/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/091119.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 Thursday, November 19, 2009, Vol. 10, No. 229 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Defendants Clash With Lloyd’s Over Payments STANFORD INT'L: U.S. Receivers Challenge U.K. Ruling Over Assets A R G E N T I N A METROGAS SA: S&P Downgrades Corporate Credit Rating to 'CCC-' TRANSPORTADORA GAS: Fitch Puts 'CCC' Rating on US$247.3 Bil. Notes B E R M U D A BURGAN MAN: Creditors' Proofs of Debt Due on November 27 BURGAN MAN: Members' Final Meeting Set for December 15 BURGAN MAN: Members' Final Meeting Set for December 15 CGA GROUP: Creditors' Proofs of Debt Due on November 27 CGA GROUP: Members' Final Meeting Set for December 17 PRB LIMITED: Creditors' Proofs of Debt Due on December 3 PRB LIMITED: Members' Final Meeting Set for December 21 B R A Z I L BANCO NACIONAL: Approves US2.6 Billion Loan for Telecom Group Oi GERDAU SA: Sells US$1.25BB of 10-Year Bonds in Overseas Markets * BRAZIL: 3rd Qtr GDP Grew at "Chinese Pace", President Says C A Y M A N I S L A N D S CASTLEHILL LIMITED: Commences Wind-Up Proceedings COPENHAGEN CAPITAL: Members Receive Wind-Up Report COPENHAGEN CAPITAL: Members Receive Wind-Up Report COPENHAGEN CAPITAL: Members Receive Wind-Up Report DIALOGUE DIRECTORS: Creditors' Proofs of Debt Due on November 26 GOROH LTD: Commences Wind-Up Proceedings LESLI LIMITED: Commences Wind-Up Proceedings MARLEBONE INVESTMENTS: Commences Wind-Up Proceedings NITE CAPITAL: Creditors' Proofs of Debt Due on November 25 NITE CAPITAL: Creditors' Proofs of Debt Due on November 25 PICCADILLY CAYMAN: Creditors' Proofs of Debt Due on November 26 PICCADILLY DIRECTORS: Creditors' Proofs of Debt Due on November 26 POST DISTRESSED: Creditors' Proofs of Debt Due on November 25 PREMIUM PORTFOLIO: Creditors' Proofs of Debt Due on November 24 PRINCESS ROSE: Creditors' Proofs of Debt Due on January 5 PROMETHEAN I: Creditors' Proofs of Debt Due on November 26 RIGHT CHANCE: Commences Wind-Up Proceedings SESAME LIMITED: Commences Wind-Up Proceedings SUCCESSOR I: Creditors' Proofs of Debt Due on November 27 TOSCANINI LIMITED: Commences Wind-Up Proceedings C H I L E EMPRESA ELECTRICA: Shareholders Agrees to Combine Assets to Firm C O L O M B I A ECOPETROL SA: Government Rules Out Sale of Firm's Shares D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: World Bank OKs US$300 Million Loan * DOMINICAN REPUBLIC: Economy Badly Affected by Crisis, IMF Says M E X I C O CONTROLADORA COMERCIAL: Still in Talks With Creditors STATE OF VERACRUZ: Moody's Downgrades Issuer Rating to 'Ba2' * MEXICO: To Support Private Enterprises with IDB Credit Line P A N A M A PANAMA: Fitch Assigns 'BB+' Rating on US$1 Bil. Global Bonds V E N E Z U E L A * VENEZUELA: 2009 Exports to U.S. Fall by 60% X X X X X X X X * LATAM: Inter-American Discusses Impact of Water Crisis * Upcoming Meetings, Conferences and Seminars - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Defendants Clash With Lloyd’s Over Payments ----------------------------------------------------------- Laurel Brubaker Calkins and Andrew M. Harris at Bloomberg News report that Lloyd’s of London said the admission made by former Stanford International Bank Limited Chief Financial Officer, James "Jim" Davis when he pleaded guilty relieves the insurance syndicate of the obligation to pay defense costs for Robert Allen Stanford and his codefendants. The report relates that Lloyd’s lawyers told U.S. District Court Judge David Hittner that the statements reveal criminal activity that takes the defendants actions outside the terms of their directors’ and officers’ insurance coverage. “We’re in uncharted territory,” Judge Hittner told the lawyers for each side after hearing more than three hours of argument, the report relates. “I know we’re dealing with a matter of law, but there’s an issue of fairness here,’’ he added. Judge Hittner, the report notes, repeatedly said Lloyd’s decision to deny coverage was based “not on facts but on someone who stated something under oath.’’ According to Bloomberg News, Judge Hittner ordered both sides to submit proposed orders to him no later than Dec. 4, one of which he would adopt as his decision. Bloomberg News relates that Lloyd’s lawyer Barry Chasnoff, a partner in the San Antonio office of Washington-based Akin Gump Strauss Hauer & Feld LLP, said that: “We made a contract and believe we paid what we owe.” “We’ve paid a total of $4.2 million for work done prior to Aug. 27. We believe under the contract we don’t owe anymore,” Mr. Chasnoff added. Judge Hittner in September appointed the Houston Federal Public Defender’s Office to represent Stanford while his assets remained frozen by order of the Dallas federal court, where a U.S. Securities and Exchange Commission case against the financier is pending. As reported in the Troubled Company Reporter-Latin America on October 13, 2009, Bloomberg News said that U.S. District Judge David Godbey of Dallas ruled that Robert Allen Stanford, the financier accused of orchestrating a multi-billion Ponzi scheme, can use corporate insurance policy proceeds to pay defense lawyers. The report related that Mr. Stanford and other Stanford Group executives can draw from Lloyds of London officers' and directors' coverage said to be worth at least US$50 million. "The court finds it in the interest of fairness to allow directors and officers to access insurance proceeds to which they are entitled for several reasons," Bloomberg News quoted Judge Godbey as saying. "The potential harm to them if denied coverage is not speculative but real and immediate; they may be unable to defend themselves in civil actions in which they do not have a right to court-appointed counsel," Judge Godbey 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). STANFORD INT'L: U.S. Receivers Challenge U.K. Ruling Over Assets ---------------------------------------------------------------- James Lumley at Bloomberg News reports that Robert Allen Stanford’s U.S. receivers asked a London appeals court to overturn a ruling that gave control of millions of pounds held in U.K. bank accounts to Antiguan liquidators. According to the report, Stuart Isaacs, lawyer for the U.S. court- appointed receiver Ralph Janvey, told a three-judge panel at the Court of Appeal in London that the U.S. receiver should have control of the assets since Mr. Stanford’s alleged crimes were carried out from the U.S. Stanford has been in custody since June. The liquidators, the report notes, have clashed in London and in a federal court in Houston over who should have authority to recover Stanford’s global assets It’s the U.S. receiver “and he alone who is the proper person to deal with Stanford International Bank Limited's assets in the U.K. and elsewhere,” Mr. Isaacs was quoted by the report as saying. The alleged Ponzi scheme was operated from the U.S. and “the vast majority of SIB’s identifiable assets were in jurisdictions other than Antigua,” he added. Bloomberg News notes that lawyers for the Antiguan liquidator said they would fight the appeal later in the hearing. As reported in the Troubled Company Reporter-Latin America on July 7, 2009, a trial court in the United Kingdom issued a decision that recognized the Antiguan Liquidators as "foreign representatives" in the U.K. for Stanford International Bank Limited, and recognized the Antiguan liquidation proceeding for SIBL as the "foreign main proceeding" for SIBL, at least so far as UK law goes. In the same decision, the court also recognized, as a matter of U.K. law, the Receiver as the receiver for the other defendants in the U.S. receivership. If the decision is not reversed on appeal, and ignoring any asset freezes, the decision would give the Antiguan Liquidators powers over assets of SIB that are located in the United Kingdom. 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 ================= METROGAS SA: S&P Downgrades Corporate Credit Rating to 'CCC-' ------------------------------------------------------------- On Nov. 17, 2009, Standard & Poor's Ratings Services lowered its ratings on Metrogas, including its corporate credit rating to 'CCC-' from 'CCC'. The outlook is negative. The downgrade reflects the company's weakening financial metrics due to the increasing operating and financial costs and debt levels (measured in Argentine pesos, ARP) amid tariff freeze (since January 2002), inflation, and the ARP devaluation. As a result, S&P expects Metrogas to face increasing financial challenges due to its growing debt maturity payments of $21 million in 2010 and $42 million in 2011. The ratings on Metrogas are not affected at this point by the May 2009 filing for reorganization (Concurso Preventivo de Acreedores) by its controlling shareholder, Gas Argentino S.A. mainly because it causes neither a revocation of its license nor an event of default under the terms and conditions of Metrogas' debt. Also, the ratings do not incorporate a potential financial support from Metrogas' parents or cash distributions to Metrogas shareholders. The ratings on Metrogas mainly reflect the high political and regulatory risk in Argentina (based on the uncertainties about the still pending renegotiation of the company's license after pesification and tariff freeze), the significant mismatch between the company's revenues in ARP and debt in foreign currency, mostly in dollars, its high leverage, and weak financial flexibility. In September 2008, the Argentine government announced a 10%-30% tariff increase for Metrogas depending on the type of customer and its consumption level, which was expected to be at least ARP35 million - ARP45 million higher in annual cash generation. The tariff increase has not been implemented yet. Proceeds are expected to go to a trust fund to finance network maintenance and expansion. Thus, the company would not discretionally dispose of that cash until one of its main shareholders, the BG Group, withdraws its legal claim (related to the pesification and tariff freeze) against Argentina in international courts. Metrogas' financial risk profile has been gradually weakening during the past three years due to increasing operating and financial costs and debt levels. Metrogas' debt to EBITDA has deteriorated to 5.3x in the 12 months ended Sept. 30, 2009 from 3.8x for the same period in 2008. In addition, funds from operations interest coverage and FFO to total debt have weakened to 1.8x and 12.9% from 2.6x and 28.3%, respectively. S&P expects Metrogas to face increasing challenges in meeting its growing debt maturity schedule: principal maturities of about $10.5 million in June 2010 and December 2010, and $21.1 million in June 2011 and December 2011. Metrogas is Argentina's largest distributor of natural gas that serves more than 2 million customers through a 35-year exclusive license to distribute natural gas in the Buenos Aires metropolitan region, which is the country's most densely populated area. In Standard & Poor's opinion, Metrogas' liquidity is weak and has gradually deteriorated in the past months due to the company's weaker financial performance. Total cash reserves reached $22.0 million as of Sept. 30, 2009 ($14.2 million as of Dec. 31, 2008), compared with a $15.9 million short-term debt, including holdouts and accrued interests. A further devaluation of the Argentine peso could continue squeezing the company's liquidity and financial flexibility. The negative outlook reflects S&P's expectations that Metrogas' financial performance could be further impaired due to higher operating and financial costs and debt levels due to inflation and peso devaluation within a context of tariff freeze. S&P could lower the ratings if cash generation and liquidity continue to decrease and if debt levels and refinancing risk keep rising. Potential ratings upgrade would require a tariff increase, resulting in a significant improvement of the company's debt repayment capacity. Downgraded Metrogas S.A. Corporate Credit Rating To From -- ---- Foreign Currency CCC-/Negative/-- CCC/Negative/-- Local Currency raCCC+/Negative/-- raB/Negative/-- Senior unsecured notes CCC- CCC TRANSPORTADORA GAS: Fitch Puts 'CCC' Rating on US$247.3 Bil. Notes ------------------------------------------------------------------ Fitch Ratings has assigned Transportadora Gas del Norte's proposed exchange note offering of US$247.3 million seven year notes (new notes) a rating of the 'CCC' and a recovery rating of 'RR4'. The new notes have been assigned a long-term national scale rating of 'BB(arg)'. The Rating Outlook is Stable. In addition, Fitch has assigned preliminary local and foreign currency Issuer Default Ratings of 'CCC', which would replace the currently outstanding local and foreign currency IDRs of 'D' upon completion of the debt restructuring. The new US$247.3 notes are part of TGN's proposal to restructure US$347.3 million of existing debt, which includes currently outstanding notes for US$344.9 million and commercial debt of US$2.4 million. Existing creditors have been offered two exchange options, 1) up to US$40 million in cash for US$100 million par value of existing note, or 2) new notes for up to US$247.3 million for existing note of equal par value; oversubscription of either option will be prorated to the other option. The new notes will carry a coupon rate that steps-up over the course of the notes and are 6.5% for years one to three, 7.5% for years four and five, and 8.5% for years six and seven. The notes have a minimum cash interest payment of 3.5% per annum, with the option for TGN to capitalize the remainder. Principal will be amortized in bi- annual installments beginning in year five equivalent to 7.5% each in year five, 10% each in year six, and 65% in year seven. Following the debt restructuring, TGN's total debt will be reduced by US$100 million to US$247.3 million and net debt will be reduced by US$60 million, somewhat reducing leverage. Positively, the restructuring significantly lowers short term debt service requirements for the first four years following completion by lowering cash interest expense to 3.5% and eliminating principal payments until 2015. However, as principal amortizations begin in year five, absent tariff increases or other factors that add to positive cash flow, which remain highly uncertain at this time, cash flow would likely become negative and could result in pressure on credit quality and add to financial distress. Since 2002, the company's cash generation has been negatively impacted by continued frozen tariffs, reduction in export revenues, and increase in its cost structure and peso devaluation; many of these negative operating factors are expected to continue to adversely impact the company's operating performance over the next several years. The time of the restructuring remains uncertain. First, the APE court will need to issue the initial endorsement approving the restructuring agreement. After such endorsement is issued, TGN will restructure the outstanding debt held by consenting creditor and restructure the remaining outstanding debt at a later date in accordance with the final endorsement. The state owned institutional investor, ANSES, is amongst the non-consenting creditors. On Oct. 14, 2009, TGN announced that around 87% of outstanding principal has agreed to its debt restructuring proposal and has subsequently filed the restructuring agreement with an APE Court for its approval pursuant to the Argentine Bankruptcy Law. Consenting creditors have the option to withdraw its consent to the offer on July 14, 2010. As of September 2009, TGN's cash and marketable securities was US$78 million. In the nine month period ended in September 2009, free cash flow was ARP218 million; Fitch expects next year's cash generation will deteriorate as a result of the recent suspension of payments under Metrogas' and YPF's export contracts. Positively, TGN has come to terms with its Chilean off-taker San Isidro and revenues of approximately US$11 million per year have been agreed until January 2014, although this will not be sufficient to help maintain a stable cash generation. TGN is one of the two largest transporters of natural gas in Argentina, delivering approximately 40% of the country's total gas consumption and more than 50% of Argentine total gas exports. TGN has an exclusive license to operate the northern Argentina gas pipeline system for a term of 35 years, which may be extended for an additional 10-year period. The Argentine government has intervened into TGN's administration since December 2008. The designated government's interventor is responsible for supervising all actions related to the public service. TGN's main shareholders are Gasinvest S.A. (56.35%) and Blue Ridge Investments LLC (23.53%), while 20% is floating in the market. Gasinvest S.A. is in turn owned by TecPetrol Internacional SL (27.2%), Transcogas Inversora S.A. (22.3%), Total Gas y Electricidad Argentina S.A (20.6%), Petronas Argentina S.A(18.3%). Total Gasandes (6.6%), and Compania General de Combustibles S.A. (5%). ============= B E R M U D A ============= BURGAN MAN: Creditors' Proofs of Debt Due on November 27 -------------------------------------------------------- The creditors of Burgan Man Multi-Strategy Guaranteed Ltd are required to file their proofs of debt by November 27, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 9, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda Bermuda BURGAN MAN: Members' Final Meeting Set for December 15 ------------------------------------------------------ The members of Burgan Man Multi-Strategy Guaranteed Ltd will hold their final meeting on December 15, 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 November 9, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda Bermuda BURGAN MAN: Members' Final Meeting Set for December 15 ------------------------------------------------------ The members of Burgan Man Multi-Strategy Trading Ltd will hold their final meeting on December 15, 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 November 9, 2009. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda Bermuda CGA GROUP: Creditors' Proofs of Debt Due on November 27 ------------------------------------------------------- The creditors of CGA Group, Ltd. are required to file their proofs of debt by November 27, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 6, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda CGA GROUP: Members' Final Meeting Set for December 17 ----------------------------------------------------- The members of CGA Group, Ltd will hold their final meeting on December 17, 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 November 6, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PRB LIMITED: Creditors' Proofs of Debt Due on December 3 -------------------------------------------------------- The creditors of PRB Limited are required to file their proofs of debt by December 3, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 13, 2009. The company's liquidator is: Jennifer Y. Fraser Canone Court, 22 Victoria Street Hamilton, Bermuda PRB LIMITED: Members' Final Meeting Set for December 21 ------------------------------------------------------- The members of PRB Limited will hold their final meeting on December 21, 2009, at 9:00 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 November 13, 2009. The company's liquidator is: Jennifer Y. Fraser Canone Court, 22 Victoria Street Hamilton, Bermuda =========== B R A Z I L =========== BANCO NACIONAL: Approves US2.6 Billion Loan for Telecom Group Oi ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA approved BRL4.4 billion (US$2.6 billion) in loans to local telecom group Oi for expansion plans through 2011, Guillermo Parra-Bernalat at Reuters reports. According to the report, Oi will use the funds to implement broadband Internet services in more than 3,000 Brazilian municipalities and 28,000 schools by the end of next year. 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. GERDAU SA: Sells US$1.25BB of 10-Year Bonds in Overseas Markets --------------------------------------------------------------- Veronica Navarro Espinosa at Bloomberg News reports that Gerdau SA sold US$1.25 billion of 10-year bonds in overseas markets as the company prepares to boost investment in its iron-ore business, said a person familiar with the transaction. According to the report, citing an unnamed source, relates that the bonds yield 7.25%. HSBC Holdings Plc, Banco Santander SA, Banco Itau, Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. arranged the offering, the source added. As reported in the Troubled Company Reporter-Latin America on November 12, 2009, Bloomberg News said that Gerdau SA said that it plans to invest BRL9.5 billion (US$5.5 billion) in the next five years as global demand rebounds. The report related that Chief Executive Officer Andre Gerdau Johannpeter said that the company is stepping up spending amid forecasts that a demand rebound will continue into the fourth quarter and 2010. Gerdau will resume investments in a 1.5 million-ton-a-year iron-ore mine in Brazil that was delayed because of the global economic slowdown, he added. About Gerdau SA Headquartered in Porto Alegre, Brazil, Gerdau S.A. -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As of June 19, 2009, the company continues to carry Moody's Ba1 LT Corp Family rating and Ba1 Senior Unsecured Debt Ratings. * BRAZIL: 3rd Qtr GDP Grew at "Chinese Pace", President Says ------------------------------------------------------------ Helder Marinho and Iuri Dantas at Bloomberg News report that President Luiz Inacio Lula da Silva said that Brazil’s economy is expanding at a “Chinese pace” and quarter-on-quarter growth may have quickened to an annualized rate of about 9% in the July to September period. The report relates that President Lula, in his weekly newspaper column, said the country’s US$233 billion of international reserves have brought stability that guarantees funding for investment in social programs and infrastructure. “Among several indicators that resulted from this highly favorable scenario, I can cite the surplus, in a year of crisis, of 1 million government-registered jobs and third-quarter gross domestic product, which should register growth at a Chinese pace of about 9 percent,” President Lula wrote in a column obtained by the news agency. Brazil is scheduled to report third-quarter gross domestic product on Dec. 10. According to the report, Brazil’s economy emerged from its first recession since 2003 in the second quarter, expanding 1.9% from the previous three months, for an annualized pace of 7.6%. The report relates that Brazil’s GDP contracted 1.2% in the second quarter compared with the same quarter in 2008, while China’s economy expanded 8.9% in the third quarter from the same period a year ago. Bloomberg News notes that growth in China has averaged 9.2% this decade from 3.6% annual average rate in Brazil. Finance Minister Guido Mantega, the report relates, said that the country’s economy may be able to achieve annual growth of between 6% and 6.5% through 2017. "While Brazil’s recovery may gain momentum in the coming months, it’s a far cry from Chinese growth rates,” the report quoted Douglas Smith, chief economist for the Americas at Standard Chartered Bank in New York, as saying. If Chinese-like growth rates ever arose in Brazil it would provoke a return of inflation, he added “There’s no way Lula could be talking about that kind of growth. It’s not sustainable,” in Brazil’s case, Mr. Smith said, the report notes. Bloomberg News, citing the latest median estimate among 100 economists surveyed by the central bank, adds that as the government and central bank pull back on fiscal and monetary stimulus measures, Brazil should grow 5% next year, compared with 0.2% for 2009. * * * 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 ========================== CASTLEHILL LIMITED: Commences Wind-Up Proceedings ------------------------------------------------- At an extraordinary general meeting held on October 7, 2009, the shareholders of Castlehill Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by November 10, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands COPENHAGEN CAPITAL: Members Receive Wind-Up Report -------------------------------------------------- On November 12, 2009, the members of Copenhagen Capital Opportunities General Partner Limited received the liquidator's report on the company's wind-up proceedings and property disposal. 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 COPENHAGEN CAPITAL: Members Receive Wind-Up Report -------------------------------------------------- On November 12, 2009, the members of Copenhagen Capital Opportunities International Fund received the liquidator's report on the company's wind-up proceedings and property disposal. 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 COPENHAGEN CAPITAL: Members Receive Wind-Up Report -------------------------------------------------- On November 12, 2009, the members of Copenhagen Capital Opportunities Master Fund received the liquidator's report on the company's wind-up proceedings and property disposal. 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 DIALOGUE DIRECTORS: Creditors' Proofs of Debt Due on November 26 ---------------------------------------------------------------- The creditors of Dialogue Directors Limited are required to file their proofs of debt by November 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on October 5, 2009. The company's liquidator is: Darren Riley c/o Ellen J. Christian Telephone: 345 945 9208 Facsimile: 345 945 9210 c/o BNP Paribas Bank & Trust Cayman Limited 3rd Floor Royal Bank House, Shedden Road George Town, Grand Cayman GOROH LTD: Commences Wind-Up Proceedings ---------------------------------------- At an extraordinary general meeting held on October 7, 2009, the shareholders of Goroh Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by November 10, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands LESLI LIMITED: Commences Wind-Up Proceedings -------------------------------------------- At an extraordinary general meeting held on October 7, 2009, the shareholders of Lesli Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by November 10, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands MARLEBONE INVESTMENTS: Commences Wind-Up Proceedings ---------------------------------------------------- At an extraordinary general meeting held on October 7, 2009, the shareholders of Marlebone Investments Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by November 10, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands NITE CAPITAL: Creditors' Proofs of Debt Due on November 25 ---------------------------------------------------------- The creditors of Nite Capital Offshore Ltd. are required to file their proofs of debt by November 25, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on October 5, 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 NITE CAPITAL: Creditors' Proofs of Debt Due on November 25 ---------------------------------------------------------- The creditors of Nite Capital Master, Ltd. are required to file their proofs of debt by November 25, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on October 5, 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 PICCADILLY CAYMAN: Creditors' Proofs of Debt Due on November 26 --------------------------------------------------------------- The creditors of Piccadilly Cayman Limited are required to file their proofs of debt by November 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on October 5, 2009. The company's liquidator is: Darren Riley c/o Ellen J. Christian Telephone: 345 945 9208 Facsimile: 345 945 9210 c/o BNP Paribas Bank & Trust Cayman Limited 3rd Floor Royal Bank House, Shedden Road George Town, Grand Cayman PICCADILLY DIRECTORS: Creditors' Proofs of Debt Due on November 26 ------------------------------------------------------------------ The creditors of Piccadilly Directors Limited are required to file their proofs of debt by November 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on October 5, 2009. The company's liquidator is: Darren Riley c/o Ellen J. Christian Telephone: 345 945 9208 Facsimile: 345 945 9210 c/o BNP Paribas Bank & Trust Cayman Limited 3rd Floor Royal Bank House, Shedden Road George Town, Grand Cayman POST DISTRESSED: Creditors' Proofs of Debt Due on November 25 ------------------------------------------------------------- The creditors of Post Distressed Offshore Fund II, Ltd. are required to file their proofs of debt by November 25, 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 PREMIUM PORTFOLIO: Creditors' Proofs of Debt Due on November 24 --------------------------------------------------------------- The creditors of Premium Portfolio Limited are required to file their proofs of debt by November 24, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 9, 2009. The company's liquidator is: Maricorp Services Ltd 31 The Strand, P.O. Box 2075 Grand Cayman KY1-1105 PRINCESS ROSE: Creditors' Proofs of Debt Due on January 5 --------------------------------------------------------- The creditors of Princess Rose Co. Ltd. are required to file their proofs of debt by January 5, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on October 5, 2009. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands PROMETHEAN I: Creditors' Proofs of Debt Due on November 26 ---------------------------------------------------------- The creditors of Promethean I Offshore Ltd are required to file their proofs of debt by November 26, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 30, 2009. The company's liquidator is: Maricorp Services Ltd J. Andrew Murray Telephone: 345 949 9710 Facsimile: 345 945 2188 31 The Strand, P O Box 2075 Grand Cayman KY1-1105 RIGHT CHANCE: Commences Wind-Up Proceedings ------------------------------------------- At an extraordinary general meeting held on October 7, 2009, the shareholders of Right Chance Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by November 10, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands SESAME LIMITED: Commences Wind-Up Proceedings --------------------------------------------- At an extraordinary general meeting held on October 7, 2009, the shareholders of Sesame Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by November 10, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands SUCCESSOR I: Creditors' Proofs of Debt Due on November 27 --------------------------------------------------------- The creditors of Successor I Ltd are required to file their proofs of debt by November 27, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on October 7, 2009. The company's liquidators are: Scott Aitken Connan Hill P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands c/o Sylvia Lewis Telephone: 949-7755 Facsimile: 949-7634 P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands TOSCANINI LIMITED: Commences Wind-Up Proceedings ------------------------------------------------ At an extraordinary general meeting held on October 7, 2009, the shareholders of Toscanini Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by November 10, 2009, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands ========= C H I L E ========= EMPRESA ELECTRICA: Shareholders Agrees to Combine Assets to Firm ---------------------------------------------------------------- Nathan Gill at Bloomberg News reports that the controlling shareholders of Empresa Electrica Del Norte Grande S.A. (Edelnor) agreed to combine their northern Chilean energy assets into the company. According to the report, citing a November 6 statement, Codelco said it reached an agreement with Paris-based GDF Suez to merge their northern Chilean energy assets into Edelnor. The report relates that GDF Suez will pay Codelco US$172.5 million to acquire a controlling interest of 52.4% in Edelnor which will control about half of the power capacity on Chile’s northern grid. “The current share price doesn’t completely reflect the value of minority participation in the combined company,” William Baeza, an analyst at Euroamerica Corredores de Bolsa SA, wrote today in note to clients obtained by the news agency. “We still see space for Edelnor’s share price to continue rising,” Mr. Baeza added. About Edelnor Heaquartered in Chile, Empresa Electrica Del Norte Grande S.A. (aka Edelnor) -- http://www.edelnor.cl/-- is principally engaged in the generation, transportation, distribution and supply of electricity. Edelnor is also engaged in the purchase, transportation and sale of all types of fuel: liquid, solid and gaseous. The company offers advising services in engineering and management, as well as maintenance and repair of electronic systems. * * * As reported in the Troubled Company Reporter-Latin America on November 17, 2009, Standard & Poor's Ratings Services revised its CreditWatch implications on Edelnor's 'BB-' ratings to developing from positive. The CreditWatch listing follows the company's recent announcements that the main shareholders, Suez-Tractebel and Codelco (A/Stable/--), agreed to merge their stakes in several assets in Chilean electricity generation and gas transportation sectors. =============== C O L O M B I A =============== ECOPETROL SA: Government Rules Out Sale of Firm's Shares -------------------------------------------------------- Colombia Finance Minister Oscar Ivan Zuluaga said the second phase of Ecopetrol SA's capitalization must be procured before considering the sale of up to 10% of the shares the state owns in the company, Poder360.com reports. According to the report, Mr. Zuluaga said that so far this precludes the possibility of submitting a bill to sell up to 10% of the shares the nation has in Ecopetrol SA. The report relates that Mr. Zuluaga maintained that the second phase of the oil company’s capitalization must first be undertaken to then consider selling up to 10% of shares the state has in the company and added that, in the best case scenario, it would occur in 2011. Mr. Zuluaga, Poder360.com notes, also said that the government's priority right now is focused on the adoption of tax reform. These statements came after President Alvaro Uribe disclosed that the government will sell another 10% of Ecopetrol shares. As reported in the Troubled Company Reporter-Latin America on September 24, 2009, Bloomberg News said that Colombia may sell as much as 10% of its stake in Ecopetrol SA to help fund COP10 trillion (US$5.2 billion) of highway spending. The report related Finance Minister Oscar Ivan Zuluaga said that Colombia is likely to sell the stake “gradually” between 2011 and 2014, depending on the speed of Colombia’s economic recovery. Selling the shares would prevent Colombia from having to increase debt to fund the investments, Mr. Zuluaga added. 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. Colombia owns 90% of 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. According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. As reported in the Troubled Company Reporter-Latin America on September 7, 2009, Fitch Ratings affirmed Colombia's sovereign ratings: -- Long-term foreign currency Issuer Default Rating at 'BB+'; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BBB-'; -- Outstanding senior unsecured debt at 'BB+'; -- Country ceiling at 'BBB-'. ================================== D O M I N I C A N R E P U B L I C ================================== * DOMINICAN REPUBLIC: World Bank OKs US$300 Million Loan -------------------------------------------------------- The World Bank Board of Directors approved two loans totaling US$300 million to support reforms aimed at improving results in social sectors -- mainly social protection, education and health -- as well as the quality and efficiency of public spending, while mitigating the impact of the global downturn on Dominican Republic’s public finances. “These operations will contribute to the Government’s efforts to reactivate the economy by helping to cover the fiscal gap for this year and by raising public investment, according to what is established in the budget approved by the National Congress,” said Vicente Bengoa, the Dominican Republic Minister of Finance. The Public Finance and Social Sector and the First Performance and Accountability of Social Sectors Development Policy Loans are part of the World Bank’s 2010-2013 Country Partnership Strategy for the Dominican Republic and will support Government reforms in three main policy areas: quality and efficiency of public spending, fiscal sustainability, and social protection. “The projects will help reduce the country’s vulnerability to future shocks by minimizing inefficient subsidies, recovering costs in the energy sector and improving tax and revenue administration,” said Yvonne Tsikata, World Bank Director for the Caribbean. “In addition, these projects will provide poor families better access to education, health and nutrition while enhancing results, transparency and accountability in social spending,” she added. “These new operations are aimed at supporting a series of reforms very necessary to promote greater competitiveness levels, foster a results-based public administration and protect the poorest citizens during this international crisis,” said Roby Senderowitsch, World Bank Country Manager for the Dominican Republic. “It is urgent for the Dominican Republic to preserve the human capital of the poor, especially through the protection of education and primary health care services and the Solidaridad Program, which already covers about two million people,” he added. The two loans of US$150 million each will be directly disbursed to the national budget in one single tranche. The loans are fixed-spread, payable in 23 years, including a 12.5-year grace period. * * * As reported in the Troubled Company Reporter-Latin America on October 26, 2009, Fitch Ratings affirmed the Dominican Republic's ratings: -- Foreign currency Issuer Default Rating at 'B'; -- Local currency IDR at 'B'; -- Country ceiling at 'B+'; -- Short-term foreign currency IDR at 'B'; -- Senior unsecured debt at 'B'. * DOMINICAN REPUBLIC: Economy Badly Affected by Crisis, IMF Says ---------------------------------------------------------------- The Executive Board of the International Monetary Fund concluded on November 9, 2009, the 2009 Article IV consultation with the Dominican Republic.1 Background The Dominican economy has been adversely affected by the global crisis. Output has been below potential as real Gross Domestic Product growth is decelerating rapidly from over 5% in 2008 to an estimated 0.5 to 1.5% in 2009. Inflation has fallen rapidly to -0.3% year-over-year in October 2009 as the supply shocks of last year have unwound. The external current account deficit is estimated to be around 6 percent of GDP in 2009, about 4 percentage points lower than in 2008, as imports have fallen more than exports, tourism and remittances. The banking system has withstood the global crisis and remains liquid, well-capitalized and profitable. Monetary authorities have responded to the crisis in a timely manner, but fiscal policy has been constrained by a lack of external financing. The Central Bank lowered its policy interest rate by 550 basis points to 4 percent during 2009, and reserve requirements were also lowered by 250 basis points to 17.5%. Following a relaxed stance in 2008, fiscal policy has been tight in the first 3 quarters of 2009, as a decline in tax revenues of 10% to September (with respect to January–September 2008) was met with a larger decline in expenditures. The deficit of the consolidated public sector was about 2% of GDP during the first three quarters of 2009, or around 1 percentage point of GDP lower than during the first three quarters of 2008. Structural impediments in the fiscal and electricity sector put a heavy burden on public finances. There is a risk that the decline in tax revenues observed in 2008-09 (of more than 10%) may be partly related to undue use of tax exemptions contained in competitiveness laws. Serious structural weaknesses continue to leave the state-owned electricity distribution companies with large losses. Untargeted subsidies to cover these losses remain a drain on public finances, absorbing over one percent of GDP in 2009. Notwithstanding these subsidies, the quality of service to citizens in the electricity sector remains very poor. The authorities’ program aims to limit the effects of the global slowdown on the economy while establishing the conditions for robust and sustainable growth. The program is expected to catalyze financing from multilaterals for the conduct of a countercyclical fiscal policy in the short term, while monetary policy will remain flexible to respond to the liquidity needs of the economy. The medium-term program calls for a gradual fiscal consolidation to ensure sustainability as the economic activity rebounds. International reserves will also be increased to comfortable levels as the exchange rate is gradually made more flexible and the Central Bank adopts a full-fledged inflation targeting regime in the medium-term. The authorities’ program also aims to address fiscal impediments, especially in the area of revenue collection, and to eliminate untargeted electricity subsidies. The authorities' economic program is supported by a Stand-By Arrangement with the IMF, which was also approved by the Executive Board on November 9 (see Press Release 09/393). Executive Board Assessment Executive Directors agreed with the thrust of the staff appraisal. They noted that the global economic recession has significantly weakened the Dominican economy, with growth declining markedly in 2009. Inflation has remained subdued and the current account deficit narrowed. Directors welcomed the authorities’ economic program, which aims at returning the economy to its high, sustainable growth path, through flexible, countercyclical policies in the short run, and pursuing over the medium term a fiscal consolidation strategy and an ambitious structural reform agenda. Directors supported the temporary fiscal stimulus in 2009-10, including the full play of automatic stabilizers, in light of well below potential output and as financing constraints are relieved. Fiscal policy could be relaxed as additional external financing is secured, targeting investment projects with high social returns while strengthening social safety nets. At the same time, Directors called on the authorities to follow through on their commitment to medium-term sustainability by shifting to a fiscal consolidation effort beginning in the second half of 2010. Work should start promptly on the planned structural measures, in particular improvements in tax administration, with Fund technical assistance, and on the elimination of untargeted electricity subsidies. The finalization and implementation of a comprehensive plan to address structural impediments in the electricity sector also remain a high priority. Directors welcomed the flexible implementation of monetary policy, with a timely shift to an accommodative stance in 2009 to stimulate economic activity. While this stance remains appropriate at present, Directors noted the limited scope for further reducing policy interest rates, as well as banks’ high liquidity preference. Directors encouraged the monetary authorities to remain vigilant and stand ready to withdraw liquidity gradually as private credit picks up. They commended the authorities for the progress in strengthening the central bank as an effective monetary authority, and stressed the importance of proceeding with the recapitalization plan to enhance its credibility further. Directors welcomed the monetary authorities’ commitment to a flexible exchange rate, and took note of the staff assessment that the real effective exchange rate is broadly in line with fundamentals. Given the relatively low level of international reserves, gradually introducing more flexibility within the current managed floating regime would help cushion potential external shocks. Consideration would also need to be given to continued strengthening of the monetary anchor, and Directors supported the authorities’ intention to move to an inflation- targeting regime once the supporting institutional framework has been put in place. Directors welcomed significant improvements in the regulation, supervision, and financial strength of the banking system. As a result of previous reforms, the Dominican banking system remains liquid, solvent, and profitable, despite the global credit crunch. Directors emphasized the need to continue monitoring the system closely and stand ready to take necessary measures to prevent systemic problems. They encouraged the authorities to advance the implementation of risk-based consolidated bank supervision and regulation, and to formulate strategies for domestic capital market development and debt management. * * * As reported in the Troubled Company Reporter-Latin America on October 26, 2009, Fitch Ratings affirmed the Dominican Republic's ratings: -- Foreign currency Issuer Default Rating at 'B'; -- Local currency IDR at 'B'; -- Country ceiling at 'B+'; -- Short-term foreign currency IDR at 'B'; -- Senior unsecured debt at 'B'. =========== M E X I C O =========== CONTROLADORA COMERCIAL: Still in Talks With Creditors ----------------------------------------------------- Peter Millard at Bloomberg News reports that Controladora Comercial Mexicana SAB said that it is still in talks with creditors and no agreement has been reached. According to the report, the company said that the market will be informed when there is an accord. As reported in the Troubled Company Reporter-Latin America on September 17, 2009, Bloomberg News said that Comerci proposed to its creditors the issuance of more than MXN19 billion (US$1.4 billion) in new borrowing as part of a restructuring. The new debt would be denominated in U.S. dollars and Mexican pesos and include some convertible bonds and “penny warrants,” the company said in an e-mailed statement obtained by the news agency. Reuters related that Comerci defaulted in October after massive derivatives losses sent its debt soaring above US$2 billion. On Oct. 9, 2008, Comerci filed for protection under Mexico's bankruptcy code Ley de Concurso Mercantil. About Comerci Controladora Comercial Mexicana SAB de CV a.k.a Comerci (MXK:COMERCIUBC) -- http://www.comerci.com.mx/-- is a Mexican holding company that, through its subsidiaries, operates several chains of retail stores, as well as a chain of family restaurants under the Restaurantes California brand name. In addition, CCM owns a 50% interest in the Costco de Mexico, a joint venture with Costco Wholesale Corporation, which operates a chain of membership warehouses in Mexico. The company's store chains include Comercial Mexicana, City Market, Mega, Bodega CM, Sumesa and Alprecio, among others. As of December 31, 2007, CCM operated 214 commercial units and 71 restaurants across Mexico. The company's retail outlets sell a variety of food items, including basic groceries and perishables, and non-food items, which include electronics, home furnishings, personal hygiene products and clothing. CCM is a parent of Tiendas Comercial Mexicana SA de CV, Tiendas Sumesa SA de CV, Restaurantes California SA de CV and Costco de Mexico SA de CV, among others. * * * As of June 19, 2009, the company continues to carry Moody's "D" LT Issuer Credit ratings. The company also continues to carry Fitch Ratings' "D" LT Issuer Default ratings. STATE OF VERACRUZ: Moody's Downgrades Issuer Rating to 'Ba2' ------------------------------------------------------------ Moody's de Mexico downgraded the issuer rating of the State of Veracruz to A2.mx (Mexico National Scale) from A1.mx. Moody's Investors Service downgraded the issuer rating of the State of Veracruz to Ba2 (Global Scale, local currency) from Ba1. At the same time the issuer ratings have been placed under review for possible downgrade. The rating action reflects three developments: 1) the misalignment of revenue and expenditure growth, leading to the recording of cash financing requirements; 2) current borrowing plans that are expected to trigger increases in debt and debt servicing levels above the median levels for Ba rated Mexican states and 3) a weakening of the state's liquidity position in 2009. Between 2004 and 2008, Veracruz registered cash financing requirements that averaged -3.4% of total revenues, owing to the misalignment of revenue and expenditure growth. Moody's anticipates that the current economic environment will exert additional pressure on financial results in 2009 and 2010, via cyclical reductions in the pool of transfers available for states and slower own-source revenue growth. Given Veracruz´s high dependence on federal transfers, coupled with the state's intention to maintain its current capital expenditure program, fiscal challenges to rebalance its financial results over the medium term remain significant. As a result of the expected cash financing requirements in 2009, the state is planning to issue new debt of MXN6.8 billion in the near term. As a result of this planned issuance, Moody's estimates that net direct and indirect debt may increase to roughly 22.0% of total revenues in 2009, from 10.6% in 2008. Debt service is expected to grow from 0.7% of total revenue in 2008, reflecting limited initial principal payments under current debt obligations, to roughly 3.0% in 2010. Although these debt and debt servicing metrics remain manageable within Veracruz's current financial framework, they are expected to exceed the median levels for Ba-rated Mexican states. While Veracruz maintained modest liquidity levels in recent years, the state's third quarter results in 2009 indicate a sharp deterioration. In the third quarter of 2009, net working capital (measuring current assets minus current liabilities) decreased to a negative MXN919 million (-1.4% of total 2008 expenditures), from a positive MXN925 million at the end of 2008 (1.4%). This weakening reflects, predominantly, a rapid increase in accounts payable and constitutes a significant credit challenge. The placing of the issuer ratings under review for possible downgrade reflects downside risks related to greater than expected cash financing requirements and potential refinancing risk. Accordingly, the review will focus on an assessment of expected adjustments to the state's fiscal policy strategy and the extent to which these adjustments redress fiscal balances on a forward looking basis. At the same time, the review will also assess risks related to the potential triggering of an early amortization clause in the state's MXN6.8 billion bond issue (100% of the state's current direct debt). The early amortization clause could be triggered if further downward actions are taken on the rating of the transaction, which would expose the state to significant refinancing risk in the current tight credit market. Moody's will monitor developments and conclude its review by mid February 2010. The last rating action with respect to the State of Veracruz was taken on November 14, 2006, when A1.mx (Mexico National Scale Rating) and Ba1 (Global Scale, Local Currency) issuer ratings were affirmed. * MEXICO: To Support Private Enterprises with IDB Credit Line ------------------------------------------------------------- A first operation of US$301 million to support small and medium enterprises in the oil industry and projects to reduce greenhouse gas emissions in the oil sector Mexico will make its small-and mid-sized enterprises in the oil industry’s value chain more competitive by channeling medium- and long-term financing with a US$301 million loan from the Inter- American Development Bank. This is the first operation under a US$1.2 billion conditional credit line for investment projects which seeks to fund productive investment by the private sector. The initial loan approved by the Bank's Board of Directors was extended to Nacional Financiera, a credit institution established in 1934 to promote savings and investment and channel financial and technical support for Mexico's industrial and economic development. The operation seeks to leverage the critical importance of the oil sector in Mexico, its largest industry representing nearly 5% of GDP. The aim is to promote SMEs development and investment, as a public policy response to the requirements of the new Petroleos Mexicanos Act of November 29, 2008. It also complements the Government’s strategies and commitments to promote linkages among suppliers and larger companies as a means to develop SMEs. The Bank's funds come at a time when the international financial crisis and the consequences of the influenza outbreak have dealt a major blow to credit access, especially for SMEs, which generate over 50% of Mexico's gross domestic product and provide nearly 75% of all jobs. In addition to helping small suppliers and contractors in the oil industry's value chain, NAFIN will also finance private projects to increase energy efficiency and reduce greenhouse gas emissions associated with fossil fuels production, under the National Strategy on Climate Change. Expected results by end 2012 include: support an increase in the domestic content of oil industry suppliers from 35 to 35%; 150 new medium- and long-term annual loans approved using NAFIN lines to oil sector SMEs; $125 million in medium- and long-term annual loans approved for SMEs; and GHG emissions reductions of 100,000 tons of carbon dioxide equivalent. The loan is for a 25-year term, including a five-year grace period, and carries a variable interest rate based on Libor. Subsequent operations under the CCLIP will be available for both NAFIN and BANCOMEXT, the national development bank that supports SME’s involved in the export sector. =========== P A N A M A =========== PANAMA: Fitch Assigns 'BB+' Rating on US$1 Bil. Global Bonds ------------------------------------------------------------ Fitch Ratings has assigned a 'BB+' rating to the Republic of Panama's US$1 billion global bond issuance maturing in January 2020 (5.2% coupon). The rating is in line with Panama's Long-term Foreign Currency Issuer Default Rating of 'BB+' with a Positive Rating Outlook. The proceeds will go toward refinancing domestic public debt. "In spite of a cyclical downturn, Panama's macroeconomic and structural strengths continue to set it apart from sovereigns rated in the 'BB-', 'BB', and 'BB+' categories," said Theresa Paiz Fredel, Senior Director at Fitch Ratings. "This has contributed to the convergence of per capita income with that of low investment grade sovereigns." Official dollarization, a stable financial system, low public sector debt service needs as well as the government's considerable financial and land assets support the sovereign's 'BB+' IDR. Furthermore, dollarization underpins an established track record of macroeconomic stability unrivaled by sub-investment grade emerging markets, as illustrated by an extended period of high growth in conjunction with single-digit inflation. Panama's main credit weakness remains its high level of government debt, although key public debt metrics have been improving at a steady pace over the past five years. "The recent approval of modifications to Panama's tax code in the midst of the worst economic slowdown since 2001 sends a positive signal about the government's commitment to sustainable fiscal policies and bodes well for Panama's creditworthiness," added Ms. Fredel. Furthermore, liability management operations are expected to reduce Panama's debt service burden over Fitch's rating horizon without increasing gross government debt. Continued growth momentum and resilience of Panama's macroeconomic policy framework in the context of the current global economic and financial crisis could be positive for creditworthiness. Given the small size of Panama's economy, its vulnerability to external shocks and rigidity in public finances, a sustained reduction in the government's debt burden over the medium term could also benefit creditworthiness. ================= V E N E Z U E L A ================= * VENEZUELA: 2009 Exports to U.S. Fall by 60% --------------------------------------------- Venezuela's exports to the United States have dropped 60.4% so far this year, due largely to lower oil prices, The Associated Press reports. According to The AP, citing a report by The Venezuelan-American Commerce and Industry Chamber, trade between the two countries reached US$20.3 billion between January and September, compared to US$51.4 billion during the first nine months of 2008. The report relates that oil sales reached US$19.5 billion, about 96% of total commerce. The AP notes that the sharp drop in trade is a result of lower petroleum prices on the international market following historically high prices last year. The United States is Venezuela's No. 1 trade partner. * * * 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. =============== X X X X X X X X =============== * LATAM: Inter-American Discusses Impact of Water Crisis -------------------------------------------------------- Latin America is facing multiple water crises with far-reaching consequences for health, food security, renewable energy sources and export competitiveness, Inter-American Development Bank President Luis Alberto Moreno said today. “In Latin America, water is more intimately linked to development than any other region of the world,” Mr. Moreno said during a multimedia presentation, Latin American Solutions to the Water and Sanitation Crisis, made for the first time before the Development Congress of the International Water Association, which is being held here Nov. 15 to 18. The cross-sector importance of water in Latin America has become dramatically more evident in recent years. Droughts of historic proportions have caused electricity blackouts, crop losses, starvation and water rationing in countries as diverse as Argentina, Brazil, Guatemala, Venezuela and Mexico. Nicaragua and El Salvador were reeling from the impact of Hurricane Ida last week, underscoring the potential for damage from weather-related disasters, which scientists say may become more frequent and more severe due to global warming. Andean glaciers, which supply 70 million persons with water, have shrunk by 30% over the past three decades. These glaciers are likely to disappear by 2030. Even though Latin America is in a position to meet the United Nations Millennium Development Goals for access to safe water, around 85 million persons in this region still lack a water connection to their homes and 110 million lack access to proper sewage. Almost 38,000 children die per year of intestinal diseases attributable to contaminated water. Moreno’s presentation coincided with the opening of a food security summit of the Food and Agriculture Organization in Rome, where delegates are promoting the goal of increasing food production by 50% over the next 15 years. In December, countries will discuss ways to tackle climate change in a UN summit in Copenhagen. “In Latin America, all these issues converge around water,” Moreno said. Comparative Advantage While water management poses huge challenges, this resource represents a competitive advantage for the Latin American and Caribbean economies, Mr. Moreno said. The region has 8% of the world’s population but holds 31 percent of its fresh water reserves. Water provides a full 68% of the electricity generated in the region, compared 16 percent on average in other parts of the globe. “This hydro advantage does not manifest itself solely in electricity,” Mr. Moreno said. “We all know that Latin America is one of the world’s major producers of grains. Still, few understand that we have specialized in foods that require large quantities of water.” The region contributes 60% of the global exports of soybeans, 51% of sugar exports and 50% of beef exports. Latin America has an enormous untapped potential to produce even more, since only one percent of its water resources are used for agricultural production, compared with 53 percent in the Middle East and North Africa. The IDB is working with several governments to create climate change mitigation plans and help build infrastructure that can withstand more inclement weather. But in the short term, Mr. Moreno called for a renewed effort to close the gap in the water and sanitation coverage. “The question today is not how we are going to guarantee these services to 100 percent of the population,” he said, “but how long we are going to take to get it done.” Mr. Moreno said cities like Monterrey in Mexico, Medellin in Colombia, Montero in Bolivia and Sao Paulo in Brazil produced successful models that showed that public, private and mixed capital operators have come up with innovative ways to improve water access sustainably. “Some say that there are only mutually exclusive alternatives in the water debate,” Mr. Moreno said. “Private sector versus public sector. Subsidies versus market prices.” “At the IDB we do not share that polarized and conflictive view of water,” he added. “We have learned that, in this industry, success doesn’t depend on an ideological option or a specific business model.” Mr. Moreno recognized that the investments needed to close the coverage gap exceed US$50 billion. For this, the IDB in 2007 launched its Water and Sanitation initiative “to give the sector a boost.” * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ *********** 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 * * *