/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/091204.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, December 4, 2009, Vol. 10, No. 240 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: U.S. Seeks Names of American Clients A R G E N T I N A ERC LATINOAMERICANA: Creditors' Proofs of Debt Due on April 1 SISTEMAS ESTRUCTURALES: Creditors' Proofs of Debt Due on April 6 UNIPRES SERVICIOS: Creditors' Proofs of Debt Due on February 12 TELECOM ARGENTINA: To Host Investor Event at NYSE on December 9 B A R B A D O S GRANTLEY ADAMS: 23% of Workforce Walked Out From Job B E R M U D A BELGRAVIA LIMITED: Creditors' Proofs of Debt Due on December 9 BELGRAVIA LIMITED: Member to Receive Wind-Up Report on December 30 BW GROUP: Moody's Assigns Corporate Family Rating at 'Ba1' KOCH G/P 1: Creditors' Proofs of Debt Due on December 24 KOCH G/P 1: Member to Receive Wind-Up Report on December 30 MARLEW COMPANY: Creditors' Proofs of Debt Due on December 9 MARLEW COMPANY: Member to Receive Wind-Up Report on December 30 PEMBROKE B737-5001: Creditors' Proofs of Debt Due on December 9 PEMBROKE B737-5001: Members' Final Meeting Set for December 30 PEMBROKE B737-7004: Creditors' Proofs of Debt Due on December 9 PEMBROKE B737-7004: Members' Final Meeting Set for December 30 PEMBROKE B737-7005: Creditors' Proofs of Debt Due on December 9 PEMBROKE B737-7005: Members' Final Meeting Set for December 30 PEMBROKE B737-7006: Creditors' Proofs of Debt Due on December 9 PEMBROKE B737-7006: Members' Final Meeting Set for December 30 VALIDUS HOLDINGS: Talbot Unit Taps 2 Underwriters to Join Firm B R A Z I L BPN BRASIL: Fitch Downgrades National Long-Term Rating to 'BB' BROOKFIELD INCORPORACOES: To Raise BRL300MM From Debenture Issue CAMARGO CORREA: Equity Cut Cues Moody's Comment on 'Ba3' Rating LEHMAN BROTHERS: To Sell Brazilian Distressed Loans and Assets MINERVA SA: Moody's Assigns Corporate Family Rating at 'B3' C A Y M A N I S L A N D S AAI63 LTD: Members Receive Wind-Up Report AAI65 LTD: Members Receive Wind-Up Report ABSPOKE 2005-X: Members Receive Wind-Up Report ARCH POINT: Members to Hear Wind-Up Report on December 9 ARCH POINT: Members to Hear Wind-Up Report on December 9 ARCH POINT: Members to Hear Wind-Up Report on December 9 ARCH POINT: Members to Hear Wind-Up Report on December 9 ASPECT GLOBAL: Members Receive Wind-Up Report C.I. ORPHAN: Members to Hear Wind-Up Report on December 9 CAIXA CATALUNYA: Members Receive Wind-Up Report COAST PILOT: Members Receive Wind-Up Report COAST PIVOT: Members Receive Wind-Up Report CRYSTAL 2008-1: Members to Receive Wind-Up Report on December 9 CRYSTAL SPRINGS: Members Receive Wind-Up Report GEARS LTD: Members Receive Wind-Up Report GMSF FUNDING: Members Receive Wind-Up Report GOLDENTREE LETTRS: Members to Receive Wind-Up Report on December 9 HANGING GARDENS: Members Receive Wind-Up Report INTECH LIQUIDATION: Members Receive Wind-Up Report KAZKOMMERTS DPR: Members Receive Wind-Up Report KROKSTA: Members Receive Wind-Up Report KS GREENFIELDS: Members Receive Wind-Up Report LANSDOWNE EMERGING: Members Receive Wind-Up Report POLONIUS PORTFOLIO: Members Receive Wind-Up Report SIXTINA 6 FORTITUDE: Members Receive Wind-Up Report SIXTINA 7 MONTERREY: Members Receive Wind-Up Report SKYER I: Members Receive Wind-Up Report SLC SECURITIZATION: Members Receive Wind-Up Report SSV CAYMAN: Members to Receive Wind-Up Report on December 9 C H I L E * CHILE: IDB Invests Up to US$3.5 Million in AgroDesarrollo C O L O M B I A ECOPETROL SA: May Raise US$6.6 Billion From 2010 Share Sale J A M A I C A AIR JAMAICA: NCB to Provides US$1.3 Million Injection to Airline JAMAICAN URBAN: Sells Older Buses as Scrap Metals NATIONAL COMMERCIAL BANK: BCB Capital Managing Director Steps Down NATIONAL COMMERCIAL BANK: To Provide US$1.3MM to Air Jamaica NATIONAL COMMERCIAL: Fitch Junks Issuer Default Rating From 'B' SUGAR COMPANY: Minister Assures Divestment Talks "Not Stalled" M E X I C O CEMEX SAB: Expects Fourth-Quarter Loss From Australia Sale * Kamakura Reports Deterioration in Corporate Credit Quality T R I N I D A D & T O B A G O CL FINANCIAL: CLICO Insurance Closes Operations V E N E Z U E L A DELTA MUTUAL: Posts $426,600 Net Loss for September 30 Quarter - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: U.S. Seeks Names of American Clients ---------------------------------------------------- Kim Dixon at Reuters reports that the U.S. Justice Department asked the U.S. District Court for the Northern District of Texas in Dallas to let it serve a so-called "John Doe summons" on Stanford Group court-appointed receiver, Ralph Janvey. The report relates that the department asked for permission to seek the names of American clients of Robert Allen Stanford who may be hiding assets abroad to evade taxes. According to the report, George Clarke, Esq., a white collar tax attorney in Washington DC, said the Justice Department's request was another step in the government's effort to eradicate opportunities for U.S. taxpayers to hide assets offshore. "It should be a wake-up call for folks who thought that the enforcement action against UBS would be a one-hit wonder," the report quoted Mr. Clarke as saying. Reuters notes that Angela Shaw, founder of the Stanford Victims Coalition, representing some 6,000 Stanford investors, thought it unlikely the IRS would find wrongdoing, with many Stanford victims invested using retirement accounts. "Everyone is just so shocked; it seems ridiculous," the report quoted Ms. Shaw as saying. According to the report, in a declaration to the court, IRS agent Daniel Reeves cited interviews with two unnamed Stanford employees who said they left over concerns about "improprieties" at the firm, including failure to report foreign accounts. Reuters says that the government wants information from Janvey on any U.S. clients who had accounts through Stanford units from 2002 through 2008. 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 ================= ERC LATINOAMERICANA: Creditors' Proofs of Debt Due on April 1 ------------------------------------------------------------- The court-appointed trustee for Erc Latinoamericana S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until April 1, 2010. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 22 in Buenos Aires, with the assistance of Clerk No. 44, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Mario Leizerow Bouchard 644 Argentina SISTEMAS ESTRUCTURALES: Creditors' Proofs of Debt Due on April 6 ---------------------------------------------------------------- The court-appointed trustee for Sistemas Estructurales S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until April 6, 2010. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Hugo Hector Dogliani Av. Rivadavia 3944 Argentina UNIPRES SERVICIOS: Creditors' Proofs of Debt Due on February 12 --------------------------------------------------------------- The court-appointed trustee for Unipres Servicios Graficos S.A.'s reorganization proceedings, will be verifying creditors' proofs of claim until February 12, 2010. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 15 in Buenos Aires, with the assistance of Clerk No. 29, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Omar Lares Olavarria 1743 Argentina TELECOM ARGENTINA: To Host Investor Event at NYSE on December 9 --------------------------------------------------------------- Telecom Argentina S.A. will host a meeting at the New York Stock Exchange Euronext on Wednesday, December 9, 2009 in commemoration of the 15th Anniversary of the Company's Listing. The event will feature a presentation by Franco Bertone, Chief Executive Officer. Senior executives of the Company will also be present. Telecom Argentina Day will take place from 12:00 p.m. to 2:00 p.m. This event is by invitation only and space is limited. Those analysts or investors interested in attending the event must contact Maria Barona of i-advize Corporate Communications at (212) 406-3691 or via email at mbarona@i-advize.com. About Telecom Argentina Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone-related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. * * * As of June 30, 2009, the company continues to carry Standard and Poor's "B-" LT Foreign Issuer Credit rating and "B" LT Local Issuer Credit rating. The company also continues to carry Fitch ratings' "B" LT FC Issuer default rating; "B+" LT LC Issuer default rating; and "B" Senior Unsecured Debt rating =============== B A R B A D O S =============== GRANTLEY ADAMS: 23% of Workforce Walked Out From Job ---------------------------------------------------- Around 70 workers, representing 23% of the 300 total workforce, at the Grantley Adams International Airport walked out from their jobs for two hours on December 1, 2009, due to a dispute with the management, Nation News reports. According to the report, a delegation from the National Union of Public Workers held a brief meeting with the workers, which included personnel from security, maintenance and engineering, before heading into a meeting with GAIA management. NUPW industrial relation officer Caswell Franklyn and GAIA corporate communications specialist Keith Goddard told Nation News: "We were called in because of long-standing grievances which were not being addressed. We met with management and asked workers to go back to work in the meantime. We were able to get the airport management to realize how serious the workers were and we now have a framework and timetable to have the issues addressed. We are pleased with the outcome of the talks and also pleased to say there will be no victimization nor recrimination towards the workers." The report relates Mr. Goddard said the two sides had reached an understanding and agreed "to address the matters going forward in the short, medium and long term". ============= B E R M U D A ============= BELGRAVIA LIMITED: Creditors' Proofs of Debt Due on December 9 -------------------------------------------------------------- The creditors of Belgravia Limited are required to file their proofs of debt by December 9, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 24, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda BELGRAVIA LIMITED: Member to Receive Wind-Up Report on December 30 ------------------------------------------------------------------ The sole member of Belgravia Limited will receive, on December 30, 2009, at 9:30 a.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company commenced wind-up proceedings on November 24, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda BW GROUP: Moody's Assigns Corporate Family Rating at 'Ba1' ---------------------------------------------------------- Moody's Investors Service has assigned a Ba1 corporate family rating to BW Group Ltd and withdrawn its Baa3 issuer rating. The senior unsecured debt rating for BW Group's bonds is downgraded to Ba1 from Baa3. The rating outlook is stable. This concludes the rating review that started on 9 September 2009. "The downgrade is driven by BW Group's slow progress in achieving its debt reduction target, compared to Moody's expectation," says Peter Choy, a Moody's Vice President and Senior Credit Officer. "This situation is exacerbated by BW Group's exposure to the highly volatile tanker and LPG transportation markets, which in Moody's view will not fully recover in the next 12-18 months." "In addition, its weak nine months' results for 2009 thus far suggest that BW Group's business model -- despite its 60%-80% fixed contract revenue -- is still not insulated from the volatility of the shipping markets, which is another driver for the downgrade," says Choy. "BW Group's credit metrics for the next 12-18 months -- adjusted debt/EBITDA of 7.1x-5.2x and EBIT/interest of 1.4x-1.3x -- are far weaker than its peers' in the Baa range." "On the other hand, its Ba1 rating is supported by the company's long track record in the shipping industry, fair segment diversity, conservative management, good fixed income coverage, strong liquidity and good financial flexibility, and the absence of high capital expenditures" adds Choy. The stable outlook reflects Moody's view that BW Group will maintain its strong liquidity position and gradually improve its debt leverage in the next two years by using free cash flow arising from some moderate improvements in freight rates in all the company's segments. Downward rating pressure could emerge upon further deterioration in the group's financial profile due to a material adverse change in market conditions or debt-funded acquisitions which could result in a worsening of BW Group's credit metrics to adjusted debt/EBITDA exceeding 5.5x-6.0x in 2010, or EBIT/interest below 1.25x for a prolonged period. A rating upgrade is unlikely in the next 12 months, given BW Group's relatively weak credit metrics. The last rating action was on 9 September 2009 when BW Group's issuer and debt ratings were placed under review for possible downgrade. BW Group, domiciled in Bermuda, is a diversified shipping group with operations in five key segments -- tankers, liquefied petroleum gas, liquefied natural gas, floating, production, storage and offloading vessels, and offshore technology. It operates a fleet of 95 vessels. BW is a privately held holding company, 93%-owned by the Sohmen family and 7% by HSBC. KOCH G/P 1: Creditors' Proofs of Debt Due on December 24 -------------------------------------------------------- The creditors of Koch G/P 1, Ltd. are required to file their proofs of debt by December 24, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 19, 2009. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda KOCH G/P 1: Member to Receive Wind-Up Report on December 30 ----------------------------------------------------------- The member of Koch G/P 1, Ltd. will receive, on December 30, 2009, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on November 19, 2009. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11, Bermuda MARLEW COMPANY: Creditors' Proofs of Debt Due on December 9 ----------------------------------------------------------- The creditors of Marlew Company Limited are required to file their proofs of debt by December 9, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 24, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda MARLEW COMPANY: Member to Receive Wind-Up Report on December 30 --------------------------------------------------------------- The sole member of Marlew Company Limited will receive, on December 30, 2009, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on November 24, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PEMBROKE B737-5001: Creditors' Proofs of Debt Due on December 9 --------------------------------------------------------------- The creditors of Pembroke B737-5001 Limited are required to file their proofs of debt by December 9, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PEMBROKE B737-5001: Members' Final Meeting Set for December 30 -------------------------------------------------------------- The members of Pembroke B737-5001 Limited will hold their final general meeting on December 30, 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 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PEMBROKE B737-7004: Creditors' Proofs of Debt Due on December 9 --------------------------------------------------------------- The creditors of Pembroke B737-7004 Limited are required to file their proofs of debt by December 9, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PEMBROKE B737-7004: Members' Final Meeting Set for December 30 -------------------------------------------------------------- The members of Pembroke B737-7004 Limited will hold their final general meeting on December 30, 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 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PEMBROKE B737-7005: Creditors' Proofs of Debt Due on December 9 --------------------------------------------------------------- The creditors of Pembroke B737-7005 Limited are required to file their proofs of debt by December 9, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PEMBROKE B737-7005: Members' Final Meeting Set for December 30 -------------------------------------------------------------- The members of Pembroke B737-7005 Limited will hold their final general meeting on December 30, 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 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PEMBROKE B737-7006: Creditors' Proofs of Debt Due on December 9 --------------------------------------------------------------- The creditors of Pembroke B737-7006 Limited are required to file their proofs of debt by December 9, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on November 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda PEMBROKE B737-7006: Members' Final Meeting Set for December 30 -------------------------------------------------------------- The members of Pembroke B737-7006 Limited will hold their final general meeting on December 30, 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 19, 2009. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda VALIDUS HOLDINGS: Talbot Unit Taps 2 Underwriters to Join Firm -------------------------------------------------------------- Validus Holdings, Ltd.'s wholly owned subsidiary, Talbot Underwriting, Ltd., is expanding its presence in the international Construction and Engineering market with the appointments of Simon Wilcock and Patrick Bravery, both highly experienced underwriters who had formerly been with Swiss Re in London. They will join Talbot.s Syndicate 1183 in 2010. Mr. Wilcock and Mr. Bravery will complement Talbot.s existing underwriting team and provide additional international experience and expertise in the international Construction and Engineering market, particularly in the disciplines of Erection all risks and Construction all risks. They will report to David Turner, Talbot.s Construction Global Practice Leader. Rupert Atkin, Talbot CEO, said: .These appointments further demonstrate Talbot.s commitment to expanding the capabilities of Syndicate 1183 in market sectors where activity and opportunity remain significant. This includes the Construction and Engineering market, where we have been strategically expanding our capabilities. The addition of these highly experienced underwriters enhances our leadership depth and reinforces our strong position in this market.. David Turner said: .We are delighted to welcome Simon and Pat to the Talbot team. We see significant long-term opportunity in the Construction and Engineering market, both in London and globally, and the addition of Simon and Pat strengthens our position to capture it.. Said Simon Wilcock: .Pat and I are looking forward to working with the Talbot team and helping to further expand and strengthen Talbot.s construction and engineering business. We were impressed by Talbot's commitment to delivering long-term sustainable growth in the Construction sector and their focus on providing exceptional service to brokers, producers and clients.. About Validus Holdings, Ltd. Validus Holdings Ltd. -- http://www.validusre.bm/-- is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd., and Talbot Holdings Ltd. Validus Re is a Bermuda based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd's insurance market through Syndicate 1183. * * * As reported in the Troubled Company Reporter-Latin America on September 11, 2009, A.M. Best Co. affirmed the ICR of "bbb-" and the indicative ratings for securities available under the shelf registration of "bbb-" on senior debt, "bb+" on subordinated debt and "bb" on the preferred stock of Validus Holdings, Ltd. (Validus Holdings). =========== B R A Z I L =========== BPN BRASIL: Fitch Downgrades National Long-Term Rating to 'BB' -------------------------------------------------------------- Fitch Ratings has downgraded these ratings of BPN Brasil Banco Multiplo S.A.: -- Long-Term National Rating to 'BB(bra)' from 'A+(bra)'; Outlook Stable; -- Short-Term National Rating to 'B(bra)' from 'F1(bra)'; -- Support Rating to '5' from '3'. In addition, Fitch has simultaneously removed all BPN Brasil's ratings from Rating Watch Evolving and assigned a Stable Outlook to its long-term National rating. On Oct. 23, 2009, Fitch withdrew all its ratings of BPN - Banco Portugues de Negocios S.A., which controls 80% of BPN Brasil. The other 20% is controlled by Banco Africano de Investimento, which Fitch does not rate. The rating downgrade reflects the uncertainties as to the support of BPN, which was nationalized by the government of Portugal (rated with an IDR of 'AA', with a Stable Outlook by Fitch) in November 2008, to BPN Brasil. As stated in Fitch's press release dated Nov. 11, 2008, change in the perceived willingness or capability of support, could lead to multiple-notch downgrading of BPN Brasil's ratings. Fitch believes that BPN Brasil has a weak capital structure, with a low capital ratio of 11.7% in September 2009, and clearly needs a capital injection to be able to grow its operations and absorb high loan loss provisions. Since the nationalization of the Portuguese bank, BPN, the parent bank, also shows the need for a capital injection, with net equity of negative EUR1.6 billion in March 2009. BPN is in the process of privatization, and its new controller has not carried out any capitalization so far; thus, Fitch believes that shareholders' support to BPN Brasil is possible, but not certain. With the aim of avoiding increased systemic risk in Portugal, BPN was nationalized by the government of Portugal after the bank recorded considerable losses with North American real estate assets and problems with accounting fraud. Fitch believes that the Portuguese government would sell, either partially or fully, its 100% stake in BPN's capital and shall review BPN Brasil's ratings in accordance with the development of such potential negotiation. However, Fitch understands that the privatization process tends to be slow, which makes it even more important for financial support to continue with the operations of BPN Brasil. Fitch shall review BPN Brasil's ratings after receiving concrete and final information on the changes in BPN and BPN Brasil's shareholding ownership. BPN Brasil's current National Ratings reflect its limited size with tight capitalization credit quality below its peers' average, low business diversification, and a BRL8.4 million loss in the period from January to September 2009. The bank's results have been negatively affected by low revenue generation, in view of the difficulty to grow its businesses as a result of tight liquidity and a scenario of increased delinquencies observed since the fourth quarter of 2008, mainly due to high credit provisions for small- and medium-sized enterprises. Founded in 1993, BPN was the main subsidiary of BPN Group and operates as a commercial bank, mainly for SMEs, essentially in Portugal. BPN Brasil was founded in 2003 and is also focused on SMEs. BROOKFIELD INCORPORACOES: To Raise BRL300MM From Debenture Issue ---------------------------------------------------------------- Brookfield Incorporacoes SA's board authorized the company to raise BRL300 million (US$174 million) from a non-convertible debenture issue, Rogerio Jelmayer at Dow Jones Newswires reports, citing a company statement. The report relates that Banco Santander has been hired to coordinate the operation. According to the report, Brookfield said that it could offer an extra lot of debentures if there is sufficient demand. So far this year, Dow Jones Newswires relates, local companies have raised BRL8.36 billion from issuing debentures, compared with BRL37.45 billion in the whole of last year. Brookfield Incorporacoes SA (former Brascan Residential Properties SA) is a Brazil-based company engaged in real estate sector. The Company is the developer of high-end and luxury residential buildings, houses, as well as office buildings in Sao Paulo and Rio de Janeiro metropolitan regions. Its operations include land acquisition, planning, construction, sales, financing, customer service, design, development and management of real estate projects targeted at mainstream, luxury homebuyers. The company's buildings include Reserva de Itauna, Edificio San Francisco, Chacara de Pinheiros, Time Square and Saint Tropez, among others. As of June 22, 2009, the Company had its name changed after the merger of three companies: Brascan Residential, Company and MB Engenharia. The company's major shareholder is Brookfield Asset Management. In July 2009, Companhia Energetica de Minas Gerais 95% interest in the company. * * * As reported in the Troubled Company Reporter-Latin America on September 1, 2009, Fitch Ratings has assigned the national long- term debt rating of 'A+(bra)' to the proposed first simple debentures issuance, not convertible into shares, of Brookfield Incorporacoes S.A. (Brookfield Incorporacoes), in the total amount of BRL100 million, with final maturity on September 1, 2013. The proceeds will be used for company general purposes. Fitch has already rated Brookfield Incorporacoes' foreign and local currency Issuer Default Ratings 'BB-', and national long-term rating 'A+ (bra)'. The Rating Outlook of the corporate ratings is Negative. CAMARGO CORREA: Equity Cut Cues Moody's Comment on 'Ba3' Rating --------------------------------------------------------------- Moody's Investors Service commented that the Ba3 global scale corporate family rating of Camargo Correa Cimentos S.A. , the Ba3 foreign currency ratings of all rated debt fully and unconditionally guaranteed by CCC, and their stable outlook would be unaffected by its potential equity reduction. Also, the Ba3 global scale corporate family rating and stable outlook of CCC's Argentine subsidiary Loma Negra C.I.A.S.A. would be unaffected. Moody's has withdrawn Loma Negra's corporate family rating for business reasons. Ratings unaffected are: Issuer: Camargo Correa Cimentos S.A. -- Ba3 Global Local Currency Corporate Family Rating Issuer: Caue Finance Limited -- US$150 million Senior Unsecured Guaranteed Notes Due 2015: Ba3 foreign currency rating Issuer: Loma Negra C.I.A.S.A. -- US$100 million Senior Unsecured Guaranteed Notes due 2013: Ba3 global local currency; Aa2.ar Argentine national scale foreign currency rating Rating withdrawn is: Issuer: Loma Negra C.I.A.S.A. -- Ba3 Global Local Currency Corporate Family Rating Outlook for all ratings is stable. The comment follows the announcement that CCC has requested consent from the holders of the rated guaranteed bonds for an equity reduction by approximately BRL1.56 billion resulting from the migration of its minority interests in Usinas Siderurgicas de Minas Gerais S.A. -- Usiminas (Baa3, outlook negative) and Itausa -- Investimentos Itau S.A. (unrated) to CCC's ultimate holding company Camargo Correa S.A. (unrated) at their respective book values (current market value is estimated at BRL3 billion). Moody's opinion considers that, if the equity reduction is approved by the bondholders, CCSA will become a new guarantor for all rated debt at CCC and Loma Negra. Moody's notes that, historically, Moody's has used pro-forma consolidated financial statements (excluding Usiminas' proportional consolidation) as the basis for CCC's corporate family rating, which Moody's believes accurately reflect the performance of its core activity and, ultimately, its creditworthiness. Moody's view is supported by the fact that, as a minority shareholder, CCC has no assured ability to access Usiminas' cash and cash flows. The equity reduction would result in a decline in CCC's equity and total assets of 46% and 35%, respectively, and in CCC no longer benefiting from equity income and dividends from those investments. Pro-forma for the equity reduction, overall credit metrics are expected to remain fairly strong for the Ba3 rating category. Based on June 30, 2009 pro-forma financials, consolidated leverage as measured by debt to capitalization is expected to increase moderately to about 34% from 25%, while return on assets based on EBITA to Total Assets is anticipated to improve to 14.6% from 9.6%. Debt protection metrics should deteriorate only modestly if dividends received from Usiminas and Itausa are excluded (BRL78 million in 2008 and BRL 64 million in 2009 year-to-date), with Retained Cash Flow (Cash From Operations before working capital changes less dividends) to Net Debt is anticipated to remain strong at 46% (down from 54%). Pro-forma Free Cash Flow, which has been weak due to elevated capex, would turn slightly negative. CCC's consolidated liquidity position would not be affected and remains adequate based on significant cash position and CCC's good access to the local debt market, including the Brazilian Development Bank -- BNDES, to refinance the BRL260 million senior unsecured debentures due on December 1, 2009. Long term debt maturities have a comfortable repayment schedule, as the next major maturity is Loma Negra's US$100 million rated notes due in 2013. Moody's view of adequate liquidity is also supported by the ample headroom under the company's financial covenants. CCC's aggressive investment plant to expand capacity in the coming years is expected to be largely long-term debt financed, causing a moderate increase in leverage, although Net Debt to EBITDA should remain below 3x in compliance with the management's policy, while preserving sound liquidity. The indentures of the rated foreign currency bonds issued by Caue Finance Limited and Loma Negra contain restrictive covenants preventing CCC, as the guarantor, from transferring assets. Thus, the equity reduction requires the consent by the simple majority of bondholders representing 50% plus one outstanding bond. In exchange for the bondholders' consent, CCC is offering a full and unconditional guarantee from CCSA. In Moody's view, the weakened debt-asset coverage protecting the holders of the affected notes deriving from the migration of the interests in Usiminas and Itausa is mitigated by the additional guarantee provided by CCSA, which reported total assets of BRL11 billion (US$5.6 billion) as of June 30, 2009, represented by investments in a broad range of companies with diversified activities. In 2008 and first half of 2009 CCSA received BRL248 million and BRL262 million, respectively, in dividends from its equity investments. CCC's Ba3 rating is supported by its good market position in the cement industry in Brazil and leadership position in the Argentine cement market, with a track record of healthy operating margins helped by a high level of vertical integration and by the increased (but still low) geographic diversity after the acquisition of Loma Negra in 2005, which somewhat reduced margin and cash flow volatility. CCC's relatively small size and low product and geographic diversity relative to global peers are constraining factors for the rating. The stable outlook reflects Moody's expectation of positive prospects for the cement industry in Brazil and Argentina supporting the maintenance of healthy debt protection metrics and adequate liquidity over the near term. Also, the stable outlook considers that CCC will prudently manage capex and dividends going forward, and will continue to be able to upstream dividends from Loma Negra, thus maintaining the bulk of the group's consolidated cash position in Brazil. CCC's ratings or outlook could be positively affected if Free Cash Flow to Total Adjusted Debt remains above 20% on a consistent basis and liquidity remains adequate, with non-restricted cash plus projected 12-month free cash flow comfortably covering short term debt maturities. However, given, the company's planned large capital expenditure plan, free cash flow will likely remain negative in the medium term. The ratings or outlook are likely to come under downward pressure if Total Adjusted Debt to EBITDA increases above 4.0x without an expected near-term improvement or if liquidity deteriorates, thus elevating refinancing risk. Increased restrictions on Loma Negra's ability to upstream dividends to CCC could also result in negative pressure on the rating. The last rating action on CCC and Loma Negra was on December 21, 2007, when Moody's confirmed CCC's Ba3 global local currency corporate family rating with stable outlook, and upgraded Loma Negra's global local currency corporate family rating to Ba3 from B2 reflecting Moody's expectation of strong support from CCC. Camargo Correa Cimentos S.A. is Brazil's third largest cement manufacturer by volume of cement sold, operating seven plants with total capacity of 8.3 million tons per year, in addition to producing some 2 million cubic meters per year of ready-mix concrete in thirty-five facilities. CCC controls Loma Negra C.I.A.S.A., the leading cement manufacturer in Argentina with 6.7 million tons of cement capacity in nine plants. CCC reported consolidated net revenues of about BRL 2.3 billion (US$1.1 billion converted by the average exchange rate) in the last twelve months ended on June 30, 2009. CCC is a full subsidiary of Camargo Correa S.A., a family-owned holding company for one of the largest Brazilian non-financial conglomerates, with net revenues of about BRL13.2 billion (approximately US$7.2 billion) in 2008 originated mainly from its engineering & construction, cement, footwear, energy and transportation businesses. CCSA regards the cement operations as a core business, which represented approximately 16% of the group's total sales and 20% of EBITDA in 2008. LEHMAN BROTHERS: To Sell Brazilian Distressed Loans and Assets -------------------------------------------------------------- Lehman Brothers Special Financing Inc. asks the U.S. Bankruptcy Court for the Southern District of New York for authority to waive interest payments from a non-bankrupt Brazilian affiliate named Libro Companhia Securitizadora de Creditos Financieros. Libro has a portfolio of US$438 million in non-performing loans, US$27 million in performing loans, and US$45 million in distressed assets. Under Brazilian law, interest payments to non-Brazilian residents, such as LBSF and LB I Group, are subject to withholding income tax at a rate of 15% payable at the time of remittance. Libro has not remitted interest payments to LBSF since September 30, 2008 and has never made interest payments to LB I Group. As a result, Libro has accrued a payable to the Brazilian taxing authority that would become due and payable upon the remittance of such interest payments to LBSF and LB I Group. The aggregate amount of the unpaid interest, including the amounts that Libro would be contractually required to gross-up to offset the effect of the Taxes, is approximately BRL97.1 million (US$56 million). Of that amount, BRL82.6 million (US$47.6 million) represents the accrued interest on the Notes and approximately BRL14.5 million (US$8.4 million) represents the Taxes that would have to be paid if the Accrued Interest were paid in full. LBSF and LB I Group Inc., a non-debtor affiliate of LBSF, have determined that they can best maximize the realization on the Notes and LBSF's equity interest in Libro through a sale process. Lehman is yet to select the so-called stalking-horse bidder to make the first bid at auction. In connection with their formulation of that process, both LBSF and LB I Group have determined that, as a consequence of the Taxes, any prospective purchaser in the forthcoming Libro Sale will require either payment, or a reserve for payment from the sale proceeds, of the Taxes, thereby reducing whatever remuneration LBSF and LB I Group might otherwise realize on the Notes. Accordingly, in order to maximize proceeds from the Libro Sale, LBSF and LB I Group intend to waive and forgive a portion of the Accrued Interest equal to BRL56.7 million (US$32.7 million). Of that total, LBSF will waive and forgive interest in the amount of BRL13.5 million (US$7.8 million), and LB I Group will waive and forgive interest in the amount of BRL43.2 million (US$24.9 million). LBSF will agree to compensate LB I Group for its waiver and forgiveness from a portion of the amounts, if any, that LBSF receives pursuant to the Libro Sale that are attributable to its equity interest. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MINERVA SA: Moody's Assigns Corporate Family Rating at 'B3' ----------------------------------------------------------- Moody's Investors Service assigned a B3 local currency Corporate Family Rating to Minerva S.A. and also a B3 foreign currency rating to its existing US$200 million senior unsecured notes due in 2017. This is the first time Moody's has assigned a rating for Minerva. The rating outlook is stable. Moody's assigned these ratings: -- Global local currency scale corporate family rating: B3 -- Guaranteed US$200 million in senior unsecured notes due 2017: B3 "Minerva's B3 rating reflects its small size, high leverage, raw material sourcing nearly exclusively in Brazil and less diversified product portfolio, as compared to domestic and internationally rated peers. The rating also reflects the company's weak and volatile funds from operations as well as its reliance on the export market, which may experience margin pressure if the Real remains strong" explained Moody's VP Senior Analyst, Soummo Mukherjee. "On the other hand, these negative factors are balanced by the company's position as one of the largest exporters of Brazilian beef, its ability to weather a financial and industry crisis that caused many of its peers to go into bankruptcy in the last 18 months, as well as the benefits of operating in Brazil, which enjoys good fundamentals in the beef industry," added Mukherjee. With an aggregate daily slaughter capacity of 6,600 heads of cattle at seven beef production facilities within six Brazilian states and Paraguay, Minerva is smaller and less diversified in terms of product offering, number of plants and states where it operates, than any other rated domestic or international beef processor. The company also relies heavily on the export market (68% of revenues for Q3 2009), making it more vulnerable to disruptions in the beef export markets and a stronger Real than many of its higher rated peers. Most of its exports consist of fresh beef sales, although the export of live cattle, which has historically produced better margins than the fresh beef division, is a growing segment that has accounted for more than 10% of total sales since 2008. The higher-margin valued-added processed products segment is still small and accounted for less than 2% of total sales at the end of Q3 2009. Processed product sales could grow to close to 25% of total revenues in 2011 according to Minerva's management, as a result of the company's investments in a joint-venture with Dawn Farm that focuses on the sale of value- added products from beef, poultry and pork products (including meatballs, pizza toppings, boneless chicken, ground beef and frozen hamburgers) for the food services segment. Minerva's leverage as measured by Total Debt to EBITDA (5.8x) and Net Debt to EBITDA (4.0x) for the last twelve months ending on September 30, 2009, is higher than most of its peers (all ratios according to Moody's standard definitions and adjustments). Leverage, however, could come down to the extent that the company is successful in growing its revenues and EBITDA based on the successful execution of the company's growth strategy and recovery of Brazilian beef export markets in 2010, allowing the company to increase exported volumes of fresh beef and live cattle. Minerva has traditionally been able to charge higher prices than its peers due to the benefits of the company's international sales offices and ability to highly customize its products depending on client needs. Going forward, the increased capillarity of its distribution network domestically and internationally, as well as the contributions from its joint-venture with Dawn Farms for the sale of higher and more stable-margin processed products, could boost revenues and earnings. The general corporate governance and transparency levels of Minerva have improved since the company became a listed company and issued its first public bonds in 2007. The company, however, remains 68% family owned and its board of directors consists of seven members, four of which are from the Vilela de Quieroz family, while three are independent. The company does not currently have a fiscal council or audit committee, although the company's by-laws provide for a non-permanent fiscal council to be installed at the request of the company's shareholders. The board of directors currently has no other committees. Minerva recently raised BRL159 million through an equity offering, thus improving its cash balance to BRL407 million as of September 30, 2009, versus total short-term debt of BRL417 million, of which BRL167 million is related to trade-finance lines that are normally rolled-over. The existing senior unsecured notes issued by Minerva Overseas Ltd is guaranteed by Minerva S.A. and therefore rated at the same level as Minerva's corporate family rating. However, if the level of secured debt or other debt deemed to have priority over unsecured debt (ACC/ACE, cash balances in off-shore reserve accounts related to pre-export facilities) increases significantly, the rating of the senior unsecured notes may come under pressure. The stable outlook is based on the expectation that Minerva will benefit from improved export volumes in 2010 as a result of a global economic recovery, which will allow the company to generate strong top-line and EBITDA growth and reduce its leverage. Minerva's rating or outlook would likely be downgraded if its liquidity deteriorates, if a strong Real causes operating margins to decline sharply or if Total Debt to EBITDA climbs above 8.0 times on an LTM basis (LTM September 2009 was 5.8 times) for two consecutive quarters. All ratios are adjusted according to Moody's standard analytic adjustments. The ratings or outlook could be upgraded if there is a trend towards greater diversification of Minerva's revenue and cash flow streams, with increased participation of processed products and reduced concentration of its export markets. Quantitatively, upward pressure could arise if Minerva is able to reduce Total Debt / EBITDA (according to Moody's standard adjustments) to below 5.0 times, EBITA to Gross Interest Expense above 1.5 times and CFO / Net Debt above 10% on a sustainable basis. Minerva, headquartered in Barretos, Sao Paulo, is one of Brazil's leaders in the production and sale of fresh beef, leather and live cattle. With net revenues of approximately US$1.6 billion and daily installed slaughter capacity of 6,600 heads per day, Minerva is the third largest Brazilian exporter of beef and beef byproducts and has seven beef production facilities within six Brazilian states and Paraguay. ========================== C A Y M A N I S L A N D S ========================== AAI63 LTD: Members Receive Wind-Up Report ----------------------------------------- On December 3, 2009, the members of AAI63 Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands AAI65 LTD: Members Receive Wind-Up Report ----------------------------------------- On December 3, 2009, the members of AAI65 Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ABSPOKE 2005-X: Members Receive Wind-Up Report ---------------------------------------------- On December 1, 2009, the members of ABSPOKE 2005-X, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ARCH POINT: Members to Hear Wind-Up Report on December 9 -------------------------------------------------------- The members of Arch Point Loan Funding IV Ltd. will receive, on December 9, 2009, at 10:40 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ARCH POINT: Members to Hear Wind-Up Report on December 9 -------------------------------------------------------- The members of Arch Point Loan Funding III Ltd. will receive, on December 9, 2009, at 10:40 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ARCH POINT: Members to Hear Wind-Up Report on December 9 -------------------------------------------------------- The members of Arch Point Loan Funding II Ltd. will receive, on December 9, 2009, at 10:40 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ARCH POINT: Members to Hear Wind-Up Report on December 9 -------------------------------------------------------- The members of Arch Point Loan Funding I Ltd. will receive, on December 9, 2009, at 10:40 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ASPECT GLOBAL: Members Receive Wind-Up Report --------------------------------------------- On December 3, 2009, the members of Aspect Global Currency Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands C.I. ORPHAN: Members to Hear Wind-Up Report on December 9 --------------------------------------------------------- The members of C.I. Orphan Limited will receive, on December 9, 2009, at 10:50 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CAIXA CATALUNYA: Members Receive Wind-Up Report ----------------------------------------------- On December 3, 2009, the members of Caixa Catalunya International Finance Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands COAST PILOT: Members Receive Wind-Up Report ------------------------------------------- On December 3, 2009, the members of Coast Pilot Strategy Investments Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands COAST PIVOT: Members Receive Wind-Up Report ------------------------------------------- On December 3, 2009, the members of Coast Pivot Strategy Investments Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CRYSTAL 2008-1: Members to Receive Wind-Up Report on December 9 --------------------------------------------------------------- The members of Crystal 2008-1, Ltd. will receive, on December 9, 2009, at 10:20 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CRYSTAL SPRINGS: Members Receive Wind-Up Report ----------------------------------------------- On December 3, 2009, the members of Crystal Springs CLO Funding Corporation received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GEARS LTD: Members Receive Wind-Up Report ----------------------------------------- On December 3, 2009, the members of Gears, Ltd. 2004-A received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GMSF FUNDING: Members Receive Wind-Up Report -------------------------------------------- On December 3, 2009, the members of GMSF Funding II Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GOLDENTREE LETTRS: Members to Receive Wind-Up Report on December 9 ------------------------------------------------------------------ The members of Goldentree Lettrs, Ltd. will receive, on December 9, 2009, at 10:20 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands HANGING GARDENS: Members Receive Wind-Up Report ----------------------------------------------- On December 3, 2009, the members of Hanging Gardens 1 Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands INTECH LIQUIDATION: Members Receive Wind-Up Report -------------------------------------------------- On December 3, 2009, the members of Intech Liquidation Master Fund I Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Steven O'Connor c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands KAZKOMMERTS DPR: Members Receive Wind-Up Report ----------------------------------------------- On December 3, 2009, the members of Kazkommerts DPR Company received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands KROKSTA: Members Receive Wind-Up Report --------------------------------------- On December 1, 2009, the members of Kroksta received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands KS GREENFIELDS: Members Receive Wind-Up Report ---------------------------------------------- On December 3, 2009, the members of KS Greenfields Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands LANSDOWNE EMERGING: Members Receive Wind-Up Report -------------------------------------------------- On December 3, 2009, the members of Lansdowne Emerging Markets Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands POLONIUS PORTFOLIO: Members Receive Wind-Up Report -------------------------------------------------- On December 1, 2009, the members of Polonius Portfolio Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SIXTINA 6 FORTITUDE: Members Receive Wind-Up Report --------------------------------------------------- On November 26, 2009, the members of Sixtina 6 Fortitude Pacific Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SIXTINA 7 MONTERREY: Members Receive Wind-Up Report --------------------------------------------------- On November 26, 2009, the members of Sixtina 7 Monterrey Pacific Master Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SKYER I: Members Receive Wind-Up Report --------------------------------------- On December 3, 2009, the members of Skyer I Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SLC SECURITIZATION: Members Receive Wind-Up Report -------------------------------------------------- On December 3, 2009, the members of SLC Securitization Corporation received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SSV CAYMAN: Members to Receive Wind-Up Report on December 9 ----------------------------------------------------------- The members of SSV Cayman Limited will receive, on December 9, 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: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ========= C H I L E ========= * CHILE: IDB Invests Up to US$3.5 Million in AgroDesarrollo ----------------------------------------------------------- The Inter-American Development Bank's Multilateral Investment Fund will make an equity investment of up to US$3.5 million in AgroDesarrollo, a fund that will back agribusiness entrepreneurs in rural Chile. AgroDesarrollo has obtained a credit line of up to US$21 million from CORFO, the Chilean development agency. The CORFO credit line will leverage AgroDesarrollo's equity commitments, allowing the fund to grow to US$28 million if it raises US$7 million in equity. Other investors include Chilean companies and individuals. The fund will be managed by Sembrador, a Chilean venture capital fund management company investing in agribusinesses. Sembrador was established in 2005 as a joint venture among partners that include Subsole, one of Chile's largest exporters of fresh fruit, and Activa, the private equity branch of Larrain Vial, Chile's leader in non-banking financial services. Sembrador's other agribusiness fund, FICA I, is fully invested. AgroDesarrollo will provide financing to between nine and 14 entrepreneurs developing agribusiness companies in rural areas of Chile, where these companies could create as many as 2,600 jobs. The fund will invest only in projects that will develop innovative products (such as varieties not currently grown in Chile) or original processes to improve the quality and efficiency of production. To be eligible for support from the fund, companies must have fewer than 100 employees and sales under US$5 million a year. The new project benefited from the MIF's cooperation with CORFO and experiences investing in venture capital funds in Latin America and the Caribbean. .AgroDesarrollo will contribute to slowing migration from rural areas to cities in Chile, helping create jobs and foster economic development in rural areas of the country. The fund's combination of expertise in finance and agribusiness makes for an effective model that can be replicated by venture capital funds elsewhere in Latin America and the Caribbean,. said MIF project team leader Susana Garcia-Robles. An autonomous fund administered by the IDB, the MIF promotes the development of microenterprises and small and medium-size businesses in Latin America and the Caribbean, providing access to various forms of financing and knowledge networks. =============== C O L O M B I A =============== ECOPETROL SA: May Raise US$6.6 Billion From 2010 Share Sale ----------------------------------------------------------- Ecopetrol SA may raise US$6.6 billion from the sale of a stake next year, Alex Emery at Bloomberg News reports, citing Chief Financial Officer Adriana Echeverri. The company plans to sell an additional 9.9% next year to fund a plan to almost double oil output to 1 million barrels a day, Mr. Echeverri told the news agency in an interview. According to the report, Ecopetrol is raising funds to finance a US$60 billion plan to boost oil production to 1 million barrels by 2015, from current levels of 527,000 barrels per day. In July, the report notes, the company also sold US$1.5 billion of 10-year bonds to help fund spending. Mr. Echeverri, the report relates, said that Colombia's government may also sell an additional 15% stake by 2011 to finance highway projects. The report notes Andres Jimenez, head analyst at brokerage Interbolsa SA in Medellin said that the government will probably sell at least half of its offering abroad as the country's private pension funds are near the 40 percent ceiling on stock investments. .There will be a focus on an international tranche, with some involvement of local mutual funds, insurance and employee funds,. Mr. Jimenez told the news agency in a telephone interview. .There's definitively interest from foreign buyers,. he added. Bloomberg News adds that Ecopetrol SA is also planning to bid for jungle exploration areas in Colombia next month. About Ecopetrol SA 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-'. ============= J A M A I C A ============= AIR JAMAICA: NCB to Provides US$1.3 Million Injection to Airline ---------------------------------------------------------------- Air Jamaica Limited will receive a much needed US$1.3 million injection from NCB Capital Markets Limited, RadioJamaica reports. The report relates that the funds will be used to finance the airline's business plan for the remainder of the 2009/2010 fiscal year. According to the report, NCB initially committed to provide US$34.4 million for the cash-strapped airline but it was unable to do so due to less than favorable market conditions and delays in the finalization of the loan document. The report relates that NCB Capital proposed that the outstanding amount be sourced from the local market via a private placement. NCB Capital Markets which is the wealth and asset management arm of National Commercial Bank. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government owned 25% of the company after it went private in 1994. However, in late 2004, the government assumed full ownership of the airline after an investor group turned over its 75% stake. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on November 5, 2009, Standard & Poor's Ratings Services said that it lowered its long-term corporate credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The outlook is negative. 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. JAMAICAN URBAN: Sells Older Buses as Scrap Metals ------------------------------------------------- Philip Hamilton at Jamaica Observer reports that the Jamaica Urban Transit Company has sold 92 of its Mercedes and Volvo buses, some of which are almost 12 years old, as scrap metals to make space for what it says is a new facility being established at the company. "The scrap metal involved related to 92 very old units which had no potential to be economically restored," the report quoted JUTC Communications Manager Reginald Allen as saying. "Additionally, the space which was being occupied by the units was critically needed to accommodate equipment for a major new initiative at the company," he added. According to the report, Mr. Allen said that the company's "major new initiative", would involved the establishment of a new training facility which required "significant space" at one of the company's service points. The report relates that several of these unserviceable units are being stored at the JUTC's Lyndhurst Road service center, which is likely to be the location of the "new initiative". The Observer notes that JUTC is slated to add another 200 new buses to its fleet come March 2009, financing of which is provided through a EUR67-million loan from the Belgian Government. About JUTC Jamaica Urban Transit Company was established in 1998 to provide a centrally managed state-of-the-art public bus service. The government invested US$6 billion aiming to have an efficient transport system and for the Jamaican people. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2009, RadioJamaica said JUTC has defaulted on loan obligations with RBTT Bank and Petrocaribe Development Fund, among others, due to cash flow problems. The Ministry of Information, as cited by Radio Jamaica, stated that the JUTC operates an overdraft facility of US$520 million at the National Commercial Bank which expired in February. The report noted that the Ministry said this facility is consistently utilised at the upper limit and, on occasions, exceeds the limit giving rise to the imposition of penalty charges above 43%. NATIONAL COMMERCIAL BANK: BCB Capital Managing Director Steps Down ------------------------------------------------------------------ NCB Capital Markets Limited Managing Director Christopher Williams will step down from his post by the end of January, RadioJamaica reports, citing the Jamaica Stock Exchange Web site. The report relates there is no word on his replacement. NCB Capital Markets is the wealth and asset management arm of National Commercial Bank. According to the report, Mr. Williams has served for five years at the helm of NCB Capital Markets. The report notes that the Jamaica Securities Dealers Association on Monday night hailed Mr. Williams for his contribution to the sector. "Chris was the Vice President of the association for the past two years, he has really worked hard. Obviously a lot has gone one in the industry in the past 24 months in the financial crisis. He played a key role in working with all the members to ensure that the company not only went through the crisis successfully but has grown through this period," the report quoted President of the Jamaica Securities Dealers Association, Anya Schnoor, as saying. 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. NATIONAL COMMERCIAL BANK: To Provide US$1.3MM to Air Jamaica ------------------------------------------------------------ Air Jamaica Limited will receive a much needed US$1.3 million injection from NCB Capital Markets Limited, RadioJamaica reports. The report relates that the funds will be used to finance the airline's business plan for the remainder of the 2009/2010 fiscal year. According to the report, NCB initially committed to provide US$34.4 million for the cash-strapped airline but it was unable to do so due to less than favorable market conditions and delays in the finalization of the loan document. The report relates that NCB Capital proposed that the outstanding amount be sourced from the local market via a private placement. NCB Capital Markets which is the wealth and asset management arm of National Commercial Bank. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government owned 25% of the company after it went private in 1994. However, in late 2004, the government assumed full ownership of the airline after an investor group turned over its 75% stake. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on November 5, 2009, Standard & Poor's Ratings Services said that it lowered its long-term corporate credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The outlook is negative. 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. NATIONAL COMMERCIAL: Fitch Junks Issuer Default Rating From 'B' --------------------------------------------------------------- Fitch Ratings has downgraded the ratings of Jamaica-based National Commercial Bank Jamaica Limited: -- Long-term foreign and local currency Issuer Default Rating to 'CCC' from 'B'; -- Short-term foreign and local currency IDR to 'C' from 'B'; -- Support Rating to '5' from '4'; -- Individual Rating to 'D/E' from 'D'; Rating Watch Negative; -- Support floor to 'CCC' from 'B'. Fitch has also downgraded the ratings of Jamaica Diversified Payments Company, a future flow remittances securitization issued by NCBJ, to 'BB' from 'BBB-'. The Outlook on all ratings is Negative and in line with Fitch's view of the sovereign's creditworthiness. Future rating movement will be highly contingent upon a change in this view, given the bank's sizeable sovereign exposure. On Nov. 24, 2009, Fitch downgraded Jamaica's sovereign long-term IDR to 'CCC' and the country ceiling was downgraded to 'B-', reflecting the country's increased macroeconomic pressures and a sharp fiscal deterioration. This has resulted in unsustainable debt dynamics and heightened the risk of some form of debt restructuring. While the current account deficit has improved, the capital account of the balance of payments is highly dependent on disbursements from the IMF and multilaterals. Delays in negotiating a critical IMF stand-by continue to weigh on investor confidence (for further information please see 'Fitch Downgrades Jamaica's IDRs to 'CCC'; Outlook Negative' released on Nov. 24, 2009). Additionally, with a sluggish recovery expected in the U.S. prospects for future GDP growth are highly uncertain as Jamaica is highly dependent on this country for its tourism and overseas workers' remittances. Mining, tourism related flows and family remittances account for a large percent of the DPR flows. As a result, collections for the DPR program have been negatively impacted. Compared to 2008, the volume of collections has decreased approximately 37%. However, Fitch notes that despite the decline in flows, current maximum debt service coverage levels remain strong, greater than 30 times monthly requirements and 35 times quarterly requirements, slightly below the initial coverage levels of July 2007 when series 2007-1 was issued. NCBJ's ratings reflect its strong domestic franchise, adequate profitability, good asset quality and capital levels. But NCBJ's high exposure to sovereign and large corporate loans as well as the negative effects of a volatile operating environment limit the bank's ratings. At the end of June 2009, total government exposure represented about 48% of total assets and 4.5 times equity. A further deterioration of the credit quality of the sovereign and/or a coercive debt exchange of government debt could materially affect NCBJ's financial profile and capital position, due the size of its exposure, a fact that is incorporated in the Negative Outlook of its IDRs. NCBJ is the largest bank in the system in terms of assets with around 38% at the end of June 2009. In 2002, the Jamaican government sold a majority stake in the bank to Advantage Investment Corporation, one of Canada's largest privately held mutual fund management companies. SUGAR COMPANY: Minister Assures Divestment Talks "Not Stalled" -------------------------------------------------------------- Minister of Agriculture and Fisheries Christopher Tufton gave his assurance that negotiations are proceeding for the divestment of Sugar Company of Jamaica's sugar estates and assets, Caribbean Net News reports. "Up to this morning [December 1] I was being consulted based on discussions that are taking place between Jamaica and Italy. It has been a constant flow of discussion and information gathering. The experts that came here are developing a model to determine the feasibility of the project. It's a work in progress," the report quoted Mr. Tufton as saying. According to the report, Mr. Tufton has been responding to questions from Member of Parliament for Central Westmoreland and Opposition Spokesman on agriculture, Roger Clarke, regarding the current talks between the government and the four shortlisted parties -- Energen Development Limited; Fred M Jones and Company/Seprod Limited; Everglades Farms Limited; and Italian firm Eridania Suisse. The report relates that Mr. Tufton explained that the discussions, which began on April 22, are partially completed, with the divestment of the St. Thomas Estate and factory to Fred M Jones/Seprod, and the estates, factory and distillery at Long Pond and Hampden, to Everglades Farms Limited in July. "Eridania has indicated that they will go to their board for a decision to invest (or not) and once that decision is made, they will let us know," the report quoted Mr. Tufton as saying. The report relates that Mr. Tufton noted that while no deadline has been agreed, it is expected that the government will have a response by the end of this year. As reported in the Troubled Company Reporter-Latin America on August 25, 2009, the Jamaica Observer said that the Jamaica government has received the US$15-million capital injection from Italian firm Eridania Eridania Suisse. Caribbean Net News related that the government has negotiated an interim funding with Eridania Suisse to ensure the continued operation of Sugar Company of Jamaica's three sugar estates -- Frome in Westmoreland, Monymusk in Clarendon, and Bernard Lodge in St Catherine. The report said the money will be used to undertake field maintenance work on the three estates, as well as preparatory works for the Frome and Monymusk factories. According to the report, Agriculture and Fisheries Minister Christopher Tufton said the Cabinet has approved the arrangement, which should .effectively ensure. the factories' sugar production output for the 2009/10 crop year, while the process of divestment continues. Caribbean Net News noted Eridania and Energen Development Limited are the two short-listed entities with which the administration is pursuing negotiations toward the sale of the factories and Petrojam Ethanol Limited (PEL). About SCJ The Sugar Company of Jamaica Limited, a.k.a. SCJ, was formed in November 1993 by a consortium made up of J. Wray & Nephew Limited, Manufacturers Investments Limited and Booker Tate Limited. The three companies each held 17% equity in SCJ, with the remaining 49% being held by the government of Jamaica. In 1998, the government became the sole shareholder of SCJ by acquiring the interests of the members of the consortium. Its stated goal was to maximize efficiency, productivity and profitability of the three sugar factories, within three years. The principal activities of the company are the cultivation of cane and the manufacture and sale of sugar and molasses. * * * As reported in the Troubled Company Reporter-Latin America on June 22, 2009, the Jamaica Gleaner reported that Mr. Tufton said that if a new deal is not inked soon for the divestment of SCJ's factories, the public will be called on again to plug a projected US$4.2 billion hole -- representing a US$2 billion operational loss, and bank penalties -- apparently from continuous hefty overdrafts. The loss was incurred by the SCJ's four factories during the 2008/2009 season. The Gleaner related the enterprise has a US$21-billion debt and losses totaling more than US$14 billion since 2005. =========== M E X I C O =========== CEMEX SAB: Expects Fourth-Quarter Loss From Australia Sale ---------------------------------------------------------- Thomas Black at Bloomberg News reports that CEMEX, S.A.B. de C.V. expects to record an extraordinary loss of US$446 million in the fourth quarter related to the sale of its Australian operations. According to the report, citing a company filing with the Securities and Exchange Commission, a new Mexican tax- consolidation law that will take effect in 2010 also may hurt profit. The report relates that Cemex SAB said the law is unconstitutional and the company has .substantial grounds. to contest it. As reported in the Troubled Company Reporter-Latin America on October 5, 2009, Cemex SAB completed the previously announced sale of its Australian operations to Holcim Group. The proceeds from this sale are approximately AU$2.02 billion (approximately US$1.7 billion) and will be used to reduce debt and to strengthen CEMEX's liquidity position. This asset divestment marks another milestone in CEMEX's efforts to regain its financial flexibility; these include the refinancing of US$15 billion dollars of debt and the global offering of 1.495 billion Ordinary Participation Certificates (CPOs), including the over-allotment option, with estimated net proceeds of US$1.782 billion. Bloomberg News, citing an unnamed source, relates that the company is scheduled to begin marketing a seven-year bond to raise a minimum of US$500 million that will be used to pay bank debt. 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)'. * Kamakura Reports Deterioration in Corporate Credit Quality ------------------------------------------------------------ Kamakura Corporation announced Tuesday that the Kamakura index of troubled public companies increased in November for the first time in the last 8 months. The index jumped from 10.68% in October to 11.45% in November. Kamakura's index had reached a peak of 24.3% in March. Kamakura defines a troubled company as a company whose short term default probability is in excess of 1%. Even after the increase, credit conditions are now better than credit conditions in 58.5 percent of the months since the index's initiation in January 1990, and 2.25 percentage points better than the index's historical average of 13.7%. The all-time low in the index was 5.4%, recorded in April and May, 2006, while the all-time high in the index was 28.0%, recorded in September 2001. The index is based on default probabilities for almost 27,000 companies in 30 countries. To follow the troubled company index and other risk commentary by Kamakura on a daily basis, see www.twitter.com/dvandeventer In November, the percentage of the global corporate universe with default probabilities between 1% and 5% decreased by 0.26 percentage points to 7.63%. The percentage of companies with default probabilities between 5% and 10% was up 0.24 percentage points to 1.85%. The percentage of the universe with default probabilities between 10 and 20% was up 0.08 percentage points to 1.09% of the universe, while the percentage of companies with default probabilities over 20% was up by 0.17 percentage points to 0.88% of the total universe in November. Kamakura's President Warren A. Sherman said Tuesday, "It is too early to tell whether the strong recent improvements in credit quality we've seen recently have come to an end. The increase in the troubled company index in November was a significant one that we are updating daily at the request of clients on www.twitter.com/dvandeventer. The rated firms showing the largest increase in short run default risk in November included YRC Worldwide, U.S. Concrete, Ambac Financial Group, Bank of Ireland, Allied Irish Banks, and Citadel Broadcasting. Ambac and Citadel Broadcasting also were among the biggest increases in credit risk last month also, along with CIT which defaulted the next day after the index was reported." The Kamakura index uses the annualized one month default probability produced by the best performing credit model of the Kamakura Risk Information Services default and correlation service. The model used is the fourth generation Jarrow-Chava reduced form default probability, a formula that bases default predictions on a sophisticated combination of financial ratios, stock price history, and macro-economic factors. The countries currently covered by the index include Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Hong Kong, India, Ireland, Israel, Italy, Japan, Luxemburg, Malaysia, Mexico, the Netherlands, New Zealand, Norway, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, United Kingdom, and the United States. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: CLICO Insurance Closes Operations ----------------------------------------------- The Cayman Islands branch of CLICO (Trinidad) Limited has officially closed its doors on December 1, 2009, nine months after it was ordered to stop issue new health insurance policies, Caribbean360.com reports. CLICO is a unit of CL Financial Limited. The report relates that the shutdown has forced hundreds of clients to seek coverage elsewhere. According to the report, Ian Wight, one of the Deloitte & Touche controllers who assumed control of the company in May, said CLICO would process outstanding claims for the next six months. The report relates Mr. Wright also said that the controllers would spend the next few months clearing up outstanding business, such as transferring life insurance and life product business. Prior to the closure, Caribbean360.com recalls, the country's Health Insurance Commission reminded individuals and employers insured at the company that they must get health insurance from other approved insurers in order to stay compliant with the Health Insurance Law. "The responsibility is on the employer to ensure there is adequate insurance in place for employees," the report quoted Insurance Commissioner Mervyn Conolly, as saying. The report notes that CLICO's shutdown follows a "cease and desist order" issued by the Cayman Islands Monetary Authority (CIMA) in March to Colonial Life Insurance Company (Trinidad) Limited, trading as Clico (Cayman) Ltd. About CL Financial CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company, Colonial Life Insurance Company by Cyril Duprey, it was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2009, the Trinidad and Tobago Express said Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. ================= V E N E Z U E L A ================= DELTA MUTUAL: Posts $426,600 Net Loss for September 30 Quarter -------------------------------------------------------------- Delta Mutual, Inc., posted a net loss of US$426,611 for the three months ended September 30, 2009, from US$291,885 for the year ago period. The Company posted a net loss of US$1,188,748 for the nine months ended September 30, 2009, from US$3,422,717 for the year ago period. Revenue, consisting of sales commissions, was US$14,458 for the nine months ended September 30, 2009, from US$22,008 for the year ago period. Revenue was US$14,458 for the three months ended September 30, 2009, from US$22,008 a year ago. As of September 30, 2009, the Company had total assets of US$1,408,475 against US$2,523,900 in total liabilities, all current. The Company's business is subject to the risks of its oil and gas investments in South America. The likelihood of success of the Company must be considered in light of the expenses, difficulties, delays and unanticipated challenges encountered in connection with the operations of the oil and gas concession in Argentina. There is no assurance the Company will ultimately achieve a profitable level of operations. The Company presently does not have sufficient liquid assets to finance its anticipated funding needs and obligations. The Company's continued existence is dependent upon its ability to obtain needed working capital through additional equity or debt financing and achieve a level of oil and gas revenue adequate to support its cost structure. Management is actively seeking additional capital to ensure the continuation of its current activities and complete its proposed activities. However, there is no assurance that additional capital will be obtained or that the Company's investments will be profitable. These uncertainties raise substantial doubt about the ability of the Company to continue as a going concern. On April 13, 2009, Wiener, Goodman & Company, P.C., in Eatontown, New Jersey, raised substantial doubt about Delta Mutual, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the fiscal year ended December 31, 2008. The auditor noted that the Company has a working capital deficiency, incurred losses from operations, needs to obtain additional financing to meet its obligations on a timely basis and to fulfill its proposed activities and ultimately achieve a level of sales adequate to support its cost structure. Delta Mutual, Inc., invests in oil and gas properties in South America. It intends to focus its investments in the energy sector, including development of energy producing investments and alternative energy production in Latin America and North America. *********** 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 * * *