/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090129.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 Thursday, January 29, 2009, Vol. 9, No. 20 Headlines B E R M U D A AVOCET EUROPEAN: Creditors' Proofs of Debt Due on February 13 AVOCET G.P.: Creditors' Proofs of Debt Due on February 13 CROATIANSUN LIMITED: Creditors' Proofs of Debt Due on February 13 JUPITER ASIA: Creditors' Proofs of Debt Due on February 13 B R A Z I L * BRAZIL: Loan Defaults Rise to 6-Yr High in Dec. as Economy Slows * BRAZIL: Current Account Fell Into Deficit Last Year C A Y M A N I S L A N D S APOLLO SPIRES: Enters Wind-Up Proceedings ARDEN PREMIER: Placed Under Voluntary Liquidation BT CASCADES: Enters Wind-Up Proceedings BT CASCADES: Enters Wind-Up Proceedings BT NOTES: Enters Wind-Up Proceedings CEDAR INTERNATIONAL: Enters Wind-Up Proceedings CPT500: Commences Liquidation Proceedings EURO CBO: Enters Wind-Up Proceedings FIRST COMMERCE: Enters Wind-Up Proceedings FLAME INC: Enters Wind-Up Proceedings HARBOR DRIVE: Commences Liquidation Proceedings HEART BEAT: Enters Wind-Up Proceedings KATONAH II: Enters Wind-Up Proceedings MURJAN 2: Enters Wind-Up Proceedings OXFORD OPTIONCO ET AL: Placed Under Voluntary Liquidation PANTERA UBER: Placed Under Voluntary Liquidation RAINIER CBO: Enters Wind-Up Proceedings SEQUOIA CAPITAL: Placed Under Voluntary Liquidation SIGNUM SAPPHIRE: Enters Wind-Up Proceedings VINTRY INVESTMENTS: Creditors' Proofs of Debt Due on January 31 E C U A D O R * ECUADOR: To Comply With OPEC's Supply Cut J A M A I C A AIR JAMAICA: To Cut 6 Routes and Eliminate Jobs in February M E X I C O CEMEX SAB: Restructures US$4 Billion Short-Term Debt VITRO SAB: Tells Bond Holders to Ready for Restructuring Talks VITRO SAB: Unit Agrees to Extension of Shares Purchase Payment * MEXICO: Central Bank Sees 1.8% Decrease in 2009 GDP V E N E Z U E L A PDVSA: Petrosucre JV Takes Over Ensco Drilling Rig in Dispute V I R G I N I S L A N D S PALADRU SERVICE: German Lender Forces Company Into Receivership - - - - - ============= B E R M U D A ============= AVOCET EUROPEAN: Creditors' Proofs of Debt Due on February 13 ------------------------------------------------------------- The creditors of Avocet European Technology Fund Limited are required to file their proofs of debt by February 13, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceeding on January 27, 2009. The company's liquidator is: Ian Pilgrim c/o Mayflower Management Services Limited Bamboo Gate, 1 1 Harbour Road Paget PG01, Bermuda AVOCET G.P.: Creditors' Proofs of Debt Due on February 13 --------------------------------------------------------- The creditors of Avocet G.P. (Bermuda) Limited are required to file their proofs of debt by February 13, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceeding on January 27, 2009. The company's liquidator is: Ian Pilgrim c/o Mayflower Management Services Limited Bamboo Gate, 1 1 Harbour Road Paget PG01, Bermuda CROATIANSUN LIMITED: Creditors' Proofs of Debt Due on February 13 ----------------------------------------------------------------- The creditors of Croatiansun Limited are required to file their proofs of debt by February 13, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceeding on January 27, 2009. The company's liquidator is: Ian Pilgrim c/o Mayflower Management Services Limited Bamboo Gate, 1 1 Harbour Road Paget PG01, Bermuda JUPITER ASIA: Creditors' Proofs of Debt Due on February 13 ---------------------------------------------------------- The creditors of Jupiter Asia Pacific Hedge Fund Limited are required to file their proofs of debt by February 13, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceeding on January 27, 2009. The company's liquidator is: Ian Pilgrim c/o Mayflower Management Services Limited Bamboo Gate, 1 1 Harbour Road Paget PG01, Bermuda =========== B R A Z I L =========== * BRAZIL: Loan Defaults Rise to 6-Yr High in Dec. as Economy Slows ------------------------------------------------------------------ Brazil's loan defaults surged in December to the highest since September 2002, as the country's economy slowed and the credit crisis increased borrowing costs, making it more difficult for consumers to repay debt, Bloomberg News reports. The report relates Brazil's central bank said the default rate on personal loans in Brazil increased to 8.1% in December from 7.8% in November, while bank lending expanded 1.6% to IDR1.23 trillion (US$530 billion). "Things will worsen in the first quarter," Luis Miguel Santacreu, an analyst at Austin Rating in Sao Paulo, told Bloomberg in an interview. "We will see the clearer effects of events such as higher unemployment in coming months," he said. According to the report, the average annual interest rate banks charge customers increased to 43.2% in December from 33.8% a year earlier, and rose to 43.3% in the first two weeks of this month. In an effort to stem that increase, the report relates the central bank cut its benchmark rate by a full percentage point on Jan. 21, from a two-year high of 13.75%. "Defaults increased a lot because interest rates are very high," Bloomberg quoted Altamir Lopes, head of the central bank's economic research department, as saying. "In moments of crisis, there's an increase in defaults. We expect this to normalize in a short period of time," he said. As reported in the Troubled Company Reporter-Latin America on January 28, 2009, Xinhua News said a study released by credit consulting company Serasa Experian posted that the default rate of Brazilian companies increased 36% in December from the same period in 2007, the highest increase since 1999. According to Xinhua, December's default rate was up 5.9% from November. In 2008, the default rate among Brazilian companies was up 4.8% compared with 2007, the same report noted. Central Bank President Henrique Meirelles, Bloomberg News relates, said global credit crisis and a worldwide economic slump have constrained lending in Brazil and eroded consumer confidence. Local banks have eased up on lending somewhat, though financing costs remain high, he added. Meanwhile, Bloomberg News says the government announced that it was freezing BRL37.2 billion of its planned spending for 2009 as tax collection declines amid flagging economic growth. * * * According to Moody's Rating Agency, the country continues to carry a BA1 local and foreign currency rating. * BRAZIL: Current Account Fell Into Deficit Last Year ----------------------------------------------------- Brazil's current account fell into deficit in 2008, for the first time in six years as the global financial crisis prompted foreigners to repatriate assets, squeezing the country's trade surplus, Reuters reports, citing central bank data. Brazil ran a current account deficit last year of US$28.3 billion, reversing a surplus of US$1.55 billion in 2007, the report says. "In 2008, our balance of payments showed a significant deterioration ... because of the international crisis," the report quoted Altamir Lopes, head of the central bank's economic research department, as saying. According to the report, the current account deficit, along with a rise in portfolio investment outflows, also hurt Brazil's broader balance of payments even as foreign direct investment surged to an all-time high, the data cited by Reuters showed. Reuters notes that a near 40% jump in income repatriation by multinational companies in need of cash at home and a sharp narrowing of the trade surplus helped pushed the country's current account into deficit last year. With a global economic recovery nowhere in sight, analysts expect Brazil's current account to remain in deficit this year, though sluggish domestic growth and lower company profits could limit the fallout, the report states. Mr. Lopez, as cited by Reuters, said income repatriation and a near halving of Brazil's trade surplus also hurt Brazil's current account last year. Reuters recounts income repatriation rose 17.7% in December from a year ago to US$4 billion. For the year, corporate remittances totaled US$40.6 billion, a 38.5% increase over 2007, the report notes. The trade surplus narrowed to US$24.7 billion last year from US$40 billion in 2007 as the global crisis hurt demand for Brazil's exports and knocked prices, the report adds. * * * According to Moody's Rating Agency, the country continues to carry a BA1 local and foreign currency rating. ========================== C A Y M A N I S L A N D S ========================== APOLLO SPIRES: Enters Wind-Up Proceedings ----------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Apollo Spires Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands ARDEN PREMIER: Placed Under Voluntary Liquidation ------------------------------------------------- On December 9, 2008, the sole shareholder of Arden Premier Fund SPC passed a resolution that voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 5, 2009, will be included in the companies' dividend distribution. The company's liquidator is: Ogier c/o Angus Davison Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 BT CASCADES: Enters Wind-Up Proceedings --------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of BT Cascades No. 2 Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands BT CASCADES: Enters Wind-Up Proceedings --------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of BT Cascades No. 3 Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands BT NOTES: Enters Wind-Up Proceedings ------------------------------------ At an extraordinary general meeting held on December 11, 2008, the shareholders of BT Notes Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands CEDAR INTERNATIONAL: Enters Wind-Up Proceedings ----------------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Cedar International Securities Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands CPT500: Commences Liquidation Proceedings ----------------------------------------- On December 3, 2008, the sole shareholder of CPT500 passed a special resolution that voluntarily wind up the company's operations. 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 EURO CBO: Enters Wind-Up Proceedings ------------------------------------ At an extraordinary general meeting held on December 11, 2008, the shareholders of Euro CBO Services Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands FIRST COMMERCE: Enters Wind-Up Proceedings ------------------------------------------ At an extraordinary general meeting held on December 11, 2008, the shareholders of First Commerce resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands FLAME INC: Enters Wind-Up Proceedings ------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Flame Inc. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands HARBOR DRIVE: Commences Liquidation Proceedings ----------------------------------------------- On November 27, 2008, the sole shareholder of Harbor Drive Fund, Ltd. passed a special resolution that voluntarily wind up the company's operations. 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 HEART BEAT: Enters Wind-Up Proceedings -------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Heart Beat Funding 2, Inc. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands KATONAH II: Enters Wind-Up Proceedings -------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Katonah II, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands MURJAN 2: Enters Wind-Up Proceedings ------------------------------------ At an extraordinary general meeting held on December 11, 2008, the shareholders of Murjan 2 Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands OXFORD OPTIONCO ET AL: Placed Under Voluntary Liquidation --------------------------------------------------------- On December 9, 2008, the shareholder of Oxford Optionco Ltd. and Oxford Optionco 0 Limited adopted a resolution that voluntarily wind up the companies' operations. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the companies' dividend distribution. The companies' liquidator is: John Sutlic c/o Kim Charaman Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Facsimile: (345) 949 8499 PANTERA UBER: Placed Under Voluntary Liquidation ------------------------------------------------ On December 11, 2008, the sole shareholder of Pantera Uber Consumer Master Fund Ltd. passed a resolution that voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 7, 2009, will be included in the companies' dividend distribution. The company's liquidator is: Ogier c/o Angus Davison Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 RAINIER CBO: Enters Wind-Up Proceedings --------------------------------------- At an extraordinary general meeting held on December 11, 2008, the members of Rainier CBO I Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands SEQUOIA CAPITAL: Placed Under Voluntary Liquidation --------------------------------------------------- On December 9, 2008, the sole shareholder of Sequoia Capital Management International Limited passed a special resolution that voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 20, 2009, will be included in the company's dividend distribution. The company's liquidator is: John Ralph Wardlaw c/o Lewis Holdway 20 Queen Street, Melbourne Victoria Australia Tel: +61 3 9629 9629 Fax: +61 3 9629 9630 SIGNUM SAPPHIRE: Enters Wind-Up Proceedings ------------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Signum Sapphire Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the companies' dividend distribution. The company's liquidator is: David Dyer c/o Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall, Cricket Square 171 Elgin Avenue, George Town Grand Cayman KY1-1104, Cayman Islands VINTRY INVESTMENTS: Creditors' Proofs of Debt Due on January 31 --------------------------------------------------------------- The creditors of Vintry Investments (Cayman) Limited are required to file their proofs of debt by January 31, 2009, to be included in the company's dividend distribution. The company's liquidator is: Jonathan Foster c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104, Cayman Islands ============= E C U A D O R ============= * ECUADOR: To Comply With OPEC's Supply Cut ------------------------------------------- Ecuador will reduce state oil output to comply with OPEC's supply cut and expects its production to remain unchanged this year at around 270,000 barrels per day, Alonso Soto of Reuters reports, citing Oil Minister Derlis Palacios. According to the report, Ecuador has slashed investment in the key oil sector as falling oil prices crimp the country's income. Still, Minister Palacios said state oil company, Petroecuador, will start to slash output by 18,000 bpd to comply with OPEC supply cut in an effort to lift oil prices, the report relates. "Petroecuador and (its affiliate) Petroamazonas will lower output by 18,000 bpd in coming days," Reuters quoted Minister Palacios as saying. Reuters says Ecuador has to cut output by 40,000 bpd to comply with the cartel's supply reduction. * * * As reported in the Troubled Company Reporter - Latin America on December 17, 2008, Fitch Ratings downgraded Ecuador's long-term foreign currency Issuer Default Rating (IDR) to 'RD' from 'CCC' following the expiration of the grace period for the coupon payment on the 2012 global bonds that was due on Nov. 15 and the government's announcement that it will selectively default on all global bonds. The short-term foreign currency rating was downgraded to 'D' from 'C'. The country ceiling remains at 'B-'. ============= J A M A I C A ============= AIR JAMAICA: To Cut 6 Routes and Eliminate Jobs in February ----------------------------------------------------------- Debt-ridden Air Jamaica will eliminate six routes and cut jobs next month due to global meltdown in the economy, various reports say. Associated Press relates Air Jamaica CEO Bruce Noble said flights to Atlanta, Miami, Los Angeles, Barbados, Grenada and the island of Grand Cayman will be cut in late February. The carrier had to "cut routes where we are losing money," he said. According to CaribWorldNews, the cuts will result in job losses in those areas and the reduction of the airline's fleet to nine aircraft. Mr. Bruce Noble, AP relates, said the number of workers will be dismissed around the same time of the route cuts. CaribWorldNews notes Mr. Nobles said the cuts are designed to respond to the current global economic downturn, quickly stem the substantial cash losses at the company, and position the airline on a path to financial stability going forward. Officials, CaribWorldNews relates, also said the beleaguered airline will restructure existing leases and negotiate aircraft returns to trim cost. AP says Jamaica expects to divest itself from the airline by April. As reported in the Troubled Company Reporter - Latin America on January 7, 2008, Jamaica News said the National Workers Union ("NWU"), one of the union representing Air Jamaica workers, suggested the government should seriously consider delaying the stake sale of Air Jamaica. The union said hope is fading that the March 31 deadline for the divestment will be met, the same report related. Radio Jamaica News earlier reported Air Jamaica still has no clear buyer as the three months divestment deadline expiration approaches. The report said 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. Radio Jamaica News, citing Air Jamaica President and Chief Executive Officer, Bruce Nobles, said 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. A TCR-LA report on November 20, 2008 said according to Jamaican Information Service, 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. On Jan. 8, 2009, the TCR-LA, citing Jamaica Gleaner, said a local group in Jamaica is reportedly considering to become a major player in troubled airline Air Jamaica's future operations. According to the report, vice president of NWU, Granville Valentine, said members of the group have so far approached the union for consultations on the matter. RadioJamica News notes a source said a question mark has been placed beside a local consortium that has presented an offer for Air Jamaica. Checks are being made on its financial backing to determine whether it has the cash to operate Air Jamaica after it's removed from state control, the same report relates. 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 =========== CEMEX SAB: Restructures US$4 Billion Short-Term Debt ---------------------------------------------------- CEMEX, S.A.B. de C.V. said it has successfully completed its refinancing plan. The Wall Street Journal relates the cement maker had restructured US$4 billion in short-term debt, a day before it is expected to post its first quarterly loss in a decade. The Journal says based on median estimate of seven analysts polled by Dow Jones Newswires, the company, heavily exposed to the U.S. housing market, is expected to show a net loss of US$242 million in the last quarter of 2008. CEMEX is scheduled to release its quarterly results today, Thursday, January 29. CEMEX had previously announced that it had selected five banks to: i) negotiate new long-term syndicated facilities to replace existing short-term bilateral facilities; ii) extend the maturity by one year of a portion of the US$3.0 billion Rinker Group Limited acquisition syndicated loan facility due in December 2009; and iii) amend the leverage ratio covenant, among other conditions, of certain existing syndicated loan facilities. The final key components of the refinancing plan include: * US$2.3 billion of short-term bilateral facilities originally scheduled to mature in 2009 and early 2010 were refinanced in two long-term syndicated facilities. The final maturity for the amounts refinanced in these new long-term facilities is February 2011, with US$607 million amortizing in 2009 and US$536 million amortizing in 2010. * CEMEX extended to December 2010 US$1.7 billion of the US$3 billion syndicated loan facility which was originally due in December of 2009. * CEMEX amended and increased in December 2008, among other terms, the leverage ratio provisions in its existing syndicated facilities. The new leverage ratio requirement at the CEMEX, S.A.B. de C.V. level is a Net Debt of no more than 4.5 times the trailing-twelve-month EBITDA in December 31, 2008, increasing to 4.75 times in June 30, 2009, and gradually decreasing to 3.5 times by September 30, 2011 and thereafter. Rodrigo Trevi�o, CEMEX's Chief Financial Officer, said: "We are pleased with the outcome of this refinancing, as it demonstrates the health of CEMEX's business model and it is evidence of the support of our banks. This was another important step to strengthen our capital structure and to lengthen the maturity profile of our debt." CEMEX, S.A.B. de C.V. (NYSE: CX) -- http://www.cemex.com/-- is a holding company primarily engaged, through its operating subsidiaries, in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. The company is a global cement manufacturer with operations in North America, Europe, South America, Central America, the Caribbean, Africa, the Middle East, Oceania and Asia. As of December 31, 2007, the company's main cement production facilities were located in Mexico, the United States, Spain, the United Kingdom, Germany, Poland, Croatia, Latvia, Venezuela, Colombia, Costa Rica, the Dominican Republic, Panama, Nicaragua, Puerto Rico, Egypt, the Philippines and Thailand. On August 28, 2007, CEMEX completed the acquisition of 100% of the Rinker Group Limited. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 23, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Cemex S.A.B. de C.V. and Cemex's key operating subsidiaries (Cemex Espana, S.A., Cemex Mexico S.A. de C.V., and Cemex Inc.) to 'BB+' from 'BBB-', and placed the ratings on CreditWatch with negative implications, meaning that the rating could either be lowered or affirmed following the completion of S&P's review. The long-term Mexican national scale rating on Cemex also was lowered, to 'mxAA-' from 'mxAA'. At the same time, S&P lowered its rating on Cemex's fixed-to-floating callable perpetual debentures to 'BB' from 'BB+'. The rating downgrades reflect S&P's expectations that Cemex's financial performance for 2009 will be under further pressure given the weakening of economic growth prospects in Cemex's principal markets and around the world. About 74% of the company's revenue is concentrated in the U.S., Mexico, and Spain -- all of which S&P expects to record negative growth in this year, which will translate into lower volumes and cash flow generation compared with 2008, the rating agency said. VITRO SAB: Tells Bond Holders to Ready for Restructuring Talks -------------------------------------------------------------- Vitro, S.A.B. de C.V, the Mexican glassmaker that rating companies said may miss a US$45 million interest payment next week, told bondholders to prepare for restructuring negotiations, Thomas Black of Bloomberg News reports, citing Carlos Legaspy, president of Precise Investment Management, an investment firm in San Diego, and James Harper, an analyst with BCP Securities in New York. According to the report, Blackstone Group LP, hired by Vitro in November to help restructure its liabilities, held the call with creditors on January 27, but declined to say on the call if Vitro will make the interest payment by the Feb. 1 due date. "They want the creditors to organize to start talks," President Legaspy told Bloomberg in a telephone interview. Bloomberg News notes Vitro's bonds due in 2012 and 2017, which both have Feb. 1 interest payments, have sunk to below 25 cents on the dollar as the company's profit has been eroded by slumping demand for glass and losses from derivatives on natural gas prices. "Vitro representatives as well as legal and financial advisors have been engaged in discussions with our bondholders and counterparties over the last several weeks in order to enhance the company's financial flexibility," Vitro said in an e-mailed statement in response to Bloomberg questions. "We continue to work with our bondholders to reach a solution that is in our mutual interest," the company said. About Vitro 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 by the Troubled Company Reporter-Latin America on January 28, 2009, Moody's Investors Service downgraded Vitro, S.A.B. de C.V.'s senior unsecured debt and corporate family ratings to Ca from Caa1. The ratings outlook is negative. Fitch Ratings also downgraded these ratings for Vitro, S.A.B. de C.V.: -- Long-term Issuer Default Rating to 'CC' from 'B-'; -- Long-term local currency IDR to 'CC' from 'B-'; -- US$300 million senior notes due 2012 to 'CC/RR4' from 'B- /RR4'; -- US$225 million senior notes due 2013 to 'CC/RR4' from 'B- /RR4'; -- US$700 million senior notes due 2017 to 'CC/RR4' from 'B- /RR4'. VITRO SAB: Unit Agrees to Extension of Shares Purchase Payment -------------------------------------------------------------- Vitro S.A.B. de C.V. said its subsidiary, Vimexico S.A. de C.V., in conjunction with the Prado Family members and Invergar Participaciones Inmobiliarias S.L., the joint venture partners in its Spanish subsidiary Vitro Cristalglass S.L., agreed to extend distribution of payment for the purchase by Vimexico of its joint venture partners' 40% stake in Vitro Cristalglass through the remainder of 2009. During the third quarter of 2008, Vimexico made a partial payment to its joint venture partners of approximately EUR4 million. The agreement to extend the payment period for its joint venture partners' interest in Vitro Cristalglass is consistent with a number of actions Vitro has undertaken to strengthen its balance sheet and enhance liquidity. About Vitro Cristalglass Vitro Cristalglass, part of Vitro's Flat Glass business unit, is the industry leader in the manufacturing, distribution and marketing of specialty glass for the construction industry in Spain and Portugal. It also participates in the French construction industry through its subsidiary, Vitro Cristalglass France. About Vitro 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 by the Troubled Company Reporter-Latin America on Jan. 27, 2009, Fitch Ratings downgraded these ratings for Vitro, S.A.B. de C.V.: -- Long-term Issuer Default Rating to 'CC' from 'B-'; -- Long-term local currency IDR to 'CC' from 'B-'; -- US$300 million senior notes due 2012 to 'CC/RR4' from 'B- /RR4'; -- US$225 million senior notes due 2013 to 'CC/RR4' from 'B- /RR4'; -- US$700 million senior notes due 2017 to 'CC/RR4' from 'B- /RR4'. * MEXICO: Central Bank Sees 1.8% Decrease in 2009 GDP ----------------------------------------------------- Mexico's central bank said gross domestic product may shrink 0.8% to 1.8% in 2009, after growing 1.5% last year, Bloomberg News reports, citing Bank Governor Guillermo Ortiz. The report relates the central bank also said Mexico will lose 160,000 to 340,000 formal jobs this year. According to the report, bank policy makers said Mexico will be harder hit than previously predicted by the recession in the U.S., which buys 80% of Mexican exports. "As we expect a contraction in the economy, this corresponds to any definition of recession," Bloomberg quoted Mr. Ortiz as saying. The Central bank, the report notes, said weaker economic activity gives the central bank "margin to relax" monetary policy. Policy makers cut the benchmark rate to 7.75% from 8.25% on Jan. 16, the first time the bank cut rates in almost three years, Bloomberg News recounts. "Unlike previous financial crises, the current crisis is of a global nature," the central bank said in a statement obtained by Bloomberg. Economic and financial uncertainty "have adversely affected Mexico and its financial markets," it added. Meanwhile, Bloomberg News adds the central bank forecasts inflation will slow to less than 4% at the end of this year, and reach the bank's target of 3% by the end of 2010. ================= V E N E Z U E L A ================= PDVSA: Petrosucre JV Takes Over Ensco Drilling Rig in Dispute ------------------------------------------------------------- Petroleos de Venezuela SA's Petrosucre joint venture "assumed operational control" of Ensco International Inc.'s offshore drilling rig Ensco 69 after the Dallas-based company halted operations in a payment dispute, Steven Bodzin of Bloomberg News reports. According to Bloomberg News, Petrosucre is a joint venture of PDVSA and Eni SpA, Italy's biggest energy company. The venture pumps the Corocoro oilfield. ConocoPhillips was a partner on the field until it left the country in 2007 over Venezuela's unilateral contract changes. The report relates PDVSA's accounts payable to suppliers have risen along with a plunge in oil prices since July. Crude oil has fallen by more than US$100 a barrel since setting a record US$147.27 a barrel July 11, the report says. PDVSA, Bloomberg News recounts, was paying Ensco about US$185,000 a day to use the rig in 400-foot-deep water. The rig is Ensco's only piece of equipment in Venezuela and has been working since 2006, at a cost to PDVSA of US$110 million, according to a PDVSA statement obtained by Bloomberg. "Ensco's decision to halt drilling operations was taken in the course of negotiations on the terms and conditions for the payments of accounts payable for services provided to the joint venture that began in December 2008," Bloomberg quoted PDVSA as saying. PDVSA, the report relates, said Ensco didn't accept "a range of proposals and payment formulas presented by the joint venture." Shutting down operations without 30 days notice violated and nullified the service contract, PDVSA added. Bloomberg News, citing a company financial report, notes PDVSA accounts payable climbed 39% to US$7.86 billion at the end of September from the end of December. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported by the Troubled Company Reporter on Nov. 26, 2008, Fitch Ratings affirmed CITGO Petroleum Corp's Issuer Default Rating and outstanding debt ratings: -- IDR at 'BB-'; -- US$1.15 billion senior secured revolving credit facility maturing in 2010 at 'BBB-'; -- US$700 million secured term-loan maturing in 2012 at 'BBB-'; -- US$515 million secured term-loan maturing in 2012 at 'BBB-'; -- Fixed-rate industrial revenue bonds at 'BBB-'. ========================== V I R G I N I S L A N D S ========================== PALADRU SERVICE: German Lender Forces Company Into Receivership --------------------------------------------------------------- Paladru Service Corporation has been forced into receivership by its German bank lender, believed to be Deutsche Bank, following the collapse of Crossways Shopping Centre, PropertyWeek.com reports. The report relates it was thought that Paladru purchased the Crossways Shopping, which is also in receivership, from Kenmore Property in 2006. The shopping center has struggled to finance development opportunities and has suffered from a high vacancy level and the downturn in property and retail, the report says. According to the report, the German lender has appointed GVA Grimley as receiver. PropertyWeek.com notes Robert Belcher, director and appointed receiver at GVA Grimley, said: "The reason for the receivership is that there is money owing on the debt and the demand has been served by the mortgagor." "The parties concerned wanted their funds back and decided to appoint us as receiver to do that," the report quoted Mr. Belcher as saying. "We are still formulating a strategy to report to the banks as to the best way forward. Part of this will include a valuation of the asset," Mr. Belcher said. "A disposal will certainly take place, but no timescale has yet been agreed. In terms of the company structure of Paladru, I have not yet got to the bottom of it yet," Mr. Belcher added. About Paladru Service Paladru Service Corporation is an offshore special purpose vehicle set up by private investors thought to be based in the British Virgin Islands. *********** 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 * * *