/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090605.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, June 5, 2009, Vol. 10, No. 110 Headlines A N T I G U A & B A R B U D A STANFORD INT'L BANK: Depositors May Get Some of Their Savings Soon A R G E N T I N A HILANDERIA Y TEJEDURIA: Proofs of Claim Verification Due on Aug. 3 INDUSTRIAS METALURGICAS: Fitch Affirms 'B' Issuer Default Rating TELECOM ARGENTINA: Inks Joint Telecoms Services With Telpin TIXA SRL: Proofs of Claim Verification Due on August 20 B E L I Z E CL FIN'L: Gov't Puts CLICO Belize Under Judicial Management B R A Z I L BANCO ABC: Moody's Confirms 'D+' Bank Financial Strength Rating BRASKEM SA: Inks R$8.25-BB Renewable Polymers Research With FAPESP CEB: Plans to List Shares on the Bovespa REDE ENERGIA: Repurchase Offer Cues Moody's to Keep Rating Review C A Y M A N I S L A N D S AQUANAUT OFFSHORE: Shareholder to Hear Wind-Up Report on June 24 BLUEPOINT EMERGING: Shareholders' Final Meeting Set for June 26 BARGO HOLDING: Members to Receive Wind-Up Report on July 30 BRISPHER CORPORATION: Members to Receive Wind-Up Report on Aug. 11 BRISPHER TRADING: Final General Meeting Set for August 11 CREP ANNEXE: Shareholders' Final Meeting Set for June 26 D. & M. STOP: Sole Shareholder to Hear Wind-Up Report on July 9 DYNAMIC WORLD: Sole Shareholder to Hear Wind-Up Report on June 29 ELECTROGEN INTERNATIONALMARATHON: Members' Meeting Set for June 26 ENSO GLOBAL: Shareholders' Final Meeting Set for July 8 FORTIS CURRENCY: Shareholders' Final Meeting Set for June 26 GENERAL MOTORS: Chapter 11 Filing Won't Affect Cayman Operations GRS ORION: Shareholders' Final Meeting Set for June 26 MARATHON PETROLEUM: Members' Final Meeting Set for June 26 MARATHON PETROLEUM: Members' Final Meeting Set for June 26 MARATHON POWER: Members' Final Meeting Set for June 26 MARATHON QATAR: Members' Final Meeting Set for June 26 NEW DIMENSION: Shareholders' Final Meeting Set for July 8 NOVA GAS: Shareholders' Final Meeting Set for June 25 OPTIMUM LTD: Final General Meeting Set for August 12 C H I L E CORPBANCA: Fitch Affirms Support Rating Floor at 'BB-' C O L O M B I A ECOPETROL SA: Inks COL$2.2 Billion Loan Facility With Local Banks C U B A * CUBA: Foreign Income Cut by US$1 Billion Seen G U Y A N A * GUYANA: IDB Increases Financial Support M E X I C O BANCO DE COSTA: Fitch Affirms Issuer Default Rating at 'BB' BANCOPPEL SA: Moody's Downgrades Global Currency Ratings to 'B3' GRUPO PETROTEMEX: Fitch Downgrades Issuer Default Rating to 'BB+' * MEXICO: Recession Will Ease in Coming Two Quarters P A N A M A BANCO INTERNACIONAL: Fitch Affirms 'BB' Issuer Default Rating V E N E Z U E L A * VENEZUELA: Gov't Takes Over Gas Compression Units - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L BANK: Depositors May Get Some of Their Savings Soon ------------------------------------------------------------------ Court-appointed joint liquidators for Stanford International Bank Limited (SIBL) Nigel Hamilton-Smith and Peter Wastell -- client partners at Vantis Business Recovery Services -- said depositors of Robert Allen Stanford's offshore bank may see a small sliver of their savings returned in a year's time, Forbes.com reports. As reported in the Troubled Company Reporter-Latin America on May 21, 2009, Mr. Hamilton-Smith and Mr. Wastell sent letters to all investors of SIBL, setting out their initial findings in relation to the actions that have been taken both as receiver- managers and liquidators, and their initial views on the financial position of SIBL. According to Messrs. Smith and Wastell, records indicated that as of February 19, 2009 the Bank had 27,992 active clients. Including accrued interest to February 19, 2009 the Bank's records indicate a total of US$7.2 billion is owed to depositors. "Since our appointment we have been seeking to confirm the true value of the Bank's assets," the Liquidators said. They estimate that SIB has these assets: * Cash assets -- US$46 million * Assets held by financial institutions -- US$472 million * Sums invested / loaned to corporations -- US$470 million * Tracing claims - uncertain "Total asset values could therefore be below US$1 billion against depositor liabilities of US$7.2 billion," Messrs. Smith and Wastell said. The Liquidators though have not yet tallied all claims against Stanford. It said that its online claims management system will be operational by June 30, 2009, and will be available at http://www.vantisplc.com/Stanford Mr. Hamilton-Smith, as cited by Forbes, said: "This is a huge gap, and it is necessary for us to try and ascertain where the missing funds are." One bright spot: "I would like to believe that we will be dealing with an initial distribution to creditors within twelve months," he said. "If we can establish that there has been misappropriation, mismanagement or fraud on the part of Mr. Stanford, we will be going after those assets." The U.S. Securities and Exchange Commission, on February 17, charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include SIBL, Stanford Group Company, and investment adviser Stanford Capital Management. As reported in the Troubled Company Reporter-Latin America on April 8, 2009, Bloomberg News said U.S. District Judge David Godbey seized all of Mr. Stanford's corporate and personal assets and placed them under the control of court-appointed SGC receiver Ralph Janvey. According to Forbes, Mr. Hamilton-Smith said the majority of creditors affected were residents in Latin America with more than 60% of the claims coming from Central and South America. It is too early to say how much investors would manage to retrieve, he added. Forbes relates, Mr. Hamilton-Smith, who said the "very complex process" could take up to five years, admitted retrieving those funds won't be easy. "We are seeking to liquidize the known assets which are located in several jurisdictions around the world, predominantly in Europe. So it will be a significant asset tracing exercise. This is a very complex liquidation process. Money has been moved around the world and we have got to follow the money," the report quoted Mr. Hamilton-Smith as saying. Meanwhile, Forbes notes Mr. Hamilton-Smith said his firm was currently involved in four jurisdictions trying to gain access to identified assets but suspected that "further proceedings will be issued in a number of other jurisdictions." "There are various jurisdictions around the world from which we might not get cooperation as they try to look after their own investors first. But I am hopeful that the majority of jurisdictions will cooperate," the report quoted Mr. Hamilton-Smith as saying. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. ================= A R G E N T I N A ================= HILANDERIA Y TEJEDURIA: Proofs of Claim Verification Due on Aug. 3 ------------------------------------------------------------------ Marcos Enrique Gonzalez, the court-appointed trustee for Hilanderia y Tejeduria Tuyuti S.R.L.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until August 3, 2009. Mr. Gonzalez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 12, 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: Marcos Enrique Gonzalez Lavalle 1537 Buenos Aires, Argentina INDUSTRIAS METALURGICAS: Fitch Affirms 'B' Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings has upgraded the national scale rating of Industrias Metalurgicas Pescarmona S.A.I.C. y F to 'A (arg)' from 'A-(arg)'. In conjunction with this rating action, Fitch affirms these: -- Foreign and Local currency Issuer Default Rating at 'B'; -- US$225 million senior unsecured notes due 2014 at 'B/RR4'; -- US$65 million senior unsecured notes due 2009 at 'B/RR4'. The Rating Outlook is Stable. The upgrade reflects the company's improved liquidity as a result of the successful sale of 49% of its Brazilian wind farm, Caera, to CEMIG for $92 million; proceeds are expected to be received within the next three months. IMPSA's credit ratings continue to reflect the sustained global demand for hydroelectric and wind technology and equipment. The company's backlog was US$1.5 billion as of May 2009. Given the long-term production cycle of IMPSA's developments, usually in the range of 30 months, this backlog level provides some certainty to the company's cash generation in the medium term. Also considered in the ratings are IMPSA's geographic revenue and asset diversification, and its ability to generate funds in hard currency, reducing currency mismatch risk compared to its indebtedness. For the fiscal year ended Jan. 31, 2009, U.S. dollar denominated sales accounted for approximately 70% of its total revenue. This percentage should increase in the future due to the composition of most of the company's backlog. Balanced against these strengths are the company's high leverage, large capital needs for the development of future projects, and the concentration of its cash flow in a few large projects in developing countries -- namely Brazil, Venezuela, Colombia, and Malaysia. While existing backlog remains strong, a sudden downturn in the key markets would negatively impact IMPSA's ability to add new contracts. Additionally, even though Argentina is not an important sales market for IMPSA, an increase in economic uncertainty in that country could lead to a decline in backlog as potential customers shy away from doing business with the company due to concerns about its ability to finance its working capital needs. For the 12 months ended Jan. 31, 2009, IMPSA's revenues grew to US$440 million from US$287 million during fiscal year 2008, as the result of the maturity of several projects. In terms of operating results, EBITDA grew to US$99 million from US$68 million. EBITDA was negatively affected by the performance of the port systems business unit, under Impsa Asia Ltd, which was divested from the group at fiscal year-end (negative EBITDA of approximately US$10 million). IMPSA's cash flow from operations was negative for the fiscal year ended Jan. 31, 2009, due to large working capital needs. Given the concession nature of the operation of the Ceara wind farm, IMPSA must account for this investment as a long-term account receivable (at the end of the concession, these assets must be transferred to the concessionaire). Deducting such impact to the cash flow from operations, the actual increase in account receivables would have been approximately US$45 million, leading to positive CFO of US$3 million. In the medium term, despite the accounting treatment, Fitch expects free cash flow to remain negative as the Santa Catarina project develops. For this project, it is expected that IMPSA will replicate the 'project finance' structure applied with Ceara, with financing having no recourse to the company. IMPSA's total debt as of Jan. 31, 2009, was US$578 million, of which US$165 million was structured without legal recourse to the company as project finance debt for the Ceara wind farm. This debt was funded through a 12-year loan from Brazil's development bank, Caixa Economica Federal. At the end of January, IMPSA had US$93 million of cash and marketable securities. These figures translate into a total debt-to-EBITDA ratio of 4.2 times (x) and a net debt-to-EBITDA ratio of 3.2x. An improvement in credit metrics is foreseen, as the company's EBITDA level is expected to reach US$ 110 million in 2009/2010. The growth in EBITDA should come from the completion of several projects that are currently in backlog. The main hydro projects are Porce III (Colombia), Bakun (Malaysia), Dardanelos (Brazil), Simplicio (Brazil), Macagua (Venezuela) and Tocoma (Venezuela). IMPSA major wind projects are Caera and Santa Catarina, both located in Brazil. IMPSA's total debt-to-EBITDA ratio should drop to approximately 3.5x for the fiscal year ended January 2010. The Percarmona family owns 93.73% of Industrias Metalurgicas Percarmona S.A.I.C. y F through Corporacion IMPSA S.A. IMPSA is engaged in providing integrated solutions for renewable energy, including hydroelectric and wind power projects and associated equipment. IMPSA has a solid international presence, marketing and distributing its products and services from its branches and representation offices in Argentina, Brazil, China, Colombia, Ecuador, USA, the Philippines, India, Malaysia and Venezuela. TELECOM ARGENTINA: Inks Joint Telecoms Services With Telpin ----------------------------------------------------------- Argentina-based Telecom Argentina S.A. and regional telecoms operator Telpin have launched joint telecoms services in the city of Tandil, Telegeography News reports, citing BNAmericas. The report relates the two companies have invested around ARS4.5 million (US$1.2 million) in the deployment of a hybrid copper and fibre-optic next-generation network (NGN) to provide voice and broadband services to a potential 25,000 households in the city. According to the report, the two companies have already launched services in Necochea, Carilo, General Madariaga, Santa Teresita and San Clemente, with plans to launch in the city of Azul by end- 2009 or during the first quarter of 2010, subject to government approval. About Telecom Argentina Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone-related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. * * * As reported in the Troubled Company reporter-Latin America on Feb. 16, 2009, Standard & Poor's Ratings Services lowered Telecom Argentina SA's foreign currency rating to B-/Stable/ and local currency rating to B/Stable/. The outlook on both ratings is stable. TIXA SRL: Proofs of Claim Verification Due on August 20 ------------------------------------------------------- Christian Omar Barbier, the court-appointed trustee for Tixa S.R.L.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until August 20, 2009. Mr. Barbier will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 41, 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: Christian Omar Barbier Av. Callao 449 Buenos Aires, Argentina =========== B E L I Z E =========== CL FIN'L: Gov't Puts CLICO Belize Under Judicial Management ----------------------------------------------------------- The Supreme Court of Belize has placed CLICO Belize, a unit of CL Financial Limited, under judicial management and appointed Mark Hulse of Baker Tilly Hulse as Judicial Manager, Caribbean Net News reports, citing the Supervisor of Insurance. According to the report, the Supreme Court has also ordered that the regular life and health insurance claims may be paid after due verification and processing. The report relates the order removes the need for the Bahamas head office to process and approve the claims and as such the delayed claims payments will now be processed locally and expeditiously as possible. Caribbean Net News says the restrictions placed by the Supervisor of Insurance in February 2009 on CLICO (Bahamas) Limited remain in place. To further protect the interest of policyholders, the Supreme Court has ordered that no assets of the company are to be transferred outside of Belize for the time being, the report notes. Caribbean Net News relates that in regard to existing insurance contracts, the policyholders are advised that in order to keep their policies active, they must continue to pay their insurance premiums. 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. =========== B R A Z I L =========== BANCO ABC: Moody's Confirms 'D+' Bank Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service confirmed the bank financial strength rating of Banco ABC Brasil S.A. at D+, and changed its outlook to stable. At the same time, Moody's affirmed the long and short term global local currency deposit ratings of the bank at Baa3 and Prime-3, respectively, and Brazilian national scale ratings of Aa1.br and BR-1. The long and short term foreign currency deposit ratings of Ba2 and Not Prime were also affirmed and remain constrained by Brazil's foreign currency country ceiling for deposits. All ratings now have a stable outlook. The rating actions conclude the review initiated on January 30, 2009, when Moody's placed on review for possible downgrade BAB's BFSR of D+ and lowered its global local currency deposit rating to Baa3/Prime-3 from Baa2/Prime-2 with negative outlook, following the downgrade of the BFSR of its main shareholder Arab Banking Corporation. In confirming BAB's BFSR, Moody's indicates that the bank's stand- alone financial strength is supported by stable core earnings generation, prudent liquidity and credit risk management, as well as solid reserve coverage and capital adequacy. The bank's traditional niche franchise, characterized by a steady wholesale lending operation, also benefits from strong risk-weighted capitalization that supports its ability to remain profitable within a more challenging operating environment. BAB's franchise potential and financial metrics continue to position the bank well within its rating category relative to other D+ rated Brazilian peers. Moody's noted that BAB's funding ability has not been significantly affected by the weakened financial strength of its main shareholder. Nonetheless, as a niche wholesale bank in Brazil, BAB has been exposed, though to a lesser extent than most of its local competitors, to tight liquidity conditions, that have primarily affected midsized banks. With a core focus on the trade finance segment, the bank had suffered from a reduction in deposits and the reduced availability of correspondent banking facilities during the fourth quarter of 2008, which in recent months have gradually returned and is fully aligned to the bank's needs. BAB also maintains a stand-by facility of US$300 million from its parent bank, an indication of its commitment and strategic support. In placing a stable outlook on the ratings, Moody's noted that BAB is prepared to meet future refinancing needs with a steady cash generation from its credit portfolio. While BAB's asset quality indicators have worsened during the last two quarters, they remain at manageable levels and its capital surplus should be adequate to absorb future potential losses. Moody's last rating action on Banco ABC Brasil was on January 30, 2009, when Moody's downgraded the long-term global local currency rating, changing this rating outlook to negative from stable, while the bank's bank financial strength rating was placed on review for possible downgrade. In the same rating action, Moody's downgraded its long-term Brazilian national scale rating. Actions were in connection with a rating action taken on its parent. Banco ABC Brasil is headquartered in Sao Paulo, Brazil. As of March 2009, the bank had total assets of approximately BRL6.9 billion (US$2.98 billion) and equity of BRL1.2 billion (US$505 million). This rating of Banco ABC Brasil was confirmed and placed on stable outlook: -- Bank financial strength rating: D+ The ratings of Banco ABC Brasil were affirmed and placed on stable outlook: -- Global long-term local currency deposit rating: at Baa3 -- Global short-term local currency deposit rating: at Prime-3 The ratings of Banco ABC Brasil were affirmed: -- Foreign currency deposit rating: Ba2 for long-term and Not Prime for short-term, stable outlook -- Brazilian national scale deposit ratings: Aa1.b for long-term and BR-1 for short-term, stable outlook BRASKEM SA: Inks R$8.25-BB Renewable Polymers Research With FAPESP ------------------------------------------------------------------ Braskem SA said it is giving one more important step to reinforce its pioneering work in the development of green polymers with the investment of R$8,25 million, which should be soon formalized; in the expansion of researches on green propene for the production of polypropylene (PP) based on 100% renewable raw material. Braskem produced the first green polypropylene of the world in 2008, certified as from 100% renewable origin. With such investment, planned for application in the next three years through Fundacao de Amparo aPesquisa do Estado de Sao Paulo (Fapesp), which holds 50% of the project, Braskem is already working on the details required to reach commercial scale. Braskem partnership in this project is the biotechnology area of the University of Campinas (Unicamp). "Our technology has already been tested in pilot experiments, and we are improving our polymers with more competitive technologies in commercial scale, based on raw material of renewable source", said Antonio Queiroz, director of Innovation and Technology at Braskem. "The market sizing will define the next steps and deadlines", he adds. The pioneering work of Braskem in the development of green polymers is the result of investments, partnerships and the priority given to the Innovation and Technology area, which enables improved competitiveness to all production chain of the petrochemical company. With 219 patent registration applications, four of them of green polymers, the company offers its clients a team of 190 experts and R$330 million in research and development assets. The development of renewable polymers is aligned with the company's strategy for value creation through technology and innovation and for improved competitiveness. Confirming its commitment to investments in cleaner sources utilized in the petrochemical industry, Braskem launched in April 2009 the Cornerstone of the Green Polyethylene Project at the Petrochemical Complex of Triunfo, in the state of Rio Grande do Sul. The project investments will reach around R$500 million and should include the construction of an ethylene plant - the polyethylene raw material - based on ethanol. According to Bernardo Gradin, president of Braskem, "the investment is part of the company's strategy of growth with value creation and is aligned with the purpose of making it an international reference for the development of green polymers". The start-up of the green ethylene plant is planned to occur in the fourth quarter of 2010, and the commercial operations might start in early 2011. This Unit will have the production capacity of 200 thousand MT/year. Besides the environmental aspects, the utilization of green polyethylene offers an additional advantage: its application characteristics and properties are identical to those of the traditional plastic, which allows transformation industries to use their current facilities to process the resin of renewable source. The concept of green polyethylene sustainability is linked with its ability to capture and fix CO2 from the atmosphere. Each produced kilo of Green PE captures around 2.5 kg of CO2. For the Green PE, Braskem has established since last year a number of partnerships with large clients of national and international markets that wish to attribute the sustainability concept to their brands, mainly European, American and Japanese companies. The partnership with Toyota Tsusho for the Green PE trading in the Asian market has produced the first market result with the renewable resin, the contract established in Japan with Shiseido, one of the largest cosmetic companies in the world. In both partnerships, the potential demand already identified for the Green PE reaches around 600 thousand MT/year, three times as much the capacity of the new plant under construction at the Petrochemical Complex of Triunfo. About Braskem S.A. Braskem S.A. -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As of May 18, 2009, the company continues to carry Fitch Ratings' BB+ currency long-term Issuer Default Ratings, BB+ unsecured senior notes due 2014, 2017, 2018. CEB: Plans to List Shares on the Bovespa ---------------------------------------- Brazil-based Cia. Energetica de Brasilia (CEB) plans to list shares on the Bovespa, LatinFrance reports, citing a company statement. According to the report, the company is 69% held by the federal district of Brasilia (DF)- 89% voting shares and 49% non-voting shares - and has been listed on the Bovespa since 1998. The report relates CEB has a market cap of BRL266 million and its shares are very thinly traded. LatinFrance notes that the statement said that issuance could involve existing shares or new ones, and would be designed to maintain DF's controlling stake. Headquartered in Brasilia, Brazil, CEB is an electricity distribution company serving about 714,000 consumers of the Federal District, besides holding investments in power generation utilities. * * * As of June 4, 2009, the company continues to carry Moody's B3 Local Currency Long-Term Debt Rating. REDE ENERGIA: Repurchase Offer Cues Moody's to Keep Rating Review ----------------------------------------------------------------- Moody's announced that it will continue its review for downgrade of its ratings for Rede Energia S.A. and Rede's operating subsidiaries following the company's BRL 300 million repurchase offer to holders of Rede's US$575 million in unsecured perpetual bonds. All ratings were downgraded and placed under review on April 23, 2009. Moody's clarified that if the repurchase offer is completed in line with the proposed terms and size of the transaction, it would be viewed as a distressed exchange and thus classified as a default under Moody's standard definition of a default. Upon completion of the transaction, Moody's would thus likely downgrade the ratings for the perpetual bonds to Ca from Caa3. Moody's would subsequently review the new capital structure in conjunction with other risk factors with a particular focus on measures to enhance liquidity and capital structure going forward. Despite the potential of certain benefits such as a net reduction in debt and a lower total interest burden, Moody's considers these transactions as being analogous to a distressed exchange of the perpetual bonds based on the perspective that the company is under financial stress. A distressed exchange occurs when 1) an issuer offers creditors a new or restructured debt, or a new package of securities, cash or assets, that amount to a diminished financial obligation relative to the original obligation and 2) the exchange has the effect of allowing the issuer to avoid a bankruptcy or payment default (for more information see Moody's Approach to Evaluating Distressed Exchanges, March 2009, available on www.moodys.com). Rede's repurchase offer will be financed with BRL 300 million in loans to be provided by local market financial institutions. The completion of tender offer is scheduled for June 26, 2009. Ratings that remain under review for downgrade include: -- Caa1 / Caa1.br Corporate Family Ratings for Rede Energia S.A. -- Caa3 Senior Unsecured rating for Rede's US$575 million perpetual bonds -- B3 / B1.br Issuer Ratings for Centrais Eletricas do Para S.A. -- B3 / B1.br Issuer Ratings for Centrais Eletricas Mato- grossenses S.A. -- B3 / B1.br Issuer Ratings for Comp. de Ener. Eletr. do Est. do Tocantins The last rating action for Rede was on April 23, 2009, when the ratings were downgraded and placed on review for further downgrade in face of deteriorated liquidity and weaker credit metrics. Rede Energia S.A., headquartered in Sao Paulo, Brazil, is a holding company with interests in electricity distribution and generation. Through majority-owned subsidiaries Companhia de Energia Eletrica do Estado do Tocantins - Celtins, Centrais Eletricas Matogrossenses S.A. - Cemat, Centrais Eletricas do Para S.A. - Celpa and Empresa Energ. do Mato Grosso Sul - Enersul, the group operates concessions to distribute electricity in the states of Tocantins, Mato Grosso, Para and Mato Grosso do Sul, respectively. In addition, Rede operates small power distribution concessions in a number of municipalities in the states of Sao Paulo, Minas Gerais and Parana. Overall, the group serves approximately 4.2 million clients. In 2008, Rede reported consolidated net revenues of BRL 4.0 billion (US$2.2 billion) and distributed 16TWh of electricity, which is equivalent to approximately 4.5% of the electricity consumed in the country's national integrated system during this period. ========================== C A Y M A N I S L A N D S ========================== AQUANAUT OFFSHORE: Shareholder to Hear Wind-Up Report on June 24 ---------------------------------------------------------------- The sole shareholder of Aquanaut Offshore Fund, Ltd. will receive the liquidator's report on the company's wind-up proceedings and property disposal on June 24, 2009, at 10:30 a.m. The company's liquidator is: Ogier c/o Jody Powery-Gilbert Telephone: (345) 949-9876 Facsimile: (345) 945 8604 BLUEPOINT EMERGING: Shareholders' Final Meeting Set for June 26 --------------------------------------------------------------- The shareholders of Bluepoint Emerging Markets Absolute Return Fund SPC will hold their final meeting on June 26, 2009, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Ltd. Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715, Grand Cayman KY1-1107 Cayman Islands Fax: 1 345 769-9351 BARGO HOLDING: Members to Receive Wind-Up Report on July 30 ----------------------------------------------------------- The members of Bargo Holding will hold their final meeting on July 30, 2009, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Melinda Ebanks c/o TransOcean Bank & Trust, Ltd. P.O. Box 1959, Grand Cayman KY1 1110 Cayman Islands Telephone: (345) 949 7493 Facsimile: (345) 949 7524 BRISPHER CORPORATION: Members to Receive Wind-Up Report on Aug. 11 ------------------------------------------------------------------ The members of Brispher Corporation Ltd. will hold their final meeting on August 11, 2009, at 12:00 noon, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands Telephone: 945-8859 Facsimile: 949-9793/4 BRISPHER TRADING: Final General Meeting Set for August 11 --------------------------------------------------------- Brispher Trading Ltd. will hold its final general meeting on August 11, 2009, at 12:00 noon to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands Telephone: 945-8859 Facsimile: 949-9793/4 CREP ANNEXE: Shareholders' Final Meeting Set for June 26 -------------------------------------------------------- The shareholders of Crep Annexe Cayman will hold their final meeting on June 26, 2009, at 8:00 a.m., to receive 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 D. & M. STOP: Sole Shareholder to Hear Wind-Up Report on July 9 --------------------------------------------------------------- The sole shareholder of D. & M. Stop Loss Fonds will receive the liquidator's report on the company's wind-up proceedings and property disposal on July 9, 2009, at 3:00 p.m. The company's liquidator is: K.D. Blake c/o Bekilizwe Dube P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-945-4464 Facsimile: 345-949-7164 DYNAMIC WORLD: Sole Shareholder to Hear Wind-Up Report on June 29 ----------------------------------------------------------------- The sole shareholder of Dynamic World Fund will receive the liquidator's report on the company's wind-up proceedings and property disposal on July 29, 2009, at 3:00 p.m. The company's liquidator is: K.D. Blake c/o Bekilizwe Dube P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-945-4464 Facsimile: 345-949-7164 ELECTROGEN INTERNATIONALMARATHON: Members' Meeting Set for June 26 ------------------------------------------------------------------ The members of Electrogen Internationalmarathon Power Limited will hold their final meeting on June 26, 2009, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Y. R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A. ENSO GLOBAL: Shareholders' Final Meeting Set for July 8 ------------------------------------------------------- The shareholders of Enso Global Equities Levered Fund, Ltd. will hold their final meeting on July 8, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Roger Priaulx c/o Kim Charaman Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KYI-1102 Telephone: (345) 949 8455 Facsimile: (345) 949 8499 FORTIS CURRENCY: Shareholders' Final Meeting Set for June 26 ------------------------------------------------------------ The shareholders of Fortis Currency Fund, Ltd. will hold their final meeting on June 26, 2009, at 9:15 a.m., to receive 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 GENERAL MOTORS: Chapter 11 Filing Won't Affect Cayman Operations ---------------------------------------------------------------- General Motors Corp.'s bankruptcy filing in the United States will not affect GM operations in the Cayman Islands, Kevin Shereves of Cayman Net News reports, citing local affiliates. As reported in the Troubled Company Reporter-Latin America, The Wall Street Journal said General Motors Corp. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York on June 1. MarketWatch related GM Chief Executive Fritz Henderson said the Company will make leadership changes within the next 60 days. According to MarketWatch, GM will also focus on its four core brands -- Chevrolet, Cadillac, GMC, and Buick -- which will allow the reorganized company to focus its market efforts. MarketWatch said Mr. Henderson said that over 2009 GM will cut its salaried workforce by 22%, about one-third of which have already been made. WSJ stated that though the government would own 60% of the new GM, President Barack Obama said that auto executives "will call the shots and make the decisions about turning this company around," emphasizing that the government would refrain from playing a management role in all but the most critical areas. Advance Automotive Proprietor and Director Charles Markman, as cited by Cayman Net News, said: "This region is not affected in terms of our warranties, sales, parts and service. General Motors International Sales (GMIS) is our regional headquarters and they have assured us that we will not be affected." Advance Automotive is the local GM dealer in the Cayman Islands. "This region is not affected in terms of our warranties, sales, parts and service. General Motors International Sales (GMIS) is our regional headquarters and they have assured us that we will not be affected," Cayman Net News quoted Mr. Markman as saying. According to Cayman Net News, Ignacio Limpenny, President and Managing Director of General Motors International Sales Ltd, said: "Our business operations continue globally without interruption. None of GM's operations outside of the US are included in the US court filings or court-supervised process, and these filings have no direct legal impact on GM's plans and operations outside the US, he added. "There are no implications for the Cayman Islands at all. The announcement about the GM bankruptcy does not affect our Cayman operations, Mr. Limpenny was quoted by the report as saying. "We will still provide GM cars for dealers in the region. There will be restructuring in the US operation of General Motors. From a legal perspective it does not affect us and has no impact from a commercial perspective. I do not expect that anything will change for us here in the Cayman Islands." About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of $6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of $3.3 billion in the year-ago quarter. As of March 31, 2009, GM had $82.2 billion in total assets and $172.8 billion in total liabilities, resulting in $90.5 billion in stockholders' deficit. On April 27, General Motors presented the U.S. Department of Treasury with an updated plan as required by the loan agreement signed by GM and the U.S. Treasury on December 31, 2008. The plan addresses the key restructuring targets required by the loan agreement, including a number of the critical elements of the plan that was submitted to the U.S. government on December 2, 2008. Among these are: U.S. market competitiveness; fuel economy and emissions; competitive labor cost; and restructuring of the company's unsecured debt. It also includes a timeline for repayment of the Federal loans, and an analysis of the Company's positive net present value. The plan details the future reduction of GM's vehicle brands and nameplates in the U.S., further consolidation in its workforce and dealer network, accelerated capacity actions and enhanced manufacturing competitiveness, while maintaining GM's strong commitment to high-quality, fuel-efficient vehicles and advanced propulsion technologies. A full-text copy of GM's viability plan presented in February 2009 is available at http://researcharchives.com/t/s?39a4 General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D. N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors' restructuring officer. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsels. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. GRS ORION: Shareholders' Final Meeting Set for June 26 ------------------------------------------------------ The shareholders of GRS Orion Fund Ltd. will hold their final meeting on June 26, 2009, at 8:30 a.m., to receive 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 MARATHON PETROLEUM: Members' Final Meeting Set for June 26 ---------------------------------------------------------- The members of Marathon Petroleum Western Siberia Limited will hold their final meeting on June 26, 2009, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Y. R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A. MARATHON PETROLEUM: Members' Final Meeting Set for June 26 ---------------------------------------------------------- The members of Marathon Petroleum El Manzala Limited will hold their final meeting on June 26, 2009, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Y. R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A. MARATHON POWER: Members' Final Meeting Set for June 26 ------------------------------------------------------ The members of Marathon Power India Limited will hold their final meeting on June 26, 2009, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Y. R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A. MARATHON QATAR: Members' Final Meeting Set for June 26 ------------------------------------------------------ The members of Marathon Qatar GTL Limited will hold their final meeting on June 26, 2009, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Y. R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A. NEW DIMENSION: Shareholders' Final Meeting Set for July 8 --------------------------------------------------------- The shareholders of New Dimension USD Fund Limited will hold their final meeting on July 8, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Linburgh Martin c/o Kim Charaman Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KYI-1102 Telephone: (345) 949 8455 Facsimile: (345) 949 8499 NOVA GAS: Shareholders' Final Meeting Set for June 25 ----------------------------------------------------- The shareholders of Nova Gas Sur Gas Distribution Ltd. will hold their final meeting on June 25, 2009, to receive the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Donald Marchand John Scott TransCanada PipeLines Limited 450 - 1st Street S.W. Calgary, Alberta T2P 5H1, Canada OPTIMUM LTD: Final General Meeting Set for August 12 ---------------------------------------------------- Optimum Ltd. will hold its final general meeting on August 12, 2009, at 12:00 noon to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands Telephone: 945-8859 Facsimile: 949-9793/4 ========= C H I L E ========= CORPBANCA: Fitch Affirms Support Rating Floor at 'BB-' ------------------------------------------------------ Fitch Ratings has affirmed Corpbanca's ratings: -- Foreign and local currency long-term Issuer Default Rating at 'BBB+'; -- Foreign and local currency Short-term IDR at 'F2'; -- Long-term national rating at 'AA-(cl)'; -- Short-term national rating at 'N1+(cl)'; -- Individual Rating at 'C'; -- Support Rating at '3'; -- Support Rating Floor at 'BB-'. The Rating Outlook on the IDRs is revised to Negative from Stable. Concurrently, Fitch has affirmed Corpbanca's debt ratings: -- CLF23 million senior unsecured bonds national long-term rating at 'AA-(cl)'; -- US$200 million bonds programme foreign currency long-term rating at 'BBB+'; -- CLF14 million subordinated bonds national long-term rating at 'A+(cl)'. -- National rating of its equities at 'Primera Clase nivel 2(chl)' The Negative Outlook reflects the negative trend seen on Corpbanca's capital adequacy ratios and on its profitability. Downward rating movement could occur if the pressure on both aspects continues. The ratings also factor in Corpbanca's adequate financial performance, good asset quality and high dependence on concentrated, although stable, time deposits. Corpbanca's profitability is lower that that of its local peers mainly due to a lower proportion of higher yielding retail portfolio in its loan book. In addition, it has been under pressure in the last few years due to heavy investments in its commercial structure, which should bear fruit in the medium-term, and more recently to higher loan loss provisions. The bank has actively managed its balance sheet to benefit from the variation of the inflation and interest rates, which rose in 2008 and then declined in the first quarter of 2009 (1Q'09). This decrease was partly offset by significant gains on its available for sale portfolio in 1Q'09 due to the sharp decline in interest rates. Loan loss provisions and charge-offs rose in 2008 and 1Q'09 in line with the economic slowdown in Chile, and could continue to pressure results in the months ahead. Fitch will closely monitor the evolution of LLPs in the next few quarters, which are expected to continue to rise, albeit not at the same level seen in 2008 and 1Q'09. Corpbanca's loan loss reserve coverage of its impaired loans was 86% at end-March 2009, higher than that of its peers. CorpBanca's capital adequacy was one of the bank's main strengths, but it has steadily declined since 2003 due to strong growth, decreased profitability and higher dividends; Fitch would view this trend negatively if it were to continue. At the end of 1Q'09, the bank's total capital/risk-weighted assets ratio was adequate at 10.8%, and basic capital to risk-weighted assets was 7.8% at the same date. Corpbanca has issued subordinated debt, which has a high equity credit and accounted for only 16.1% of qualifying capital, a low level by local standards. Corpbanca is a mid-sized bank that operates in almost all market segments, through a multi-product strategy. At the end of March 2009 it had 109 branches and 7.1% of the Chilean financial system's loans and deposits. It is 50.86% owned by Corp Group Banking S.A., 9.45% by Cia. Inmobiliaria y de Inversiones SAGA (entity controlled by Alvaro Saieh Bendeck and his family), and the remaining 39.69% is held by domestic and foreign institutional investors. In turn, CGB is controlled by a group of Chilean businessmen, in which the main individual shareholder is Alvaro Saieh, who together with his family maintains indirectly a 39.01% stake of Corpbanca. =============== C O L O M B I A =============== ECOPETROL SA: Inks COL$2.2 Billion Loan Facility With Local Banks ----------------------------------------------------------------- Ecopetrol SA said it has entered into a loan facility with a group of local banks in the amount of COL$ 2.2 billion under these terms: * Term of Facility: 7 years, including a 2-year grace period * Rate: DTF (fixed term deposit) + 4% (anticipated quarterly rate) * Amortization: Bi-annual * Guarantee: (coverage: 1.2 times) Stock pledge of Oleoducto Central S.A. (Ocensa), Refineria de Cartagena S.A. (Reficar), and Polipropileno del Caribe S.A. (Propilco), companies in which Ecopetrol has either direct or indirect equity interests. * Use of Proceeds: Company's investment program. * Participating banks: BANK NAME SHARE ======== ===== BANCOLOMBIA 33.8% DAVIVIENDA 20.3% BANCO DE BOGOTA 10.4% BANCO AGRARIO 8.9% BBVA 8.1% BANCO DE OCCIDENTE 4.5% BANCO POPULAR 5.3% BANCO SANTANDER 2.7% BANCO COMERCIAL AV VILLAS 2.3% BANCO DE CREDITO 2.9% COLMENA 0.9% TOTAL 100.0% 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. ======= C U B A ======= * CUBA: Foreign Income Cut by US$1 Billion Seen ----------------------------------------------- Cuba is facing a "very hard" economic blow in 2009 as depressed nickel prices and reduced tourism revenue could slash foreign income by US$1 billion, Nelson Acosta of Reuters reports, citing economic commentator Ariel Terrero. The report relates Mr. Terrero said the Cuban government was already reducing imports and limiting production in some industries in response to a growing cash crunch. According to the report, Mr. Terrero said prices for nickel had averaged US$11,000 per tonne so far in 2009, down from US$21,000 per tonne last year, and if they continued at current levels, would cut the island's nickel income for the year by US$720 million. Tourism visits had increased in the first quarter, but revenue had fallen 13.7 percent, which over the year would result in a drop in income of US$300 million from 2008, he added. "We are talking about losses that could be US$1 billion in a country that brings in about US$4 billion for exports (a year)," the report quoted Mr. Terrero as saying. Foreign businesses, the report notes, have been complaining about slow payments and inability to transfer cash abroad, while Cuban banks have warned they are short of hard currency. Reuters recalls the government initially had forecast 6 percent economic growth in 2009, but Economy and Planning Minister Marino Murillo said the forecast had been reduced to slightly more than 2%. * * * The country continues to carry Moody's Caa1 foreign currency rating with stable outlook. =========== G U Y A N A =========== * GUYANA: IDB Increases Financial Support ----------------------------------------- Inter-American Development Bank (IDB) said it is increasing the concessionary funds available for Guyana, Bolivia, Honduras and Nicaragua, through a supplementary allocation, total lending can expand 39%, from US$349 million per year in 2007 and 2008, to US$485 million per year in 2009 and 2010, Caribbean360.com reports. According to the report, the IDB support is aimed to help overcome the effects of the global economic crisis. Caribbean360.com relates the supplementary debt will enable Guyana to borrow up to US$28.6 million from US$20.6 million. The IDB, the report notes, said the measures were approved by the Board following a careful analysis that indicated that the four countries have the capacity to take on the additional debt without degrading their risk of debt distress, and that the additional lending would not threaten the long-term sustainability of the Fund for Special Operations (FSO). =========== M E X I C O =========== BANCO DE COSTA: Fitch Affirms Issuer Default Rating at 'BB' ----------------------------------------------------------- Fitch Ratings has affirmed Banco de Costa Rica, S.A.'s ratings: -- Long-term foreign currency Issuer Default Rating at 'BB'; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BB+'; -- Short-term local currency IDR at 'B'; -- Individual at 'C/D'; -- Support at '3'; -- Support Rating Floor at 'BB'; -- National-scale long-term rating at 'AA+(cri)'; -- National-scale short-term rating at 'F1+(cri)'. The Rating Outlook is revised to Stable from Positive. Costa Rica's government (long-term foreign currency IDR 'BB'; local currency IDR 'BB+'; Stable Outlook) is BCR's sole shareholder, and it grants an explicit guarantee for BCR and other state-owned banks. However, the ability to provide support could be limited, given the country's sub-investment grade sovereign rating and fiscal constraints. The aforementioned explicit guarantee underpins the bank's IDRs, support rating and support rating floor. In turn, BCR's Individual rating reflects the bank's strong franchise, as well as adequate capital levels, delinquency, funding and liquidity. The Individual rating also considers the worsening environment, ample currency risk, modest core profitability, high borrower concentrations and limited reserves. The Outlook revision to Stable from Positive reflects Fitch's view that upside potential for the bank's Individual rating has been reduced recently, in view of weakening prospects in terms of profitability and asset quality, some of the potential triggers for a rating upgrade that Fitch highlighted when the Outlook was revised to Positive in December 2007. Over the medium-term, BCR's Individual rating could be positively influenced by further improvements in core profitability (core operating earnings and BICSA's results); declining credit risk in the form of concentrations and FX exposure; sustained liquidity, funding stability and capitalization; and proven resilience amidst the economic downturn. In turn, its Individual rating could be negatively affected if earnings and/or asset quality deteriorate beyond expectations under the less benign economic prospects going forward. BCR has maintained better than local peers profitability, although this is relatively low considering the country's still high inflation. Margins are somewhat tight and revenue diversification is low. Fitch believes that the performance will remain reasonable, but upward-trended provisions from unsustainably low previous levels will increasingly pressure earnings. Delinquency has remained at exceptionally low levels recently, although it has increased gradually. In view of the worsening economic outlook, borrower and economic sector concentrations could jeopardize the bank's ability to sustain asset quality metrics. Indirect credit exposure arises from a highly dollarized balance sheet (42% of local loans at end-2008, a large portion of these granted to non- US$ generating clients). Aggressive loan growth in recent years and limited loan loss reserves (1.26% of total loans) are additional challenges. Liquidity is sound given an ample cushion of liquid assets (41% of total funding), a sizeable core deposit base (81% of total liabilities) and adequate contingent liquidity mechanisms offered by the financial authorities to local banks. BCR's capitalization is comfortable given its inherent risks (equity-to-assets: 11.4% at end-2008). Capital is largely unencumbered, and has mirrored loan growth, a trend that Fitch expects to continue going forward. Established in 1877 and wholly-owned by the government, BCR is one of the oldest banks in Central America and the second largest in Costa Rica, with market shares by assets, loans and deposits of 18%, 16% and 20%, respectively, at end-2008. In addition to three small local wholly-owned subsidiaries in non-credit activities, it also has a 51% stake (increased from 20% in 2005) in Banco Internacional de Costa Rica, a Panama-based bank established in 1976, specialized in corporate banking, in which local peer Banco Nacional de Costa Rica (also fully government-owned) holds the remainder 49% stake. BCR has consolidated BICSA since November 2005. BANCOPPEL SA: Moody's Downgrades Global Currency Ratings to 'B3' ---------------------------------------------------------------- Moody's Investors Service downgraded BanCoppel, S.A. long-term global local currency and foreign currency deposit ratings to B3 from B2. On its Mexican National Scale, Moody's also downgraded BanCoppel's long-term deposit ratings to B1.mx from Ba1.mx. Moody's confirmed BanCoppel's bank financial strength rating of E+. All ratings have a negative outlook. The rating action on BanCoppel concludes the review for possible downgrade initiated on May 4, 2009. The downgrade of BanCoppel's deposit ratings reflect the downgrade of the bank's stand-alone baseline credit assessment to B3 from B2, as well as the bank's weakening financial fundamentals including continued net losses in the context of the current economic downturn and the potential impact on the bank's capital adequacy. These concerns are exacerbated by the continuing payment default of Hipotecaria Credito y Casa (rated Ca/Not Prime) -- a major entity of Grupo Coppel and a sister company of BanCoppel -- which increases the level of uncertainty regarding the group's ability and willingness to continue injecting capital into the bank as it has in the past, and in line with the bank's capitalization plans. In explaining the negative outlook placed on all the ratings, including the bank's BFSR, Moody's noted that delays or failure by the shareholders to provide BanCoppel with additional capital could jeopardize the bank's capitalization. This is particularly relevant because of high capital consumption rates stemming from the bank's virtually start-up operations, as well as from rapid asset expansion and high credit-related losses reported since the bank's inception in 2007. Moody's indicated that BanCoppel's deposit ratings no longer incorporate the potential extraordinary support the bank might receive from Coppel S.A. de C.V. and, therefore, the ratings are reflective of the bank's stand-alone creditworthiness. Coppel ranks among Mexico's largest retailer store chains catering to low and medium income customers. The last rating action on BanCoppel was on May 04, 2009, when Moody's downgraded BanCoppel's long-term GLC and foreign currency deposit ratings to B2 from Ba3, and placed them on review for further possible downgrade. On its Mexican National Scale, Moody's also downgraded BanCoppel's long- and short-term ratings to Ba1.mx/MX-4 from A3.mx/MX-2 and placed the long-term rating on review for further possible downgrade. Moody's also placed BanCoppel's bank financial strength rating of E+ on review for possible downgrade. The long-term Mexican National Scale rating of B1.mx indicates issuers or issues with weak creditworthiness relative to other domestic issuers. The short-term Mexican National Scale rating of MX-4 indicates that the issuer has a below average ability to repay short-term senior unsecured debt obligations relative to other domestic issuers. BanCoppel is headquartered in Mexico City. As of March 2009, the bank had around Mx$3.5 billion in assets. The ratings actions were taken: -- Long term global local currency deposits: Downgraded to B3 from B2, with negative outlook -- Long term foreign currency deposits: Downgraded to B3 from B2, with negative outlook -- Long term Mexican National Scale: Downgraded to B1.mx from Ba1.mx, with negative outlook -- Bank financial strength rating of E+: Confirmed, Outlook changed to negative The ratings were affirmed: -- Global local currency deposits, short term: Not Prime -- Foreign currency deposits, short term: Not Prime -- Short term Mexican National Scale of MX-4 GRUPO PETROTEMEX: Fitch Downgrades Issuer Default Rating to 'BB+' ----------------------------------------------------------------- Fitch Ratings has downgraded the ratings of Grupo Petrotemex, S.A., de C.V.: -- Local currency Issuer Default Rating to 'BB+' from 'BBB-'; -- Foreign currency IDR to 'BB+' from 'BBB-'; -- Petrotemex's US$75 million privately placed senior notes due 2012 to 'BB+' from 'BBB-'; -- DAK Americas US$115 million guaranteed senior notes due 2014 to 'BB+' from 'BBB-'. The Rating Outlook remains Negative. The downgrade of Petrotemex's ratings is due to an increase in the company's leverage as a result of large losses on its derivative contracts. The Negative Outlook reflects the significant refinancing risk the company will face during 2009 and 2010, as well as the challenging financial market conditions and the current economic environment. Petrotemex had $641 million of total debt as of March 31, 2009, an increase from $522 million as of Sept. 30, 2008. The increase in debt was primarily due to losses on financial derivative instruments such as commodity related hedges (natural gas, gasoline and ethylene) and interest rate swaps. Historically, Petrotemex has had committed credit lines to support liquidity; during 2008 the company used these facilities to fund financial derivative instruments (collateral, settlements and unwinds) and working-capital needs. The company's debt as of March 31, 2009, consists of $150 million of committed lines that have been drawn, $142 million of private placements, $305 million of amortizing syndicated bank loans, $10 million of ECA financing and $35 million of short-term bank debt. Petrotemex's debt is heavily weighted to the short-term; the company had $241 million of short-term debt and $111 million of cash and marketable securities at the end of March 2009. The company should be able to meet its short-term debt maturities using available cash and free cash flow generation and by refinancing approximately $90 million. For the last 12 months ended March 31, 2009, Petrotemex generated $235 million of EBITDA, an increase from $172 million for the LTM ended March 31, 2008. The improvement in the company's EBITDA was due to a number of factors, including better conversion costs and the addition of new production capacity. To generate free cash flow for debt repayment Petrotemex intends to reduce capital expenditure levels to maintenance amounts. Petrotemex is the sole producer and second largest producer/supplier of PTA, the basic raw material used in the polyester production chain, in Mexico and the Americas, respectively. Also Petrotemex is the second largest producer/supplier of PET in the Americas. The company's credit ratings continue to reflect its strong domestic and global competitive position, its long-term supply and customer arrangements, geographically diversified operating base and that 80% of its sales go to markets less exposed to downward economic cycles (ie, food, beverages and cleaning). * MEXICO: Recession Will Ease in Coming Two Quarters ---------------------------------------------------- Mexico's recession will ease in the coming two quarters after gross domestic product declined sharply in the three months through June 30, Jens Erik Gould of Bloomberg News reports, citing Finance Minister Agustin Carstens. The report relates Mr. Carstens said the economy is returning to normal quickly after an outbreak of swine flu, citing an almost complete recovery in domestic tourism. According to the report, Goldman Sachs Group Inc. forecasts GDP will shrink 8.5% this year as a slump in the U.S. reduces tourism, remittances and demand for exports. The report notes Central Bank Governor Guillermo Ortiz said Mexico must improve tax collection and make the labor market less rigid to avoid having its credit rating cut. Bloomberg News says the government forecasts a 5.5% decline in GDP in 2009 from a year earlier. The report relates Mr. Carstens sees the economy posting almost zero growth in the fourth quarter, which would be an improvement from the third quarter. =========== P A N A M A =========== BANCO INTERNACIONAL: Fitch Affirms 'BB' Issuer Default Rating ------------------------------------------------------------- Fitch Ratings has affirmed Panama-based Banco Internacional de Costa Rica, S.A.'s ratings: -- Long-term foreign currency Issuer Default Rating (IDR) at 'BB'; -- Short-term foreign currency rating at 'B'; -- Individual at 'C/D'; -- Support at '3'; -- National-scale long-term rating at 'A+(pan)'; -- National-scale short-term rating at 'F1(pan)'. The Rating Outlook is Stable. BICSA's IDRs and support ratings reflect the commercial and operating support it receives from its main shareholder, Costa Rican government-owned Banco de Costa Rica (BCR, 51%-stake in BICSA and rated 'BB' with a Stable Outlook by Fitch). The Individual rating considers its adequate capitalization and risk management, enhanced managerial team and minor problem loans, but also factors in its high borrower and creditor concentrations, modest profitability and the challenges arising from the less benign operating environment. Increased competition and scarcer and costlier funding will continue constraining the bank's relatively modest margins (1Q'09 NIM: 3.4%) and overall profitability in the near future. Fitch expects that the confluence of well-contained operating costs and gradually increasing revenues should benefit the bank's performance over the medium-term, although most improvements will take some time before materially impacting earnings. The bank is largely exposed to borrower concentrations, which have somewhat increased recently. The enhanced risk management approach provides some comfort relating to the likely growing credit costs, but the level of loan loss reserves (1.2% of total lending at 1Q'09) is very low in view of the concentrated portfolio. BICSA's reliance on wholesale funding is a mounting challenge amidst the current operating environment. Customer deposits are the main funding source, but these are highly concentrated and potentially less stable. Offsetting factors are the short-term nature of most assets, a recently increased cushion of liquid assets and the bank's ability to adequately manage liquidity amidst the adverse market conditions in recent months. The capital-to-assets ratio is sound (13.56% at 1Q09) and mostly unencumbered. While capital adequacy has recently improved, this could be challenged under the currently adverse conditions. If required, Fitch believes that support to BICSA could be provided by its major shareholder, BCR, although its ability to provide full and timely support to BICSA could be limited by legal or political issues. BICSA does not benefit from the sovereign guarantee that Costa Rican state-owned banks have. Downside risk for the bank's long-term ratings would stem from the discontinuation of BCR's ability and/or willingness to provide support, which Fitch considers unlikely at present. In turn, BICSA's IDRs would be positively influenced over time by an upgrade of BCR's IDRs or, alternatively, BICSA's own Individual rating. Established in Panama in 1976, BICSA specializes in wholesale banking. Its shareholders are the two largest Costa Rican banks, both of which are government-owned. It has an agency in Miami and representative offices in Guatemala, Nicaragua and El Salvador. The vast majority of its corporate business is carried out with Costa Rican customers. BICSA's core business has increasingly migrated towards corporate banking (92% of total loans at end- 2008) and, to a lesser extent, correspondent services (6%), since the latter has been gradually declining. While the bank intends to maintain its focus in these two segments, it also aims at further expanding funding provided by Costa Rican and Panamanian customer deposits. ================= V E N E Z U E L A ================= * VENEZUELA: Gov't Takes Over Gas Compression Units --------------------------------------------------- Venezuelan President Hugo Chavez's government took over 70 gas compression units in 14 plants in several parts of the country; including the Maracaibo and Orinoco oil heartlands; aimed to increase state control of the economy, Ana Isabel Martinez of Reuters reports. "We continue advancing, recovering the control, property and management of all these plants and compression units. Nobody will stop us in this," the report quoted Mr. Chavez as saying. "We have a timetable to take control of the production plants in the Orinoco belt." As reported in the Troubled Company Reporter-Latin America on May 12, 2009, Bloomberg News said Mr. Chavez seized assets from 60 oilfield services companies using a law the national assembly passed. The report related state-owned Petroleos de Venezuela SA (PDVSA) worked to take over operations from companies that provided services such as water and gas compression and maritime support. "Today, the private services companies disappear, we don't need them, the people and workers can do the labor and be more efficient," the report quoted Mr. Chavez as saying. "We're going to bury capitalism in Venezuela." Venezuela seized two gas injection units called El Furrial and PIGAP II from Tulsa, Oklahoma-based Williams Cos., PDVSA said in a statement obtained by Bloomberg News. The report recalled that on April 30, Williams Cos. said it declared PDVSA in default for non-payment and might cease operations in Venezuela. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. *********** 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 * *