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/raid1/www/Hosts/bankrupt/TCRLA_Public/090520.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, May 20, 2009, Vol. 10, No. 98 Headlines A N T I G U A & B A R B U D A STANFORD INT'L BANK: Owner Awaits Criminal Charges STANFORD INT'L: U.S. Judge Allows Receivers to File Bankruptcy A R G E N T I N A DELSAT GROUP: Proofs of Claim Verification Deadline is July 17 DEMONT SRL: Proofs of Claim Verification Deadline is July 17 SOUTH LINK: Proofs of Claim Verification Deadline is July 17 SUR DEVELOPMENTS: Proofs of Claim Verification Deadline is Aug. 7 B E L I Z E * BELIZE: IMF Concludes 2009 Article IV Consultation B R A Z I L BANCO PROSPER: Moody's Downgrades Currency Deposit Ratings to 'B3' GOL LINHAS: To Issue BRL400 Million in Domestic Bonds SA FABRICA: Moody's Confirms Senior Unsecured Rating at 'B2' UBS AG: BTG Investments to Pay Brazil Unit's Former Partners C A Y M A N I S L A N D S BOSTON LIMITED: Placed Under Voluntary Wind-Up CAIRNCASTLE LIMITED: Placed Under Voluntary Wind-Up CONSCAST LIMITED: Placed Under Voluntary Wind-Up CREOLE LIMITED: Placed Under Voluntary Wind-Up FORTUNE DRAGON: Placed Under Voluntary Wind-Up GRAND ISLAND: Investment Manager Charged in Failure of 4 Funds MALAVISTA INVESTMENTS: Placed Under Voluntary Wind-Up PANDA CAPITAL: Placed Under Voluntary Wind-Up PANTON HOLDINGS: Placed Under Voluntary Wind-Up WEASEL LIMITED: Placed Under Voluntary Wind-Up WINTERTIME LIMITED: Placed Under Voluntary Wind-Up C O L O M B I A ECOPETROL SA: First Quarter Profit Drops 30% to COP1.61 Trillion ECOPETROL SA: To Operate and Manage Oleoducto Central E C U A D O R PETROECUADOR: Gets No Bidders in Seized Perenco Oil Auction G U Y A N A * GUYANA: IMF Concludes 2008 Article IV Consultation J A M A I C A * JAMAICA: Pursues Talks W/ Shareholders to Save 3 Bauxite Plants M E X I C O CEMEX SAB: Would Face Fine in Price Probe, Regulator Says P U E R T O R I C O WILSON ALVAREZ LUNA: Case Summary & 20 Largest Unsecured Creditors S T K I T T S & N E V I S * ST. KITTS & NEVIS: IMF OKs US$3.4 Million Emergency Assistance S T V I N C E N T & T H E G R E N A D I N E S * ST. VINCENT & THE GRENADINES: IMF OKs US$5.7-Mln Disbursement T R I N I D A D & T O B A G O CL FINANCIAL: CLICO “Now Back on Its Feet”, Finance Minister Says V E N E Z U E L A PDVSA: Inks LNG Terminal Construction Agreement With Enarsa * VENEZUELA: Takes Control of Cargill Inc.'s Pasta Plant V I R G I N I S L A N D S WEAVERING CAPITAL: SFO Arrests Two Men in BVI Hedge Fund Probe - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L BANK: Owner Awaits Criminal Charges -------------------------------------------------- Stanford International Bank Limited (SIBL) owner Robert Allen Stanford is impatiently waiting for criminal charges to be filed againts him, after regulators closed his business operations three months ago, on his alleged involvement in a fraud case, Agence France Press reports. The report says Mr. Stanford got fed up with the long wait and even tried turning himself in to federal marshals in a publicity stunt earlier this month. According to the report, legal experts say the delay is likely due to behind-the-scenes machinations to get his lieutenants to trade information for amnesty. As reported in the Troubled Company Reporter-Latin America on May 14, 2009, Assistant Attorney General of the Criminal Division Lanny A. Breuer and acting U.S. Attorney for the Southern District of Texas Tim Johnson disclosed that a federal grand jury in Houston returned a two-count indictment charging former Stanford Financial Group (SFG) Chief Investment Officer Laura Pendergest- Holt with conspiring to obstruct a U.S. Securities and Exchange Commission (SEC) proceeding investigating SFG, as well as a substantive count of obstructing the SEC proceeding. AFP says the indictment is widely seen as a scare tactic to get her to cooperate with federal prosecutors in gathering evidence against her former boss. AFP relates Jacob Frenkel -- a former federal prosecutor who now directs the white-collar crime practice at Shulman, Rogers, Gandal, Pordy & Ecker in Maryland -- said that if Ms. Pendergest-Holt won't cooperate with the regulators they will charge her with fraud or convict her on the narrower charges and then she would be stripped of her Fifth Amendment right against self-incrimination and could be forced to testify in a trial against Mr. Stanford. Meawhile, AFP notes former SIBL Chief Financial Officer James Davis' lawyer, David Finn, said his client has been helping authorities locate and access secret Swiss bank accounts, according to his lawyer David Finn. "He has met several times with Department of Justice and SEC officials," Mr. Finn told AFP in an interview. "He's told them the good, the bad and the ugly." AFP notes Mr. Stanford has denied all allegations against him. 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. According to a TCR-LA April 8 report, citing Bloomberg News, 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. STANFORD INT'L: U.S. Judge Allows Receivers to File Bankruptcy -------------------------------------------------------------- U.S. District Judge David Godbey in Dallas has granted the request of Stanford International Bank Limited (SIBL)'s receivers to pursue relief under Chapter 15 of the U.S. Bankruptcy Code, Bloomberg News reports. “The court finds the Antiguan receivers have shown good cause to be granted leave” to file their petition, Mr. Godbey wrote in a May 15 order, without saying whether that petition would be granted, the report relates. Caribbean360.com recalls the Antiguan liquidators, in April, asked the judge to allow them to amend, modify and/or vacate an order that prevents them filing the Chapter 15 proceeding. According to Caribbean360.com, the attorneys for the Antiguan and U.S. receivers as well as the court-appointed examiner representing investors' interest must discuss how to proceed and have been ordered by the judge to submit a joint status report to him by next Friday, May 29. The TCR-Latin America, citing Caribbean360.com, reported May 1 that Stanford Financial Group court-appointed receiver Ralph Janvey, in his report filed with the U.S. District Court for the Northern District of Texas, said he has no confidence in the courts in Antigua and Barbuda to properly carry out Stanford International Bank Limited (SIBL)'s liquidation. The report relates Mr. Janvey said the American court system should be allowed to deal with the matter. As reported in the Troubled Company Reporter-Latin America on April 22, 2009, Caribbean360.com said Mr. Janvey is challenging SIBL's liquidation. Nigel Hamilton-Smith and Peter Wastell, client partners at Vantis Business Recovery Services, were appointed as joint liquidators for SIBL on April 15, 2009, by an Order of the High Court of Antigua and Barbuda. Stanford Trust Company Limited meanwhile remains in receivership and the receivers continue with their investigations. The liquidation proceedings have been commenced following the receivership of SIBL, during which time the receivers concluded that it had become clear that the bank's assets were significantly less than its liabilities. Messrs. Hamilton-Smith and Wastell were previously appointed by the Antiguan Financial Services Regulatory Commission as receivers for SIBL. "The Antiguan liquidators essentially request that the U.S. Court cede to the Antiguan court system control over the marshaling, liquidation, claims adjudication and distribution process. That, in the receiver's view, would be unwise and detrimental to claimants, as the Antiguan court system lacks experience in the administration and winding up of a business of the size and scope of the Stanford family of companies," Mr. Janvey said in his report obtained by Caribbean360.com. "Further, the Antiguan liquidators have liquidation authority over only SIBL, which is just one of the more than 100 Stanford companies involved in what was an integral - and allegedly fraudulent – operation," he added. According to Caribbean360.com, Mr. Janvey spoke of looking for opportunities in which cooperation with the Antiguan receivers is possible and reasonably likely to benefit the receivership estate. The report related Mr. Janvey insisted that although SIBL's headquarters was in Antigua, all of its financial operations, including CD sales, were controlled and managed from Sir Allen's offices in the US and he should therefore have control of its assets. 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. * * * 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. According to a TCR-LA April 8 report, citing Bloomberg News, 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. ================= A R G E N T I N A ================= DELSAT GROUP: Proofs of Claim Verification Deadline is July 17 -------------------------------------------------------------- The court-appointed trustee for Delsat Group S.A.'s reorganization proceedings, will be verifying creditors' proofs of claim until July 17, 2009. DEMONT SRL: Proofs of Claim Verification Deadline is July 17 ------------------------------------------------------------ The court-appointed trustee for Demont S.R.L.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until July 17, 2009. The trustee will present the validated claims in court as individual reports on September 14, 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 28, 2009. SOUTH LINK: Proofs of Claim Verification Deadline is July 17 ------------------------------------------------------------- The court-appointed trustee for South Link Logistics S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until July 17, 2009. SUR DEVELOPMENTS: Proofs of Claim Verification Deadline is Aug. 7 ----------------------------------------------------------------- The court-appointed trustee for Sur Developments S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until August 7, 2009. The trustee will present the validated claims in court as individual reports on September 21, 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 November 3, 2009. =========== B E L I Z E =========== * BELIZE: IMF Concludes 2009 Article IV Consultation ---------------------------------------------------- IMF Executive Board Concludes 2009 Article IV Consultation with Belize. Background Belize, a small open economy with a narrow export base, remains vulnerable to exogenous shocks. Since 2005, growth in the traditional sectors of the economy has decelerated, reflecting in part the impact of severe weather-related shocks during 2007–08. Starting in 2006, petroleum extraction has been a major factor contributing to growth, accounting for approximately 5 percent of GDP in 2008. A debt restructuring agreement in February 2007 provided a substantial reduction in the net present value of the debt owed to private creditors. Over the past year, a renewed commitment to prudent macroeconomic policies and to improving governance has elicited increased support from official creditors. Macroeconomic performance was broadly favorable during 2008. Despite losses from two tropical storms, real GDP increased by about 3 percent. Domestic price inflation, which has been low historically, rose to nearly 10 percent by mid-2008, driven largely by food and fuel prices. By February 2009, inflation declined to 1 ½ percent. The current account deficit widened sharply to 10 percent of GDP in 2008, reflecting a surge in FDI- related imports and higher prices of imported food and fuel. Gross international reserves of the Central Bank of Belize rose to US$166 million at end-2008, the equivalent of two months of imports. The accounts of the central government are estimated to have registered an overall surplus of 1 1/4 percent of GDP in FY 2008/09 (April–March). However, the underlying fiscal position has weakened, as recurrent expenditure has been growing rapidly at a time of rising dependence on volatile revenue sources, such as petroleum and grants. Belize’s financial system appears so far largely insulated from the global downturn. However, commercial bank credit to the private sector expanded rapidly in recent years, reaching the equivalent of 70 percent of GDP, and the nonperforming loan ratio doubled in 2008. Belize’s economy is projected to decelerate in 2009 due to the global downturn. Real GDP growth is projected at 1 percent, reflecting the impact of declining tourism, remittances, and FDI inflows. Twelve-month inflation is projected to ease to 2 1/2 percent by year-end. The external current account deficit would contract significantly, as imports are projected to decline more than exports, mirroring an expected fall in private capital inflows. In FY 2009/10, the overall balance of the central government is projected to shift from a surplus to a deficit of 1 3/4 percent of GDP, on account of a budgeted increase in recurrent spending, while tax revenue is projected to increase at a slower pace. Executive Board Assessment Executive Directors welcomed the broadly favorable economic performance in 2008, and commended the authorities’ commitment to pursue sound macroeconomic and financial sector policies to manage near-term risks and reinvigorate growth potential over the medium term. Against the backdrop of the global downturn, they noted that Belize, as a small, open economy with a fixed exchange rate system, a low level of reserves, and a high debt level, remains vulnerable. Looking ahead, Directors welcomed the authorities’ aim to pursue a medium-term economic strategy centered on sustained fiscal consolidation, while strengthening their international reserve position and oversight of the financial sector. Directors noted that the exchange rate peg has served Belize well, providing an important anchor for macroeconomic policies. They also noted the staff’s assessment that the exchange rate appears to be broadly in line with fundamentals. Directors emphasized that strong macroeconomic policies are necessary to underpin this exchange rate regime and help raise international reserves to a comfortable level. They also encouraged the authorities to access additional external financing to contain the risk of a sharper- than-anticipated external deterioration. Directors agreed that a more cautious fiscal stance would help protect Belize’s external position and enhance public debt sustainability by lowering debt ratios over the medium term. They encouraged the authorities to restrain the growth in public expenditure, including through wage moderation, while boosting tax revenue aimed at raising the primary surplus and helping reduce the budget’s reliance on volatile revenue sources. At the same time, they considered as important protecting outlays for reconstruction and other investment, given their positive supply- side effects. Directors underscored the need to ensure the medium-term financial viability of key public sector programs to help secure fiscal sustainability. They considered that the Social Security Board and the pension plan for civil servants should be reformed to put them on a sound financial footing. Directors agreed that the proposed extension of the National Health Insurance scheme should await adequate funding and that the mandate of the newly reactivated Development Finance Corporation needs to be clarified and financing identified to cover its operating costs. They considered that petroleum revenues should remain integrated in the budget, with related information published and subject to regular audits to ensure transparency. Noting the increase in non-performing loans, Directors encouraged the authorities to further strengthen oversight of the financial system. They underscored the importance of developing contingency plans for the financial system and devising a framework for the provision of liquidity. Directors welcomed the strengthening of the Anti-Money Laundering legislation, and recommended that adequate resources be provided for the Financial Intelligence Unit to allow its implementation. Directors endorsed the authorities’ focus on a development strategy to raise Belize’s medium-term growth potential, which should draw upon private sector as well as donor financing. They underscored that the public investment program should be consistent with the authorities’ prudent fiscal strategy. Directors commended the authorities’ commitment to good governance, the rule of law, and contract enforcement, which are important for improving the investment climate. * * * According to Moody's Website, the country continues to carry a B3 currency ratings with stable outlook. =========== B R A Z I L =========== BANCO PROSPER: Moody's Downgrades Currency Deposit Ratings to 'B3' ------------------------------------------------------------------ Moody's Investors Service downgraded the long-term local and foreign currency deposit ratings of Banco Prosper S.A. to B3 from B1. At the same time, Moody's lowered Prosper's long- and short- term Brazilian national scale ratings to Ba2.br/BR-4 from Baa2.br/ BR-3. Moody's affirmed Prosper's bank financial strength rating at E+ and short-term local and foreign currency deposit ratings at Not Prime. The outlook on all ratings is now stable. Moody's also withdrew Prosper's ratings for business reasons. The rating action reflects Moody's view of Prosper's much weakened profitability and capital base, which have been hurt by mark-to- market adjustments in its portfolio of equities held as long-term investments. The charges taken against the equity portfolio were responsible for the bank's unaudited net losses reported in 2008 as well as for its lower capital. This together with the weaker performance of the bank overall were the main drivers of the downgrade of the bank's baseline credit assessment to B3 from B1, said Moody's. In Moody's view, the replenishment of Prosper's capital base through earnings retention represents a major challenge for management, particularly in a scenario of reduced economic activity. The bank's need for additional resources, which could occur in the form of further capital injections from shareholders, supports the decision to downgrade the bank's BCA. Moody's withdrew Prosper's ratings for business reasons. The bank has no rated foreign currency debt outstanding. Please refer to Moody's Withdrawal Policy on moodys.com. Moody's last rating action on Prosper was on September 19, 2008, when Moody's Investors Service downgraded Prosper's bank financial strength rating to E+ from D-, with a stable outlook. At the same time, Moody's lowered Prosper's long-term local and foreign currency deposit ratings to B1 from Ba3 and Brazilian national scale ratings to Baa2.br/BR-3 from A3.br/BR-2. All deposit ratings were placed on negative outlook. Banco Prosper is headquartered in Rio de Janeiro, Brazil. As of December 2008, the bank had total assets of approximately R$642 million (US$274 million). These ratings of Banco Prosper S.A. were downgraded and withdrawn: -- Long-term global local currency deposit rating: to B3 from B1, with stable outlook -- Long-term foreign currency deposit rating: to B3 from B1, with stable outlook -- Long-term Brazilian national scale deposit rating: to Ba2.br from Baa2.br, with stable outlook -- Short-term Brazilian national scale deposit rating: to BR-4 from BR-3 These ratings of Banco Prosper were affirmed and withdrawn: -- Bank financial strength rating: E+, with stable outlook -- Long-term global local currency deposit rating: Not Prime -- Short-term foreign currency deposit rating: Not Prime GOL LINHAS: To Issue BRL400 Million in Domestic Bonds ----------------------------------------------------- GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. is preparing to issue BRL400 million in domestic bonds, LatinFrance reports. The report relates the proceeds will complement the BRL204 million to be raised through a share rights offering to controlling holders, which is almost 100% subscribed and should be wrapped up by the end of the month. According to the report, the company said the debentures are expected to have a tenor of 2 years with a 6-month grace period. The issue still requires regulatory approval, the report notes. About GOL Linhas Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) -- http://www.voegol.com.br-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As of May 19, 2009, the company continues to carry Moody's B1 LT Corp Family ratings. The company also continues to carry Fitch's B+ Issuer Credit Ratings and B Senior Unsecured Rating and Preferred Stock ratings. SA FABRICA: Moody's Confirms Senior Unsecured Rating at 'B2' ------------------------------------------------------------ Moody's has confirmed its B2 senior unsecured and corporate family ratings for S.A. Fábrica de Produtos Alimentícios Vigor. The rating outlook is stable. This action concludes the review process initiated on December 17, 2008. The confirmation of Vigor's B2 ratings is largely based on Moody's decision to continue to base its ratings on the stand-alone credit quality of Vigor at this time, without incorporating explicit support from its parent company Bertin S.A. (unrated), which is 72% owned by Bracol (B1/neg). As of February 10, 2009, Bertin, owned 99.4% of Vigor's total capital and the two companies have moved towards near full integration of the operations. However, neither Bertin nor Bracol explicitly guarantees Vigor's debt and are therefore not legally obligated to service Vigor's debt obligations in case of distress. Moody's note, however, that there are cross default provisions between Vigor and Bertin as long as Vigor is considered a significant subsidiary of Bertin. In order for Vigor to be considered Bertin's significant subsidiary, it has to satisfy any of the three following conditions for Bertin's last completed fiscal year and on a consolidated basis: a) Bertin's or its subsidiaries' investments in and advances to the subsidiary exceed 10% of Bertin's total assets (3.0% in 2008), b) Bertin's and its other subsidiaries' proportionate share of the total assets (after intercompany eliminations) of the subsidiary exceeds 10% of Bertin's total assets (6.4% in 2008), or c) Bertin's and its other subsidiaries' equity in the income from continuing operations before income taxes, extraordinary items and cumulative effect of a change in accounting principle of the subsidiary exceeds 10% of Bertin's such income (10.2% in 2008). Vigor is therefore currently considered a significant subsidiary due to its income from continuing operations before taxes representing slightly over 10% of Bertin's such income. This level, however, would likely fall below the significant subsidiary threshold for income from continuing operations before taxes if Bertin grows in the beef and leather segments faster than its dairy business (Vigor). Moody's note, however, that Vigor's rating could change based on rating changes for Bracol (B1/neg) and/or an assignment of a rating to Bertin and subsequent changes to that rating. As of year-end 2008, Vigor's total adjusted debt amounted to BRL325 million, of which 23.4% or BRL76 million was due in the short-term. The company's cash and cash equivalent balance of BRL29 million would therefore be insufficient to cover its short- term debt, although Moody's note that approximately BRL19 million is related to federal lending programs for milk purchases (NPR and EGF), BRL3.3 million is with BNDES and BRL33.8 are composed of working capital loans that are normally rolled over. Although Bracol (B1/neg) does not guarantee Vigor's debt, Moody's note that it had BRL2.6 billion of cash and cash equivalents at the end of 2008 and thus currently has the ability to provide liquidity support to Vigor if necessary. Vigor's B2 ratings could come under upward pressure if the company is able to demonstrate overall gain in market share in key product segments and sustainable improvement of margins, together with sustainable EBITA / Gross Interest Expense above 1.5 times (1.4x in Q4'08) and Debt to EBITDA below 4.0 times (5.4x in 2008). Vigor's rating could also be upgraded if Bertin fully incorporates Vigor. On the other hand, Vigor's rating or outlook would come under negative pressure if the company's operating performance deteriorates significantly, leading EBITA / Gross Interest Expense to fall below 1.0 times or if Total Debt to EBITDA increases to above 6.0x on a last twelve month basis for two consecutive quarters. Vigor's ratings would also come under negative pressure if the company's continued access to uncommitted bank credit lines come into question. All above ratios are calculated according to Moody's standard definitions and analytic adjustments. These ratings were confirmed with a stable outlook: -- Corporate family rating: B2 -- US$100 million senior unsecured notes due 2017: B2 Moody's last rating action on Vigor was on December 17th, 2008, when its ratings were placed under review for possible upgrade. The Vigor Group, based in São Paulo, Brazil, is 99.4% owned by Bertin and is comprised of S.A. Fabrica de Produtos Alimenticios Vigor and its subsidiaries Dan Vigor (a 50/50 joint venture with Denmark's Arla Foods) and Leco, a manufacturer of dairy and vegetable oil products. The group produces, markets, and sells a diverse range of products including: milk, yogurts, dairy beverages, cheeses, deserts, butter, margarine and mayonnaises. UBS AG: BTG Investments to Pay Brazil Unit's Former Partners ------------------------------------------------------------ Andre Esteves’s BTG Investments, which agreed to purchase UBS AG’s Brazilian operations, may soon make an offer to pay debt owed to the unit’s former partners, Flavia Bohone of Bloomberg News reports, citing an investor. “BTG bought UBS Pactual and now former partners are waiting for an offer,” Sergio Cutolo, one of the ex-partners told Bloomberg News in an interview. “Nobody has contacted me about this subject yet but the information I have is that an offer may be made in the following days.” As reported in the Troubled Company Reporter-Latin America on April 21, 2009, UBS AG has agreed to sell its Brazilian financial services business, UBS Pactual, for approximately US$2.5 billion to BTG Investments, headed by Andre Esteves. In a statement, UBS said the sale of the Brazilian business is consistent with UBS's policy to continue to reduce its risk profile, strengthen its balance sheet and sharpen its business focus. UBS expects no disruption to its other businesses as a result of the transaction. The transaction will take place at a premium to book value. It will increase Tier 1 capital by CHF1.3 billion, decrease risk weighted assets by CHF3.0 billion, and reduce total assets by CHF6.3 billion. It will strengthen UBS's BIS Tier 1 ratio by approximately 60 basis points. About UBS AG Based in Zurich, Switzerland, UBS AG (VTX:UBSN) -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. ========================== C A Y M A N I S L A N D S ========================== BOSTON LIMITED: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Boston Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 CAIRNCASTLE LIMITED: Placed Under Voluntary Wind-Up --------------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Cairncastle Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 CONSCAST LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------ At an extraordinary general meeting held on April 16, 2009, the shareholders of Conscast Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 CREOLE LIMITED: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Creole Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 FORTUNE DRAGON: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Fortune Dragon Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 GRAND ISLAND: Investment Manager Charged in Failure of 4 Funds -------------------------------------------------------------- Cayman-based Jamaican investment manager Robert Christopher Girvan was charged with forgery, obtaining a money transfer by deception and producing a false document, in connection with the collapse of four Cayman-based hedge funds, Jamaica Observer reports, citing a statement by the Royal Cayman Islands Police Services. The report relates officials said three of the funds -- the Grand Island Commodity Trading Fund I, Grand Island Commodity Trading Fund II and the Grand Island Income Fund -- were registered by the Cayman Islands Monetary Authority in 2006; while the fourth, the Grand Island Master Fund, was not registered with regulators in the British territory. According to the report, police did not provide details on Mr. Girvan's alleged offences or his involvement in the collapse of the funds, which are being liquidated. The report recalls the funds were closed in June 2008 after authorities found undisclosed "irregularities" in trading activities. The Observer says court-appointed liquidator, David Walker, an advisory partner of PricewaterhouseCoopers, said the funds were relatively small, with total investments of between US$20 million to US$30 million. MALAVISTA INVESTMENTS: Placed Under Voluntary Wind-Up ----------------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Malavista Investments Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 PANDA CAPITAL: Placed Under Voluntary Wind-Up --------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Panda Capital Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 PANTON HOLDINGS: Placed Under Voluntary Wind-Up ----------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Panton Holdings Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 WEASEL LIMITED: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Weasel Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 WINTERTIME LIMITED: Placed Under Voluntary Wind-Up -------------------------------------------------- At an extraordinary general meeting held on April 16, 2009, the shareholders of Wintertime Limited passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by May 18, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Ingrid McIntosh P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Facsimile: (345) 949-0360 =============== C O L O M B I A =============== ECOPETROL SA: First Quarter Profit Drops 30% to COP1.61 Trillion ---------------------------------------------------------------- Ecopetrol S.A.'s first quarter net income dropped 30% to COP1.61 trillion from COP2.29 trillion in the same period last year, on declining crude prices, Steven Bodzin of Bloomberg News reports. The report relates the company's first quarter sales fell 28% to COP5.24 trillion. According to the report, the company's oil and natural gas output rose 6.3% to 457,700 barrels of oil equivalent a day, largely because of increased output of heavy crude. The company’s profit margin, the report says, tumbled to 34% from 58% a year earlier as costs of sales rose 17%. About Ecopetrol S.A. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. (BVC) under the symbol ECOPETROL. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined-products. * * * As of May 19, 2009, the company continues to carry Fitch Ratings' BB+ foreign currency issuer default ratings. ECOPETROL SA: To Operate and Manage Oleoducto Central ----------------------------------------------------- Ecopetrol S.A. said it will now be responsible for the operation and management of Oleoducto Central S.A. (Ocensa), the main pipeline of Colombia that connects Cusiana and Cupiagua fields in the Eastern Plains region with the port of Covenas on the Caribbean Sea, by means of an operating contract entered into between Ecopetrol and Ocensa, for a 15-year term. The decision follows the agreement announced by ECOPETROL in March 2009 to acquire Enbridge's share in Ocensa, which increased Ecopetrol's holding from 35.5% to 60%. Since its start-up in March 1995, Ocensa's operation was managed by Enbridge Inc., through its subsidiary Cit Colombiana S.A. (Citcol). In this new stage, Ecopetrol said it will try to benefit from synergies with other pipelines, transporting the growing production of heavy crude from the Eastern Plains region, promoting new business opportunities to increase throughput in the system and to ensure a reliable, safe service. About Ecopetrol S.A. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. (BVC) under the symbol ECOPETROL. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined-products. * * * As reported by the Troubled Company Reporter-Latin America on November 12, 2008, Fitch Ratings affirmed Ecopetrol S.A.'s foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. The Rating Outlook is Stable. ============= E C U A D O R ============= PETROECUADOR: Gets No Bidders in Seized Perenco Oil Auction ----------------------------------------------------------- State-run Petroecuador got no offers in an auction of Oriente and Napo crude seized from French oil company Perenco SA, to repay millions of dollars in debt stemming from a controversial tax, Alonso Soto of Reuters reports. "The (debt) judge will evaluate the situation and issue a resolution in accordance to the law," Petroecuador said in a statement obtained by the news agency. However, the report relates Petroecuador said it will continue with the oil auctions until Perenco's debt is paid in full. The TCR-Latin America, citing Bloomberg News, reported May 14 that Petroecuador moved ahead with an auction of 1.4 million barrels of oil seized Perenco SA even after the International Centre for the Settlement of Investment Disputes ordered it to halt the sale. The report related Petroecuador spokesman Byron Galarza said: “There will be no changes to the schedule of the sale unless the attorney general intervenes.” As reported in the Troubled Company Reporter-Latin America on April 22, 2009, Reuters said Petroecuador plans to auction 1 million barrels in seized crude from Perenco. Ecuador Oil Minister Derlis Palacios told Reuters in an interview that the country will continue to auction Perenco's seized crude until the French oil company repays US$350 million in late taxes. The government expects to receive around US$40 million from the upcoming sale of Perenco's seized crude, he added. About Petroecuador Headquartered in Quito, Ecuador, Petroecuador -- http://www.petroecuador.com.ec-- is an international oil company owned by the Ecuador government. It produces crude petroleum and natural gas. * * * In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. =========== G U Y A N A =========== * GUYANA: IMF Concludes 2008 Article IV Consultation ---------------------------------------------------- International Monetary Fund (IMF)'s executive board concluded the Article IV consultation with Guyana. Background Despite external shocks and social pressures, macroeconomic stability was preserved in 2008. Growth decelerated to about 3 percent owing to a sharp shortfall in sugar production, but end- 2008 inflation declined to 6.4 percent (6.8 percent target). The fiscal deficit widened to 7.9 percent of GDP (6 percent target) due to measures adopted in early 2008 to reduce the impact of high fuel prices, most of which have since been eliminated. So far, the financial system has been relatively unaffected by the global turmoil. Higher growth is projected for 2009, with a recovery in sugar output expected to offset a slowdown in the other sectors of the economy. Lower oil import prices would compensate a decline in commodity export prices in 2009. Still, Guyana faces other significant challenges, including lower worker remittances in 2009 and preferential sugar export prices in the years ahead. Downside risks include a lower-than-projected increase in sugar production and a more protracted than currently envisaged global slowdown. In 2008, the external current account widened by almost 3 percent of GDP, to close to 21 percent of GDP, but was fully financed by concessional loans, grants, and FDI. The wider deficit was mainly explained by lower sugar exports together with higher fuel prices and imports of capital goods. The underlying current account deficit of about 10½ percent of GDP is consistent with the estimated medium-term equilibrium position. Guyana’s real effective exchange rate is broadly in equilibrium. Following debt relief, the external debt-to-GDP ratio declined from over 100 percent in 2006 to about 70 percent by end-2008. Significant progress has been made in the area of fiscal reforms and the VAT is now well established. The Guyana Revenue Authority introduced a Total Revenue Integrated Processing System allowing for better monitoring of taxes and risk profiling. Financial sector reforms include measures to improve compliance with Basle Core Principles and the preparation of legislation facilitating the creation of a credit bureau, on money transfer agencies, and on anti-money laundering and combating the financing of terrorism. The recently completed Berbice Bridge—a major public-private project—bodes well for increased private sector participation in the economy. Executive Board Assessment Executive Directors noted that, by implementing prudent fiscal and monetary policies, the Guyanese authorities had maintained macroeconomic stability in 2008 despite external shocks and social pressures. Sustaining these policies will be critical to reduce vulnerabilities associated with commodity price volatility and possible spillovers from the global crisis. Directors commended the authorities’ commitment to further entrench macroeconomic stability, strengthen the financial system, and implement structural reforms. Directors observed that direct spillovers from the global financial crisis on the banking system have so far been limited. The banks remain well capitalized and profitable, and the financial system is sound. Directors supported heightened financial supervision to limit potential contagion, and continued monitoring of the still high level of non-performing loans. The progress being made on financial sector reforms and on legislation to prevent money laundering and the financing of terrorism is welcome. Directors noted that the authorities had reduced petroleum product excise taxes temporarily in 2008 in order to limit the pass- through of higher international fuel prices to consumers, effectively diffusing social pressures while helping to contain inflation. They commended the authorities for reinstating the excise taxes in recent months as international oil prices have abated, to protect the fiscal position. Going forward, the authorities were encouraged to focus on targeted support to the most vulnerable. Directors welcomed the authorities’ commitment to sustain the fiscal consolidation effort. They agreed that a more gradual deficit reduction than previously envisaged is justified in the context of the global slowdown. While the authorities’ plan to return to the target laid out in the medium-term fiscal framework by 2012 was welcomed, a few Directors considered that a faster move toward convergence would reduce risks to fiscal sustainability. The identification of contingency measures in case of a shortfall in revenue or more difficult access to financing would help protect priority spending and avoid reductions in growth-enhancing capital expenditures. Directors welcomed the progress made in the area of fiscal reforms, including the successful implementation of the VAT. They cautioned against a further expansion of the list of zero-rated VAT items, and a weakening of the rules-based system for granting tax exemptions. Directors commended the authorities for the reduction in the rate of inflation. They supported continued vigilance and readiness to adjust monetary policy to keep inflation low, as needed. Directors noted that the exchange rate appears broadly aligned with fundamentals, and that the current exchange rate policy has served Guyana well. In this context, a number of Directors stressed that a stable exchange rate is critical to the authorities’ goal of maintaining macroeconomic stability. Directors welcomed the plans to reduce the external current account deficit gradually over the medium term, through growth in nontraditional exports and the development of petroleum and hydropower resources. They noted that external financing and inflows of foreign direct investment related to development projects could be vulnerable to the global financial turmoil, at least in the short term. Directors encouraged further structural reforms to sustain growth and make progress on poverty alleviation over the medium term. Achieving the authorities’ output target in the key sugar sector will require steadfast implementation of the sector’s modernization plan. Directors also encouraged efforts to address the high cost of energy, to enhance private sector participation in the economy, and to prepare an appropriate legal and fiscal framework for future oil revenues drawing on international experience. Directors welcomed the upcoming finalization of the Poverty Reduction Strategy Paper to underpin the government’s medium-term plans for poverty alleviation and achieving the Millennium Development Goals. They noted the importance of ensuring consistency between the medium-term macroeconomic framework and the PRSP and of establishing an effective system to monitor PRSP implementation. ============= J A M A I C A ============= * JAMAICA: Pursues Talks W/ Shareholders to Save 3 Bauxite Plants ----------------------------------------------------------------- The Jamaican government is pursuing talks with overseas stakeholders, in a bid to determine the fate of three bauxite plants whose operations have been scaled down, Caribbean Net News reports. The report recalls activities at the plants -- West Indies Alumina Company's (WINDALCO) operations in Ewarton, St Catherine and Kirkvine, Manchester; and Alumina Partners (ALPART) in Nain, St Elizabeth -- were scaled down earlier this year by the operators, due to the reduction in the international demand for alumina. According to the report, Prime Minister Bruce Golding said Jamaica's Ambassador to Moscow, Joy Wheeler, met with the Russian Vice Minister with responsibility for the bauxite/alumina sector, regarding AC Rusal and WINDALCO; and he spoke with the President of Hydro, Eivind Reiten, regarding ALPART's future. The report notes the Government is also addressing developments with AC Rusal, which holds an overall 55% stake in the local bauxite industry, which the Prime Minister confirmed is in "deep, deep" trouble. Caribbean Net News notes approximately 1.400 employees of WINDALCO and about 700 from ALPART have been affected by the scaled down operations at the three plants. * * * According to Moody's Web site, the country continues to hold a B1 foreign currency rating and a Ba2 local currency rating. =========== M E X I C O =========== CEMEX SAB: Would Face Fine in Price Probe, Regulator Says --------------------------------------------------------- Cemex S.A.B de C.V would face a “very low” fine -- with a maximimum penalty of MXP20 million (US$1.5 million) -- if an investigation concludes it colluded with competitors on prices, Crayton Harrison of Bloomberg reports, citing Eduardo Perez Motta, Mexico Antitrust Federal Competition Commission president. The report relates Mr. Motta said the investigation may be completed by the end of this year, assuming the companies use their legal rights to appeal The report recalls Mr. Motta said the commission has been asking Congress for the power to impose harsher sanctions to deter anticompetitive practices. According to the report, Mr. Motta said the antitrust agency has asked Congress for the power to levy fines of up to 10% of a company’s annual sales. The existing maximum, depending on the violation, is about MXP70 million, he added. The commission’s investigation is groundless and Cemex hasn’t violated the law, Gerardo de la Torre, a Cemex spokesman for the company, said in an e-mailed statement obtained by the news agency. About Cemex S.A.B Cemex S.A.B de C.V is the third-largest cement producer in the world based on production capacity of approximately 97 million metric tons and operates in more than 50 countries. The company is also the global leader in the ready mix concrete market with sales of over 80.5 million cubic meters, and an important global player in the aggregates business with sales of 222.7 million tons. In 2008, Cemex generated US$4.370 billion of EBITDA on US$21.8 billion of sales revenues. * * * As of May 19, 2009, the company continues to carry Fitch's B LT issuer credit ratings and B+ Currency LT Debt ratings. The company also continues to carry S&P's B- LT Issuer Credit ratings. ==================== P U E R T O R I C O ==================== WILSON ALVAREZ LUNA: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Wilson Alvarez Luna fdba Nephesh Wood Recycling, Inc fdba Don Quijote Pizza fdba Papa Yaca Box 1040 Cidra, PR 00739 Bankruptcy Case No.: 09-03965 Chapter 11 Petition Date: May 15, 2009 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Victor Gratacos Diaz, Esq. P O Box 7571 Caguas, PR 00726 Tel: (787) 746-4772 Email: vgratacd@coqui.net Total Assets: $3,217,680 Total Debts: $2,714,991 A full-text copy of Mr. Luna's petition, including his list of 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/prb09-03965.pdf The petition was signed by Mr. Luna. ============================ S T K I T T S & N E V I S ============================ * ST. KITTS & NEVIS: IMF OKs US$3.4 Million Emergency Assistance ---------------------------------------------------------------- International Monetary Fund's executive board approved a request for SDR2.225 million (about US$3.4 million) in Emergency Natural Disaster Assistance for St. Kitts and Nevis. St. Kitts and Nevis was hit by Hurricane Omar in October 2008. The damage caused by the hurricane has greatly aggravated the economic slowdown, with a significant impact on unemployment, fiscal revenues, and tourism receipts, particularly on the island of Nevis. Fund financing will help offset the balance of payments impact of the hurricane, estimated at US$19 million (about 3 1/2 percent of GDP). The IMF provides emergency assistance to help member countries with urgent balance of payments financing needs in the wake of natural disasters or armed conflicts. Following the Executive Board discussion, Mr. Murilo Portugal, Deputy Managing Director and Acting Chair, issued this statement: “The damage caused by Hurricane Omar has resulted in substantial loss of employment and great hardship to St. Kitts and Nevis. In particular, Nevis has suffered the temporary closure of its largest tourism resort. The adverse balance of payments impact of the hurricane has been compounded by the global recession and the collapse of the Trinidad and Tobago-based CL Financial Group. “The authorities are responding with a comprehensive economic program to deal with the effects of the natural disaster within the context of the difficult economic situation facing the country. They aim at strengthening public finances to reduce public debt ratios, while undertaking structural reforms. These efforts will be supported by Fund emergency assistance for natural disasters. “The government, with the assistance of its development partners, is developing a growth and poverty reduction strategy to guide its medium-term reform agenda. In addition to strengthening fiscal policies and debt management, the main priorities for reform are enhancing the investment climate for private sector development, including through privatization and sale of public land and assets, and strengthening oversight of the financial sector. “While the global downturn and the heavy debt burden of St.Kitts and Nevis are likely to weigh heavily on near-term growth, the authorities’ implementation of prudent policies and their reform agenda, together with support from the international community, should help St. Kitts and Nevis recover from the setbacks caused by the hurricane and place the economy on a path of sustainable, strong growth,” Mr. Portugal stated. ================================================= S T V I N C E N T & T H E G R E N A D I N E S ================================================= * ST. VINCENT & THE GRENADINES: IMF OKs US$5.7-Mln Disbursement --------------------------------------------------------------- The Executive Board of the International Monetary Fund approved an SDR3.735 million (about US$5.7 million) disbursement for St. Vincent and the Grenadines under the Exogenous Shock Facility (ESF). The global economic slowdown has caused a significant decline in tourism to the country, which has worsened the balance of payments. At the same time, a decline in Foreign Direct Investment (FDI) and construction activity has led to a sharp output slowdown in 2008. Growth is expected to decline further in 2009, reflecting declining tourism receipts, FDI, and remittances. The country’s authorities are requesting the rapid-access component of the ESF to help the economy adjust to the tourism and FDI shock. The Executive Board’s decision will enable the St. Vincent and the Grenadines to draw an amount equivalent to SDR 3.735 million (about US$5.7 million) from the IMF immediately. Following the Executive Board discussion, Mr. Murilo Portugal, Deputy Managing Director and Acting Chair, issued this statement: “St. Vincent and the Grenadines has been impacted severely by the global slowdown, leading to a marked decline in real GDP growth due to sharply weakened activities in the tourism and construction sectors. The balance of payments has been negatively affected by declines in tourism receipts, foreign direct investment and remittances. The St. Vincent and the Grenadines’ authorities are implementing appropriate measures to mitigate the impact of the external shock and enhance the economy’s growth potential, while ensuring fiscal and debt sustainability. Fund support under the Exogenous Shocks Facility will help to alleviate the balance of payments financing burden of the shock. “The authorities have made good progress in fiscal consolidation as well as on social and poverty reduction goals. They are demonstrating their commitment to maintain the integrity and stability of the VAT and pursuing ongoing tax reform, including the recent establishment of a Tax Reform Commission. Given the lower revenues due to the external shock, continued spending restraint through a prudent public sector wage policy and prioritization of capital expenditure will be necessary. “The government is constructing a new international airport to further develop the tourism industry and raise medium-term growth potential. Sustained fiscal consolidation and additional concessional financing should accommodate the airport project without compromising debt sustainability. A more flexible timetable for implementation of the project, to the extent technically feasible, would help alleviate a possible financing bottleneck in 2009, stemming from the tight liquidity environment,” Mr. Portugal said. * * * According to Moody's Website the country continues to carry a Ba1 currency ratings with stable outlook. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: CLICO “Now Back on Its Feet”, Finance Minister Says ----------------------------------------------------------------- Lawrence Cyril Duprey-founded insurance company, Colonial Life Insurance Company Insurance (Trinidad) Ltd (CLICO), a unit of CL Financial Limited, is now “back on its feet” following the government's intervention to save the company, Oscar Ramjeet of Caribbean Net News reports, citing Trinidad and Tobago Finance Minister Karen Nunez-Tesheira. The report relates according to Trinidad Express, Ms. Nunez-Tesheira said the government was certain that CLICO, with its new business model, would continue to grow from strength to strength. According to Caribbean Net News, government-appointed chairman of CLICO Euric Bobb said the company was at present working on restoring stakeholder confidence, which was in some cases eroded when their money worries were made public. "Liquidity, if truth be told, insolvency is a signal of a really fatal end for most companies, but in the three-and-a-half months since we started the rebuilding of CLICO, the company has been diligently working throughout the length and breadth of this country to restore the confidence of the thousands of its policy holders and of the national community as a whole," the report quoted Mr. Bobb as saying. Caribbean Net News says it was also indicated that the plans for payment of the former Caroni workers' pension money were not finalised and they would receive their money as part of the national senior citizens grant. 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. ================= V E N E Z U E L A ================= PDVSA: Inks LNG Terminal Construction Agreement With Enarsa ----------------------------------------------------------- Venezuela-run Petroleos de Venezuela and Argentina-state owned Enarsa will construct an onshore LNG regasification terminal in Argentina, according to a report posted at Petroleumworld.com, citing Venezuelan President Hugo Chavez. According to the report, a likely location for the terminal is in Bahia Blanca, where US-based Excelerate Energy is unloading LNG cargoes from Trinidad and Tobago at a floating regasification terminal. The leaders of the two countries, the report notes, are also set to meet in Buenos Aires to discuss and sign a series of topics, on energy, construction, and agriculture. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As of May 19, 2009, Petroleos de Venezuela continues to carry a 'B1' local currency issuer rating from Moody's Ratings. The company also continues to carry Standard and Poor's BB- Issuer Credit Ratings. * VENEZUELA: Takes Control of Cargill Inc.'s Pasta Plant -------------------------------------------------------- Daniel Cancel of Bloomberg News reports that Deputy Food Minister Rafael Coronado said Venezuelan officials took control of a pasta plant owned by U.S. foodmaker Cargill Inc. and will remain in the factory for 90 days to enforce production quotas on price- controlled items. The report relates Mr. Coronado said Cargill was devoting 59% of its production at the plant to products not under price controls, while government regulations require that 70% of output be dedicated to regulated products. “The company isn’t complying with production regulations, and we’ve declared the plant of public interest,” the report quoted Mr. Coronado as saying. “Our job is to assure food security and to enforce production of regulated goods.” Reuters recalls in March, Chavez ordered the nationalization of Cargill's rice mill because it produced a type of rice not included in price controls. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. ========================== V I R G I N I S L A N D S ========================== WEAVERING CAPITAL: SFO Arrests Two Men in BVI Hedge Fund Probe -------------------------------------------------------------- The Serious Fraud Office on Friday conducted searches on two residential properties (one in Kent, the other in Surrey) assisted by the City of London Police, in connection with its investigation into an alleged fraud involving the recently collapsed hedge fund, Weavering Capital. Two men, aged 43 and 45, were arrested and have been taken to a police station for questioning. Weavering Capital (UK) Limited is an English incorporated investment management firm, which went into administration on March 19, 2009, whose primary function was to act as investment advisor to a Cayman Islands incorporated hedge fund, Weavering Macro Fixed Income Fund Limited ("the Macro Fund"). Liquidators were appointed over the Macro Fund on March 19, 2009. The Macro Fund was understood to have funds under management of around US$639 million in late 2008. The investigation is currently focused on certain interest rate swap transactions between the Macro Fund and a company registered in the British Virgin Islands, Weavering Capital Fund Limited, which appears to be a related third party, and which inflated the apparent Net Asset Value of the Macro Fund. *********** 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 * * *