% of the face value of the holder's senior notes. Furthermore, holders of senior notes who elect to receive their pro rata share of New Key Plastics Equity will be entitled to participate in a rights offering in which each holder may subscribe for its pro rata share of no more than 35% of New Key Plastics Equity, which will also subsequently be contributed to the reorganized Finance Corp. in exchange for an equal percentage of New Finance Corp. Equity. The company related that on Nov. 12, 2008, it solicited votes on the plan, wherein holders of Senior Notes Claims under Class 1 and Series A Unit Claims voted to accept the plan. Headquartered in Northville, Michigan, Key Plastics LLC -- http://www.keyplastics.com/-- supplies plastic components to the automotive industry. The company has 24 manufacturing facilities located in the United States, Canada, Mexico, Germany, Portugal, Spain, the Czech Republic, France, Slovakia, Italy and China. According to Bloomberg News, the company filed for bankruptcy in March 23, 2000, in Detroit and emerged a year later under the ownership of private-equity firm Carlyle. The company and Key Plastics Finance Corp. filed separate petitions for Chapter 11 relief on Dec. 15, 2008 (Bankr. D. Del. Case Lead Case No. 08-13324). Mark D. Collins, Esq., at Richards Layton & Finger PA; and Stephen A. Youngman, Esq., and Martin A. Sosland, Esq., at Weil, Gotschall & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed assets and debts between US$100 million and US$500 million each. * MEXICO: Dec. Manufacturing Index Hits Lowest on U.S. Recession ---------------------------------------------------------------- Mexico's manufacturing index declined to 43.6 in December from 44.6 a month earlier due to a worsening recession in the U.S., the largest consumer of Mexican exports, Andres R. Martinez of Bloomberg News reports, citing the Mexican Institute of Financial Executives. The report says the indicator was below 50 for a sixth consecutive month, indicating contraction in the industry. "The deterioration of manufacturing activity has not only persisted, but is intensifying," the institute said in an e-mailed statement obtained by Bloomberg News. Bloomberg News says non-manufacturing index fell to 46.4 in December from 47 in November. According to the report, the U.S. consumes about 80% of Mexican exports. ==================== P U E R T O R I C O ==================== CENTENNIAL COMMS: No Exact Date Yet on Shareholders Meeting ----------------------------------------------------------- Centennial Communications Corp. will hold a special meeting of stockholders at a yet to be determined date to: 1. consider and vote upon a proposal to adopt the Agreement and Plan of Merger, dated as of November 7, 2008, as amended from time to time, by and among the Company, AT&T Inc., and Independence Merger Sub Inc., a direct wholly owned subsidiary of AT&T. 2. approve the adjournment of the special meeting, if necessary or appropriate, to solicit additional proxies if there are insufficient votes at the time of the special meeting to adopt the Merger Agreement. The Troubled Company Reporter said November 26, 2008, that AT&T Inc. has acquired 19,122,000 shares, or about 17.7%, of Centennial Communications common stock. AT&T said the shares are held pursuant to a Voting Agreement, dated as of Nov. 7, 2008, with Welsh, Carson, Anderson & Stowe VIII L.P., Centennial's largest shareholder, and Centennial, obligating Welsh Carson to vote the shares in accordance with the terms of the Voting Agreement. The Merger Agreement provides, among other things, for the merger of the Merger Sub with and into Centennial with Centennial surviving as a wholly owned subsidiary of AT&T. Each share of Centennial Common Stock issued and outstanding immediately prior to the Effective Time will be converted into and will thereafter represent the right to receive US$8.50 in cash, without interest. The Centennial shares will be de-listed from the Nasdaq Global Select Exchange and de-registered under the Securities Exchange Act of 1934, as amended, as soon as practicable. Consummation of the Merger is subject to the satisfaction or waiver of certain conditions, including, but not limited to, (i) approval of the Merger Agreement by the holders of shares of Centennial Common Stock, (ii) conditions related to regulatory approval and (iii) other customary closing conditions. A full-text copy of the Agreement and Plan of Merger, dated as of November 7, 2008, among AT&T Inc., Independence Merger Sub Inc. and Centennial Communications Corp. is available at no charge at: http://ResearchArchives.com/t/s?3535 A full-text copy of the Voting Agreement, dated as of November 7, 2008, between AT&T Inc., Centennial Communications Corp. and Welsh, Carson, Anderson & Stowe VIII L.P. is available at no charge at: http://ResearchArchives.com/t/s?3536 About AT&T AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced Internet protocol-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. About Centennial Communications Based in Wall, New Jersey, Centennial Communications Corp. (Nasdaq: CYCL) - http://www.centennialwireless.com/-- provides regional wireless and integrated communications services in the United States and the Puerto Rico with approximately 1.1 million wireless subscribers and 582,200 access lines and equivalents. The US business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Puerto Rico business owns and operates wireless networks in Puerto Rico and the U.S. Virgin Islands and provides facilities-based integrated voice, data and Internet solutions. Welsh, Carson, Anderson & Stowe is a significant shareholder of Centennial. * * * As reported by the Troubled company Reporter on Nov. 13, 2008, Fitch Ratings has placed the ratings for Centennial Communications Corp. -- IDR 'B'; and Senior unsecured notes 'CCC+/RR6' -- and Centennial Cellular Operating Co. -- IDR 'B'; Senior secured credit facility to 'BB/RR1'; Senior unsecured notes to 'BB/RR1' -- on Rating Watch Positive. On November 12, TCR said Standard & Poor's Ratings Services placed selected ratings on Centennial on CreditWatch with positive implications, including the 'B' corporate credit rating and issue ratings on all unsecured debt, but excluding the 'BB-' rating on subsidiary Centennial Cellular Operating Co. LLC's credit facility. S&P said the CreditWatch excludes Centennial's secured bank facility since it contains mandatory change of control provisions which will be triggered at closing and therefore require repayment at that time. Centennial has about US$1.9 billion in outstanding debt, of which about US$1.4 billion are affected by the CreditWatch action. Moody's Investors Service placed the debt of Centennial -- Corporate Family Rating, currently B2; and Senior Unsecured Regular Bond/Debenture, currently Caa1 -- and Centennial Communications -- Senior Secured Bank Credit Facility, currently Ba2; and Senior Unsecured Regular Bond/Debenture, currently B2 -- on review for possible upgrade. =============================== T R I N I D A D & T O B A G O =============================== HINDU CREDIT: Depositors Face Payment Delay, Liquidator Says ------------------------------------------------------------ Hindu Credit Union's ("HCU") depositors may have to wait longer before receiving returns on their deposits because the preferential creditors were yet to be paid by the credit union, Anna-Rose Madray of Trinidad and Tobago's Newsday reports, citing liquidator Ramdath Dave Rampersad. "I have to first pay out preferential creditors to which huge sums of money are owed, such as the National Insurance Board and Board of Inland Revenue," Mr. Rampersad was quoted by Newsday as saying. As reported in the Troubled Company Reporter - Latin America on Oct. 21, 2008, Caribbean Net News said Trinidad and Tobago's Fraud Squad and Anti Corruption Bureau conducted an investigation into HCU financial operations on reports of several discrepancies and financial improprieties involving tens of millions of dollars. According to TCRLA, citing Caribbean Net News, Mr. Rampersad started to dispose of assets of the credit union in order to repay hundreds of millions of dollars owed to more than 100,000 members of the Union. Newsday says that although HCU chairman Harry Harnarine filed a stay to prevent liquidation of the credit union's assets in October last year, Mr. Rampersad said that the liquidation process was ongoing. In a TCRLA report on Oct. 15, 2008, Trinidad & Tobago Guardian said Mr. Harnarine confirmed filing of a formal appeal with Minister of Labour and Small and Micro Enterprise Development, Rennie Dumas, to suspend the HCU's liquidation. According to the report, Mr. Harnarine's lawyer, Odai Ramischand, argued that the liquidation is like a fire sale wherein properties will be sold at a very undervalued price causing shareholders to lose more. Mr. Harnarine also questioned the independence of Mr. Rampersad. A TCR report on Oct. 14, 2008, said Commissioner Mitchell declared HCU insolvent after Ernst and Young released its audit report of the company. The audit report disclosed that HCU has a net shortfall of assets to liabilities of US$486.5 million. HCU has assets of US$390,131,614 and liabilities of US$876,537,695. Meanwhile, Newsday notes that shareholders including Credit Union Members Group (CRMG) public relations officer Deosaran Bisnath, has complained that depositors were ill-informed about their investments. Mr. Rampersad, Newsday relates, explained that his duty was not a simple one since some of the HCU's encumbered assets lengthened the process of liquidation, as it presented legal difficulties. After preferential creditors are paid out, ex-employees would then have to be paid before depositors with fixed deposits or saving accounts can get their money, he said. According to Newsday, Mr. Rampersad said he was trying to collect funds from organizations owing money to the credit unions, noting "a substantial amount is owed to the credit union, and only after we pay preferential creditors can we even think of paying back people with savings accounts." Mr. Rampersad, Newsday notes, added that 13 of the credit union's vehicles were recently sold to the highest bidders but he was still in the process of collecting payments. "In addition we have to pay operating costs at the credit union," Mr. Rampersad said. About Hindu Credit Headquartered in Borough, Chaguanas, in Trinidad and Tobago, Hindu Credit Union Co-Operative Society Limited (HCU) -- http://www.ourhcu.com/-- reportedly has between US$115.2 million and US$131.6 million in assets and a total of US$32.9 million in liabilities. It has a membership totaling more than 200,000. * * * As reported in the Troubled Company Reporter-Latin America on July 28, 2008, the High Court of Trinidad and Tobago granted the government full control of Hindu Credit as the company faces financial difficulties, leaving depositors in limbo despite requests from lawyers. In June 2008, chartered accountants Ernst and Young inspected Hindu Credit's books, accounts, and records after a public outcry and calls for an internal audit. Charles Mitchell, the Commissioner for Co-Operative Development, represents Hindu Credit's depositors. ================= V E N E Z U E L A ================= PDVSA: Citgo Suspends Heating Aid for U.S. Poor ----------------------------------------------- Petroleos de Venezuela S.A.'s U.S. unit, Citgo Petroleum Corp, has suspended its program to provide free heating oil to hundreds of thousands of low-income U.S. families, Reuters reports, citing Chairman of Citizens Energy Joseph Kennedy. According to Fox44 News, Mr. Kennedy said CITGO credited falling oil prices and the world economic crisis as reasons for pulling out of the program. The program has been suspended indefinitely, he said. "The current economic meltdown has just forced them to reevaluate all the assistance programs that they provide," Mr. Kennedy was quoted by Reuters as saying. Reuters notes the price of heating oil in the U.S. market fell to an average of US$2.33 a gallon during the last week of December, down 7.6 cents a gallon from the previous week and down US$1.01 from the same week of 2007. About CITGO CITGO is an independent crude oil refiner in the U.S. with three modern, highly complex crude oil refineries. Following the sale of its stake in the CITGO-Lyondell joint-venture refinery in Houston, CITGO now owns approximately 759,000 barrels per day of crude refining capacity. CITGO branded fuels are marketed through more than 7,100 independently owned outlets. CITGO is owned by PDV America, an indirect, wholly owned subsidiary of PDVSA. As reported in the Troubled Company Reporter on Nov. 26, 2008, Fitch Ratings affirmed CITGO Petroleum Corp's 'BB-' Issuer Default Rating. About Petroleos de Venezuela Headquartered in Caracas, Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is Venezuela's state oil company in formed to develop the petroleum, petrochemical and coal industry. The company also plans, coordinates, supervises and controls the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Petroleos de Venezuela S.A. continues to carry a 'BB-' long-term corporate credit rating from Standard & Poor's with stable outlook. The rating was affirmed by S&P in April 2008. PDVSA: Crude Output Drops 5.6% in January - September Period ------------------------------------------------------------ Petroleos de Venezuela S.A.'s crude output in the domestic and international refining circuits decreased 5.6% to 2.41 million bpd from 2.55 million bpd between January and September 2008, El Universal News reports, citing a company operational and financial report. According to El Universal, the largest reductions came in the medium crude oil supplied by third parties to refineries. This category ended the nine-month period in 2008 at 53,000 bpd, which represents a yearly drop of 55%, the news agency notes. El Universal says Pdvsa's heavy crude oil shipments to refineries totaled 618,000 bpd, or 13.2% down from January-September 2007. About PDVSA Headquartered in Caracas, Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is Venezuela's state oil company in formed to develop the petroleum, petrochemical and coal industry. The company also plans, coordinates, supervises and controls the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Petroleos de Venezuela S.A. continues to carry a 'BB-' long-term corporate credit rating from Standard & Poor's with stable outlook. The rating was affirmed by S&P in April 2008. =============== X X X X X X X X =============== * IATA Sees US$2.5 Billion Airline Industry Loss in 2009 -------------------------------------------------------- The International Air Transport Association ("IATA") disclosed its forecast for 2009 showing an industry loss of US$2.5 billion. All regions, except the US, are expected to report larger losses in 2009 than in 2008. Forecast highlights are: * Industry revenues are expected to decline to US$501 billion. This a fall of US$35 billion from the US$536 billion in revenues forecasted for 2008. This drop in revenues is the first since the two consecutive years of decline in 2001 and 2002. * Yields will decline by 3.0% (5.3% when adjusted for exchange rates and inflation). * Passenger traffic is expected to decline by 3% following growth of 2% in 2008. This is the first decline in passenger traffic since the 2.7% drop in 2001. * Cargo traffic is expected to decline by 5%, following a drop of 1.5% in 2008. Prior to 2008 the last time that cargo declined was in 2001 when a 6% drop was recorded. * The 2009 oil price is expected to average US$60 per barrel (Brent) for a total bill of US$142 billion. This is US$32 billion lower than in 2008 when oil averaged US$100 per barrel (Brent). "The outlook is bleak. The chronic industry crisis will continue into 2009 with US$2.5 billion in losses. We face the worst revenue environment in 50 years,"said Giovanni Bisignani, IATA's Director General and CEO. IATA also updated its forecast for 2008 to a loss of US$5.0 billion. This is slightly improved from the US$5.2 billion loss projected in the Association's September forecast primarily as a result of the rapid decline in fuel prices. The reduction in industry losses from 2008 to 2009 is primarily due to a shift in the results of North American carriers. Carriers in this region were hardest hit by high fuel prices with very limited hedging and are expected to post the largest industry losses for 2008 at US$3.9 billion. An early 10% domestic capacity reduction in response to the fuel crisis has given the region's carriers a head-start in combating the recession-led fall in demand. The lack of hedging is now allowing the region's carriers to take full advantage of rapidly declining spot fuel prices. As a result, North American carriers are expected to post a small profit of US$300 million in 2009. "North America will be the only region in the black, but the expected US$300 million profit is less than 1% of their revenue. 2009 will be another tough year for everyone,"said Mr. Bisignani. All other regions will show losses: * Asia-Pacific carriers will see losses more than double from the US$500 million in 2008 to US$1.1 billion in 2009. With 45% of the global cargo market, the region's carriers will be disproportionately impacted by the expected 5% drop in global cargo markets next year. The region's largest market - Japan - is already in recession. And its two main growth markets - China and India - are expected to deliver a major shift in performance. Chinese growth will slow as a result of the drop-off in exports. India's carriers, which are already struggling with high taxes and insufficient infrastructure, can expect a drop in demand following on from the tragic terror incidents in November. * Losses for European carriers will increase ten-fold to US$1 billion. Europe's main economies are already in recession. Hedging has locked in high fuel prices for many of the region's carriers in US dollar terms, and the weakened Euro is exaggerating the impact. * Middle Eastern airlines will see losses double to US$200 million. The challenge for the region will be to match capacity to demand as fleets expand and traffic slows - particularly for long-haul connections. * Latin American carriers will see losses double to US$200 million. Strong commodity demand that has driven the region's growth has been severely curtailed in the current economic crisis. The downturn in the US economy is hitting the region hard. * African airlines will see losses of US$300 million continue. The region's carriers face strong competition. Defending market-share will be the main challenge. Mr. Bisignani made special note of the continuing contraction of air cargo traffic that started in June 2008. "Air cargo comprises 35% of value of goods traded internationally. The 7.9% decline in October is a clear indication that the worst is yet to come - for airlines and the slowing global economy,"said Mr. Bisignani. "Airlines have done a remarkable job of restructuring themselves since 2001. Non-fuel unit costs are down 13%. Fuel efficiency has improved by 19%. And sales and marketing unit costs have come down by 13%. IATA made a significant contribution to this restructuring. In 2008 our fuel campaign helped airlines to save US$5 billion, equal to 14.8 million tonnes of CO2. And our work with monopoly suppliers yielded saving of US$2.8 billion. But the ferocity of the economic crisis has overshadowed these gains and airlines are struggling to match capacity with the expected 3% drop in passenger demand for 2009. The industry remains sick. And it will take changes beyond the control of airlines to navigate back into profitable territory,"said Mr. Bisignani. Mr. Bisignani outlined an industry action plan for 2009 that reflected the Association's Istanbul Declaration in June of this year. "Labour must understand that jobs will disappear when costs don't come down. Industry partners must contribute to efficiency gains. And governments must stop crazy taxation, fix the infrastructure, give airlines normal commercial freedoms and effectively regulate monopoly suppliers,"said Mr. Bisignani. * PwC Foresees Slower Growth in Emerging Economies This Year ------------------------------------------------------------ The emerging economies will see a sharp slowdown in growth in 2009, but they could still surpass the advanced economies as early as 2014 in terms of their share of world GDP, according to calculations by economists at PricewaterhouseCoopers LLP (PwC). While all of the major advanced economies are projected to shrink in 2009 and recover only gradually thereafter, the large emerging economies (particularly China and India) are expected to experience only a slowdown not a contraction in 2009 and generally retain much better medium term prospects than the advanced economies. PwC projects that by 2014 the share of emerging economies (based on the International Monetary Fund (IMF) definition including developing countries) could rise to just over half (50.5%) of world GDP in purchasing power parity (PPP) terms, up from 43.7% in 2007. The PwC figures are based on analysis of IMF data on current world GDP shares combined with the firm's latest medium- term growth projections. John Hawksworth, head of macroeconomics, PricewaterhouseCoopers LLP, commented: "It is striking that such a significant shift in world GDP share from advanced economies to emerging economies could occur within as little as six years, and that by 2014 more than half of world GDP could be accounted for by these high growth countries." Alec Jones, head of emerging markets, PricewaterhouseCoopers LLP, added: "The analysis provides an interesting insight into how the opportunities for investors from the UK and other advanced economies are likely to change as the emerging economies grow their consumer markets. Instead of being viewed predominantly as low cost manufacturing and offshoring centres by businesses in the advanced economies, the projections indicate they are fast becoming destination markets in their own right." Other notable findings from the country level results include that, by 2014: * while the US would remain the largest economy in the world, its share of global GDP at PPPs is projected to be down from 21.3% in 2007 to 19%; * China could overtake the euro area and move into second place; * India could nudge ahead of Japan; and * the UK share of world GDP in PPP terms could fall from 3.3% in 2007 to 2.9% in 2014. John Hawksworth, head of macroeconomics at PricewaterhouseCoopers LLP, said: "We expect some sharp slowdowns in emerging market growth in 2009, notably in Russia and Brazil. Growth in China and India could slow to only around 5-6% in 2009, but this is still a pretty respectable performance when contrasted with expected declines in GDP of around 1% or more in the US, Japan and the euro area. The UK economy could shrink by close to 2% in 2009, putting us at the bottom of the G7 league table." "Of course there are many uncertainties around any such projections, with short-term risks still weighted to the downside for all the major economies. But the conclusion that the emerging economies are likely to increase their weight in world GDP significantly over the next five to six years seems relatively robust, even though they are clearly not immune to the global downturn." *********** 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, Marites O. Claro, Joy A. Agravente, Pius Xerxes V. Tovilla, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman, 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 * * *