/raid1/www/Hosts/bankrupt/TCRLA_Public/100118.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
Monday, January 18, 2010, Vol. 11, No. 011
Headlines
A R G E N T I N A
TELECOM ARGENTINA: Telecom Italia to Appeal Forced Stake Sale
B R A Z I L
ALL AMERICAN: Misses Volume Growth Forecast for 2009
BRF-BRASIL FOODS: Plans to Sell Benchmark 10-Year Bonds
BFF INTERNATIONAL: S&P Assigns 'BB+' Rating on Senior Bonds
BRASIL FOODS: Moody's Assigns 'Ba1' Rating on US$500 Mil. Notes
CAMARGO CORREA: No Talks to Buy Lafarge's Cimpor Stake
CAMAGRO CORREA: To Respond to Statement on Cimpor Proposal
CAMARGO CORREA: S&P Puts 'BB' Rating on CreditWatch Positive
MAGNESITA REFRATARIOS: Moody's Raises Corp. Family Ratings to 'B1'
TAM SA: Signs Distribution Agreement With GDS
C A Y M A N I S L A N D S
ALBO INTERNATIONAL: Members Receive Wind-Up Report
AMELIE INVESTMENT: Members Receive Wind-Up Report
BD NO. 1: Members Receive Wind-Up Report
BEAVER INVESTMENT: Members Receive Wind-Up Report
BLACK DIAMOND: Shareholders Receive Wind-Up Report
CADOGAN CONFERRE: Members Receive Wind-Up Report
CAPITOL OPPORTUNITIES: Members Receive Wind-Up Report
CLOCKWISE I ? MIXED: Members Receive Wind-Up Report
DELTA EUROPE: Shareholder Receives Wind-Up Report
DELTA EUROPE: Shareholder Receives Wind-Up Report
DRAGONE PROPERTIES: Members Receive Wind-Up Report
FARA INTERNATIONAL: Members Receive Wind-Up Report
FIRST QUADRANT: Shareholders Receive Wind-Up Report
HUTON BUSINESS: Members Receive Wind-Up Report
KURRAJONG LIMITED: Members Receive Wind-Up Report
LYNTON GREEN: Shareholders Receive Wind-Up Report
MARTORA INTERNATIONAL: Members Receive Wind-Up Report
MUTUAL FUND: Shareholders Receive Wind-Up Report
ONDA PROPERTIES: Members Receive Wind-Up Report
PARKHEAD LIMITED: Shareholder Receives Wind-Up Report
PAVONE INTERNATIONAL: Members Receive Wind-Up Report
PIGGY INTERNATIONAL: Members Receive Wind-Up Report
POLAR CAPITAL: Shareholders Receive Wind-Up Report
POLAR CAPITAL: Shareholders Receive Wind-Up Report
PRUDEN OVERSEAS: Members Receive Wind-Up Report
ROXY LIMITED: Members Receive Wind-Up Report
SAN MARCO: Members Receive Wind-Up Report
TONY GERBER: Members Receive Wind-Up Report
TYNA INVESTMENT: Shareholder Receives Wind-Up Report
VOYAGER PILLAR: Shareholders Receive Wind-Up Report
E C U A D O R
PETROECUADOR: December Oil Exports Up 56% From November
J A M A I C A
* JAMAICA: IMF Reveals Deal on Agreement US$1.25 Billion Loan
* JAMAICA: Debt Exchange Is an Event of Default, Moody's Says
* JAMAICA: Fitch Downgrades Long-Term Currency Rating to 'C'
* JAMAICA: S&P Changes Sovereign Credit Ratings on to 'SD'
M E X I C O
GRUPO POSADAS: S&P Affirms Corporate Credit Rating at 'B+'
P E R U
DOE RUN PERU: Peru Retains US$14MM Funds to Ensure Clean-Up
DOE RUN PERU: Seeks Partner to Finance Smelter Reopening
V E N E Z U E L A
HIPERMERCADO EXITO: Pres. Chavez Orders Takeover of Stores
PETROLEOS DE VENEZUELA: Supplier Debts Have "Vanished," Pres. Says
PETROLEOS DE VENEZUELA: Petrocaribe Makes Headway in 2009
* VENEZUELA: Oil Production Unaffected By Power Cuts
X X X X X X X X
* BOND PRICING: For the Week January 11 to January 15, 2010
- - - - -
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A R G E N T I N A
=================
TELECOM ARGENTINA: Telecom Italia to Appeal Forced Stake Sale
-------------------------------------------------------------
Liam Moloney and Giada Zampano at Dow Jones Newswires report that
Telecom Italia SpA said on January 12 that it was taking an appeal
from an order from Argentina to sell its stake in the parent
company of Telecom Argentina SA, arguing its rights were being
violated. The report, citing a company statement, relates
Telecom Italia said that the is "illegimate and unfair." It was
compelled to defend its interests as well as those of its
shareholders, the company added.
According to the report, Telecom Italia said that it is
"unconnected with the breaches allegedly committed by the parties
involved in the Telco transaction," with which Telco shareholders
bought a controlling stake in Telecom Italia in 2007. "Each and
every ruling reached thus far by the Argentinian authorities
concerning the divestment of assets is illegitimate and unjust,"
the report quoted the company as saying.
As reported in the Troubled Company Reporter-Latin America on
January 12, 2010, Total Telecom News said that Telecom Italia must
get out of Argentina by February 25, 2010, or face government
intervention in the sale of its stake in Telecom Argentina S.A.
Dow Jones Newswires related that Argentina's National Antitrust
Commission has given Telecom Italia one year to divest its stakes
in Telecom Argentina, due to a conflict of interest. According to
the report, CNDC said that Spain's Telefonica SA's minority stake
in Telecom Italia creates a conflict between the two companies'
Argentine operations. The report related that Telefonica owns
Telefonica Argentina, which shares an effective duopoly over the
Argentine telecommunications sector with Telecom.
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 January 12, 2010, 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 R A Z I L
===========
ALL AMERICAN: Misses Volume Growth Forecast for 2009
-----------------------------------------------------
Fabiola Moura at Bloomberg News reports that ALL America Latina
Logistica SA missed its volume growth forecast for 2009 due to a
weak fourth quarter.
According to the report, citing a company filing, ALL American had
a "weak operational performance" in the fourth quarter due to
"intense" rain and an "adverse" export market for grains,
according to a filing sent to Brazil's securities regulator
yesterday. "Weather impact was heavier than expected," Morgan
Stanley analysts Nicolai Sebrell and Augusto Ensiki wrote in a
note to obtained by the news agency. ALL estimates transport
volume fell 7.1 percent from a year earlier in the fourth quarter,
he added.
Morgan Stanley, the report notes, increased its 2010 earnings
estimate for ALL by 5%, saying shipments delayed last quarter will
be moved into this quarter. ALL will probably earn 60 centavos a
share this year, Morgan Stanley added.
About All American Latina Logistica
All American Latina Logistica (ALL) transports freight. The
company ships grain and consumer goods by rail in Brazil and
Argentina. ALL also offers warehousing, logistics, andother
services.
* * *
As of January 12, 2010, the company continues to carry Fitch
rating's BB- LT Issuer Default ratings.
BRF-BRASIL FOODS: Plans to Sell Benchmark 10-Year Bonds
-------------------------------------------------------
BRF Brasil Foods SA plans to sell 10-year benchmark dollar bonds
in international markets, Veronica Navarro Espinosa at Bloomberg
News reports, citing a person familiar with the transaction.
According to the report, the unnamed source said that the company
hired Banco Itau SA, Banco Santander SA and JPMorgan Chase & Co.
to arrange the bond sale. The report relates that a benchmark
offering is typically one of at least $500 million in size.
Bloomberg News notes that BRF Brasil joins other Latin American
issuers in taking advantage of low interest rates.
BRF-Brasil Foods SA is a food processor in Latin America. The
company raises chickens to produce poultry products. Brasil foods
also processes frozen pasta, soybeans, and their derivatives, and
distributes frozen vegetables. The company's core business is
chilled and frozen food. The company has offices in the Middle
East, Asia, and Europe.
* * *
As of July 14, 2009, the company continues to carry Moody's Ba1 LT
Corp Family rating. The company also continues to carry Standard
and Poor's BB+ LT Issuer Credit Ratings.
BFF INTERNATIONAL: S&P Assigns 'BB+' Rating on Senior Bonds
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB+'
rating to the senior unsecured, unsubordinated bonds issued by BFF
International Ltd. (not rated) in the amount of $500 million with
a tenor of 10 years. The rating on the bonds reflects the
corporate credit quality of parent company BRF Brasil Foods S.A.
(BB+/Stable/--) and its wholly owned subsidiary, Sadia S.A.
(BB+/Stable/--), both of which guarantee the bonds unconditionally
and irrevocably.
The bond issuance is part of BRF's liability management strategy
for strengthening its financial profile, aiming to replace short-
term debt with longer term, lower-interest-rate funding. The
capital raised in fourth-quarter 2009 with the company's shares
follow-on has contributed significantly to the paying down of its
short-term, expensive credit facilities and has provided the
company some liquidity cushion against its debt exposure.
BRF's cash at hand amounted to Brazilian reais (R$) 4.1 billion
(approximately $2.3 billion) as of Sept. 30, 2009. S&P see this
as adequate to support its short-term maturities of R$2.8 billion
(about $1.6 billion) and its working capital needs. Moreover, S&P
expects BRF and Sadia's consolidated operations to generate more
robust cash flow into this year, contributing to further
diminishing leverage. S&P expects the maintenance of positive
conditions in the domestic market and a gradual recovery of
poultry prices and demand in the export market in 2010, coupled
with forecasted synergies from the consolidation of BRF's and
Sadia's operational processes, to improve EBITDA margins in the
next few quarters. S&P believes this will likely improve credit
and leverage measures. The EBITDA margin in third-quarter 2009
was 5.5%.
S&P's ratings on BRF reflect the company's exposure to the
volatile meat export market, the risks inherent in the animal
protein industry, and integration risk for Sadia's and BRF's
operations. Approval for the companies' association is still
pending from the Brazilian antitrust authorities, based on the
significant participation of both companies' brands in the market
for refrigerated, processed food in Brazil. Conversely, the
company's fair business profile partially mitigates these risks.
The business profile is improving on the larger scale of
operations, dominant market position in the domestic market for
processed food, and forecasted synergies expected with the
integration of Sadia's and BRF's operational processes.
Ratings List
BRF Brasil Foods S.A.
Sadia S.A.
Corporate Credit Rating BB+/Stable/--
New Rating
BFF International Ltd.
$500 mil sr unsecd bonds due 2020 BB+
BRASIL FOODS: Moody's Assigns 'Ba1' Rating on US$500 Mil. Notes
---------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Brasil Foods
S.A. and assigned a Ba1 foreign currency rating to the company's
proposed 10-year US$500 million guaranteed senior unsecured note
issuance.
The notes will be issued by BFF International, Ltd., a wholly
owned Cayman Islands subsidiary of Brasil Foods, but
unconditionally and irrevocably guaranteed by Brasil Foods and
Sadia. The proceeds of the issuance will be used to refinance
certain indebtedness and for general corporate purposes.
The assigned Ba1 foreign currency rating is based on Brasil Food's
Ba1 global local currency corporate family rating, the guarantees
from Brasil Foods and Sadia, as well as the current level of
secured debt and ACC/ACE trade-finance lines of around 23%. A
material increase in the company's level of secured debt could
cause a downgrade in the company's senior unsecured rating due to
effective subordination.
Brasil Food's Ba1 rating continues to be supported by its position
as one of the largest food processors in the Brazilian market with
leading market positions and close to 50% of sales derived from
processed products with good segment diversification in at least
six different segments that offer risk diversification (fresh
poultry meat, specialty meats, milk, frozen foods, pork and beef
fresh meats and processed dairy products).
Other factors that support Brasil Food's rating are its nationwide
cold-storage distribution network, significant synergy
opportunities with Sadia, attractive portfolio of brands, high
standards of corporate governance and good growth prospects, given
the company's competitive advantages due to its scale, market
position and low-production costs of operating in Brazil.
Additionally, the rating is supported by the company's
conservative leverage policy of maintaining Total Debt to EBITDA
below 3.0 times on a going-forward basis.
The Ba1 rating, however, is primarily constrained by the
susceptibility of the company's revenues, earnings and cash flow
to foreign exchange variation, export market disruptions, as well
as to the volatility of dairy and grain commodity costs. In the
near- to medium-term, the rating is also constrained by the
integration challenges and the actual realization of the potential
synergies with Sadia, which is largely dependent on final approval
of the deal without any significant required asset disposals by
Brazilian anti-trust authorities. CADE has so far approved that
both companies merge their commercial efforts for the export
market and the decision on the local market is expected in the
first half of 2010.
Brasil Foods has significantly improved its liquidity following
its BRL5.2 billion net equity offering in the second half of 2009
to be used largely to repay a significant portion of Sadia's
short-term debt. The proposed bond issuance will also improve
Brasil Food's debt maturity profile as most of the proceeds are
expected to be used for the refinancing of more expensive existing
debt. At the end of September, 2009, Brasil Foods had a cash and
investments balance of approximately BRL4.5 billion versus
BRL2.9 billion of total short-term debt. Moody's expect Brasil
Foods' cash and internal cash generation to allow it to
comfortably address its expected working capital outflows, capital
expenditure program and debt service requirements for the next 12
months. Moody's also acknowledge that a large part of Brasil
Foods' short-term debt is related to export trade-finance lines
that have been routinely rolled over, even during the past crisis,
for higher-rated, export-oriented Brazilian issuers such as Brasil
Foods.
Although unlikely in the near-term, upward rating pressure on the
ratings or outlook would require evidence that the company is able
to capture the expected synergies with Sadia, leading to
sustainable improvement in EBITDA margins, which have averaged
12.5% for the last five years. The company's ability to increase
the revenue share of processed products (currently 50%) and show
more stable and sustainable margins would also be an important
consideration for positive rating momentum. Quantitatively, an
improvement in the outlook or rating would require sustainable
Total Debt to EBITDA of approximately 3.0 times and CFO / Net Debt
be maintained above 30% on a 3 year average basis. All metrics
are based on Moody's definitions and standard analytic
adjustments.
On the other hand, the ratings or outlook could see downward
pressure if the company fails to generate positive free cash flow
or if its EBITDA margin fails to approach its long term average of
approximately 12% by the end of 2010. Negative pressure would
also arise if Total Debt to EBITDA leverage remains above 3.5
times at the end of 2010. Finally, downward pressure could also
be caused by a worse than expected decision by CADE that leads the
company to incur substantial financial losses and impacts its
ability to reduce leverage from current levels. In addition, both
rated guaranteed unsecured notes could be downgraded independent
of a change in the Ba1 corporate family rating if the company
substantially increases its reliance on secured debt or other debt
likely to receive priority treatment in a debt restructuring, such
as short-term trade finance lines (ACC/ACE).
Moody's last rating action on Brasil Foods was on October 2nd,
2009, when Moody's confirmed Brasil Foods' Ba1 rating with a
stable outlook, following the company's successful public offering
of common shares raising approximately BRL 5.2 billion of net
proceeds to be used for debt reduction following the company's
merger with Sadia S.A.
Headquartered in Santa Catarina, Brazil, Brasil Foods is one of
the largest food processors in Latin America, with a focus on
poultry, pork, beef, milk and processed products, including dairy.
With pro-forma net revenues of BRL22 billion in 2008, Brasil Foods
is the world's largest poultry exporter.
CAMARGO CORREA: No Talks to Buy Lafarge's Cimpor Stake
------------------------------------------------------
Camargo Correa Group isn't negotiating the acquisition of French
firm Lafarge S.A.'s stake in Portugal cement company Cimentos de
Portugal (Cimpor), Kenneth Rapoza at Dow Jones Newswires reports,
citing a company filing with the Portuguese Security & Exchange
Commission.
"There are no accords between the Camargo Correa Group and Lafarge
or with any entity related to Lafarge in regards to acquiring
their stake in Cimpor, including no ongoing negotiations to reach
this end," the company said in the filing obtained by the news
agency.
According to the report, Portuguese business daily Diario
Economico said that Lafarge was interested in selling a 17% stake
in Cimpor. However, the report notes, Camargo joined Lafarge in
denying any talks on the matter. An unnamed source with close
ties to Camargo Correa told Dow Jones Newswires that the company
was indeed bidding for a stake in Cimpor, but added that it was
not particularly interested in any one stakeholder's position, nor
was Lafarge being courted individually to sell.
Camargo executives, the report says, were in Portugal to bid for a
15% to 25% stake of Cimpor.
About Camargo Correa
Camargo Correa SA is one of the largest private industrial
conglomerates in Brazil. The company is a holding company with
interests in cement, engineering and construction, textiles,
footwear and sportswear manufacturing. It also owns non-
controlling equity interests in the energy, transportation
(highway concessions) and steel businesses. During the last
12 months through June 2007, Camargo Correa had net sales of
BRL9.2 billion and EBITDA of BRL1.4 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
November 26, 2009, Fitch Ratings currently rates Camargo and its
special-purpose vehicle CCSA Finance Limited:
-- Foreign currency Issuer Default Rating 'BB';
-- Local currency IDR 'BB';
CAMAGRO CORREA: To Respond to Statement on Cimpor Proposal
----------------------------------------------------------
Joao Lima at Bloomberg News reports that Camargo Correa SA will
respond to a notification from Portugal's securities regulator
about its proposal to merge a unit with Cimpor-Cimentos de
Portugal SGPS SA. "Camargo Correa is considering the options that
are available," the Brazilian company said in a statement obtained
by the news agency.
According to the report, the regulator notified Camargo about
making its proposal comply with rules for competing bids or
alternatively withdraw the proposal.
As reported in the Troubled Company Reporter-Latin America on
January 14, 2010, Bloomberg News said that Camargo Correa offered
to buy an unspecified stake in Cimpor-Cimentos de Portugal and
merge its Portuguese unit into the company to repel a rival
EUR3.86 billion (US$5.6 billion) offer from Cia. Siderurgica
Nacional. According to the report, citing a regulatory filing,
Camargo Correa will hold a stake of between 15% and 25% for the
transaction to close, and will "necessarily" have a stake of less
than 50 percent in Cimpor. The report related that Camargo also
agreed to pay as much as EUR350 million to Cimpor's shareholders.
About Camargo Correa
Camargo Correa SA is one of the largest private industrial
conglomerates in Brazil. The company is a holding company with
interests in cement, engineering and construction, textiles,
footwear and sportswear manufacturing. It also owns non-
controlling equity interests in the energy, transportation
(highway concessions) and steel businesses. During the last
12 months through June 2007, Camargo Correa had net sales of
BRL9.2 billion and EBITDA of BRL1.4 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
November 26, 2009, Fitch Ratings currently rates Camargo and its
special-purpose vehicle CCSA Finance Limited:
-- Foreign currency Issuer Default Rating 'BB';
-- Local currency IDR 'BB';
CAMARGO CORREA: S&P Puts 'BB' Rating on CreditWatch Positive
------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'BB'
corporate credit ratings on Camargo Correa S.A. on CreditWatch
Negative, and placed the ratings on its cement-company subsidiary,
Camargo Correa Cimentos S.A., on CreditWatch Positive.
The CreditWatch listing follows CCSA's offer to buy a stake in and
merge CCC into Portugal-based Cimpor Cimentos de Portugal S.G.P.S.
S.A. (BBB-/Watch Neg/A-3). Under the nonbinding proposal, CCSA
will acquire between 15% and 25% of the Portuguese company, while
maintaining less than a 50% stake. CCSA also offered to pay
Cimpor's shareholders a EUR350 million one-off dividend. Cimpor's
shareholders will analyze the offer, which competes with Companhia
Sider£rgica Nacional's (BB+/Watch Neg/--) unsolicited takeover bid
for Cimpor announced in December.
"Although the transaction will give CCSA access to Cimpor's future
dividend stream if successful, the CreditWatch listing reflects
downward risk on the ratings due to the uncertainty on the effects
of the transaction on CCSA's financial and business profile, as
the company will not fully control the cash flows of its cement
business," said Standard & Poor's credit analyst Marcelo Schwarz.
Nevertheless, S&P acknowledge that CCSA has an adequate cash
position and benefits from noncore assets that could be divested
to boost liquidity. On the other hand, the CreditWatch listing on
CCC reflects the potential positive effects on both financial and
business profiles. CCC would be part of a stronger and
geographically diversified cement group, and would benefit from a
stronger position and operating and logistics synergies in the
Brazilian cement market.
S&P expects to resolve the CreditWatch within the next few months,
as the proposed transactions develop and S&P obtains a full
understanding of the transactions' business and financial
implications on both CCSA and CCC.
MAGNESITA REFRATARIOS: Moody's Raises Corp. Family Ratings to 'B1'
------------------------------------------------------------------
Moody's Investors Service has upgraded Magnesita Refratarios
S.A.'s corporate family ratings to B1 from B2 on the global scale
and to Baa2.br from Ba2.br on the Brazilian national scale, and
changed the ratings outlook to stable from negative.
The rating action anticipates Magnesita's reduced leverage during
the fourth quarter of 2009 resulting from the BRL 350 million
equity issuance, which proceeds were used to prepay debt, and the
company's improved operating performance over the past quarters
primarily reflecting increased capacity utilization of the steel
industry in Brazil, successful cost-cutting initiatives and
synergies from the integration of LWB, acquired in late 2008.
Magnesita's operating performance has improved in the recent
quarters as evidenced by the EBITDA margin of 24.7% (as defined by
Moody's) reported in the third quarter of 2009 (up from 11.5% in
the first quarter of 2009), which Moody's believe will increase
further in the near term fueled by higher refractories sales in
Brazil, where the steel industry has recovered faster than in
other parts of the world and most of revenues are achieved through
higher-margin cost-per-performance contracts with steel companies.
In Europe and USA, LWB's most relevant markets, the steel sector
still faces significant challenges to increase capacity
utilization.
The company's management has made significant efforts to reduce
costs on a permanent basis and to extract synergies from the
integration of LWB including cross-selling opportunities, upstream
integration in magnesite and dolomite, and logistics optimization.
Also, Magnesita scaled back capital spending in order to bolster
free cash flow available for debt reduction.
Moody's anticipates that Total Adjusted Net Debt (including
pension fund obligations) to EBITDA has likely declined to about
5x at 2009 year-end after peaking at about 8x in June 2009.
Moody's view considers Magnesita's improved EBITDA and lower
indebtedness reflecting both the impact of the strengthened Real
on unhedged foreign currency debt and US$175 million debt prepaid
with proceeds from the equity injection. Leverage is expected to
decline further during 2010 towards 4x as the first and second
quarters of 2009 quarters roll off.
Near term liquidity is adequate based on sizeable cash position
estimated at some BRL350 million at 2009 year-end, improved free
cash flow generation, and Magnesita's good access to the local
market to refinance export pre-financing, which represents a large
portion of short term debt. Recently, Magnesita has successfully
negotiated new financial covenants for a substantial part of its
debt in exchange for higher interest rates. While interest
coverage is fairly tight, Moody's expect headroom under the new
covenants to increase gradually over time as weaker quarters roll
off.
The B1 corporate family rating of Magnesita takes into
consideration its still high leverage, relative small size when
compared to global mining companies and its high exposure to the
cyclical steel industry. Also, Magnesita's high exposure to
foreign currency debt is a constraining factor as long as the weak
performance of its offshore operations persists. As a positive
credit aspect, the rating incorporates the company's strong market
position as a leading supplier of refractories supported by long-
standing client relationships and significant import barriers in
Brazil. The Brazilian operations have a high level of vertical
integration, including sizeable prime-quality mineral reserves,
substantial electricity self-sufficiency and efficient logistics.
While the B1 global scale rating reflects the default and loss
expectation of Magnesita on a global basis, the Baa2.br national
scale rating reflects the standing of their credit quality
relative to other domestic issuers. National Scale Ratings are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. Issuers rated Ba2.br
demonstrate below-average creditworthiness relative to other
domestic issuers. NSRs in Brazil are designated by the ".br"
suffix. NSRs differ from global scale ratings in that they are
not globally comparable to the full universe of Moody's rated
entities, but only with other rated entities within the same
country.
The stable outlook reflects Moody's expectation that the Brazilian
steel sector will continue to grow in the near term, supporting
increasing sales and cash flows available for debt reduction, also
helped by its cost-focused management. While LWB's results are
expected to improve modestly reflecting the slow recovery of the
steel industry in Europe and North America, the Brazilian
operations should remain as the main cash flow generator over the
medium term. Moody's believe that the company will continue to
prudently manage working capital and capital spending in order to
maximize free cash flow, while maintaining adequate liquidity.
Magnesita's ratings or outlook could be upgraded in case its
performance continues to improve and leverage as measured by Total
Adjusted Debt to EBITDA declines to below 4x on a sustainable
basis while maintaining healthy liquidity with cash balance plus
free cash flow exceeding 1.3x short term debt. Also, an upgrade
would require Free Cash Flow to Total Adjusted Debt to improve to
the mid teen range (-2.6% as of LTM September 30, 2009).
The ratings of Magnesita could be downgraded if recently improved
debt protection metrics are not sustainable over time,
particularly if free cash flows turn negative again probably due
to elevated dividends or capital spending. A weakened liquidity
position could also have negative implications to the rating or
outlook.
The last rating action on Magnesita was on June, 16, 2009, when
Moody's downgraded Magnesita's corporate family ratings to B2 from
Ba3 on the global scale and to Ba2.br from A3.br on the Brazilian
national scale, with a negative outlook.
Magnesita Refratarios S.A. is the largest manufacturer of
refractories in Latin America and the third largest worldwide,
with operations in Brazil, U.S., Europe and Asia. Pro-forma for
twelve months of LWB's operations, Magnesita reported consolidated
revenues of BRL 1,840 million (US$857 million converted by the
average exchange rate) in last twelve months ended September, 30,
2009.
TAM SA: Signs Distribution Agreement With GDS
---------------------------------------------
TAM SA signed agreements with Sabre and is negotiating with
Amadeus and Travelport to make its entire content in the Brazilian
market available through the Global Distribution Systems operated
by the three companies. With the new partnerships, the airline
expands the options available to travel agents and corporate
customers in order to issue tickets within Brazil. The
expectation is that TAM'S full content shall be available in the
three GDSs by the end of the first half of 2010.
The company will continue to use the e-TAM portal, its own
distribution channel based on Amadeus's technology platform, to
make its content available in Brazil. e-TAM will offer the same
information contained in the Sabre, Amadeus and Travelport GDSs.
With it, travel agents and corporate customers may choose the most
convenient tool for their day-to-day use.
Paulo Castello Branco, TAM'S Vice President of Commerce and
Planning, states that the new partnerships will operate as an
important tool to expand the company's content distribution within
the domestic market. "T[he] announcement is part of our strategy
to be a global company and industry leader. Travel agents and
corporate customers will have efficient access to our content,
whether through e-TAM, Amadeus, Sabre or Travelport. In this way,
the client wins."
The agreements will not have any impact with the end user, who
will still be able to purchase airline tickets through travel
agencies and TAM stores, and also through the call center and the
company's Web site.
About TAM SA
Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/--
has business agreements with the regional airlines Pantanal,
Passaredo, Total and Trip. As of Jan. 14, the daily flight on the
Corumba -- Campo Grande route in Mato Grosso do Sul began to be
operated by a partnership with Trip. With the expansion of the
agreement with NHT, TAM will now be serving 82 destinations in
Brazil, 45 of which with its own flights. In addition, the
company is strengthening its presence in Rio Grande do Sul and
Santa Catarina.
* * *
As reported in the Troubled Company Reporter-Latin America on
October 20, 2009, Fitch Ratings has assigned a 'BB-' rating to TAM
S.A's US$300 million proposed senior guaranteed notes due 2019.
These notes will be issued through TAM's subsidiary, TAM Capital 2
Inc and will be unconditionally guaranteed by TAM and TAM Linhas
Aereas S.A. Proceeds from the proposed issuance will be used to
enhance the company's cash balance and for general corporate
purpose.
==========================
C A Y M A N I S L A N D S
==========================
ALBO INTERNATIONAL: Members Receive Wind-Up Report
--------------------------------------------------
On December 12, 2009, the members of Albo International Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
AMELIE INVESTMENT: Members Receive Wind-Up Report
-------------------------------------------------
On December 12, 2009, the members of Amelie Investment Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
BD NO. 1: Members Receive Wind-Up Report
----------------------------------------
On December 23, 2009, the members of BD No. 1 Limited received the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Annie Chapman
69 Dr. Roy's Drive, P.O. Box 1043
George Town, Grand Cayman KY1-1102
BEAVER INVESTMENT: Members Receive Wind-Up Report
-------------------------------------------------
On December 12, 2009, the members of Beaver Investment Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
BLACK DIAMOND: Shareholders Receive Wind-Up Report
--------------------------------------------------
On December 30, 2009, the shareholders of Black Diamond Multi-
Manager Offshore Fund Ltd received the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Graham Robinson
Telephone: (345) 949-7576
Facsimile: (345) 949-8295
P. O. Box 897, One Capital Place
George Town, Grand Cayman KY1-1103
Cayman Islands
CADOGAN CONFERRE: Members Receive Wind-Up Report
------------------------------------------------
On December 16, 2009, the members of Cadogan Conferre Fund Limited
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Stuart Sybersma
c/o Trudy-Ann Baines
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949-7500
Facsimile: (345) 949-8258
CAPITOL OPPORTUNITIES: Members Receive Wind-Up Report
-----------------------------------------------------
On December 12, 2009, the members of Capitol Opportunities Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
CLOCKWISE I ? MIXED: Members Receive Wind-Up Report
---------------------------------------------------
On December 14, 2009, the members of Clockwise I ? Mixed Bond
Leverage Fund Ltd. received the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Richard Barton
Telephone: (345) 814 7765
Facsimile: (345 945 3902
P.O. Box 2681, Grand Cayman KY1-1111
Cayman Islands
DELTA EUROPE: Shareholder Receives Wind-Up Report
-------------------------------------------------
On December 23, 2009, the shareholder of Delta Europe Partners
Master, Ltd. received the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Ogier
Jennifer Parsons
Telephone: (345) 815-1820
Facsimile: (345) 949-9876
DELTA EUROPE: Shareholder Receives Wind-Up Report
-------------------------------------------------
On December 23, 2009, the shareholder of Delta Europe Partners,
Ltd. received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ogier
Jennifer Parsons
Telephone: (345) 815-1820
Facsimile: (345) 949-9876
DRAGONE PROPERTIES: Members Receive Wind-Up Report
--------------------------------------------------
On December 12, 2009, the members of Dragone Properties Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
FARA INTERNATIONAL: Members Receive Wind-Up Report
--------------------------------------------------
On December 12, 2009, the members of Fara International Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
FIRST QUADRANT: Shareholders Receive Wind-Up Report
--------------------------------------------------
On December 23, 2009, the shareholders of First Quadrant Premier
Master Fund, Ltd. received the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Mourant Cayman Liquidators, Ltd.
Harbour Centre, Third Floor
42 North Church Street, George Town
P.O. Box 1348, Grand Cayman KY1-1108
Cayman Islands
HUTON BUSINESS: Members Receive Wind-Up Report
--------------------------------------------------
On December 12, 2009, the members of Huton Business Ltd. received
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
KURRAJONG LIMITED: Members Receive Wind-Up Report
-------------------------------------------------
On December 23, 2009, the members of Kurrajong Limited received
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Annie Chapman
69 Dr. Roy's Drive, P.O. Box 1043
George Town, Grand Cayman KY1-1102
LYNTON GREEN: Shareholders Receive Wind-Up Report
-------------------------------------------------
On December 30, 2009, the shareholders of Lynton Green Limited
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Graham Robinson
Telephone: (345) 949-7576
Facsimile: (345) 949-8295
P. O. Box 897, One Capital Place
George Town, Grand Cayman KY1-1103
Cayman Islands
MARTORA INTERNATIONAL: Members Receive Wind-Up Report
-----------------------------------------------------
On December 12, 2009, the members of Martora International Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
MUTUAL FUND: Shareholders Receive Wind-Up Report
------------------------------------------------
On December 30, 2009, the shareholders of Mutual Fund Basket
Reference Fund (1-O) Limited received the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Graham Robinson
Telephone: (345) 949-7576
Facsimile: (345) 949-8295
P. O. Box 897, One Capital Place, George Town
Grand Cayman KY1-1103, Cayman Islands
ONDA PROPERTIES: Members Receive Wind-Up Report
-----------------------------------------------
On December 12, 2009, the members of Onda Properties Ltd. received
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
PARKHEAD LIMITED: Shareholder Receives Wind-Up Report
-----------------------------------------------------
On December 23, 2009, the shareholder of Parkhead Limited received
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ogier Fiduciary Services (Cayman) Limited
Ogier Employee Benefit Services Limtied
c/o Diana Jurado
Telephone: +44 1534 504 410
Facsimile: +44 1534 504 475
PAVONE INTERNATIONAL: Members Receive Wind-Up Report
----------------------------------------------------
On December 12, 2009, the members of Pavone International Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
PIGGY INTERNATIONAL: Members Receive Wind-Up Report
---------------------------------------------------
On December 12, 2009, the members of Piggy International Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
POLAR CAPITAL: Shareholders Receive Wind-Up Report
--------------------------------------------------
On December 30, 2009, the shareholders of Polar Capital Paragon
Fund Limited received the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Avalon Management Limited
Landmark Square, 1st Floor
64 Earth Close, West Bay Beach
P.O. Box 715, Grand Cayman KY1-1107
Cayman Islands
Facsimile: 1 345 769-9351
POLAR CAPITAL: Shareholders Receive Wind-Up Report
--------------------------------------------------
On December 30, 2009, the shareholders of Polar Capital Paragon
2007 Fund Limited received the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Avalon Management Limited
Landmark Square, 1st Floor
64 Earth Close, West Bay Beach
P.O. Box 715, Grand Cayman KY1-1107
Cayman Islands
Facsimile: 1 345 769-9351
PRUDEN OVERSEAS: Members Receive Wind-Up Report
-----------------------------------------------
On December 14, 2009, the members of Pruden Overseas Management,
Ltd. received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Peter Mackay
c/o Global Captive Management Ltd.
Governors Square, 2nd Floor, Building 3
23 Lime Tree Bay Avenue
P.O. Box 1363, Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 949 7966
ROXY LIMITED: Members Receive Wind-Up Report
--------------------------------------------
On December 23, 2009, the members of Roxy Limited received the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
David Walker
69 Dr. Roy's Drive, P.O. Box 1043
George Town, Grand Cayman KY1-1102
SAN MARCO: Members Receive Wind-Up Report
-----------------------------------------
On December 12, 2009, the members of San Marco Investment Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
TONY GERBER: Members Receive Wind-Up Report
-------------------------------------------
On December 12, 2009, the members of Tony Gerber International
Ltd. received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
TYNA INVESTMENT: Shareholder Receives Wind-Up Report
----------------------------------------------------
On December 14, 2009, the shareholder of Tyna Investment Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
VOYAGER PILLAR: Shareholders Receive Wind-Up Report
---------------------------------------------------
On December 24, 2009, the shareholders of Voyager Pillar 1 Ltd.
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
=============
E C U A D O R
=============
PETROECUADOR: December Oil Exports Up 56% From November
-------------------------------------------------------
Petroecuador's December oil exports rose 56 percent from November
to 8,943,063 barrels, Santiago Silva at Reuters reports. The
report relates that December oil export revenues rose to US$596.7
million from US$407.8 million in November.
According to the report, Petroecuador boosted average production
by 8.42% last year from a year earlier to 181,010 barrels per day.
The report relates that while Petroecuador output has risen in
recent years, production by private companies operating in the
Andean country has fallen due to cutbacks in investment.
Reuters says that private production fell 14% last year compared
with 2008.
About Petroecuador
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
As reported in the Troubled Company Reporter-Latin America on
December 28, 2009, Dow Jones Newswires said that Ecuadorian
President Rafael Correa has authorized naval forces to extend its
control of Petroecuador until March as more time was needed for an
orderly handover of the company to a new management structure.
The report recalled that Petroecuador was declared in a state of
emergency two years ago, and the navy has been put in charge of
its restructuring.
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
=============
J A M A I C A
=============
* JAMAICA: IMF Reveals Deal on Agreement US$1.25 Billion Loan
-------------------------------------------------------------
Dominique Strauss-Kahn, Managing Director of the International
Monetary Fund, issued the following statement on Jamaica:
"IMF staff and the Jamaican authorities today reached agreement,
subject to final approval by the IMF Executive Board, on an
economic program supported by an SDR 802.5 million (about US$1.25
billion) loan under a 27-month Stand-By Arrangement. The program
could go to the Executive Board for approval in the next few
weeks, pending some prior actions to be taken by the Jamaican
government. Approval of the SBA is expected to catalyze about
US$1.1 billion in funding from other international financial
institutions.
"Jamaica has been hit hard by the global financial crisis and has
been suffering from years of subpar growth. Strong policies and
an ambitious reform agenda are necessary now to start a process of
transformation in the Jamaican economy. By streamlining public
expenditure and reducing interest payments, Jamaica will have more
resources available for investments in education and
infrastructure. This will increase growth potential, reduce the
vulnerability to external shocks, and put the country in a
position to reap the benefits of a recovery in global growth. It
is not an easy process, but I am confident in the strength of the
policies proposed and the authorities' commitment to implement
them," Mr. Strauss-Kahn stated.
"Protecting the most vulnerable Jamaicans is a key concern of this
program. To help soften the impact on the poor, the program
allows for at least a 25% expansion of the social safety net
spending, in particular the Program of Advancement through Health
and Education, and the school feeding program," Mr. Strauss-Kahn
added. The coverage of these programs will be expanded to about
360,000 persons, from the current 325,000.
The program has three main elements:
-- A fiscal consolidation strategy to streamline expenditure
and reform the public sector;
-- A comprehensive debt management strategy to reduce the
governments interest bill; and
-- A reform to strengthen the financial system.
* JAMAICA: Debt Exchange Is an Event of Default, Moody's Says
-------------------------------------------------------------
Moody's Investors Service has announced that it considers
Jamaica's debt exchange proposal for domestic creditors as an
event of default. As reflected in the nation's current sovereign
ratings of Caa1, with a negative outlook, on both domestic and
foreign currency debt, Moody's had anticipated that Jamaica's
long-standing commitment to honor its obligations in full and on
schedule might finally break this year.
Moody's explains that the proposal is part of a comprehensive
program to restore sustainability to public debt dynamics. The
exchange does not involve external debt, but it does include the
entire stock of marketable domestic debt, worth around 60% of GDP
(700 billion Jamaican dollars), encompassing approximately 350
instruments of various types, including variable, fixed rate, and
US dollar-denominated and -linked bonds.
The terms of the exchange provide for zero reduction in principal
(under Jamaican law, this constitutes a "voluntary exchange"), but
they also specify a cut of the average coupon to around 11% from
around 17%, as well as an extension of the average debt maturity
to about five years from two. The government has given
bondholders a deadline of January 26th to tender their old bonds,
with settlement scheduled for February 16th.
When a security is in default, Moody's policy is to assign a
rating that reflects the expected losses to investors relative to
the original promise to pay, as well as a measure of the
uncertainty around that expectation, according to these
guidelines: recovery rate of 90%-95% -- rating of Caa1; 80%-90% --
Caa2; 65%-80% -- Caa3; 35%-65% -- Ca; and below 35% -- C. Once
there is more clarity on investor losses, Moody's will likely make
a technical adjustment to the rating in the near future.
The country's rating could be upgraded once the debt exchange is
completed, if it proceeds as expected and if multilateral
financing is secured. It is Moody's judgment that the exchange --
which mainly affects Jamaican banks owning government debt -- is
likely to be relatively orderly. Moreover, the domestic debt
restructuring was a precondition for the nation to receive a large
combination of multilateral loans over the next two years, the
equivalent of around 20% of GDP. Such assistance could
significantly alleviate the country's liquidity constraint over
the medium term.
Nevertheless, Moody's recognizes that Jamaica still faces multiple
risks over the near- to- medium term. The most pressing is a low
participation rate in the exchange, which could result in yet
another delay in multilateral funding. Such a risk, however, is
small in Moody's view because the government and local creditors
have been in discussions for some time in an effort to coordinate
an orderly restructuring.
Moreover, given the large exposure of the local financial system
to the government's debt, the exchange could trigger a general
loss of market confidence -- which in turn could lead to pressure
on the exchange rate and possibly even a run on bank deposits and
already-low foreign exchange reserves. Moody's does not expect
this to materialize, however.
Finally, even if the exchange proceeds smoothly, the very
ambitious macro- reform program that Jamaica has agreed to with
the IMF and other multilateral development banks will be subject
to considerable implementation risk.
Moody's last rating action with respect to the government of
Jamaica was on November 18, 2009, when its long-term debt ratings
were downgraded to Caa1 with a negative outlook from B2 with a
stable outlook.
* JAMAICA: Fitch Downgrades Long-Term Currency Rating to 'C'
------------------------------------------------------------
Fitch Ratings downgraded Jamaica's long-term local currency rating
to 'C' from 'CCC'. In addition, Fitch has affirmed Jamaica's
long-term and short-term foreign currency ratings at 'CCC' and 'C'
respectively, and affirmed the Country Ceiling at 'B-'. Jamaica's
sovereign ratings Outlook remains Negative
The downgrade to 'C' from 'CCC' follows the announcement of a
domestic debt exchange by the government.
The affirmation of Jamaica's long-term foreign currency Issuer
Default Rating at 'CCC' reflects the fact that the exchange offer
does not include government debt securities issued in
international capital markets.
The government's debt exchange offer involves approximately
J$701 billion of domestic debt securities, virtually all its
outstanding domestic debt. 'The debt exchange, if successful,
will substantially reduce the government's near-term debt service
costs and create the fiscal space for public finance and economic
reform as well as unlock support from the IMF and other
multilateral creditors,' said Shelly Shetty, Senior Director in
Fitch's Sovereign Group.
In Fitch's view, the proposed debt exchange does imply an adverse
change in the terms of government domestic debt even though, if
successful, it will materially reduce the risk of a disorderly
sovereign debt default. The exchange extends the maturity and
simultaneously reduces the yield on domestic government debt
securities. Moreover, the exchange offer is against the backdrop
of increasing government financial distress and an unsustainable
public debt service burden. Consequently and according to Fitch's
criteria, the exchange offer constitutes a 'coercive debt
exchange' even though it is notionally 'voluntary', no principal
loss is implied and some features of the new instruments are
favorable for creditors. Jamaica's local currency IDR rating will
be downgraded to Restricted Default ('RD') once Fitch judges that
the exchange has been executed, likely to be on or very shortly
after the expiration date of the offer. Jamaica's local currency
rating will subsequently be raised out of default shortly after
Fitch determines that the exchange has been successful involving a
participation rate of typically 90%. In the event that the
successful conclusion of the exchange is followed by approval of
an IMF program in support of the government's fiscal and economic
program, Jamaica's ratings will likely be raised into the single
'B' category.
Under the proposed exchange, the coupons will be significantly
lower and maturities will be extended. The consolidation of over
350 securities into 23 new benchmark bonds, the conversion of some
securities from callable to non-callable and the introduction of
inflation-indexed bonds are positive for domestic creditors and
the overall development of the local bond market. Fitch also
believes that the proposed domestic debt exchange is unlikely to
materially undermine the solvency of the banking sector, though
the lower yield on the new securities will adversely affect near-
term profitability.
* JAMAICA: S&P Changes Sovereign Credit Ratings on to 'SD'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
foreign- and local-currency sovereign credit ratings on Jamaica to
'SD' from 'CCC/C'.
Standard & Poor's also said that it revised its ratings on the
rated bonds that are included the sovereign' proposed domestic
debt exchange to 'D'.
The ratings on the government securities not included in the debt
exchange remain at 'CCC'. The recovery rating remains at '4'.
"These rating actions follow Jamaican Prime Minister Golding's
announcement of the domestic debt exchange and its official
launch," explained Standard & Poor's credit analyst Roberto Sifon
Arevalo. The offer seeks to exchange all categories of the
Jamaican domestic debt except Treasury bills. It does include
foreign-currency-denominated domestic debt, which carries foreign-
currency ratings, which is why S&P has revised the foreign-
currency credit rating to 'SD'. External debt is excluded from
this transaction.
In S&P's view, the offer implies that investor will receive less
value than promised as per the original securities based on the
lower interest rate (an average reduction of 6%) and maturity
extension (an average increase of two years).
S&P views this offer as distressed rather than opportunistic
because of the risk that the issuer will not fulfill its original
obligations.
With no principal reduction, the government debt burden will
remain high. However, the interest cost savings because of the
debt exchange is substantial and should bring down the interest-
to-revenue ratio. This -- combined with extended debt maturities
-- should diminish the borrowing requirement in the short term and
assist the government in its fiscal consolidation strategy.
"Overall, the domestic efforts, together with the ongoing
multilateral support, should help Jamaica manage its long-standing
fiscal and structural problems going forward," Mr. Sifon Arevalo
added. "In this context, S&P expects to assign a 'B-' sovereign
credit rating and 'B-' debt ratings to the new bonds upon the
completion of the debt restructuring and issuance of the new
bonds, which is scheduled for Feb. 16, 2010."
===========
M E X I C O
===========
GRUPO POSADAS: S&P Affirms Corporate Credit Rating at 'B+'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its
ratings on Mexican hotel operator Grupo Posadas S.A.B. de C.V.,
including the 'B+' corporate credit rating. At the same time, S&P
revised the recovery rating on its senior unsecured notes due 2011
to '4' from '3', bringing it in line with the recovery rating
assigned to its new senior unsecured notes due 2015. The outlook
is stable. The rating action followed Posadas' Jan. 8
announcement of the placement of its $200 million notes.
"We revised the outlook to stable from negative as a result of the
successful refinancing of the company's short-term debt
maturities," said Standard & Poor's credit analyst Monica Ponce.
"However, S&P remain concerned about the company's open positions
on derivative instruments, which, amid foreign-exchange
volatility, could constrain its liquidity."
The 'B+' corporate credit rating on Posadas reflects its
aggressive financial policy, the cyclical nature of the lodging
industry, the company's geographic concentration in Mexico, and
its relatively high debt leverage.
These factors are partially offset by the company's consistent
operating performance, its position as the largest hotel operator
in Mexico, and its diversified hotel portfolio, including well-
recognized brands.
The issue-level rating on Posadas' senior unsecured notes is 'B+'
(the same as the corporate credit rating on the company). The
recovery rating of '4' indicates S&P's expectation of meaningful
(30%-50%) recovery in the event of a payment default.
=======
P E R U
=======
DOE RUN PERU: Peru Retains US$14MM Funds to Ensure Clean-Up
-----------------------------------------------------------
Peru's Energy and Mines Ministry said it has retained US$14
million that mining company Doe Run Peru had placed in escrow to
guarantee completion of an environmental clean-up operation, Latin
America Herald Tribune reports. The report relates the minister
said that the decision to seize the funds was taken after a
January 8 deadline for renewing the surety bond expired.
According to the report, the performance bond was established as a
requirement in 2006, when the ministry approved Doe Run's request
for an extension of its deadline for completing an environmental
clean-up at its metals processing complex in the central city of
La Oroya. The report notes that Doe Run Peru carried out 52% of
the clean-up to date but still must spend another US$160 million
to complete the operation, according to the latest figures.
According to the TCRLA on October 1, 2009, AMM News said that a
Doe Run Peru spokesman said that the company will delay the
reopening of its smelter following reports that Peru's congress
voted to give the company a 30-month extension on its
environmental cleanup deadline, which expired on October. The
report recalls that Doe Run Peru filed for a government-monitored
financial restructuring because it was worried creditors might try
to freeze its assets or operations. Reuters related that Doe Run
Peru owes some US$100 million to its suppliers and needs to spend
another US$150 million to clean up La Oroya.
About Doe Run Peru
Doe Run Peru operates an integrated primary lead operation and a
recycling operation located in Missouri, referred to as Buick
Resource Recycling. Fabricated Products operates a lead
fabrication operation located in Arizona and a lead oxide
business located in Washington.
* * *
As of May 21, 2009, the company continues to carry Moody's bank
financial strength at D- and Fitch Ratings individual rating at D.
DOE RUN PERU: Seeks Partner to Finance Smelter Reopening
--------------------------------------------------------
Alex Emery at Bloomberg News reports that Doe Run Peru is seeking
a "strategic partner" to finance the reopening of its shuttered
smelter. "We're holding talks with several companies that could
help out with financing," Doe Run Peru Vice President Jose
Mogrovejo told Bloomberg in a telephone interview. "There's a lot
of speculation right now," he added.
As reported in the Troubled Company Reporte-Latin America on
November 18, 2009, Bloomberg News said that Doe Run Peru may sell
a stake in its shuttered smelter to help finance the restart of
operations. According to the report, Deputy Mining Minister
Fernando Gala said that the company is unlikely to be able to
reopen the smelter before February. "The company will have to
bring in a partner if it can't get the financing," Mr. Gala told
the news agency in an interview. "Suppliers aren't going to give
them any more credit," Mr. Gala added. The company is negotiating
with a "strategic partner" to finance the purchase of concentrates
from suppliers, Doe Run Vice President Jose Mogrovejo told the
news agency in a telephone interview.
According to the TCRLA on October 1, 2009, AMM News said that a
Doe Run Peru spokesman said that the company will delay the
reopening of its smelter following reports that Peru's congress
voted to give the company a 30-month extension on its
environmental cleanup deadline, which expired on October. The
report recalls that Doe Run Peru filed for a government-monitored
financial restructuring because it was worried creditors might try
to freeze its assets or operations. Reuters related that Doe Run
Peru owes some US$100 million to its suppliers and needs to spend
another US$150 million to clean up La Oroya.
About Doe Run Peru
Doe Run Peru operates an integrated primary lead operation and a
recycling operation located in Missouri, referred to as Buick
Resource Recycling. Fabricated Products operates a lead
fabrication operation located in Arizona and a lead oxide
business located in Washington.
* * *
As of May 21, 2009, the company continues to carry Moody's bank
financial strength at D- and Fitch Ratings individual rating at D.
=================
V E N E Z U E L A
=================
HIPERMERCADO EXITO: Pres. Chavez Orders Takeover of Stores
----------------------------------------------------------
Steven Bodzin at Bloomberg News reports that Venezuela President
Hugo Chavez ordered the expropriation of Hipermercado Exito stores
after alleging that the retailer broke the law by raising prices
and hoarding goods.
According to the report, Venezuela will change its laws if needed
to take over the retailer owned by Casino Guichard Perrachon SA of
Saint-Etienne, France and Almacenes Exito SA of Medellin,
Colombia. "I order that we develop a dossier and prepare a new
law to take over the Exito chain," the report quoted President
Chavez as saying. "Repricing and hoarding, what is this? You have
to respect our house," he added.
President Chavez's government, the report recalls, closed four
Exito outlets for a day because the company allegedly increased
prices following a January 11 currency devaluation. The closures
didn't have a financial effect, Almacenes Exito, Colombia's
biggest retailer, said in a Jan. 12 securities filingobtained by
the news agency. Almacenes Exito owns a minority stake and
licenses the name to the Venezuelan retail chain, the company
added.
Mr. Chavez, the report notes, said that the stores currently
occupied by Hipermercado Exito will become socialist markets
selling goods at controlled prices.
Mr. Chavez, the report adds, is seeking to restrain price
increases in the wake of his devaluation of the bolivar currency.
PETROLEOS DE VENEZUELA: Supplier Debts Have "Vanished," Pres. Says
------------------------------------------------------------------
Petroleos de Venezuela SA's debts to oil-service suppliers have
"vanished," Jose Orozco and Daniel Cancel at Bloomberg News
report, citing PDVSA President Rafael Ramirez.
According to the report, PDVSA owed oil-service suppliers,
including drilling companies Schlumberger Ltd. and Helmerich &
Payne Inc., as much as US$5 billion in October and had debts of
US$7.56 billion at the end of 2008. "The debts vanished," the
report quoted Ramirez as saying. "We're up to date with our
service providers and in a situation of equilibrium," he added.
PDVSA, the report recalls, sold US$6.3 billion of bonds last year
to help reduce debts, and also cut managers' pay by 20% after
first-half profit fell 67 percent from the year- earlier period.
In early 2009, the report notes, Venezuela cut more than 300,000
barrels a day of production to comply with OPEC quotas to bolster
the price of oil.
About PDVSA
Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's
state oil company in charge of the development of the petroleum,
petrochemical, and coal industry, as well as planning,
coordinating, supervising, and controlling the operational
activities of its divisions, both in Venezuela and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to
Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon
notes due in 2011. These notes will be registered at Euroclear
or Clearstream. Proceeds from the issuance are expected to be
used to fund capital expenditures and for other general corporate
purposes. Fitch also has these ratings on PDVSA:
-- Foreign currency Issuer Default Rating 'B+'
-- Local currency IDR 'B+'
-- US$3 billion outstanding senior notes (due 2017) 'B+/RR4'
-- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4'
-- US$1.5 billion outstanding senior notes (due 2037) 'B+/R
PETROLEOS DE VENEZUELA: Petrocaribe Makes Headway in 2009
---------------------------------------------------------
Petrocaribe took firm steps towards integration and regional
development. Despite the world financial crisis, the members of
the cooperation scheme count on one of the few alternatives to
work on energy sovereignty and protect their peoples against
poverty.
With a view to fostering fairer trade exchange that benefits and
strengthens the whole region, progress was made in the payment
schedule of a portion of the oil bill with goods and services
needed by Venezuela. The exchange makes economic room for joint
efforts in taking care of common troubles, such as food security,
and also encourages local production.
In this regard, Nicaragua provided Venezuela with heifers, black
beans, milk, beef, and soy oil. In the next few months, the
Dominican Republic will deliver glucose syrup and beans, and the
Cooperative Republic of Guyana will supply about 50,000 tons of
rice.
The Corporation of Provisioning and Agricultural Services, the
Venezuelan Agrarian Corporation, PDVAL, and the Mercal network
have made provisions for import and distribution of foodstuffs to
reach Venezuelans' tables.
Stronger supply
PDVSA enhanced hydrocarbons exports under Petrocaribe; as of
December 2009, exports stood at 105,000 bpd. This amounts to 4%
only out of the Venezuelan oil exports.
Average funding of Petrocaribe supplies stood at 40%. This made a
very positive impact on Member States, as it energized their
economies and helped implement social and socio-productive
projects to fight poverty and exclusion.
Also, greater efforts were made to minimize costs; invigorate
transportation of crude oil and byproducts, and improve supply and
logistics strategies. For this purpose, Sandino and Peti¢n ships
started operations. The vessels are owned and managed by
Transalba, a Cuban-Venezuelan mixed company.
The move helped to make strides in the fight against speculation
of energy transnational companies and middlemen. In this way,
Venezuela increased its involvement in its natural area, not only
because of geographical proximity, but also because of cultural
and historical affinity among the Caribbean peoples. Direct deals
between States also enabled each country to better manage its
energy resources.
Sovereign facilities
Infrastructure projects continued making headway to give the
Caribbean ready access to reliable energy supply. Noteworthy, in
Dominica the Wai'tukubuli fuel storage and distribution plant,
with a capacity of 39 MB, opened.
The facilities supply 100% of the diesel required in the island
for power generation. It also includes facilities for handling of
gasoline, jet fuel (Jet A1), and filling of up to 20,000 canisters
of liquefied petroleum gas (LPG) a month. The government of
Dominica devised a social program whereby the underprivileged are
provided with gas canisters.
Similar projects are moving forward in Saint Vincent and the
Grenadines and Grenada in order to enable each of these nations
the sovereign management of hydrocarbons. In both countries, the
engineering of the first stage of the sea terminal was completed.
Works included the design of boys, chains and mooring.
In Saint Vincent and the Grenadines, the two first tanks, each of
10 MB of diesel, of a plant which will store 34 MB are being
built. In Grenada, the detail engineering of a 41 MB plant is
taking place.
Also in Grenada an 18 MB tank for storage and supply of diesel to
Grenada Electricity Services started to be built. In Saint Kitts
and Nevis, the storage capacity of state-run corporation St. Kitts
Electricity Department has been enlarged with a 5MB tank built in
Need Must.
Technology transfer
In Nicaragua, basic engineering of the supply center of future El
Supremo Sue¤o de Bol”var industrial complex, located in Miramar,
started. In all the works, there is technology and know-how
transfer to enhance technical and human capabilities of local
workers.
Additionally, power generation plants were built in Nicaragua
(40.8 MW) and Haiti (60 MW), the poorest countries in the region.
For the sake of self-development
Based on an exclusively social approach, several projects related
to health care, education, road serviceability, drinking water
supply and housing were backed by the ALBA Caribbean Fund. To
date, the fund has allocated US$178 million to 85 projects in 11
countries in the region, and US$29 million to three electric power
reimbursable projects.
By means of the ALBA Food initiative, 12 agro-food proposals were
funded in nine countries for a total amount of US$24.3 million.
The cash comes from a fund established with contributions
tantamount to USD 0.5 per each oil barrel exported by Venezuela ?
besides cooperation agreements. In 2008, Venezuelan oil prices
were over USD 100.
The goal is to pursue socio-production initiatives from the very
communities towards self-development, independence and empowerment
of the poorest.
About PDVSA
Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's
state oil company in charge of the development of the petroleum,
petrochemical, and coal industry, as well as planning,
coordinating, supervising, and controlling the operational
activities of its divisions, both in Venezuela and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to
Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon
notes due in 2011. These notes will be registered at Euroclear
or Clearstream. Proceeds from the issuance are expected to be
used to fund capital expenditures and for other general corporate
purposes. Fitch also has these ratings on PDVSA:
-- Foreign currency Issuer Default Rating 'B+'
-- Local currency IDR 'B+'
-- US$3 billion outstanding senior notes (due 2017) 'B+/RR4'
-- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4'
-- US$1.5 billion outstanding senior notes (due 2037) 'B+/R
* VENEZUELA: Oil Production Unaffected By Power Cuts
----------------------------------------------------
The head of state oil firm Petroleos de Venezuela reiterated that
government-ordered electricity rationing to offset shortages isn't
hurting oil production because most drilling sites use power
plants that are off the national grid, Dan Molinski at Dow Jones
Newswires reports. "We haven't had any affect to production, or
to upgrading activity or to refining," the report quoted PDVSA
President Rafael Ramirez, as saying. "Most of the operational
areas generate their own electricity," he added.
Still, the report notes, President Hugo Chavez indicated later
Friday that in many cases PDVSA and private companies are in fact
using electricity from the national system, and said that should
change. "PDVSA needs to build its own plants," President Chavez
added.
According to the report, Venezuela is facing an electricity crisis
as a drought and rising demand has caused water levels at the
country's main hydropower dam, the Guri, to drop toward critically
levels, putting it at risk of collapse. Dow Jones says that the
Guri supplies 73% of the country's electricity.
The report relates that to reduce stress on the Guri and other
overstretched hydropower plants, the government ordered four-hour
power blackouts every other day in areas throughout the nation.
However, the report notes, President Hugo Chavez canceled
"indefinitely" the blackouts in the capital city of Caracas,
saying the government made significant errors in implementing the
power outages.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week January 11 to January 15, 2010
-----------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
ARGENT-$DIS 8.2812/31/2033 USD 74.9125
ARGENT-PAR 1.1812/31/2038 ARS 38.6812515
ARGENT-=DIS 7.8212/31/2033 EUR 60.9166667
ARGNT-BOCON PR13 23/15/2024 ARS 74.9923229
BUENOS AIRE PROV 9.3759/14/2018 USD 69.1247223
BUENOS AIRE PROV 9.6254/18/2028 USD 66.853642
BUENOS-$DIS 9.254/15/2017 USD 74.9163185
MENDOZA PROVINCE 5.59/4/2018 USD 71.6866801
CAYMAN ISLAND
BARION FUNDING 0.6312/20/2056 GBP 17.6306725
BARION FUNDING 1.4412/20/2056 GBP 30.8493851
BISHOPSGATE ASSE 4.8088/14/2044 GBP 67.7348328
CHINA MED TECH 48/15/2013 USD 64.125
CHINA PROPERTIES 9.1255/4/2014 USD 77.7171294
CHINA SUNERGY 4.756/15/2013 USD 65.663
DUBAI HLDNG COMM 4.751/30/2014 EUR 63.4983152
DUBAI HLDNG COMM 62/1/2017 GBP 54.85315
GOL FINANCE 8.75#N/A N Ap USD 82
LDK SOLAR CO LTD 4.754/15/2013 USD 74.375
LDK SOLAR CO LTD 4.754/15/2013 USD 74.3320007
MAZARIN FDG LTD 1.449/20/2068 GBP 28.2307741
MAZARIN FDG LTD 0.639/20/2068 GBP 14.50198
PUBMASTER FIN 6.9626/30/2028 GBP 66.5635829
PUBMASTER FIN 8.446/30/2025 GBP 72.0145035
SHINSEI FIN CAYM 6.418#N/A N Ap USD 57.451585
SHINSEI FIN CAYM 6.418#N/A N Ap USD 57.55
SHINSEI FINANCE 7.16#N/A N Ap USD 58
SHINSEI FINANCE 7.16#N/A N Ap USD 56.425
SMFG PREFERRED 6.164#N/A N Ap GBP 77.4529464
XL CAPITAL LTD 6.5#N/A N Ap USD 75
PUERTO RICO
PUERTO RICO CONS 6.54/1/2016 USD 62.5
PUERTO RICO CONS 6.25/1/2017 USD 54.85
VENEZUELA
PETROLEOS DE VEN 5.54/12/2037 USD 44.3609725
PETROLEOS DE VEN 4.910/28/2014 USD 57.3759972
PETROLEOS DE VEN 510/28/2015 USD 52.0873222
PETROLEOS DE VEN 5.3754/12/2027 USD 44.704795
PETROLEOS DE VEN 5.254/12/2017 USD 55.4247732
PETROLEOS DE VEN 5.12510/28/2016 USD 49.556061
VENEZUELA 5.752/26/2016 USD 65.43058
VENEZUELA 712/1/2018 USD 64.125
VENEZUELA 7.7510/13/2019 USD 65.84375
VENEZUELA 612/9/2020 USD 55.46
VENEZUELA 95/7/2023 USD 67.75
VENEZUELA 8.2510/13/2024 USD 62.9375
VENEZUELA 7.654/21/2025 USD 59.53
VENEZUELA 9.259/15/2027 USD 73.66666
VENEZUELA 9.259/15/2027 USD 63.223886
VENEZUELA 9.255/7/2028 USD 67.85
VENEZUELA 73/31/2038 USD 55.67
VENZOD - 189000 9.3751/13/2034 USD 68.125
***********
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 2010. 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
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Information contained herein is obtained from sources believed to
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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
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contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *