/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090624.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, June 24, 2009, Vol. 10, No. 123 Headlines A N T I G U A & B A R B U D A STANFORD INT'L BANK: Owner Charged With 21 Counts of Fraud STANFORD INT'L BANK: SFG Receiver Defends US$20-Mln Fee Request A R G E N T I N A AGENCIA DE INVESTIGACIONES: Proofs of Claim Due on August 20 CLINICA NUESTRA: Proofs of Claim Verification Due on August 17 D & D DISTRIBUCION: Proofs of Claim Verification Due on August 4 EMPRESAS NIGRO: Trustee Verifying Proofs of Claim Until October 1 GLOBAL CROSSING: Completes Data Center Expansion in Argentina MOLINO NUEVO: Trustee Verifying Proofs of Claim Until October 23 SOLO EMPANADAS: Asks for Opening of Preventive Contest TELEFONICA ARGENTINA: Telefonica SA Eyes 1.8% Remaining Stake WEST SECURITY: Trustee Verifying Proofs of Claim Until August 14 * ARGENTINA: Economy May Shrink This Year, Analyst Says B E R M U D A SYNCORA GUARANTEE: BCP Offer for 55 RMBS Classes Expires Today TNT GLOBAL: Creditors' Proofs of Debt Due on July 1 TNT GLOBAL: Members' Final Meeting Set for July 24 TYCO ELECTRONICS: Increases Late Tender Offer Consideration B R A Z I L BANCO DO BRASIL: Won't Pursue Plans to Acquire Stake in Banestes BANCO DO BRASIL: To Pay BRL456.1 Million in Dividends on Aug. 27 COSAN SA: Prepares Two-Pronged Takeout of BRL1.2-Billion Debt COMPANHIA SIDERURGICA: Restarts Second Furnace After 90 Days GERDAU AMERISTEEL: Inks Term Loan Amendment Deal With Lenders GERDUA SA: Renegotiates US$3.7 Billion Debt ITAU GROUP: Fitch Affirms Support Rating Floor at 'BB+' MINERVA SA: Merges Minerva Log S.A. and Loin Investments Units MINERVA SA: Chief Financial & Investor Relations Officer Resigns * BRAZIL: To Launch Lending Funds in Two Weeks COMPANHIA SIDERURGICA: Hires 1,200 Workers at Volta Redonda Plant C A Y M A N I S L A N D S ALBAPE INVESTMENT: Creditors' Proofs of Debt Due on July 23 D.B. ZWIRN: Placed Under Voluntary Wind-Up D.B. ZWIRN: Creditors' Proofs of Debt Due on July 18 EIRE HALIFAX: Placed Under Voluntary Wind-Up EIRE MANCHESTER: Placed Under Voluntary Wind-Up FAST CO: Placed Under Voluntary Wind-Up GLOBAL OPPORTUNITY: Placed Under Voluntary Wind-Up GLOBALIS SOVEREIGN: Placed Under Voluntary Wind-Up JEFFERIES COMMIDITY: Creditors' Proofs of Debt Due on July 22 JEFFERIES COMMODITY: Creditors' Proofs of Debt Due on July 22 SCM QUALIFIED: Creditors' Proofs of Debt Due on July 22 SKYLINER FUND: Placed Under Voluntary Wind-Up SOUTHPORT ENERGY: Placed Under Voluntary Wind-Up WESTERN INVESTMENT: Placed Under Voluntary Wind-Up YAUPON FUND: Placed Under Voluntary Wind-Up C O L O M B I A BANCOLOMBIA: Fitch Affirms Long-Term Issuer Credit Rating at 'BB+' DOLE CO: Denies Involvement in AUC Killings at Colombia D O M I N I C A N R E P U B L I C JETBLUE AIRWAYS: To Service Flights to Dominican Republic E L S A L V A D O R BANCO AGRICOLA: Fitch Puts Negative Outlook on Low-B IDR Ratings BANCO HSBC: Fitch Puts Neg. Outlook on 'C/D' Individual Rating SCOTIABANK EL SALVADOR: Fitch Puts Neg. Outlook on Ratings G U Y A N A GLOBE TRUST: Liquidator Sells Building to Recover Funds M E X I C O CORPORACION DURANGO: U.S. Court Confirms Restructuring Plan V E N E Z U E L A PDVSA: Absorbs 1,000 New Workers PDVSA: Saves US$690 Million a Year With Nationalized Barges PDVSA: To Increase Bond Size Sale to US$3 Billion - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L BANK: Owner Charged With 21 Counts of Fraud ---------------------------------------------------------- Stanford International Bank Limited owner Robert Allen Stanford and four others -- former Stanford Financial Group (SFG) Chief Investment Office Laura Pendergest-Holt; former Antigua financial regulatory agency chief Leroy King; and Stanford-affiliated accountants, Mark Kuhrt and Gilberto Lopez -- were charged with 21 counts of fraud, money-laundering and obstruction in a multi- billion scam, Olivia Hampton of Agence France-Presse News (AFP) reports. The U.S. Securities and Exchange Commission, on Feb. 17, charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include, SIBL, Stanford Group Company (SGC), and investment adviser Stanford Capital Management. The SEC also charged SIBL chief financial officer James Davis as well as Laura Pendergest- Holt, chief investment officer of Stanford Financial Group (SFG), in the enforcement action. According to a TCR-LA report on April 8, citing Bloomberg News, U.S. District Judge David Godbey seized all of Mr. Stanford's corporate and personal assets and placed them under the control of SFG court- appointed receiver Ralph Janvey. Assistant Attorney General Lanny Breuer, as cited by AFP, announced in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. AFP notes the indictment came from a grand jury in Houston, Texas that had been investigating Stanford Financial Group. As reported in the Troubled Company Reporter-Latin America on June 23, 2009, RadioJamaica said Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on criminal charges. MailOnline News related Mr. Stanford -- who was arrested in Fredricksburg, Virginia -- will go before a court in Richmond later. AFP relates Mr. Lopez and Mr. Kuhrt, who were arrested June 19, are were set to make appearances in a Houston court; while Ms. Pendergest-Holt will appear in a Houston court next week on fresh charges. Meanwhile, Svea Herbst-Bayliss of Reuters says Mr. Stanford's investors took solace from his indictment, but many remained devastated by their losses and frustrated at their inability so far to recover the money. According to Reuters, investors applauded his arrest in Virginia and indictment on federal fraud, conspiracy and obstruction charges. However, the report relates the arrest does little to ease the pain of the 30,000 investors the SEC estimates were affected by the ponzi scheme. Reportedly, Mr. Stanford has denied all allegations against him. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. STANFORD INT'L BANK: SFG Receiver Defends US$20-Mln Fee Request --------------------------------------------------------------- Stanford Financial Group (SFG) court-appointed receiver, Ralph Janvey, defended his US$20 million fee request in recovering assets for Stanford International Bank Limited (SIBL)'s investors, who were allegdely victims of a multi-billion ponzi scheme, Laurel Brubaker Calkins of Bloomberg News reports. The report relates Mr. Janvey said his legal fees shouldn’t suffer “arbitrary and across-the-board penalties’’ because U.S. regulators and investors have complained he wants too much of what little’s left of Stanford Financial Group’s assets. As reported in the Troubled Company Reporter-Latin America on May 19, 2009, Bloomberg News said Mr. Janvey requested US$20 million from a judge to cover fees and expenses during two months of work on behalf of investors allegedly swindled by Mr. Stanford. The report related Mr. Janvey, citing a filing by his lawyers, hired investigators, attorneys and forensic accountants from 14 firms to track assets scattered worldwide. The U.S. Securities and Exchange Commission, on Feb. 17, charged Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. Mr. Stanford's companies include, SIBL, Stanford Group Company (SGC), and investment adviser Stanford Capital Management. According to a TCR-LA report on April 8, citing Bloomberg News, U.S. District Judge David Godbey seized all of Mr. Stanford's corporate and personal assets and placed them under the control of Mr. Janvey. Bloomberg News relates, Mr. Janvey's lawyer Kevin Sadler, in papers filed June 19 in Dallas federal court, said Mr. Janvey voluntarily cut US$5 million off the US$20 million legal bill he submitted for his first two months’ work on the Stanford estate, only to have regulators call for an additional 20%. “The receiver and 14 firms rendering services to the estate (and thus to all those who ultimately receive any distribution of estate assets) have been footing the entire bill for this receivership for four months now,’’ Mr. Sadler was quoted by the news agency as saying. It is “untenable’’ to keep working without pay, he added. A TCR-LA report on June 9, citing Reuters, related Mr. Stanford's lawyers said Mr. Janvey's US$20 million fee request is "exorbitant.” "There is no law or court order that authorizes or justifies the receiver's expenditures of nearly US$20 million in eight weeks," Stanford's court filing in federal court in Dallas, said, the report related. The report noted Mr. Stanford accused Mr. Janvey of wasting money and mishandling the estate with plans such as selling assets like Stanford's yacht, the Sea Eagle, at cut-rate prices. Reuters said that Mr. Stanford's lawyers argued that shutting Mr. Stanford's businesses and terminating their employees "may have already caused irreparable losses to the estate," and cost taxpayers billions of dollars. Mr. Sadler, as cited by Bloomberg, said Mr. Janvey expected investors and a competing receiver appointed by the Antiguan government to complain about his bill, because those groups want to keep as much of Stanford’s remaining assets for themselves as possible. Bloomberg News says, according to Mr. Janvey, as of June 17, the receiver had US$75 million in readily available cash and is fighting for control of US$350 million in Stanford accounts in Switzerland, Canada and the UK. The report related Mr. Janvey has identified potential claw-back claims against more than US$200 million still frozen in Stanford customers’ US and foreign brokerage accounts. As of June 18, the report notes, these earmarked sums include US$16.8 million in interest payments and redemptions of US customers’ CDs, and US$149.4 million in CD interest and redemption payments made to former Stanford financial advisers. The report adds that also included in the identified sums are US$42.3 million in front-end loans and CD commissions paid to former Stanford financial advisers, some of whom Janvey has sued as alleged participants in the fraud scheme. 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 ================= AGENCIA DE INVESTIGACIONES: Proofs of Claim Due on August 20 ------------------------------------------------------------ The court-appointed trustee for Agencia de Investigaciones Cipol S.A.C.E.I.'s bankruptcy proceedings will be verifying creditors' proofs of claim until August 20, 2009. The trustee will present the validated claims in court as individual reports on October 1, 2009. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on November 13, 2009. CLINICA NUESTRA: Proofs of Claim Verification Due on August 17 -------------------------------------------------------------- The court-appointed trustee for Clinica Nuestra Señora de Lourdes SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until August 17, 2009. D & D DISTRIBUCION: Proofs of Claim Verification Due on August 4 ---------------------------------------------------------------- Maria Cristina Salzano, the court-appointed trustee for D & D Distribucion Directa SA's reorganizations proceedings, will be verifying creditors' proofs of claim until August 4, 2009. Ms. Salzano will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 49, 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. Creditors will vote to ratify the completed settlement plan during the assembly on March 3, 2010. The Trustee can be reached at: Maria Cristina Salzano Pringles 463 Buenos Aires, Argentina EMPRESAS NIGRO: Trustee Verifying Proofs of Claim Until October 1 ----------------------------------------------------------------- The court-appointed trustee for Empresas Nigro S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 1, 2009. The trustee will present the validated claims in court as individual reports on November 13, 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 December 29, 2009. GLOBAL CROSSING: Completes Data Center Expansion in Argentina ------------------------------------------------------------- Global Crossing Ltd. said it has completed its Data Center expansion in Buenos Aires. The company said a new electrical subsystem increases power 120 percent, enabling the Data Center to serve more customers. In a first stage, the Data Center operations area will be extended 115 sq. meters to satisfy the growing demand for services. New office space will be added as well. Global Crossing's Data Center solutions provide customers with housing, hosting, processing storage, backup, monitoring and security -- as well as managed services -- enabling a secure data management for their technological platform and applications without the expense of a customer premise-based solution. The Argentina Data Center has also been implementing several green initiatives to reduce its carbon footprint, including implementing server virtualization and reducing energy consumption. The company has taken a "bottom up" approach, understanding its customers' needs and adjusting and adapting its facilities to best meet those needs in an energy efficient manner. The newly expanded Data Center, located in the neighborhood of Chacarita since 2000, is part of Global Crossing's Latin America Data Centers Network. All of the Data Centers in the network are being designed to perform to similar standards, following identical processes, and offer comparable products. Global Crossing Security Solutions protect a company's sensitive information and safeguard hardware, software, and license investments, minimizing loss and claim risks. On Demand Solutions allow customers to use only what they need, whenever they need it, including network capacity, storage, processing power, and managed services. Continuity Solutions provide preventive tools and redundancy capabilities to keep companies operating, or to help them minimize potential financial contingency risks. In order to provide the highest service level for each solution, Global Crossing supports technologies from HP, Hitachi Data Systems, Sun, Dell, Oracle, Microsoft, Symantec, VMWare and Red Hat for its On Demand and Continuity solutions in the company´s data centers, and technologies from Juniper, Cisco, Checkpoint, Nokia, Kobil, Vasco, Sonicwall and IBM for its Security portfolio. Several of Global Crossing's data centers in Latin America -- including Buenos Aires -- have received a Statement on Auditing Standards (SAS) 70 review, which is a widely recognized auditing standard that evaluates the design and operating effectiveness of controls that have specific objectives, such as the security of financial information. This review is especially important to large businesses and is being increasingly accepted by government organizations and private companies that seek an independent opinion to confirm the effectiveness of a provider's processes and internal controls structure. It also simplifies their auditing processes and potentially can save them time and reduce their costs. Global Crossing's Security Operation Center (SOC) has been certified by the ISO 9001:2000 international standard for quality control and satisfaction management, while our data centers in Colombia, Brazil, Argentina, and Chile are SAP Hosting Partners. All of these services are managed according to ITIL-defined processes. About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- is a leading global IP solutions provider with the world's first integrated global IP-based network. The company offers a full range of secure data, voice, and video products to approximately 40 percent of the Fortune 500, as well as to 700 carriers, mobile operators and ISPs. It delivers services to more than 690 cities in more than 60 countries and six continents around the globe. In Latin America, Global Crossing´s business has operations in Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru, Mexico, Venezuela, the United States (Florida) and the Caribbean region. In addition to its IP-based, fiber-optic network, Global Crossing's regional infrastructure includes 15 metropolitan networks and 15 world-class data centers located in the main business centers of Latin America. * * * As reported by the Troubled Company Reporter-Latin America on Jan. 23, 2009, Moody's Investors Service assigned a Caa1 corporate family rating to Global Crossing Limited and a B2 rating to the company's US$350 million senior secured term loan. The preferential access to realization proceeds provided by the security package allows the term loan credit facility's rating to be B2, two notches above the Caa1 CFR. GCL was also assigned a speculative grade liquidity rating of SGL-3 (indicating adequate liquidity). The ratings outlook is stable. MOLINO NUEVO: Trustee Verifying Proofs of Claim Until October 23 ---------------------------------------------------------------- The court-appointed trustee for Molino Nuevo S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until October 23, 2009. The trustee will present the validated claims in court as individual reports on December 4, 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 February 18, 2010. SOLO EMPANADAS: Asks for Opening of Preventive Contest ------------------------------------------------------ Solo Empanadas SA asked for the opening of preventive contest. The company stopped making its payments on January 13, 2009. TELEFONICA ARGENTINA: Telefonica SA Eyes 1.8% Remaining Stake ------------------------------------------------------------- Telefonica SA said it will buy the remaining 1.8% of shares it dosen't own in its Argentine unit, Buenos Aires-based Telefonica de Argentina SA, for EUR24 million, Jason Sinclair of Dow Jones Newswire reports. The report relates, citing a company filing to the Spanish market regulator, Telefonica said it would offer 1 Argentinian peso a share - or its equivalent in US dollars - for the roughly 126 million shares of Telefonica Argentina it doesn't control. Sarah Morris and Judy MacInnes of Reuters recall, in early May, a minority TASA shareholder called on Telefonica to launch an offer for the remaining shares, pointing to Argentine legislation which obliges companies to make a 100% offer once they have more than 95%. Reuters notes that at the end of March, Telefonica had about 21 million customers in Argentina, 15 million of which were mobile customers. About Telefonica de Argentina Buenos Aires-based Telefonica de Argentina SA -- http://www.telefonica.com.ar/-- provides telecommunication services, which include telephony business both in Spain and Latin America, mobile communications businesses, directories and guides businesses, Internet, data and corporate services, audiovisual production and broadcasting, broadband and Business-to-Business e- commerce activities. * * * As reported in the Troubled Company Reporter-Latin America on May 11, 2009 Fitch Ratings these rating actions on Telefonica de Argentina S.A.: -- Local currency Issuer Default Rating affirmed at 'BB-'; -- Foreign currency IDR affirmed at 'B+'; -- National scale rating affirmed at 'AA+(arg)'; -- Approximately US$331 million of Obligaciones Negociables affirmed at 'BB-/RR3'and 'AA+(arg)'; The Rating Outlook is Stable. WEST SECURITY: Trustee Verifying Proofs of Claim Until August 14 ---------------------------------------------------------------- The court-appointed trustee for West Security S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until August 14, 2009. * ARGENTINA: Economy May Shrink This Year, Analyst Says ------------------------------------------------------- Eliana Raszewski and Silvia Martinez of Bloomberg News report that Argentina’s economic growth slowed in April from March, providing more evidence that the economy may shrink in 2009 for the first time in seven years. The report relates Bertrand Delgado, senior Latin America economist at RGE Monitor in New York, said the country's economy, which has expanded at least 6.8% a year since 2003, will contract 1.9% in 2009, said Bertrand Delgado. According to the report, the economy will suffer from a decline in consumption, investment spending and a reduction in agricultural output because of a drought. “Although the government has tried to boost the economy ahead of the next mid-term elections, confidence hasn’t improved,” Mr. Delgado told Bloomberg New in a telephone interview. Bloomberg News notes the National Statistics Institute said that the country's gross domestic product expanded 2% from a year earlier, down from an annual growth rate of 2.4 percent in March. The economy grew 1.3% from March, the agency added. President Cristina Fernandez de Kirchner, the report says, is seeking to prevent the economy from contracting this year, allocating 111 billion pesos (US$29 billion) for a stimulus package to boost public works and fuel spending. The report relates she also tapped part of the US$24 billion in pension funds nationalized last year to offer low- cost mortgages, spur construction and encourage purchases of goods ranging from washing machines to cars. * * * As reported by the Troubled Company Reporter - Latin America on December 23, 2008, Fitch Ratings downgraded the Republic of Argentina's long-term local currency issuer default rating to 'B-'; country ceiling to 'B'; and performing bonds in foreign and local currency governed by Argentine law to 'B-/RR4'. The rating outlook on the local currency IDR is Stable. In addition, Fitch affirmed the country's long-term foreign currency IDR remains in Restricted Default ('RD'); short-term IDR at 'B'; performing bonds in foreign currency governed by foreign law at 'B-/RR4'; defaulted senior unsecured notes at 'CC/RR4'; and defaulted collateralized Brady bonds at 'CCC-/RR3'. ============= B E R M U D A ============= SYNCORA GUARANTEE: BCP Offer for 55 RMBS Classes Expires Today -------------------------------------------------------------- The BCP Voyager Master Funds SPC, Ltd., acting on behalf of and for the account of, the Distressed Opportunities Master Segregated Portfolio, has extended the expiration date of the Fund's offer for 55 classes of residential mortgage backed securities insured by Syncora Guarantee Inc. to 11:59 p.m., New York City time, on Wednesday, June 24, 2009. The offer will expire at that time, unless extended. The Fund also announced the results of the offer and the status of certain discussions with holders of RMBS as of June 22, 2009. As of June 22, tenders have been received in the offer and binding, non-binding and other agreements have been reached by the Fund or Syncora Guarantee and holders of RMBS to remediate RMBS exposures totaling 53.4 remediation points. RMBS representing 37.2 remediation points have been tendered into the offer, binding agreements have been reached by the Fund or Syncora Guarantee and RMBS holders to remediate RMBS exposures totaling 10.7 remediation points, subject to certain conditions, and non-binding agreements have been reached by the Fund or Syncora Guarantee and RMBS holders to remediate RMBS exposures totaling 5.5 remediation points. An agreement has been reached by the Fund and Syncora Guarantee and one RMBS holder to remediate RMBS exposures totaling 1.7 remediation points, in the event certain conditions are met. The Fund and Syncora Guarantee are in continuing discussions with numerous other holders of RMBS as the offer continues. The aggregate principal amounts of RMBS securities that have been tendered into the offer are: Aggregate Principal Balance in US$ Tendered as CUSIP No Security Description of June 22, 2009 -------- -------------------- ------------------ 39539BAA1 Greenpoint Mortgage Funding Trust 2006-HE1 86,452,326 126685DT0 Countrywide Home Equity Loan Trust 2006D 137,928,505 39539JAA4 GreenPoint Mortgage Funding Trust 2007-HE1 55,690,854 45664UAA3 Indymac Home Equity Mortgage Loan Asset Backed Trust Series 2006-H3 75,460,819 86801CAA1 STICS 2007-1 83,210,970 65538BAA7 Nomura NAAC 2007-S2 - 41161PL35 Harborview Mortgage Pass-Through Certificates 2006-4 93,977,192 12668VAC3 Countrywide Home Equity Loan Trust 2006-S7 38,551,660 126685DS2 Countrywide Home Equity Loan Trust 2006D 226,354,373 1248MKAB1 C-BASS Mortgage Loan Asset-Backed Certificates, Series 2007-SL1 62,150,773 41161MAB6 Harborview Mortgage Pass-Through Certificates Series 2006-5 74,098,902 12587PEM8 BSSP 2007-R5 (Bear Stearns) - 126685AT3 CWABS, Home Equity Revolving Loan Trust 2005-K 110,046,593 12668VAF6 Countrywide Home Equity Loan Trust 2006-S7 - 52524PBT8 Lehman XS Trust, Series 2007-6 3,097,240 12668VAE9 Countrywide Home Equity Loan Trust 2006-S7 12,025,983 785778QA2 SACO I Trust 2006-1 10,941,134 12668VAB5 Countrywide Home Equity Loan Trust 2006-S7 23,900,595 07401UAB9 Bear Stearns Second Lien Trust 2007-SV1 162,192,000 126685AU0 CWABS, Home Equity Revolving Loan Trust 2005-K 10,542,964 126673QB1 Countrywide Home Equity Loan Trust 2004R 38,060,530 456612AE0 Indymac Indx Mortgage Loan Trust 2006-AR6 42,044,903 12668VAD1 Countrywide Home Equity Loan Trust 2006-S7 - 52524TAS3 Lehman XS Trust, Series 2007-8H - 12668VAA7 Countrywide Home Equity Loan Trust 2006-S7 13,523,180 41161PL68 Harborview Mortgage Pass-Through Certificates 2006-4 - 1248MKAA3 C-BASS Mortgage Loan Asset-Backed Certificates, Series 2007-SL1 66,977,590 30248EAA6 First Franklin Mortgage Loan Trust Series 2007-FFB-SS 89,928,498 75114GAB5 RALI 2006-QO4 Trust 51,404,290 525248BL3 Lehman XS Trust, Series 2007-5H - 41161PE41 Harborview Mortgage Pass-Through Certificates 2006-CB1 39,701,573 75114GAE9 RALI 2006-QO4 Trust 40,478,820 41161PQ22 Harborview Mortgage Pass-Through Certificates 2006-4 41,768,612 126685AX4 CWABS, Home Equity Revolving Loan Trust 2005-K 39,787,632 456612AB6 Indymac Indx Mortgage Loan Trust 2006-AR6 84,772,320 525248BK5 Lehman XS Trust, Series 2007-5H - 23332UGP3 Downey Savings and Loan Mortgage Trust Series 2006-AR1 - 41161PP72 Harborview Mortgage Pass-Through Certificates 2006-4 - 126673QA3 Countrywide Home Equity Loan Trust 2004R - 23332UGL2 Downey Savings and Loan Mortgage Trust Series 2006-AR1 426,155 126673MY5 Countrywide Home Equity Loan Trust 2004Q 43,099,844 126685AW6 CWABS, Home Equity Revolving Loan Trust 2005-K 12,978,770 07401UAU7 Bear Stearns Second Lien Trust 2007-SV1 25,529,277 41161PG64 Harborview Mortgage Loan Trust 2006-BU1 34,339,366 68402SAA7 Option One Mortgage Loan Trust 2007-HL1 205,830,564 41161PXG3 Harborview Mortgage Loan Trust 2005-15 14,575,372 86363GBS2 Structured Adjustable Rate Mortgage Loan Trust, Series 2007-3 28,745,884 126673MX7 Countrywide Home Equity Loan Trust 2004Q - 41161PUM3 Harborview Mortgage Pass-Through Certificates 2005-11 - 525245CP9 Lehman XS Trust, Series 2007-3 17,241,072 41161PG98 Harborview Mortgage Loan Trust 2006-BU1 14,911,945 68402SAD1 Option One Mortgage Loan Trust 2007-HL1 - 41161PUJ0 Harborview Mortgage Pass-Through Certificates 2005-11 12,686,329 68402SAC3 Option One Mortgage Loan Trust 2007-HL1 22,220,000 68402SAB5 Option One Mortgage Loan Trust 2007-HL1 22,161,593 The offer and related financing are also conditioned on the consummation of an agreement entered into between Syncora Guarantee and certain counterparties to Syncora Guarantee's credit default swap transactions and financial guarantee insurance policies, the tender of a minimum amount of RMBS, approval of the New York Department of Insurance and certain other conditions. Holders of RMBS that have tendered or will tender their RMBS into the offer are no longer able to withdraw their tendered RMBS. The offer by the Fund and any transactions with Syncora Guarantee are being conducted only with qualified institutional buyers and are exempt from registration under Section 4(2) of the Securities Act of 1933, as amended. Any securities that may be issued pursuant to such transactions have not been and, at the time of the closing of the transaction, will not be registered under the Securities Act or any state securities laws. The securities may not be offered or sold in the United States absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to purchase any securities or a solicitation of an offer to sell any securities. The offers are being made only pursuant to an offer to purchase and letter of transmittal or other appropriate documentation and only to such persons and in such jurisdictions as is permitted under applicable law. About Syncora Guarantee Inc. Syncora Guarantee Inc. -- http://www.syncora.com/-- is a wholly owned subsidiary of Syncora Holdings Ltd. Syncora Holdings Ltd. is a Bermuda-domiciled holding company. TNT GLOBAL: Creditors' Proofs of Debt Due on July 1 --------------------------------------------------- The creditors of TNT Global Express Limited are required to file their proofs of debt by July 1, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 11, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda TNT GLOBAL: Members' Final Meeting Set for July 24 -------------------------------------------------- The members of TNT Global Express Limited will hold their final general meeting on July 24, 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 June 11, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda TYCO ELECTRONICS: Increases Late Tender Offer Consideration ----------------------------------------------------------- Tyco Electronics Ltd. said its wholly owned subsidiary, Tyco Electronics Group S.A., in connection with its cash tender offer early this month, has increased the Late Tender Offer Consideration for its 6.000% Senior Notes due 2012, its 6.550% Senior Notes due 2017 and its 7.125% Senior Notes due 2037. The Late Tender Offer Consideration for each series, as increased, now equals the Full Tender Offer Consideration for the series. The Late Tender Offer Consideration, as increased, the Maximum Tender Amount for each series of notes and the aggregate principal amount of each series of notes tendered as of 5:00 p.m., New York City time, on June 22, 2009, are: Late Tender Principal Offer Amount Consid- Principal Maximum Tendered eration CUSIP Title of Amount Tender as of Early (per $1,000 Number Security Outstanding Amount Tender Date tendered) ------ -------- ----------- ------- ----------- ------------ 902133AE7 6.000% $800,000,000 $150,000,000 $83,591,000 $980 Senior Notes Due 2012 902133AF4 6.550% $750,000,000 $100,000,000 $41,738,000 $900 Senior Notes Due 2017 902133AG2 7.125% Senior Notes Due 2037 $500,000,000 $100,000,000 $22,178,000 $800 Holders of notes that are validly tendered before 11:59 p.m., New York City time, on July 7, 2009, and accepted for payment will receive the Late Tender Offer Consideration. Holders of notes that are validly tendered and not withdrawn will receive accrued and unpaid interest on their purchased notes from the last interest payment date to, but not including, the date of payment for purchased notes. If the principal amount of the notes tendered and not withdrawn for a series exceeds the Maximum Tender Amount for such series, the principal amount of notes of such series purchased will be prorated based on the total principal amount of such series that has been tendered. If any tendered notes are not accepted for payment, the notes will be returned without expense to the tendering holder. TEGSA reserves the right, subject to applicable law, to extend, withdraw or terminate the tender offer. The tender offer is subject to, and conditioned upon, the satisfaction or waiver of the general conditions described in the Offer to Purchase and related letter of transmittal, each dated as of June 9, 2009. Except for the amendment to the Late Tender Offer Consideration, all other terms and conditions of the tender offer remain unchanged. Accordingly, withdrawal rights for tendering holders of the notes have expired. The settlement date in respect of notes validly tendered and not withdrawn and accepted for purchase is expected to occur on the second business day following the Expiration Date. The tender offer is being made pursuant to the Offer to Purchase, as amended hereby, and the related letter of transmittal, copies of which have been delivered to all holders of the 6.000% Senior Notes due 2012, 6.550% Senior Notes due 2017 and 7.125% Senior Notes due 2037. Persons with questions regarding the tender offer should contact the dealer manager, J.P. Morgan Securities Inc., at (866) 834-4666 (toll free) or (212) 834-3424 (collect), or the Information Agent, Global Bondholder Services Corporation, at (866) 470-3900. About Tyco Electronics Based in Pembroke, Bermuda, Tyco Electronics Ltd. -- http://www.tycoelectronics.com/-- provides engineered electronic components, network solutions, undersea telecommunication systems and specialty products, with fiscal 2008 sales of US$14.8 billion, to customers in more than 150 countries. The Company designs, manufactures and market products for customers in a broad array of industries including automotive; data communication systems and consumer electronics; telecommunications; aerospace, defense and marine; medical; and alternative energy and lighting. =========== B R A Z I L =========== BANCO DO BRASIL: Won't Pursue Plans to Acquire Stake in Banestes ---------------------------------------------------------------- Brazil-based Banco do Brasil SA said it is no longer looking to acquire a stake in Banco do Estado do Espirito Santo (Banestes), Kenneth Rapoza of Dow Jones Newswires reports. According to the report, Banco do Brasil and Banestes did not give reasons for canceling the deal. As reported in the Troubled Company Report-Latin on February 10, 2009, Reuters said Banco do Brasil SA started negotiations to buy Banestes from Bazil's southeastern state of Espirito Santo. The report related Espirito Santo agreed to non-binding talks with Banco do Brasil. Bloomberg News noted Banco do Brasil has stepped up acquisitions in recent months after losing its position as Brazil's biggest bank. The report recalls Banco do Brasil: -- agreed in January to pay BRL4.2 billion (US$1.87 billion) for a 50 percent stake in Banco Votorantim SA in a bid to boost its car-loan operations; -- in the past seven months, acquired Sao Paulo state-owned Nossa Caixa for BRL5.39 billion; -- paid BRL685 million for Banco do Estado de Santa Catarina; and -- agreed to take over Banco do Estado do Piaui SA for BRL81.7 million. About Banco do Brasil Banco do Brasil SA is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * As of June 18, 2009, the company continues to carry Moody's Ba2 Foreign LT Bank Deposit Rating. BANCO DO BRASIL: To Pay BRL456.1 Million in Dividends on Aug. 27 ---------------------------------------------------------------- Brazil-based Banco do Brasil SA's board has approved the payment of BRL456.1 million (US$229 million) in dividends in the form of interest on its own capital, Rogerio Jelmayer of Dow Jones Newswires reports, citing company statement. According to the report, the bank said that the total amount represents a dividend of BRL0.17 per share. The dividends, the report relates, will be paid on Aug. 27 and it will be based in shareholders position as of June 22. About Banco do Brasil Banco do Brasil SA is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * As of June 18, 2009, the company continues to carry Moody's Ba2 Foreign LT Bank Deposit Rating. COSAN SA: Prepares Two-Pronged Takeout of BRL1.2-Billion Debt ------------------------------------------------------------- Brazil-based Cosan SA is preparing a two-pronged takeout of a BRLl.2 billion debt it assumed when it purchased Nova America earlier this year, LatinFrance reports. According to the report, an unnamed finance official said the company has already issued RFPs to banks seeking feedback on an eventual US$500 million bond and US$350 million pre-export payment loan. No banks have been selected yet, he added. The report relates the official said the issuer is seeking the longest possible tenor. LatinFrance says the debt to be taken out is held almost entirely with Brazilian banks. The report relates Itau BBA and Bradesco are among the biggest lenders to Nova America, whose debt obligations have been fully transferred to Cosan. Itau BBA and Bradesco, LatinFrance says, hold a combined BRL560 million exposure to the company, while Santander, Votorantim and Banco do Brasil also hold significant pieces of more than BRL100 million each. The report adds Cosan’s IR office said some BRL444 million of the total BRL1.2 billion matures within the coming year, while another BRL751 is considered longer-term debt. About Cosan SA Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e Comercio -- http://www.cosan.com.br/en/ir/-- produces sugar and ethanol. The company cultivates harvests and processes sugarcane, the main raw material for sugar and ethanol manufacturing. With 17 manufacturing units and two port terminals in the city of Santos, Cosan says it is currently the largest individual group in the world in terms of sugarcane byproducts manufacturing. With capacity to grind more than 40 million tonnes of sugarcane, the group represents 12% of overall production in the mid-southern region of the country. * * * As 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. COMPANHIA SIDERURGICA: Restarts Second Furnace After 90 Days ------------------------------------------------------------ Brazil-based Companhia Siderurgica Nacional S.A. (CSN) has restarted its second blast furnace at its Volta Redonda mill in Rio de Janeiro State after a 90-day outage, Steelguru News reports, citing Steel Orbis. John Kolodziejski of Dow Jones Newswire relates the shutdown was for a BRL100 million (US$51 million) overhaul. Accoding to SteelGuru, the furnace will resume production of 4,200 tonnes per day of hot metal bringing the plant’s total hot metal output up to 14,500 tonnes per day. “The restart of the second furnace will bring capacity utilization at the mill, which produces 5.6 million tonnes of crude steel per year, up to 90% from its current 65%,” the company was quoted by Steel Guru as saying. CSN, DJ Newswires notes, said the refurbished unit will now be able to operate for another eight years before its next scheduled outage. DJ Newswires recalls the last time Furnace Number 2 was overhauled was in 1991. About CSN Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal, and the U.S. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 10, 2008, Moody's Investors Service upgraded the senior unsecured long term debt ratings of Companhia Siderurgica Nacional and its backed notes from Ba2 to Ba1. The TCR-LA reported on June 6, 2008, that Standard & Poor's Ratings Services raised its corporate credit rating on Brazil- based steelmaker Companhia Siderurgica Nacional to 'BB+' from 'BB' and removed it from CreditWatch. S&P had placed the ratings on CreditWatch with positive implications on May 30, 2008, for better cash flow protection measures. The outlook is positive. At the same time, S&P raised the corporate credit rating on subsidiary National Steel SA to 'BB-' from 'B+', with a positive outlook. GERDAU AMERISTEEL: Inks Term Loan Amendment Deal With Lenders ------------------------------------------------------------- Gerdau Ameristeel Corporation, a unit of Brazil-based Gerdau Sa, said it has entered into an agreement with the lenders of the company's Term Loan Facility which provides temporary flexibility with respect to the facility's covenants. The Term Loan Facility currently has US$2.6 billion of borrowings outstanding and Gerdau S.A. and certain of its Brazilian affiliates have guaranteed the Term Loan Facility since its inception in 2007. The Term Loan Facility originally required the company's majority shareholder, Gerdau S.A., (on a consolidated basis, including the Company) to maintain a ratio of consolidated EBITDA to total interest expense of more than 3.0 and a ratio of consolidated total debt to EBITDA of less than 4.0. The amendment revises the financial covenants so that they require Gerdau S.A. (on a consolidated basis, including the Company) to maintain a ratio of consolidated EBITDA to net interest expense of more than 2.5 and a ratio of consolidated net debt to EBITDA of less than 5.0. The amendment is effective immediately and the revised covenant levels will remain in effect until September 30, 2010 unless cancelled by the Company prior to that time. The revised covenant levels can be cancelled by the Company at any time without penalty. The amendment also revises the interest charged on the outstanding borrowings if and when the financial covenants originally contained in the facility are not met. Under such circumstances, the interest rate charged would increase based on certain conditions. After September 30, 2010 or upon the company's cancellation of the revised covenants if sooner, the interest rate increase would terminate. The total cost of the amendment is expected to be between US$12.8 million and US$41.5 million, depending on the timing of any interest rate increase. The amendment does not affect the outstanding amount of borrowings under or the original amortization schedule of the Term Loan Facility. 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. GERDUA SA: Renegotiates US$3.7 Billion Debt ------------------------------------------- Brazil-based Gerdau S.A. has received approval from 40 financial institutions for “temporary flexibility” of its US$3.7 billion debt until Sept. 30, 2010, Diana Kinch and Carlos Caminada of Bloomberg News report. The report relates the company renegotiated the debt terms on the outlook that global demand for the metal may fall further. According to the report, Chief Financial Officer Osvaldo Schirmer said Gerdau is seeking to preserve its more than US$3 billion in cash should demand weaken further this year. The report relates the company said in May that first-quarter sales volumes in Brazil and the U.S., its two biggest markets, fell 39% and 51%, respectively. “If demand continues at current levels, we could fail the old covenants,” the report quoted Mr. Schirmer as saying. Under the new terms, Gerdau “won’t need to touch its cash,” he added. John Kolodziejski of Dow Jones Newswires relates the new agreement include: -- an easing of debt versus Ebitda, -- from gross debt-to-Ebitda of less than four times, the target will shift to net debt-to-Ebitda of less than five times; -- another shift will be from Ebitda-over-financial expenditure of more than three times to Ebitda-over-net financial expenditure of more than 2.5 times; and -- the company will adopt a maximum limit of gross debt of US$11 billion. According to DJ Newswires, under current clauses in contracts with creditors, the more flexible targets will mean higher interest costs for Gerdau. The report says total cost of the more flexible targets could vary between US$20 million and US$60 million, depending on contract period. About Gerdau S.A. Headquartered in Porto Alegre, Brazil, Gerdau S.A. -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As of June 17, 2009, the company continues to carry Moody's Ba1 LT Corp Family rating and Ba1 Senior Unsecured Debt Ratings. ITAU GROUP: Fitch Affirms Support Rating Floor at 'BB+' ------------------------------------------------------- Fitch Ratings has affirmed the ratings of Itau Group of banks. The Outlooks for all the long-term Issuer Default Ratings and national ratings remain Stable. The full list of rating actions can be found at the end of this release. The affirmation of the ratings reflect the fact that Itau Unibanco Banco Multiplo S.A. and its subsidiaries form the largest private finance conglomerate in Brazil and one of the largest in Latin America, leader in many segments of the domestic market such as auto financing, credit cards and private banking. Its foreign currency long-term IDR is limited by Brazil's country ceiling. Its ratings reflect a growing broad and diversified franchise, active in various segments of the Brazilian financial system, a track record for conservative management and solid performance and the capacity to react promptly to fluctuations in the local economy. They also consider its relatively low exposure to Brazilian government debt, diversification through its overseas presence and ample international liquidity, differentiating it from its local peers. Fitch believes that the incorporation of Unibanco-Uniao de Bancos Brasileiros S.A. into the Itau group of banks initiated in November 2008 will enable greater exploitation of gains of scale and cost rationalizations in the core domestic market, as well as the generation of a more robust and diversified business that is able to continue absorbing potential impacts of the economic cycles. Fitch also observes that any eventual increase in risks incurred tends to be offset by the strengthening of the franchise, even though the magnitude of this merger goes far beyond Itau's past experience and has the goal of greater advances in the internationalization process in the long term as an added challenge. In Fitch's view, changes in IUBM's ratings would be driven by the Individual rating and would be influenced by the level and quality of capitalization and maintenance of asset quality. While the ratings consider a successful consolidation of its broader franchise, further significant international expansion would need to be viewed in light of its effect on the bank's balance sheet strength. As of Dec. 31, 2008, IUBM's accounting results were strongly influenced by the effects, mainly non-recurring, of the incorporation of Unibanco, strong provisioning in anticipation of expected credit pressures, given the more difficult environment in 2009, and the write off of the goodwill associated with the Unibanco transaction. All these actions reinforced the balance sheet heading into a difficult scenario in 2009, but that generated a pre-tax loss for fiscal year 2008, offset by the positive effects of the recognition of substantial deferred tax assets related to the actions mentioned above. Recurring earnings of BRL2.5 billion at first quarter 2009 (1Q'09) are in line with its local peers and reflect still high loan loss provisions, common across the banking system. Trends for more modest asset growth, falling interest rates and still strong credit costs will generate more modest profitability in 2009, even though the bank remains well positioned in terms of its financial strength compared with regional peers. IUBM's capitalization needs to be viewed in light of a high level of intangibles, (57.4% of equity at 1Q'09), principally the aforementioned deferred tax assets, as well as the roughly BRL9.1 billionin unrealized gains as of 1Q'09. Fitch believes the level of tax credits should receded over time, given IUBM's consistent profitability over the medium term, and is comfortable that the bank will operate with levels of capital that will continue to compare well internationally. Fitch affirms these ratings: Itau Unibanco Banco Multiplo S.A. Banco Itau S.A. Banco Itau BBA S.A. Unibanco-Uniao de Bancos Brasileiros S.A. -- Long-term foreign currency Issuer Default Rating 'BBB'; Stable Outlook; -- Short-term foreign currency IDR 'F2'; -- Long-term local currency IDR 'BBB+'; Stable Outlook; -- Short-term local currency IDR 'F2'; -- Individual Rating 'B/C'; -- Long-term National Rating 'AAA(bra)'; Stable Outlook; -- Short-term National Rating 'F1+(bra)'; -- Support Rating '3'; -- Support Rating Floor 'BB'; Banco Itau S.A. - US$100 million notes -- Long-term foreign currency rating 'BBB'. Banco Itau BBA S.A. - US$200 million fixed-rate notes -- Long-term foreign currency rating 'BBB'. MINERVA SA: Merges Minerva Log S.A. and Loin Investments Units -------------------------------------------------------------- Brazil-based Minerva S.A. said that constitution of two subsidiaries called Minerva Log S.A. and Loin Investments Administradora De Carterias Ltda. The company said that the main purpose for the creation of Minerva Log is to: -- reduce commercial expenses, -- improve operating efficiency, and -- to generate synergy gains for the live cattle and beef divisions. The new operation does not involve any additional investment to consolidated capex. The constitution of Loin Investment will allow future eliminations of financial intermediation in regards to the company’s cash investments, thereby reducing costs and taxes on our financial transactions. Both subsidiaries will be owned in their entirety by Minerva S.A. and Minerva Industria De Comercio E Alimentos S.A. About Minerva S.A. Minerva S.A. is one of the leading producers and sellers of beef, leather and live cattle in Brazil, and is one of the country’s three largest exporters in the sector in terms of gross sales revenue, exporting to around 80 countries. The company has presence in the Brazilian states of Sao Paulo, Goias, Tocantins, Mato Grosso do Sul as well as in Paraguay, Minerva operates seven slaughter and deboning plants, two tanneries and five distribution centers. Minerva also operates in the food service segment through the joint venture Minerva Dawn Farms (MDF), which has current meat processing capacity of 10 to 15 tons per hour, producing food made from beef, pork and poultry. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Brazilian-based meat processor/company Minerva S.A. to 'CCC+' from 'B'. At the same time, S&P removed the rating from CreditWatch negative, where it was placed on March 9, 2009. The outlook is negative. MINERVA SA: Chief Financial & Investor Relations Officer Resigns ---------------------------------------------------------------- Brazil-based Minerva S.A. said Chief Financial and Investor Relations Officer Carlos Watanabe has resigned from his post. Mr. Watanabe worked in Minerva for three years and actively participated in the Company’s IPO in 2007. Fernando Galletti de Queiroz, the Chief Executive Officer, will temporarily hold additional charge as the Chief Financial and Investor Relations Officer. Moreover, the Investor Relations team will now have the services of Eduardo Pirani Puzziello, who will take charge as IR Superintendent. About Minerva S.A. Minerva S.A. is one of the leading producers and sellers of beef, leather and live cattle in Brazil, and is one of the country’s three largest exporters in the sector in terms of gross sales revenue, exporting to around 80 countries. The company has presence in the Brazilian states of Sao Paulo, Goias, Tocantins, Mato Grosso do Sul as well as in Paraguay, Minerva operates seven slaughter and deboning plants, two tanneries and five distribution centers. Minerva also operates in the food service segment through the joint venture Minerva Dawn Farms (MDF), which has current meat processing capacity of 10 to 15 tons per hour, producing food made from beef, pork and poultry. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Brazilian-based meat processor/company Minerva S.A. to 'CCC+' from 'B'. At the same time, S&P removed the rating from CreditWatch negative, where it was placed on March 9, 2009. The outlook is negative. * BRAZIL: To Launch Lending Funds in Two Weeks ---------------------------------------------- Brazil's government expects to have up and running in two weeks funds to boost lending to small- and medium-sized companies that have struggled with a credit crunch, Daniela Machado of Reuters reports, citing Finance Minister Guido Mantega. According to the report, the funds will be managed by federally owned Banco do Brasil ) and state development bank BNDES and will be used to insure loans to businesses that haven't been able to raise funds from commercial banks. Reuters notes Banco do Brasil's fund may be as big as BRL4 billion (US$2 billion), while BNDES will have another BRL1.7 billion. * * * The country continues to carry Moody's Rating Agency's "Ba1" local and foreign currency ratings. COMPANHIA SIDERURGICA: Hires 1,200 Workers at Volta Redonda Plant ----------------------------------------------------------------- Brazil-based Companhia Siderurgica Nacional S.A. (CSN) has hired 1,200 workers at its Volta Redonda plant following signs the market is recovering, Alberto Alerig of Reuters reports, citing an unnamed company official. "The company identified signs of improvement in demand," the report quoted the official as saying. The Volta Redonda blast furnace in Rio de Janeiro state would reach 90 percent of capacity by July, he added. According to the report, of the total hires, 800 will be contractors and 400 will be hired by the company. CSN late last year cut 1,300 jobs as the global economic crisis cut into demand for steel, Reuters recalls. About CSN Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal, and the U.S. * * * As of June 19, 2009, the company continues to carry Moody's Currency LT Debt ratings at Ba1. The company also continues to carry Standard and Poor's Issuer credit ratings at BB+. ========================== C A Y M A N I S L A N D S ========================== ALBAPE INVESTMENT: Creditors' Proofs of Debt Due on July 23 ----------------------------------------------------------- The creditors of Albape Investment Ltd. are required to file their proofs of debt by July 23, 2009, to be included in the company's dividend distribution. The company's liquidator is: Hector Jose Pena Av. Venezuela, Torre America Piso 11, Urbanizcion Bello Monte Caracas 1050, Venezuela D.B. ZWIRN: Placed Under Voluntary Wind-Up ------------------------------------------ On May 28, 2009, the members of D.B. Zwirn Asia/Pacific Special Opportunities Fund, Ltd. passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Lawrence Cutler 1345 Avenue of the Americas New York, NY 10151 email: lawrence.cutler@dbzco.com Phone: +1 (646) 720-9393 D.B. ZWIRN: Creditors' Proofs of Debt Due on July 18 ---------------------------------------------------- The creditors of D.B. Zwirn Asia/Pacific Special Opportunities Fund, Ltd. are required to file their proofs of debt by July 18, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 28, 2009. The company's liquidator is: Lawrence Cutler 1345 Avenue of the Americas New York, NY 10151 Phone: +1 (646) 720-9393; e-mail: lawrence.cutler@dbzco.com EIRE HALIFAX: Placed Under Voluntary Wind-Up -------------------------------------------- On May 1, 2009, the shareholders of Eire Halifax Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 EIRE MANCHESTER: Placed Under Voluntary Wind-Up ----------------------------------------------- On May 1, 2009, the sole shareholder of Eire Manchester Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 FAST CO: Placed Under Voluntary Wind-Up --------------------------------------- On June 1, 2009, the sole shareholder of Fast Co. passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 GLOBAL OPPORTUNITY: Placed Under Voluntary Wind-Up -------------------------------------------------- On May 8, 2009, the sole shareholder of Global Opportunity Alpha Fund Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 GLOBALIS SOVEREIGN: Placed Under Voluntary Wind-Up -------------------------------------------------- On May 20, 2009, the shareholders of Globalis Sovereign Growth and Income Master Fund, LDC passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 JEFFERIES COMMIDITY: Creditors' Proofs of Debt Due on July 22 ------------------------------------------------------------- The creditors of Jefferies Commidity Fund I (Cayman) Ltd are required to file their proofs of debt by July 22, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 3, 2009. 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 JEFFERIES COMMODITY: Creditors' Proofs of Debt Due on July 22 ------------------------------------------------------------- The creditors of Jefferies Commodity Outperformance Master Fund I, Ltd are required to file their proofs of debt by July 22, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 3, 2009. 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 SCM QUALIFIED: Creditors' Proofs of Debt Due on July 22 ------------------------------------------------------- The creditors of SCM Qualified Value Fund Ltd are required to file their proofs of debt by July 22, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 2, 2009. 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 SKYLINER FUND: Placed Under Voluntary Wind-Up --------------------------------------------- On May 25, 2009, the sole shareholder of Skyliner Fund Ltd. passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Avalon Ltd. Landmark Square 1st Floor, 64 Earth Close West Bay Beach, PO Box 715, George Town Grand Cayman KY1-1107, Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 SOUTHPORT ENERGY: Placed Under Voluntary Wind-Up ------------------------------------------------ On May 11, 2009, the sole shareholder of Southport Energy Alternatives SPV Offshore Fund, Inc. passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Avalon Management Limited Landmark Square 1st Floor, 64 Earth Close West Bay Beach, PO Box 715, George Town Grand Cayman KY1-1107, Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 WESTERN INVESTMENT: Placed Under Voluntary Wind-Up -------------------------------------------------- On May 7, 2009, the sole shareholder of Western Investment Total Return Master Fund Ltd passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 YAUPON FUND: Placed Under Voluntary Wind-Up ------------------------------------------- On June 2, 2009, the sole shareholder of Yaupon Fund Ltd. passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands Telephone: (345) 914-6314 =============== C O L O M B I A =============== BANCOLOMBIA: Fitch Affirms Long-Term Issuer Credit Rating at 'BB+' ------------------------------------------------------------------ Fitch Ratings has affirmed Bancolombia's long- and short-term Issuer Default Ratings and outstanding debt ratings: -- Long-term foreign currency IDR 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 Floor at 'BB-'. At the same time the rating for Bancolombia's subordinated debt maturing May 2017 was affirmed at 'BB'. The Rating Outlook is Stable. Bancolombia's ratings reflect its dominant franchise, diversified loan portfolio and revenues, ample deposit base, strong earnings generation and sound management. They also factor in the stretched capital, deteriorating asset quality and increased provision requirements. Upward potential for Bancolombia's IDRs is contingent upon its ability to navigate the crisis maintaining reasonable asset quality and a performance that gradually restores its capital. Should asset quality deteriorate, performance decline or capital weaken, there would be significant downward pressure on Bancolombia's ratings. Given the size and systemic importance of Bancolombia, there is -- in Fitch's opinion -- a moderate probability of support from Colombia's Central Bank whose ability to provide such support is reflected in Colombia's Sovereign rating (rated 'BB+' with a Stable Outlook by Fitch). Facing a significantly deteriorated economic backdrop, the bank adjusted its strategy focusing on efficiency and service rather than growth. Bancolombia's performance was driven by strong loan growth mainly during first-half 2008 (1H'08). Additionally, resilient margins compensated for still growing operating expenses and higher loan loss provisions; profitability remained fairly stable but is likely to decline. Banco Agricola (BA, Bancolombia's largest subsidiary abroad) continues growing and has cemented its competitive position as large global banks froze their operations in El Salvador; BA's performance has exceeded expectations. Loan growth was mostly driven by corporations which turned back to local banks in the aftermath of the credit crunch. Sustained credit demand underpinned interest revenues and offset higher funding costs caused by the contractive economic policy (1H'08). As the economic policy has eased, funding costs have started to decline and the bank curbed loan growth tightening consumer and corporate lending criteria. Bancolombia's loan portfolio quality declined but remains reasonable considering the global crisis; reserves appear adequate and have been sustained. The loan portfolio shows adequate diversification and deposits are widely based and diversified. Regulatory capital ratios were sustained -- in spite of a more stringent regulation -- through plain vanilla subordinated bonds which receive no equity credit according to Fitch's methodology; hence the bank's capital appears somewhat stretched. Future growth should be modest and margins are expected to remain stable in the short run. Operating costs should decline in relative terms but pressure from loan loss provisions will continue. Accordingly, profitability should suffer as the bank sustains reserves to cope with higher delinquency. Capital ratios could see some decline but lower growth should result in some stability albeit at the low end of its peers. Bancolombia is Colombia's largest bank boasting about 23% of the system's assets at March 2009. A universal bank active in corporate, SME and retail, Bancolombia acquired El Salvador's largest bank (Banco Agricola, rated BB+ with a negative outlook by Fitch); Bancolombia is controlled by a conglomerate of companies informally known as Grupo Empresarial Antioqueno. DOLE CO: Denies Involvement in AUC Killings at Colombia ------------------------------------------------------- California-based Dole Food Co. has denied any involvement in thousand of killings by militia belonging to the United Self- Defense Forces of Colombia (AUC) in Clombia, Frank Bajak of the Associated Press reports. The company, in a statement obtained by the news agency, said it "categorically rejects the baseless allegations accusing the company of illegal activity in Colombia," According to the report, relatives of 51 men, who were allegedly murdered by AUC militia, is seeking hundreds of millions of dollars in damages from Dole Food Co. AP relates that the lawsuit, filed in California state court in Los Angeles, alleged that Dole Food made a total of about US$10 million in regular payments from 1997-2007 to local AUC commanders and previously paid smaller far-right militias. The report notes the suit also accuses AUC of "keeping unions out of Dole's banana plantations by murdering effective union leaders and using terror tactics to discourage workers from joining the unions." The report discloses that Terry Collingsworth, an attorney for the plaintiffs, said a key witness for the plaintiffs AUC commander Jose Gregorio Mangones has admitted responsibility for more than half the killings cited in the suit. The report says atleast three other former senior AUC commanders also have said that foreign banana companies that operated in Colombia, including Dole and Chiquita, made regular payments to their militias. The four commanders, AP relates, have confessed to ordering several thousand of murders and specifically targeting labor organizers and alleged leftist rebel sympathizers. The report notes that Mr. Collingsworth said the plaintiffs would prove that Dole's managers in the region were not "innocent bystanders paying extortion" but rather active partners in bloody conspiracy to keep labor costs down. So far, the lawsuit doesn't name any U.S.-based Dole employees who allegedly engaged in illegal behavior, the report says. "There were U.S. citizens who came down to Colombia regularly to deal with all things bananas, and Mr. Tijeras said he met them when they came down," the suit said, the report relates. However, Mr. Tijeras said he could not remember their names, it added. About Dole Food Headquartered in Westlake Village, California, Dole Food Company, Inc. -- http://www.dole.com/-- is a producer of fresh fruit and fresh vegetables, and markets a line of value-added products. The company operates in four business segments: fresh fruit, fresh vegetables, packaged foods and fresh-cut flowers. The fresh fruit segment contains operating divisions that produce and market fresh fruit to wholesale, retail and institutional customers worldwide. The fresh vegetables segment contains two operating divisions that produce and market commodity and fresh-cut vegetables to wholesale, retail and institutional customers, primarily in North America, Europe and Asia. The packaged foods segment contains operating divisions that produce and market packaged foods, including fruit, juices and snack foods. The fresh-cut flowers segment sources, imports and markets fresh-cut flowers, grown mainly in Columbia, primarily to wholesale florists and retail grocers in the United States. In Latin America, Dole owns and operates 11 packing and cold storage facilities, a corrugated box plant and a wooden box plant in Chile. The Company also operates a fresh-cut salad plant and a small local fruit distribution company in Chile. Dole also owns and operates corrugated box plants in Colombia, Costa Rica, Ecuador and Honduras and a value-added vegetable plant in Costa Rica. Dole produces flowers in Colombia and Ecuador, where it owns packing and cooling facilities. Dole also leases a facility in Colombia for bouquet construction. * * * As reported in the Troubled Company Reporter on March 27, 2009, Standard & Poor's Ratings Services said that it revised its outlook on Westlake Village, California-based Dole Food Co. Inc. to stable from negative. S&P also affirmed the existing ratings on the company, including the 'B-' corporate credit rating. As of Jan. 3, 2009, the company had about $2.2 billion of debt. =================================== D O M I N I C A N R E P U B L I C =================================== JETBLUE AIRWAYS: To Service Flights to Dominican Republic --------------------------------------------------------- JetBlue Airways Corporation will now service flights to Santo Domingo, Dominican Republic. JetBlue is now offering the convenience of nonstop service from Boston to Santo Domingo three days per week on Fridays, Saturdays, and Sundays, with plans to expand to daily service over the peak winter season. JetBlue also offers one-stop connecting service every day to Santo Domingo as well as to Puerto Plata on the island's north coast and to Santiago de los Caballeros in the central Cibao Valley. Santo Domingo is JetBlue's second new destination this week from its "Hub hub" at Logan, after Wednesday's launch of twice-daily nonstop service to Los Angeles International Airport (LAX). JetBlue will further expand in Boston on Sept. 9 with the launch of four daily flights to a 32nd destination, Baltimore-Washington International Thurgood Marshall Airport (BWI). About JetBlue Airways Based in Forest Hills, New York, JetBlue Airways Corporation (Nasdaq: JBLU) -- http://www.jetblue.com/-- is a passenger airline that provides customer service primarily on point-to- point routes. As of Dec. 31, 2007, the company served 53 destinations in 21 states, Puerto Rico, Mexico and the Caribbean. JetBlue currently serves 53 cities with 600 daily flights. * * * As reported in the Troubled Company June 8, 2009, Fitch Ratings has affirmed the Issuer Default Rating for JetBlue Airways Corp. at 'B-'. Fitch has also revised the issue rating for JBLU's $301 million of outstanding convertible debentures to 'CC/RR6' from 'CCC-/RR6'. The revision of the convertible debt rating follows recent changes in Fitch's notching criteria for issuers with IDRs of 'B-' or below. Fitch has also assigned a rating of 'CC/RR6' to JBLU's newly issued $175 million two-part convertible debenture offering. The new notes carry a coupon of 6.75% with a final maturity in 2039. The Rating Outlook for JBLU remains Negative. ==================== E L S A L V A D O R ==================== BANCO AGRICOLA: Fitch Puts Negative Outlook on Low-B IDR Ratings ---------------------------------------------------------------- The Negative Outlook on El Salvador's recently downgraded sovereign rating could affect the Issuer Default Ratings of three major Salvadorian banks, should this eventually result in a further sovereign downgrade. Therefore, Fitch Ratings has revised to Negative from Stable the rating Outlooks of Banco Agricola, Banco HSBC Salvadoreno and Scotiabank El Salvador. On June 18, 2009, Fitch downgraded El Salvador's sovereign ratings to 'BB' from 'BB+', while the Outlook remained Negative, In turn, El Salvador's country ceiling was affirmed at 'BBB-'. The ratings on all three banks are above the sovereign rating, and HSBCS's and SES's IDRs, both driven by strong parent support, are constrained by the country ceiling. However, a further eventual downgrade of El Salvador's sovereign ratings could result in a downgrade of the country ceiling, which would, in turn, lead to a downgrade of HSBCS's and SES's constrained IDRs accordingly. Agricola's IDRs are underpinned by the bank's sound financial condition and are not constrained by the sovereign rating. The bank's IDRs and Individual rating reflect its robust franchise, sound operating profitability and improved loss-absorption capacity (capital adequacy and reserves), but also consider the challenges from the currently adverse economic conditions. All these factors support its IDR at 'BB+', which is one notch higher than the sovereign rating. The Negative Outlook reflects that the confluence of a potential sovereign downgrade and further deterioration in the operating environment could affect Agricola's IDR. However, under certain circumstances, a further sovereign rating downgrade might not necessarily affect Agricola's intrinsic financial profile, if the bank maintains adequate loss-absorbing capacity, asset quality and earnings prospects, which could potentially lead to an affirmation of its current IDRs and a revision of the Rating Outlook back to Stable. If the sovereign ratings are eventually affirmed at 'BB' and the Outlook revised to Stable from Negative, it is highly likely that the ratings of these three banks will also be affirmed with a Stable Outlook. In turn, Fitch does not foresee immediate pressure on these banks' Individual ratings, which have been affirmed. The 'C/D' Individual ratings of these three banks already factor in the challenges arising from a rapidly worsening operating environment and reduced system-wide liquidity. Fitch considers that these ratings will likely remain consistent and unchanged under the baseline scenario, although some degree of downside risk remains. The full list of all affirmations and Outlook revisions follows: Banco Agricola: -- Long-term IDR at 'BB+'; Outlook to Negative from Stable; -- Short-term IDR at 'B'; -- Individual at 'C/D'; -- Support at '3'; -- National-scale long-term rating at 'AA+(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. -- National-scale rating for local issues of senior unsecured debt at 'AA+(slv)'; -- National-scale rating for local issues of senior secured debt at 'AAA(slv)'. Banco HSBC Salvadoreno: -- Long-term IDR at 'BBB-'; Outlook to Negative from Stable; -- Short-term IDR at 'F2'; -- Individual at 'C/D'; -- Support affirmed at '2'; -- National-scale long-term rating at 'AAA(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. Scotiabank El Salvador: -- Long-term IDR at 'BBB-'; Outlook to Negative from Stable; -- Short-term IDR at 'F2'; -- Individual at 'C/D'; -- Support at '2'; -- National-scale long-term rating at 'AAA(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. BANCO HSBC: Fitch Puts Neg. Outlook on 'C/D' Individual Rating -------------------------------------------------------------- The Negative Outlook on El Salvador's recently downgraded sovereign rating could affect the Issuer Default Ratings of three major Salvadorian banks, should this eventually result in a further sovereign downgrade. Therefore, Fitch Ratings has revised to Negative from Stable the rating Outlooks of Banco Agricola, Banco HSBC Salvadoreno and Scotiabank El Salvador. On June 18, 2009, Fitch downgraded El Salvador's sovereign ratings to 'BB' from 'BB+', while the Outlook remained Negative, In turn, El Salvador's country ceiling was affirmed at 'BBB-'. The ratings on all three banks are above the sovereign rating, and HSBCS's and SES's IDRs, both driven by strong parent support, are constrained by the country ceiling. However, a further eventual downgrade of El Salvador's sovereign ratings could result in a downgrade of the country ceiling, which would, in turn, lead to a downgrade of HSBCS's and SES's constrained IDRs accordingly. Agricola's IDRs are underpinned by the bank's sound financial condition and are not constrained by the sovereign rating. The bank's IDRs and Individual rating reflect its robust franchise, sound operating profitability and improved loss-absorption capacity (capital adequacy and reserves), but also consider the challenges from the currently adverse economic conditions. All these factors support its IDR at 'BB+', which is one notch higher than the sovereign rating. The Negative Outlook reflects that the confluence of a potential sovereign downgrade and further deterioration in the operating environment could affect Agricola's IDR. However, under certain circumstances, a further sovereign rating downgrade might not necessarily affect Agricola's intrinsic financial profile, if the bank maintains adequate loss-absorbing capacity, asset quality and earnings prospects, which could potentially lead to an affirmation of its current IDRs and a revision of the Rating Outlook back to Stable. If the sovereign ratings are eventually affirmed at 'BB' and the Outlook revised to Stable from Negative, it is highly likely that the ratings of these three banks will also be affirmed with a Stable Outlook. In turn, Fitch does not foresee immediate pressure on these banks' Individual ratings, which have been affirmed. The 'C/D' Individual ratings of these three banks already factor in the challenges arising from a rapidly worsening operating environment and reduced system-wide liquidity. Fitch considers that these ratings will likely remain consistent and unchanged under the baseline scenario, although some degree of downside risk remains. The full list of all affirmations and Outlook revisions follows: Banco Agricola: -- Long-term IDR at 'BB+'; Outlook to Negative from Stable; -- Short-term IDR at 'B'; -- Individual at 'C/D'; -- Support at '3'; -- National-scale long-term rating at 'AA+(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. -- National-scale rating for local issues of senior unsecured debt at 'AA+(slv)'; -- National-scale rating for local issues of senior secured debt at 'AAA(slv)'. Banco HSBC Salvadoreno: -- Long-term IDR at 'BBB-'; Outlook to Negative from Stable; -- Short-term IDR at 'F2'; -- Individual at 'C/D'; -- Support affirmed at '2'; -- National-scale long-term rating at 'AAA(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. Scotiabank El Salvador: -- Long-term IDR at 'BBB-'; Outlook to Negative from Stable; -- Short-term IDR at 'F2'; -- Individual at 'C/D'; -- Support at '2'; -- National-scale long-term rating at 'AAA(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. SCOTIABANK EL SALVADOR: Fitch Puts Neg. Outlook on Ratings ---------------------------------------------------------- The Negative Outlook on El Salvador's recently downgraded sovereign rating could affect the Issuer Default Ratings of three major Salvadorian banks, should this eventually result in a further sovereign downgrade. Therefore, Fitch Ratings has revised to Negative from Stable the rating Outlooks of Banco Agricola, Banco HSBC Salvadoreno and Scotiabank El Salvador. On June 18, 2009, Fitch downgraded El Salvador's sovereign ratings to 'BB' from 'BB+', while the Outlook remained Negative, In turn, El Salvador's country ceiling was affirmed at 'BBB-'. The ratings on all three banks are above the sovereign rating, and HSBCS's and SES's IDRs, both driven by strong parent support, are constrained by the country ceiling. However, a further eventual downgrade of El Salvador's sovereign ratings could result in a downgrade of the country ceiling, which would, in turn, lead to a downgrade of HSBCS's and SES's constrained IDRs accordingly. Agricola's IDRs are underpinned by the bank's sound financial condition and are not constrained by the sovereign rating. The bank's IDRs and Individual rating reflect its robust franchise, sound operating profitability and improved loss-absorption capacity (capital adequacy and reserves), but also consider the challenges from the currently adverse economic conditions. All these factors support its IDR at 'BB+', which is one notch higher than the sovereign rating. The Negative Outlook reflects that the confluence of a potential sovereign downgrade and further deterioration in the operating environment could affect Agricola's IDR. However, under certain circumstances, a further sovereign rating downgrade might not necessarily affect Agricola's intrinsic financial profile, if the bank maintains adequate loss-absorbing capacity, asset quality and earnings prospects, which could potentially lead to an affirmation of its current IDRs and a revision of the Rating Outlook back to Stable. If the sovereign ratings are eventually affirmed at 'BB' and the Outlook revised to Stable from Negative, it is highly likely that the ratings of these three banks will also be affirmed with a Stable Outlook. In turn, Fitch does not foresee immediate pressure on these banks' Individual ratings, which have been affirmed. The 'C/D' Individual ratings of these three banks already factor in the challenges arising from a rapidly worsening operating environment and reduced system-wide liquidity. Fitch considers that these ratings will likely remain consistent and unchanged under the baseline scenario, although some degree of downside risk remains. The full list of all affirmations and Outlook revisions follows: Banco Agricola: -- Long-term IDR at 'BB+'; Outlook to Negative from Stable; -- Short-term IDR at 'B'; -- Individual at 'C/D'; -- Support at '3'; -- National-scale long-term rating at 'AA+(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. -- National-scale rating for local issues of senior unsecured debt at 'AA+(slv)'; -- National-scale rating for local issues of senior secured debt at 'AAA(slv)'. Banco HSBC Salvadoreno: -- Long-term IDR at 'BBB-'; Outlook to Negative from Stable; -- Short-term IDR at 'F2'; -- Individual at 'C/D'; -- Support affirmed at '2'; -- National-scale long-term rating at 'AAA(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. Scotiabank El Salvador: -- Long-term IDR at 'BBB-'; Outlook to Negative from Stable; -- Short-term IDR at 'F2'; -- Individual at 'C/D'; -- Support at '2'; -- National-scale long-term rating at 'AAA(slv)'; Outlook Stable; -- National-scale short-term rating at 'F1+(slv)'. =========== G U Y A N A =========== GLOBE TRUST: Liquidator Sells Building to Recover Funds ------------------------------------------------------- The Globe Trust and Investment Company Limited (GTICL) and its liquidator Nizam Ali are selling the company's building at the East half of the west half of Lot 92 North Cummingsburg, as part of their goal to recover funds from the bankrupt institution, Stabroek News reports. According to the report, the liquidator is currently inviting tenders up until the end of July. The report relates intended buyers must purchase the tender package for the sum of $5,000 from Nizam Ali and Company located on Camp Street. As reported in the Troubled Company Reporter-Latin America on April 22, 2009, Stabroeknews said Globe Trust and Investment and its liquidator is in court battling to reclaim funds owed to the institution after months of reluctance from debtors, filing claims to levy on personal property that were put up as collateral. The report related that the company will move against some debtors by claiming goods that were listed as security when the loans were issued. According to the report, Mr. Ali said the silence from debtors prompted the move to the court. The report noted Mr. Ali said the company is now filing frequent actions to reclaim funds through a battery of attorneys. Stabroeknews said Mr. Ali, since being appointed liquidator on October 2008, recovered some $14 million of the $750 Million disbursed in loans. Stabroeknews recalled in October 2008, Chief Justice (Ag) Ian Chang issued an order for the compulsory liquidation of Globe Trust following a High Court application by the Bank of Guyana (BoG). The report related the company came crashing down after issuing many unsecured loans among other dubious practices. The BoG, the report noted, filed an application asking that an order be granted for the compulsory liquidation of GTICL as provided for under the Financial Institutions Act after an investment deal for the troubled institution failed to materialise. According to the company's Web site, on November 7, 2001, the central bank instituted legal action as is required under the FIA to have the company liquidated. On July 25, 2002, the Honourable Chief Justice ordered the re-organisation of Globe Trust under the Bank of Guyana as set out in Section 50 of the FIA. =========== M E X I C O =========== CORPORACION DURANGO: U.S. Court Confirms Restructuring Plan ----------------------------------------------------------- The Hon. Robert R. Drain of the U.S. Bankruptcy Court for the Southern District of New York confirmed a first amended joint Chapter 11 plan of reorganization for Paper International Inc. and Fiber Management of Texas Inc. proposed by their parent company Corporacion Durango on May 15, 2009. Under the plan, the Debtors' businesses will continue to be operated in substantially their current form, with Paper International continuing to own its equity in McKinley and FMT, and FMT continuing the wind down of its fiber procurement business, which began when FMT ceased its operations in August 2008. Furthermore, the plan treats the estates of Paper International and FMT as comprising a single estate solely for purposes of voting on the plan, confirmation of the plan and making plan distributions in respect of claims against and equity interests in such Debtors under the plan. The plan relates that holders of allowed priority claims and general unsecured claims will be paid in full in accordance with the reinstated right, as and when the payment is due. Holders of allowed noteholder claims are expected to get new senior notes, new senior notes guarantees, restructuring fee or Durango new equity under the noteholder settlement of the Mexican reorganizational plan. Moreover, equity interests holders will keep 100% of their legal and equitable ownership rights. General unsecured holders, totaling $700,000, are expected to recover 100% while noteholders will get 70.4% of their allowed claim under the plan. White & Case LLP in Miami, Florida, represents Corporacion Durango. A full-text copy of the Corporacion Durango's disclosure statement is available for free at http://ResearchArchives.com/t/s?3e1b A full-text copy of the Corporacion Durango's amended plan is available for free at http://ResearchArchives.com/t/s?3e1c Headquartered in Prewitt, New Mexico, Paper International, Inc. -- http://www.internationalpaper.com/-- is the wholly-owned direct subsidiary of Corporacion Durango, S.A.B. de C.V., a corporation organized under the laws of Mexico, which maintains its principal place of business in Durango, Mexico. The Debtor currently owns 100% of the equity shares in Fiber Management of Texas, Inc., a corporation organized under the laws of Texas, as well as 100% of the equity shares in non-debtor Durango McKinley Paper Company, a New Mexico company. Paper International is a holding company which has no employees, no operations, and whose primary assets are its ownership interests in Durango McKinley and Fiber Management. Before August 2008, Fiber Management's primary business was the procurement of paper materials to manufacture recycled paper products for use by Durango McKinley and other paper manufacturing affiliates of Corporacion Durango located in Mexico. In August 2008, Fiber Management ceased procuring fiber and began winding up all of its business operations. Paper International and Fiber Management filed for Chapter 11 protection on October 6, 2008 (Bankr. S.D. N.Y. Lead Case No.08- 13917). Larren M. Nashelsky, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP, represent the Debtors as counsel. Eric Kate Mautner, Esq., at Bingham McCutchen LLP, represents the Official Committee of Unsecured Creditors as counsel. APS Services, LLC, serves as the Debtors' crisis managers. The Debtors designated Meade Monger, a managing director of AlixPartners, LLP, an affiliate of AP Services, as its chief restructuring officer. The Court appointed Kurtzman Carson Consultants, LLC, as claims agent in the Debtors' bankruptcy case. At March 31, 2009, the Debtors had $123,365,705 in total assets, $552,348,876 in total liabilities, and $428,983,171 in stockholders' deficit. ================= V E N E Z U E L A ================= PDVSA: Absorbs 1,000 New Workers -------------------------------- Venezuela-owned oil company, Petroleos de Venezuela (PDVSA), said it has absorbed 1,000 workers as part of the process to absorb more than 8,000 male and female workers from the contractors that were nationalized in accordance with the Organic Law which Reserves Goods and Services Related to Primary Activities of the Hydrocarbons Sector for the State. The new workers will form an integral part of the payroll and enjoy the social security network provided by the state-run oil holding. According to a company statement, Minister of People’s Power for Energy and Petroleum and PDVSA President Rafael Ramirez said that the workers were honored a debt amounting to US$4,281,847. “Even though we are in the process of absorption, we have not stopped paying the wages of workers to ensure continued operations and their work in the industry. We will keep our word to the revolution,” Mr. Ramirez said. PDVSA has included more than 2,672 workers as full-time staff and paid approximately USD 4,281,847. Moreover, Mr. Ramirez noted that in 2009 the Western Division of PDVSA Exploration and Production has invested US$547 million in a new subsidiary, Aquatic Operations. A total of 1,271 ships carry 27,000 workers in western Venezuela. These numbers attest to the economic stability in the Eastern Coast of Lake Maracaibo. Since last May 22, PDVSA, through the subsidiary Aquatic Operations, has administered social justice and dignified the workers at the docks formerly operated by private companies and now under the control of the Venezuelan state to the people’s benefit. This fifth delivery adds 2,674 fellow citizens with PDVSA credentials out of a total of 8,000 expected incoming workers. The staff joining PDVSA was part of about 39 service suppliers in the area of maritime transportation, industrial diving, maintenance, building and aquatic services. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported in the Troubled Company Reporter-Latin America on Jun 16, 2009 Standard & Poor's Ratings Services lowered its long- term corporate credit rating on Petroleos de Venezuela S.A. to 'B+' from 'BB-'. The outlook remains negative. PDVSA: Saves US$690 Million a Year With Nationalized Barges ----------------------------------------------------------- Petroleos de Venezuela (PDVSA) said it will save US$690 million a year due to the the release of 23 barges located in Lake Maracaibo. This is a part of the nationalization of the docks undertaken by the company. Venezuelan President Hugo Chavez highlighted the significance of the nationalization of the companies engaged in activities related to hydrocarbons, when contacting via satellite Romer Valdez, managing director of the Western Division of PDVSA Exploration and Production, from barge L07 in Lagunillas. During his presentation, Mr. Valdez explained to President Chavez that only with barge L07, US$30 million is being saved. Formerly, this amount remained in the hands of the private companies which carried out these works. He added that the workers with such contractors are now part of PDVSA with all the benefits that they were denied for years. Incidentally, President Chavez noted that the diapers manufacturer cost approximately US$10 million, which means that with the savings from the nationalization of barges, several diapers manufacturing plants could be built across the nation, thus preventing the import of such a product. From barge L07 an underwater pipeline was repaired. President Chavez talked to Harold Véliz, the superintendent responsible for the laying and repairs of lines who was at the bottom of the Lake, supervising the works. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported in the Troubled Company Reporter-Latin America on Jun 16, 2009 Standard & Poor's Ratings Services lowered its long- term corporate credit rating on Petroleos de Venezuela S.A. to 'B+' from 'BB-'. The outlook remains negative. PDVSA: To Increase Bond Size Sale to US$3 Billion ------------------------------------------------- Venezuela-owned oil company, Petroleos de Venezuela, said it will increased the size of a bond sale planned for the second week of July to US$3 billion, Matthew Walter of Bloomberg News reports, citing Reuters. According to the report, Reuters said the Venezuelan government will announce details of the dollar bond issue, which Venezuelans will be able to buy with local currency, on June 25. Reuters did not specifying the amount of the increase, the report relates. 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 reported in the Troubled Company Reporter-Latin America on Jun 16, 2009 Standard & Poor's Ratings Services lowered its long- term corporate credit rating on Petroleos de Venezuela S.A. to 'B+' from 'BB-'. The outlook remains negative. *********** 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 * * *