/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/091104.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, November 4, 2009, Vol. 10, No. 218 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: U.S. Appeal Panel Weighs "Clawback" Claims * ANTIGUA & BARBUDA: To Strip Robert Stanford of Knighthood A R G E N T I N A AR ARGENTINA: Creditors' Proofs of Debt Due on November 27 CATERPILLAR FINANCIAL: Moody's Assigns 'Ba1' Issuer Ratings PICASSO CARLOS: Creditors' Proofs of Debt Due on December 16 VIPAGA SA: Creditors' Proofs of Debt Due on February 15 * ARGENTINA: Drought Affects 90% of Territory B R A Z I L ANHANGUERA EDUCACIONAL: Regulator OKs BRL200M Debenture Issue BANCO BRADESCO: To Release Third Quarter Results Tomorrow BRASKEM SA: Posts US$2.2 Billion Net Revenue in Third Quarter CAIXA ECONOMICA: To Launch Debt Fund W/ Credit Suisse & Santander * BRAZIL: Industrial Output Fell 7.8% in September C A Y M A N I S L A N D S CMAT 10393: Creditors' Proofs of Debt Due on November 12 DANAE GOLD: Commences Liquidation Proceedings DANAE GOLD: Commences Liquidation Proceedings FRONTIER IX: Creditors' Proofs of Debt Due on November 11 HADRIAN FUND: Members Receive Wind-Up Report HALCYON LOAN: Creditors' Proofs of Debt Due on November 11 JLF OFFSHORE: Creditors' Proofs of Debt Due on November 11 MANTIS REEF: Creditors' Proofs of Debt Due on November 11 MANTIS REEF: Creditors' Proofs of Debt Due on November 11 MAPLE STONE: Creditors' Proofs of Debt Due on November 11 MAPLE STONE: Creditors' Proofs of Debt Due on November 11 MOMENTUM CDO: S&P Downgrades Rating on 2006-19 Notes to 'CC' NORTH COAST: Commences Wind-Up Proceedings PENDVEST FUND: Creditors' Proofs of Debt Due on November 11 QALYPSO INVESTMENTS: Creditors' Proofs of Debt Due on November 11 SAAD INVESTMENTS: Commences Wind-Up Proceedings SINGULARIS HOLDINGS: Commences Wind-Up Proceedings TEMPO 05: Creditors' Proofs of Debt Due on November 11 ZAHLER FUND: Creditors' Proofs of Debt Due on November 12 ZAHLER INTERMEDIATE: Creditors' Proofs of Debt Due on November 12 ZAHLER MASTER: Creditors' Proofs of Debt Due on November 12 C O L O M B I A ECOPETROL SA: Pacific Rubiales to Sell US$400MM Notes Abroad J A M A I C A NATIONAL COMMERCIAL BANK: Increases ABM Fees by 23% M E X I C O CARDTRONICS INC: September 30 Balance Sheet Upside-Down byUS$8.3MM CEMEX SAB: Rinker Group Acquisition Will Pay Off in Time, CEO Says N I C A R A G U A * NICARAGUA: Is Now Able to Get SDR23.8MM Disbursement From IMF P E R U BANCO DE CREDITO: Sells US$107 Million Chile Bonds for Lending DOE RUN PERU: May Resume Operations in Early 2010 P U E R T O R I C O FIRST BANCORP: Incurs US$165.2 Million Net Loss in Third Quarter S T K I T T S & N E V I S * ST. KITTS & NEVIS: Provides Debt Forgiveness for Farmers V E N E Z U E L A CITGO PETROLEUM: Restarts Corpus Christi Alky Unit * VENEZUELA: Central Bank to Try to Lower Forex Rate X X X X X X X X CITIGROUP INC: Matthew Hickman is New Exec of Research for LatAm - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: U.S. Appeal Panel Weighs "Clawback" Claims ---------------------------------------------------------- Kathy Finn at Reuters reports that a U.S. appeals panel had tough questions on November 2, for Stanford Financial Group court- appointed receiver, Ralph Janvey, who is suing to recover proceeds from several hundred investors in Stanford International Bank Limited. According to the report, the issue discussed is whether Mr. Janvey has a right to pursue "clawback" claims for principal from Stanford clients who redeemed their certificates of deposit in the weeks before civil fraud charges were filed and the firm's assets were seized and customer accounts frozen. Reuters relates that the three-judge panel in New Orleans took issue with some of the case law Mr. Janvey used to support his appeal and questioned why the receiver, rather than the plaintiff in the case -- the U.S. Securities and Exchange Commission -- was suing the investors. "What gives you statutory authority to sue people the SEC did not?" Senior Judge Will Garwood asked, according to Reuters. "It seems to me that the plaintiff or defendant ought to be the ones . . . Frankly, in a sense, you're nobody. You are neither one," Judge Garwood added. As reported in the Troubled Company Reporter-Latin America on September 18, 2009, Bloomberg News said that Mr. Janvey, asked a U.S. Court of Appeals in New Orleans for permission to sue investors for gains they realized before a suspected US$7 billion Ponzi scheme collapsed. The report related that Mr. Janvey was blocked by a July 31 court order from pursuing so-called clawbacks against about 600 investors. According to the report, Mr Janvey said that he is seeking to recoup US$925 million tied to CDS issued by SIBL. Bloomberg News noted the U.S. SEC and John Little, a lawyer appointed by the court to represent Stanford investors’ interests, previously urged Judge Godbey to prevent Mr. Janvey from suing about 300 investors to recover more than US$600 million. The report added that investors' lawyers and Mr. Little claimed the lawsuits would cost more than they would recover and would punish people who are already victims. About Stanford International Bank 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). * ANTIGUA & BARBUDA: To Strip Robert Stanford of Knighthood ----------------------------------------------------------- Antigua and Barbuda Labor, Public Administration and Empowerment Minister, Jacqui Quinn-Leandro, who chairs the country's National Honors Committee, has sent a recommendation to Governor General Dame Louise Lake-Tack to revoke the knighthood of Robert Allen Stanford, the billionaire who is accused of orchestrating a multi- million Ponzi scheme, Pascal Fletcher at Reuters reports. "We've heard the cries of the general public about the honor being brought into disrepute," CANANEWS quoted Ms. Quinn-Leandro as saying, Reuters relates. According to Reuter, "Sir" Stanford received the knighthood conferred by Antigua and Barbuda's government in 2006, at a time when he was the country's biggest foreign investor and a major sponsor of cricket and other sports in the region. However, the report relates, the Antigua and Barbuda government said that the Stanford scandal caused financial losses and job layoffs, as well as damaging its image as an offshore finance destination. Ms. Quinn-Leandro, Reuters says, told CANANEWS that the six-member honors committee had voted unanimously to strip Mr. Stanford of the knighthood. The move to revoke the knighthood was not based on a judgment of Mr. Stanford's guilt or innocence but on the embarrassment brought to the nation by his indictment, she added. About Stanford International Bank 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 ================= AR ARGENTINA: Creditors' Proofs of Debt Due on November 27 ---------------------------------------------------------- The court-appointed trustee for Ar Argentina S.A.'s reorganization proceedings, will be verifying creditors' proofs of claim until November 27, 2009. The trustee will present the validated claims in court as individual reports on February 17, 2010. 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 April 7, 2010. CATERPILLAR FINANCIAL: Moody's Assigns 'Ba1' Issuer Ratings ----------------------------------------------------------- Moody's Investors Service assigned a Ba1 global local currency issuer rating to Caterpillar Financial Services Argentina S.A. On the National Scale, Moody's Latin America assigned a Aaa.ar local currency issuer rating. At the same time, Moody's Investors Service assigned a global local and foreign currency debt ratings of Ba1 and B2 to Caterpillar Financial Services Argentina's multi-seniority multi- currency debt program for up to ARG300 million (or its equivalent in other currencies). Moody's also assigned a Ba1 global local currency debt rating to the first and second issuances, denominated in Argentine pesos, of ARG50 million and ARG150 million respectively, under the program. On the National Scale, Moody's Latin America assigned Aaa.ar local currency debt ratings to the program and to both issuances. A Aa3.ar foreign currency debt rating was also assigned to the program. All these ratings have stable outlooks. The ratings were based on the full, unconditional and irrevocable guarantee, given by its parent Caterpillar Financial Services Corporation globally rated A2. Caterpillar Financial Services Argentina is headquartered in Buenos Aires, Argentina, with assets of ARG113 million and a negative equity of ARG6 million as of June 2009. These issuer ratings were assigned to Caterpillar Financial Services Argentina S.A.: * Global Local Currency Issuer Rating: Ba1 * National Scale Local-Currency Issuer Rating: Aaa.ar These ratings were assigned to Caterpillar Financial Services Argentina's ARG300 million debt program: * Global Local-Currency Debt Rating: Ba1 * Global Foreign-Currency Debt Rating: B2 * National Scale Local-Currency Debt Rating: Aaa.ar * National Scale Foreign-Currency Debt Rating: Aa3.ar These ratings were assigned to Caterpillar Financial Services Argentina's ARG50 million first issuance: * Global Local-Currency Debt Rating: Ba1 * National Scale Local-Currency Debt Rating: Aaa.ar These ratings were assigned to Caterpillar Financial Services Argentina's ARG150 million second issuance: * Global Local-Currency Debt Rating: Ba1 * National Scale Local-Currency Debt Rating: Aaa.ar PICASSO CARLOS: Creditors' Proofs of Debt Due on December 16 ------------------------------------------------------------ The court-appointed trustee for Picasso Carlos, Olmedo Leonardo, Percincula Miguel (Milenio Transporte S.H.)'s bankruptcy proceedings, will be verifying creditors' proofs of claim until December 16, 2009. The trustee will present the validated claims in court as individual reports on March 5, 2010. 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 April 19, 2010. VIPAGA SA: Creditors' Proofs of Debt Due on February 15 ------------------------------------------------------- The court-appointed trustee for Vipaga S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until February 15, 2010. The trustee will present the validated claims in court as individual reports on April 15, 2010. 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 May 28, 2010. * ARGENTINA: Drought Affects 90% of Territory --------------------------------------------- About 90% of Argentine territory is being affected by the current drought, although the situation is aggravated in certain provinces by the spread of forest fires, InsideCostaRica reports, citing figures released by officials and the press show. According to the report, the most serious situation is taking place in the central province of La Pampa and in Buenos Aires and Cordoba in the north-central region. Some cities, the report relates, decided to ration drinking water, a move that complicates the normal functioning of those areas and affects a number of productive sectors, including agriculture. InsideCostaRica says that the situation is worsened by several forest fires that have been raging in recent days in the provinces of Cordoba, San Luis and Catamarca, in the northwest. “Around 90% of Argentina is already suffering, with different intensity, from the drought,” South American Climatological Lab director Juan Minetti told the Clarin newspaper, the report notes. “The native forests are savings banks because they store water for the driest periods. But since the country destroyed almost all the native pastureland and 75% of the forests, we don’t have any environmental resistance,” Mr. Montenegro added. * * * As reported in the Troubled Company Reporter-Latin America on October 9, 2009, Standard & Poor's Ratings Services said that it lowered to 'B-' from 'B' its local currency long-term issuer credit rating on the City of Buenos Aires. At the same time, Standard & Poor's affirmed its 'B-' foreign currency long-term issuer credit rating. The outlook on the local and foreign currency long-term issuer credit ratings is stable. =========== B R A Z I L =========== ANHANGUERA EDUCACIONAL: Regulator OKs BRL200M Debenture Issue ------------------------------------------------------------- The Brazilian Securities and Exchange Commission (CVM) on October 29, approved an issue of non-convertible debentures worth BRL200 million (US$113 million) by Anhanguera Educacional Participacoes SA, Rogerio Jelmayer at Dow Jones Newswires reports. According to the report, the first series, worth BRL190 million, will mature Nov. 3, 2012, and the company will pay an annual interest rate of 2.15 percentage points over the local interbank rate (DI). The report relates that the second series, totaling BRL10 million, will mature Nov. 3, 2014, and the company will pay an interest rate of 8.7% per year. Banco Itau BBA will coordinate the operation. Anhanguera Educacional Participacoes SA -- http://www.unianhanguera.edu.br/ -- is a Brazil-based private, for-profit professional education company. AESA is a holding company which directly or indirectly controls and supports the operations of all of its campuses and owns 100% of the capital of Poona, Sapiens, Jacareiense, and AESA Publicacoes. The company operates three education networks, Microlins, providing vocational training centers offering short-term programs in Information Technology and Business Administration, Anhanguera/LFG, composed by distance-learning centers, offering undergraduate, graduate and extension programs, and Anhanguera, constituted by campuses offering more than 90 undergraduate programs, in addition to on- campus and distance-learning graduate and extension programs. In 2008, the company acquired 30% of the share capital of Editora Microlins Brasil Ltda and fully acquired LFG Business e Participacoes Ltda. * * * As reported in the Troubled Company Reporter-Latin America on September 21, 2009, Standard & Poor's Ratings Services said that it assigned its 'BB-' global scale corporate credit rating to Anhanguera Educacional Participacoes S.A. and affirmed its 'brA' Brazilian national scale corporate credit and debenture ratings on the company. The outlooks are stable. BANCO BRADESCO: To Release Third Quarter Results Tomorrow --------------------------------------------------------- Banco Bradesco S.A. will release its third quarter 2009 earnings results on tomorrow, November 5, 2009 at 11:00 AM ET at http://prnewswire.mediatown.com.br/player/?id=138. Jean Philippe Leroy Ivani Benazzi de Andrade Banco Bradesco S.A. 55 11 2178.6229 55 11 2178.6218 4823.jean@bradesco.com.br, 4823.ivani@bradesco.com.br 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 October 12, 2009, Banco Bradesco S.A. continues to carry Moody's "Ba2" long-term foreign bank deposits. The company also continues to carry Fitch rating's "BB" Support Rating Floor. BRASKEM SA: Posts US$2.2 Billion Net Revenue in Third Quarter ------------------------------------------------------------- Braskem S.A. posted its results for the third quarter of 2009 (3Q09). Domestic resins sales volume grew 10% in the quarter, led by PP and PVC, which posted growth of 15% and 17%, respectively. The company also registered a record high for PP sales in a single quarter, with domestic sales volume of 202 kton. Net revenue in U.S. dollar up 22% to US$ 2.2 billion, reflecting the continued strong performance of the domestic market, driven by a recovery in prices for both resins and basic petrochemicals. For the same reasons, EBITDA was R$838 million, with EBITDA margin of 20.7% in the quarter. Braskem operates its crackers at full capacity in the quarter with an average utilization rate of 97%. In 3Q09, the company once again registered record ethylene production at the crackers located in the Camacari Complex, in the state of Bahia. Fixed costs reduction reached R$ 98 million in General & Administrative expenses for 9M09, 19% lower when compared to 9M08. The spin-off of QuantiQ's polymer unit on September 1, 2009 resulted in the creation of Varient, Braskem's new resin distributor, which will create more value for clients and to the business by focusing and specializing in thermoplastic resin sales. Braskem is currently negotiating contracts for approximately 60% of the ethanol needed to supply its ETBE and green ethylene (Green PE) plants. A full text copy of the company's third quarter results is available free at: http://ResearchArchives.com/t/s?4831 About Braskem S.A. Braskem S.A. -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As of November 4, 2009, the company continues to carry Moody's Ba1 LT Corp Family rating. The company also continues to carry Fitch's BB+ Issuer default ratings ans Senior Unsecured Debt rating. As to date, Braskem SA also carries Standard and Poor's BB+ Issuer Credit ratings. CAIXA ECONOMICA: To Launch Debt Fund W/ Credit Suisse & Santander ----------------------------------------------------------------- Caixa Economica Federal, Credit Suisse , and Banco Santander Brasil are raising nearly BRL2.9 billion (US$1.7 billion) through a structured fund, Credito Corporativo Brasil, to finance corporate loans in Brazil, Guillermo Parra-Bernal at Reuters reports, citing Valor Economico newspaper. The report, citing Valor newspaper, relates that the fund will lend a maximum of BRL350 million per single company for up to six years. According to the report, Valor newspaper said that the fund will encourage companies to issue domestic bonds, asset-backed securities, promissory notes and export credit notes and then buy them. It is targeting average annual returns of 1.5 percentage points above the benchmark CDI interbank lending rate, which is currently 10.25%, Valor newspaper added. Reuters notes that Caixa Economica Federal will act as a co-manager for the fund. About Caixa Economica Headquartered in Brasilia, Caixa Economica Federal -- http://www.caixa.gov.br/-- is a Brazilian bank and one of the largest government-owned financial institutions in Latin America. Founded in Jan. 12, 1861, Caixa Economica is the second biggest Brazilian bank, second only to Banco do Brasil, and offers services in thousands of Brazilian towns, ranking third in Brazil in number of branches. The company has more than 32 million accounts and controls more than US$170 billion. It is responsible for executing policies in the areas of housing and basic sanitation, the administration of social funds and programs and federal lotteries. * * * Caixa Economica Federal continues to carry a Ba2 foreign currency deposit rating from Moody's Investors Service. The rating was assigned by Moody's in May 2008. * BRAZIL: Industrial Output Fell 7.8% in September -------------------------------------------------- Helder Marinho and Andre Soliani at Bloomberg News report that the national statistics agency said that Brazil’s industrial output fell 7.8% in September from the year-ago month. Economist expected a 6.4% decline, according to median of 28 forecasts in a Bloomberg survey. After stripping out seasonal factors, output rose 0.8% in September from the previous month, the agency said in a statement obtained by the news agency. * * * Brazil 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 ========================== CMAT 10393: Creditors' Proofs of Debt Due on November 12 -------------------------------------------------------- The creditors of CMAT 10393 Ltd. are required to file their proofs of debt by November 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 21, 2009. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 DANAE GOLD: Commences Liquidation Proceedings --------------------------------------------- On August 7, 2009, the sole shareholder of Danae Gold Fund resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by November 2, 2009, will be included in the company's dividend distribution. The company's liquidator is: Joel Johnson 58 Par-la-Ville Road, Hamilton HM 11 Bermuda DANAE GOLD: Commences Liquidation Proceedings --------------------------------------------- On August 7, 2009, the sole shareholder of Danae Gold Master Fund resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by November 2, 2009, will be included in the company's dividend distribution. The company's liquidator is: Joel Johnson 58 Par-la-Ville Road, Hamilton HM 11 Bermuda FRONTIER IX: Creditors' Proofs of Debt Due on November 11 --------------------------------------------------------- The creditors of Frontier IX Limited are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 21, 2009. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands HADRIAN FUND: Members Receive Wind-Up Report -------------------------------------------- The members of Hadrian Fund Limited received, on November 3, 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: Ian Stokoe c/o Prue Lawson Telephone: (345) 914 8662 Facsimile: (345) 945 4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands HALCYON LOAN: Creditors' Proofs of Debt Due on November 11 ---------------------------------------------------------- The creditors of Halcyon Loan Investors CLO V, Ltd. are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 18, 2009. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands JLF OFFSHORE: Creditors' Proofs of Debt Due on November 11 ---------------------------------------------------------- The creditors of JLF Offshore Fund Ltd. are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidator is: Avalon Management Limited Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 Landmark Square, 1st Floor, 64 Earth Close West Bay Beach, PO Box 715, George Town Grand Cayman KY1-1107, Cayman Islands MANTIS REEF: Creditors' Proofs of Debt Due on November 11 --------------------------------------------------------- The creditors of Mantis Reef Limited are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 21, 2009. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands MANTIS REEF: Creditors' Proofs of Debt Due on November 11 --------------------------------------------------------- The creditors of Mantis Reef Pledge Limited are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 21, 2009. The company's liquidator is: Walkers SPV Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands MAPLE STONE: Creditors' Proofs of Debt Due on November 11 --------------------------------------------------------- The creditors of Maple Stone Credit Opportunity Fund Cayman, Ltd. are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 18, 2009. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands MAPLE STONE: Creditors' Proofs of Debt Due on November 11 --------------------------------------------------------- The creditors of Maple Stone Credit Opportunity Master Fund, Ltd. are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 18, 2009. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands MOMENTUM CDO: S&P Downgrades Rating on 2006-19 Notes to 'CC' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its rating on the A$21.5 million Series 2006-19 notes issued by Momentum CDO (Europe) Ltd. to 'CC' from 'CCC-'. At the same time, S&P lowered the rating on the principal of the A$21.5 million Series 2006-3 notes issued by Prelude Europe CDO Ltd. to 'CCpNRi'. The interest on the notes is not rated. The rating downgrade on the Momentum CDO notes reflects an increased probability of a loss of principal to the noteholder. The portfolio in the transaction had suffered several credit events, which resulted in an aggregate loss that exceeded the available subordination. As a consequence, S&P expects that the principal amount of the notes will be reduced at maturity on June 30, 2012, due to the settlement amounts payable to the credit fault swap counterparty on that date. The rating on the principal of Prelude Series 2006-3 is dependent on the rating of the Momentum CDO notes. The rating actions on the affected transactions are: Ratings lowered: Rating To Rating From --------- ----------- Momentum CDO (Europe) Ltd. CC CCC- Series 2006-19 Prelude Europe CDO Ltd. CCpNRi CCC-pNRi Series 2006-3 NORTH COAST: Commences Wind-Up Proceedings ------------------------------------------ At an extraordinary general meeting held on September 4, 2009, the members of North Coast Insurance, SPC resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by October 30, 2009, will be included in the company's dividend distribution. The company's liquidator is: Marsh Management Services Cayman Ltd. P.O. Box 1051GT, Governors Square 23 Lime Tree Bay Avenue, George Town Grand Cayman PENDVEST FUND: Creditors' Proofs of Debt Due on November 11 ----------------------------------------------------------- The creditors of The Pendvest Fund are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 25, 2009. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands QALYPSO INVESTMENTS: Creditors' Proofs of Debt Due on November 11 ----------------------------------------------------------------- The creditors of Qalypso Investments (Cayman) Ltd. are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 24, 2009. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands SAAD INVESTMENTS: Commences Wind-Up Proceedings ----------------------------------------------- On September 18, 2009, the Grand Court of Cayman Islands entered an order to wind up the operations of Saad Investments Company Limited. Hugh Dickson, Mark Byers and Stephen John Akers were appointed as liquidators. The Liquidators can be reached at: Hugh Dickson Grant Thornton Specialist Services (Cayman) Limited P.O. Box 1370GT Commerce House 2nd Floor 7 Dr. Roy's Drive Grand Cayman KY1-1108, Cayman Islands Mark Byers Stephen John Akers Grant Thornton UK LLP 30 Finsbury Square London EC2P 2YU, UK SINGULARIS HOLDINGS: Commences Wind-Up Proceedings -------------------------------------------------- On September 22, 2009, the Grand Court of Cayman Islands entered an order to wind up the operations of Singularis Holdings Limited. Hugh Dickson, Mark Byers and Stephen John Akers were appointed as liquidators. The Liquidators can be reached at: Hugh Dickson Grant Thornton Specialist Services (Cayman) Limited P.O. Box 1370GT Commerce House 2nd Floor 7 Dr. Roy's Drive Grand Cayman KY1-1108, Cayman Islands Mark Byers Stephen John Akers Grant Thornton UK LLP 30 Finsbury Square London EC2P 2YU, UK TEMPO 05: Creditors' Proofs of Debt Due on November 11 ------------------------------------------------------ The creditors of Tempo 05 Fund are required to file their proofs of debt by November 11, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 17, 2009. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005, Cayman Islands ZAHLER FUND: Creditors' Proofs of Debt Due on November 12 --------------------------------------------------------- The creditors of Zahler Fund Ltd are required to file their proofs of debt by November 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 23, 2009. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 ZAHLER INTERMEDIATE: Creditors' Proofs of Debt Due on November 12 ----------------------------------------------------------------- The creditors of Zahler Intermediate Fund Ltd are required to file their proofs of debt by November 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 23, 2009. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 ZAHLER MASTER: Creditors' Proofs of Debt Due on November 12 ----------------------------------------------------------- The creditors of Zahler Master Fund Ltd are required to file their proofs of debt by November 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 23, 2009. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 =============== C O L O M B I A =============== ECOPETROL SA: Pacific Rubiales to Sell US$400MM Notes Abroad ------------------------------------------------------------ Pacific Rubiales Energy Corp. plans to sell US$400 million of seven-year notes in overseas markets, Lester Pimentel and Andrea Jaramillo at Bloomberg News report, citing an unnamed source familiar with the transaction. The report relates that the source said the company hired Bank of America Corp. and Citigroup Inc. to arrange the offering. According to the report, Bertrand Delgado, Latin America economist at RGE Monitor, an economic research company in New York, said that Latin American companies are tapping international markets as speculation the worst of the global recession is over boosts demand for higher-yielding assets including sovereign and corporate debt, said Bertrand Delgado. “There’s a lot of liquidity and investors are looking for high yield,” the report quoted Mr. Delgado as saying. “Both governments as well as companies are taking advantage of that window of opportunity to issue bonds before interest rates start to rise,” Mr. Delgado added. About Pacific Rubiales Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100% of Meta Petroleum Corp., a Colombian oil operator which operates the Quifa block in the Llanos Basin in association with Ecopetrol S.A., the Colombian national oil company. The company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has a current net production of approximately 36,000 barrels of oil equivalent per day, with working interests in 32 blocks in Colombia and Peru. * * * As of November 4, 2009, the company continues to carry Standard and Poor's B+ Issuer Credit ratings. About Ecopetrol S.A. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. under the symbol ECOPETROL. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined-products. * * * As reported in the Troubled Company Reporter-Latin America on July 15, 2009, Fitch Ratings assigned a 'BB+' rating to Ecopetrol S.A.'s proposed issuance of at least US$1 billion senior unsecured notes due 2019. Proceeds will be used for investments and general corporate purposes. ============= J A M A I C A ============= NATIONAL COMMERCIAL BANK: Increases ABM Fees by 23% --------------------------------------------------- Alicia Roache at Sunday Finance News reports that the National Commercial Bank increased the withdrawal fee for its Automated Banking Machine from JM$15 to JM$18.50, a 23% increase. According to the report, NCB said that the cost of its ABM fees generally reflect the cost of providing the service and in some cases is "merely a contribution" to the cost of providing the service. Despite the increase, the fee is actually very competitive, and is bang-for-the-buck considering that the company offers unique value-added services to its clients, the bank added. "The monthly three free ABM withdrawals is also in place and customers may even choose to enjoy all ABM withdrawals and other electronic banking transactions free of charge when they sign up for our Midas Plus package," the report quoted Sheree Martin, senior assistant general manager, Group Marketing and Communications, of NCB, as saying. The NCB Midas Plus facility, the report adds, is an electronic banking package that allows customers to conduct routine transactions such as withdrawals, deposits and bill payments free through the electronic channels. About NCB Jamaica Headquartered in Kingston, Jamaica, the National Commercial Bank Jamaica Limited -- http://www.jncb.com/-- provides commercial and retail banking, wealth management services. The company's services include personal banking, business banking, mortgage loans, wealth management and insurance services. Founded in 1977, the bank primarily operates in West Indies and the U.K. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, Standard & Poor's Ratings Services said that it lowered its long-term ratings on National Commercial Bank Jamaica Ltd., including the counterparty credit rating, to 'CCC+' from 'B-'. At the same time, S&P lowered its survivability assessment on NCB to 'B+' from 'BB+'. The outlook is negative. Fitch said the ratings have a stable rating outlook. =========== M E X I C O =========== CARDTRONICS INC: September 30 Balance Sheet Upside-Down byUS$8.3MM ----------------------------------------------------------------- Cardtronics, Inc.'s consolidated balance sheets at September 30, 2009, showed US$457.2 million in total assets and US$465.5 million in total liabilities, resulting in an US$8.3 million total shareholders' deficit. At September 30, 2009, the Company's consolidated balance sheets also showed US$46.4 million in total current assets available to pay US$88.2 million in total current liabilities. The Company reported net income of US$6.5 million on total revenues of US$128.6 million for the three months ended September 30, 2009, compared with a net loss of US$5.2 million on total revenues ofUS$127.3 million in the same period of the prior year. ATM operating revenues increasedUS$3.6 million to US$126.2 million during the three months ended September 30, 2009, from US$122.6 million during the same period last year. ATM product sales and other revenues decreased 48.2% to US$2.4 million during the three months ended September 30, 2009, compared to US$4.6 million during the same period of 2008. ATM products sales and other revenues were lower primarily due to lower equipment sales in Mexico and lower value-added reseller program sales. The Company reported net income of US$4.1 million on total revenues of US$368.6 million for the nine months ended September 30, 2009, compared with a net loss of US$13.7 million on total revenues of US$374.8 million in the same period of 2008. For the three and nine months ended September 30, 2009, ATM operating gross profit margin, exclusive of depreciation, accretion, and amortization, increased by 8.5 percentage points and 6.8 percentage points, respectively, when compared to the same periods in 2008. For the three and nine months ended September 30, 2009, ATM product sales and other revenues gross profit margin decreased by 23.8 percentage points and 11.3 percentage points, respectively, when compared to the same periods in 2008. These decreases were primarily a result of lower margins achieved on VAR, equipment, and other service sales during the second and third quarters of 2009, as we were required to lower our sales prices in light of the reduced market demand for ATM product sales. A full-text copy of the Company's consolidated financial statements for the three and nine months ended September 30, 2009, is available for free at http://researcharchives.com/t/s?481d As of September 30, 2009, the Company had US$6.1 million in cash and cash equivalents on hand and US$321.4 million in outstanding long-term debt and capital lease obligations. The Company believes that its cash on hand and its current bank credit facilities will be sufficient to meet its working capital requirements and contractual commitments for the next 12 months. Net cash provided by operating activities totaled US$49.0 million for the nine months ended September 30, 2009, compared to net cash provided by operating activities of US$11.0 million during the same period in 2008. The year-over-year increase was primarily attributable to improved operating margins and favorable working capital movements in 2009 when compared to 2008. Net cash used in investing activities totaled US$20.2 million for the nine months ended September 30, 2009, compared to US$54.0 million during the same period in 2008. The year-over- year decrease was the result of a decline in the amount of capital expenditures incurred, as a result of the Company's decision to reduce capital spending in 2009. The Company expects that its capital expenditures for the remaining three months of 2009 will total approximately US$5.0 million, net of noncontrolling interests, the majority of which will be utilized to purchase additional ATMs for its company-owned accounts. Net cash used in financing activities totaled US$26.6 million for the nine months ended September 30, 2009, compared to US$31.1 million provided by financing activities for the same period in 2008. In 2008, the Company incurred incremental borrowings under its revolving credit facility to fund the higher level of capital expenditures during the period. However, in 2009, the Company generated sufficient cash flows after capital expenditures that allowed the Company to repay a significant portion of the outstanding borrowings under its revolving credit facility. As of September 30, 2009, the Company had US$321.4 million in outstanding long-term debt and capital lease obligations, which was comprised of (1) US$297.1 million (net of discount of US$2.9 million) of its senior subordinated notes, (2) US$17.0 million in borrowings under its revolving credit facility, (3) US$6.9 million in notes payable outstanding under equipment financing lines of its Mexico subsidiary, and (4) US$413,000 in capital lease obligations. The Company said that as of September 30, 2009, it was in compliance with all covenants contained within its US$175.0 million revolving credit facility and had the ability to borrow an additional US$152.2 million under the facility based on such covenants. Based in Houston, Texas, Cardtronics, Inc. operates the world's largest non-bank network of automated teller machines. As of June 30, 2009, the Company's network included over 33,000 ATMs throughout the United States, the United Kingdom, and Mexico, primarily at national and regional merchant locations. The Company provides ATM management and equipment-related services and electronic funds transfer transaction processing services to its network of ATMs as well as ATMs owned and operated by a third party. CEMEX SAB: Rinker Group Acquisition Will Pay Off in Time, CEO Says ------------------------------------------------------------------ Thomas Black at Bloomberg News reports that CEMEX, S.A.B. de C.V. Chief Executive Officer Lorenzo Zambrano is confident that his US$14.2 billion acquisition of Rinker Group Ltd., which almost pushed company into default, will pay off over time. The report relates that Mr. Zambrano is optimistic even after Cemex SAB's sales plunged 31% in the first nine months of the year. “The mistake was not to finance the Rinker acquisition more conservatively,” Mr. Zambrano told Bloomberg News in an interview. “You’ll see. It will pay off. Believe me,” he added. As reported in the Troubled Company Reporter-Latin America on March 11, 2009, Reuters said that Cemex SAB has been slammed by debt problems after its ambitious Rinker takeover in 2007, slumping sales, and losses on derivatives amid turmoil caused by the global credit crisis. Mr. Zambrano, Bloomberg News notes, said that he has been told that he will fail after every big acquisition he has made: Two Spanish cement makers in 1992, Houston-based Southdown Inc. in 2000, U.K.-based RMC Group Plc in 2005, and now Rinker. However, the report note, Mr. Zambrano said that he has proved critics wrong in the past and is working to defy them again. According to a TCRLA report on November 3, 2009, citing Bloomberg News, Cemex SAB is considering selling a 5-year to 10-year bond within six months to pay bank debt and push maturities beyond 2014. The report related that the sale would be in addition to a convertible bond Cemex has said it will sell. Cemex SAB disclosed that it completed its refinancing of the majority of the company's outstanding debt. The refinancing plan extends the maturities of roughly US$15 billion in syndicated and bilateral obligations with roughly 75 banks and private placement noteholders, providing for a semi-annual amortization schedule, with a final maturity of February 14, 2014. Bloomberg News notes that Christopher Palmer, who oversees about US$5 billion as head of global emerging markets at Gartmore Investment Management Ltd. in London, said that turning the company around may take time. Cemex SAB said consolidated net sales in the three months ended September 30, 2009, decreased to US$4.2 billion from US$5.8 billion in the comparable period in 2008, representing a decrease of 27%. “The third-quarter earnings of Cemex were sort of a wake- up call that this is a company in the very early stages of stabilizing,” Bloomberg News quoted Mr. Palmer as saying. Bloomberg News adds that Gonzalo Fernandez, a Mexico City-based analyst with Banco Santander SA, said that Cemex SAB will have to use most of its cash profits to pay debt at least until 2013. About Cemex SAB CEMEX, S.A.B. de C.V. is a Mexican corporation, a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As reported in the Troubled Company Reporter-Latin America on August 19, 2009, Fitch Ratings has affirmed these ratings of Cemex, S.A.B. de C.V.: -- 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)'. ================= N I C A R A G U A ================= * NICARAGUA: Is Now Able to Get SDR23.8MM Disbursement From IMF --------------------------------------------------------------- The Executive Board of the International Monetary Fund completed the second and third reviews of Nicaragua’s economic performance under the three-year Poverty Reduction and Growth Facility arrangement. The completion of the reviews enables Nicaragua to receive an immediate disbursement of SDR23.8 million (about US$37.8 million), bringing total disbursements to SDR54.1 million (about US$85.9 million). The Executive Board also granted waivers of non-observance of two program targets. These waivers cover a shortfall in net international reserve accumulation for the second half of 2008 resulting from temporary declines in external financing, and delays in central bank approval of the bank-bond restructuring agreements with private banks, reflecting Assembly delays in ratifying a new central bank board. The Executive Board approved the three-year PGRF arrangement for SDR71.5 million (about US$113.5 million) in October 2007. In September 2008, the Board increased financial support under the program by SDR6.5 million (about US$10.3 million) to help Nicaragua cope with the natural disasters of 2007. Following continued implementation of program commitments and a strengthened macroeconomic program for the remainder of 2009 and 2010, the remaining SDR23.9 million (about US$37.9 million) will be disbursed over the course of 2010. Following the Executive Board discussion, Mr. Takatoshi Kato, Deputy Managing Director and Acting Board Chair, issued the following statement: “The Nicaraguan economy has been negatively affected by the global crisis and domestic uncertainties. Output is expected to decline in 2009 owing to lower external and domestic demand, resulting in lower exports, remittances, and investment. The authorities’ policy response thus far in 2009 has been geared at supporting domestic demand and shielding the financial system from global shocks. “The authorities have developed a strengthened macroeconomic program for the remainder of 2009 and 2010 aimed at protecting the balance of payments position and placing public debt on a sustainable path. Fiscal consolidation efforts will be underpinned by measures comprising a strict control on current spending—particularly on wages and pensions to make room for capital and social outlays, a revenue-enhancing reform that broadens the tax base, and measures to begin to strengthen the pension system’s finances. Broad consensus should be sought to ensure the approval of these measures by end-year, which is critical for fiscal consolidation. “Monetary policy will be geared to keeping inflation low, while protecting international reserves and supporting the crawling peg regime. The proposed reforms to the central bank charter should strengthen the central bank’s autonomy and accountability, and improve the effectiveness of monetary operations. “The banking system remains sound, though increased vigilance will be required in light of growing nonperforming loans. With regard to the unregulated microfinance sector, the authorities will encourage a market-friendly and voluntary resolution in the case of troubled debtors. Progress on the effective implementation of risk-based and consolidated cross-border supervision will continue. “Structural reforms will be geared to improving Nicaragua’s medium-term growth prospects and ensuring the sustainability of public finances. Reforms in the energy sector will be aimed at further reducing distribution losses, while creating conditions for private investment in renewable and more efficient generation sources. Actions on the fiscal front will focus on improving public financial management to increase the efficiency and pro- poor orientation of public spending, on strengthening revenue administration, and on developing options to address the pension system’s actuarial imbalance. “The authorities recognize the importance of steadfast implementation of the program and the need to consolidate public finances over the medium term. Strengthening governance and the business climate will be critical to leverage donor support and improve growth prospects,” Mr. Kato said. * * * As of November 3, 2009, Nicaragua continues to carry Moody's Caa1 Foreign currency rating and B3 local currency rating with stable outlook. ======= P E R U ======= BANCO DE CREDITO: Sells US$107 Million Chile Bonds for Lending -------------------------------------------------------------- James Attwood at Bloomberg News reports that Banco de Credito del Peru sold US$107 million worth of Chilean bonds. The report relates that the company sold 2.7 Unidades de Fomento, Chile’s inflation-adjusted accounting unit, in five-year bullet bonds priced to yield 3.97%, or 140 basis points above central bank yields. According to the report, Banco de Credito del Peru Head of Finance Alvaro Correa said that the company plans to sell up to US$300 million of bonds during the next year in Chile as an alternative foreign market to the U.S. and Europe. Larrain Vial SA Corredora de Bolsa and BCI Corredor de Bolsa SA managed the sale. BCP, the report says, will use the proceeds to help finance its lending business. About Banco de Credito Banco de Credito del Peru is Peru's largest bank, with a dominating market share of over 30% of deposits, and boasts total consolidated assets of US$9.6 billion and equity of US$780 million as of June 30, 2006. It is the principal operating company within Credicorp, Peru's largest financial services company, which controls 96.2% of Banco de Credito; Credicorp is widely held by local and foreign institutional shareholders. * * * As reported in the Troubled Company Reporter-Latin America on October 2, 2009, Moody's Investors Service has placed on review for possible upgrade the Ba2 long term foreign currency deposit ratings of Banco de Credito del Peru and Banco Internacional del Peru -- Interbank, following the same action taken on Peru's sovereign ceiling for foreign currency deposits. DOE RUN PERU: May Resume Operations in Early 2010 ------------------------------------------------- Isabel Guerra at LivinginPeru.com reports that Peru Mining Vice Minister Fernando Gala said that his sector expects that Doe Run Peru can resume operations during the first months of 2010. According to the report, citing La Republica press, Doe Run's representatives and the workers agreed to continue in stand-by until they can restart operations. The report relates that the workers will continue to receive 65% of their monthly salaries until then. In addition, the report notes that Mr. Gala said that the Economy and Finance Ministry will request Doe Run Peru to present a 100% guarantee, along with letters of guarantee. As reported in the Troubled Company Reporter-Latin America on October 1, 2009, AMM News said that a Doe Run Peru spokesman said that the company will delay the reopening of its smelter following reports that Peru's congress voted to give the comany a 30-month extension on its environmental cleanup deadline, which expired on October. The report recalls that Doe Run Peru filed for a government-monitored financial restructuring because it was worried creditors might try to freeze its assets or operations. Reuters related that Doe Run Peru owes some US$100 million to its suppliers and needs to spend another US$150 million to clean up La Oroya. About Doe Run Peru Doe Run Peru operates an integrated primary lead operation and a recycling operation located in Missouri, referred to as Buick Resource Recycling. Fabricated Products operates a lead fabrication operation located in Arizona and a lead oxide business located in Washington. * * * As of May 21, 2009, the company continues to carry Moody's bank financial strength at D- and Fitch Ratings individual rating at D. ==================== P U E R T O R I C O ==================== FIRST BANCORP: Incurs US$165.2 Million Net Loss in Third Quarter ---------------------------------------------------------------- First BanCorp reported a net loss of US$165.2 million, or US$1.89 per diluted share, which includes a US$152.2 million non-cash charge to increase the deferred tax asset valuation allowance in the third quarter ended September 30, 2009. Pre-tax loss was US$51.7 million, compared to a pre-tax loss of US$176.7 million for the second quarter of 2009 and a pre-tax gain of US$20.8 million for the third quarter of 2008. First BanCorp recorded a provision for loan and lease losses of US$148.1 million, which exceeded net charge-offs for the quarter by US$63.7 million, compared to a provision of US$235.2 million for the second quarter of 2009 and US$55.3 million for the third quarter of 2008. The bank's net interest income, excluding fair value adjustments, increased to US$132.2 million, an increase of US$3.6 million compared to the second quarter of 2009; net interest margin, excluding fair value adjustments, increased to 2.68%, up 4 basis points compared to the second quarter of 2009. First BanCorp recorded a realized gain on sale of investments of US$34.3 million, compared to US$10.3 million for the second quarter of 2009. Non-interest expenses were US$82.8 million, a decrease of US$13.2 million compared to the second quarter of 2009; efficiency ratio of 46.21% compared to 62.16% for the second quarter of 2009. The total non-performing loans increased by US$367.5 million to US$1.54 billion as of September 30, 2009, while the allowance for loan and lease losses to total loans coverage ratio increased to 3.43% from 3.11% as of June 30, 2009. The bank's estimated Tier 1 Capital Ratio of 12.5%, estimated Total Capital Ratio of 13.8% and estimated Leverage Ratio of 9.0%; estimated Tier 1 and Total Regulatory Capital exceeded the well- capitalized minimum by US$937 million and US$545 million, respectively. A full text copy of the company's third quarter results is available free at http://researcharchives.com/t/s?481e About First BanCorp First BanCorp (NYSE: FBP) -- http://www.firstbankpr.com/-- is the parent company of FirstBank Puerto Rico, a state chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida; of FirstBank Insurance Agency; and of Ponce General Corporation. First BanCorp, FirstBank Puerto Rico and FirstBank Florida, formerly UniBank, the thrift subsidiary of Ponce General, all operate within U.S. Banking laws and regulations. * * * As reported in the Troubled Company Reporter-Latin America on October 9, 2009, Fitch Ratings downgraded First BanCorp's long- term Issuer Default Ratings to 'B-' from 'BB' and Individual ratings to 'D/E' from 'C/D'. Fitch also downgraded the ratings of FBP's subsidiary, FirstBank of Puerto Rico to 'B' from 'BB' and the Individual rating to 'D' from 'C/D'. The Rating Outlook is Negative. ============================ S T K I T T S & N E V I S ============================ * ST. KITTS & NEVIS: Provides Debt Forgiveness for Farmers ---------------------------------------------------------- St. Kitts & Nevis' government has introduced an amnesty program for farmers who owe the Agriculture Department rent on lands, Caribbean360.com reports. According to the report, farmers with legalized land tenure, who are in arrears, will have until December 31 to pay 25% of the outstanding monies, in order for the remaining 75% to be forgiven. However, the report relates, Director of Agriculture, Ashton Stanley, said that if these arrangements are not made by the end of the year, farmers will be required to pay the debt in full. The government, the report notes, said it was making the offer because it recognizes the difficulties which farmers may be facing in these harsh economic times. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Restarts Corpus Christi Alky Unit -------------------------------------------------- Citgo Petroleum Corp restarted an alkylation unit at its 163,000 barrel per day (bpd) Corpus Christi, Texas, refinery October 29, Erwin Seba at Reuters reports. According to the report, an unnamed official said that the restart of the unit went smoothly. As reported in the Troubled Company Reporter-Latin America on October 27, 2009, Reuters said that Citgo Petroleum planned to begin restarting its alkylation unit no later than the October 31- November 1. The report related that repairs on the unit were completed and preparations for restarting the unit began on October 24. According to a TCRLA report on October 8, 2009, citing Reuters, Citgo Petroleum has moved has delayed the restart date its Corpus Christi refinery because of union complaints about safety. Reuters related that the campaign by the union and environmental groups to stop the use of hydrogen fluoride was said by the sources to be the reason for Citgo's push to get the alkylation unit back on line. The report pointed out that the company fears a regulator may stop a shut hydrogen fluoride alkylation unit's return to operation. Reuters recalled that Citgo Petroleum's alkylation unit was shuttered following a July 19 morning fire at refinery. About Citgo Petroleum Headquartered in Houston, Texas, Citgo Petroleum Corp. -- http://www.citgo.com/-- is owned by PDV America, an indirect, wholly owned subsidiary of Petroleos de Venezuela S.A., the state-owned oil company of Venezuela. * * * As reported in the Troubled Company Reporter on June 5, 2009, Fitch Ratings affirmed the current ratings of CITGO Petroleum Corporation but revised the company's Outlook to Negative from Stable. Fitch affirmed these ratings for CITGO: -- Issuer Default Rating at 'BB-'; -- Senior Secured Credit Facility at 'BBB-'; -- Secured Term Loan at 'BBB-'; -- Fixed-Rate Industrial Revenue Bonds at 'BBB-'. * VENEZUELA: Central Bank to Try to Lower Forex Rate ---------------------------------------------------- Venezuela central bank president Nelson Merentes reiterated the government's plans to continue selling dollar-denominated bonds to lower the unofficial rate for U.S. dollars, Darcy Crowe at Dow Jones Newswires reports. The report relates that Mr. Merentes, in an interview with El Nacional, said that the government will "intervene in the market" to make sure that the unofficial rate for U.S. currency doesn't surge. "The idea is to bring the gap to 60% above the official exchange rate," he added. According to the report, Venezuela pegs its currency at a rate of VEB2.15 to the dollar, while in the unofficial market, a greenback now fetches around VEF5.15. Dow Jones Newswires says that the 60% gap mentioned by Merentes means that the government's goal is to have the unofficial rate at around VEF3.44. Dow Jones Newswires notes that Mr. Merentes told El Nacional said that that inflation "is my biggest worry," adding that "it is possible to continue working so in 2012 we're at one single digit." The government's budget for next year was estimated with inflation running at 22%, Dow Jones Newswires adds. * * * 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 =============== CITIGROUP INC: Matthew Hickman is New Exec of Research for LatAm ---------------------------------------------------------------- James Attwood and Veronica Navarro Espinosa at Bloomberg News report that Matthew Hickman, formerly head of Latin American equities at the asset management unit of Credit Suisse Group AG, will replace Geoffrey Dennis as Citigroup’s director of research for Latin America. The report relates that Mr. Dennis has been appointed as the company's first global emerging-markets equity strategist. According to the report, Mr. Hickman was head of Latin American equities at Credit Suisse’s asset management unit for the past six years. The report relates that Mr. Hickman is a former telecommunications analyst for Bear Stearns Cos. and director of research for Latin America at Lehman Brothers Holdings Inc. Bloomberg News notes that signs of a global recovery have lured investors to higher- yielding assets, pushing the 22-nation MSCI Emerging-Markets Index 62% higher this year. Developing nation inflows have reached a record US$64 billion this year, according to estimates by Morgan Stanley, the report relates. The MSCI Latin America Index has gained 80% this year, the most since 1991, Bloomberg News says. A “correction” in Latin American equities is more likely early next year than late this year, a Citigroup strategist wrote in a note obtained by the news agency. About Citigroup Inc. Based in New York, Citigroup Inc. (NYSE: C) -- http://www.citigroup.com/-- is organized into four major segments -- Consumer Banking, Global Cards, Institutional Clients Group, and Global Wealth Management. At June 30, 2009, Citigroup had total assets ofUS$1.84 trillion and total liabilities of US$1.69 trillion. As reported in the Troubled Company Reporter on November 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. The U.S. Treasury and the Federal Deposit Insurance Corporation agreed to provide protection against the possibility of unusually large losses on an asset pool of roughlyUS$306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup issued preferred shares to the Treasury and FDIC. The Federal Reserve agreed to backstop residual risk in the asset pool through a non-recourse loan. Citigroup, the third-biggest U.S. bank, received US$52 billion in bailout aid. Other bailed-out banks, including Bank of America Corp., Wells Fargo & Co., have pledged to repay TARP money. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, repaid TARP funds in June. Citigroup is one of the banks that, according to results of the government's stress test, need more capital. *********** 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 * * *