/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090819.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, August 19, 2009, Vol. 10, No. 163 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Former Group Adviser Warned SEC on Bad Cds STANFORD INT'L: Investors Blames U.S. Authorities A R G E N T I N A AMERICAN STAR: Requests for Bankruptcy FARMACEUTICOS: Proofs of Claim Verification Due on September 21 SERUCIAL SA: Proofs of Claim Verification Deadline is September 22 VIDIMEN SA: Trustee Verifying Proofs of Claim Until August 28 B A R B A D O S CABLE & WIRELESS: LIME Barbados to Meet With Worker's Union B E R M U D A ALL FOODS: Court to Hear Petition on August 28 ALL MAINTENANCE: Court to Hear Petition on August 28 AYLMER FUND: Creditors' Proofs of Debt Due on August 28 AYLMER FUND: Members' Final General Meeting Set for September 16 BERMUDA ROOFING: Court to Hear Petition on August 28 COMPASS HOLDINGS: Court to Hear Petition on August 28 B R A Z I L BANCO BRADESCO: Raised to “Buy” at UBS on Brazil Loan Growth BRASIL FOODS: Posts BRL129 Million Net Profit in Second Quarter BRASIL FOODS SA: Shareholders OK Merger of BRF and Sadia Shares BANCO DO BRASIL: Is “Studying” Role in Insurance Business BANCO NACIONAL: BNDESPar Plans to Buy BRL55.9MM Magnesita Shares BANCO NACIONAL: Plans to Rescue Lupatech SA's Converts CAMARGO CORREA: Mulls Selling 4.4% Stake in Itausa COSAN SA: India Drought to Boost Sugar Prices GOL LINHAS: Stock Raised to “Hold” at Banco Santander LUPATECH SA: Sells BRL328 Million 2018 Convertible Debentures * BRAZIL: Economists Expect Faster GDP Growth in 2010 C A Y M A N I S L A N D S BATCHKOVA VENTURES: Shareholders Receive Wind-Up Report CONSISTENT RETURN: Creditors' Proofs of Debt Due on August 20 COREVEST NEW: Creditors' Proofs of Debt Due on August 25 CZ 97: Shareholder to Hear Wind-Up Report on August 21 DMS FIXED: Creditors' Proofs of Debt Due on August 25 DMS FIXED: Creditors' Proofs of Debt Due on August 25 FORSYTH ALTERNATIVE: Creditors' Proofs of Debt Due on August 25 FORSYTH DIVERSITY: Creditors' Proofs of Debt Due on August 25 HOUSTON ENERGY: Shareholders Receive Wind-Up Report IZANAGI JAPAN: Shareholder to Hear Wind-Up Report on August 20 J.P. MORGAN: Creditors' Proofs of Debt Due on August 31 SEARCH PACIFIC: Creditors' Proofs of Debt Due on August 31 STANFIELD ARBITRAGE: Creditors' Proofs of Debt Due on August 25 STANFIELD QUATTRO: Creditors' Proofs of Debt Due on August 25 SUMPU FUNDING: Commences Liquidation Proceedings J A M A I C A AIR JAMAICA: Cabinet Has Yet to Approve Airline Sale CABLE & WIRELESS: LIME Posts J$504MM Losses in Qtr. Ended June * JAMAICA: Planning Institute Says Local Economy Still Declining M E X I C O CEMEX SAB: Fitch Affirms Issuer Default Rating at 'B' GRUPO MEXICO: Hikes Offer to US$2.2 Billion for Asarco LLC P E R U INT'L CONSOLIDATED MINERALS: Puts Main Unit Into Administration T R I N I D A D & T O B A G O CL FINANCIAL: CLICO Closes 3 Offices; Workers Resign & Demand Pay V E N E Z U E L A * VENEZUELA: No Plan to Stiffen Oil Deals with Caribbean, LatAm - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Former Group Adviser Warned SEC on Bad Cds ---------------------------------------------------------- Former financial adviser with Robert Allen Stanford's financial company, Leyla Wydler, told a U.S. Senate panel that she warned the Securities and Exchange Commission about the firm's hawking of shady investments five years before it closed the firm and accused the Mr. Stanford of running a Ponzi scheme, Dough Simpson of the Associated Press reports. According to the report, Ms. Wydler, hired by Stanford Group in 2000, said she was fired two years later -- after resisting managers' pressure to sell certificates of deposit offered by Stanford International Bank Limited. The report relates Ms. Wydler said she called the SEC and reported her suspicions about the CDs in 2004, after losing an arbitration case against the company. The report notes that Ms. Wydler said her boss gave her no reason for her dismissal, but she had been pressured to sell the CDs to her customers instead of getting them into stocks, bonds and other investments. "I firmly believe I was terminated for my reluctance to sell CDs," the report quoted Ms. Wydler as saying. U.S. Sen. David Vitter, R-La., called the field hearing to get testimony from Ms. Wydler, regulators and Louisiana investors, The AP says. The report relates that Mr. Vitter, the only committee member present, said he hoped for a full committee meeting in Washington this fall. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). STANFORD INT'L: Investors Blames U.S. Authorities ------------------------------------------------- Investors of Robert Allen Stanford's companies flocked to a congressional hearing, claiming U.S. authorities should also share blame in the multi-billion dollar Ponzi scheme, CaribbeanWorld News reports. According to the report, at the U.S. Senate Banking Committee field hearing in New Orleans by U.S. Sen. David Vitter, R-La., some investors who say they lost their life savings to Mr. Stanford insisted that U.S. federal regulators were warned as early as 2003 but did nothing. “These agencies along with Mr. Stanford have robbed me of my American dream,” the report quoted Craig Nelson, a 55-year-old resident of Magnolia Springs, Alabama, as saying. “I feel the U.S. government is responsible for my loss,” Mr. Nelson added. The report relates that Troy Lillie, a retired Exxon Mobil refinery worker from Maurice, Louisiana, said that the U.S. System has absolutely failed them and now they are left destitute, defrauded and dependent on others. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). ================= A R G E N T I N A ================= AMERICAN STAR: Requests for Bankruptcy -------------------------------------- American Star SA asked for its own bankruptcy. The company stopped making payments on June 16, 2009. FARMACEUTICOS: Proofs of Claim Verification Due on September 21 --------------------------------------------------------------- Estudio Bejar, the court-appointed trustee for Farmaceuticos Argentinos SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 21, 2009. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 12, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Estudio Bejar Patin y Asociados Suipacha 211 Argentina SERUCIAL SA: Proofs of Claim Verification Deadline is September 22 ------------------------------------------------------------------ The court-appointed trustee for Serucial SA's reorganization proceedings, will be verifying creditors' proofs of claim until September 22, 2009. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 45, 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 June 28, 2010. VIDIMEN SA: Trustee Verifying Proofs of Claim Until August 28 ------------------------------------------------------------- The court-appointed trustee for Vidimen S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until August 28, 2009. The trustee will present the validated claims in court as individual reports on October 30, 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 March 2, 2010. Creditors will vote to ratify the completed settlement plan during the assembly on June 3, 2010. =============== B A R B A D O S =============== CABLE & WIRELESS: LIME Barbados to Meet With Worker's Union ----------------------------------------------------------- Lime Barbados, formerly Cable & Wireless Barbados, will be having another round of discussions with the Barbados Workers Union team led by General Secretary Sir Roy in the office of the Minister of Labor, CbC.bb News reports. The report relates that the meeting, under the chairmanship of Senator Arni Walters, is an attempt to broker an arrangement that could avoid further lay offs at the telecoms company. According to the report, LIME said some 140 workers are to be laid off as the company seeks to right-size its operations. The workers representative, however, is seeking an alternative to the dismissals against the background of a BB$90 million declared last year. The report says that the first round of discussions started August 14. Cable & Wireless Barbados, established in April 2002, is an amalgamation of four Cable & Wireless companies operating in Barbados. In 2008 it was rebranded as Lime (Landline, Internet, Mobile, Entertainment). It provides voice, data and IP services to business and residential customers, including products from basic telephone service and internet access, to managed data network solutions, ISDN and cellular services via an enhanced network. About Cable & Wireless Headquartered in London, England, Cable & Wireless plc -- http://www.cw.com/-- is an international telecommunications company. The Company offers mobile, broadband and domestic and international fixed line services to homes, small and medium-sized enterprises, corporate customers and governments. It operates in 39 countries through four major operations in the Caribbean, Panama, Macau and Monaco & Islands. It operates through two businesses: International and Europe, Asia & US. Its International business operates full service telecommunications companies through four major operations in the Caribbean, Panama, Macau and Monaco and Islands. Its Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecom services across the United Kingdom, continental Europe, Asia and the United States. Its subsidiaries include Cable & Wireless UK, Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable & Wireless (Barbados) Ltd and Monaco Telecom SAM. * * * According to Bloomberg data, Cable & Wireless plc continues to carry Moody's "Ba3"long-term corporate family rating, "B1"senior unsecured debt rating and "Ba3"probability of default rating with a stable outlook. The company continues to Standard & Poor's "BB-"long-term foreign and local issuer credit ratings and "B" short-term foreign and local issuer credit ratings. ============= B E R M U D A ============= ALL FOODS: Court to Hear Petition on August 28 ---------------------------------------------- A petition on seeking an alternative remedy on the winding up of All Foods Ltd will be heard before the Supreme Court of Bermuda on August 28, 2009, 9:30 a.m. Kyril Burrows filed the petition on August 3, 2009. ALL MAINTENANCE: Court to Hear Petition on August 28 ---------------------------------------------------- A petition on seeking an alternative remedy on the winding up of All Maintenance Ltd will be heard before the Supreme Court of Bermuda on August 28, 2009, 9:30 a.m. Kyril Burrows filed the petition on August 3, 2009. AYLMER FUND: Creditors' Proofs of Debt Due on August 28 ------------------------------------------------------- The creditors of Aylmer Fund Limited are required to file their proofs of debt by August 28, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 13, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda AYLMER FUND: Members' Final General Meeting Set for September 16 ---------------------------------------------------------------- The members of Aylmer Fund Limited will hold their final general meeting on September 16, 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 13, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda BERMUDA ROOFING: Court to Hear Petition on August 28 ---------------------------------------------------- A petition on seeking an alternative remedy on the winding up of Bermuda Roofing and Tanks Ltd will be heard before the Supreme Court of Bermuda on August 28, 2009, 9:30 a.m. Kyril Burrows filed the petition on August 3, 2009. COMPASS HOLDINGS: Court to Hear Petition on August 28 ----------------------------------------------------- A petition on seeking an alternative remedy on the winding up of Compass Holdings Ltd will be heard before the Supreme Court of Bermuda on August 28, 2009, 9:30 a.m. Kyril Burrows filed the petition on August 3, 2009. =========== B R A Z I L =========== BANCO BRADESCO: Raised to “Buy” at UBS on Brazil Loan Growth ------------------------------------------------------------ Banco Bradesco S.A. was raised to “buy” from “neutral” yesterday, August 18, 2009, at UBS AG, which said the country’s lenders should benefit from a cycle of credit growth, Paulo Winterstein at Bloomberg News reports. The bank will likely rally to BRL39 in 12 months, analyst Eduardo Nishio wrote in a note obtained by the news agency. According to the report, Mr. Nishio said that Brazilian banks’ loans may expand at a “sustainable pace” of 15% to 20% a year. “Overall, we are more positive on the macroeconomic outlook for the 2H09 and in 2010,” the report quoted Mr. Nishio as saying. “With delinquency ratios expected to peak in the current quarter, we believe the shift now should be towards loan growth,” Mr. Nishio added. Bloomberg News notes that Brazil's central bank said the country's personal default rates were stable in June at 8.6%, after climbing to a record in May, while corporate defaults increased to 3.4% from 3.2% in May. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As of July 2, 2009, the company continues to carry Moody's Ba2 foreign LT bank Deposits rating. BRASIL FOODS: Posts BRL129 Million Net Profit in Second Quarter --------------------------------------------------------------- BRF-Brasil Foods SA reported a second-quarter net profit of BRL129 million (US$69.7 million) from BRL76 million in the same period a year earlier due to the impact of the exchange rate variation on its dollar-denominated debt, Rogerio Jelmayer at Dow Jones Newswires reports. "In the light of the appreciation of the Brazilian real against the U.S. dollar, net financial income reported a quarterly total of BRL167.6 million versus BRL32.0 million in the year ago period," the company said in a statement obtained by the news agency. The report relates the company ended the period with a total debt of BRL4.7 billion, up from BRL3.5 billion seen in the year-earlier period. According to the report, the company reported second-quarter net revenue of BRL2.7 billion, down from BRL2.83 billion in the second quarter of 2008. The report relates Earnings before interest, taxes, depreciation and amortization (EBITDA) dropped 43% in the period to BRL133 million; while EBITDA margin ended the second quarter at 4.9%, down from 8.2% a year earlier. About BRF-Brasil Foods BRF-Brasil Foods SA is a food processor in Latin America. The company raises chickens to produce poultry products. Brasil Foods also processes frozen pastas, soybeans, and their derivatives, and distributes frozen vegetables. The company's core business is chilled and frozen food. The company has offices in the Middle East, Asia, and Europe. * * * As of August 18, 2009, the company continues to carry Moody's Ba1 LT Corp Family Rating. The company also continues to carry Standard and Poors BB+ LT Issuer Credit ratings. BRASIL FOODS SA: Shareholders OK Merger of BRF and Sadia Shares --------------------------------------------------------------- The management of BRF-Brasil Foods SA --- formerly named Perdigao S.A. and Sadia S.A. and, together with BRF -- said the companies' shareholders approved the merger of Sadia's common and preferred shares by BRF, except for the shares held indirectly by BRF, resulting in an increase of BRF's share capital in the amount of R$2,335,484,255.61, through the issuance of 59,390,963 common shares, with no par value. In exchange for each common and preferred merged share, 0.132998 registered common shares, with no par value, issued by BRF, will be allocated to each SADIA shareholder, as set forth in the Material Fact Notices published on May 19, 2009 and August 3, 2009. The share capital of BRF, after the Merger of Shares, will be R$11,863,417,953.36, divided into 418,986,623 common shares, with no par value. As a result of the shareholder approval obtained at the meeting, BRF will directly and indirectly hold all the shares issued by SADIA, and this constitutes the last corporate phase of the business combination between BRF and SADIA, as contemplated in the Association Agreement referred to in the Material Fact Notice published on May 19, 2009, pending the decision of the Brazilian antitrust authorities. Until September 18, 2009 (inclusive), SADIA's shareholders, at their own discretion, may adjust their positions through sales and purchases, by means of private transactions or securities brokerage companies authorized to deal with the BM&FBovespa S.A. - Bolsa de Valores, Mercadorias e Futuros, in order to be owners of whole numbers of BRF's shares after such period of time. BRF shares that are not wholly allocated to each of SADIA's shareholders will be placed on the market at the BM&FBovespa S.A.- Bolsa de Valores, Mercadorias e Futuros, through an auction, proportionally dividing the proceeds among the owners of fractions of shares. SADIA's shareholders who hold positions resulting in fractions of shares and that have already indicated a bank account for the deposit of dividends shall have the proceeds from the sale of such fractions immediately credited to the same bank accounts within 30 business days from the receipt of funds arising from the disposal of shares corresponding to these fractions on the BM&F Bovespa S.A.- Bolsa de Valores, Mercadorias e Futuros. For those that have not indicated a bank account or have an outdated record, the amount corresponding to the sale shall remain available at the Depositary Institution, Banco Bradesco S.A., as of the same date, which will perform the payment upon presentation of the relevant identification or ownership documentation, as the case may be. In compliance with the provisions of Section 1 of Article 137 of Law No. 6.404/76, SADIA's dissenting common shareholders of the resolution approving the Merger of Shares may exercise their withdrawal rights with respect to the SADIA common shares they held on May 19, 2009, before the opening of trading, which was the date of publication of the first Material Fact Notice related to the Merger of Shares. SADIA's common shareholders who have acquired common shares from and including such date will not be entitled to exercise withdrawal rights, as provided for in Section 1 of Article 137 of Law No. 6.404/76. Under applicable law, the period for the exercise of withdrawal rights will be 30 days from the date the minutes of the general shareholders meeting of Sadia S.A. approving the Merger of Shares are published; this period will end on September 18, 2009. For any common shareholder who validly exercises his or her withdrawal rights, the payment amount, pursuant to Article 45, Section 1 of Law No. 6.404/76, will be an amount in reais corresponding to the equity value of the shares as of December 31, 2008, i.e., R$0.41 per common share issued by SADIA, provided the right such common shareholders have to demand a special balance sheet. Common shareholders whose shares issued by SADIA are deposited on the BM&FBovespa S.A. - Bolsa de Valores, Mercadorias e Futuros may exercise their withdrawal rights, if applicable, through their custody agents until September 17, 2009. Common shareholders whose shares are held directly in trust with Banco Bradesco S.A., a custodial financial institution of the registered shares issued by Sadia, may exercise their withdrawal rights until September 18, 2009 by presenting the relevant verifying documents and requesting to exercise their withdrawal rights, as provided for in the applicable law, at the Company's headquarters at Rua Senador Atilio Fontana, 86 - Concordia - SC, Brazil, or at the administrative office at Rua Fortunato Ferraz, 659, 2nd floor, 05093-301, Sao Paulo - SP, Brazil, from 9:00am to 5:00pm, Monday through Friday. Any trading of shares issued by SADIA on the stock exchanges will not be interrupted until September 21, 2009 (inclusive). Payments to common shareholders who validly exercise withdrawal rights must be made by BRF on September 23, 2009. On September 22, 2009, the shares issued by BRF to Sadia shareholders as a result of the Merger of Shares will start trading under ticker BOVESPA - PRGA3, BRF - Brasil Foods S.A. - Novo Mercado. The ADRs - American Depositary Receipts of BRF delivered to Sadia shareholders as a result of the Merger of Shares will start trading as of September 22, 2009 under ticker NYSE – PDA. About BRF-Brasil Foods BRF-Brasil Foods SA is a food processor in Latin America. The company raises chickens to produce poultry products. Brasil Foods also processes frozen pastas, soybeans, and their derivatives, and distributes frozen vegetables. The company's core business is chilled and frozen food. The company has offices in the Middle East, Asia, and Europe. * * * As of August 18, 2009, the company continues to carry Moody's Ba1 LT Corp Family Rating. The company also continues to carry Standard and Poors BB+ LT Issuer Credit ratings. BANCO DO BRASIL: Is “Studying” Role in Insurance Business --------------------------------------------------------- Banco do Brasil SA said it is studying a role in the insurance business and has yet to make a decision, Heloiza Canassa at Bloomberg News reports. The report relates that the bank was responding to newspaper reports saying it is discussing possible joint ventures with local and international insurers. According to the report, Brazilian insurer Sul America SA said that it regularly looks for ways of expanding existing partnerships its units have with Banco do Brasil, and no agreement has been reached. 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: BNDESPar Plans to Buy BRL55.9MM Magnesita Shares ---------------------------------------------------------------- Brazil's Magnesita Refratarios plans to raise BRL350 million by offering 44.9 million shares, LatinFrance reports. The report relates that existing shareholders will be able to purchase the stock in amounts proportional to their holdings starting today through September 16. According to the report, BNDESPar, the equity investor arm of Brazilian development bank BNDES and a Magnesita shareholder, plans to acquire a minimum of BRL55.9 million in new shares, and could buy up to BRL245 million if minority shareholders fail to exercise their full allotments. The report notes that Magnesita plans to offer shares at BRL7.80 per share, the average price for the last 90 days. 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 BANCO NACIONAL: Plans to Rescue Lupatech SA's Converts ------------------------------------------------------ Lupatech SA has sold to shareholders BRL328 million in 2018 convertible debentures, LatinFrance says. The report, citing an Lupatech IR official, relates that the company said it completed a sale of notes to 75 different investors, Banco Nacional de Desenvolvimento Economico e Social SA, which ended up consuming 90% of the issue. According to the report, the transaction launched in July extends Lupatech SA’s average tenor to 6.0 years from 1.5 and increase its proportion of BRL-denominated debt. The report notes BNDES also approved earlier this year BRL441 million in financing facilities for Lupatech. The report says that BNDES, which helped structure the transaction alongside Lupatech, had agreed to purchase 11.5% of the issue plus any remaining unsold convertibles. LatinFrance relates the notes will pay IPCA plus 6.5%, and can be exchanged for shares starting in year 3 using a conversion mechanism. The conversion price is equal to the market price, limited to a BRL17.50-BRL35.00 range, plus a diminishing premium equal to 100% of the price in the third year and 40% of the price in the eighth, LatinFrance notes. The report relates Lupatech can also call the bonds after 2 years. The report adds that proceeds will pay short-term debt and fund future acquisitions. 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. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service About Lupatech SA Headquartered in Brazil, Lupatech SA -- http://www.lupatech.com.br -- is a holding company engaged in three business segments: Energy Products, Flow Control and Metallurgy. In the Energy Products segment, the company provides such products as deepwater platform anchoring ropes, valves, tools for oil exploration and tube coating. In the Flow Control segment, it is involved in the production and sale of industrial valves for the petrochemical, pharmaceutical and construction industries, among others. In the Metallurgy segment, the Company is principally engaged in the production of parts for the automotive industry. Lupatech SA?s brand portfolio includes MNA, CSL Off Shore, Petroima, Esferomatic, Gasoil, K&S, Fiberware, Aspro, Gavea, Sinergas and Tecval, among others. During the year ended December 31, 2008, the Company incorporated Cordoaria Sao Leopoldo Offshore SA, Metalurgica Nova Americana Ltda and Metalurgica Ipe Ltda. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2009, Standard & Poor's Ratings Services said that it revised its outlook on Brazil-based industrial and oil and gas valve fabricator Lupatech S.A. to negative from stable. At the same time, S&P affirmed its ratings on the company, including the 'BB-' global scale and 'brA-' Brazilian national scale corporate credit ratings. CAMARGO CORREA: Mulls Selling 4.4% Stake in Itausa -------------------------------------------------- Camargo Correa is evaluating the possible sale of its stake in banking company Itausa- Investimentos Itau SA, Rogerio Jelmayer at Dow Jones Newswires reports, citing local newspaper O Estado de S. Paulo. Itausa is the holding company that controls Brazil's largest private bank, Itau Unibanco Banco Multiplo S/A (ITUB). According to the report, citing the local newspaper, Camargo Correa is evaluating the sale of its 4.4% stake in Itausa, which is worth around US$1.5 billion. The report relates the company is also evaluating possible sales of its stakes in Alcoa Inc. and textile company Tavex. Dow Jones Newswires notes that the local newspaper said Camargo Correa has hired the Rothschild bank to study the potential operations. The report, citing O Estado, adds that the company is planning to raise money in order to invest in projects in the cement and construction industries, toll road operators, and energy. About Camargo Correa Camargo Correa SA is one of the largest private industrial conglomerates in Brazil. The company is a holding company with interests in cement, engineering and construction, textiles, footwear and sportswear manufacturing. It also owns non- controlling equity interests in the energy, transportation (highway concessions) and steel businesses. During the last 12 months through June 2007, Camargo Correa had net sales of BRL9.2 billion and EBITDA of BRL1.4 billion. * * * As of June 15, 2009, the company continues to carry Standard and Poor's BB Issuer Credit ratings. The company also continues to carry Fitch's BB LT Issuer Default Ratings. COSAN SA: India Drought to Boost Sugar Prices --------------------------------------------- Paulo Winterstein at Bloomberg News reports that speculation has emerged that a drought in India will boost prices for Cosan SA Industria e Comercio. According to the report, India’s farm ministry said that as many as 246 of its 626 districts have declared a drought or are in a drought-like situation because of scant monsoon rainfall this year. The report, citing the weather bureau, relates that the monsoon season, which accounts for about three-quarters of the nation’s annual rain, may be the driest in seven years. That would reduce sugar output in the country, the report notes. “Over the weekend we started getting news about India’s climate, which may cut output,” the report quoted Auro Rozenbaum, an analyst at Banco Bradesco SA in Sao Paulo, as saying. “The outlook is good for prices,” Mr. Rozenbaum added. About Cosan SA Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e Comercio -- http://www.cosan.com.br/en/ir/-- produces sugar and ethanol. The company cultivates harvests and processes sugarcane, the main raw material for sugar and ethanol manufacturing. With 17 manufacturing units and two port terminals in the city of Santos, Cosan says it is currently the largest individual group in the world in terms of sugarcane byproducts manufacturing. With capacity to grind more than 40 million tonnes of sugarcane, the group represents 12% of overall production in the mid-southern region of the country. * * * As reported in the Troubled Company Jul 27, 2009, Fitch Ratings has assigned 'BB-' local and foreign currency Issuer Default Ratings and a 'A-(bra)' National Scale Rating to Cosan S.A. Industria e Comercio and its subsidiary Cosan Combustiveis e Lubrificantes Ltda. Fitch has also assigned a 'BB-' rating to CCL's proposed US$300 million senior unsecured notes due 2014 issued through its wholly owned subsidiary, CCL Finance Ltd. The notes will be unconditionally and irrevocably guaranteed by CCL. The Rating Outlook for Cosan and CCL is Stable. GOL LINHAS: Stock Raised to “Hold” at Banco Santander ----------------------------------------------------- Heloiza Canassa at Bloomberg News reports that GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A.'s stock was raised to “hold” from “underperform” at Banco Santander SA. The upgrade is meant “to account for the airline’s improved operating performance, profitability, and balance sheet,” analysts Caio Pereira Dias and Carlos Eduardo Lucato wrote in a note obtained by the news agency. “Second-quarter results and July traffic indicate that Gol’s turnaround process is succeeding,” the analysts added. As reported in the Troubled Company Reporter-Latin America on August 12, 2009, the company posted a 2Q09 net income of R$353.7 million, with a net margin of 25.4%, versus a net loss of R$166.5 million in 2Q08 and net income of R$61.4 million in 1Q09. According to Bloomberg News, the carrier's domestic demand surged 29% in July from a year earlier, while total domestic air traffic in Brazil increased 25.7%. About GOL Linhas Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. -- http://www.voegol.com.br/-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As of May 19, 2009, the company continues to carry Moody's B1 long-term corporate family ratings. The company also continues to carry Fitch's B+ Issuer Credit Ratings and B Senior Unsecured Rating and Preferred Stock ratings. LUPATECH SA: Sells BRL328 Million 2018 Convertible Debentures ------------------------------------------------------------- Lupatech SA has sold to shareholders BRL328 million in 2018 convertible debentures, LatinFrance says. The report, citing an Lupatech IR official, relates that the company said it completed a sale of notes to 75 different investors, Banco Nacional de Desenvolvimento Economico e Social SA, which ended up consuming 90% of the issue. According to the report, the transaction launched in July extends Lupatech SA’s average tenor to 6.0 years from 1.5 and increase its proportion of BRL-denominated debt. The report notes BNDES also approved earlier this year BRL441 million in financing facilities for Lupatech. The report says that BNDES, which helped structure the transaction alongside Lupatech, had agreed to purchase 11.5% of the issue plus any remaining unsold convertibles. LatinFrance relates the notes will pay IPCA plus 6.5%, and can be exchanged for shares starting in year 3 using a conversion mechanism. The conversion price is equal to the market price, limited to a BRL17.50-BRL35.00 range, plus a diminishing premium equal to 100% of the price in the third year and 40% of the price in the eighth, LatinFrance notes. The report relates Lupatech can also call the bonds after 2 years. The report adds that proceeds will pay short-term debt and fund future acquisitions. 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. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service About Lupatech SA Headquartered in Brazil, Lupatech SA -- http://www.lupatech.com.br -- is a holding company engaged in three business segments: Energy Products, Flow Control and Metallurgy. In the Energy Products segment, the company provides such products as deepwater platform anchoring ropes, valves, tools for oil exploration and tube coating. In the Flow Control segment, it is involved in the production and sale of industrial valves for the petrochemical, pharmaceutical and construction industries, among others. In the Metallurgy segment, the Company is principally engaged in the production of parts for the automotive industry. Lupatech SA?s brand portfolio includes MNA, CSL Off Shore, Petroima, Esferomatic, Gasoil, K&S, Fiberware, Aspro, Gavea, Sinergas and Tecval, among others. During the year ended December 31, 2008, the Company incorporated Cordoaria Sao Leopoldo Offshore SA, Metalurgica Nova Americana Ltda and Metalurgica Ipe Ltda. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2009, Standard & Poor's Ratings Services said that it revised its outlook on Brazil-based industrial and oil and gas valve fabricator Lupatech S.A. to negative from stable. At the same time, S&P affirmed its ratings on the company, including the 'BB-' global scale and 'brA-' Brazilian national scale corporate credit ratings. * BRAZIL: Economists Expect Faster GDP Growth in 2010 ----------------------------------------------------- Brazil’s economy will expand faster than previously expected in 2010, as domestic demand pulls the country out of its first contraction in 17 years, Andre Soliani at Bloomberg News reports, citing a survey of economists. The report, citing the median forecast in an Aug. 14 central bank survey of about 100 analysts, relates Brazil's economy will grow 3.8% in 2010, after contracting 0.34% this year. According to the report, the central bank has slashed the benchmark interest rate to a record, while the government has cut taxes on cars and home appliances and stepped up public spending amid falling revenue to combat recession. The economic policies of President Luiz Inacio Lula da Silva are paving the way for a “domestic demand- driven recovery,” the Organization for Economic Cooperation and Development said in a July 14 report obtained by the news agency. Bloomberg News says the economy’s forecast contraction for 2009 would be Brazil’s first for a calendar year since 1992, when it shrank 0.47%. The country’s GDP expanded 4.67% the following year, the report notes. * * * The country continues to carry Moody's Rating Agency's "Ba1" local and foreign currency ratings. ========================== C A Y M A N I S L A N D S ========================== BATCHKOVA VENTURES: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Batchkova Ventures Limited met on August 10, 2009, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Scott Seaman c/o Gramercy Advisors LLC 20 Dayton Avenue Greenwich, CT 06830 CONSISTENT RETURN: Creditors' Proofs of Debt Due on August 20 ------------------------------------------------------------- The creditors of Consistent Return Ltd. are required to file their proofs of debt by August 20, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 8, 2009. The company's liquidators are: Geoffrey Varga Nicolas Matthews c/o Camele Burke Kinetic Partners (Cayman) Limited The Harbour Centre, 42 North Church Street P.O. Box 10387, Grand Cayman KY1-1004 Cayman Islands Telephone: (345) 623 9904 Facsimile: (345) 943 9900 COREVEST NEW: Creditors' Proofs of Debt Due on August 25 -------------------------------------------------------- The creditors of Corevest New Frontier Partners (Intl) Limited are required to file their proofs of debt by August 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 20, 2009. The company's liquidator is: Ogier Jonathan McLean c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 CZ 97: Shareholder to Hear Wind-Up Report on August 21 ------------------------------------------------------ The shareholders of CZ 97 A Limited will hear on August 21, 2009, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Ltd. c/o Philip Sutcliffe P.O. Box 847, George Town Grand Cayman KY1-1103 Telephone: (345) 949 0880 Facsimile: (345) 949 0881 DMS FIXED: Creditors' Proofs of Debt Due on August 25 ----------------------------------------------------- The creditors of DMS Fixed Income Micro RV Master Fund, Ltd. are required to file their proofs of debt by August 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 16, 2009. The company's liquidator is: Ogier Jonathan McLean c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 DMS FIXED: Creditors' Proofs of Debt Due on August 25 ----------------------------------------------------- The creditors of DMS Fixed Income Micro RV Fund, Ltd. are required to file their proofs of debt by August 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 16, 2009. The company's liquidator is: Ogier Jonathan McLean c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 FORSYTH ALTERNATIVE: Creditors' Proofs of Debt Due on August 25 --------------------------------------------------------------- The creditors of Forsyth Alternative Income Fund Limited are required to file their proofs of debt by August 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 17, 2009. The company's liquidator is: David Walker c/o Jodi Jones PO Box 258, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8694 Facsimile: (345) 945 4237 FORSYTH DIVERSITY: Creditors' Proofs of Debt Due on August 25 ------------------------------------------------------------- The creditors of Forsyth Diversity Fund Limited are required to file their proofs of debt by August 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 17, 2009. The company's liquidator is: David Walker c/o Jodi Jones PO Box 258, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8694 Facsimile: (345) 945 4237 HOUSTON ENERGY: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Houston Energy International Ltd. met on August 10, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stephen H. Pouns Pool Capital Partners LLC 600 Travis Street, Suite 3100 Houston, Texas 77002, USA IZANAGI JAPAN: Shareholder to Hear Wind-Up Report on August 20 -------------------------------------------------------------- The sole shareholder of Izanagi Japan Fund will hear on August 20, 2009, at 3:00 p.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Keith Blake c/o Krissa Jeffers Telephone: 345-914-4398 Facsimile: 345-949-7164 P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-949-4800 Facsimile: 345-949-7164 J.P. MORGAN: Creditors' Proofs of Debt Due on August 31 ------------------------------------------------------- The creditors of J.P. Morgan Tactical Trading Fund Ltd. are required to file their proofs of debt by August 31, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 7, 2009. The company's liquidator is: Rose Burke c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104, Cayman Islands SEARCH PACIFIC: Creditors' Proofs of Debt Due on August 31 ---------------------------------------------------------- The creditors of Search Pacific Limited are required to file their proofs of debt by August 31, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 8, 2009. The company's liquidator is: Wong, Mo Wah Gordon 5701, Cheung Kong Center, 57th Floor 2 Queen's Road Central, Hong Kong Telephone: +852 2525 1211 Facsimile: +852 2826 9418 STANFIELD ARBITRAGE: Creditors' Proofs of Debt Due on August 25 --------------------------------------------------------------- The creditors of Stanfield Arbitrage CDO, Ltd. are required to file their proofs of debt by August 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 1, 2009. The company's liquidator is: Ogier Jonathan McLean c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 STANFIELD QUATTRO: Creditors' Proofs of Debt Due on August 25 ------------------------------------------------------------- The creditors of Stanfield Quattro CLO, Ltd. are required to file their proofs of debt by August 25, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 14, 2009. The company's liquidator is: Ogier Jonathan McLean c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Facsimile: (345) 949 1986 SUMPU FUNDING: Commences Liquidation Proceedings ------------------------------------------------ At an extraordinary general meeting held on June 17, 2009, the members of Sumpu Funding Corporation resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by August 7, 2009, will be included in the company's dividend distribution. The company's liquidators are: Victor Murray Jess Shakespeare c/o Maples Finance Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ============= J A M A I C A ============= AIR JAMAICA: Cabinet Has Yet to Approve Airline Sale ---------------------------------------------------- The Jamaican Cabinet has been deliberating on recommendations for the divestment of Air Jamaica Limited but no decision has been made to hand over the entity to new owners, RadioJamaica reports, citing an unnamed government insider. The report relates that in June, Prime Minister Bruce Golding said negotiations led by the Air Jamaica privatization team were well advanced and a decision would be made soon. According to the report, the divestment team has reportedly selected a successful bidder from two international entities; Caribbean Airlines and low budget carrier Spirit Airlines. The report notes that Air Jamaica workers continue to await word on the fate of their jobs with the impending sale of the airline. However, the report relates Bustamante Industrial Trade Union (BITU) said the workers are not in favour of positions being made redundant, rather the employees want the airline to maintain its existing operations and work force. "It is not that Air Jamaica workers are looking to be made redundant what we are looking for is to have a settlement of the whole divestment. They understand the position the government has however they want to ensure that the airline settles and continues to operate and their jobs are protected," the report quoted Kavon Gayle, president-General of the BITU, as saying. 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. 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). CABLE & WIRELESS: LIME Posts J$504MM Losses in Qtr. Ended June -------------------------------------------------------------- Cable & Wireless Jamaica Limited's Board of Directors released the unaudited consolidated results of the Company, Jamaica Digiport International, and other subsidiaries, for the quarter ended June 30, 2009. Revenue for the quarter declined 5% from J$5.704 billion in 2008 to J$5.395 billion in 2009. Increased ADSL revenue and non- recurring revenues associated with the Tower Share Agreement with Oceanic Digital were offset by reductions in fixed and mobile revenues resulting from the impact of the recession, the Company's focus on gross margin rather than revenue and increased competition. The decline in international revenue was driven by reduced termination rates combined with a decline in traffic commencing in December 2008 when a competitor unilaterally reduced CWJ's international circuits resulting in a continued significant reduction of incoming international mobile minutes to CWJ. Gross Margin overall declined 2% to J$3.679 billion compared with J$3.762 billion for the same period last year. Recurring gross margins as a percentage of revenue remained flat year-on-year at 66%. This result reflected improvement in Fixed Line margin percentages as lower margin interconnect revenues and low margin price plans were eliminated, offsetting reductions in Mobile margin percentages which are also under competitive and economic pressure. Total Operating Expenses (excluding depreciation & amortization) increased by 10% over the quarter ended June 2008. The Company successfully managed to reduce its local currency based costs including employee expenses, offset by an increase in foreign currency based expenses and as a consequence of the 24% devaluation of the Jamaican dollar against the United States dollar during the year. Operating Losses of J$165 million for the quarter compares with Operating Profit of J$382 million for the quarter ended June 2008 mainly as a result of the increase recorded in Operating Expenses and a further J$198 million for restructuring costs related to the ongoing transformation process. Over the past year the company increased its borrowings in order to fund network development and expansion. As a consequence, net finance costs have increased by 42% over June 2008 due primarily to an increase of J$211 million in interest expenses resulting from the increased borrowings, and to a change in interest rates which are currently charged at the Bank of Jamaica 182 Day Weighted Average Treasury Bill Yield. Net loss attributable to stockholders of J$504 million was greater than the June 2008 quarter loss (J$27 million) resulting in a loss per stock unit of 2.99c compared to 0.16c. Outlook The transformation process has generated significant underlying savings which have ameliorated the impact of the global economic recession and the tough competitive environment. These underlying savings, it is expected, will serve the company well as the Company exits the current recession. The Company will continue to work hard to improve performance and are focused on delivering world class customer experience, better value to its customers and increased value to its stockholders in the future. About Cable & Wireless Headquartered in London, England, Cable & Wireless plc -- http://www.cw.com/-- is an international telecommunications company. The Company offers mobile, broadband and domestic and international fixed line services to homes, small and medium-sized enterprises, corporate customers and governments. It operates in 39 countries through four major operations in the Caribbean, Panama, Macau and Monaco & Islands. It operates through two businesses: International and Europe, Asia & US. Its International business operates full service telecommunications companies through four major operations in the Caribbean, Panama, Macau and Monaco and Islands. Its Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecom services across the United Kingdom, continental Europe, Asia and the United States. Its subsidiaries include Cable & Wireless UK, Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable & Wireless (Barbados) Ltd and Monaco Telecom SAM. * * * According to Bloomberg data, Cable & Wireless plc continues to carry Moody's "Ba3"long-term corporate family rating, "B1"senior unsecured debt rating and "Ba3"probability of default rating with a stable outlook. The company continues to Standard & Poor's "BB-"long-term foreign and local issuer credit ratings and "B"short-term foreign and local issuer credit ratings. * JAMAICA: Planning Institute Says Local Economy Still Declining ---------------------------------------------------------------- The prognosis for Jamaica's economic recovery has not improved much despite signs of renewal in the global economy, RadioJamaica reports, citing Planning Institute of Jamaica. The report relates PIOJ Executive Director Dr. Wesley Hughes revealed that the country's economy continued to decline for the April to June quarter. According to the report, Mr. Hughes said for the three months ended June 30, the manufacturing, construction, wholesale and retail sectors all recorded downturns, but perhaps most glaring was the 62.5% drop in the mining and quarrying sector highlighted by lower production levels for both the alumina and crude bauxite. However, the report relates that Mr. Hughes said the agricultural, forestry and fisheries sector record a 9.2% increase. RadioJamaica notes that the country's Gross Domestic Product declined by 3.99% relative to the same period last year. Mr. Hughes, the report notes, said that the outlook for the July to September quarter is not rosy. The report relates Mr. Hughes said that the country will continue to be challenged by weakened external demand which will impact exports as well as the continued slowdown in the construction sector. * * * According to Moody's Web site, the country continues to hold a B1 foreign currency rating and a Ba2 local currency rating. =========== M E X I C O =========== CEMEX SAB: Fitch Affirms Issuer Default Rating at 'B' ----------------------------------------------------- Fitch Ratings has affirmed these ratings of Cemex, S.A.B. de C.V. and related entities: Cemex -- Foreign currency Issuer Default Rating at 'B'; -- Local currency IDR at 'B'; -- Long-term national scale rating at 'BB-(mex)'; -- MXN5 billion Certificados Bursatiles program at 'BB- (mex)'; -- MXN30 billion Programa Dual Revolvente de Certificados Bursatiles program at 'BB-(mex)'; -- Senior unsecured debt obligations at 'B+/RR3'; -- Unsecured debt issued through the Certificados Bursatiles program at 'BB-(mex)'; -- Short-term national scale rating at 'B (mex)'; -- MXN2.5 billion short-term portion of Programa Dual Revolvente de Certificados Bursatiles program at 'B (mex)'. Cemex Espana S.A. (Cemex Espana) -- IDR at 'B'; -- Senior unsecured debt obligations at 'B+/RR3'. Rinker Materials Corporation -- US$150 million senior unsecured notes due 2025 at 'B+/RR3'. Fitch has removed all ratings of Cemex and its subsidiaries from Rating Watch Evolving and has assigned a Stable Rating Outlook. The rating affirmations and Outlook revision reflect the successful refinancing of approximately US$15 billion of bank and private placement debt. Positively, the structure of Cemex's new amortization schedule minimizes the risk of a near-term default by Cemex and should allow the company to further pursue its plan to strengthen its balance sheet and de-leverage the company over the next few years by using free cash flow, an equity issuance as well as selling additional asset to pay down debt. The ratings remain at the 'B' level due to the very high leverage that remains at Cemex. For the last 12 months (LTM) ended June 30, 2009, the company generated US$3.8 billion of EBITDAR. This figure compares with approximately US$23.5 billion of lease adjusted debt, giving the company an adjusted leverage ratio of 6.1 times (X). Weakness in three of the company's key markets -- the U.S., Spain, and U.K -- will continue to hurt the company's results during 2009, leading Fitch to project an EBITDAR of US$3.4 billion for the year. Cemex continues to pursue the sale of non-strategic assets. On June 15, 2009, the company reached an agreement to sell its Australian assets to Holcim for AUD2.02 billion (US$1.7 billion). The company is expected to receive the cash for this transaction before the end of 2009. This transaction will be only mildly deleveraging for Cemex as these operations generated AUD313 million (US$263 million) of EBITDA during 2008. The terms of Cemex's agreement with creditors should result in an equity issuance by the company within the next 12 months, with proceeds being used to repay bank debt. A combination of lower debt levels and a stabilization of the company's key markets could lead to an eventual ratings upgrade. GRUPO MEXICO: Hikes Offer to US$2.2 Billion for Asarco LLC ---------------------------------------------------------- Grupo Mexico SA de C.V. has increased its bid for U.S. copper smelter Asarco LLC to US$2.2 billion plus a US$280 million note during proceedings in a Texas courtroom, adding about another US$500 million to its bet against Indian metals giant Vedanta Resources PLC, Joel Millman and David Mclaughlin at Bloomberg News report. The report relates that this is Grupo Mexico's latest offer a long-running battle for the U.S. company and may put Asarco LLC back under the control of the Mexican billionaire German Larrea who forced it into bankruptcy proceeding. Steven Church at Bloomberg reported that Grupo Mexico SAB told a Bankruptcy Court in Texas that it has a definitive term sheet with five banks for a US$1.5 billion in financing to acquire ASARCO LLC. Grupo Mexico said it is ready to pay a US$22.5 million commitment fee to the unnamed banks if its proposed Chapter 11 Plan for ASARCO is selected. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services and investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When ASARCO LLC filed for protection from its creditors, it listed US$600 million in total assets and US$1 billion in total debts. According to the report, Grupo Mexico and India's Sterlite Industries Ltd., a unit of Vedanta, dueled throughout last week, raising their competing offers that each said it was committed to pay to settle creditors' demands. The report relates U.S. Judge Richard Schmidt is considering which bidder's reorganization plan best serves creditors in his federal bankruptcy court in Corpus Christi, Texas. Dow Jones Newswires notes that unions picketed Judge Schmidt's courtroom expressing their opposition to returning Asarco to Grupo Mexico. The report relates the union alleged that behind Grupo Mexico's acquisition plan, is an effort by Mr. Larrea to skirt payment of environmental clean-up costs in dozens of U.S. Locations. The report recalls that Mr. Larrea told a U.S. court last year his company intended to meet its environmental clean-up obligations, and hoped Asarco LLC would emerge from bankruptcy after negotiating settlements on such claims under court supervision. The report relates the court did find Grupo Mexico had defrauded creditors and ordered Mr. Larrea's company to pay a judgment now worth an estimated US$8 billion in damages to Asarco. Dow Jones Newswires points out that neither Sterlite nor its parent, Vedanta, had indicated whether it would try to match Grupo Mexico's latest offer. About Grupo Mexico Grupo Mexico SA de C.V. -- http://www.grupomexico.com/-- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * As of August 14, 2009, Grupo Mexico continues to carry Fitch Ratings' BB+ Issuer Default ratings. ======= P E R U ======= INT'L CONSOLIDATED MINERALS: Puts Main Unit Into Administration --------------------------------------------------------------- International Consolidated Minerals Inc said it would place its main unit, International Consolidated Minerals Limited, into administration as it couldn't raise funding or restructure its debt, Shivani Singh at Reuters reports. The report relates that the company had in March suspended mining operations at Pachapacqui in Peru to conserve cash. According to the report, in June, the company had said it had a "severe shortage of working capital" and was pursuing options for long-term financing to fund its operations and growth. According to a company press statement, International Consolidated Minerals Inc. disclosed that negotiations to secure a restructuring of the company's existing indebtedness and raise new funding have to date been unsuccessful. The company said its Board requested a temporary suspension, with immediate effect, of trading in its shares on AIM and Lima, pending clarification of the Company's financial position and its immediate requirement for further short and medium term funding to enable it to continue operating. About Int'l Consolidated Minerals International Consolidated Minerals Inc. -- http://www.icmi-inc.com/-- was formed to acquire and pursue the development and production of mineral assets with a focus in Latin America and, initially, in Peru. ICM owns 100% of and manages the Pachapaqui property, which hosts a past-producing base metals (zinc, lead and copper) and precious metals (silver and gold) mine located in the political department of Ancash in Peru, 240 kilometers north of the capital, Lima. The property consists of 33 Peruvian Mining and Beneficiation Concessions within a surface area of approximately 2,170.7 hectares, with currently nine years (at 360,000 tonnes per year mill feed (tpy)) of JORC-standard reserves and resources (totaling 171,000,000 equivalent silver ounces) within the Central Mineral Belt of the Peruvian Andes, and exceptional exploration potential for 70,000,000 tonnes of reserves which could extend the mine life by decades. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: CLICO Closes 3 Offices; Workers Resign & Demand Pay ----------------------------------------------------------------- Majority of the workers at three Colonial Life Insurance Company offices that were closed last week -- Valpark Shopping Plaza in Valsayn, Herbert Street in St Clair and at the corner of Lucknow and Western Main Road in St James -- resigned from the company, Trinidad and Tobago Newsday reports. The report relates the workers said that all they want from Clico, a unit of CL Financial Limited, is for the company to pay what they owed to them. According to the report, about 70 workers of the 100 employees of the three branches resigned. The report notes that the affected workers were supposed to meet with Clico Managing Director Claude Musaib Ali at the company’s head office on August 17, but the workers who resigned decided to boycott the meeting because they felt nothing useful would come out of it. Some of the former workers told Newsday in an interview that they have not been earning any income for the last six months since they are not selling any new products and usually make their money on commissions. The report relates that a foremer worker said some of them went three times to Clico’s head office to receive their cheques but were told to come back each time. Meanwhile, the report points out that Clico officials reiterated this was all part of the company’s restructuring exercise. 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. ================= V E N E Z U E L A ================= * VENEZUELA: No Plan to Stiffen Oil Deals with Caribbean, LatAm --------------------------------------------------------------- Venezuela said that no plans are being considered to require more money up front from poor Caribbean and Central American nations buying oil on preferential terms under its Petrocaribe program, The Associated Press reports. The report relates that the secretariat of the Venezuelan oil pact said any changes made to the deal's terms would be "to the benefit of member countries." According to the report, Petroleos de Venezuela SA released the statement days after Jamaican Prime Minister Bruce Golding said he hoped Venezuela would scale back a proposal to require more money up front. The report relates that Petrocaribe secretariat said officials never considered changing "the terms of the time of payment" or increasing "the percentage of the bill that is paid in cash." The AP recalls that Venezuela and Caribbean nations launched Petrocaribe in June 2005 as global oil prices skyrocketed and smaller countries were struggling to buy enough fuel to keep their economies afloat. The report relates the Petrocaribe pact requires members to pay 60% of the oil's cost and finance the rest at 1% interest over 25 years. The percentage changes as oil prices vary, meaning member nations would make just a 50% downpayment if oil prices rebounded to US$80 a barrel, the report points out. The report adds the Petrocaribe secretariat said leaders of member countries analyzed the accord at their summit in June seeking options for "maximizing their benefits." * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, 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 * * *