/raid1/www/Hosts/bankrupt/TCRLA_Public/090626.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, June 26, 2009, Vol. 10, No. 125
Headlines
A R G E N T I N A
ALIR METALURGICA: Asks for Declaration of Bankruptcy
AMERICAN INT'L: Sells Consumer Finance Operations in Argentina
APART RECOLETA: Trustee Verifying Proofs of Claim Until Sept. 9
KANUTEO SRL: Trustee Verifying Proofs of Claim Until August 3
LINEA 18: Trustee Verifying Proofs of Claim Until July 8
PREMIL SA: Trustee Verifying Proofs of Claim Until September 4
PUBLICIDAD ENRIQUE: Verifying Proofs of Claim Until Aug. 12
ROCSANT SRL: Trustee Verifying Proofs of Claim Until September 8
SE VOLVIO LOCO: Proofs of Claim Verification Due on August 26
SILPE SA: Proofs of Claim Verification Due on September 11
TELECOM ARGENTINA: Telecom Italia Plans to Sell Stake in Firm
YARD SECURITY: Proofs of Claim Verification Due on September 8
A R U B A
VALERO ENERGY: To Temporarily Shut Down Aruba Refinery
B E R M U D A
SYNCORA GUARANTEE: BCP Offer for RMBS Classes Moved Until Friday
B R A Z I L
AMERICAN INT'L: Sells Stake in AIG Unibanco
BANCO INDUSTRIAL: S&P Affirms 'BB-/B' Counterparty Credit Rating
BNDES: Equity Stake Sale Plan May Hurt Companies
EMBRAER: In Talks With BNDES to Increase Client's Financing
GERDAU SA: Zack Investment Keeps “Sell” Recommendation
INFINITY BIO-ENERGY: Mulls Sale of Usinavi Mill
PERDIGAO: May File Prospectus for a Follow-on After Sadia Buyout
TELEMAR NORTE: Denies In Talks On Oi Control Change
C A Y M A N I S L A N D S
ANTHRACITE MASTER: Creditors' Proofs of Debt Due on July 14
ARLO VI: S&P Confirms Credit Ratings on Four Series of CDOs
AVENUE ASIA: Placed Under Voluntary Wind-Up
AVENUE ASIA: Placed Under Voluntary Wind-Up
AVENUE ASIA: Placed Under Voluntary Wind-Up
AVENUE EVENT: Commences Liquidation Proceedings
AVENUE EVENT: Commences Liquidation Proceedings
AVENUE STRATEGIC: Commences Liquidation Proceedings
BLACKSTONE KAILIX: Placed Under Voluntary Wind-Up
CAZENOVE WORLDWIDE: Creditors' Proofs of Debt Due on July 22
GLOBAL STRATEGY: Commences Liquidation Proceedings
INVESTCORP AMPERSAND I: Commences Liquidation Proceedings
MODENA HOLDINGS: Creditors' Proofs of Debt Due on July 22
NEW HORIZON: Placed Under Voluntary Wind-Up
OLD MUTUAL: Creditors' Proofs of Debt Due on July 22
SMART LIMITED: Placed Under Voluntary Wind-Up
C O S T A R I C A
POPULAR INC: Banco Popular Offers Loans for "Boosters"
C O L O M B I A
* COLOMBIA: GDP Shrinks 0.6% in 1Q; Economy in Recession
G U Y A N A
CL FIN'L: Local Judge Allows Sale of CLICO Guyana's Properties
H A I T I
* HAITI: IDB Approves US$120 Million in Grants for 2010
H O N D U R A S
* HONDURAS: IDB Approves US$50 Million Credit Line
J A M A I C A
AIR JAMAICA: Government to Miss Divestment Deadline Again
DIGICEL GROUP: Has US$1.2-Billion Deficit as of March 31
DYOLL GROUP: To Wound Up Operations
JUTC: Seeks Government Guarantee for JM$425 Million Loan
SCJ: Approval for Hampden Estate Sale Baffles Ex-Owners' Lawyers
M E X I C O
AMERICAN INT'L: Sells Consumer Finance Operations in Mexico
GRUPO POSADAS: Moody's Downgrades Corporate Family Rating to 'B2'
V E N E Z U E L A
ARVINMERITOR INC: Sells Stake in LVS Chassis Businesses
PDVSA: Venezuela Government Approves Bond Issue
- - - - -
=================
A R G E N T I N A
=================
ALIR METALURGICA: Asks for Declaration of Bankruptcy
----------------------------------------------------
Alir Metalurgica SRL asked for the declaration of bankruptcy.
The company stopped making payments June 5, 2009.
AMERICAN INT'L: Sells Consumer Finance Operations in Argentina
--------------------------------------------------------------
American International Group Inc agreed to sell 100% of its shares
in its consumer finance operations in Argentina to Banco de
Galicia y Buenos Aires on June 3, LatinFrance reports.
According to the report, the company also agreed to sell an
investment group arranged by private equity firm Pegasus for
US$44m in cash.
Based in New York, American International Group, Inc., is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer. In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world. AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.
During the third quarter of 2008, requirements to post collateral
in connection with AIG Financial Products Corp.'s credit default
swap portfolio and other AIGFP transactions and to fund returns of
securities lending collateral placed stress on AIG's liquidity.
AIG's stock price declined from $22.76 on September 8, 2008, to
$4.76 on September 15, 2008. On that date, AIG's long-term debt
ratings were downgraded by Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch
Ratings, which triggered additional requirements for liquidity.
These factors and other events severely limited AIG's access to
debt and equity markets.
On September 22, 2008, AIG entered into an US$85 billion revolving
credit agreement with the Federal Reserve Bank of New York and
pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000
shares of Series C Perpetual, Convertible, Participating Preferred
Stock to a trust for the benefit of the United States Treasury.
At September 30, 2008, amounts owed under the facility created
pursuant to the Fed Credit Agreement totaled US$63 billion,
including accrued fees and interest.
Since September 30, 2008, AIG has borrowed additional amounts
under the Fed Facility and has announced plans to sell assets and
businesses to repay amounts owed in connection with the Fed Credit
Agreement. Certain of AIG's domestic life insurance subsidiaries
subsequently entered into an agreement with the NY Fed pursuant to
which the NY Fed has borrowed, in return for cash collateral,
investment grade fixed maturity securities from the insurance
subsidiaries.
On November 10, 2008, the U.S. Treasury agreed to purchase,
through its Troubled Asset Relief Program, US$40 billion of newly
issued AIG perpetual preferred shares and warrants to purchase a
number of shares of common stock of AIG equal to 2% of the issued
and outstanding shares as of the purchase date. All of the
proceeds will be used to pay down a portion of the Federal Reserve
Bank of New York credit facility. The perpetual preferred shares
will carry a 10% coupon with cumulative dividends.
AIG and the Fed also agreed to revise the existing FRBNY credit
facility. The loan terms were extended from two to five years to
give AIG more time to complete its planned asset sales in an
orderly manner. The equity interest that taxpayers will hold in
AIG, coupled with the warrants, will total 79.9%.
At September 30, 2008, AIG had US$1.022 trillion in total
consolidated assets and US$950.9 billion in total debts.
Shareholders' equity was US$71.18 billion, including the addition
of US$23 billion of consideration received for preferred stock not
yet issued.
The Troubled Company Reporter reported on March 4, 2009, that
Moody's Investors Service confirmed the A3 senior unsecured debt
and Prime-1 short-term debt ratings of American International
Group, Inc. AIG's subordinated debt rating has been downgraded to
Ba2 from Baa1. The rating outlook for AIG is negative. This
rating action follows AIG's announcement of net losses of
US$62 billion for the fourth quarter and US$99 billion for the
full year of 2008, along with a revised restructuring plan
supported by the U.S. Treasury and the Federal Reserve. This
concludes a review for possible downgrade that was initiated on
September 15, 2008.
APART RECOLETA: Trustee Verifying Proofs of Claim Until Sept. 9
---------------------------------------------------------------
The court-appointed trustee for Apart Recoleta S.A.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
September 9, 2009.
The trustee will present the validated claims in court as
individual reports on October 22, 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 3, 2009.
KANUTEO SRL: Trustee Verifying Proofs of Claim Until August 3
-------------------------------------------------------------
The court-appointed trustee for Kanuteo S.R.L.'s reorganization
proceedings will be verifying creditors' proofs of claim until
August 3, 2009.
The trustee will present the validated claims in court as
individual reports on September 15, 2009. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
October 28, 2009.
Creditors will vote to ratify the completed settlement plan
during the assembly on March 18, 2010.
LINEA 18: Trustee Verifying Proofs of Claim Until July 8
--------------------------------------------------------
The court-appointed trustee for Linea 18 S.R.L.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
July 8, 2009.
The trustee will present the validated claims in court as
individual reports on September 18, 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 9, 2009.
PREMIL SA: Trustee Verifying Proofs of Claim Until September 4
--------------------------------------------------------------
The court-appointed trustee for Premil S.A.'s reorganization
proceedings will be verifying creditors' proofs of claim until
September 4, 2009.
The trustee will present the validated claims in court as
individual reports on October 16, 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 14, 2009.
Creditors will vote to ratify the completed settlement plan
during the assembly on August 6, 2010.
PUBLICIDAD ENRIQUE: Verifying Proofs of Claim Until Aug. 12
-----------------------------------------------------------
The court-appointed trustee for Publicidad Enrique C. Silvetti
S.A.'s reorganization proceedings will be verifying creditors'
proofs of claim until August 12, 2009.
ROCSANT SRL: Trustee Verifying Proofs of Claim Until September 8
----------------------------------------------------------------
The court-appointed trustee for Rocsant S.R.L.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
September 8, 2009.
The trustee will present the validated claims in court as
individual reports on October 21, 2009. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
December 2, 2009.
SE VOLVIO LOCO: Proofs of Claim Verification Due on August 26
-------------------------------------------------------------
Jorge Ernesto del Hoyo, the court-appointed trustee for Se volvio
loco Barbarito SA's reorganization proceedings, will be verifying
creditors' proofs of claim until August 26, 2009.
Mr. del Hoyo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of Clerk
No. 16, 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 16, 2010.
The Trustee can be reached at:
Jorge Ernesto del Hoyo
Cerrito 484
Buenos Aires, Argentina
SILPE SA: Proofs of Claim Verification Due on September 11
----------------------------------------------------------
Mario Adrian Narisna, the court-appointed trustee for Silpe SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until September 11, 2009.
Mr. Narisna will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 14, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Mario Adrian Narisna
Av. Corrientes 1628
Buenos Aires, Argentina
TELECOM ARGENTINA: Telecom Italia Plans to Sell Stake in Firm
-------------------------------------------------------------
Telecom Italia SpA (TI) may sell its stake in Telecom Argentina
S.A. -- which analysts valued at around EUR400 million -- if
interesting opportunities arise, Giada Zampano of Dow Jones
Newswires reports, citing TI Chief Executive Franco Bernabe. "If
there are interesting offers, we could also take into
consideration a sale", the report quoted Mr. Bernabe as saying.
"A sale is not the objective. The objective is to raise the value
of the asset," he added.
According to the report, citing Argentinean press, Grupo Clarin
(GCLA.BA) and a partnership between prominent local businessmen
Eduardo Eurnekian and Ernesto Gutirrez are interested in buying
the stake in Telecom Argentina.
DJ Newswires notes Telecom Italia owns a 50% stake in Sofora
Telecomunicaciones SA, which holds controlling interest in Telecom
Argentina. The report relates an ongoing antitrust investigation
has blocked the Italian company's ability to exercise a call
option to take control of Sofora.
As reported in the Troubled Company Reporter-Latin America on
April 23, 2009, Dow Jones Newswires said the Argentine Competition
Commission, the country's antitrust agency, rejected an appeal
filed by Telecom Italia that challenged the agency's ruling
earlier, locking Telecom Italia directors from exercising voting
powers in the company's local unit, Telecom Argentina.
A TCRLA report on April 15, citing Bloomberg News, recalled
Telecom Italia's directors on Telecom Argentina's board were told
to abstain from exercising voting powers while the regulator
investigates Telco SpA's purchase of a controlling stake in
Telecom Italia. According to Bloomberg News, Telefonica SA,
Assicurazioni Generali SpA, Intesa Sanpaolo SpA, Mediobanca SpA
and the Benetton family gained control of Telecom Italia, through
holding company Telco, in October 2007. Telco owns 24.5 percent
of the Milan-based company.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As reported in the Troubled Company reporter-Latin America on
Feb. 16, 2009, Standard & Poor's Ratings Services lowered Telecom
Argentina SA's foreign currency rating to B-/Stable/ and local
currency rating to B/Stable/. The outlook on both ratings is
stable.
YARD SECURITY: Proofs of Claim Verification Due on September 8
--------------------------------------------------------------
Moises Abel Freilich, the court-appointed trustee for Yard
Security SRL's bankruptcy proceedings, will be verifying
creditors' proofs of claim until September 8, 2009.
Mr. Freilich will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 3 in Buenos Aires, with the assistance of Clerk
No. 5, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Moises Abel Freilich
Viamonte 1446
Buenos Aires, Argentina
=========
A R U B A
=========
VALERO ENERGY: To Temporarily Shut Down Aruba Refinery
------------------------------------------------------
Valero Energy Corp will temporarily close its Aruba refinery for
at least two months this summer, as falling prices for its refined
products make the plant less profitable, The Associated Press
reports.
The refinery, which now processes about 275,000 barrels a day,
will be completely offline by mid-July, spokesman Bill Day said in
an email obtained by the news agency.
According to the report, the refiner will decide whether to
restart operations in August or September.
Mr. Day, the report notes, said the plant's 700 workers will
meanwhile perform routine maintenance projects or join training
programmes during the shutdown.
AP recalls Valero bought the Aruba plant in 2004 but has been
looking to sell it since last year.
About Valero Energy
Valero Energy Corporation -- http://www.valero.com/--
incorporated in 1981, owns and operates 16 refineries located in
the United States, Canada, and Aruba that produce conventional
gasolines, distillates, jet fuel, asphalt, petrochemicals,
lubricants, and other refined products, as well as a slate of
premium products, including conventional blendstock for oxygenate
blending (CBOB) and reformulated gasoline blendstock for oxygenate
blending (RBOB). The Company markets refined products on a
wholesale basis in the United States and Canada through bulk and
rack marketing network. It also sells refined products through a
network of about 5,800 retail and wholesale branded outlets in the
United States, Canada, and Aruba. The Company operates through
two segments: refining and retail.
* * *
As of June 25, 2009, the company continues to carry Moody's "Ba1"
Preferred Stock rating.
=============
B E R M U D A
=============
SYNCORA GUARANTEE: BCP Offer for RMBS Classes Moved Until Friday
----------------------------------------------------------------
The BCP Voyager Master Funds SPC, Ltd., acting on behalf of and
for the account of the Distressed Opportunities Master Segregated
Portfolio, 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
Friday, June 26, 2009. The offer will expire at that time, unless
extended.
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 Fund unveiled results of the offer and the status of certain
discussions with holders of RMBS as of June 24, 2009. As of
June 24, 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 54.7 remediation points. RMBS representing 38.4
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.
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 24, 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
126685DS2 Countrywide Home Equity Loan Trust 2006D 226,354,373
41161MAB6 Harborview Mortgage Pass-Through
Certificates Series 2006-5 74,098,902
126685AT3 CWABS, Home Equity Revolving Loan 110,046,593
Trust 2005-K
1248MKAA3 C-BASS Mortgage Loan Asset-Backed
Certificates, Series 2007-SL1 66,977,590
75114GAB5 RALI 2006-QO4 Trust 51,404,290
41161PE41 Harborview Mortgage Pass-Through
Certificates 2006-CB1 39,701,573
456612AB6 Indymac Indx Mortgage Loan Trust 2006-AR6 84,772,320
41161PG64 Harborview Mortgage Loan Trust 2006-BU1 34,339,366
68402SAA7 Option One Mortgage Loan Trust 2007-HL1 205,830,564
12668VAB5 Countrywide Home Equity Loan Trust 2006-S7 23,900,595
86801CAA1 STICS 2007-1 83,210,970
65538BAA7 Nomura NAAC 2007-S2 -
41161PL35 Harborview Mortgage Pass-Through
Certificates 2006-4 93,977,192
41161PP72 Harborview Mortgage Pass-Through
Certificates 2006-4 -
41161PQ22 Harborview Mortgage Pass-Through
Certificates 2006-4 41,768,612
12668VAC3 Countrywide Home Equity Loan Trust 2006-S7 38,551,660
1248MKAB1 C-BASS Mortgage Loan Asset-Backed
Certificates, Series 2007-SL1 62,150,773
785778QA2 SACO I Trust 2006-1 10,941,134
41161PXG3 Harborview Mortgage Loan Trust 2005-15 14,575,372
41161PUJ0 Harborview Mortgage Pass-Through
Certificates 2005-11 12,686,329
12587PEM8 BSSP 2007-R5 (Bear Stearns) -
12668VAD1 Countrywide Home Equity Loan Trust 2006-S7 -
12668VAA7 Countrywide Home Equity Loan Trust 2006-S7 13,523,180
23332UGP3 Downey Savings and Loan Mortgage Trust
Series 2006-AR1 -
23332UGL2 Downey Savings and Loan Mortgage Trust
Series 2006-AR1 426,155
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
126685AU0 CWABS, Home Equity Revolving Loan 10,542,964
Trust 2005-K
456612AE0 Indymac Indx Mortgage Loan Trust 2006-AR6 42,044,903
07401UAB9 Bear Stearns Second Lien Trust 2007-SV1 162,192,000
126673QB1 Countrywide Home Equity Loan Trust 2004R 38,060,530
52524TAS3 Lehman XS Trust, Series 2007-8H -
41161PL68 Harborview Mortgage Pass-Through
Certificates 2006-4 -
30248EAA6 First Franklin Mortgage Loan Trust
Series 2007-FFB-SS 89,928,498
525248BL3 Lehman XS Trust, Series 2007-5H 25,219,400
75114GAE9 RALI 2006-QO4 Trust 40,478,820
126685AX4 CWABS, Home Equity Revolving Loan 39,787,632
Trust 2005-K
525248BK5 Lehman XS Trust, Series 2007-5H 28,593,744
126673QA3 Countrywide Home Equity Loan Trust 2004R -
126673MY5 Countrywide Home Equity Loan Trust 2004Q 49,857,273
126685AW6 CWABS, Home Equity Revolving Loan 12,978,770
Trust 2005-K
07401UAU7 Bear Stearns Second Lien Trust 2007-SV1 25,529,277
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 -
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.
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.
In April 2009, Standard & Poor's Ratings Services revised its
financial strength and financial enhancement ratings on Syncora
Guarantee Inc. to 'R' from 'CC'. Standard & Poor's also revised
its counterparty credit rating on Syncora to 'D' from 'CC'. An
insurer rated 'R' is under regulatory supervision because of its
financial condition. The 'CC' counterparty credit, financial
strength, and financial enhancement ratings on Syncora Guarantee
U.K. Ltd. are unchanged because at this time, that company is not
subject to any regulatory orders that mandate the suspension of
claims payments.
===========
B R A Z I L
===========
AMERICAN INT'L: Sells Stake in AIG Unibanco
-------------------------------------------
American International Group, Inc. has sold its 48% stake in a
Brazilian joint venture AIG Unibanco, LatinFrance reports.
According to the report, Itau Unibanco bought the entity for
BRL820 million.
Based in New York, American International Group, Inc., is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer. In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world. AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.
During the third quarter of 2008, requirements to post collateral
in connection with AIG Financial Products Corp.'s credit default
swap portfolio and other AIGFP transactions and to fund returns of
securities lending collateral placed stress on AIG's liquidity.
AIG's stock price declined from $22.76 on September 8, 2008, to
$4.76 on September 15, 2008. On that date, AIG's long-term debt
ratings were downgraded by Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch
Ratings, which triggered additional requirements for liquidity.
These factors and other events severely limited AIG's access to
debt and equity markets.
On September 22, 2008, AIG entered into an US$85 billion revolving
credit agreement with the Federal Reserve Bank of New York and
pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000
shares of Series C Perpetual, Convertible, Participating Preferred
Stock to a trust for the benefit of the United States Treasury.
At September 30, 2008, amounts owed under the facility created
pursuant to the Fed Credit Agreement totaled US$63 billion,
including accrued fees and interest.
Since September 30, 2008, AIG has borrowed additional amounts
under the Fed Facility and has announced plans to sell assets and
businesses to repay amounts owed in connection with the Fed Credit
Agreement. Certain of AIG's domestic life insurance subsidiaries
subsequently entered into an agreement with the NY Fed pursuant to
which the NY Fed has borrowed, in return for cash collateral,
investment grade fixed maturity securities from the insurance
subsidiaries.
On November 10, 2008, the U.S. Treasury agreed to purchase,
through its Troubled Asset Relief Program, US$40 billion of newly
issued AIG perpetual preferred shares and warrants to purchase a
number of shares of common stock of AIG equal to 2% of the issued
and outstanding shares as of the purchase date. All of the
proceeds will be used to pay down a portion of the Federal Reserve
Bank of New York credit facility. The perpetual preferred shares
will carry a 10% coupon with cumulative dividends.
AIG and the Fed also agreed to revise the existing FRBNY credit
facility. The loan terms were extended from two to five years to
give AIG more time to complete its planned asset sales in an
orderly manner. The equity interest that taxpayers will hold in
AIG, coupled with the warrants, will total 79.9%.
At September 30, 2008, AIG had US$1.022 trillion in total
consolidated assets and US$950.9 billion in total debts.
Shareholders' equity was US$71.18 billion, including the addition
of US$23 billion of consideration received for preferred stock not
yet issued.
The Troubled Company Reporter reported on March 4, 2009, that
Moody's Investors Service confirmed the A3 senior unsecured debt
and Prime-1 short-term debt ratings of American International
Group, Inc. AIG's subordinated debt rating has been downgraded to
Ba2 from Baa1. The rating outlook for AIG is negative. This
rating action follows AIG's announcement of net losses of
US$62 billion for the fourth quarter and US$99 billion for the
full year of 2008, along with a revised restructuring plan
supported by the U.S. Treasury and the Federal Reserve. This
concludes a review for possible downgrade that was initiated on
September 15, 2008.
BANCO INDUSTRIAL: S&P Affirms 'BB-/B' Counterparty Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'BB-/
B' counterparty credit rating and 'brA-' long-term Brazil national
scale rating on Banco Industrial e Comercial S.A.
"The ratings on BicBanco reflect S&P's view of the bank's mission
to grow its operations in a very competitive market without
pressuring margins and asset-quality indicators," said Standard &
Poor's credit analyst Ricardo Brito. BicBanco is also challenged
to maintain its funding profile in the current economic
environment. The bank's proven track record in sustaining its
strategy as a credit-oriented bank to middle-market companies,
adequate credit concession process, good profitability ratios, and
adequate liquidity management offset these risks.
S&P expects BicBanco to maintain its focus on lending to the upper
layer of the middle market. The bank's track record and its
short-term secured loan portfolio support above-average asset-
quality indicators. Like other banks that chose to operate in
this segment, BicBanco may face declining margins in the coming
years due to the fierce competition from larger banks. In this
scenario, the main challenge is to increase the volume of
operations and maintain its good credit quality to sustain its
profitability.
The stable outlook reflects S&P's view that BicBanco will be able
to maintain its core competencies in the medium term despite the
deteriorating operating environment. S&P believes that the bank's
good profitability ratios and adequate capitalization and
liquidity will protect it against some deterioration in asset
quality. S&P expects the bank to continue controlling its
liquidity and credit risks. An upward rating movement may follow
an improvement in the bank's business profile with proven
resilience in the face of local competition and economic
challenges, and the maintenance of profitability, asset quality,
and capitalization at levels consistent with the risk profile of
its business. Any negative rating action will likely be driven by
major impairments in the bank's financial indicators, particularly
asset quality, capital position, and earnings performance, or if
liquidity become problematic.
BNDES: Equity Stake Sale Plan May Hurt Companies
------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA (BNDES)'s
plan to sell its equity stakes in Gerdau SA and Centrais Eletricas
Brasileiras SA may hurt the companies, Paulo Winterstein of
Bloomberg News reports, citing Deutsche Bank AG. The report
relates BNDES President Luciano Coutinho said the bank, which
owns stock in 134 companies, will likely sell stocks this year as
the market rallies.
In the “unlikely” case that BNDES sold all of its stake in the
companies it owns, the stocks that would “suffer” most would be
the common shares of Eletrobras and of Gerdau, Deutsche Bank
strategist Guilherme Paiva said in a note obtained by the news
agency. The preferred shares of pulp producer Klabin SA and
common shares of electric utility Light SA would also be hurt by
the equity sales, he added.
The companies are “more vulnerable” based on the number of days
needed to remove excess shares from the market, Paiva wrote,
citing the average daily trading volume and the size of BNDES’s
holdings, Bloomberg News notes.
According to the report, Mr. Paiva said Petroleo Brasileiro SA,
Vale SA, and Cia. Siderurgica Nacional SA are the most likely to
be sold by BNDES because they “have the biggest unrealized capital
gains,”
About BNDES
Banco Nacional de Desenvolvimento Economico e Social SA is
Brazil's national development bank. It provides financing for
projects within Brazil and plays a major role in the
privatization programs undertaken by the federal government.
* * *
As of June 25, 2009, the company continues to carry Moody's Ba2
foreign long-term bank deposit rating.
EMBRAER: In Talks With BNDES to Increase Client's Financing
-----------------------------------------------------------
Empresa Brasileira de Aeronautica SA ("Embraer") is in talks with
Banco Nacional de Desenvolvimento Economico e Social SA (BNDES)
over increased credit lines to its clients, Alastair Stewart of
Dow Jones Newswires reports, citing local Estado newswire.
According to the report, Embraer CEO Frederico Fleury Curado said
around 40 of the 110 commercial jets due to be delivered in 2009
will receive financing from the BNDES, as the bank fills the hole
left by the contraction in commercial credit.
"If the scarcity of credit persists, the BNDES will have to
maintain this level of help longer term," the report quoted Mr.
Curado as saying.
Mr. Curado, the report relates, said that without continued help
from the BNDES, Embraer's position would be difficult.
About Embraer
Empresa Brasileira de Aeronautica SA ("Embraer") –-
http://www.embraer.com -- develops and produces aircraft for the
Brazilian Air Force into a public company that produces aircraft
for commercial aviation, executive jet and defense and government
purposes. The company is a manufacturer of commercial aircraft.
The company has developed a line of executive jets based on one of
its regional jet platforms and launched executive jets in the very
light, light, and ultra-large categories, the Phenom 100, Phenom
300 and Lineage 1000, respectively. In July 2008, the company
announced the acquisition of the remaining 40% interest in ELEB --
Embraer Liebherr Equipamentos do Brasil S.A., held by Liebherr
Aerospace S.A.S. ELEB's name will be changed to ELEB Equipamentos
S.A.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2009, Bloomberg News said Embraer will lay off around
4,200 workers, which represents 20% of its 21,362 employees, and
reduced its 2009 revenue forecast by 13% due to the global
recession.
GERDAU SA: Zack Investment Keeps “Sell” Recommendation
------------------------------------------------------
Zack Investment Research is keeping its “sell” recommendation on
Gerdau S.A. based on poor first quarter results and the worldwide
crises, Claudio Freitas of Zack Investment Research reports.
According to the report, Zack Investment Research analyst report
said company successfully renegotiated part of its debt and banks
accepted to relieve some covenants.
Zack Investment notes that analyst report said the company's
strategy to grow through acquisitions based on debt created huge
leverage and financial debt is expected to increase in the short-
term. The huge decline in steel prices and the international
economic slowdown creates a more challenging business environment
for the steel industry, the analyst report relates.
The company's strategy to grow through acquisitions based on debt
is contributing to the negative news, Zack Investment says.
Moreover, the report adds that huge exposure to the U.S. market
during a recession is a major concern.
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 19, 2009, the company continues to carry Moody's Ba1 LT
Corp Family rating and Ba1 Senior Unsecured Debt Ratings.
INFINITY BIO-ENERGY: Mulls Sale of Usinavi Mill
-----------------------------------------------
Brazil-based Infinity Bio-Energy Brasil Participacoes S.A. plans
to sell its Usinavi mill in the state of Mato Grosso do Sul,
LatinFrance reports, citing an unnamed executive involved in the
process.
According to the report, the asset for sale was predicted to have
a crushing capacity of 3.25m tons per year in the in 2008-2009
season.
The executive, the report relates, said he believes the asset will
be sold, as some companies with nearby assets have already
expressed interest. However, the reoprt notes the executive did
not provide an estimate on sale value.
About Infinity Bio-Energy
Headquartered in Brazil, Infinity Bio-Energy Brasil Participacoes
S.A. produces sugar and ethanol. It was founded in early 2006.
The company operates five mills in the states of Mato Grosso do
Sul, Minas Gerais and Espirito Santo.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 21, 2009, Reuters said Brazilian sugar and ethanol producer
Infinity Bio-Energy Brasil Participacoes S.A. has filed for
bankruptcy protection. The report related in a statement,
the company said it was seeking an "orderly" financial recovery by
filing for protection from creditors.
According to Dow Jones Newswires, citing Estado news service,
Company President Sergio Thompson-Flores said the company's woes
were a result of previously low sugar and ethanol prices as well
as delays in the delivery of new equipment. DJ Newswires related
Estado said that Infinity also racked up debt of BRL1 billion
(US$500 million). The company has assets of BRL1.2 billion, DJ
Newswires noted.
PERDIGAO: May File Prospectus for a Follow-on After Sadia Buyout
----------------------------------------------------------------
Brazil-based Perdigao S.A., which acquired Sadia SA in May, is
heard close to filing a prospectus for a follow-on, LatinFrance
reports, citing an unnamed executives close to the process. The
report relates the deal is expected to reach BRL4 billion or more.
As reported in the Troubled company Reporter-Latin America on
May 21, 2009, Bloomberg News said Perdigao agreed to take over
rival Sadia SA through a share-swap transaction. After the take
over, the new company will be known as BRF Brasil Foods SA and
incorporate Sadia shares owned by HFF Participacoes SA -– a
holding company formed by investors who have more than 51% of
Sadia’s voting stock -- Perdigao said in a statement obtained
by the news agency.
According to LatinFrance, UBS Pactual is leading the offering with
Banco do Brasil, JPMorgan and Santander holding joint bookrunner
titles. The report relates Credit Suisse is providing the company
with advisory related to the financing and M&A-related
restructuring, though will not be involved in the offering.
About Perdigao SA
Headquartered in Sao Paulo, Brazil, Perdigao SA is one of the
largest food processors in Latin America, with a focus on poultry,
pork, beef, milk and processed products, including dairy. With
revenues of BRL 10.3 billion for the last twelve months ending on
September 30th, 2008, Perdigao is one of the leaders in the
domestic market and exports over 40% of its sales to over 100
countries and 850 customers around the world.
* * *
As of June 25, 2009, the company continues to carry Moody's LT
Corp rating at Ba1 and Standard and Poor's LT Issuer Credit
Ratings at BB+
TELEMAR NORTE: Denies In Talks On Oi Control Change
---------------------------------------------------
Brazil-based Telemar Norte Leste SA (Telemar) denied reports over
a possible admission of a new partner in Tele Norte Leste
Participacoes S.A. (aka Oi), John Kolodziejski of Dow Jones
Newswires reports. Telemar is the holding company of Oi's
controlling shareholders.
"[Oi] is not involved in understandings with a view to altering
its controlling stake," Telemar was quoted by the report as
saying. "The eventual development of understandings or
negotiations, if and when they exist, will be immediately
communicated to the market and to Anatel, the sector regulatory
body," it added.
Headquartered in Brazil, Telemar Norte Leste SA is involved in
the telecommunications sector. It operates a fixed-line and
mobile telephone service in Brazil under the name Oi. The company
also offers Internet network, through the service Oi Velox, and
cable television, through Oi TV, to both individual and corporate
customers. Telemar Norte Leste SA operates in the states of Rio
de Janeiro, Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas,
Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Piaui, Maranho,
Para, Roraima, Amapa and Amazonas.
Its subsidiaries include TNL PCS (Oi), Telemar Internet Ltda and
Serede Servicos de Rede SA, among others. The Company is owned by
Tele Norte Leste Participacoes SA. In 2008, the Company launched
the third generation (3G) service. As of January 2009, Telemar
Norte Leste SA acquired Brasil Telecom Participacoes SA.
* * *
As of June 25, 2009, the company continues to carry Standard and
Poor's "BB+" Issuer Credit Ratings.
==========================
C A Y M A N I S L A N D S
==========================
ANTHRACITE MASTER: Creditors' Proofs of Debt Due on July 14
-----------------------------------------------------------
The creditors of Anthracite Master Company (6) Limited are
required to file their proofs of debt by July 14, 2009, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on May 27, 2009.
The company's liquidator is:
Ian Stokoe
PricewaterhouseCoopers
PO Box 258, Strathvale House,
George Town, Grand Cayman KY1-1104
c/o Elizabeth Osborne
e-mail: elizabeth.osborne@ky.pwc.com
Telephone: (345) 914 8686
Facsimile: (345) 945 4237
ARLO VI: S&P Confirms Credit Ratings on Four Series of CDOs
-----------------------------------------------------------
Standard & Poor's Ratings Services confirmed its credit ratings on
four series of collateralized debt obligations issued by ARLO VI
Ltd. and Arlo VIII Ltd.
Following Barclays Bank PLC's (AA-/Negative/A-1+) proposal to
increase the range of eligible credit support under the credit
support annex of these transactions, the ratings on these notes
will be capped at Barclays' long-term rating. This is because the
risk of liquidating the posted collateral, and being unable to
repay noteholders in full, is in S&P's view lower than the current
ratings on the notes.
Ratings List
Ratings Confirmed
ARLO VI Ltd.
EUR100 Million Secured Limited-Recourse Floating-Rate Credit-
Linked Notes Series 2006 (Gumbel CDO-A)
Rating
------
CCC-
ARLO VI Ltd.
EUR50 Million Secured Limited-Recourse Floating-Rate Credit-Linked
Notes Series 2006 (Gumbel CDO-B)
Rating
------
CCC-
Arlo VIII Ltd.
EUR100 Million Secured Limited-Recourse Credit-Linked Notes Series
2007 (Weibull CDO-A) (including further tap issuance)
Rating
------
BBB+
Arlo VIII Ltd.
EUR50 Million Secured Limited-Recourse Credit-Linked Notes Series
2007 (Weibull CDO-B)
Rating
------
BBB+
AVENUE ASIA: Placed Under Voluntary Wind-Up
-------------------------------------------
On June 9, 2009, the sole shareholder of Avenue Asia Equity
International, Ltd. resolved to voluntarily wind up the company's
operations.
The company's liquidator is:
Marc Lasry
535 Madison Avenue
New York, NY 10022, U.S.A.
AVENUE ASIA: Placed Under Voluntary Wind-Up
-------------------------------------------
On June 9, 2009, the sole shareholder of Avenue Asia Equity
International Master Genpar, Ltd. resolved to voluntarily wind up
the company's operations.
The company's liquidator is:
Marc Lasry
535 Madison Avenue
New York, NY 10022, U.S.A.
AVENUE ASIA: Placed Under Voluntary Wind-Up
-------------------------------------------
On June 9, 2009, the sole shareholder of Avenue Asia Equity Master
Fund, Ltd. resolved to voluntarily wind up the company's
operations.
The company's liquidator is:
Marc Lasry
535 Madison Avenue
New York, NY 10022, U.S.A.
AVENUE EVENT: Commences Liquidation Proceedings
-----------------------------------------------
On June 1, 2009, the sole shareholder of Avenue Event Driven
Master Fund, Ltd. resolved to voluntarily liquidate the company's
business.
The company's liquidator is:
Marc Lasry
535 Madison Avenue
New York, NY 10022, U.S.A.
AVENUE EVENT: Commences Liquidation Proceedings
-----------------------------------------------
On June 9, 2009, the sole shareholder of Avenue Event Driven, Ltd.
resolved to voluntarily liquidate the company's business.
The company's liquidator is:
Marc Lasry
535 Madison Avenue
New York, NY 10022, U.S.A.
AVENUE STRATEGIC: Commences Liquidation Proceedings
---------------------------------------------------
On June 9, 2009, the sole shareholder of Avenue Strategic Partners
Master Genpar, Ltd. resolved to voluntarily liquidate the
company's business.
The company's liquidator is:
Marc Lasry
535 Madison Avenue
New York, NY 10022, U.S.A.
BLACKSTONE KAILIX: Placed Under Voluntary Wind-Up
-------------------------------------------------
On June 9, 2009, the sole shareholder of Blackstone Kailix
Offshore Fund Ltd. resolved to voluntarily wind up the company's
operations.
The company's liquidator is:
Robert L. Friedman
345 Park Avenue
New York, NY 10154
U.S.A.
CAZENOVE WORLDWIDE: Creditors' Proofs of Debt Due on July 22
------------------------------------------------------------
The creditors of Cazenove Worldwide Absolute Return Fund Limited
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 May 28, 2009.
The company's liquidator is:
John Sutlic
c/o Kim Charaman
Telephone: (345) 949 8455
Facsimile: (345) 949 8499
Close Brothers (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034, Grand Cayman KY1-1102
GLOBAL STRATEGY: Commences Liquidation Proceedings
--------------------------------------------------
At an extraordinary meeting held on June 8, 2009, the members of
Global Strategy Limited resolved to voluntarily liquidate the
company's business.
The company's liquidators are:
Mufeed Rajab
Janick Fierens
Box 5340, Manama, Bahrain
INVESTCORP AMPERSAND I: Commences Liquidation Proceedings
---------------------------------------------------------
At an extraordinary meeting held on June 8, 2009, the members of
Investcorp Ampersand I Limited resolved to voluntarily liquidate
the company's business.
The company's liquidators are:
Mufeed Rajab
Janick Fierens
Box 5340, Manama, Bahrain
MODENA HOLDINGS: Creditors' Proofs of Debt Due on July 22
---------------------------------------------------------
The creditors of Modena Holdings Limited 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 1, 2009.
The company's liquidator is:
John Sutlic
c/o Kim Charaman
Telephone: (345) 949 8455
Facsimile: (345) 949 8499
Close Brothers (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034, Grand Cayman KY1-1102
NEW HORIZON: Placed Under Voluntary Wind-Up
-------------------------------------------
On June 5, 2009, the sole shareholder of New Horizon Company Ltd.
resolved to voluntarily wind 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
OLD MUTUAL: Creditors' Proofs of Debt Due on July 22
----------------------------------------------------
The creditors of Old Mutual Al SAQR Fund Limited 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 4, 2009.
The company's liquidator is:
John Sutlic
c/o Kim Charaman
Telephone: (345) 949 8455
Facsimile: (345) 949 8499
Close Brothers (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034, Grand Cayman KY1-1102
SMART LIMITED: Placed Under Voluntary Wind-Up
---------------------------------------------
On June 9, 2009, the sole shareholder of Smart Limited resolved to
voluntarily wind 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
==================
C O S T A R I C A
==================
POPULAR INC: Banco Popular Offers Loans for "Boosters"
------------------------------------------------------
Banco Popular, a Costa Rica unit of Popular Inc, is offering a
line a credit to customers for the specific purpose of buying a
child restraint, offering a loan at 12% for a 60 month term,
Inside Costa Rica reports.
The report relates the full effect of the new Ley de Transito goes
into effect on September 23, which will require all children 12
years of age and under to be strapped in an appropriate child seat
or booster.
According to Inside Costa Rica, Milagro Hernandez, co-ordinator of
credit processing, said that customers have to bring in a proposal
for the item they intend to purchase, their cedula and a copy,
proof of employment (orden patronal0 and salary and the bank will
approve the credit in 30 minutes or less. Following the approval,
the bank will immediately issue the customer a cheque payable to
the store selling the article for the purchase, he added.
About Popular Inc.
Headquartered in Puerto Rico, Popular Inc. (Nasdaq: BPOP) --
http://www.popular.com/-- is a full service financial
institution with operations in Puerto Rico, the United States,
the Caribbean and Latin America.
* * *
As of June 25, 2009, the company continues to carry these low
ratings from these major rating agencies:
* Moody's
-- Senior unsecured debt at Ba1
-- Subordinate Debt at Ba2
-- Preferred stock at Ca
* Standard and Poors
-- LT issuer Credit ratings at BB-
-- ST Issuer Credit ratings at B
* Fitch
-- LT Issuer Default Rating at B
-- Senior Undecured Debt at B
-- Preferred Stock at C
-- Short Term at B-
-- ST Issuer Default Rating at B
-- Individualr rating at D/E
===============
C O L O M B I A
===============
* COLOMBIA: GDP Shrinks 0.6% in 1Q; Economy in Recession
--------------------------------------------------------
Colombia’s economy contracted less than analysts expected in the
first quarter as government spending and mining revenue offset
declines in manufacturing and consumer spending, Helen Murphy and
Alexander Cuadros of Bloomberg News report.
Colombia's economy shrank 0.6% in the first quarter compared with
the same period a year ago, Inti Landauro of Dow Jones Newswires
reports. The same report relates the market expected more of a
contraction.
According to Bloomberg News, the economy into a recession.
“This number shows Colombia is one of the least hit by the global
crisis,” Bloomberg News quoted Daniel Nino, head of research at
Bancolombia, Colombia’s largest bank, who forecast the economy
would shrink 0.7 percent, as saying. “We shouldn’t despair or be
too pessimistic about the future.”
Bloomberg News says that to spur growth in Colombia, policy makers
have slashed interest rates from a record 10 percent in November
to 4.5% on June 19.
Bloomberg News relates Julian Cardenas, an analyst at Bogota-based
brokerage Corredores Asociados, said the government plans to
stimulate growth with subsidies for housing and appliances as well
as credit lines for cars didn’t come until the second quarter of
this year.
* * *
As reported by the Troubled Company Reporter-Latin America on
January 9, 2009, Fitch Ratings assigned a long-term foreign
currency Issuer Default Rating of 'BB+' to the Republic of
Colombia 10-year US$1 billion Eurobond (7.375% coupon).
===========
G U Y A N A
===========
CL FIN'L: Local Judge Allows Sale of CLICO Guyana's Properties
--------------------------------------------------------------
Guyana Chief Justice Ian Chang gave has given the go signal to
CLICO Life and General Insurance Company South America Limited
(CLICO Guyana), a unit of CL Financial Limited, to sell its prime
real estate in the South American country, Associated Press
reports. The report relates the approval will aid the firm to
honour its commitment to policyholders and pension fund
contributors.
According to the report, Chief Justice Chang's approval amid the
the continued liquidation of Colonial Life Insurance Company.
As reported in the Troubled Company Reporter-Latin America on
March 4, 2009, Trinidad and Tobago Newsday said the Guyana
government has placed CLICO Guyana's operations under
judicial management prior to winding up of the company, Trinidad
and Tobago Newsday reports. The government's move, the report
relates, follows the liquidation of Clico (Bahamas) Limited, which
has a 51% stake in CLICO Guyana. According to TCRLA report on
Feb. 27, citing CaribWorldNews, the Bahamian Supreme Court granted
a request from the islands government to liquidate Clico Bahamas
for the protection of company shareholders. Craig Gomez of Baker
Tilley Gomez was appointed as the liquidator of the company,
according to the same report.
Caribbean Net News related Guyana's president, Bharrat Jagdeo,
said Clico Guyana has $6.9 billion (US$34 million) invested in
CLICO Bahamas, which represents 53% of the Guyana company’s total
assets. Clico Guyana has also "not been able to exchange its
illiquid assets for more suitable investments despite repeated
instructions by the government of Guyana,” President Jagdeo said
as cited by the news agency. President Jagdeo, as cited by
Caribbean Net News, added that although Clico Guyana's investments
held in CLICO Bahamas were liquid on paper, investigations
revealed that the Bahamas company was exposed to real estate
investments in Florida through related party transactions with
other subsidiaries in the group.
Caribbean Net News noted President Jagdeo said that Clico Guyana
has experienced liquidity strain due to sizable claims on the
company following the news from Trinidad. President Jagdeo,
Caribbean Net News notes, said the company has so far managed to
meet its claims but has been forced to dispose of some of its
investments including its shares in the Berbice River Bridge,
which amounts to some $2 billion, to New Building Society.
About CL Financial
According to Wikipedia, CL Financial Limited is the largest
privately held conglomerate in Trinidad and Tobago and one of the
largest privately held corporations in the entire Caribbean.
Founded as an insurance company, Colonial Life Insurance Company
(CLICO) by Cyril Duprey, it was expanded into a diversified
company by his nephew, Lawrence Duprey. CL Financial is now one
of the largest local conglomerates in the region, encompassing
over 65 companies in 32 countries worldwide with total assets
standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2009, the Trinidad and Tobago Express said Central Bank
Governor Ewart Williams disclosed that an examination of insurance
company CLICO, dissolved finance house CLICO Investment Bank and
other CL Financial companies, showed a deficit between $6 billion
and $8 billion.
Tobago President George Maxwell Richards, The Express related,
signed bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.
=========
H A I T I
=========
* HAITI: IDB Approves US$120 Million in Grants for 2010
-------------------------------------------------------
The Inter-American Development Bank (IDB) has approved US$120
million in grants for 2010 to help Haiti make investments in key
sectors such as infrastructure, basic services and disaster
prevention, Caribbean360.com reports. The report relates the
amount is an increase from the US$100 million allocated this year,
up from the US$50 million in each of the previous two years.
According to the report, IDB is also readying projects totaling
US$100 million for Haiti that are due to be presented to its Board
of Executive Directors over the next few months.
Caribbean360.com says the US$120 million grant allocation for next
year is expected to provide more funds for investments in
transportation infrastructure, a second phase of the
rehabilitation of the Peligre hydroelectric plant and the
extension of water services in the capital Port-au-Prince, among
other priority activities.
The IDB, the report notes, is currently financing 22 projects in
Haiti, with a total budget of US$675 million.
===============
H O N D U R A S
===============
* HONDURAS: IDB Approves US$50 Million Credit Line
--------------------------------------------------
Inter-American Development Bank (IDB) has approved a US$50 million
credit line for Honduras to revamp the agricultural corridor,
improving freight and passenger transportation conditions,
LatinFrance reports.
According to the report, the credit line consists of a US$35
million tranche for a 30-year term, with a 5.5-year grace period,
and carries a variable interest rate. The report relates the
remaining US$15 million is for a 40-year term with a 40-year grace
period and a 0.25% interest rate.
The program, the report says, is expected to cost US$77 million,
of which the OPEC fund for International Development will provide
US$25 million.
LatinFrance adds the Honduran government’s US$2 million
contribution will come from local counterpart funding.
* * *
As of June 25, the company continues to carry Moody's "B2"
Currency ratings with stable outlook.
=============
J A M A I C A
=============
AIR JAMAICA: Government to Miss Divestment Deadline Again
---------------------------------------------------------
The Jamaican government seems set to miss the June 30 deadline for
the divestment of the national carrier Air Jamaica Limited, Go-
Jamaica reports.
According to the report, Prime Minister Bruce Golding gave the
clearest indication on June 24 during his monthly call in
programme, Jamaica House live.
Jamaica Information Service relates Mr. Golding, during his
Jamaica House Live radio programme on June 24, said: "Prominent in
the consideration is going to be what is in Jamaica's long-term
interest. The airline is interwoven with our economic programme,
particularly in relation to tourism; but not tourism alone.
Therefore, we are going to make sure that whatever we do we will
still have destinations that are linked to Jamaica; to support our
tourism industry and to provide us with access to critical
gateways."
As reported in the Troubled Company Reporter-Latin on April 6,
2009, The Assoiated Press said the Jamaican government has
extended Air Jamaica's divestment deadline to June 30 as it tries
to attract buyers. A TCRLA report on March 19, citing
RadioJamaica News, related the government will not be
meeting its March 31 deadline for the sale of Air Jamaica despite
earlier assurances by government officials that a deal would have
been reached with a buyer in March.
According to Radio Jamaica, Don Wehby, the minister without
portfolio in the finance ministry, said a meeting is already
scheduled for mid-April with an international airline group from
which the privatization committee has already received an
indicative offer for Air Jamaica.
Radio Jamaica noted the airline has been hemorraghing over US$150
million (JA$13.2 billion) per annum and government has had to foot
the massive bill. In addition, Radio Jamaica said, Air Jamaica
currently has loans outstanding of over US$600 million (JA$52.8
billion).
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica
Limited -- http://www.airjamaica.com/-- was founded in 1969. It
flies passengers and cargo to almost 30 destinations in the
Caribbean, Europe, and North America. Air Jamaica offers vacation
packages through Air Jamaica Vacations. The company closed its
intra-island services unit, Air Jamaica Express, in October 2005.
The Jamaican government owned 25% of the company after it went
private in 1994. However, in late 2004, the government assumed
full ownership of the airline after an investor group turned over
its 75% stake. The Jamaican government does not plan to own Air
Jamaica permanently.
* * *
As of June 18, 2009, the company continues to carry Moody's LT
Corp Family rating and Senior Unsecured Debt rating at B2. The
company also continues to carry Standard and Poor's LT Foreign
Issuer Credit Rating at B-.
DIGICEL GROUP: Has US$1.2-Billion Deficit as of March 31
--------------------------------------------------------
Digicel Group recorded a US$41-million annual net profit for
fiscal year ended March 31, 2009. However, this did little to
impact the more than US$1.2 billion it has racked up in deficits
over the years, The Jamaica Gleaner reports.
According to the report, the company's deepening foray into the
region is also carrying with it a burgeoning debt, which has been
supported primarily by Digicel's strong growth in (EBITDA) and
which carries a high interest component that draws down huge
amounts of cash out of the firm's coffers.
The company, the report says, has actually been posting quarterly
net profit, albeit small relative the sizeable deficit, since the
December quarter of 2007 and has seen considerable improvement
over the last two quarters reported - US$10.5 million in the
December quarter of 2008 and US$24.8 million in the March quarter
this year. However, the report relates the group's accumulated
deficit placed its equity position at US$983 million in the red.
Hence, huge amounts of debt and with it high interest costs are
carried on the books of the company, the report notes.
The Gleaner says the group's total liabilities stood at US$3.6
billion compared to its asset base of US$2.63 billion at the end
of March this year, while debt payments totalled US$338 million up
from US$296 million the year before a 14 per cent increase in
finance cost.
Digicel Group, the Gleaner says, saw its current assets exceed
current liabilities by US$12 million at the end of March this
year, which was an improvement from the US$23 million working
capital deficit it had at the end of the 2007/2008 financial year.
This, however, may have gone back in the red as the firm forked
out US$215 million cash for a 35.8 per cent stake in Digicel
Holdings Central America Limited on April 1, the report relates.
The Gleaner discloses that the heavy borrowing that has supported
the group's capital investment over the years has been supported
by strong EBITDA growth. The report relates total debt relative
to EBITDA has been shrinking on a quarterly basis since December
2007 and stood at 4.6 times (total debt to EBITDA) at the end of
March this year compared to the 6.1 it stood at the end of
December 2007.
Digicel's Jamaica earnings during the March quarter represented
27% of revenue for the group and for the year to March 31 was
closer to 29%. The report says during the March quarter Digicel
experienced an 11% decline in revenue from its Jamaican
operations, or earned US$111 million in sales, a 4% decline in
Trinidad and Tobago, while the French West Indies saw a decline
from US$49 million to US$45 million.
About Digicel Group
Digicel Group -- www.digicelgroup.com -- is renowned for
competitive rates, unbeatable coverage, superior customer care, a
wide variety of products and services and state-of-the-art
handsets. By offering innovative wireless services and community
support, Digicel has become a leading brand across its 31 markets
worldwide.
Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide. Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos. The Caribbean company also has coverage
in St. Martin and St. Barths. Digicel Pacific comprises Fiji,
Papua New Guinea, Samoa, Tonga and Vanuatu.
* * *
As of June 25, the company continues to carry these low ratings
from Moody's:
-- LT Corp Family Rating at B2
-- Senior Undecured Debt Rating at Caa1
-- probability of Default at B2
DYOLL GROUP: To Wound Up Operations
-----------------------------------
Arrangements has been made to wind-up Jamaica-based Dyoll Group
Limited, RadioJamaica reports.
According to the report, the Supreme Court has approved the
appointment of Management Consultant Kenneth Tomlinson as Dyoll's
liquidator.
Mr. Tomlinson, the report relates, has given Dyoll's creditors
five weeks in which to contact with his office. The report says
creditors have until July 31 to submit their names and addresses
along with particulars of their debts or claims.
Dyoll Group Limited is a Jamaica-based company. The Company is
principally engaged in providing management services to its
subsidiaries and associated companies, as well as holding of
investments. Dyoll Group Limited's subsidiaries are Dyoll
Insurance Company Limited and Dyoll/Wataru Coffee Company Limited.
JUTC: Seeks Government Guarantee for JM$425 Million Loan
--------------------------------------------------------
Cash-strapped Jamaica Urban Transit Company (JUTC)is seeking the
Jamaican parliament's approval for a cash-guarantee of JM$425
million loan facility, which the bus company is seeking from the
Bank of Nova Scotia, RadioJamaica reports.
According to the report, the matter was scheduled to be voted on
during June 23's sitting of Parliament. However, the report
relates, it was postponed until next week after Member of
Parliament for Central Kingston Ronnie Thwaites said he needed
more time to review the document outlining details of the
guarantee.
About JUTC
Jamaica Urban Transit Company (JUTC) was established in 1998 to
provide a centrally managed state-of-the-art public bus service.
The government invested US$6 billion aiming to have an efficient
transport system and for the Jamaican people.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2009, RadioJamaica said JUTC has defaulted on loan
obligations with RBTT Bank and Petrocaribe Development Fund, among
others, due to cash flow problems.
The Ministry of Information, as cited by Radio Jamaica, stated
that the JUTC operates an overdraft facility of US$520 million at
the National Commercial Bank which expired in February. The
report noted that the Ministry said this facility is consistently
utilised at the upper limit and, on occasions, exceeds the limit
giving rise to the imposition of penalty charges above 43%.
SCJ: Approval for Hampden Estate Sale Baffles Ex-Owners' Lawyers
----------------------------------------------------------------
The Jamaican government's approval for the sale of state-owned
Sugar Company of Jamaica (SCJ)'s Hampden Sugar Estate in Trelawny
is baffling former owners' lawyers, who obtained an injunction
months ago challenging the sale, RadioJamaica News reports.
According to the report, Agriculture Minister Dr. Christopher
Tufton told Parliament on Tuesday that the Government had found a
buyer for Hampden.
"As far as I'm concerned, Hampden has an injunction which exists
until June 2. That injunction is against the Sugar Company of
Jamaica (SCJ) Holding Limited and the Trelawny Sugar Company,
which are the ones that I'm most concerned about. Therefore, I'm
surprised that those entities would be engaged in any transaction
while the injunction is in place," then report quoted attorney-at-
law Crafton Miller, who is representing the Hampden Sugar Estate,
as saying.
An Agriculture Ministry source told the news agency that the
government will abide by whatever ruling the court hands down, but
is confident about its ability to successfully fight the
injunction.
As reported in the Troubled Company Reporter-Latin America on
June 22, 2009, RadioJamaica said the court injunction, which
barred SCJ from selling its stake, was extended until July 2,
after the issue of the extension was not heard due to the
unavailability of the judge.
According to a TCRLA report on May 21, citing RadioJamaica, the
Jamaican government's plan to divest SCJ's five sugar factories
may face trouble if the original owners of the Hampden Estate
succeed in their legal battle in the High Court. The report
recalled Hampden has sued the SCJ, the Trelawny Sugar Company
which operated the factory, and the former receiver/manager John
Lee in its objection to the divestment.
The Gleaner noted that SCJ's sugar factories are now expected to
be sold off to what has been described as a "priority four
investors." The report recalled sources said the government
failed to offload the company as a single entity. The report
noted the shortlisted four are:
* a conglomerate -- Hussey family and American
partners -- who is going after the Long Pond and Hampden
Estates in Trelawny;
* U.S.-based Energen Corporation for the Petrojam Ethanol
facility and Bernard Lodge, Innswood, Monymusk estates in
Clarendon;
* Italians Eridania Sadam, who is eyeing the Frome estate in
Westmoreland; and
* Fred M. Jones, in partnership with Seprod Limited, has set
his sights on the Duckenfield estate in St Thomas.
===========
M E X I C O
===========
AMERICAN INT'L: Sells Consumer Finance Operations in Mexico
-----------------------------------------------------------
American International Group, Inc. (AIG) has agreed to sell its
consumer finance operations in Mexico to Desarrollo de Negocios
Integrados and Inversiones (DNI) for an undisclosed amount,
LatinFrance reports.
According to the report, the units being sold are Sofom AIG
Universal and Marketcenter Services.
The report relates UBS advised AIG on the sales, while Kramer
Levin Naftalis & Frankel served as legal counsel to the insurer.
Based in New York, American International Group, Inc., is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer. In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world. AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.
During the third quarter of 2008, requirements to post collateral
in connection with AIG Financial Products Corp.'s credit default
swap portfolio and other AIGFP transactions and to fund returns of
securities lending collateral placed stress on AIG's liquidity.
AIG's stock price declined from $22.76 on September 8, 2008, to
$4.76 on September 15, 2008. On that date, AIG's long-term debt
ratings were downgraded by Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch
Ratings, which triggered additional requirements for liquidity.
These factors and other events severely limited AIG's access to
debt and equity markets.
On September 22, 2008, AIG entered into an US$85 billion revolving
credit agreement with the Federal Reserve Bank of New York and
pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000
shares of Series C Perpetual, Convertible, Participating Preferred
Stock to a trust for the benefit of the United States Treasury.
At September 30, 2008, amounts owed under the facility created
pursuant to the Fed Credit Agreement totaled US$63 billion,
including accrued fees and interest.
Since September 30, 2008, AIG has borrowed additional amounts
under the Fed Facility and has announced plans to sell assets and
businesses to repay amounts owed in connection with the Fed Credit
Agreement. Certain of AIG's domestic life insurance subsidiaries
subsequently entered into an agreement with the NY Fed pursuant to
which the NY Fed has borrowed, in return for cash collateral,
investment grade fixed maturity securities from the insurance
subsidiaries.
On November 10, 2008, the U.S. Treasury agreed to purchase,
through its Troubled Asset Relief Program, US$40 billion of newly
issued AIG perpetual preferred shares and warrants to purchase a
number of shares of common stock of AIG equal to 2% of the issued
and outstanding shares as of the purchase date. All of the
proceeds will be used to pay down a portion of the Federal Reserve
Bank of New York credit facility. The perpetual preferred shares
will carry a 10% coupon with cumulative dividends.
AIG and the Fed also agreed to revise the existing FRBNY credit
facility. The loan terms were extended from two to five years to
give AIG more time to complete its planned asset sales in an
orderly manner. The equity interest that taxpayers will hold in
AIG, coupled with the warrants, will total 79.9%.
At September 30, 2008, AIG had US$1.022 trillion in total
consolidated assets and US$950.9 billion in total debts.
Shareholders' equity was US$71.18 billion, including the addition
of US$23 billion of consideration received for preferred stock not
yet issued.
The Troubled Company Reporter reported on March 4, 2009, that
Moody's Investors Service confirmed the A3 senior unsecured debt
and Prime-1 short-term debt ratings of American International
Group, Inc. AIG's subordinated debt rating has been downgraded to
Ba2 from Baa1. The rating outlook for AIG is negative. This
rating action follows AIG's announcement of net losses of
US$62 billion for the fourth quarter and US$99 billion for the
full year of 2008, along with a revised restructuring plan
supported by the U.S. Treasury and the Federal Reserve. This
concludes a review for possible downgrade that was initiated on
September 15, 2008.
GRUPO POSADAS: Moody's Downgrades Corporate Family Rating to 'B2'
-----------------------------------------------------------------
Moody's de México downgraded Grupo Posadas, S.A.B. de C.V.'s
senior unsecured debt and corporate family ratings to B2 from B1.
The ratings outlook is negative.
The downgrade reflects the greater than anticipated deterioration
of Posadas' credit metrics in recent quarters, expected further
tightening of the company's liquidity, as well as potential
additional earnings pressures given the continued reduction of
economic growth forecasts for Mexico and the expected impact on
2Q09 results from the recent swine flu outbreak.
Moody's notes that while Posadas' earnings have only softened
modestly in absolute terms in recent quarters, margins have come
under increasing pressure from lower demand. For the 12 months
ended March 31, 2009, reported EBITDA was MXN1.51 billion, up
slightly from MXN1.46 billion in 2007, while EBITDA margin was
down 310bp to 21.4%. In 1Q09, Posadas' EBITDA fell 4.3% to
MXN374 million, with lower occupancy levels and room rates more
than offsetting the benefits of a stronger U.S. dollar on the
company's mostly dollar-denominated earnings as measured in pesos.
EBITDA margin for the quarter was 20.4%, down 310 bp.
Despite the recent decline in LTM earnings being only modest,
credit metrics have weakened significantly. This is because of
incremental external funding needed to meet margin calls in late
2008 under derivative contracts and the adverse currency effects
on dollar-denominated debt from a weaker peso (nearly all of
Posadas' debt is in dollars after giving effect to hedges).
Higher operating leases and an incremental drawdown under
factoring lines in 4Q08 have also added to weaker adjusted
metrics. For LTM 1Q09, adjusted Debt/EBITDA was 5.3 times, up
from 4.4 times in LTM 3Q08 (i.e. just prior to the peso
depreciation). EBIT/Interest was 1.9 times, down from around 2.2
times for the same period.
Moody's believes that credit metrics could weaken further
throughout 2009 as lower earnings in Posadas' Mexican core lodging
business (particularly in the more cyclical coastal locations) and
a deceleration in the company's Vacation Club timeshare business
will likely more than offset more stable performance in South
America and in the loyalty program and call center businesses.
Moody's believes that revenues per available room in Mexico, while
recovering in the post-swine flu weeks of 2Q09, may remain below
historical levels over the near to medium term and thus continue
to weigh on earnings for the time being.
Posadas' liquidity has tightened in recent months due to weak
performance trends and shrinking cushion under syndicated loan
covenants. Moody's believes that given current earnings trends
the company may require covenant waivers at the time of scheduled
step-downs in 4Q09. Liquidity continues to be hampered by high
cash collateral requirements under derivative contracts related to
cross currency swaps that convert peso-denominated debt (primarily
certificados bursátiles or local notes) into dollar liabilities.
As of March 31, 2009, Posadas had posted MXN940 million in cash
collateral for margin calls, in line with a MXN/US$exchange rate
of 14.15. Moody's estimates that all else equal, cash collateral
requirements would increase by about USD15 million for each unit
the MXN/US$exchange rates increases.
Posadas' continued access to bank financing and factoring lines
somewhat mitigates these liquidity risks. The company is
currently in the process of putting in place additional secured
credit facilities, which would help address near-term debt
maturities and preserve a modest liquidity cushion to absorb
potential incremental margin calls under its derivative contracts.
Moody's also expects Posadas to seek increased availability under
its existing timeshare receivable factoring facilities, freeing up
additional liquidity sources to meet future debt maturities. As
of March 31, 2009, short-term debt was MXN1.15 billion, 0.54 times
covered by MXN626 million in cash reserves.
Posadas's ratings continue to be supported by the company's
leading position and brand recognition in the Mexican hotel
industry, nationwide coverage, segment diversification, solid free
cash flow in recent years, and the ongoing shift of its business
mix towards the less cyclical and less capital intensive
management of third party hotels. Key credit challenges besides
the aforementioned high financial leverage and weak liquidity
include the company's limited operating scale, stiff competition
from large, financially strong domestic and international chains
(particularly in the 4-star segment), and the pronounced
cyclicality of the lodging industry. The ratings also incorporate
Moody's belief that Mexicana, an ailing airline, may in the future
require financial support from Posadas, its largest shareholder
with a 30% equity stake.
The negative outlook reflects the company's challenging earnings
prospects and its tight liquidity due to currency exposures under
derivative contracts and high near-term debt maturities.
Ratings could be downgraded if liquidity tightened further; for
example if free cash flow turned negative on a sustained basis or
if additional margin calls occurred should the peso continue to
depreciate. The outlook could stabilize if liquidity improved,
with near-term debt maturities reduced and derivative related
currency exposures from derivative contracts largely eliminated,
while performance and credit metrics strengthened.
The last rating action on Posadas was on December 9, 2008, when
Moody's downgraded the company's ratings to B1 from Ba3 with a
negative outlook.
Grupo Posadas, S.A.B. de C.V., headquartered in Mexico City, is a
leading hotel chain operator in Latin America, with
MXN7.05 billion (USD580 million) in revenues for the 12 months
ended March 31, 2009, and 109 hotels and 19,653 rooms in
operation. Posadas derives most of its revenues from Mexico,
where it operates its key 5 and 4-star Fiesta Americana and Fiesta
Inn formats, a 3-star format ("One") and its Vacation Club
timeshare business. The company also operates hotels in Brazil,
Argentina and Chile under its Caesar Park and Caesar Business
brands and has a small operation in Texas.
=================
V E N E Z U E L A
=================
ARVINMERITOR INC: Sells Stake in LVS Chassis Businesses
-------------------------------------------------------
ArvinMeritor, Inc. has reached agreements to divest its entire
ownership stakes in two joint ventures in its light vehicle
Chassis business. Together, these transactions will result in the
divestiture of 45% of the Chassis Systems business -- as measured
by 2008 sales.
The Company entered into a binding letter of intent to sell its
57% stake in Meritor Suspension Systems Company, a joint venture
that manufactures and sells automotive coil springs, torsion bars
and stabilizer bars in North America, to its joint venture
partner, a subsidiary of Mitsubishi Steel Mfg. Co., LTD. The
transaction is expected to close in the coming months, after
receiving necessary regulatory clearances.
ArvinMeritor also announced that, earlier this month, it completed
the sale of its 51% stake in Gabriel de Venezuela, which
manufactures shock absorbers, struts, exhaust systems and
suspension modules for countries including Venezuela, Colombia,
Chile, Bolivia, Peru and Ecuador.
"We are pleased to announce these two divestitures, which
represent important steps toward achieving our long-term strategic
objective to focus on supplying the commercial vehicle on- and
off-highway markets for both original equipment manufacturers and
aftermarket customers," said Chip McClure, chairman, CEO and
president. "Our joint venture partners are strong companies and I
am confident that they will focus on growing these businesses. We
continue to concentrate on divesting the light vehicle Chassis
business, and we are pleased with the high level of interest we
are continuing to see from potential buyers in the remaining
segments of that business."
About ArvinMeritor
ArvinMeritor, Inc. -- http://www.arvinmeritor.com/-- is a premier
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry. The company marks
its centennial anniversary in 2009. ArvinMeritor serves
commercial truck, trailer and specialty original equipment
manufacturers and certain aftermarkets, and light vehicle
manufacturers. ArvinMeritor common stock is traded on the New
York Stock Exchange under the ticker symbol ARM.
ArvinMeritor posted a net loss of US$47 million for the three
months ended March 31, 2009, on sales of US$1.11 billion. The
Company had US$2.87 billion in total assets; US$1.29 billion in
current liabilities, US$1.37 billion in long-term debt, US$654
million in retirement benefit obligations, US$272 million in other
liabilities, and US$50 million in minority interests, resulting in
US$769 million in shareowners' equity.
As reported by the Troubled Company Reporter on May 14, 2009,
ArvinMeritor Inc. said in a regulatory filing with the Securities
and Exchange Commission that it is possible the company may be
required to obtain an amendment to the senior secured credit
facility and its U.S. securitization facility by the end of its
third fiscal quarter to allow additional flexibility under the
senior secured debt to EBITDA covenant contained therein and, in
the absence of a waiver, to prevent a default under such
facilities. If amendments or waivers are not necessary before the
end of the third quarter, it is increasingly likely that the
company will require them prior to the end of the fiscal year.
As reported by the TCR on June 11, 2009, Fitch Ratings kept
ArvinMeritor's ratings on Watch Negative (IDR 'CCC'); (Secured
'B') and (Senior unsecured 'CC') as a result of Chrysler's and
General Motors' bankruptcies.
PDVSA: Venezuela Government Approves Bond Issue
-----------------------------------------------
The Venezuela government has approved a bond issue by state oil
Petroleos de Venezuela (PDVSA), but the company is still
negotiating a US$1.5 billion loan with a Japanese bank, Reuters
reports, citing Finance Minister Ali Rodriguez.
Sources told Reuters that the US$3 billion PDVSA bond -- issued in
dollars but payable in bolivar currency -- would go to the
secondary market in the second week of July. "This has already
been authorized by the central bank and the executive," the report
quoted Mr. Rodriguez as saying.
According to Reuters, Venezuela has suffered a sharp slide in oil
revenues in the global economic crisis and PDVSA is struggling to
pay down debts with contractors.
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.
***********
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 * * *