/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090429.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, April 29, 2009, Vol. 10, No. 83 Headlines A N T I G U A & B A R B U D A SIBL: Receiver Says US$1 Billion Received by Bank Can't be Found A R G E N T I N A ABASTECEDORA MATIEGO: Proofs of Claim Verification Due on May 22 AGENCIA KEYSTONE-SUCURSAL: Claim Verification Due on June 26 DIKER SA: Proofs of Claim Verification Due on June 19 ING. LANA: Verifies Proofs of Claims OMAHA SA: Proofs of Claim Verification Due on June 16 PARKINVEST SA: Proofs of Claim Verification Due on June 3 RONDINE SA: Proofs of Claim Verification Due on June 3 VANK SA: Proofs of Claim Verification Due on July 6 VISION EXPRESS: Asks for Opening of Preventive Contest B R A Z I L BANCO DO BRASIL: Changes Top Management Positions GERDAU AMERISTEEL: To Hold First Quarter Conference Call on May 7 TAM SA: Inks Aeroplan Miles Deal With Air Canada TELE NORTE: To Substitute Brasil Telecom Brand From May C H I L E SOCIEDAD DE INVERSIONES: High Leverage Cues S&P to Hold BB- Rating C O L O M B I A BANCOLOMBIA: Inks New Partnership With Xoom.com G U A T E M A L A * GUATEMALA: IMF Approves US$935 Million Stand-By Arrangement M E X I C O JBS USA: Swine Flu in Mexico Won't Affect Moody's 'B1' Rating ROYAL CARIBBEAN: Temporarily Suspends Port Calls in Mexico T R I N I D A D & T O B A G O CL FINANCIAL: Five Senior Officials Quit Posts U R U G U A Y FEDERACION URUGUAYA: Fitch Affirms 'B' Issuer Default Rating BANCO SURINVEST: Fitch Affirms Issuer Default Rating at 'B' V E N E Z U E L A PDVSA: No Wage Increase for Workers This Year, Minister Says PEQUIVEN: Cuts Executive Pay by 20% to Avoid Job Layoffs - - - - - =============================== A N T I G U A & B A R B U D A =============================== SIBL: Receiver Says US$1 Billion Received by Bank Can't be Found ---------------------------------------------------------------- Stanford Financial Group (SFG) court-appointed receiver, Ralph Janvey, said Stanford International Bank Limited (SIBL) owner Robert Allen Stanford's companies were organized to blur how they operate and that as much as US$1 billion by SIBL can’t be found, Bloomberg News reports. “It appears that very few people were privy to sufficient information to understand the totality of the operations,” Mr. Janvey said in a 58-page report filed in federal court in Dallas, the report relates. “The structure was seemingly designed to obfuscate holdings and transfers of cash and assets.” “Some of this cash may have been transferred to Mr Stanford and then used by him to purchase personal assets or invested in personal bank accounts that are not reflected in available financial records,” Mr. Janvey said in his report obtained by Bloomberg News. “This value may be recoverable once identified.” The Securities and Exchange Commission (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 (SGC), 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 court-appointed SGC 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. ================= A R G E N T I N A ================= ABASTECEDORA MATIEGO: Proofs of Claim Verification Due on May 22 ---------------------------------------------------------------- Otto Munch, the court-appointed trustee for Abastecedora Matiego S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until May 22, 2009. Mr. Munch will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 7 in Buenos Aires, with the assistance of Clerk No. 14, 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. Inadmissible claims may be subject to appeal in a separate proceedings known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. The Trustee can be reached at: Otto Munch Maipu 509 Argentina AGENCIA KEYSTONE-SUCURSAL: Claim Verification Due on June 26 ------------------------------------------------------------ Hugo Dogliani, the court-appointed trustee for Agencia Keystone- Sucursal Argentina's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 26, 2009. Mr. Dogliani will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11, 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. Inadmissible claims may be subject to appeal in a separate proceedings known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. The Trustee can be reached at: Hugo Dogliani Pedro Rivera 3944 Argentina DIKER SA: Proofs of Claim Verification Due on June 19 ----------------------------------------------------- The court-appointed trustee for Diker S.A.'s bankruptcy proceedings, verified creditors' proofs of claim on June 19, 2009. The trustee will present the validated claims in court as individual reports on August 19, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on October 2, 2009. ING. LANA: Verifies Proofs of Claims ------------------------------------ The court-appointed trustee for Ing. Lana Construcciones S.R.L.'s reorganization proceedings, verified creditors' proofs of claim on April 16, 2009. The trustee will present the validated claims in court as individual reports on June 1, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 31, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on December 16, 2009. OMAHA SA: Proofs of Claim Verification Due on June 16 ----------------------------------------------------- Silvia Trombetta, the court-appointed trustee for Omaha SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 16, 2009. Ms. Trombetta will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 36, 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. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Trombetta is also in charge of administering the company's assets under court supervision and will take part in their disposal to the extent established by law. The Trustee can be reached at: Silvia Trombetta Vamonte 1337 Buenos Aires, Argentina PARKINVEST SA: Proofs of Claim Verification Due on June 3 --------------------------------------------------------- Gerardo Seghezzo, the court-appointed trustee for Parkinvest SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 3, 2009. Mr. Seghezzo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 16 in Buenos Aires, with the assistance of Clerk No. 32, 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. Inadmissible claims may be subject to appeal in a separate proceedings known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. The Trustee can be reached at: Gerardo Seghezzo Combate de los Pozos 128 Argentina RONDINE SA: Proofs of Claim Verification Due on June 3 ------------------------------------------------------ Juan Villoldo, the court-appointed trustee for Rondine SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 3, 2009. Mr. Villoldo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 26 in Buenos Aires, with the assistance of Clerk No. 51, 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. Inadmissible claims may be subject to appeal in a separate proceedings known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. The Trustee can be reached at: Juan Villoldo Uruguay 651 VANK SA: Proofs of Claim Verification Due on July 6 --------------------------------------------------- Maria Ratibel, the court-appointed trustee for Vank SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until July 6, 2009. Ms. Ratibel 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. 5, 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. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Ratibel is also in charge of administering the company's assets under court supervision and will take part in their disposal to the extent established by law. The Trustee can be reached at: Maria Ratibel Peru 1237 VISION EXPRESS: Asks for Opening of Preventive Contest ------------------------------------------------------ Vision Express Argentina S.A. asked for the opening of preventive contest before the National Commercial Court of First Instance No. 16 in Buenos Aires, with the assistance of Clerk No. 31. =========== B R A Z I L =========== BANCO DO BRASIL: Changes Top Management Positions ------------------------------------------------- Banco do Brasil SA replaced several top executives after Chief Executive Officer Aldemir Bendine assumed his post, Alberto Alerigi Jr. at Reuters reports. According to Reuters, the bank named Paulo Rogerio Caffarelli as vice president of credit card and new retail business, the post previously occupied by Mr. Bendine; and replaced its vice presidents of retail and distribution; international business and wholesale banking; government; credit, control and global risk and social responsibility issues and human resources. The Wall Street Journal relates the bank replaced six out of the nine senior vice presidents at Banco do Brasil. All the new vice presidents are career employees, the report notes. As reported in the Troubled Company Reporter-Latin America on April 13, 2009, Dow Jones Newswires said President Silva fired Banco do Brasil CEO Antonio Francisco Lima Neto because of concerns over persistently high interest charges for consumers. According to the Associated Press, President Silva insisted he had not fired Mr. Neto, rather Mr. Neto offered his resignation to Brazil Finance Minister Guido Mantega. However, AP related local media have widely speculated that Mr. Neto was forced out. Bloomberg News noted Mr. Mantega told reporters in Brasilia that Mr. Bendine, will replace Mr. Neto as bank CEO About Banco do Brasil Banco do Brasil SA is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * As reported by the Troubled Company Reporter-Latin America on Jan. 20, 2009, Fitch Ratings affirmed Banco do Brasil S.A.'s Individual Rating at 'C/D'. GERDAU AMERISTEEL: To Hold First Quarter Conference Call on May 7 ----------------------------------------------------------------- Gerdau Ameristeel Corporation, a unit of Brazil-based Gerdau S.A., scheduled a conference call for May 7, 2009 to discuss its 2009 first quarter financial results for the three-month period ending March 31, 2009. The call will start 3:00 p.m., Eastern Time. DIAL-IN NUMBER: 416-644-3433 or 1-800-814-4861 REFERENCE NUMBER: 21304888 followed by the number sign LIVE WEBCAST: www.gerdauameristeel.com. Mario Longhi, President and CEO of Gerdau Ameristeel, and Barbara Smith, Vice President and CFO, will co-chair the call. About Gerdau Ameristeel Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a mini-mill steel producer in North America. Through its vertically integrated network of 17 mini-mills, 17 scrap recycling facilities and 52 downstream operations, Gerdau Ameristeel serves customers throughout North America. The company's products are sold to steel service centers, steel fabricators, or directly to original equipment manufactures for use in a variety of industries, including construction, cellular and electrical transmission, automotive, mining and equipment manufacturing. Gerdau Ameristeel is a unit of Brazil-based Gerdau S.A. * * * As reported in the Troubled Company Reporter on Apr 20, 2009, Standard & Poor's Ratings Services said that it placed its ratings, including its 'BB+' corporate credit rating, on Tampa, Florida-based Gerdau Ameristeel Corp. on CreditWatch with negative implications. TAM SA: Inks Aeroplan Miles Deal With Air Canada ------------------------------------------------ TAM S.A. and Air Canada will start implementing a bilateral agreement that will allow members of TAM Fidelidade or Air Canada's Aeroplan programs to earn and redeem frequent flyer points/miles beginning April 28, 2009 on flights operated by either company. This initiative is part of a Memorandum of Understanding signed between TAM and Air Canada in June 2008, aiming to expand services offered to customers of both airlines. Paulo Castello Branco, TAM's Commercial and Planning Vice President, states that the agreement will bring immediate benefits to passengers of both airlines. "The partnership of both frequent flyer programs -- TAM Fidelidade and Aeroplan -- enhances our strategy of Excellence in Services, one of the three pillars that sustain TAM's operations, with the other two being Technical and Operational Excellence and Excellence in Management," says Castello Branco. A pioneer in the adoption of a Frequent Flyer Program for Brazilian airlines, TAM's Programa Fidelidade now has over 5.5 million members, with more than 7.4 million tickets distributed through the redemption of accrued points. "We are delighted to offer Air Canada's most loyal customers increased benefits by continuing to build our partnership with TAM, Brazil's leading airline," said Ben Smith, Air Canada's Executive Vice President and Chief Commercial Officer. "The opportunities for earning and redeeming reward travel have now grown exponentially across each of our networks. In addition, customers will enjoy Air Canada's new in-flight product offering that features lie-flat beds in our Executive First Suites on all international routes, including Toronto-Sao Paulo, as well as brand new cabins, seats and seatback entertainment for all passengers fleet wide." Air Canada operates daily Toronto-Sao Paulo non-stop flights using Boeing 767-300ER or 777-300ER aircraft in the northern hemisphere summer and winter seasons. With the expanded partnership, TAM passengers can use points earned in TAM Fidelidade on any domestic or international flight operated by Air Canada. Likewise, Air Canada's Aeroplan members can redeem their accrued miles for air travel in domestic and international flights operated by TAM. As reported in the Troubled Company Reporter – Latin America on October 9, 2008, TAM SA and Air Canada, Canada's largest airline and a founding member of the Star Alliance, have reached an operational agreement for codesharing and the integration of their frequent flier programs, TAM Fidelidade and Aeroplan (Air Canada's mileage plan) in Sao Paulo. The bilateral agreement will enable the two companies to expand services for customers traveling between Brazil and Canada, including more options for destinations in both countries and convenient connections to the main Brazilian and Canadian cities. The implementation of codesharing and the integration of the TAM Fidelidade and Aeroplan programs are scheduled for November, once the authorities in both countries have approved the partnership. About TAM S.A. Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * As of April 21, 2009, the company continues to carry Fitch Ratings' 'BB' Foreign and Local Currency Issuer Default Ratings. TELE NORTE: To Substitute Brasil Telecom Brand From May ------------------------------------------------------- Tele Norte Leste Participacoes S.A. (aka Oi) will start integrating Brasil Telecom (BRP) by substituting the name with Oi across the south and center-west of Brazil, Alastair Stewart of Dow Jones Newswires reports, citing local business daily Valor Economico. According to the report, the name changing process will start May 17 and be accompanied by the introduction of a series of Oi products in the Brasil Telecom regions. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes S.A. (aka Oi)-- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * The company continues to carry Standard and Poors's “BB+” long- term issuer credit rating. ========= C H I L E ========= SOCIEDAD DE INVERSIONES: High Leverage Cues S&P to Hold BB- Rating ------------------------------------------------------------------ On April 27, 2009, Standard & Poor's Ratings Services affirmed its 'BB-' ratings on Chile-based Sociedad de Inversiones Pampa Calichera S.A. The outlook is stable. "Our ratings on Pampa reflect the company's high leverage and expected volatile debt service coverage," said Standard & Poor's credit analyst Diego Ocampo. Debt service coverage varies according to the bottom line of partially owned Sociedad Quimica y Minera de Chile S.A. (BBB/Stable/--). S&P considers Pampa's and SQM's credit quality as intertwined. However, S&P rates these companies using neither a pure stand-alone approach nor a fully consolidated one, because Pampa's influence on SQM is significant enough to affect SQM's credit quality but does not give it full control over SQM's cash flows. The ratings also reflect the relatively long tenor of Pampa's debt, with no principal maturities until 2018, and SQM's strong, through variable, ability to generate cash flow. Pampa is a holding company whose sole activity is to hold shares of Chile-based chemical producer SQM. Following its acquisition of additional shares in 2008, Pampa has a direct and indirect 32% stake in SQM (from 27.94% as of Dec. 31, 2006). This is in line with the company's strategy to increase its stake to the 32% maximum that SQM's bylaws allow. Mr. Julio Ponce Lerou ultimately controls Pampa. SQM is an integrated producer of several specialty and industrial chemicals. SQM is the world's leading producer of specialty plant nutrients, iodine, and lithium carbonate, which together account for about 69% of consolidated revenues. =============== C O L O M B I A =============== BANCOLOMBIA: Inks New Partnership With Xoom.com ----------------------------------------------- Xoom Corporation said it has signed a partnership agreement with Grupo Bancolombia. The deal will provide the beneficiaries of Xoom's customers with faster access to money and more locations for receiving money in Colombia. The partnership expands Xoom's cash disbursement network to include Bancolombia branch locations and increases the speed of bank deposit service to just minutes. This partnership supports Xoom's comprehensive corporate initiative to serve the rapidly growing, online Latino consumer by providing an alternative money-transfer option that is fast, easy, convenient and low cost. This partnership with Bancolombia augments Xoom's existing relationships in Colombia with Bancomer Transfer Service (BTS), which provides cash disbursement at BBVA Colombia and Davivienda; and with MORE Money Transfers (MMT), which provides bank deposits to any bank in Colombia and cash disbursement through Pagos Internacionales. "We now have one of the most robust networks in all of Colombia that includes bank deposit to any bank account in Colombia, and in minutes to a Bancolombia account," said Eugenio Nigro, vice president of business development, Latin America, for Xoom. "With Bancolombia we are growing our cash pickup network to over 1,300 locations." "We at Bancolombia are proud to partner with Xoom as our first Internet-only money transfer company," added Myriam Botero, head of remittances for Bancolombia. "Xoom offers Colombians living abroad the convenience of sending remittances from the convenience of their home computer directly to a bank account at Bancolombia. If your family member does not have a bank account, they can pick up the money in cash at a Bancolombia branch." "We continue to make strides in providing a faster service at the lowest price. We now offer bank deposit and cash pickup at Bancolombia in minutes, and fees start at US$2.99," said Theresa Pasinosky, senior marketing manager, Latin America, for Xoom. "Plus, with Bancolombia as a partner, customers can feel more comfortable using Xoom to send money to Colombia." About Xoom.com Xoom.com -- http://www.xoom.com/colombia.-- allows individuals to send money from any Internet-enabled computer to family, friends and businesses. Xoom Corporation was founded in 2001 in San Francisco and is backed by leading venture firms Sequoia Capital, New Enterprise Associates and Fidelity Ventures. About Bancolombia S.A. Bancolombia S.A. is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * Based on Moody's Web site, the company continues to carry Ba2 foreign currency deposits rating and D financial strength rating. ================= G U A T E M A L A ================= * GUATEMALA: IMF Approves US$935 Million Stand-By Arrangement ------------------------------------------------------------- The Executive Board of the International Monetary Fund approved on April 22 an 18-month, SDR630.6 million Stand-By Arrangement for Guatemala. The Guatemalan authorities intend to treat the arrangement as precautionary, meaning that they do not intend to draw on the Fund’s resources unless the need arises. Guatemala has no immediate balance of payments need, and this program is part of a comprehensive preventive strategy to strengthen the country’s liquidity cushion in the face of an uncertain global environment, thereby enhancing the confidence of investors and market participants. Guatemala has made substantial progress in consolidating macroeconomic stability and implementing structural reforms. Adverse external conditions, however, are affecting economic activity and financial conditions. The Guatemalan authorities have taken a number of upfront measures to mitigate the impact of the external shock and preserve macroeconomic stability. The program will support the authorities’ policies and provide insurance against significant downside risks. Following the Executive Board discussion on Guatemala, Murilo Portugal, Deputy Managing Director and Acting Chair, issued the following statement: “Guatemala has a strong track record of prudent macroeconomic policies and structural reforms, which has helped to solidify the economy in recent years. As in many countries in the region, however, the global crisis has weakened economic conditions. A more prolonged global recession could increase downside risks to Guatemala’s outlook in 2009 and 2010. The authorities’ economic program, supported by a Stand-by Arrangement with the Fund, which the authorities plan to treat as precautionary, is an appropriate response to mitigate these risks and preserve macroeconomic and financial stability. “The authorities’ strategy entails a moderate fiscal expansion, continued efforts to anchor inflation at low levels in the context of the inflation-targeting framework and a flexible exchange rate regime, a further strengthening of the financial sector, and the mobilization of substantial external financing, including from the World Bank and the Inter-American Development Bank. This financing will boost the economy’s foreign currency liquidity buffers, and provide protection against any larger-than- anticipated shocks to the balance of payments. “The Bank of Guatemala is cautiously easing the monetary policy stance, after succeeding in controlling inflationary pressures that surged in 2008. The authorities plan to strengthen their inflation-targeting framework further, with a view to achieving a medium-term inflation target of 4 percent (+/- 1%). They are committed to maintaining a flexible exchange rate to facilitate the adjustment to external shocks. “The authorities’ fiscal program aims to provide some stimulus to the economy and protect the most vulnerable segment of the population. To achieve these goals, the 2009 budget envisages higher spending on labor-intensive public infrastructure projects and a strengthening of the social safety net. This countercyclical fiscal policy is possible given the low level of public debt, resulting from prudent fiscal policies pursued in the past. “Guatemala’s banking system is not exposed to risky structured financial products and has consolidated in recent years. The authorities are nonetheless taking measures to safeguard the liquidity and capital positions of banks through adequate liquidity-provision arrangements by the central bank and a gradual increase in provisioning requirements. At the same time, continuous on-site supervision has been put in place to monitor developments closely, anticipating risks and corrective actions, if needed. During the program period, the government plans to further strengthen financial sector policies by enhancing supervision and regulation and strengthening the framework for bank resolution,” Mr. Portugal said. Recent Economic Developments Real GDP growth is estimated to have slowed to 4 percent in 2008, from 6.3 percent in 2007. The decline has been driven by domestic demand, particularly investment, as external demand remained robust through most of 2008. Annual inflation continues to decline, from its peak of 14 percent in mid-2008, to 9.4 percent by year-end, and further to 5 percent in March 2009. The decline in inflation has become firmly entrenched: various measures of core inflation have declined consistently in the last quarter of 2008; inflation in services and nontradables has moderated substantially; and inflation expectations are declining rapidly. The external current account narrowed to 4 3/4 percent of GDP in 2008, already signaling lower domestic absorption, helped by the reversal of the negative terms-of-trade shock from commodity prices in the second half of last year. Since the last quarter of 2008, remittances have been declining, export growth has slowed and imports fell markedly. Private capital inflows have slowed, but nonetheless international reserves increased to US$5 billion by end-March 2009 due to recent disbursements of public external financing. The strength of the fiscal position was maintained during 2008, with the central government deficit declining to 1.7 percent of GDP, despite a real decline in tax revenue. The drop in revenue has become more severe in early 2009, due to cyclical and structural factors. Program Summary The Guatemalan authorities have been proactive in addressing the effects of the global crisis through a comprehensive policy response. Their strategy has four key elements: -- A moderate fiscal stimulus to support domestic demand, financed with substantial external resources from multilaterals to minimize crowding out the private sector; -- A monetary policy focused on consolidating the decline in inflation in the context of a flexible exchange-rate regime to facilitate economic adjustment; -- Strengthening of financial sector policies to increase the resilience of banks and enhance the banking sector safety net and resolution procedures; -- A refocusing of public expenditures towards strengthening social spending and labor-intensive public works. To complement those efforts, Guatemala is now aiming at building a higher external liquidity cushion to reduce risks from sudden changes in the current and capital account. Fund support is a key element of the strategy to face these risks, not only through the contingent financing provided under the proposed SBA, but also through the endorsement of the authorities’ program, which will help maintain investor confidence. The authorities’ social protection policy aims at enhancing current programs to offset the effect of the crisis on the most vulnerable segments of the population. Social spending will increase from 4.4 percent of GDP in 2008 to 5.0 percent of GDP in 2009. To address extreme poverty, emphasis will be placed on four flagship government programs. A key conditional cash transfer program initiated in 2008 will be expanded aiming at reaching 500,000 families in 2009, with a cost of 0.4 percent of GDP. =========== M E X I C O =========== JBS USA: Swine Flu in Mexico Won't Affect Moody's 'B1' Rating ------------------------------------------------------------- Moody's Investors Service announced that the outbreaks of swine influenza A (H1N1) in Mexico, the United States and Europe have not at this time had an impact on the B1 rating of the senior unsecured notes of JBS USA, LLC. The rating outlook remains stable. Moody's most recent rating action for JBS USA on April 14, 2009 assigned a B1 rating to the senior unsecured Notes due 2014 with a stable outlook. JBS USA, LLC is one of the world's leading beef and pork processing companies. Its largest business segments are domestic beef processing (70.1% of fiscal 2008 sales, pro forma for a full year of Smithfield beef), domestic pork processing (16.1%) and beef operations in Australia (13.8%). Reported sales for the fiscal year ended December 31, 2008 were approximately $12.4 billion. JBS USA, LLC is ultimately wholly owned by JBS S.A., the world's largest beef producer in terms of slaughter capacity, with consolidated global revenues of US$16.9 billion in fiscal 2008. ROYAL CARIBBEAN: Temporarily Suspends Port Calls in Mexico ---------------------------------------------------------- Royal Caribbean Cruises Ltd. is temporarily suspending its port calls in Mexico. The decision was made in an abundance of caution, and allows additional time to better understand the full impact of the Swine Flu. The suspension involves the company's Royal Caribbean International and Celebrity Cruises brands. Royal Caribbean International has four ships currently making regularly scheduled port call in Mexico - Enchantment of the Seas, Freedom of the Seas, Liberty of the Seas and Mariner of the Seas. Two additional Royal Caribbean International ships were scheduled to make upcoming Mexican port calls as they repositioned - Serenade of the Seas and Radiance of the Seas. Celebrity Cruises had one ship scheduled to make upcoming Mexico port calls as it repositions - Celebrity Infinity. All but one of the affected ships will either make alternative port calls or spend additional time at sea. Royal Caribbean International's Mariner of the Seas will sail a fully revised itinerary, visiting Canada and the U.S. West Coast. The temporary suspension takes effect immediately and will be in effect for the immediate future. It will be regularly reviewed in light of any Swine Flu developments. "Like our guests, we take all health matters seriously," said Dr. Art Diskin, chief medical officer for Royal Caribbean Cruises Ltd. "Although authorities have not raised specific concerns regarding the ports we visit in Mexico, we want to err on the side of caution. We're taking proactive steps onboard our ships to help ensure the health and well-being of our guests and crew members, and this is just one more step in that process. We apologize for the disruption these changes will cause our guests, and we appreciate their understanding." The company has been closely monitoring Swine Flu developments and is utilizing its Influenza Prevention and Response Plans. That plan was developed by its office of Medical and Public Health in coordination with the U.S. Centers for Disease Control and Prevention and other health experts. The plan is based on three pillars: Preparedness and Communication; Surveillance and Detection; and Response and Containment. About Royal Caribbean Headquartered in Miami, Royal Caribbean Cruises Ltd. (NYSE: RCL) -- http://www.royalcaribbean.com/-- is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises and Pullmantur Cruises, Azamara Cruises and CDF Croisieres de France. The company has a combined total of 35 ships in service and seven under construction. It also offers unique land- tour vacations in Alaska, Australia, China, Canada, Europe, Latin America and New Zealand. The company has operations in Puerto Rico and Brazil * * * As reported in the Troubled Company Reporter on March 30, 2009, Standard & Poor's Rating Services lowered its corporate credit rating on Miami, Florida-based Royal Caribbean Cruises Ltd. to 'BB-' from 'BB'. The issue-level ratings on the company's debt were also lowered by one notch. At the same time, these ratings were removed from CreditWatch, where they were placed with negative implications Jan. 30, 2009. The rating outlook is negative. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: Five Senior Officials Quit Posts ---------------------------------------------- Oscar Ramjeet at Caribbean Net News reports five CL Financial senior officials have tendered their resignations from the group on news the government is appointing its own directors to CL Financial and its subsidiaries. The report says Michael Carballo, CL Financial group financial director, has confirmed: --- Gita Sakal has resigned as general counsel and corporate secretary, effective April 20; --- Dr Bhoe Tewarie, an independent director, and Dr Rampersad Motilal, the group's energy representative, have resigned, although Dr Motilal remains as the chief executive of Methanol Holdings, 49 per cent of which is owned by CLICO; and --- Bosworth Monck, an English investment banker, and CL Financial deputy chairman, Sylvia Baldini-Duprey, wife of CL Financial executive chairman, Lawrence Duprey, have resigned as well. According to Caribbean Net News, CL Financial companies experienced severe liquidity problems including CLICO, which could not meet pension and insurance claims, and CIB, which could not repay depositors like the National Gas Company (NGC). 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. ============= U R U G U A Y ============= FEDERACION URUGUAYA: Fitch Affirms 'B' Issuer Default Rating ------------------------------------------------------------ Fitch Ratings has affirmed Federacion Uruguaya de Cooperativas de Ahorro y Credito's Issuer Default Ratings and outstanding credit ratings: -- Foreign currency IDR at 'B'; -- local currency IDR at 'B'; -- National long-term rating at 'BBB-(uy)'; -- Support at '5'; -- Support floor at 'NF'. The Rating Outlook is Stable. FUCAC's ratings are based on its improved performance over the past few years, as well as its good capitalization and liquidity position. The ratings also take into account its niche franchise and small position within the Uruguayan financial system. FUCAC's performance was solid in 2008 and outperformed that of the Uruguayan banking system and cooperatives. In 2008, FUCAC consolidated its positive trend and posted profits for the fifth year in a row, which Fitch views positively. The international financial crisis will hit the Uruguayan market, and for that reason FUCAC's management expects declines in activities. However, Fitch considers that FUCAC will continue growing in spite of the crisis. Asset quality has historically been somewhat weak due to FUCAC's focus on the low-income segment of the population. However, the loan loss reserve coverage was so far bigger than past due loans (loans 60 days or more overdue) and more than 100% of non- performing loans. During 2007, FUCAC decided to abandon its regulatory status as a Financial Intermediary due to its heavy regulatory requirements and operate as a 'Credit Manager Company'. As a result, it had to pay back its deposits. New funding is based financial instruments, capital and bank loans. FUCAC's balance sheet is well-matched in terms of currency and tenors and FUCAC has maintained good levels of liquidity. Because of the new funding structure the cooperative could operate with lower levels of liquidity. Capitalization is solid, with an equity/assets ratio of 49.4% at end-September 2008. BANCO SURINVEST: Fitch Affirms Issuer Default Rating at 'B' ----------------------------------------------------------- Fitch Ratings has affirmed Banco Surinvest's ratings: -- Foreign and local currency Issuer Default Rating at 'B'; -- National long-term rating at 'BBB(uy)'; -- Support rating at '5'. The Rating Outlook is Stable. Surinvest's ratings reflect the low risk profile of its activities and its good level of liquidity and capitalization. In addition, the bank was acquired by a Swiss bank (Banque Heritage, rated 'BBB-/F3') in May 2007, and Fitch considers the new shareholder to have had a positive effect on Surinvest's business strategy, which is now primarily focused on wealth management and corporate services. The rating also reflects the significant challenges of Surinvest's chosen strategy and its small market share in the financial system. Net 2008 results reflected losses, mainly due to extraordinary bond portfolio losses (the bank's portfolio included a Lehman Brother's bond). Performance of core business activities experienced strong growth, buoyed by foreign trade operations. Wealth management's activities underwent difficulties in 2008 due to the international financial crisis and strong losses in the financial markets. As a result, Surinvest couldn't meet its goals in terms of assets under management, particularly because of reduced customer numbers and portfolio asset losses. Due to Surinvest's new business strategy, the bank needs less funding than previously required. Its main funding source is short-term deposits by non-residents. Surinvest's capitalization is good and better than that of its peer group, with an equity/assets ratio of 20.5% in 2008 compared with the Uruguayan private-sector average of 8.9%. However, Fitch expects this ratio to fall as soon as new business starts. ================= V E N E Z U E L A ================= PDVSA: No Wage Increase for Workers This Year, Minister Says ------------------------------------------------------------ Reuters reports Venezuela's energy minister said the government will not offer annual raises to energy workers this year due to lower oil revenues. The report relates in a press release, energy minister Rafael Ramirez said "this year there will be no salary increase or bonus for energy workers" and asked company employees to "defend the industry." According to the report, Venezuela's oil unions are insisting their compensation be adjusted for the country's rampant inflation that closed 2008 at 32 percent. Tumbling price of oil has deeply affected even state-owned Petroleos de Venezuela S.A., which has built up debts of at least $8 billion with service providers, Reuters says. In recent months PDVSA has halted some contracts with oil service companies, leaving around 5,000 indirect contract employees out of work, Reuters cited union officials as saying. About PDVSA Petroleos de Venezuela S.A. -- 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 continues to carry a 'BB-' local currency issuer rating from Moody's Ratings. The company also continues to carry Standard and Poor's BB- Issuer Credit Ratings. PEQUIVEN: Cuts Executive Pay by 20% to Avoid Job Layoffs -------------------------------------------------------- State-owned chemical company Petroquimica de Venezuela SA (“Pequiven”) will reduce executive salaries by 20% and freeze the pay and benefits of the rest of its workers starting May 1 to avoid job cuts, Steven Bodzin of Bloomberg News reports. According to the report, the company seeks to cut costs 40% while spending USD$1.39 billion on new factories to make olefins and polychlorinated vinyl among other projects. Headquartered in Valencia, Petroquimica de Venezuela SA is the maker of so-called Petrocasas, pre-fabricated homes made of petroleum-based products. *********** 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 * * *