/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090522.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, May 22, 2009, Vol. 10, No. 100 Headlines A R G E N T I N A ACEITES DE LA FRONTERA: Asks for Preventive Contest Opening AGUA MARINA: Asks for Preventive Contest Opening CUVERA AGROPECUARIA: To Submit Audited Report on November 4 DAROMAR SA: Trustee Verifying Proofs of Claim Until June 19 ESTABLECIMIENTOS: Verifying Proofs of Claim Until July 13 GAOMA SA: Asks for Preventive Contest Opening NEW NORTH: Cease to Make Payments PRECEDER SA: Trustee Verifying Proofs of Claim Until July 14 SOUTH LINK: Proofs of Claim Verification Deadline Is July 1 XYN SHI: Asks for Preventive Contest Opening B E R M U D A JE FUND: Creditors' Proofs of Debt Due on June 3 JE FUND: Members' Final Meeting Set for June 25 MAN MAC: Creditors' Proofs of Debt Due on June 3 MAN MAC: Members' Final Meeting Set for June 25 SAPPHIRE OVERSEAS: Creditors' Proofs of Debt Due on June 3 SAPPHIRE OVERSEAS: Members' Final Meeting Set for June 23 B R A Z I L BNDES: OKs R$1.4-Bln Long Term Financing Package to MPX Energia BNDES: To Finance 85% of Aerolineas Argentinas's Jet Purchase COSAN SA: Sells Aviation Fuel Unit for US$75 Million EMBRAER: Aerolineas Argentinas to Buy 20 Jets for About US$700MM GERDAU AMERISTEEL: Striking Workers Reject Company's Final Offer PERDIGAO SA: Pension Funds May Boost Stake in Sadia-Merger Firm C A Y M A N I S L A N D S AGA STRATEGIC: Shareholders' Final Meeting Set for June 12 ALCHEMY ADVISORS: Shareholders' Final Meeting Set for June 9 ALCHEMY HOLDING: Shareholders' Final Meeting Set for June 9 BERNI HOLDINGS: Shareholders' Final Meeting Set for June 17 BWGLOBAL – GLOBAL: Shareholders' Final Meeting Set for June 12 CASTANET LIMITED: Members Receive Wind-Up Report CLSP OVERSEAS: Final Meeting Slated for June 2 CELESTE EUROPEAN: Final Meeting Slated for June 11 CSERE ATRIUM: Shareholders' Final Meeting Set for June 12 CSERE DUMFRIES: Shareholders' Final Meeting Set for June 12 CSERE MILTON: Shareholders' Final Meeting Set for June 12 DIAMOND CRUISE: Shareholders' Final Meeting Set for June 8 EUROPEAN TELECOM: Shareholders' Final Meeting Set for June 15 GGI: Members to Receive Wind-Up Report on June 3 PFW II: Shareholders' Final Meeting Set for June 12 PRISMA SELECT: Shareholders' Final Meeting Set for June 12 C H I L E VESPUCIO NORTE: S&P Downgrades Underlying Rating to 'BB' D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Power Firms Lift Lien on Distributors J A M A I C A BANK OF JAMAICA: BITU Seeks 7% Wage Adjustment for Bank Employees BERGER PAINTS: Cuts Operating Cost by 28% as Part of Restructuring M E X I C O HIPOTECARIA SU: S&P Affirms 'BB-' Global Corporate Credit Rating * MEXICO: Gross Domestic Product Drops 8.2% in First Quarter 2009 P A R A G U A Y * PARAGUAY: IMF Concludes 2009 Article IV Consultation P E R U DOE RUN PERU: Government May Close Smelter Next Year V E N E Z U E L A * VENEZUELA: Economy Grew 0.3% From Last Year PDVSA: Reaches Two Framework Agreements With CNPC V I R G I N I S L A N D S WEAVERING MACRO: ISE Keeps Mum on Hedge Fund Investigation X X X X X X X X BRITISH AIRWAYS: To Launch Two New Caribbean Routes - - - - - ================= A R G E N T I N A ================= ACEITES DE LA FRONTERA: Asks for Preventive Contest Opening ----------------------------------------------------------- Aceites de la Frontera SA asked for the opening of preventive contest. The company stopped making its payment on April 25, 2009. AGUA MARINA: Asks for Preventive Contest Opening ------------------------------------------------ Agua Marina SA asked for the opening of preventive contest. The company stopped making its payment on April 14, 2009. CUVERA AGROPECUARIA: To Submit Audited Report on November 4 ----------------------------------------------------------- Cuvera Agropecuaria S.A. will submit on November 4, 2009, its general report that contains an audit of the company's accounting and banking records. DAROMAR SA: Trustee Verifying Proofs of Claim Until June 19 ----------------------------------------------------------- The court-appointed trustee for Daromar S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until June 19, 2009. The trustee will present the validated claims in court as individual reports on August 10, 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 September 22, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on February 23, 2010. ESTABLECIMIENTOS: Verifying Proofs of Claim Until July 13 --------------------------------------------------------- The court-appointed trustee for Establecimientos Metalurgicos Ando S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until July 13, 2009. The trustee will present the validated claims in court as individual reports on September 8, 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 20, 2009. GAOMA SA: Asks for Preventive Contest Opening --------------------------------------------- Gaoma SA asked for the opening of preventive contest. NEW NORTH: Cease to Make Payments --------------------------------- New North SA stopped making its payments on April 2007. PRECEDER SA: Trustee Verifying Proofs of Claim Until July 14 ------------------------------------------------------------ The court-appointed trustee for Preceder S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until July 14, 2009. SOUTH LINK: Proofs of Claim Verification Deadline Is July 1 ----------------------------------------------------------- Isabel Ramirez, the court-appointed trustee for South Link Logistics SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until July 1, 2009. Ms. Ramirez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 13 in Buenos Aires, with the assistance of Clerk No. 25, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Isabel Ramirez Tte. Gral. Juan D. Peron 2082 Buenos Aires, Argentina XYN SHI: Asks for Preventive Contest Opening -------------------------------------------- Xyn Shi Ji SA asked for the opening of preventive contest. The company stopped making its payment on April 3, 2009 ============= B E R M U D A ============= JE FUND: Creditors' Proofs of Debt Due on June 3 ------------------------------------------------ The creditors of JE Fund Ltd are required to file their proofs of debt by June 3, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 19, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda JE FUND: Members' Final Meeting Set for June 25 ----------------------------------------------- The members of JE Fund Ltd will hold their final general meeting on June 25, 2009, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on May 19, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda MAN MAC: Creditors' Proofs of Debt Due on June 3 ------------------------------------------------ The creditors of Man MAC Choisir 13A Limited are required to file their proofs of debt by June 3, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 14, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda MAN MAC: Members' Final Meeting Set for June 25 ----------------------------------------------- The members of Man MAC Choisir 13A Limited will hold their final general meeting on June 25, 2009, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on May 14, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda SAPPHIRE OVERSEAS: Creditors' Proofs of Debt Due on June 3 ---------------------------------------------------------- The creditors of Sapphire Overseas Insurance Company Ltd. are required to file their proofs of debt by June 3, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 14, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda SAPPHIRE OVERSEAS: Members' Final Meeting Set for June 23 --------------------------------------------------------- The members of Sapphire Overseas Insurance Company Ltd. will hold their final general meeting on June 23, 2009, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on May 14, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda =========== B R A Z I L =========== BNDES: OKs R$1.4-Bln Long Term Financing Package to MPX Energia --------------------------------------------------------------- MPX Energia S.A. disclosed that Banco Nacional de Desenvolvimento Economico e Social SA (BNDES) provided a long term financing package for the Pecem I TPP project. Pecem I is a 50/50 partnership between MPX and EDP Energias do Brasil S.A. The financing package, a direct loan on a project finance structure, was approved after a long and strict due diligence process, coordinated by specialized consultants appointed by creditors. The due diligence has covered in details all technical, environmental, social and financial aspects of both projects. The final approval of the financing package not only reinforces the feasibility and importance of these enterprises, but also shows that the Company is able to design robust and assertive strategies for risk mitigation. BNDES' loan, amounting to R$1.4 billion will have a 17-year tenure, with a 14-year amortization period, and a grace period for interest and principal until July 2012. During construction, interest will be capitalized. In addition to BNDES' financing package, IDB has approved a direct loan ("A loan") of US$147 million and onlending ("B loan") of US$180 million. Such credit lines are in final stage of contracting. Considering the total required capex and financing packages from IDB and BNDES, the project will have a capital structure of approximately 75% debt/25% equity. Pecem I is part of the Brazilian Government's Growth Acceleration Program and represents an important step towards the diversification of the country's energy matrix, increasing the reliability of electricity supply. The plant will use clean-coal technology, complying with the most rigorous legal requirements of the Brazilian law as well as international agencies. So as to foster Brazil's sustainable development, MPX will go beyond legal requirements and will implement a vast plan for greenhouse gas reduction. Moreover, MPX intends to allocate a significant part of its R&D budget to the development of carbon sequestration technologies. Porto do Pecem I TPP Porto do Pecem I TPP project consists in a 720 MW coal-fired thermal plant, in the State of Ceara. Pecem I has already contracted 615 average MW in the regulated market, securing annual fixed revenues of R$467.5 million (as of March 2009). Construction works started in July 2008 and according to the implementation schedule, commercial operation should start before January 2012, when the commitment to deliver energy to the regulated market begins. About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As of May 18, 2009, Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. The rating was assigned in August 2007. BNDES: To Finance 85% of Aerolineas Argentinas's Jet Purchase ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA (BNDES) will finance 85% of Argentine-controlled Aerolineas Argentinas SA's planned purchase of 20 E-190 jets from aircraft maker Empresa Brasileira de Aeronautica SA (Embraer), Bloomberg News reports, citing a BNDES spokeswoman. The report relates the agreement is valued at about US$700 million. According to the report, a Brazilian foreign-trade fund will insure the loan. Bloomberg News says Austral Lineas Aereas, a sister airline of Aerolineas, will receive the first plane in the first half of 2010. About Embraer Empresa Brasileira de Aeronautica SA ("Embraer") –- http://www.embraer.com -- develops and produces aircraft for the Brazilian Air Force into a public company that produces aircraft for commercial aviation, executive jet and defense and government purposes. The company is a manufacturer of commercial aircraft. The company has developed a line of executive jets based on one of its regional jet platforms and launched executive jets in the very light, light, and ultra-large categories, the Phenom 100, Phenom 300 and Lineage 1000, respectively. In July 2008, the company announced the acquisition of the remaining 40% interest in ELEB -- Embraer Liebherr Equipamentos do Brasil S.A., held by Liebherr Aerospace S.A.S. ELEB's name will be changed to ELEB Equipamentos S.A. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2009, Bloomberg News said Embraer will lay off around 4,200 workers, which represents 20% of its 21,362 employees, and reduced its 2009 revenue forecast by 13% due to the global recession. About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As of May 18, 2009, Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. The rating was assigned in August 2007. COSAN SA: Sells Aviation Fuel Unit for US$75 Million ---------------------------------------------------- Brazil-based Cosan S.A. Industria e Comercio sold its aviation fuel unit to Shell Brasil, a unit of Royal Dutch Shell, for US$75 million, LatinFrance reports. According to the report, citing Dealogic, the deal was privately negotiated. LatinFrance recalls Cosan SA got hold of the unit when it acquired Esso’s operations in Brazil for US$950 million in April last year. Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e Comercio -- http://www.cosan.com.br/en/ir/-- produces sugar and ethanol. The company cultivates harvests and processes sugarcane, the main raw material for sugar and ethanol manufacturing. With 17 manufacturing units and two port terminals in the city of Santos, Cosan says it is currently the largest individual group in the world in terms of sugarcane byproducts manufacturing. With capacity to grind more than 40 million tonnes of sugarcane, the group represents 12% of overall production in the mid-southern region of the country. * * * As of May 21, 2009, the company continues to carry Moody's Ba3 LT Corp Family rating and Ba3 Senior Unsecured Debt rating. The company also continues to carry Standard and Poor's BB-Issuer Credit ratings. EMBRAER: Aerolineas Argentinas to Buy 20 Jets for About US$700MM ---------------------------------------------------------------- Argentine-controlled Aerolineas Argentinas SA will buy 20 jets from aircraft maker Empresa Brasileira de Aeronautica SA (Embraer), a deal value at about US$700 million, Bloomberg News reports. Aerolineas Argentinas will purchase E-190 jets, which can carry as many as 96 passengers, according to an e- mailed statement obtained by the news agency. According to the report, Austral Lineas Aereas, a sister airline of Aerolineas, will receive the first plane in the first half of 2010. Banco Nacional de Desenvolvimento Economico e Social SA (BNDES) will finance 85% of the purchase and a Brazilian foreign-trade fund will insure the loan, a BNDES spokeswoman told Bloomberg News in a telephone interview. About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As of May 18, 2009, Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. The rating was assigned in August 2007. About Embraer Empresa Brasileira de Aeronautica SA ("Embraer") –- http://www.embraer.com -- develops and produces aircraft for the Brazilian Air Force into a public company that produces aircraft for commercial aviation, executive jet and defense and government purposes. The company is a manufacturer of commercial aircraft. The company has developed a line of executive jets based on one of its regional jet platforms and launched executive jets in the very light, light, and ultra-large categories, the Phenom 100, Phenom 300 and Lineage 1000, respectively. In July 2008, the company announced the acquisition of the remaining 40% interest in ELEB -- Embraer Liebherr Equipamentos do Brasil S.A., held by Liebherr Aerospace S.A.S. ELEB's name will be changed to ELEB Equipamentos S.A. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2009, Bloomberg News said Embraer will lay off around 4,200 workers, which represents 20% of its 21,362 employees, and reduced its 2009 revenue forecast by 13% due to the global recession. GERDAU AMERISTEEL: Striking Workers Reject Company's Final Offer ---------------------------------------------------------------- Florida-based Gerdau Ameristeel Corporation's workers, who are on strike since May 14, chose to refuse the company's final offer, CNW Group reports. The report relates the company insisted on permanent changes to the Collective Agreement whereby there would be a two-tiered set of employees: * two-tiered wages (for the same work), * two-tiered vacations (for the same seniority); and * two-tiered pensions (for same years of service). According to the report, Gerdau Ameristeel also insisted on permanent concessions to job descriptions, wage settlements and job placement. The TCR-Latin America, citing a report posted at 570.news.com, reported May 21 that 200 workers of Gerdau Ameristeel, a unit of Brazil-based Gerdau S.A., are continuing with their strike. The report recalled the company's workers walked off the job after the company said it would pay new hires less and reduce their benefits in comparison to existing employees. According to the report, the company said its proposal is aimed at helping the mill weather the recession and call it fair. "These are hard times for companies and workers. However, these hard times should not be an excuse to bust unions or permanently discriminate against hard-working, productive workers," CNW Group News quoted USW District Director Wayne Fraser, as saying. CNW Group News relates President of USW Local 8918, Trevor Scurrah, said: "We believe that the Cambridge mill is profitable, even in these times. There aren't many steel works across the continent that can say that. The company's decision to attack our collective agreement has more to do with political expedience and union busting than cost management and plant viability." 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. 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. * * * As reported in the Troubled Company Reporter on April 20, 2009, Standard & Poor's Ratings Services placed its ratings, including its 'BB+' corporate credit rating, on Tampa, Florida-based Gerdau Ameristeel Corp. on CreditWatch with negative implications. PERDIGAO SA: Pension Funds May Boost Stake in Sadia-Merger Firm --------------------------------------------------------------- Speculations are emerging that pension funds may boost their stakes in BRF Brasil Foods SA, the resulting company from the Perdigao SA and Sadia SA merger, Bloomberg News reports. As reported in the Troubled Company Repoter-Latin America on May 21, 2009, Bloomberg News said Perdigao agreed to take over rival Sadia SA through a share-swap transaction. The report related the new company plans to sell BRL4 billion (US$1.94 billion) shares. Demand from pension funds to raise their stakes in the new company may help push up the price it will get in a share offering this year, equity analyst Renato Prado told Bloomberg News in an interview. “The interest from the funds is a guarantee that there will be strong demand for the shares,” the report quoted Mr. Prado as saying. “It will be a very relevant operation.” According to Bloomberg News, O Estado de S. Paulo reported that Previ, the retirement fund for Banco do Brasil SA, and other state-company funds plan to spend as much as BRL2 billion in Brasil Foods’ offering to raise their stakes. Bloomberg News relates Estado de S. Paulo said that they plan to raise their combined ownership of Brasil Foods to 35% from 26%. About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As of May 18, 2009, Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. The rating was assigned in August 2007. About Sadia S.A. Headquartered in Sao Paulo, Brazil, Sadia S. A. -– http://www.sadia.com–- is the largest slaughterer and distributor of poultry and pork products in Brazil, as well as the leading refrigerated and frozen protein products company. For the last twelve months ending on September 30, 2008, Sadia had net revenues of BRL10.2 billion (USD 6 billion) and EBITDA of BRL1.3 billion (USD 748 million) with 46% of revenues derived from exports to over 100 countries. * * * As reported in the Troubled Company Reporter-Latin America on May 21, 2009, Standard & Poor's Ratings Services placed its S&P placed its 'B' long-term corporate credit rating on Brazilian food producer Sadia S.A. on CreditWatch with positive implications. About Perdigao SA Headquartered in Sao Paulo, Brazil, Perdigao SA is one of the largest food processors in Latin America, with a focus on poultry, pork, beef, milk and processed products, including dairy. With revenues of BRL 10.3 billion for the last twelve months ending on September 30th, 2008, Perdigao is one of the leaders in the domestic market and exports over 40% of its sales to over 100 countries and 850 customers around the world. * * * As reported in the Troubled Company Reporter-Latin America on May 21, 2009, Standard & Poor's Ratings Services placed its 'BB+' corporate credit rating on Brazil-based food producer Perdigao S.A. on CreditWatch with negative implications. ========================== C A Y M A N I S L A N D S ========================== AGA STRATEGIC: Shareholders' Final Meeting Set for June 12 ---------------------------------------------------------- The shareholders of Aga Strategic Realty International, Ltd. will hold their final meeting on June 12, 2009, at 10:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands ALCHEMY ADVISORS: Shareholders' Final Meeting Set for June 9 ------------------------------------------------------------ The shareholders of Alchemy Advisors Limited will hold their final meeting on June 9, 2009, at 3:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers c/o Laura Del Fuoco Direct Tel: 345 814 4568 Direct Fax: 345 814 8268 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9001, Cayman Islands e-mail:laura.delfuoco@walkersglobal.com ALCHEMY HOLDING: Shareholders' Final Meeting Set for June 9 ----------------------------------------------------------- The shareholders of Alchemy Holding Company will hold their final meeting on June 9, 2009, at 4:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers c/o Laura Del Fuoco Direct Tel: 345 814 4568 Direct Fax: 345 814 8268 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9001, Cayman Islands e-mail:laura.delfuoco@walkersglobal.com BERNI HOLDINGS: Shareholders' Final Meeting Set for June 17 ----------------------------------------------------------- The shareholders of Berni Holdings (Cayman) Limited will hold their final meeting on June 17, 2009, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier Bryant Terry Telephone: (345) 815 1803 Facsimile: (345) 949 1986 BWGLOBAL – GLOBAL: Shareholders' Final Meeting Set for June 12 -------------------------------------------------------------- The shareholders of Bwglobal - Global Currency Strategy Fund, Ltd. will hold their final meeting on June 12, 2009, at 10:45 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands CASTANET LIMITED: Members Receive Wind-Up Report ------------------------------------------------ On May 11, 2009, the members of Castanet Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier Corporate Services (UK) Limited Equitable House, 47 King William Street London, EC4R 9JD CLSP OVERSEAS: Final Meeting Slated for June 2 ---------------------------------------------- CLSP Overseas, Ltd. will hold its final meeting on June 2, 2009, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard L. Finlay P.O. Box 2681, Grand Cayman KY1-1111 Telephone: (345) 949 3901 Facsimile: (345) 949 3902 CELESTE EUROPEAN: Final Meeting Slated for June 11 -------------------------------------------------- Celeste European Small and Midcap Fund will hold its final meeting on June 11, 2009, at 3:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Bernadette Bailey-Lewis dms Corporate Services Ltd. dms House, 2nd Floor, P.O. Box 1344 Grand Cayman KY1-1108 Telephone: (345) 946 7665 Facsimile: (345) 946 7666 CSERE ATRIUM: Shareholders' Final Meeting Set for June 12 --------------------------------------------------------- The shareholders of Csere Atrium Limited will hold their final meeting on June 12, 2009, at 10:15 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands CSERE DUMFRIES: Shareholders' Final Meeting Set for June 12 --------------------------------------------------------- The shareholders of Csere Dumfries Limited will hold their final meeting on June 12, 2009, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands CSERE MILTON: Shareholders' Final Meeting Set for June 12 --------------------------------------------------------- The shareholders of Csere Milton Keynes Limited will hold their final meeting on June 12, 2009, at 9:15 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands DIAMOND CRUISE: Shareholders' Final Meeting Set for June 8 ---------------------------------------------------------- The shareholders of Diamond Cruise Ltd. will hold their final meeting on June 8, 2009, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Per Arvid Skult Keilaranta 9, FI-02150 Espoo Finland EUROPEAN TELECOM: Shareholders' Final Meeting Set for June 15 ------------------------------------------------------------- The shareholders of European Telecom Investment Corporation will hold their final meeting on June 15, 2009, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Yoichi Nakao 22-5, Misuzugaoka, Aoba-ku, Yokohama Japan GGI: Members to Receive Wind-Up Report on June 3 ------------------------------------------------ The members of GGI will receive the liquidator's report on the company's wind-up proceedings and property disposal on June 3, 2009. The company's liquidator is: Lucas Oliver-Frost TA Lawyers GKJ Shiroyama Trust Tower 15th Floor 4-3-1 Toranomon Minato-ku, Tokyo 105-6015 Japan PFW II: Shareholders' Final Meeting Set for June 12 --------------------------------------------------- The shareholders of PFW II, Ltd. will hold their final meeting on June 12, 2009, at 9:45 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands PRISMA SELECT: Shareholders' Final Meeting Set for June 12 ---------------------------------------------------------- The shareholders of Prisma Select Fund SPV Ltd will hold their final meeting on June 12, 2009, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands ========= C H I L E ========= VESPUCIO NORTE: S&P Downgrades Underlying Rating to 'BB' -------------------------------------------------------- On May 20, 2009, Standard & Poor's Ratings Services lowered its SPUR on Chilean toll-road operator VNE to 'BB' from 'BBB-'. The outlook is stable. At the same time, S&P affirmed the 'BBB+' senior secured wrapped rating, reflecting that of the bond- insurance provider MBIA Insurance Corp. (BBB+/Negative/--). The outlook on this rating is negative. The downgrade is based on the project's weaker-than-expected traffic and financial performance that would likely result in weaker financial metrics, particularly debt service coverage ratios. VNE's underperformance are due to three main factors: a lower- than-expected initial traffic capture rate, a longer-than-expected ramp-up period, and certain delays in relevant connectivity works (not attributable to the concessionaire) that were expected to feed the concession. As a result, VNE's accumulated revenues, since the beginning of operations in early 2006 until fiscal 2008, were more than 20% below the original estimations. The project reached a relatively low 1.36x DSCR in 2008, including the positive effect of about UF550,000 received from the Ministry of Public Works as compensations for certain additional investments. The economic slump in Chile is likely to slow traffic levels growth that would delay the strong revenue growth that the project needs to converge to the original revenue projections, despite the continuing healthy long-term traffic fundamentals. Assuming a 10% annual revenue growth for 2009 and 2010, the project would reach very weak DSCR of slightly below 1x. S&P expects the project to cover the projected cash shortfalls, which should be less than UF200,000 per year, with its ample liquidity. The 'BB' SPUR on VNE continues to reflect these risks: The project's weaker-than-expected financial performance; Increased uncertainty about the project's ability to match traffic expectations; VNE financial profile's dependence on strong traffic growth which in turn depends on continued GDP growth in Chile; and Customer management risks associated with electronic toll collection. These strengths offset these risks at the rating level: -- Strong liquidity protections in the short to medium term; -- Long-term potential traffic upside, evidenced by urban toll roads in Santiago Autopista Central Sociedad Concesionaria S.A. and Costanera Norte Sociedad Concesionaria S.A.; and The experience of the main sponsors, Actividades de Construcción y Servicios S.A. and Hochtief AG, in road construction and concession management; VNE, formed by the consortium of Grupo ACS, Hochtief, M.M. Warburg & Co., and Cofides, was awarded the concession for the Sistema Américo Vespucio Nor-Poniente urban toll road system in Santiago, Chile, in 2002. VNE provides 29 kilometers of high-speed urban motorways, an equal length of service roads, and seven grade- separated junctions. The project is a major component of the northern and western areas around Santiago. The road, which is divided into six sections, runs through eight communities that together contain 25% of Santiago's population. The project benefits from strong liquidity protections. Along a 12-month debt service reserve account (funded with LOC), the sponsors have committed to provide contingent equity for up to UF1.8 million (approximately an additional two-year debt service and insurance premium) until the project meets certain conditions (including certain minimum financial performance). Additionally, as of March 2009, the project had approximately UF1.5 million in cash balances (approximately another 1.5-year debt service) that could only be distributed to the sponsors following the restricted payments test which S&P considers adequate (and that also requires certain minimum financial performance, including a minimum DSCR of 1.3x and the requirement that all the project accounts are fully funded). The negative outlook on the 'BBB+' wrapped rating reflects that of MBIA. The stable outlook on the SPUR reflects the project's strong liquidity provisions that would provide adequate protection against potential cash shortfalls in the medium term. S&P could revise the outlook to negative or further lower the SPUR if the project revenue growth is below 10% in 2009 and/or if S&P find evidence of poor long-term traffic fundamentals. S&P can revise the outlook to positive or upgrade the SPUR if the project shows progress in matching revenue expectations. Sociedad Concesionaria Vespucio Norte Express S.A. To From -- ---- BB(SPUR)/Stable BBB-(SPUR)/Negative =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Power Firms Lift Lien on Distributors ----------------------------------------------------------- Power companies lifted the 11-day old lien they had placed on the accounts of the electricity distributors (Edes), for debts in arrears since 2004 totaling US$359.4 million, of which they demanded US$150 million as an advance to continue operations, The Dominican Today reports. The report relates state-owned power companies CDEEE Vice President Radhames Segura said the power companies are owed US$218 million as of May 19, including US$31.4 million from 2008 and US$186.9 million this year, excluding the frozen debt of 2004, which was US$453 million, which totals US$200 million on May 20. According to the report, in order to raise the lien in effect since May 9, the power companies AES Dominicana, AES Andres, Generadora de Electricidad Itabo and DPP announced that they had granted the 15 day term president Leonel Fernandez requested of them to solve the problem. As reported in the Troubled Company Reporter-Latin America on May 15, 2009, The Domincan Today said power companies AES Dominicana, AES Andres, Itabo and DPP began the process to place a lien on the accounts of the electricity distributors (Edes), to seek payment of a current debt, which is already four months overdue, is for energy served from part of 2008 to 2009. The report related AES Dominicana said the lack of payment to its generators will deteriorate the country’s electricity service because the lack of funds prevents it from acquiring the fuels to continue operating normally. ============= J A M A I C A ============= BANK OF JAMAICA: BITU Seeks 7% Wage Adjustment for Bank Employees ----------------------------------------------------------------- The Bustamante Industrial Trade Union (BITU) wrote to the Central Bank of Jamaica insisting that the Bank of Jamaica's employees are due the 7% wage adjustment agreed on for this year, as provision has been made in the BoJ's budget, RadioJamaica reports. The report relates BITU President-General Kavon Gayle said the union will not back down from its demand. According to the report, Mr. Gayle said the BoJ is not funded from the Government's coffers and its employees should therefore be excluded from the public sector wage freeze. "We'll be meeting next Tuesday to reiterate our position to the BoJ that there is a collective agreement that gives rise to a 7% increase and it should be honoured," the report quoted Mr. Gayle as saying. The BITU, the report notes, represents more than 300 BoJ workers up to the level of Deputy Director. BERGER PAINTS: Cuts Operating Cost by 28% as Part of Restructuring ------------------------------------------------------------------ Berger paints managed to cut 28% of its operating expenses in March 2009 from the same period last year, due to the restructuring of the company which saw employees and managers take less pay, The Jamaica Observer reports. According to report, for the three months ending March 31, 2009, Berger incurred a net loss of JM$8 million from a JM$3 million net profit in the same period last year. The report relates the company posted JM$303 million revenues in the three months ended March 2009 from revenues of US$336 million revenues in the same period last year. The report notes Company Managing Director Warren McDonald said the company was "severely impacted by the general adverse economic climate and more specifically, the sharp deterioration in the value of the Jamaican dollar relative to its US counterpart and the downturn in the construction sector". However, the report relates Mr. McDonald said the rationalisation exercise implemented in February this year, which saw managers take a 20% salary cut and staff move to a four-day work week, resulted in significant cost savings. The Observer discloses that in a company statement, Mr. McDonald said: "These measures are working well so far and are expected to save some $50 million." =========== M E X I C O =========== HIPOTECARIA SU: S&P Affirms 'BB-' Global Corporate Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' CCR global scale and 'mxA-/mxA-2' national scale rating and senior unsecured debt ratings on Mexico-based mortgage and construction lender Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R. and removed them from CreditWatch with negative implications where they were placed on May 5, 2009. The outlook is negative. "The ratings affirmation primarily reflects the agreement signed on May 11, 2009, by Mexican government-related agency Sociedad Hipotecaria Federal S.N.C., commercial banks, underwriters, and six mortgage companies, including HSC. The agreement calls for the substitution of current market debt, maturing in 2009 and 2010, for new debt issuance with a 65% guarantee from SHF. In S&P's view, this agreement alleviates HSC's liquidity pressures and reduces its refinancing risk over the next few years. S&P also think the agreement will allow HSC to focus on containing its increasing nonperforming assets while trying to restore its profitability and adjusted capitalization levels," said Standard & Poor's credit analyst Arturo Sanchez. The signed agreement includes an amortization plan for the new debt issuance, which must be completed within the next three years. Failing to comply with the amortization plan would constitute an early amortization event for this debt. Keeping this in mind, S&P will further analyze HSC's amortization plan to assess its feasibility and any possible impact it may have on the company's financial profile over the next few years. The negative outlook reflects the risks that could arise from HSC's new debt issuance amortization plan. It also incorporates S&P's view that negative pressures on asset quality and adjusted capitalization will persist during 2009. "If the company is unable to successfully deal with these potentially harmful developments, the ratings could be lowered. On the other hand, if HSC can reduce its mounting NPAs, coupled with better profitability and adjusted capitalization levels, the outlook could be revised to stable," Mr. Sanchez added. * MEXICO: Gross Domestic Product Drops 8.2% in First Quarter 2009 ----------------------------------------------------------------- Mexico's first quarter 2009 gross domestic product fell 8.2% from the same period last year, as the global financial crisis and the outbreak of swine flu cut demand, Bloomberg News reports, citing statistics agency. The report relates Mexican Finance Minister Agustin Carstens said GDP may shrink as much as 5.5% this year. According to the report, Mexico’s economy is reeling from the effects of the global slump, particularly the recession in the U.S., and the swine flu out break, which further eroded economic output. The report recalls the government’s previous forecast for GDP this year was a contraction of 4.1%. “The Mexican economy fell deep into recession in the first quarter, mainly as a result of the U.S. contraction but also because of the weakness of domestic market,” Alfredo Coutino, senior Latin America economist at Moody’s Economy.com in West Chester, Pennsylvania, said in an e-mailed report obtained by the news agency. Bloomberg News says Mexico’s government expects the H1N1 flu outbreak to cut GDP by 0.3 percent this year. The report relates the most recent official forecast by the central bank estimates the economy will contract as much as 4.8% this year. Since that forecast, bank Governor Guillermo Ortiz, the report notes, said the swine flu may add another 0.5% to the contraction. =============== P A R A G U A Y =============== * PARAGUAY: IMF Concludes 2009 Article IV Consultation ------------------------------------------------------ The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Paraguay. Background The Paraguayan economy performed very well over the past five years, with real GDP growth averaging about 5 percent a year—the best in a generation. The fiscal position strengthened considerably, thereby reducing public debt sharply to relatively low levels. The economy grew by nearly 6 percent in 2008, but growth decelerated in the last quarter of the year. Paraguay’s macroeconomic outlook has been negatively affected by the deterioration in the global environment. The agricultural sector has suffered from the decline in commodity prices, aggravated by the effects of a drought. Economic growth in 2009 is expected to decelerate to about 1/2 percent. In part reflecting the weakening global environment, inflation in Paraguay is now on a firmly downward trend, and is projected at 5 1/2 percent by end-2009, well within the Central Bank’s target range. The budget recorded a sizeable surplus of 2 1/2 percent of GDP in 2009, mainly on account of good revenue performance and low capital expenditure execution. However, tax revenue performance during the first quarter of 2009 has been lackluster, in part due to weak imports. The external current account deficit is expected to moderate to 1 percent of GDP, largely as a result of significantly lower imports, notwithstanding a decline in exports. The government has reacted to the adverse economic conditions by adopting an Economic Recovery plan. This plan, which encompasses policies to address both immediate challenges and medium-term structural weaknesses, includes: (i) a fiscal stimulus of about 3 percentage points of GDP in 2009; (ii) steps to provide liquidity to the banking system to enhance lending; (iii) securing additional external financing from multilaterals (including contingent credit lines); and (iv) addressing key medium-term structural issues, including with respect to public financial management and financial sector reform. The government’s fiscal stimulus focuses on public investment in infrastructure and social programs, including targeted conditional cash transfers. Its full implementation would be consistent with an overall deficit of 3/4-1 percent of GDP in 2009, expected to be financed by disbursements from multilaterals and bilateral donors. Key to the success of the recovery program will be its effective and timely implementation, while transparent monitoring should help ensure that resources are spent efficiently. Executive Board Assessment While Paraguay has been affected by the global economic crisis, as other countries in the region, Executive Directors observed that the country faces the global downturn from a position of relative strength. The commendably prudent macroeconomic policies pursued in recent years have helped build significant buffers to address external shocks. Against the backdrop of a significant deterioration of the short-term outlook, Directors supported the authorities’ economic priorities to consolidate macroeconomic stability, implement critical structural reforms, especially in the financial sector, and strengthen social conditions, with an emphasis on poverty reduction. Directors concurred that the recent fiscal surpluses and decline in the public debt burden provide the government with a margin to conduct well-targeted counter-cyclical policies. They welcomed the authorities’ economic recovery plan aimed at weathering the current crisis, and advised that the fiscal stimulus be focused on public investment and targeted social programs to reduce poverty. Directors underscored the need to improve public financial management and inter-ministerial coordination to ensure the plan’s timely and effective implementation. Given the revenue shortfalls so far this year, Directors encouraged further improvements in tax and customs administrations, and recommended that the authorities refrain from granting tax concessions. Executive Directors supported the current accommodative monetary policy, given the slowdown of the economy and the downward trend of inflation. Nonetheless, they recommended close monitoring of developments to enable the authorities to respond promptly to signs of inflationary or balance of payments pressures. They encouraged the authorities to press ahead with their efforts to strengthen the central bank’s balance sheet to improve the effectiveness of monetary policy. Directors agreed that the flexible exchange rate regime continues to serve Paraguay well by acting as a shock absorber in the face of commodity price fluctuations and strong regional linkages. They noted the staff’s assessment that the exchange rate is broadly in line with fundamentals. Directors underscored the need to press ahead with structural reforms, especially in the financial and state-owned enterprise sectors. They welcomed the strengthening of the banking system, while recommending continued vigilance in the face of rapid credit growth. Directors encouraged the authorities to enhance significantly the regulation and supervision of financial cooperatives and retirement plans, given the large amounts of funds intermediated by these sectors. They also saw a need to improve the prudential framework for insurance companies. Directors welcomed the authorities’ commitment to finance fully the Deposit Guarantee Fund. They emphasized the need to address operational and financial weaknesses of state-owned enterprises, which create significant bottlenecks in the productive capacity of the economy. * * * According to Moody's Website, the country continues to carries Moody's B3 foreign and local currency ratings with stable outlooks. ======= P E R U ======= DOE RUN PERU: Government May Close Smelter Next Year ---------------------------------------------------- The Peru government may close Doe Run Peru’s zinc and lead smelter next year if its fails to meet an environmental clean-up deadline, Alex Emery of Bloomberg News reports, citing Deputy Mining Minister Felipe Isasi. “Under the legal framework, Doe Run Peru has to meet its environmental obligations by October,” the report quoted Mr. Isasi as saying. “If it fails to comply, it may be shut down after a six-month audit.” As reported in the Troubled Company Latin-America on April 7, 2009, Bloomberg News said Doe Run Peru’s zinc and lead smelter received a three-month extension to complete planned environmental cleanup projects. The report related Mr. Brack said Renco Group Inc.’s Peruvian unit, which has reached an agreement with suppliers to resume operations in a government-brokered deal, has until the end of January to reduce sulfuric-acid emissions at its La Oroya smelter. According to the same report, Doe Run Peru committed 100 percent of its shares as a guarantee it will complete the clean-up after a government- brokered deal to lend the company US$75 million and provide US$100 million of concentrates after banks halted funding. About Doe Run Peru Doe Run Peru S.R.L. is an indirect subsidiary of Doe Run Resources Corporation. Doe Run Peru operates an integrated primary lead operation and a recycling operation located in Missouri, referred to as Buick Resource Recycling. Fabricated Products operates a lead fabrication operation located in Arizona and a lead oxide business located in Washington. * * * As of May 21, 2009, the company continues to carry Moody's bank financial strength at D- and Fitch Ratings individual rating at D. ================= V E N E Z U E L A ================= * VENEZUELA: Economy Grew 0.3% From Last Year --------------------------------------------- The Venezuelan economy grew 0.3% in the first quarter from last year, the slowest pace since 2003, as factory output contracted and export revenue declined on a plunge in oil prices, Bloomberg News reports. Gross domestic product expanded less than the 1.5% median forecast of 14 economists in a Bloomberg survey. “We’ve got falling revenue from oil sales, and that’s led to lower government spending,” Miguel Carpio, an economist at Banco Federal CA in Caracas, told Bloomberg News in a telephone interview. “For the year, I doubt there’s going to be any growth.” According to the report, Mr. Carpio expects the economy will contract 2% this year, as the fastest inflation rate in Latin America erodes purchasing power and diminishes the impact of government spending. Bloomberg News relates the central bank said Venezuela’s oil sector shrank 4.8% in the first quarter, while manufacturing fell 1.1%, and mining output shrank 13.6%. Venezuela's oil export, the report says, plunged 56% in the quarter from a year ago, while the private sector grew 0.8%, and public sector contracted for the first time since 2003, falling 0.4%. President Hugo Chavez, the report notes, cut the 2009 federal budget by 6.7%, raised the sales tax and announced plans to sell VEB34 billion (US$15.8 billion) in domestic bonds this year to cover a budget deficit. The central bank, according to Bloomberg News, said Venezuela had a US$3.5 billion current account deficit, and a US$10.5 billion capital account deficit in the quarter. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. PDVSA: Reaches Two Framework Agreements With CNPC ------------------------------------------------- A framework agreement on creating a joint venture to develop Junin-4 Block was signed by CNPC Vice President Zhou Jiping and Venezuelan Energy and Oil Minister Rafael Ramirez, who is also President of Petroleos de Venezuela (PDVSA). According to the framework agreement, a joint venture will be established by CNPC and PDVSA, in which CNPC has a 40% stake and PDVSA has a 60% stake. The venture will drill for and upgrade the super-heavy oil at Junin-4 Block in the Orinoco heavy oil belt with a target annual productivity of 20 million tons. Another framework agreement was also signed by Zhou Jiping and Asdrubal Chavez, Vice President of PDVSA to build a joint venture refinery in China, in which CNPC has a 60% stake and PDVSA has a 40% stake. 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. ========================== V I R G I N I S L A N D S ========================== WEAVERING MACRO: ISE Keeps Mum on Hedge Fund Investigation ---------------------------------------------------------- Arthur Beesley at the Irish Times reports that the Irish Stock Exchange has declined to say whether it is investigating or has investigated the affairs of the Weavering Macro Fixed Income Fund. "Our policy is not to comment on any investigation that may or may not be taking place," the Irish Times quoted a spokesman for the ISE as saying. The fund, which was targeted at high-net-worth clients, was incorporated in the Cayman Islands and listed on the ISE in August 2003, the Irish Times discloses. The Irish Times recalls the fund's ISE listing was suspended on March 11th and it was placed in liquidation a week later after failing to meet its investor demands for withdrawals. Hedge Fund Probe As reported in the Troubled Company Reporter-Europe on May 20, 2009, the Serious Fraud Office on May 15 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. Liquidators were appointed over the Macro Fund on March 19, 2009. The Weavering Macro Fixed Income 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 Weavering Macro Fixed Income Fund. According to the Irish Times, when the ISE listing of the Weavering Macro Fixed Income Fund was suspended, the fund itself said an investigation into its assets had "revealed a related party transaction in the form of a large interest rate swap position of a material amount where the counterparty is a company controlled by a related party". The Irish Times says while the fund's main unencumbered asset was a series of derivative transactions valued in its balance sheet at US$637.1 million, the derivative counterparty had a net worth not exceeding US$50 million. =============== X X X X X X X X =============== BRITISH AIRWAYS: To Launch Two New Caribbean Routes --------------------------------------------------- British Airways Plc is launching twice-weekly services from Gatwick to Montego Bay and Punta Cana in the Dominican Republic in its winter schedule, according to a report posted at Travelmole.com. The report relates the airline is also increasing flights from Gatwick to St Lucia from three to five a week, Barbados, from nine to 10, and Port of Spain, Trinidad, from three to five. “These new routes and increased frequencies underline our commitment to the Caribbean,” the report quoted Airline Head of Sales Richard Tams as saying. “It’s a popular destination with our customers and it’s due to demand that we’re increasing the number of flights to the region.” About British Airways Headquartered in Harmondsworth, England, British Airways Plc (LON:BAY) –- http://www.ba.com/-- is engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail, and the provision of ancillary services. The Company's principal place of business is Heathrow. The Company also operates a worldwide air cargo business with its scheduled passenger services. The Company operates international scheduled airline route networks, comprising some 300 destinations at March 31, 2008. During the fiscal year ended March 31, 2008 (fiscal 2008), British Airways carried more than 33 million passengers. It carried 805,000 tons of cargo to destinations in Europe, the Americas and worldwide. At March 31, 2008, it had 245 aircraft in service. In July 2008, British Airways plc completed the purchase of French airline L'Avion. * * * As reported in the Troubled Company Reporter-Europe on Mar 10, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on U.K.-based British Airways PLC to 'BB+' from 'BBB-'. At the same time, the rating remains on CreditWatch with negative implications, where it was originally placed on Jan. 27, 2009. *********** 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 * * *