/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090814.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, August 14, 2009, Vol. 10, No. 160 Headlines A R G E N T I N A ASOCIACION CIVIL: Creditors' Proofs of Debt Due on October 5 BELLUZZO CONSTRUCCIONES: Creditors' Proofs of Debt Due on Sept. 11 DISTRI SIXMA: Trustee Verifying Proofs of Claim Until Sept. 25 FALCON E HIJOS: Asks for Opening of Preventive Contest GOLOSINAS ACEVEDO: Creditors' Proofs of Debt Due on September 7 PACIFIC TRADING: Creditors' Proofs of Debt Due on October 9 SOUTH LINK: Creditors' Proofs of Debt Due on Sept. 30 SUDAMERICANA DE SELLOS: Creditors' Proofs of Debt Due on August 4 TRANSPORTE FRIO: Creditors' Proofs of Debt Due on October 19 TUBOTILENO SRL: Creditors' Proofs of Debt Due on September 2 B E R M U D A OZ ALPHA: Creditors' Proofs of Debt Due on August 19 OZ ALPHA: Members to Receive Wind-Up Report on September 7 OZ BETA: Creditors' Proofs of Debt Due on August 19 OZ BETA: Members to Receive Wind-Up Report on September 7 PACKETEXCHANGE (BERMUDA): To Receive Proofs of Debt Until Aug. 19 PACKETEXCHANGE (BERMUDA): Members' Meeting Set for September 9 B R A Z I L AES CORP: AES Eletropaulo's 2Q Net Profit Drops to BRL154.9 Mil. BANCO DO BRASIL: Second Quarter Profit Up 43% to BRL2.35 Billion BANCO DO BRASIL: Sees Sustainable Low Loan Rates BANCO NACIONAL: Provides BRL705-Mil. Credit Line to Suzano Papel JBS SA: Posts BRL172.7 Million Net Income on Beef Demand Gain TELE NORTE: Obtains “Weak” Earnings Outlook Until Incorporation TAM SA: Records 88.3% International Market Share in July C A Y M A N I S L A N D S CHATHAM ASSET: Members Receive Wind-Up Report CORTLAND CAPITAL: Members Receive Wind-Up Report CONDOR STRATEGIES: Members Receive Wind-Up Report CVI GVF: Members Receive Wind-Up Report FALCON CAPITAL: Members Receive Wind-Up Report FALCON LIQUID: Members Receive Wind-Up Report FGPI LIMITED: Members Receive Wind-Up Report FIF III HOLMAR: Members to Receive Wind-Up Report on August 27 FIF III MIJAC: Members to Receive Wind-Up Report on August 27 FLR CAYMAN: Members Receive Wind-Up Report GARTMORE CAYTOS: Members to Receive Wind-Up Report on August 27 GLENVIEW CAPITAL: Members Receive Wind-Up Report GRACIE SPC: Members to Receive Wind-Up Report on August 20 GRACIE SPC: Members to Receive Wind-Up Report on August 20 HOLMAR ACQUISITION: Members to Receive Wind-Up Report on August 27 C O L O M B I A * COLOMBIA: Venezuela Considers Suspending Country's Oil Export J A M A I C A AIR JAMAICA: Unions Sees Job Cuts After Company's Sale M E X I C O ALESTRA S: Tender Gets Tepid Response, Latin France Says ARRENDADORA VE: Moody's Assigns 'Ba3' Global Issuer Ratings BANCO VE: Moody's Assigns 'D-' Bank Financial Strength Rating CEMEX SAB: S&P Changes CreditWatch on 'B-' Rating to Developing * MEXICO: Oil Output May Fall to 2.6 Million Barrels in 2009 S T K I T T S & N E V I S FOUR SEASONS: Severance Payments for Nevis Workers Totals EC$7MM T R I N I D A D & T O B A G O CL FINANCIAL: Liquidator to Wind Up Clico Investment Bank CL FINANCIAL: Court OKs Transfer of CLICO Health & Life Policies * TRINIDAD & TOBAGO: Has "Sharp Slowdown" in Economic Activity V E N E Z U E L A PETROLEOS DE VENEZUELA: Admits 7,372 Workers * VENEZUELA: Considers Suspending Colombian Gas Import X X X X X X X X * IDB Sees 11% Drop in Latin America & Caribbean Remittances - - - - - ================= A R G E N T I N A ================= ASOCIACION CIVIL: Creditors' Proofs of Debt Due on October 5 ------------------------------------------------------------ Juan Treppo, the court-appointed trustee for Asociacion Civil Liga Independiente de Futbol Amateur's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 5, 2009. Mr. Treppo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 42, 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: Juan Treppo Sarmiento 1183, Argentina BELLUZZO CONSTRUCCIONES: Creditors' Proofs of Debt Due on Sept. 11 ------------------------------------------------------------------ The court-appointed trustee for Belluzzo Construcciones S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until September 11, 2009. The trustee will present the validated claims in court as individual reports on October 27, 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. DISTRI SIXMA: Trustee Verifying Proofs of Claim Until Sept. 25 -------------------------------------------------------------- The court-appointed trustee for Distri Sixma S.R.L.'s reorganization proceedings will be verifying creditors' proofs of claim until September 25, 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 February 2, 2010. Creditors will vote to ratify the completed settlement plan during the assembly on July 2, 2010. FALCON E HIJOS: Asks for Opening of Preventive Contest ------------------------------------------------------ Falcon e Hijos SA asked for the opening of preventive contest before the High Court of Argentina. The company stopped making payments on October 31, 2008. GOLOSINAS ACEVEDO: Creditors' Proofs of Debt Due on September 7 --------------------------------------------------------------- Hector Vegetti, the court-appointed trustee for Golosinas Acevedo SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 7, 2009. Mr. Vegetti 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. The Trustee can be reached at: Hector Vegetti Montevideo 711, Argentina PACIFIC TRADING: Creditors' Proofs of Debt Due on October 9 ----------------------------------------------------------- Hector Kaiser, the court-appointed trustee for Pacific Trading SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 9, 2009. Mr. Kaiser 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: Hector Kaiser Montevideo 666, Argentina SOUTH LINK: Creditors' Proofs of Debt Due on Sept. 30 ----------------------------------------------------- The court-appointed trustee for South Link Logistics S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until September 30, 2009. SUDAMERICANA DE SELLOS: Creditors' Proofs of Debt Due on August 4 ----------------------------------------------------------------- The court-appointed trustee for Sudamericana de Sellos S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until August 4, 2009. TRANSPORTE FRIO: Creditors' Proofs of Debt Due on October 19 ------------------------------------------------------------ Natalio Mandan, the court-appointed trustee for Transporte Frio Sur SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 19, 2009. Mr. Mandan will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 27, 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: Natalio Mandan Maipu 42, Argentina TUBOTILENO SRL: Creditors' Proofs of Debt Due on September 2 ------------------------------------------------------------ Hugo Angarolla, the court-appointed trustee for Tubotileno SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 2, 2009. Mr. Angarolla will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 16 in Buenos Aires, with the assistance of Clerk No. 31, 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: Hugo Angarolla Olazabal 2060, Argentina ============= B E R M U D A ============= OZ ALPHA: Creditors' Proofs of Debt Due on August 19 ---------------------------------------------------- The creditors of Oz Alpha Leasing Ltd. are required to file their proofs of debt by August 19, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda OZ ALPHA: Members to Receive Wind-Up Report on September 7 ---------------------------------------------------------- The members of OZ Alpha Leasing Ltd. will hold their final general meeting on September 7, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 3, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda OZ BETA: Creditors' Proofs of Debt Due on August 19 --------------------------------------------------- The creditors of Oz Beta Leasing Ltd. are required to file their proofs of debt by August 19, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda OZ BETA: Members to Receive Wind-Up Report on September 7 --------------------------------------------------------- The members of Oz Beta Leasing Ltd. will hold their final general meeting on September 7, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 3, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PACKETEXCHANGE (BERMUDA): To Receive Proofs of Debt Until Aug. 19 ----------------------------------------------------------------- The creditors of PacketExchange (Bermuda) Limited are required to file their proofs of debt by August 19, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 29, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PACKETEXCHANGE (BERMUDA): Members' Meeting Set for September 9 -------------------------------------------------------------- The members of PacketExchange (Bermuda) Limited will hold their final general meeting on September 9, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on July 29, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda =========== B R A Z I L =========== AES CORP: AES Eletropaulo's 2Q Net Profit Drops to BRL154.9 Mil. ---------------------------------------------------------------- AES Eletropaulo's second quarter net profit dropped 21.4% to BRL154.9 million (US$85.1 million) from BRL197 million in the year-ago quarter due to operational costs such as pension and legal fees, Kenneth Rapoza at Dow Jones Newswires reports. The report relates AES Eletropaulo registered costs of BRL190.3 million in pensions and other work-related overhead, up 55.2% from the same period in 2008. According to the report, AES Eletropaulo recorded revenue of BRL1.89 billion in the second quarter, up 3.7% from BRL1.8 billion in the second quarter of 2008 and also slightly higher than the first quarter. The report relates unit's second quarter adjusted EBITDA were BRL430 million, down 13.7% on the year but up from the BRL356 million in the preceding quarter. Ebitda margin rose on the quarter to 18% but is down from the year-ago period, when Ebitda margin at Eletropaulo was 21.6%, the report says. AES Eletropaulo is a subsidiary of North American energy major the AES Corporation. About AES Eletropaulo AES Eletropaulo is a major Brazilian power distributor in the state of Sao Paulo, created in the breakup of the old state-owned power distribution company Eletropaulo that monopolized electricity distribution in Sao Paulo from 1981 to 1999. The similarity of the names makes most old customers call it simply Eletropaulo. Eletropaulo has around 5 million customers, and it's stock is traded on Bovespa, where it is part of the Ibovespa index. The company is majority owned by AES Corporation. About AES Corporation The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of the world's largest global power companies, with 2007 revenues of US$13.6 billion. With operations in 29 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. * * * As reported in the Troubled Company Reporter-Latin America on April 7, 2009, Fitch Ratings affirmed The AES Corporation's long- term Issuer Default Rating at 'B+' with a Stable Rating Outlook. BANCO DO BRASIL: Second Quarter Profit Up 43% to BRL2.35 Billion ---------------------------------------------------------------- Banco do Brasil SA's second quarter profit rose 43% to BRL2.35 billion (US$1.28 billion) from BRL1.64 billion a year earlier after one-time gain from the sale of its stake in Brazilian credit-card payments processor Cia. Brasileira de Meios de Pagamento (Visanet) and as lending expanded, Telma Marotto and Flavia Bohone at Bloomberg News report. The report relates adjusted net income rose to BRL1.73 billion from BRL1.46 billion. According to the report, Banco do Brasil had BRL455 million of non-recurring gains, after the BRL1.41 billion sale of Visanet's stake. The report relates it is also the first time the bank has included in its earnings the acquisition of Sao Paulo-based Banco Nossa Caixa SA, which Banco do Brasil agreed to buy last year. Bloomberg News says that Banco do Brasil’s total lending expanded 33% to BRL252.5 billion; while personal loans increased 69%, and corporate credit expanded 32%. Loans to farmers expanded 10%, the report adds. The bank's total assets expanded 44% to BRL598.8 billion, Bloomberg News notes. 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 reported by the Troubled Company Reporter-Latin America on Jan. 20, 2009, Fitch Ratings affirmed Banco do Brasil S.A.'s Individual Rating at 'C/D'. BANCO DO BRASIL: Sees Sustainable Low Loan Rates ------------------------------------------------ Banco do Brasil SA sees sustainable low interest rates for its loans due to strict risk controls on its credit portfolio, Aluisio Alves at Reuters reports, citing Chief Executive Aldemir Bendine. According to the report, President Luiz Inacio Lula da Silva has urged federally controlled Banco do Brasil and public banks -- Caixa Economica Federal and state development bank BNDES -- to charge lower lending rates to increase competition with private sector firms. Reuters notes that Banco do Brasil and Caixa Economica have expanded their loan books faster than rivals Itau Unibanco, Bradesco (BBDC4.SA)(BBD.N) and other private banks, helping lift Brazil's economy out of recession. "Our interest rate guidelines are perfectly sustainable," the report quoted Mr. Bendine as saying. "The rates are much more aggressive and that's the role of Banco do Brasil," Mr. Bendine added. As reported in the Troubled Company Reporter-Latin America on August 12, 2009, Reuters related that Chief Executive of Itau Unibanco Roberto Setubal said lending rates by public banks in Brazil have fallen faster than at private-sector banks, but the levels currently charged on loans are not sustainable. According to the report, Brazilian banking spreads have fallen a lot in the past months, particularly after government measures that included urging public banks to reduce borrowing costs on many loans. "The rates that are being charged are not sustainable in many cases," the report quoted Mr. Setubal as saying. 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 reported by the Troubled Company Reporter-Latin America on Jan. 20, 2009, Fitch Ratings affirmed Banco do Brasil S.A.'s Individual Rating at 'C/D'. BANCO NACIONAL: Provides BRL705-Mil. Credit Line to Suzano Papel ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA said it has provided a BRL705 million credit line to Suzano Papel e Celulose, LatinFrance reports. The report relates a BNDES spokesman said tenor and pricing will depend on the use of proceeds when the company chooses to draw on the line. According to the report, Suzano Papel plans to use proceeds to finance investments in production. Suzano Papel e Celulose is Brazil’s second largest paper and pulp company. 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. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service JBS SA: Posts BRL172.7 Million Net Income on Beef Demand Gain ------------------------------------------------------------- Carlos Caminada and Laura Price at Bloomberg News report that JBS SA posted its first profit in three quarters after Brazilian consumption rose and financial expenses were cut. The report relates the company posted net income of BRL172.7 million (US$93.9 million), from a loss of BRL364.4 million a year earlier. According to the report, the company reduced financial expenses to BRL33.6 million from BRL508.8 million a year earlier. The report relates it boosted market share in Brazil to 17.6% from 14.5% as competitors closed plants and fired workers. The report says net sales in Brazil rose 19% to BRL1.37 billion while total sales rose 30%. As reported in the Troubled Company Reporter-Latin America on August 12, 2009, Bloomberg News said JBS SA was cut to “hold” from “buy” on August 11, at Banco Santander SA on the outlook U.S. demand is “sluggish” and that the initial offering of shares of its U.S. unit will lead to acquisitions. “We are downgrading JBS on valuation and our concern that sluggish beef and pork demand in the U.S. appears to be partly offsetting synergy gains from Smithfield Beef,” New York-based analyst Alexander Robarts wrote in a note obtained by the news agency. The planned US$2 billion IPO of JBS USA Holdings Inc. will “likely” lead to the purchase of a rival, “leaving open the question of price discipline,” Mr. Robarts added. About JBS SA JBS SA is one of the world's largest beef producers with operations in Brazil, the United States, Argentina, Australia and Italy. The company is the largest producer and exporter of fresh meat and meat by-products in Brazil, Argentina and Australian and the third largest in the USA. * * * As of June 17, 2009, the company continues to carry Moody's B1 LT Corp rating and B1 Senior Unsecured Debt rating. The company also continues to carry Standard and Poors LT issuer Credit ratings B+. TELE NORTE: Obtains “Weak” Earnings Outlook Until Incorporation --------------------------------------------------------------- Tele Norte Leste Participacoes S.A. (aka Oi)'s second quarter earnings are speculated to be “weak” as its owner won’t yet see benefits from its takeover of a rival, Brasil Telecom, Paulo Winterstein at Bloomberg News reports. “Telemar has gained a lot in previous days and it’s giving back those gains ahead of earnings, which likely will still be weak ahead of the incorporation of Brasil Telecom” because of costs from the takeover, the report quoted Alexandre Garcia, an analyst at Raymond James & Associates Inc. in Sao Paulo, as saying. According to the report, Brasil Telecom said it would incorporate its controller, Brasil Telecom Participacoes SA, as part of a capital reorganization that is part of Oi’s takeover of the company. The report relates Mr. Garcia said investors may have been expecting a single conversion of Brasil Telecom and Brasil Telecom Participacoes shares into Oi stock later this year, however, after the announcement, the full incorporation of Brasil Telecom by Oi likely won’t happen until 2010. “With this incorporation you can already begin to amortize the premium paid for shares, but you won’t see the full financial benefits yet,” the report quoted Mr. Garcia as saying. Oi will see savings of about 290 million reais a year after the takeover is amortized, Mr. Garcia added. As reported in the Troubled Company Reporter-Latin America on July 8, 2009, Dow Jones Newswires said anti-trust regulators at Brazil's Finance Ministry published a report that approved Tele Norte Leste (Oi)'s plan to acquire Brasil Telecom without restrictions. Dow Jones related the regulators' study focused on the broadband Internet market, and it detailed concerns about the merged company's dominance in certain areas. However, the report related the regulator chose not to sanction or restrict the company's broadband operations because of the relative ease with which new competition can enter these markets. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes S.A. (aka Oi)-- http://www.telemar.com.br-- provides fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As of July 1, 2009, the company continues to carry Standard and Poor's "BB+" long- term issuer credit rating. TAM SA: Records 88.3% International Market Share in July -------------------------------------------------------- TAM S.A. reports operating data for May 2009, as disclosed by the Brazilian National Civil Aviation Agency. According to ANAC, the airline registered a 6.2% growth in domestic demand from the same period last year, and a 4.3% increase in domestic supply. In July, market demand increased 25.7% and market supply increased 15.3%. TAM registered domestic market share (RPK) of 43.2%, a 7.9 p.p. decrease compared to the same period in 2008. Domestic load factor was 71.7%, 1.3 p.p. lower than the market average of 72.9%. In the international market, TAM registered 9.4% growth in RPK and 19.9% in ASK, compared to July 2008. The company attained market share of 88.3%, representing 15.8 p.p. growth year on year. The company attained 74.4% load factor, 4.1 p.p. higher than the market average of 70.3%. About TAM SA Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * As of June 17, 2009, the company continues to carry Fitch Ratings' 'BB' Foreign and Local Currency Issuer Default Ratings. The company also continues to carry Moody's B1 LT Corp Family Rating and Senior Unsecured Debt Ratings. ========================== C A Y M A N I S L A N D S ========================== CHATHAM ASSET: Members Receive Wind-Up Report --------------------------------------------- The members of Chatham Asset Management SPC 2 met on August 11, 2009, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CORTLAND CAPITAL: Members Receive Wind-Up Report ------------------------------------------------ The members of Cortland Capital Limited met on August 11, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Guy Major c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CONDOR STRATEGIES: Members Receive Wind-Up Report ------------------------------------------------- The members of Condor Strategies Ltd. met on August 11, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CVI GVF: Members Receive Wind-Up Report --------------------------------------- The members of CVI GVF SPC met on August 11, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FALCON CAPITAL: Members Receive Wind-Up Report ---------------------------------------------- The members of Falcon Capital Strategies Ltd. met on August 11, 2009, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FALCON LIQUID: Members Receive Wind-Up Report ---------------------------------------------- The members of Falcon Liquid Reserves Ltd. met on August 11, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FGPI LIMITED: Members Receive Wind-Up Report -------------------------------------------- The members of FGPI Limited met on August 11, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FIF III HOLMAR: Members to Receive Wind-Up Report on August 27 -------------------------------------------------------------- The members of FIF III Holmar Ltd will hold their final general meeting on August 27, 2009, at 10:00 a.m., to receive the liquidator's report the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FIF III MIJAC: Members to Receive Wind-Up Report on August 27 ------------------------------------------------------------- The members of FIF III Mijac Holdings Limited will hold their final general meeting on August 27, 2009, at 10:00 a.m., to receive the liquidator's report the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FLR CAYMAN: Members Receive Wind-Up Report ------------------------------------------ The members of FLR Cayman Ltd. met on August 11, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GARTMORE CAYTOS: Members to Receive Wind-Up Report on August 27 --------------------------------------------------------------- The members of Gartmore Caytos Fund Limited will hold their final general meeting on August 27, 2009, at 10:00 a.m., to receive the liquidator's report the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GLENVIEW CAPITAL: Members Receive Wind-Up Report ------------------------------------------------ The members of Glenview Capital SPC met on August 11, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GRACIE SPC: Members to Receive Wind-Up Report on August 20 ---------------------------------------------------------- The members of Gracie SPC 1 will hold their final general meeting on August 20, 2009, at 10:00 a.m., to receive the liquidator's report the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GRACIE SPC: Members to Receive Wind-Up Report on August 20 ---------------------------------------------------------- The members of Gracie SPC 2 will hold their final general meeting on August 20, 2009, at 10:00 a.m., to receive the liquidator's report the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands HOLMAR ACQUISITION: Members to Receive Wind-Up Report on August 27 ------------------------------------------------------------------ The members of Holmar Acquisition Ltd. will hold their final general meeting on August 27, 2009, at 10:00 a.m., to receive the liquidator's report the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands =============== C O L O M B I A =============== * COLOMBIA: Venezuela Considers Suspending Country's Oil Export --------------------------------------------------------------- Venezuelan Energy and Oil Minister Rafael Ramirez said that the government is considering halting the import of Colombian gas on account of the recent political impasse between the two neighboring countries, Xinhua News reports, citing local newspaper El Nacional. "We can have a balance in gas production and we can stop buying gas from Colombia without any problem," the report quoted Mr. Ramirez as saying. According to the report, the two countries launched an oil pipeline in October, 2007, to transport 250 million cubic feet of gas daily from Colombia to Venezuela. The report, citing a contract, relates that the transfer would last until 2011, when Venezuela begins gas supplies to Colombia. Mr. Ramirez, who is also president of state-owned Petroleos de Venezuela, said: "That is a contract between both countries. It will depend on how the ties are developed," Xinhua News notes. Xinhua News recalls that Venezuelan President Hugo Chavez announced the freezing of the country's diplomatic ties with Colombia on July 28, after Colombia intended to allow U.S. military presence in Colombian bases, and accused Venezuela of aiding Colombian rebels. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. ============= J A M A I C A ============= AIR JAMAICA: Unions Sees Job Cuts After Company's Sale ------------------------------------------------------ National Workers Union, the union representing Air Jamaica Limited workers, expects that job cuts will be part of an agreement between the airline's management and the selected buyer, RadioJamaica reports. The report relates National Workers Union Vice President, Granville Valentine, said that based on the responses coming out of a Steering Committee meeting held last week, the unions have deduced that job cuts are imminent. "They clearly indicate before anything is concretized as it relates to the decision about workers, then they would have had discussions with all stakeholders to include the workers' representative. That is somehow suggestive that the company and the government have some plan of carrying out some level of redundancy," the report quoted Mr. Valentine as saying. According to the report, Mr. Valentine said that while the unions have not been party to any redundancy talks, they expect to be consulted before any decision is made. "There is no increase that was offered to the workers and there is no redundancy exercise to which we are a party to, so we would hope that if that is the intention then the dialogue will start now. In spite of government carrying out an activity of such, then the government is not bigger than the law and there is a process that must be followed as it relates to how we treat such a situation," Mr. Valentine said, the report relates. The next meeting of the Steering Committee will be held on Tuesday, August 18, the report notes. As reported in the Troubled Company Reporter-Latin America on June 29, 2009, RadioJamaica News said the Jamaican government indicated it will name a buyer for cash-strapped Air Jamaica. A TCR-LA report on June 10, citing Jamaica Observer, related that Trinidad and Tobago-owned Caribbean Airlines and Thomas Cook have both expressed an interest in acquiring Air Jamaica. Radio Jamaica said the airline has been hemorrhaging over US$150 million per annum and the government has had to foot the massive bill. In addition, Radio Jamaica said, Air Jamaica currently has over US$600 million in loans outstanding. 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 reported in the Troubled Company Reporter-Latin America on August 10, 2009, Standard & Poor's Ratings Services said that it lowered its foreign currency corporate credit rating on Air Jamaica Ltd. to 'CCC+' from 'B-'. The outlook is negative. The rating action followed S&P's recent lowering of the long-term sovereign credit rating on Jamaica (CCC+/Negative/C). =========== M E X I C O =========== ALESTRA S: Tender Gets Tepid Response, Latin France Says -------------------------------------------------------- Alestra S. de R.L. de C.V. received consent from holders representing US$67 million -- 35% -- of its US$193 million in 8% 2010 bonds, LatinFrance reports. The report relates the figures apply to the results as of the August 7 early participation deadline. According to the report, the telecom, jointly owned by Grupo Alpha and AT&T, was offering an additional US$2.50 per US$1,000 for early consent, and holders will have until August 21 to tender bonds at the normal price. The report relates Alestra is funding the buyback with proceeds from sale of 2014 bonds. As reported in the Troubled company Reporter-Latin America on August 6, 2009, Bloomberg News said Alestra sold US$200 million of five-year notes. The report related the company sold the notes to yield 11.75%. According to the report, Citigroup Inc. and Morgan Stanley arranged the sale. About Alestra S. de R.L Alestra S. de R.L. de C.V. is a Mexican telecommunications company. * * * As reported in the Troubled Company Reporter-Latin America on August 11, 2009, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Alestra S. de R.L. de C.V. ARRENDADORA VE: Moody's Assigns 'Ba3' Global Issuer Ratings ----------------------------------------------------------- Moody's Investors Service assigned long- and short-term global local currency issuer ratings of Ba3 and Not Prime to Arrendadora Ve por Mas, S.A. On its Mexican National Scale, Moody's assigned long- and short-term issuer ratings of A3.mx and MX-2 to the company. All these ratings have stable outlooks. According to Moody's, Arrendadora BX+'s ratings reflect its good financial profile overall, including good asset quality and comfortable capitalization. The company is well managed and has a long track record of leasing operations in the Mexican market. Arrendadora BX+ also benefits from connections with its sister bank Banco Ve por Mas, S.A., which include sharing of infrastructure, staff, risk management practices and customer base. In Moody's view, to a large extent the leasing and banking units of Grupo Financiero Ve por Mas, S.A., complement each other's offerings of financial products. However, Moody's notes that Arrendadora BX+ is exposed to the structural weaknesses stemming from its small scale, as reflected by its asset base of Mx$532 million (US$40 million) as of June 2009, as well as its limited business potential given its low geographic diversification and monoline business nature. These elements tend to make earnings less stable relative to more diversified businesses, and serve to limit the ratings. Arrendadora BX+'s ratings also reflect the potential risks related to corporate governance because of the GFBX+'s family-based ownership structure. The long-term Mexican National Scale rating of A3.mx indicates issuers or issues with above average creditworthiness relative to other domestic issuers. The short-term Mexican National Scale rating of MX-2 indicates that the issuer has a good ability to repay short-term senior unsecured debt obligations relative to other domestic issuers. Arrendadora BX+ is headquartered in Mexico City. These ratings were assigned to Arrendadora Ve por Mas, S.A.: * Global local currency issuer rating, long term: Ba3 * Global local currency issuer rating, short term: Not Prime * Mexican National Scale issuer rating, long term: A3.mx * Mexican National Scale issuer rating, short term: MX-2 * Outlook: Stable BANCO VE: Moody's Assigns 'D-' Bank Financial Strength Rating ------------------------------------------------------------- Moody's Investors Service assigned a bank financial strength rating of D- (D minus) to Banco Ve por Mas, S.A. At the same time, Moody's assigned long- and short-term global local currency deposit ratings of Ba3 and Not Prime, respectively. The bank was also assigned foreign currency deposit ratings of Ba3 / Not Prime. On its Mexican National Scale, Moody's assigned long- and short- term deposit ratings of A3.mx and MX-2, respectively. All these ratings have stable outlooks. Moody's said that BX+'s D- BFSR reflects its small banking franchise and scale as demonstrated by a limited -- though developing -- market presence, and modest share of the system's deposits. The bank's limited business scope, geared towards commercial loans to the agricultural industry and to small- and medium-sized enterprises, together with the lack of a retail banking business lead to less diversification and a relatively less stable revenue base when compared to its more diversified peers. Moody's noted that BX+'s credit risk is largely contained because of the bank's well managed operation and important exposure to loans partially guaranteed by Mexican government-sponsored programs or guarantees, which leaves a small part of its agricultural loan book at risk. The bank's focus on SME lending -- although largely covered by liquid guarantees and other types of collateral -- may be a reason for concern, given the riskier profile of the segment overall. Moreover, BX+'s family ownership structure limits the ratings because this raises potential concerns about board independence and corporate governance, including the potential for increased exposure to related parties from the low level currently observed. The BFSR also takes into account BX+'s narrow financial flexibility and modest ability to fund under stress given the large proportion of expensive, confidence-sensitive funds in its funding mix, which -- relative to more diversified funding models -- increases liquidity risk despite the apparent stability of these funds observed under normal operating scenarios. The bank's financial strength rating is underpinned by a good financial profile overall and consistent core profitability. Moody's also cites BX+'s comfortable capitalization and very good asset quality metrics as positive rating factors. Management and shareholders have a proven track record in the Mexican financial sector and have demonstrated high commitment to their investment, which also weigh positively on the ratings. The long-term Mexican National Scale rating of A3.mx indicates issuers or issues with above average creditworthiness relative to other domestic issuers. The short-term Mexican National Scale rating of MX-2 indicates that the issuer has a good ability to repay short-term senior unsecured debt obligations relative to other domestic issuers. BX+ is headquartered in Mexico City. As of June 2009, the bank reported nearly Mx$11 billion (nearly US$821 million) in assets. These ratings were assigned to Banco Ve por Mas, S.A.: * Bank Financial Strength Rating: D- * Global Local Currency deposits, long term: Ba3 * Global Local Currency deposits, short term: Not Prime * Foreign Currency deposits, long term: Ba3 * Foreign Currency deposits, short term: Not Prime * Mexican National Scale, long term: A3.mx * Mexican National Scale, short term: MX-2 * Outlook: Stable CEMEX SAB: S&P Changes CreditWatch on 'B-' Rating to Developing --------------------------------------------------------------- Standard & Poor's Ratings Services revised its CreditWatch listing on Cemex S.A.B. de C.V.'s 'B-' long-term corporate credit rating -- as well as its national scale ratings, and senior unsecured debt and perpetual debentures, and on its subsidiaries -- to developing from negative, where they were placed on March 10, 2009, reflecting S&P's concerns about the timely refinancing of its bank loan maturities in 2009. The revision of the CreditWatch status follows Cemex's announcement that all of its creditors have indicated that they will support the company's refinancing plan. Cemex is currently in the documentation phase. "We believe this refinancing should materially improve Cemex's liquidity position, since the company is expected to extend its maturities through February 2014. As of June 31, 2009, Cemex's cash position was about $979 million and it faces $4.3 billion in short-term debt maturities. The closing of the agreement to sell Cemex's Australian operations to Holcim Group for A$2.02 billion this year should also provide the issuer with additional liquidity. Still, S&P continue to expect that the company's financial performance will be under a great deal of pressure throughout 2009, especially amid the worsening of worldwide economic conditions," said Standard & Poor's credit analyst Juan Pablo Becerra. About 74% of the company's revenue is concentrated in the U.S., Mexico, and Spain -- each of which S&P expects to record negative growth this year. This will translate into lower volumes and cash flow generation compared with 2008. * MEXICO: Oil Output May Fall to 2.6 Million Barrels in 2009 ------------------------------------------------------------ Mexico may pump as little as 2.6 million barrels a day of oil this year amid declines at the country’s largest field, Andres R. Martinez and Jose Enrique Arrioja at Bloomberg News report, citing Energy Minister Georgina Kessel. Production will be between 2.6 million barrels and 2.7 million barrels Mr. Kessel told Bloomberg news in an interview. According to the report, Mexico’s output is slumping as production at Cantarell, the company’s largest field, drops at a rate twice as fast as forecast by Petroleos Mexicanos. The report relates last year, production slumped at the fastest rate since 1942. Finance Minister Agustin Carstens, the report notes, said the drop may cost the Mexican government MXN300 billion (US$23.1 billion) in lost sales this year and could lead the country to have a budget deficit in 2010. Bloomberg News notes that Mr. Carstens said Mexico faces the greatest “fiscal shock” in 30 years as output may fall to 2.5 million barrels a day next year, creating a budget deficit. ============================ S T K I T T S & N E V I S ============================ FOUR SEASONS: Severance Payments for Nevis Workers Totals EC$7MM ---------------------------------------------------------------- The total severance pay benefits to former workers of Four Seasons Resort Nevis totaled around EC$7 million, Caribbean Net News reports, citing Treasurer in the Nevis Island Administration Colin Dore. The report relates the Labour Departments on both St Kitts and Nevis handed out disbursements on August 13, with more than three quarters of the 564 resort's qualified workers got their benefits. According to the report, the Mr. Dore said that the distribution process had gone without incident and was of the view that the presence of the Labour Department representative from St Kitts who was on hand to explain to those persons who didn’t qualify the reason why and to respond to any queries facilitated a smooth and quick process. “I think that in a way calmed the crowd since any questions they had could have been answered on the spot and we are quite happy for that,” Mr. Dore was quoted by the report as saying. Mr. Dore, the report relates, also explained that the Social Security numbers were used as a guide since several persons who had worked at the Four Seasons Resort, Nevis, carried the same names and surnames. Four Seasons Hotels -- http://www.fourseasons.com-- manages some 75 luxury hotels and resorts in more than 30 countries. Most properties are operated under the Four Seasons name, but some are Regent hotels. It has ownership interests in only about half of its properties, having shifted from a hotel owner to a hotel operator in the 1990s. In 2007 Four Seasons Hotels board members took the company private. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: Liquidator to Wind Up Clico Investment Bank --------------------------------------------------------- Central Bank expects to select a receiver/liquidator who will be appointed by the High Court within the next month to wind up the Clico Investment Bank, the defunct unit of CL Financial Limited, Trinidad and Tobago Newsday reports, citing Central Bank Governor Ewart Williams. The report recalls that CIB was declared insolvent after Ernst and Young completed a company statement of affairs up to January 30, when government stepped in to take over the financial arms of the CL Financial Group. The report relates the Central Bank received the final report on June 26. According to the report, Mr. Williams also said that at the end of August, State-owned bank First Citizens, which took over CIB third party deposits, will begin paying interest due to the end of January 2009. The report relates Mr. Williams said in all, close to 5,000 deposit certificates, representing a portfolio amounting to TT$1.2 billion, were transferred to First Citizens. Mr. Williams, the report notes, said that 60% of depositors chose to leave their deposits with First Citizens while one hundred claims were received by the Deposit Insurance Corporation (DIC) from customers requesting their initial deposit plus interest. DIC began making the payments on the initial deposit from July 17, with approximately 1,200 certificates remained unclaimed as of June 30, Mr. Williams added. About CL Financial CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company, Colonial Life Insurance Company 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 August 10, 2009, A.M. Best Co. has downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCRLA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards 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. CL FINANCIAL: Court OKs Transfer of CLICO Health & Life Policies ---------------------------------------------------------------- Madame Justice Michelle Arana at the High Court in Belize has approved the transfer of life and health insurance portfolio from the Belize branch of CLICO (Bahamas) Limited, a unit of CL Financial Limited, to RF&G Life Insurance Company, Caribbean360.com reports. The report relates the transfer process has started and it is expected to be completed by September 1. The report related that in the interim, policyholders have been advised to continue paying their premiums as usual. As reported in the troubled Company Reporter-Latin America on August 4, 2009, Caribbean360.com said Supervisor of Insurance Alma Gomez and the Judicial Manager for CLICO (Bahamas) Limited, Mark Hulse at accounting firm Baker Tilly Hulse, ask the Supreme Court to approve the transfer of policies from the Belize branch of CLICO (Bahamas) to RF&G Life Insurance Company, Caribbean360.com reports. "What we have been telling policy holders from the inception that CLICO was put into liquidation in the Bahamas, was that we could transfer their policies from one insurance company to another. It did take a while to carry out that exercise because of the due diligence that had to be conducted. We have almost come to the end of that process where we have selected a company which is RFG Life Insurance Company to be the buyer for the life and health portfolio," the report quoted Mr. Gomez as saying. "What this means is that the court has now to approve that transfer. The office of the supervisor of insurance has already done the due diligence; we have checked out all that we need to check out. The company has done their due diligence too so we know what is being transferred," Mr. Gomez added. Caribbean360.com added that the Supervisor of Insurance suggested that it was best for all the policy holders to be transferred to RFG Life Insurance Company to avoid losing out on life savings they have put into CLICO. About CL Financial CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company, Colonial Life Insurance Company 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 August 10, 2009, A.M. Best Co. has downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCRLA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards 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. * TRINIDAD & TOBAGO: Has "Sharp Slowdown" in Economic Activity -------------------------------------------------------------- Central Bank Governor Ewart Williams said preliminary financial data showed a "sharp slowdown" in economic activity in Trinidad and Tobago, particularly in the first few months of 2009, but it does not suggest things had reached recession or "crisis proportions", Trinidad and Tobago Express reports. The report relates that Mr. Williams said "as of now, there are no signs that things are beginning to turn around." According to the report, in the first six months of this year, the economy has continued to degenerate rapidly. Some indicators show that: -- number and value of new real estate mortgage loans approved in the first six months of 2009 were 29% and 20 lower, respectively, than in the similar period in 2008; -- new vehicle sales plummeted by 41% in 2009 from 2008; -- number of job layoffs continued to rise in the second quarter of 2009, with almost 1,000 people received retrenchment notices between April and mid-July; and -- imports have also come down since the start of the year by about 50% from 2008. Mr. Williams, the report relates, said that an April report envisaged growth for 2009 in the range of 0% to 1%. "We are still reviewing our projections, but all indications are that there would be a decline in real GDP (Gross Domestic Product) for 2009 as a whole," the report quoted Mr. Williams as saying. "If this occurs, it would be the first annual decline in real GDP since 1993," Mr. Williams added. The report notes that Mr. Williams said the country's unemployment could increase to between 6% and 7% this year. Citizens could also continue to pay high prices for food as international price reversals could keep inflation above the targeted 6%, Mr. Williams added. "Lagging consumer and business confidence could make for a slow recovery in private sector credit demand," Mr. Williams was quoted by the report as saying. The downturn may also result in a fiscal deficit, the second for the country in consecutive years, Mr. Williams added. The report relates the downturn could also translate to a deficit in excess of TT$1.6 billion by the end of Government's fiscal year in September. Mr. Williams said that the economic slowdown was likely to last to the end of this year and even after that, would recover slowly, the report adds. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Admits 7,372 Workers -------------------------------------------- Petroleos de Venezuela released 200 new female and male workers in one of the docks nationalized by the Venezuelan state, located in San Francisco municipality, western Zulia state. Production and Services Internal Manager Ricardo Coronado said that following the delivery of the badges, PDVSA has recruited thus far 7,372 workers at the docks nationalized by the National Government, upon enforcing the Organic Law which Reserves Goods and Services Related to Hydrocarbons Primary Activities for the State. “We are keeping the promise made by President Hugo Chavez to release all these men and women, who will join the army of the New PDVSA at the service of all Venezuelans, thus preserving oil sovereignty and the industry wholeness,” said Mr. Coronado. Subsidiary Operaciones Acuáticas (Water Operations) has estimated a target of 8,000 people, over the total number of workers usually hired by contractors. During the release process, the state-run oil company has enforced the right to social justice of any and all workers; the elderly, handicapped people and pregnant women have been admitted. 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 July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' * VENEZUELA: Considers Suspending Colombian Gas Import ------------------------------------------------------ Venezuelan Energy and Oil Minister Rafael Ramirez said that the government is considering halting the import of Colombian gas on account of the recent political impasse between the two neighboring countries, Xinhua News reports, citing local newspaper El Nacional. "We can have a balance in gas production and we can stop buying gas from Colombia without any problem," the report quoted Mr. Ramirez as saying. According to the report, the two countries launched an oil pipeline in October, 2007, to transport 250 million cubic feet of gas daily from Colombia to Venezuela. The report, citing a contract, relates that the transfer would last until 2011, when Venezuela begins gas supplies to Colombia. Mr. Ramirez, who is also president of state-owned Petroleos de Venezuela, said: "That is a contract between both countries. It will depend on how the ties are developed," Xinhua News notes. Xinhua News recalls that Venezuelan President Hugo Chavez announced the freezing of the country's diplomatic ties with Colombia on July 28, after Colombia intended to allow U.S. military presence in Colombian bases, and accused Venezuela of aiding Colombian rebels. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. =============== X X X X X X X X =============== * IDB Sees 11% Drop in Latin America & Caribbean Remittances ------------------------------------------------------------ The Inter-American Development Bank’s Multilateral Investment Fund said Latin America and the Caribbean will receive about US$62 billion in remittances from its expatriates in 2009, a decline of about 11% from last year. The estimate reflects the impact of the global economic crisis on migrant workers from this region, most of whom are living in industrialized countries hit by recessions, such as the United States, Spain and Japan. “The crisis is clearly limiting migrants’ capacity to send money home,” said IDB President Luis Alberto Moreno. “Nevertheless, remittances have decreased less than other private financial flows to the region, as migrants continue to make sacrifices to provide for their families.” The estimate was based on the findings of a report conducted by Manuel Orozco of the Inter-American Dialogue, a Washington, D.C think-tank, in collaboration with MIF remittances specialists Natasha Bajuk and Gregory Watson. The report was based on data from a survey commissioned by the MIF of 1,350 Latin American and Caribbean migrants carried out between March and June, combined with desk research and statistical analysis of migration patterns and unemployment. The findings in the new report are in line with the MIF’s analysis of central bank data on remittance receipts. According to these official sources, remittances dropped 15% in the second quarter of 2009 with respect to the same period last year. In South America, Central America and the Andean region the slide was less steep than in previous quarters, while in Mexico and Caribbean countries the downward trend accelerated. The decline in remittances could impact more than four million people in Latin America and the Caribbean, nearly one-third of them in Mexico, by far the leading recipient of remittances in the region. Remittances from the United States -- where unemployment among Latin Americans is higher than among the general population -- are expected to decline by 11 percent to about US$42.3 billion this year. Remittances from Europe, another major destination for Latin American migrants, are expected to drop by 14% to about US$9 billion. Remittances from other parts of the world will slide about 4.5% to US$10.4 billion. The survey of migrants in the United States found that they are sending money with less frequency and in smaller amounts. In a similar poll conducted last year, migrants averaged about 15 transfers annually. This year the average is expected to drop to 12 times. The average amount sent per transfer is slipping from US$241 to US$230. However, the survey pointed out that even people who have lost their jobs are still sending money home, usually by dipping into savings. Migrants are employing different strategies to keep making remittances, even during the downturn. About 45% of respondents said they were now reducing the amounts they send home. More than one-third of them have reduced their day-to-day expenses and about one-fifth have taken on a second job. Asked if they planned to return to their countries of origin, 34% said they expected to do so in the near future. In last year’s survey only 20% of respondents expressed such intentions. However, the most-cited motive was to rejoin their families rather than a lack of employment. One troubling trend revealed by the report is that the costs of money transfers, which in recent years had fallen dramatically due to increased competition and the adoption of new technologies, have ceased to decline and in some cases are starting to increase. “It is critical to continue with initiatives that help ensure that the cost of making remittances remains low so that migrants and their families can keep more of their hard-earned money,” said MIF General Manager Julie T. Katzman. The MIF started analyzing remittances nearly a decade ago to gauge their volume and impact in Latin America and the Caribbean. Its work encouraged new service providers to enter the market, including microfinance institutions, credit unions and commercial banks that can provide additional financial services to migrants and their families. *********** 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, Marites O. Claro, Joy A. Agravente, 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 * * *