/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090409.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, April 9, 2009, Vol. 9, No. 70 Headlines A N T I G U A & B A R B U D A STANFORD INT'L BANK: SEC Wins Order to Freeze Owner's UK Assets B A H A M A S RENOVA HOLDING: Moody's Downgrades Corporate Family Rating to 'B1' B R A Z I L BNDES: To Lend Azul Linhas BRL254 Million for Plane Purchase COSAN SA: Seeks Partnership With Petrobras C A Y M A N I S L A N D S FRONTIER V: Placed Under Voluntary Wind-Up SANWA CAPITAL: Placed Under Voluntary Wind-Up NS INVESTMENTS: Placed Under Voluntary Wind-Up BIG INVESTMENTS: Creditors’ Proofs of Debt Due on April 28 GREAT OAK: Placed Under Voluntary Wind-Up NEPTUNE CDO: Placed Under Voluntary Wind-Up SMITH BREEDEN: Placed Under Voluntary Wind-Up PENGANA CAPITAL: Placed Under Voluntary Wind-Up AERCAP LEASING: Creditors’ Proofs of Debt Due on April 27 RUMNA LIMITED: Creditors’ Proofs of Debt Due on April 21 C H I L E AES GENER: S&P Changes Outlook to Negative; Affirms All Ratings G U Y A N A CL FINANCIAL: Clico Guyana Wants Clico Bahamas Investments Back J A M A I C A AIR JAMAICA: Probe Report to be Presented in Parliament AIR JAMAICA: To Reintroduce 'Nitebird' Flight to New York AIR JAMAICA: Won't Receive Government Provision This Year M E X I C O CORPORACION DURANGO: Board to Vote on New Equity Offering CORPORACION DURANGO: May Present Restructuring Plan on April 23 P E R U STANFORD INT'L BANK: Peru Investors' Losses May Reach US$120-Mln X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L BANK: SEC Wins Order to Freeze Owner's UK Assets --------------------------------------------------------------- The U.S. Securities and Exchange Commission (SEC) won an order extending a freeze on Stanford International Bank Limited (SIBL) owner Robert Allen Stanford's UK assets, Bloomberg News reports. The report says Justice Colin Mackay at the High Court in London signed an order freezing the assets until April 27. According to Bloomberg News, David Wolfson, a lawyer representing the SEC in London, told Judge Mackay that he had been in contact with the UK banks that held Stanford's assets, and they were "holding the fort". The SEC, on Feb. 17, charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include SIBL, Stanford Group Company, and investment adviser Stanford Capital Management. As reported in the Troubled Company Reporter-Latin America on April 8, 2009, Bloomberg News said U.S. District Judge David Godbey seized all of Mr. Stanford’s corporate and personal assets and placed them under the control of Dallas receiver Ralph Janvey. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. ============= B A H A M A S ============= RENOVA HOLDING: Moody's Downgrades Corporate Family Rating to 'B1' ------------------------------------------------------------------ Moody's Investors Service has downgraded the corporate family rating of Renova Holding Ltd to B1 from Ba3 and left the probability of default rating unchanged at B2 and assigned the A2.ru national scale rating. The outlook is negative. The rating action is predominantly driven by Moody's assessment of the company's liquidity position and refinancing needs while taking into account the action plan developed by the company to manage proactively its liquidity position and debt service obligations as well as the specific steps that, if concluded on a timely basis, would address the company's 2009 refinancing requirements. Looking ahead, Renova also has substantial refinancing needs in 2010 that may put additional pressure on its liquidity position and credit profile. The rating action takes further consideration of the impact of the substantial decline in the equity markets and estimated comparable reduction in the valuations of Renova's sizable unlisted assets on the headroom that had existed under the group's Market Value-based Leverage metrics, notwithstanding the gradual deleveraging undertaken by the group. The B1 Corporate Family Rating is supported at this time by the expectation of relatively high family recovery rates in the event of a default underpinned by the current market valuations of the core listed assets, notwithstanding the potential effect on the value of Renova's investment in RUSAL, which is in the process of implementing a broader refinancing transaction in negotiation with its creditors. Moody's has chosen to affirm the Probability of Default rating of B2 on the basis that: (i) Moody's can see scenarios where the company's debt capital structure - currently a mix of senior secured and unsecured bank debt - could evolve toward an all senior secured bank debt capital structure over the course of the next 12 months which, under Moody's methodology, would suggest the prospect of higher recoveries albeit with higher probability of default possibilities, and (ii) the developing stresses here relate to liquidity and refinancing risk increasing disproportionately Moody's probability of default assumption, versus Moody's loss given default assumption. Moody's nevertheless acknowledges that the company is pursuing a disciplined and well organized process for raising funds and cash generation from the existing portfolio required to meet maturing debt obligations so a ratings reversal is acknowledged as a possibility if the company was able to complete its plans and implement a more permanent debt capital structure that alleviated liquidity and debt refinancing pressures. The negative outlook reflects Moody's assessment of the challenges presented by the current deterioration in the operating and credit environments that may affect Renova's ability to execute its plans in a timely manner. Further downward pressure on the rating may develop if delays with implementation of specific measures designed to support the deleveraging process undermine the assumptions supporting the B2 probability of default assessment implied by the B1 corporate family rating. Moody's previous rating action on Renova was on the 9 February 2009 when the rating agency downgraded the corporate family rating of Renova by one notch to Ba3 and maintained the review for downgrade of the rating. This rating action concludes the review process. Renova Holding Ltd is a Bahamas-based investment holding company with principal investments in TNK-BP, UC RUSAL, a number of Russian power generation and distribution companies, as well as chemical, machinery, telecoms and media and real estate companies in Russia and Europe. At the end of 2008, the fair value of its portfolio was estimated at US$8 billion. =========== B R A Z I L =========== BNDES: To Lend Azul Linhas BRL254 Million for Plane Purchase ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social SA (BNDES) said it will lend Azul Linhas Aereas Brasileiras BRL245 Million for the purchase of 4 planes, Latin France reports. According to Latin France, Azul Aereas plans to use proceeds to fund 85% of its purchase from Brazilian manufacturer Embraer. The report says the bank said the 15-year facility pays TJLP, now at 6.25%. The bank, the report notes, said it will fund 50% directly and pass the other half through Banco do Brasil. About Azul Linhas Azul Linhas Aereas Brasileiras is a low-cost airline set up last year by JetBlue founder David Neeleman. About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. The rating was assigned in August 2007. COSAN SA: Seeks Partnership With Petrobras ------------------------------------------ Cosan SA Industria & Comercio is seeking a partnership with Brazilian state-controlled oil company Petroleo Brasileiro SA, Bloomberg News says citing a media report. According to Bloomberg News, Rio de Janeiro-based newsletter Relatorio Reservado said, without saying where it got the information, that billionaire Cosan controlling shareholder Rubens Ometto is seeking funds from Petrobras and the National Bank for Economic and Social Development to boost the company’s assets. Bloomberg News relates Global Equity Administradora de Recursos’ Mariana Goncalves said Petrobras may be looking for a partnership with Cosan to export ethanol to Japan. “The news floating around is that Petrobras is interested in creating a private company that would sell ethanol to Japanese markets,” Ms. Goncalves, an equity analyst at Global in Rio de Janeiro, told Bloomberg News in a telephone interview. “That company would be managed by Cosan.” About Cosan SA Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e Comercio -- http://www.cosan.com.br/en/ir/-- produces sugar and ethanol. The company cultivates harvests and processes sugarcane, the main raw material for sugar and ethanol manufacturing. With 17 manufacturing units and two port terminals in the city of Santos, Cosan says it is currently the largest individual group in the world in terms of sugarcane byproducts manufacturing. With capacity to grind more than 40 million tonnes of sugarcane, the group represents 12% of overall production in the mid-southern region of the country. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 14, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on sugar and ethanol producer Cosan Ltd. and its Brazilian operating subsidiary, Cosan S.A. Industria e Comercio (jointly referred to as Cosan), to 'BB-' from 'BB'. At the same time, S&P removed the ratings from CreditWatch, where they were placed with negative implications on April 24, 2008. ========================== C A Y M A N I S L A N D S ========================== FRONTIER V: Placed Under Voluntary Wind-Up ------------------------------------------ On March 16, 2009, the sole shareholder of Frontier V Limited passed a resolution that voluntarily winds 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 SANWA CAPITAL: Placed Under Voluntary Wind-Up --------------------------------------------- On March 16, 2009, the sole shareholder of Sanwa Capital Genesis TMK Holding Inc. passed a resolution that voluntarily winds 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 NS INVESTMENTS: Placed Under Voluntary Wind-Up ---------------------------------------------- On March 16, 2009, the sole shareholder of NS Investments VIII, Inc. passed a resolution that voluntarily winds 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 BIG INVESTMENTS: Creditors’ Proofs of Debt Due on April 28 ---------------------------------------------------------- The creditors of Big Investments Ltd. are required to file their proofs of debt by April 28, 2009, to be included in the company’s dividend distribution. The company commenced wind-up proceedings on Feb. 24, 2009. The company’s liquidator is: Robert Bigelow III c/o Blue River Asset Management, LLC 7 North Willow Street, Suite 8A Montclair, NJ 07042, USA GREAT OAK: Placed Under Voluntary Wind-Up ----------------------------------------- On March 18, 2009, the sole shareholder of Great Oak Investment Limited passed a resolution that voluntarily winds 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 NEPTUNE CDO: Placed Under Voluntary Wind-Up ------------------------------------------- On March 18, 2009, the sole shareholder of Neptune CDO IV, Ltd. passed a resolution that voluntarily winds 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 SMITH BREEDEN: Placed Under Voluntary Wind-Up --------------------------------------------- On March 17, 2009, the sole shareholder of Smith Breeden Enhanced Cash High Alpha Ltd. passed a resolution that voluntarily winds 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 PENGANA CAPITAL: Placed Under Voluntary Wind-Up ----------------------------------------------- On March 18, 2009, the sole shareholder of Pengana Capital Real Estate International Limited passed a resolution that voluntarily winds 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 AERCAP LEASING: Creditors’ Proofs of Debt Due on April 27 --------------------------------------------------------- The creditors of Aercap Leasing 8 Limited are required to file their proofs of debt by April 27, 2009, to be included in the company’s dividend distribution. The company commenced liquidation proceedings on December 29, 2008. The company’s liquidator is: Maria Van Der Linden-Van Gent c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104, Cayman Islands RUMNA LIMITED: Creditors’ Proofs of Debt Due on April 21 -------------------------------------------------------- The creditors of Rumna Limited are required to file their proofs of debt by April 21, 2009, to be included in the company’s dividend distribution. The company commenced liquidation proceedings on March 13, 2008. The company’s liquidator is: Ian Stokoe c/o Jodi Jones PO Box 258, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8694 Facsimile: (345) 945 4237 ========= C H I L E ========= AES GENER: S&P Changes Outlook to Negative; Affirms All Ratings --------------------------------------------------------------- On April 7, 2009, Standard & Poor's Ratings Services revised the outlook on Chile-based AES Gener S.A. to negative from stable. At the same time, S&P affirmed all 'BBB-' ratings. The outlook change reflects the company's increasing leverage to finance its intensive capital expenditure plan to incorporate efficient coal fired generation capacity (about 500MW) amid highly volatile cash flow generation. The volatility is mainly due to fluctuating revenues, related to the evolution of node prices in Chile and weather conditions in Colombia, and volatile costs as a result of the evolution of spot prices, natural gas availability, and diesel oil prices in Chile. S&P expects the company to reach peak levels of debt to EBITDA of about 3.5x during construction period (compared with 3.2x in 2008) and to start reducing that ratio to levels more in line with the rating category once the new projects come on line (2010-2011). The output of the new projects is expected to be contracted under framework of Short Law II and should somewhat reduce Gener's high cash flow volatility. S&P can lower the ratings upon further deterioration of Gener's financial risk profile, particularly during the expansion period. The 'BBB-' ratings incorporate total debt to EBITDA below 4x and FFO interest coverage and FFO to average total debt above 3x and 20%, respectively. Those ratios incorporate the assumption that no additional projects are developed and funded with additional debt until current projects are completed and do not include Angamos project-related debt. Should Gener decide to develop additional projects, S&P would review S&P's expectations for its financial profile, and credit metrics would have to strengthen to compensate for the incremental construction and development risks. Additionally, S&P does not consolidate Angamos project related debt (about $1 billion in 2011) into Gener's analysis because S&P views the company's exposure limited to its equity stake. Should Angamos face difficulties to complete the project or in a distress scenario for project, S&P expects Gener not to financially support it. Its role would only be limited to supporting the project's operations while renegotiating any financial obligation. Should S&P find evidence that Gener would financially support Angamos, S&P's analysis will consolidate the project debt into Gener's, which could significantly affect the ratings. The ratings on Gener also reflect its good market position as a reliable power provider in Chile, with lower-than-average exposure to droughts in its core market, its large power sales contracts with solid offtakers in the Chilean Central Interconnected System, and its good competitive position in the Chilean Northern Interconnected System and in Colombia. The offsetting factors are Gener's higher-than-average power generation costs under normal hydrological conditions compared with relatively large hydroelectric generators in the SIC and severe natural-gas supply shortages in Chile, which raise the company's generation costs and/or the cost of its power purchases. Gener's profit margin and cash flow generation highly depend on the evolution of the node and spot electricity prices in the SIC -- where about 45% of the company's generation assets are located -- and on the performance of its operations in the SING and Colombia. However, during 2007 and 2008, the SIC's contribution to the company's consolidated EBITDA plunged to 16% and 18%, respectively, from 47% in 2006 because of the significant increase in operating and power purchase costs, only partly offset by the higher node price. As a result, company's total consolidated EBITDA decreased by 14% to $285 million in 2007, and was partially offset by a good performance of the SING and Colombian operations. During 2008, EBITDA rose 53% compared with the 2007 level mainly due to increased node prices and sales at high spot market prices in the SIC, and to a lesser extent, to higher capacity revenues and spot market sales in Colombia. In a base case medium- to long-term scenario, S&P expects Gener's operations in the SIC to generate 30%-50% of consolidated EBITDA, with the entry of new contracts under more favorable terms (given the conditions established by the Short Law II) and the entry in operations of new, more efficient capacity. Given its higher operating costs than for other hydro based competitors, Gener's strategy in the SIC is to execute sale contracts for its efficient generation units in order to reduce revenue volatility. When spot prices are below Gener's generation costs (e.g., periods when water availability is normal or high), the company buys lower-cost power from the spot market to fulfill its power sales contracts. Consequently, its margins improve. When spot prices are higher, margins fall because Gener either buys more expensive power in the spot market or generates it at a higher cost. Below-average hydrology and the shortages in natural-gas supply from Argentina increase the cost of buying and generating power, given the need to burn higher-cost fuels, and harm Gener's margins. However, in a scenario of extremely tight supply demand situation, when spot market prices reach very high levels, such as in the first quarter of 2008, Gener benefits from selling its non-contracted power generation (the most inefficient units) in the spot market. In addition, the company's profit margin and cash flow generation depend on natural-gas availability in the SING and on the performance of its 100%-owned Colombian power generator AES Chivor. These operations provided 42% and 40% of total consolidated EBITDA, respectively, in 2008 compared with 45% and 39% in 2007, mainly because of the abovementioned extraordinary adverse scenario in the SIC. However, S&P expects that in a base case medium- to long-term scenario, those markets would contribute 20%-40% and 30%-40%, respectively, of consolidated EBITDA. Gener's financial risk profile is supported by adequate, but volatile, cash flow generation, relatively low debt maturities until 2014, and adequate financial flexibility. These factors somewhat mitigate the increased use of debt. During 2008, despite higher debt levels to finance investments, Gener's consolidated debt service coverage ratios benefited from higher node prices and sales in the spot market and to distribution companies without contracts at very high spot prices in the SIC, and from AES Chivor's higher capacity revenues and spot market sales. As a result, FFO interest coverage and FFO to total debt improved to 4.7x and 19.6%, respectively, in 2008 from 4.1x and 18% in 2007. Gener has developed an ambitious expansion strategy in Chile through these measures: The construction of new thermal capacity for about 1,200 MW (Santa Lidia 130 MW diesel, Nueva Ventanas 267 MW coal, Campiche 270 MW coal, and Angamos 518 MW coal); 304 MW expansion by its 50%-owned Empresa Eléctrica Guacolda S.A.; and Other planned projects, such as Alto Maipo 530 MW hydro and Los Robles 750 MW coal in Chile, which S&P is not considering to be developed in the next two years. Gener accounts for about 20% of Chile's total generation capacity, with an installed capacity of 2,559 MW. The company is 70.6% indirectly owned by the U.S.-based AES Corp. (BB-/Stable/--), which is rated significantly lower than AES Gener (BBB-/Stable/--). Generally, Standard & Poor's will not rate the debt of a majority-owned subsidiary higher than that of the parent. However, S&P make exceptions on the basis of the cumulative value provided by enhancements, such as structural protections, covenants, and an independent shareholder or director. According to the company's bylaws, Gener cannot make intercompany loans to its shareholders. Gener can distribute dividends only if FFO interest coverage exceeds 2.4x, or has two investment-grade credit ratings, or it obtains confirmation that the dividend payment will not affect the ratings. The enhancements in place for Gener, with certain legal insulation provided by Chilean bankruptcy law, provide sufficient comfort to allow for the current three-notch difference between AES Corp. and Gener. Liquidity S&P views Gener's liquidity as adequate. Despite the expected significant increase in investments in new generation projects in the next five years, which would result in higher debt levels, S&P expects Gener to benefit from a cash position of about $100 million, low debt maturities until 2014, and a fluid access to the financial markets, which includes access to committed bank lines fully available for $130 million. Evidence of the good access to the markets is the recently made increase in capital (of $272 million in June 2008 and $246 million in February 2009). Outlook The negative outlook reflects the deterioration in the financial profile given the company's increasing debt levels to finance its investment plan. S&P could lower the ratings if the company's credit metrics further deteriorate, with total debt to EBITDA ratio exceeding 4x and FFO interest coverage and FFO to average total debt below 3x and 20%, respectively (ratios excluding Angamos project related debt and assuming no additional projects funded with debt under development) in 2009. S&P can revise the outlook to stable if the company is able successfully cope with cash flow volatility in the next two years and/or when the projects under development start to come on line and contribute additional cash flows. Ratings List Outlook Revised AES Gener S.A. To From -- ---- Corporate credit rating BBB-/Negative/-- BBB-/Stable/-- =========== G U Y A N A =========== CL FINANCIAL: Clico Guyana Wants Clico Bahamas Investments Back --------------------------------------------------------------- The Guyana government is making headway to recover its investments in CLICO Bahamas Limited, a unit of CL Financial Limited, as the beleaguered company continues its liquidation exercise, Kendea Jones of The Bahama Journal reports. As reported in the Troubled Company Reporter-Latin America on April 2, 2009, Caribbean Net News said CL Financial owed Guyana through investments made to CLICO (Bahamas), by CLICO Life and General Insurance Company South America Limited (CLICO Guyana). The same report said following CLICO (Bahamas)'s collapse, Guyana was forced to retain lawyers to help recover its money which represented some 53% of CLICO (Guyana)'s assets. Citing international reports, the Bahama Journal relates Guyana President Bharrat Jagdeo said his government may phase an allocation of $34 million over a 10-year period should the monies invested in CLICO Bahamas not be recovered. The president, as cited by the Journal, said the "bail out package" would not be a large liability that Guyana’s treasury could not handle should the company not be able to return its funds. Mr. Jagdeo, the report relates, said the Guyanese government is hoping that by disposing of local assets, it can clear up the dilemma of small policy holders. The government might also discuss ideas for returning, over a period of time, revenues on investments made, he added. The Journal notes Mr. Jagdeo said Bahamas authorities wanted to classify CLICO Guyana’s investment in Clico (Bahamas) as an inter- company loan and not as a policy, which would see it being handled in a way that is more favorable to Guyana. CLICO Bahamas's Liabilities Exceed Assets by US$18Mln The Trinidad and Tobago Express reported that CLICO Bahamas's liabilities exceeded its assets by US$18 million. According to the report, provisional liquidator Craig Tony Gomez listed CLICO Bahamas's total assets at US$116,965,096 and total liabilities at US$135,085,964. The report said Mr. Gomez also noted that the company had a "considerable amount of critical claims", which were being reviewed, including death benefits, emergency surgeries, cancer patient treatments and HIV patient treatments. In addition, Mr. Gomez, as cited by the Express, said CLICO Bahamas can't recover the US$73 million it loaned to CLICO Enterprises Ltd as part of a Florida real estate deal because of the downturn in the US real estate market. About CL Financial According to Wikipedia, CL Financial Limited 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. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2009, the Trinidad and Tobago Express said Central Bank Governor Ewart Williams disclosed that an examination of insurance company CLICO, dissolved finance house CLICO Investment Bank and other CL Financial companies, showed a deficit between $6 billion and $8 billion. Tobago President George Maxwell Richards, The Express related, signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. According to the Trinidad and Tobago Newsday, the government used $1 billion of taxpayers money to help protect depositors and policyholders. T&T Newsday related Governor Williams pleaded with policy holders not to withdraw money from Clico, amid the unit's increasing $10 billion debt. ============= J A M A I C A ============= AIR JAMAICA: Probe Report to be Presented in Parliament ------------------------------------------------------- Contractor General Greg Christie's probe report on Air Jamaica Limited's controversial GBP5-million slot sale to Virgin Atlantic Airlines at London's Heathrow Airport in 2007 will be tabled in Parliament on Tuesday afternoon, Radio Jamaica News reports. According to the report, Speaker of the House Delroy Chuck said he had read the document and signed off on its release. As reported in the Troubled Company Reporter-Latin America on April 8, 2009, the Jamaica Gleaner said Air Jamaica former Finance Minister Dr Omar Davies rejected Mr. Christie's probe report that claims he had illegally and improperly intervened into the sale of Air Jamaica’s London Heathrow routes to Virgin Atlantic. The Gleaner related Mr. Christie also reportedly alleged that the sale was unfair because Virgin Atlantic was placed in advantageous position over British Airways which was the second bidder. According to Radio Jamaica, the Office of the Contractor General (OCG) investigation on Air Jamaica's slot sale to Virgin Atlantic Airlines was initiated last April after Air Jamaica CEO Don Wehby raised concern about impropriety and a lack of transparency in the sale of state assets. Questions were raised about breach of the Government's Procurement Guidelines, mismanagement and a breach of accounting procedures, Radio Jamaica noted. Radio Jamaica said the Bruce Golding administration had taken issue with the decision by the previous government to divest the Heathrow slots. Finance Minister Audley Shaw maintained that they were sold too cheaply and accused the People's National Party administration of gross dereliction of duty in the manner it disposed of the slots, Radio Jamaica said. Meanwhile, Mr. Davis, as cited by the Gleaner, said he is satisfied that his role as finance minister was entirely lawful at the end of the slot divestment process in 2007. Mr. Davis, the Gleaner related, also claimed that the deal added real value, because it led to Virgin making material improvements in its bid. In addition, the Gleaner notes Mr. Davies said British Airways was also given the chance to improve its bid, but it confirmed in writing that it would not be doing so. The Gleaner added Mr. Davies said Mr. Christie has confirmed that he is unable to conclude that Air Jamaica could have achieved more for the slots. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- 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. AIR JAMAICA: To Reintroduce 'Nitebird' Flight to New York --------------------------------------------------------- Air Jamaica Limited will reintroduce the 'Nitebird' flight on the New York route starting June 25, bringing to four the number of flights between Jamaica and the U.S. City, The Jamaica Observer reports. According to the report, the airline will depart New York's John F Kennedy (JFK) Airport at 2:15 am to arrive in Kingston at 5:00 am, while the Kingston flight will depart at 12:15 am, arriving in New York at 5:00 am. The report relates the other three flights will leave Jamaica at 8:00 am, 5:45 pm, and 6:00 pm, while those from New York to Jamaica will depart 7:00 am, 12:45 pm, and 2:00 pm. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- 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. AIR JAMAICA: Won't Receive Government Provision This Year --------------------------------------------------------- Air Jamaica Limited will not be included in the government's list of state-owned companies that will be made self-sufficient this year, Camilo Thame of The Jamaican Observer reports. The report relates no provision has been placed for Air Jamaica in the estimates of expenditure tabled in Parliament. According to the Observer, four public bodies are expected to drain some $2 billion from the government's coffers. The Observer notes Air Jamaica was supposed to have come off the Government's books since March, but the deadline for divestment was pushed back. As reported in the Troubled Company Reporter-Latin America on April 6, 2009, the Associated Press said the Jamaican government has extended Air Jamaica's divestment deadline to June 30 as it tries to attract buyers. Radio Jamaica News noted the government said it will not be meeting its March 31 deadline for the sale of Air Jamaica despite earlier assurances by government officials that a deal would have been reached with a buyer in March. According to Radio Jamaica, Don Wehby, minister overseeing the talks, said no sale has been finalized. Radio Jamaica related Mr. Wehby said a meeting is already scheduled for mid-April with an international airline group from which the privatization committee has already received an indicative offer for Air Jamaica. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- 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 =========== CORPORACION DURANGO: Board to Vote on New Equity Offering --------------------------------------------------------- Mexico-based Corporacion Durango S.A.B. de C.V. said its board will vote on the terms and conditions of a new equity offering, Latin France reports. According to the report, it is not clear if shares to be issued would be new capital – which would dilute the Rincon family, which holds 68% of the company – or if the company intends to offer creditors part of the family’s equity stake as debt repayment. As reported in the Troubled Company Reporter-Latin America on April 6, 2009, Latin France said Corporacion Durango reached a tentative agreement with some 92% of its creditors to restructure its debt. Latin France recalled in October, the company said it would look to restructure some US$1.5 billion, including over US$500 million at the holdco level and around US$1 billion at its subsidiaries. The report related in 2007, the company issued US$520 million in 10.5% notes via Merrill Lynch. “This restructuring will allow the company to substantially reduce its debt, having achieved an equitable agreement which guarantees it a future of growth and development,” Latin France quoted Company CEO Miguel Rincon Arredondo as saying. As reported in the Troubled Company Reporter, Bloomberg News said Corporacion Durango filed for Chapter 15 bankruptcy with the U.S. Bankruptcy Court for the Southern District of New York (Lead Case No. 08-13911) on Oct. 6, 2008, after missing a US$26.5 million interest payment on 10.5 percent bonds due in 2017. Two of its affiliates filed for Chapter 11 protection separately with the same court on the same day. About Corporacion Durango Mexico-based Corporacion Durango S.A.B. de C.V. produces brown paper and packaging products. Its packaging division, Empresas Titan, manufactures corrugated packaging in Mexico. It also produces newsprint through Grupo Pipsamex. CORPORACION DURANGO: May Present Restructuring Plan on April 23 --------------------------------------------------------------- Corporacion Durango S.A.B. de C.V. said it is set to present a a debt restructuring plan, which may include issuing new dollar- denominated debt, and propose issuing new shares at a shareholder's meeting on April 23, Hugh Collins of Bloomberg News reports, citing a statement to the Mexico stock exchange. The report notes Gerardo Roman, head of equity sales and trading at Mexico City-based independent money-manager Actinver SA, said investors expect the company “can improve the terms of its debts.” As reported in the Troubled Company Reporter-Latin America on April 6, 2009, Latin France said Corporacion Durango reached a tentative agreement with some 92% of its creditors to restructure its debt. Latin France recalled in October, the company said it would look to restructure some US$1.5 billion, including over US$500 million at the holdco level and around US$1 billion at its subsidiaries. The report related in 2007, the company issued US$520 million in 10.5% notes via Merrill Lynch. As reported in the Troubled Company Reporter, Bloomberg News said Corporacion Durango filed for Chapter 15 bankruptcy with the U.S. Bankruptcy Court for the Southern District of New York (Lead Case No. 08-13911) on Oct. 6, 2008, after missing a US$26.5 million interest payment on 10.5 percent bonds due in 2017. Two of its affiliates filed for Chapter 11 protection separately with the same court on the same day. About Corporacion Durango Mexico-based Corporacion Durango S.A.B. de C.V. produces brown paper and packaging products. Its packaging division, Empresas Titan, manufactures corrugated packaging in Mexico. It also produces newsprint through Grupo Pipsamex. ======= P E R U ======= STANFORD INT'L BANK: Peru Investors' Losses May Reach US$120-Mln ---------------------------------------------------------------- Stanford International Bank Limited (SIBL) owner Robert Allen Stanford's allegedly fraudulent financial schemes may cause more havoc than initially expected, as Peruvian investors could lose as much as US$120 million, Latin France reports, citing a Lima-based source involved in the investigation of the financial entity. Latin France recalls Peruvian media previously estimated local investors’ losses at between US$50 million and US$100 million. According to Latin France's source, the government may have a hard time recouping investors’ losses as funds are thought to have been funneled to SIBL. The SEC, on Feb. 17, charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include SIBL, Stanford Group Company, and investment adviser Stanford Capital Management. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Apr. 16-19, 2009 COMMERICAL LAW LEAGUE OF AMERICA 2009 Chicago/Spring Meeting Westin Hotel on Michigan Ave., Chicago, Ill. Contact: (312) 781-2000; http://www.clla.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 1, 2009 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners Alexander Hamilton Custom House, New York City Contact: 1-703-739-0800; http://www.abiworld.org/ May 4, 2009 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference New York Marriott Marquis, New York City Contact: 1-703-739-0800; http://www.abiworld.org/ May 7-8, 2009 RENASSANCE AMERICAN MANAGEMENT, INC. 6th Annual Conference on Distressted Investing - Europe The Le Meridien Piccadilly Hotel, London, U.K. Contact: 1-903-595-3800 or http://www.renaissanceamerican.com/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 12-15, 2009 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Tulane University, New Orleans, La. 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Contact: http://www.abiworld.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ *********** 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 2009. 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 * * *