/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090206.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, February 6, 2009, Vol. 9, No. 26 Headlines A R G E N T I N A BISS SA: Proofs of Claim Verification Due on March 2 CASAF SA: Proofs of Claim Verification Due on April 22 SOLUCIONES ECOLOGICAS: Proofs of Claim Verification Due on May 14 B E R M U D A FREMONT REINSURANCE: Court to Hear Wind-Up Petition on February 27 LAZARD EUROPEAN: Creditors' Proofs of Debt Due on February 18 LAZARD EUROPEAN: Members' Final Meeting Set for March 11 VANGUARD INSURANCE: Court to Hear Wind-Up Petition on February 27 B R A Z I L CAIXA ECONOMICA: To Finance National Housing Program C A Y M A N I S L A N D S ABACAS INVESTMENTS: Placed Under Voluntary Liquidation ANSBACHER (CAYMAN): Placed Under Voluntary Liquidation ANSBACHER CORPORATE: Placed Under Voluntary Liquidation COMTEL BRASILEIRA: Members Receive Wind-Up Report FLAMING SPIRIT: Placed Under Voluntary Liquidation LEVERAGED SHORT: Placed Under Voluntary Liquidation TDC LIMITED: Placed Under Voluntary Liquidation TESTUDO RE: Placed Under Voluntary Liquidation TRANSAMERICA LONG/SHORT ET AL: Placed Under Voluntary Liquidation TRIBECA ASIA: Placed Under Voluntary Liquidation TRIBECA ASIAN EQUITY: Placed Under Voluntary Liquidation TRIBECA ASIAN MACRO: Placed Under Voluntary Liquidation TRIBECA ASIAN STRATEGIES: Placed Under Voluntary Liquidation TRIBECA CONSUMER: Placed Under Voluntary Liquidation TRIBECA EUROPEAN: Placed Under Voluntary Liquidation TRIBECA GLOBAL: Placed Under Voluntary Liquidation TRIBECA TECHNOLOGY: Placed Under Voluntary Liquidation TRIBECA UTILITY: Placed Under Voluntary Liquidation VAAM HOLDINGS: Placed Under Voluntary Liquidation VENN GLOBAL: Placed Under Voluntary Liquidation C O L O M B I A ECOPETROL: Increases Interest in Fuerte Norte & Fuerte Sur Blocks E C U A D O R * ECUADOR: Gets Only One Marginal Oil Fields Development Offer D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: 4 Largest Banks Cut Interest Rates G R E N A D A * GRENADA: Government Concerned About CL Financial Bailout J A M A I C A * JAMAICA: Currency Decline Increases National Debt to $1.1 Tril. M E X I C O VITRO SAB: Grace Period to Make US$44.8MM Payments Ends March 4 * Moody's Assigns 'Ba2' Rating on Municipality of Nicolas Romero T R I N I D A D & T O B A G O CL FINANCIAL: Govt. Bailout in Limbo; Parliament Yet to OK Plan V E N E Z U E L A CITGO PETROLEUM: S&P Puts 'BB' Rating on Negative Watch PDVSA: Owes Over VEB1 Bil. to Contractors, Fedecamaras Pres. Says - - - - - ================= A R G E N T I N A ================= BISS SA: Proofs of Claim Verification Due on March 2 ---------------------------------------------------- Eduardo Gruden, the court-appointed trustee for BISS SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until March 2, 2009. Mr. Gruden will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 10 in Buenos Aires, with the assistance of Clerk No. 20, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Eduardo Gruden Presidente Roque Saenz Pena 1219 Buenos Aires, Argentina CASAF SA: Proofs of Claim Verification Due on April 22 ------------------------------------------------------ Beatriz Stachevsky, the court-appointed trustee for Casaf SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until April 22, 2009. Ms. Stachevsky will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 3 in Buenos Aires, with the assistance of Clerk No. 6, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Beatriz Stachevsky avenida Cordoba 817 Buenos Aires, Argentina SOLUCIONES ECOLOGICAS: Proofs of Claim Verification Due on May 14 ----------------------------------------------------------------- Fernando Altare, the court-appointed trustee for Soluciones Ecologicas SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until May 14, 2009. Mr. Altare will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 28, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Fernando Altare Piedras 153 Buenos Aires, Argentina ============= B E R M U D A ============= FREMONT REINSURANCE: Court to Hear Wind-Up Petition on February 27 ------------------------------------------------------------------ A petition to have Fremont Reinsurance Co. Ltd.'s operations wound up will be heard before the High Court of Bermuda on Feb. 27, 2009, at 9:30 a.m. LAZARD EUROPEAN: Creditors' Proofs of Debt Due on February 18 ------------------------------------------------------------- The creditors of Lazard European Opportunities, Ltd. are required to file their proofs of debt by February 18, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 2, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda LAZARD EUROPEAN: Members' Final Meeting Set for March 11 -------------------------------------------------------- The members of Lazard European Opportunities, Ltd. will hold their final general meeting on March 11, 2009, at 9:30 a.m., at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, in Church Street, Hamilton. At the meeting, Robin J. Mayor, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. VANGUARD INSURANCE: Court to Hear Wind-Up Petition on February 27 ----------------------------------------------------------------- A petition to have Vanguard Insurance Company Ltd.'s operations wound up will be heard before the High Court of Bermuda on Feb. 27, 2009, at 9:30 a.m. =========== B R A Z I L =========== CAIXA ECONOMICA: To Finance National Housing Program ---------------------------------------------------- Caixa Economica Federal will finance Brazil's new national housing program, which foresees the construction of 500,000 low-price houses, Xinhua News reports, citing President Luiz Inacio Lula da Silva. According to the report, the program is expected to offer job opportunities and help fight against the impact of the international financial crisis in the country. President Lula, the report relates, said abandoned buildings owned by the federal government will also be converted into public housing units. Headquartered in Brasilia, Caixa Economica Federal -- http://www.caixa.gov.br-- is a Brazilian bank and one of the largest government-owned financial institutions in Latin America. Founded in Jan. 12, 1861, Caixa Economica is the second biggest Brazilian bank, second only to Banco do Brasil, and offers services in thousands of Brazilian towns, ranking third in Brazil in number of branches. The company has more than 32 million accounts and controls more than US$170 billion. It is responsible for executing policies in the areas of housing and basic sanitation, the administration of social funds and programs and federal lotteries. * * * Caixa Economica Federal continues to carry a Ba2 foreign currency deposit rating from Moody's Investors Service. The rating was assigned by Moody's in May 2008. ========================== C A Y M A N I S L A N D S ========================== ABACAS INVESTMENTS: Placed Under Voluntary Liquidation ------------------------------------------------------ On December 12, 2008, the ordinary shareholder of Abacas Investments Limited 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 company's dividend distribution. The company's liquidator is: Vijayabalan Murugesu c/o Ogier Queensgate House, South Church Street PO Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: 345 815 1481 Facsimile: 345 945 6265 ANSBACHER (CAYMAN): Placed Under Voluntary Liquidation ------------------------------------------------------ At an extraordinary general meeting held on December 12, 2008, the shareholders of Ansbacher (Cayman) Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the company's dividend distribution. The company's liquidators are: Huw Moses Carlos de Serpa Pimentel Clifton House, 75 Fort Street PO Box 190, Grand Cayman KY1-1104 ANSBACHER CORPORATE: Placed Under Voluntary Liquidation ------------------------------------------------------ At an extraordinary general meeting held on December 11, 2008, the shareholders of Ansbacher Corporate Services (Cayman) Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the company's dividend distribution. The company's liquidators are: Huw Moses Carlos de Serpa Pimentel Clifton House, 75 Fort Street PO Box 190, Grand Cayman KY1-1104 COMTEL BRASILEIRA: Members Receive Wind-Up Report ------------------------------------------------- The members of Comtel Brasileira Inc. met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345) 949 8244 Facsimile: (345) 949 5223 FLAMING SPIRIT: Placed Under Voluntary Liquidation -------------------------------------------------- At an extraordinary general meeting held on December 12, 2008, the shareholders of Flaming Spirit Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 31, 2009, will be included in the company's dividend distribution. The company's liquidators are: Connan Hill Bronwynne R. Arch P.O. Box 1109, Grand Cayman KY-1102 Cayman Islands Telephone: 949-7755 Facsimile: 949-7634 LEVERAGED SHORT: Placed Under Voluntary Liquidation --------------------------------------------------- On December 2, 2008, the sole shareholder of Leveraged Short Equity Index Hedge Hub Ltd. passed a written resolution that voluntarily liquidates 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 TDC LIMITED: Placed Under Voluntary Liquidation ----------------------------------------------- At an extraordinary general meeting held on December 12, 2008, the members of TDC Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Onson Mukwedeya Jan Neveril Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TESTUDO RE: Placed Under Voluntary Liquidation ---------------------------------------------- At an extraordinary general meeting held on December 1, 2008, the shareholders of Testudo Re Cayman Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Stuart Jessop 5th Floor, Windward 3, Regatta Office Park West Bay Road, PO Box 2185 Grand Cayman KY1-1105 Cayman Islands TRANSAMERICA LONG/SHORT ET AL: Placed Under Voluntary Liquidation ----------------------------------------------------------------- On December 8, 2008, the shareholders passed a resolution that voluntarily wind up the operations of: -- Transamerica Long/Short Fund Ltd; and -- Transamerica Long/Short Trading Ltd. The company's liquidators are: Jan Neveril Giles Kerley Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA ASIA: Placed Under Voluntary Liquidation ------------------------------------------------ At an extraordinary general meeting held on December 11, 2008, the shareholders of Tribeca Asia Pacific Equity Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Jan Neveril Onson Mukwedeya Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA ASIAN EQUITY: Placed Under Voluntary Liquidation -------------------------------------------------------- At an extraordinary general meeting held on December 12, 2008, the shareholders of Tribeca Asian Equity Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Carl Gosselin Jan Neveril Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA ASIAN MACRO: Placed Under Voluntary Liquidation ------------------------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Tribeca Asian Macro Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Jan Neveril Onson Mukwedeya Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA ASIAN STRATEGIES: Placed Under Voluntary Liquidation ------------------------------------------------------------ At an extraordinary general meeting held on December 11, 2008, the shareholders of Tribeca Asian Strategies Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Emile Small Jan Neveril Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA CONSUMER: Placed Under Voluntary Liquidation ---------------------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Tribeca Consumer Large Cap Long Short Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Jan Neveril Onson Mukwedeya Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA EUROPEAN: Placed Under Voluntary Liquidation ---------------------------------------------------- At an extraordinary general meeting held on December 12, 2008, the shareholders of Tribeca European Strategies Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Carl Gosselin Jan Neveril Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA GLOBAL: Placed Under Voluntary Liquidation -------------------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Tribeca Global Investments Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Jan Neveril Carl Gosselin Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA TECHNOLOGY: Placed Under Voluntary Liquidation ------------------------------------------------------ At an extraordinary general meeting held on December 11, 2008, the shareholders of Tribeca Technology Long Short Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Emile Small Jan Neveril Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands TRIBECA UTILITY: Placed Under Voluntary Liquidation --------------------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Tribeca Utility Long Short Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Jan Neveril Carl Gosselin Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands VAAM HOLDINGS: Placed Under Voluntary Liquidation ------------------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Vaam Holdings Corp. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Jan Neveril Emile Small Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands VENN GLOBAL: Placed Under Voluntary Liquidation ----------------------------------------------- At an extraordinary general meeting held on December 11, 2008, the shareholders of Venn Global Opportunities Fund Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The company's liquidators are: Giles Kerley Jan Neveril Maples Finance Limited, P.O. Box 1093GT Grand Cayman, Cayman Islands =============== C O L O M B I A =============== ECOPETROL: Increases Interest in Fuerte Norte & Fuerte Sur Blocks ----------------------------------------------------------------- Ecopetrol S.A. and BHP Billiton Petroleum Corporation, through its Colombian subsidiary, executed an agreement to increase Ecopetrol's interest in the Fuerte Norte and Fuerte Sur blocks, both located in the Colombian Caribbean Ocean. Pursuant to the terms of the agreement, BHP Billiton will assign to Ecopetrol 25% of its participation in the two blocks, as a result of which each company will have a 50% interest on the blocks. The Fuerte Norte and Fuerte Sur blocks correspond to the hydrocarbons exploration and exploitation contracts executed in April 2006 by BHP Billiton and Ecopetrol with the National Hydrocarbons Agency (ANH) and the joint operation agreements executed by the parties in June 2007. The two blocks, with an approximate size of 954,050 hectares, are part of the projects located offshore in the Colombian Caribbean Ocean. The assignment of the interest by BHP Billinton to Ecopetrol requires approval by the ANH. About Ecopetrol S.A. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. (BVC) under the symbol ECOPETROL. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined-products. * * * As reported by the Troubled Company Reporter-Latin America on November 12, 2008, Fitch Ratings affirmed Ecopetrol S.A.'s foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. The Rating Outlook is Stable. ============= E C U A D O R ============= * ECUADOR: Gets Only One Marginal Oil Fields Development Offer -------------------------------------------------------------- Colombian-Ecuadorian consortium Interpec -- composed of Ecuador's PECS Iecontsa S.A. and Colombia's Integral de Servicios Tecnicos S.A. -- was the only group to submit technical and economic proposals to develop marginal oil fields in Ecuador's Amazonia region, Mercedes Alvaro of Dow Jones Newswire reports. The international tender, the report recounts, was called last year and involved the Eno-Ron, Ocano-Pena-Blanca and Chanangue oil marginal fields. Government-owned Petroecuador will study the proposal and in 13 days announce whether it will award the fields, the report says. According to the report, German Avila, legal representative of the consortium, said Interpec plans to invest about US$30 million for each field to obtain a maximum of 3,000 barrels of oil per day. * * * 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-'. ================================== D O M I N I C A N R E P U B L I C ================================== * DOMINICAN REPUBLIC: 4 Largest Banks Cut Interest Rates -------------------------------------------------------- Four of Dominican Republic's largest banks have announced interest rate cuts, dr1 News reports. The report relates Scotiabank, Banco Leon, the BHD and Banco de Reservas have all cut their rates in recent days. According to the report, Bank Superintendent Rafael Camilo said that it was time for rates to be cut given that the Central Bank's monetary policy had been relaxed. The rates would go back down to their 2008 levels before beginning to spike, he said. Mr. Camilo, the report notes, added that following the measures taken by the Central Bank in December and the rate reductions, it was only right to reduce bank interest rates in order to take some of the pressure off the middle classes. The report notes Mr. Camilo also said the move was aimed at helping "energize" the economy. * * * According to Moody's Investors Service, the country continues to carry a B2 foreign currency rating with a stable outlook, and a B2 local currency rating with stable outlook. ============= G R E N A D A ============= * GRENADA: Government Concerned About CL Financial Bailout ---------------------------------------------------------- The Grenada government and its citizens are keenly following the takeover of one of the Caribbean's leading investment companies, CL Financial, Oscar Ramjeet of Caribbean Net News reports. As reported in the Troubled Company Reporter-Latin America on February 5, 2009, Trinidad & Tobago Newsday said CL Financial tapped London lawyers to seek advise regarding the bail out deal hammered out between the conglomerate, Central Bank and the Trinidad and Tobago government and which saw a memorandum of understanding (MOU) being signed between the parties. According to Newsday, the move by CL Financial comes just days after the Government and group worked out a deal to keep its subsidiary, Clico Life Insurance Co Ltd, afloat and is the latest development in an already muddled transaction. As part of the MOU, the report related, the Central Bank announced that it will take control of CL Financial's bank, Clico Investment Bank (CIB), and its investment arm Caribbean Money Market Brokers (CMMB), by transferring its assets and deposits and liabilities to wholly government-owned First Citizens Bank. In exchange for this lifeline, CL Financial Group will divest its assets, including its 55% share in Republic Bank and its share in Methanol Holdings Trinidad Ltd to First Citizens, effectively giving control of both entities to the Government, Newsday noted. According to Caribbean Net News, the CL Group has shares in Republic Bank, which operates in Grenada, British American Insurance, CLICO, and the Grenada Broadcasting Network, GBN. In a statement obtained by Caribbean Net News, the Ministry of Finance in St George's said that it was aware of recent developments with the CL Financial Group and was assessing the impact and implications of the developments on all CL affiliates including British American Insurance Companies and Republic Bank. The government's primary concern was the impact of the developments on policyholders and depositors in Grenada, the Ministry said in the statement. Caribbean Net News notes that the Ministry, headed by Finance Minister Nazim Burke, was in contact with representatives of the various CL related companies, and Eastern Caribbean Central Bank (ECCB), which in turn is in communication with the Central Bank of Trinidad and Tobago. The Finance Ministry, Caribbean Net News says, noted that the developments involving CL affected not just Grenada, but all member states of the Organisation of Eastern Caribbean States (OECS). Because of this, the Ministry of Finance said that a coordinated regional response was being considered, the same report adds. ============= J A M A I C A ============= * JAMAICA: Currency Decline Increases National Debt to $1.1 Tril. ----------------------------------------------------------------- Jamaica's debt increased $119 billion to $1.1 trillion since the start of the fiscal year in April as the slide in the value of the Jamaican dollar against the American currency since the latter part of 2008 helped to push up the debt stock, Radio Jamaica reports. Citing information from the Ministry of Finance, the report relates at the end of last year, Jamaica owed its overseas creditors $510 billion while $608 billion was due in domestic debt. According to the report, the country's external debt, which stood at $438 billion in April when the US dollar was being sold for $71, was $72 billion higher in December when the currency was trading in the region of $80. * * * According to Moody's Web site, the country continues to hold a B1 foreign currency rating and a Ba2 local currency rating. =========== M E X I C O =========== VITRO SAB: Grace Period to Make US$44.8MM Payments Ends March 4 --------------------------------------------------------------- Vitro, S.A.B. de C.V.'s deadline to make scheduled interest payments of US$12.9 million dollars on its 8.625% Senior Notes due 2012 and US$31.9 million dollars on its 9.125% Senior Notes due 2017, expired February 2. The company has a 30 day-grace period to make the interest payments. Non-payment within the 30-day period would constitute a separate event of default under the indentures governing the 2012 Notes and the 2017 Notes. Vitro said Jan. 29 that four of the counterparties have provided notice, invoking the agreements governing derivative financial instruments, stating that the failure of the company to pay an aggregate of approximately US$293 million dollars -- including approximately US$80 million held as cash collateral by such Counterparties -- constitutes events of default under the DFI Agreements, and have effectively demanded payment of such amounts. As of December 31, 2008, the company had a net loss of approximately US$358 million dollars, including a loss of approximately US$33 million dollars related to the only open derivative financial instruments covering natural gas contracts from 2009-2011 with Pemex. The events of default under the DFI Agreements result in an event of default under the indentures governing the Senior Notes, as described below and the 11.75% Senior Notes due 2013, enabling the trustees of such Notes, or with respect to each of the 2012 Notes, the 2017 Notes, and the 2013 Notes, the holders of 25% or more in principal amount of such Notes, to declare the US$300 million dollars principal amount (and accrued interest) of the 2012 Notes, the US$700 million dollars principal amount (and accrued interest) of the 2017 Notes, respectively and the US$216 million dollars principal outstanding amount (and accrued interest) of the 2013 Notes, to be immediately due and payable. The failure of the company to make the payments due under the DFI Agreements also results in events of default under various other financing agreements of the Company and its subsidiaries, aggregating approximately US$81 million dollars and permitting lenders under such facilities to declare borrowings under these agreements to be immediately due and payable. In addition, the Company and its subsidiaries are also in default under loan agreements of approximately US$17 million dollars, and the Lenders may declare such debt to immediately due and payable. As of December 31, 2008, the Counterparties held an aggregate of approximately US$85 million dollars (not including accrued interest), as cash collateral for the obligations of the Company and/or its subsidiaries under the DFI Agreements. In light of these four Counterparties notices and in order to preserve the necessary cash to continue operations, the company said it does not intend to make scheduled payments due February 2, 2009 of interest of US$12.9 million dollars on its 8.625% Senior Notes due 2012 and US$31.9 million dollars on its 9.125% Senior Notes due 2017. The failure of the Company to make the interest payments within 30 days after the scheduled payment date would constitute a separate event of default under the indentures governing the 2012 Notes and the 2017 Notes. Vitro intends to maintain its operations and continue its business relationships with its customers and suppliers as it seeks to achieve a restructuring of its indebtedness. As of December 31, 2008, the Company had unrestricted cash on hand and cash equivalents of approximately US$103 million dollars, for operating costs and expenses. Vitro has initiated discussions with the Counterparties, its bondholders and its creditors to achieve an organized financial restructuring to improve its balance sheet and it continues to analyze its alternatives in regard with the DFI Agreements. There can be no assurance that the Company's discussions with the Counterparties, its bondholders, and other creditors will be successful. Vitro will provide information, from time to time, as appropriate, about developments of these discussions with the Counterparties, its bondholders, and its creditors. The Company has adopted a significant and focused cost reduction plan, which includes reducing the Company's workforce, canceling airplane leasing contracts, divesture of non productive assets and eliminating the outsourcing of non-strategic services, as part of the measures that have been adopted by the Company to improve its Balance Sheet. It is estimated that these initiatives, as well as those aimed at reducing operating costs, drastically reducing corporate expenses and improve efficiency, will represent annual savings between US$80 and US$120 million dollars. Vitro is confident that it is taking the right steps to position the Company for the future. 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'. * Moody's Assigns 'Ba2' Rating on Municipality of Nicolas Romero ---------------------------------------------------------------- Moody's assigned A2.mx (Mexican National Scale) and Ba2 (Global Scale) ratings to the Municipality of Nicolas Romero Ps. 68 million loan from Interacciones. The ratings are supported by the use of a trust mechanism that isolates the loan's payment source from the municipality, as well as the pledge as payment of federal participation revenue that is expected to be sufficient to cover debt service requirements even under severe stress scenarios. The loan ratings, nonetheless, are constrained by the municipality's relatively low issuer ratings of Baa2.mx (Mexican National Scale) and B1 (Global Scale), the added risk posed by the possibility that minor events of an administrative nature could result in an acceleration or early amortization of the loan and the presence of a debt agreement with ISSEMyM. The loan from Interacciones matures in June 2023 and is payable under the terms of a loan contract and a Master Trust Agreement (201) established with Banco Monex as trustee. Interest on the loan is paid monthly at a variable interest rate, while principal will be paid in 176 monthly installments beginning in November 2008. The ratings assigned herein are based on documentation received by Moody's as of the rating assignment date. Moody's will review all of the definitive documents governing the loan payable under the trust agreement. In the event that the final documentation differs significantly from the drafts submitted to us, Moody's will assess what effects these differences may have on the rating and act accordingly. The key factors affecting the loan ratings are: 1. The municipality's issuer rating of Baa2.mx (Mexican National Scale) and B1 (global scale). As the loan constitutes a direct and binding obligation of the Municipality of Nicolas Romero, its issuer ratings provide the floor to the loan by incorporating the municipality's credit standing: one that features weak financial performance; a high level of accounts payable with suppliers; a weak economic base; and the large contingent liability posed by the poor financial condition of the municipal water company (SAPASNIR). If federal participation revenue flowing to the trust were insufficient to fund the payment and /or reserve accounts, the municipality would be obligated to provide these amounts from other available sources. 2. The use of a trust mechanism to which the municipality has pledged a portion of its federal participation revenue. With funds deposited directly by the State into the trust in accordance with an irrevocable instruction issued by the municipality, the lender's interests are duly protected. While the pledge of a portion of the municipality's federal participation revenue is regarded as weaker than a pledge of the rights to receive such revenue, it still provides security above that of the issuer given that the municipality does not have control of the assets (participaciones) prior to their being deposited in the trust. 3. The pledge as payment source for the loan of 30% of the municipality federal participation revenue, a pledge that is expected to result in an ample level of debt service coverage even under severe stress scenarios. DSC is expected to ranged from a minimum of 8.1 times at the outset in November 2008 and 14.6 times on average for the life of the loan: levels that largely mitigate the risk posed by a future increase in interest rates or by a drop in participation revenues due to high seasonality or negative quarterly or annual adjustments made by the federal treasury. 4. The bank's right to declare an acceleration or early amortization of the loan for lack of compliance with relatively minor obligations could introduce volatility and result in a harsh penalty for relatively minor offenses. This risk is enhanced by the absence of a defined cure period to remedy events of non- compliance. 5. The presence of a debt agreement with ISSEMyM signed in July 2007 whereby the municipality pledged its participation revenues to pay its debt of Ps. 95.5 million with this institution. Although this debt agreement does not have priority of payment over the Interacciones loan, as it is not registered in the state's debt registry. 6. The availability of a limited level of reserves for the payment of interest and principal equal to 2.0% of the initial loan amount or roughly an average of 2 months of debt service, and with the obligation to maintain it at a minimum level of 1.5 months. While the level of reserves is relatively lower than that of other loans rated by Moody's, it offers some protection to creditors from unexpected fluctuations in the flow of funds or timing of the transfer of funds. This reserve is already fully funded and will be maintained until maturity. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: Govt. Bailout in Limbo; Parliament Yet to OK Plan --------------------------------------------------------------- Trinidad and Tobago's plan to bailout CL Financial Ltd is on hold as the Patrick Manning administration is unable to get the parliamentary support for legislation needed for the rescue plan, Caribbean360 News reports. The report relates that amid the debate on the Central Bank (Amendment) Bill and the Insurance (Amendment) Bill, backbencher Dr. Keith Rowley and members of the Opposition were unable to reach agreement with other government MPs. According to the report, with one of those MPs, Dr. Rowley, refusing to give his support and the Opposition asking for more time to study the legislation, the government could not get enough backing to get through with the government rescue plan. As reported by Reuters on January 30, 2009, Trinidad and Tobago seized control of Clico Investment Bank as part of a bid to bail out a number of cash-strapped companies belonging to CL Financial. According to Reuters, the central bank said all third party assets and liabilities on the books of Clico and its Caribbean Money Market Brokers unit would be transferred to state-owned First Citizens Bank. Central Bank Governor Ewart Williams, the same report related, said the move is aimed to ensuring resources are available to meet withdrawals by bank depositors and by policyholders of the Clico Insurance company. Reuters disclosed that Mr. Williams said the government's move was prompted by liquidity concerns stemming from the impact of methanol and real estate prices on the CL Financial's finances. Meanwhile, CL Financial Chairman Lawrence Duprey, as cited by Reuters, said the situation at Clico Investment Bank, Clico Insurance and the British American Insurance company, another firm it owns, "threaten the interest of depositors, policyholders and creditors of these institutions." Reuters noted that Mr. Williams said CL Financial had agreed to divest additional assets to help fund the deficit. Mr. Williams said the government will provide additional funds. "Government funding will be provided in exchange for collateral and an equity interest in Clico. It will also act as a catalyst for implementing a change in the current business model and corporate governance structure of Clico," Reuters quoted Mr. Williams as saying. However, Caribbean360 News points out, unless the Bills are passed, the bailout plan cannot go ahead. The legislation is needed to provide the required oversight for insurance companies and will give regulators the authority to go ahead with the CLICO takeover, the same report says. Caribbean360 News relates that Dr. Rowley said he will not support any Bill that puts billions more dollars in the hands of Calder Hart, Chairman of the National Insurance Board (NIB) which will take control of 55% of the shares in Republic Bank Limited on behalf of the government. He has recommended that there be a holding company instead, the same report notes. According to CaribbeanNet News, Prime Minister Patrick Manning, in a debate, said CLICO is US$8 billion in the red, and that is far from the final figure. The Prime Minister, in his presentation, said he could not understand how in this context that the Opposition Leader Basdeo Panday is insisting, instead of government taking control of the company, that the government lends to Clico. CaribbeanNet News relates, citing The Trinidad Express, Prime Minister Manning said the Opposition Leader was seeking to give the impression that if anyone was culpable it was the government of Trinidad and Tobago. Meanwhile, Caribbean360 News notes that the Central Bank of Barbados has committed financial support to CLICO Mortgage and Finance Corporation (CMFC), one of the companies in the CL Financial Group. The Central Bank said that it would deposit up to BDS$10 million (US$5 million) with CMFC and open a facility in the event that the company needs access liquidity, the same report adds. Mr. Duprey Wants to Remain as CL Financial Head Top United Kingdom attorneys representing Lawrence Duprey's CL Financial Group have written to Finance Minister Karen Nunez- Tesheira and Central Bank Governor Ewart Williams to settle unresolved issues in Government's bailout package for the distressed conglomerate, Trinidad & Tobago Express reports. According to the report, one of the issues to be hammered out would be if Mr. Duprey stayed on as chairman of CL Financial. Mr. Duprey told the Express in an interview that he would step down as CLICO chairman, but had no reason to remove himself as chairman of the CL Financial Group. About CL Financial CL Financial is the largest privately held conglomerate in Trinidad and Tobago and one of the largest privately held corporations in the entire Caribbean. Founded as an insurance company, Colonial Life Insurance Company (CLICO) by Cyril Duprey, it was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. ================= V E N E Z U E L A ================= CITGO PETROLEUM: S&P Puts 'BB' Rating on Negative Watch ------------------------------------------------------- Standard & Poor's Ratings Services said that it took several rating actions on companies in the refining industry following the completion of a sector review. Liquidity concerns and S&P's expectations that industry conditions could remain weak for 2009 and possibly beyond were key factors behind the rating actions. S&P expect margins to remain thin and product demand weak. Rating Actions Sunoco Inc. To BBB/Negative/A-3 From BBB/Stable/A-2 The negative outlook reflects S&P's concerns that refining margins will remain weak in 2009 and possibly well beyond. Furthermore, Sunoco's limited ability to process disadvantaged crudes, its geographic concentration in the highly competitive PADD I region, and its significant near-term regulatory and required capital expenditures place the company at a relative disadvantage. Only partially offsetting these concerns are the company's growing and more stable coke and logistics business units, as well as its moderate debt. Despite the negative outlook on Sunoco, S&P affirmed the 'BBB' rating and kept the stable outlook on the company's partially owned subsidiary, Sunoco Logistics Partners L.P. CITGO Petroleum Corp. To BB/Watch Neg/-- From BB/Negative/-- The CreditWatch placement reflects S&P's concerns about CITGO's tight liquidity. Certain technical restrictions in the company's $450 million account receivable securitization program have significantly restricted availability and usage. The company is seeking approval to amend the facility, which would allow CITGO to considerably enhance its liquidity position. S&P expects the amendment to go through but, given the thin liquidity levels currently, any delay or outcomes contrary to S&P's expectations could leave the company vulnerable to unexpected calls on liquidity. S&P could lower the rating by more than one notch if the amendment is unsuccessful or delayed further than expected. However, if the amendment is approved as proposed, S&P could affirm CITGO's current ratings and outlook. United Refining Co. To B/Negative/-- From B/Stable/-- The outlook revision reflects S&P's expectation of weak financial performance and credit metrics for 2009 and possibly beyond. Interest expense coverage is likely to remain weak at 2x or lower, and adjusted debt leverage could continue to exceed 7x. Adequate liquidity provided primarily by its US$130 million credit facility, which was near full availability as of Jan. 12, 2009, supports the ratings. Western Refining Inc. To B+/Negative/-- From B+/Watch Neg/-- The rating action reflects strong results in the second half of 2008 and S&P's expectations for improved first-quarter results versus year-ago levels. Hence, Western should have an adequate covenant cushion as it continues to pursue debt reduction through asset sales. In particular, near-term compliance with its debt leverage covenant, 5x as of March 31 and 4.75x as of June 30, should be achievable. Nevertheless, the negative outlook reflects the potential for a downgrade if Western fails to deleverage, or if the cushion to its Sept. 30 debt leverage covenant of 4.5x becomes thin. Ratings List Outlook Action/Downgraded Sunoco Inc. To From -- ---- Corporate credit rating BBB/Negative/A-3 BBB/Stable/A-2 Outlook Action United Refining Co. To From -- ---- Corporate credit rating B/Negative/-- B/Stable/-- CreditWatch Action CITGO Petroleum Corp. To From -- ---- Corporate credit rating BB/Watch Neg/-- BB/Negative/-- Western Refining Inc. To From -- ---- Corporate credit rating B+/Negative/-- B+/Watch Neg/-- N.B. -- This does not include all ratings affected. PDVSA: Owes Over VEB1 Bil. to Contractors, Fedecamaras Pres. Says ----------------------------------------------------------------- Petroleos de Venezuela ("PDVSA") owes over a billion bolivares to some 230 contractors and is endangering the economic stability of the suppliers with a potential loss of around 25,000 jobs, Pr- Inside.com reports, citing Zulia State Federation of Chambers of Commerce & Industry ("Fedecamaras") President Nestor Borjas. "At this time there are 230 oil contractors in Zulia State whose existence is endangered because PDVSA owes them more than a billion bolivares and as a consequence there are some 25,000 endangered. We could see a great fall in the Zulia State economy since at least 50% of regional GDP depends on oil revenues," Mr. Borjas was quoted by the report as saying. Mr. Borjas, as cited by the report, emphasized that Zulia "contributes 17% of national GDP and any political and/or economic abuse of Zulia companies may have serious effects on the nation's economy." As reported in the Troubled Company Reporter-Latin America on Feb. 3, 2009, Bloomberg News said PDVSA will begin paying off debts owed to service providers after contractors idled drilling rigs. The same report related the company is also beginning talks with oil field service providers to lower their rates amid the plunge in oil prices in the second half of 2008. According to TCRLA report on Jan. 20, 2009, citing Dow Jones Newswires, PDVSA's debt to its suppliers may have risen by as much as US$3 billion as it struggles to pay its bills as cash flow dries up due to rock-bottom oil prices. Dow Jones Newswires said the company has fallen several months behind on payments to oil service companies and other suppliers that keep its oil business running, a source of concern for many in the industry. As of September, the report related bills owed to suppliers stood at US$7.86 billion, a 39% jump from the same nine-month period in 2007. Dow Jones added French oil services company Schlumberger Ltd. ("SLB") and U.S. firm Halliburton Co. ("HAL") are now owed a combined US$800 million to US$1 billion by some estimates. 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. * * * 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. *********** 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 * * *