/raid1/www/Hosts/bankrupt/TCRLA_Public/100125.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 25, 2010, Vol. 11, No. 016
Headlines
B E R M U D A
EA HOLDINGS: Creditors' Proofs of Debt Due on February 3
EA HOLDINGS: Members to Receive Wind-Up Report on February 24
ELWP FINANCE: Creditors' Proofs of Debt Due on February 3
ELWP FINANCE: Members to Receive Wind-Up Report on February 24
NORWALK MARINE: Creditors' Proofs of Debt Due on February 3
NORWALK MARINE: Members to Receive Wind-Up Report on February 24
B R A Z I L
AES CORP: Sells Cemig Stake, Ends Dispute With Banco Nacional
BANCO NACIONAL: AES Sells Cemig Stake, Ends Dispute With Firm
COMPANHIA ENERGETICA: Aes Corp Sells Stake in Firm
VANGUARDA DO BRASIL: Fitch Assigns 'B-' Issuer Default Rating
VANGUARDA PARTICIPACOES: Moody's Assigns 'B3' Corp. Family Rating
VANGUARDA PARTICIPACOES: S&P Assigns 'B-' Corporate Credit Rating
* BRAZIL: IMF Signs US$10BB Note Purchase Deal W/ Country
C A Y M A N I S L A N D S
AMP CDO 2007-2: Commences Wind-Up Proceedings
ARISTEIA SPECIAL: Commences Liquidation Proceedings
BESTWELL CORPORATION: Commences Wind-Up Proceedings
CHEYNE SELECT: Commences Wind-Up Proceedings
DIAMOND BLANC: Commences Wind-Up Proceedings
DIAMOND GRIS: Commences Wind-Up Proceedings
EP RE: Commences Wind-Up Proceedings
FOUNDING PARTNERS: Court Enters Wind-Up Order
GILDALE INTERNATIONAL: Commences Wind-Up Proceedings
GS BROOK: Commences Wind-Up Proceedings
GS BROOK: Commences Wind-Up Proceedings
H&F PROSIEBEN: Commences Liquidation Proceedings
HYDRA INVSTMENTS: Commences Wind-Up Proceedings
JUKEBOX LP: Court Enters Wind-Up Order
KING & SHAXSON: Commences Wind-Up Proceedings
KING & SHAXSON: Commences Liquidation Proceedings
MARINER-DOLPHIN: Commences Wind-Up Proceedings
NIXBURG COMPANY: Commences Wind-Up Proceedings
OCCAM VECTIS: Commences Wind-Up Proceedings
ORIZZONTE INVESTMENT: Commences Wind-Up Proceedings
PETERSON CO: Commences Wind-Up Proceedings
PLATINUM REAL: Commences Wind-Up Proceedings
PORTCULLIS INVESTMENTS: Commences Wind-Up Proceedings
RELATIVE VALUE: Commences Wind-Up Proceedings
RELATIVE VALUE: Commences Wind-Up Proceedings
RELATIVE VALUE: Commences Wind-Up Proceedings
SEVERIN PROPERITES: Commences Liquidation Proceedings
SHANA LTD: Commences Liquidation Proceedings
SHANTARIS LIMITED: Commences Wind-Up Proceedings
SPARCO INVSTMENTS: Commences Wind-Up Proceedings
C O L O M B I A
BANCO DE BOGOTA: To Sell Up To COP1.5 Trillion in Local Bonds
G U A T E M A L A
* GUATEMALA: IDB Makes 1st Loan to a Guatemalan Bank Under TFF
J A M A I C A
AIR JAMAICA: Pilots Confident in Their Takeover Bid
CABLE & WIRELESS: Privy Council Dismisses Digicel Appeal
DIGICEL GROUP: Privy Council Dismisses Digicel Appeal
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Debt Jumps 42% in 2009
X X X X X X X X
* BOND PRICING: For the Week January 18 to January 22, 2009
- - - - -
=============
B E R M U D A
=============
EA HOLDINGS: Creditors' Proofs of Debt Due on February 3
--------------------------------------------------------
The creditors of EA Holdings Limited are required to file their
proofs of debt by February 3, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on January 12, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
EA HOLDINGS: Members to Receive Wind-Up Report on February 24
-------------------------------------------------------------
The members of EA Holdings Limited will receive, on February 24,
2010, 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 January 12, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
ELWP FINANCE: Creditors' Proofs of Debt Due on February 3
---------------------------------------------------------
The creditors of ELWP Finance Ltd. are required to file their
proofs of debt by February 3, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on January 20, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
ELWP FINANCE: Members to Receive Wind-Up Report on February 24
--------------------------------------------------------------
The members of ELWP Finance Ltd. will receive, on February 24,
2010, 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 January 20, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
NORWALK MARINE: Creditors' Proofs of Debt Due on February 3
-----------------------------------------------------------
The creditors of Norwalk Marine International, Ltd. are required
to file their proofs of debt by February 3, 2010, to be included
in the company's dividend distribution.
The company commenced wind-up proceedings on January 19, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
NORWALK MARINE: Members to Receive Wind-Up Report on February 24
----------------------------------------------------------------
The members of Norwalk Marine International, Ltd. will receive, on
February 24, 2010, 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 January 19, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
===========
B R A Z I L
===========
AES CORP: Sells Cemig Stake, Ends Dispute With Banco Nacional
-------------------------------------------------------------
A unit of global power company AES Corp has sold its stake in
Companhia Energetica de Minas Gerais (Cemig) in a deal that ended
a $2.1 billion dispute with Banco Nacional de Desenvolvimento
Economico e Social SA, Brian Ellsworth at Reuters reports. The
report relates that AES's Southern Electric Brasil division sold
its 14% stake in Cemig in late December to construction company
Andrade Gutierrez, which will assume payment of a disputed loan.
According to the report, an unnamed bank spokesman said that
Andrade Gutierrez will pay BNDES US$500 million up front and the
remainder in 10-year debentures in a deal that the bank supports
but still needs to be approved by courts.
BNDES, the report notes, had accused Southern Electric Brasil of
falling behind in payments on a loan, originally for $600 million,
to buy a stake in Cemig. The report relates that the bank had
sued and won court orders blocking AES from selling its Cemig
shares without its approval.
As reported in the Troubled Company Reporter-Latin America on
January 21, 2010, Dow Jones Newswires said that the AES
Corporation is closer to giving up its five seats on the 14 member
board of directors at major Cemig. The report related that if AES
passes on its BRL2.1 billion (US$1.17 billion) debt owed to BNDES,
associated with Cemig, conglomerate Andrade Gutierrez will assume
the AES loan, taking over the 14% stake and voting rights on the
Cemig board held by AES. According to the report, citing Valor
Economico business daily, Andrade had indeed assumed AES's debt to
BNDES and would take the electric power company's stake in Cemig.
About BNDES
Banco Nacional de Desenvolvimento Economico e Social SA is
Brazil's national development bank. It provides financing for
projects within Brazil and plays a major role in the
privatization programs undertaken by the federal government.
* * *
Banco Nacional continues to carry a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service.
About Companhia Energetica
Companhia Energetica de Minas Gerais a.k.a. Cemig --
http://www.cemig.com.br/-- is an electric energy utility in
Brazil. Cemig's concession area extends throughout nearly 96.7%
of Minas Gerais. Cemig owns and operates 52 power plants, of
which six are in partnership with private enterprises, relying
on a predominantly hydroelectric energy matrix. Electric energy
is produced to supply more than 17 million people living in the
state's 774 municipalities. In addition to those 52 plants,
another three are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
* * *
As of October 19, 2009, the company continues to carry Moody's Ba1
LC currency Issuer rating.
About AES Corporation
The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of
the world's largest global power companies, with 2007 revenues of
US$13.6 billion. With operations in 29 countries on five
continents, AES's generation and distribution facilities have the
capacity to serve 100 million people worldwide.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 7, 2009, Fitch Ratings affirmed The AES Corporation's long-
term Issuer Default Rating at 'B+' with a Stable Rating Outlook.
BANCO NACIONAL: AES Sells Cemig Stake, Ends Dispute With Firm
-------------------------------------------------------------
A unit of global power company AES Corp has sold its stake in
Companhia Energetica de Minas Gerais (Cemig) in a deal that ended
a $2.1 billion dispute with Banco Nacional de Desenvolvimento
Economico e Social SA, Brian Ellsworth at Reuters reports. The
report relates that AES's Southern Electric Brasil division sold
its 14% stake in Cemig in late December to construction company
Andrade Gutierrez, which will assume payment of a disputed loan.
According to the report, an unnamed bank spokesman said that
Andrade Gutierrez will pay BNDES US$500 million up front and the
remainder in 10-year debentures in a deal that the bank supports
but still needs to be approved by courts.
BNDES, the report notes, had accused Southern Electric Brasil of
falling behind in payments on a loan, originally for $600 million,
to buy a stake in Cemig. The report relates that the bank had
sued and won court orders blocking AES from selling its Cemig
shares without its approval.
As reported in the Troubled Company Reporter-Latin America on
January 21, 2010, Dow Jones Newswires said that the AES
Corporation is closer to giving up its five seats on the 14 member
board of directors at major Cemig. The report related that if AES
passes on its BRL2.1 billion (US$1.17 billion) debt owed to BNDES,
associated with Cemig, conglomerate Andrade Gutierrez will assume
the AES loan, taking over the 14% stake and voting rights on the
Cemig board held by AES. According to the report, citing Valor
Economico business daily, Andrade had indeed assumed AES's debt to
BNDES and would take the electric power company's stake in Cemig.
About BNDES
Banco Nacional de Desenvolvimento Economico e Social SA is
Brazil's national development bank. It provides financing for
projects within Brazil and plays a major role in the
privatization programs undertaken by the federal government.
* * *
Banco Nacional continues to carry a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service.
About Companhia Energetica
Companhia Energetica de Minas Gerais a.k.a. Cemig --
http://www.cemig.com.br/-- is an electric energy utility in
Brazil. Cemig's concession area extends throughout nearly 96.7%
of Minas Gerais. Cemig owns and operates 52 power plants, of
which six are in partnership with private enterprises, relying
on a predominantly hydroelectric energy matrix. Electric energy
is produced to supply more than 17 million people living in the
state's 774 municipalities. In addition to those 52 plants,
another three are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
* * *
As of October 19, 2009, the company continues to carry Moody's Ba1
LC currency Issuer rating.
About AES Corporation
The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of
the world's largest global power companies, with 2007 revenues of
US$13.6 billion. With operations in 29 countries on five
continents, AES's generation and distribution facilities have the
capacity to serve 100 million people worldwide.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 7, 2009, Fitch Ratings affirmed The AES Corporation's long-
term Issuer Default Rating at 'B+' with a Stable Rating Outlook.
COMPANHIA ENERGETICA: Aes Corp Sells Stake in Firm
--------------------------------------------------
A unit of global power company AES Corp has sold its stake in
Companhia Energetica de Minas Gerais (Cemig) in a deal that ended
a $2.1 billion dispute with Banco Nacional de Desenvolvimento
Economico e Social SA, Brian Ellsworth at Reuters reports. The
report relates that AES's Southern Electric Brasil division sold
its 14% stake in Cemig in late December to construction company
Andrade Gutierrez, which will assume payment of a disputed loan.
According to the report, an unnamed bank spokesman said that
Andrade Gutierrez will pay BNDES US$500 million up front and the
remainder in 10-year debentures in a deal that the bank supports
but still needs to be approved by courts.
BNDES, the report notes, had accused Southern Electric Brasil of
falling behind in payments on a loan, originally for $600 million,
to buy a stake in Cemig. The report relates that the bank had
sued and won court orders blocking AES from selling its Cemig
shares without its approval.
As reported in the Troubled Company Reporter-Latin America on
January 21, 2010, Dow Jones Newswires said that the AES
Corporation is closer to giving up its five seats on the 14 member
board of directors at major Cemig. The report related that if AES
passes on its BRL2.1 billion (US$1.17 billion) debt owed to BNDES,
associated with Cemig, conglomerate Andrade Gutierrez will assume
the AES loan, taking over the 14% stake and voting rights on the
Cemig board held by AES. According to the report, citing Valor
Economico business daily, Andrade had indeed assumed AES's debt to
BNDES and would take the electric power company's stake in Cemig.
About BNDES
Banco Nacional de Desenvolvimento Economico e Social SA is
Brazil's national development bank. It provides financing for
projects within Brazil and plays a major role in the
privatization programs undertaken by the federal government.
* * *
Banco Nacional continues to carry a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service.
About Companhia Energetica
Companhia Energetica de Minas Gerais a.k.a. Cemig --
http://www.cemig.com.br/-- is an electric energy utility in
Brazil. Cemig's concession area extends throughout nearly 96.7%
of Minas Gerais. Cemig owns and operates 52 power plants, of
which six are in partnership with private enterprises, relying
on a predominantly hydroelectric energy matrix. Electric energy
is produced to supply more than 17 million people living in the
state's 774 municipalities. In addition to those 52 plants,
another three are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
* * *
As of October 19, 2009, the company continues to carry Moody's Ba1
LC currency Issuer rating.
About AES Corporation
The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of
the world's largest global power companies, with 2007 revenues of
US$13.6 billion. With operations in 29 countries on five
continents, AES's generation and distribution facilities have the
capacity to serve 100 million people worldwide.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 7, 2009, Fitch Ratings affirmed The AES Corporation's long-
term Issuer Default Rating at 'B+' with a Stable Rating Outlook.
VANGUARDA DO BRASIL: Fitch Assigns 'B-' Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has assigned these initial ratings to Vanguarda do
Brasil S.A., a wholly-owned subsidiary of Vanguarda Participacoes
S.A:
Vanguarda do Brasil S.A
-- Local currency Issuer Default Rating of 'B-';
-- Foreign currency IDR of 'B-';
-- National scale rating of 'BB(bra)'.
Simultaneously, Fitch has assigned an expected rating of 'B-/RR4'
to the proposed US$200 million issuance by Vanguarda do Brasil
S.A.
The Rating Outlook for all these ratings is Stable.
The ratings are supported by the company's leading position in the
production of soybean and cotton in Brazil and its vertical
integration into animal proteins. Balanced against these credit
strengths are high leverage and weak liquidity, as well as the
company's exposure to volatile commodity prices and working
capital requirements. Timing of the completion of pending changes
in both corporate governance and risk management remain uncertain.
Highly Productive Land and Soybean Production Leadership:
Vanguarda is one of the leading producers of soybeans and cotton
in Brazil. The company, and the controlling family, own 66,000
hectares of land and manage 150,000 hectares of highly productive
land, which are primarily located in the state of Mato Grosso. In
2010, the controlling family is expected to transfer its remaining
interests of 72% in the 66,000 hectares of land to the company.
Given the weather conditions, topography, and operating expertise
of Vanguarda, the land managed by the company is amongst the most
productive in the world, yielding 3.12 tons of soybeans per
hectare during the 2008/2009 crop, which equates to approximately
46 bushels per acre. Vanguarda has also been able to harvest a
secondary crop (cotton and corn) on approximately half of its
land. Going forward Fitch expects the company's grain and cotton
production to continue to increase as it leases more land, and
improves its output per hectare.
For the latest 12 months (LTM) ended Sept. 30, 2009, Vanguarda's
revenues totaled US$375 million, of which 69% was generated by
sales of non-genetically modified organisms (non-GMO) soybean
sales. The state of Mato Grosso only allows non-GMO soybean
production, which grants a pricing premium in the international
markets. Cotton, corn, hogs and cattle represented 19%, 6%, 5%
and 2% of total sales, respectively.
Grain Diversification and Protein Vertical Integration Reduces
Cash Flow Volatility:
Soybean prices are volatile and output can be negatively affected
by plagues and weather conditions. To mitigate some of the cash
flow volatility associated with these conditions, the company has
integrated into hogs and feeder cattle. The production of a
secondary crop also helps to offset the high working capital
requirements of the planting season for soybeans, as does the
leasing of land in the Brazilian state of Bahia, which has a
different crop cycle than the farms in Mato Grosso. The feeder
cattle business generates funds from September to November, a
period of time when working capital needs are high for soybean
planting, while the hog business generates funds during the entire
year. In 2010, the company plans to rebuild its feeder cattle
business, which declined substantially during the past year due to
a lack of available credit in the industry to support working
capital, i.e. feeder cattle purchases. The company also plans to
expand its hog operations from its current capacity of 150,000
heads per year (hpy) to 682,000 hpy in 2014. With this expansion,
animal protein sales are expected to represent approximately 50%
of the company's total revenues within the next five years up,
from 7% during the LTM ended September 30, 2009. Most of the
feedstock for the company's pork and cattle businesses is grown
internally.
High Leverage Metrics:
As of September 2009, Vanguarda's leverage, as measured by total
debt-to-EBITDA, improved to 2.3 times from 2.9x in 2008. The
company's EBITDA increased by US$9 million to US$57 million while
debt remained relatively constant at US$133 million. A strong
soybean crop was the key driver for the EBITDA improvement.
Adjusting for operating leases and other off-balance sheet
liabilities, leverage was 3.3x. The proceeds from the proposed
US$200 million bond issuance will be used to refinance short-term
debt and to reduce accounts payable. On a pro-forma basis, the
company's debt is projected to increase by US$96 million to
US$229 million.
Fitch expects Vanguarda's fourth-quarter results to be weak due to
limited cattle sales, which resulted from the company's inability
to obtain credit earlier in the year to purchase feeder cattle.
The combination of a weak fourth quarter, plus the additional
debt, should result in the company's LTM adjusted leverage
climbing to more than 5.0x. Fitch expects adjusted leverage to
return to close to 5.0x in 2010 and remain within a range of 4.0x
to 5.0x during the next five years, as the company carries out the
expansion of its hog and cattle businesses.
In addition to evaluating traditional credit measures, Fitch's
analysis of agricultural companies takes into consideration
leverage ratios that exclude debt used to finance readily
marketable inventories. Interest expense on debt used to finance
RMI is reclassified to cost of goods sold from interest expense.
With the adjustments described above, Vanguarda's total
debt/EBITDA was 1.1x for the LTM ended Sept. 30, 2009 and its
EBITDA/interest expense ratio was 1.9x.
Weak Liquidity And Negative Free Cash Flow Generation:
Despite Vanguarda's weak liquidity, it survived the global
liquidity crunch which resulted in the bankruptcy of several
Brazilian agribusinesses by leveraging its good relationships with
banks and suppliers as well as cutting investments in its
intensive working capital cattle business. The company's
liquidity relies primarily on working capital loans from banks,
suppliers and advances from customers. As of Sept. 30, 2009,
Vanguarda had US$133 million in total debt, of which
US$114 million was short-term. Cash on hand amounted to
US$2 million. With the proposed US$200 million note issuance
liquidity improves significantly and refinancing risk diminishes.
Long-term debt maturities are quite manageable with only
US$2.3 million during the fourth quarter of 2009, US$8.5million
during 2010 and US$4.5 million during 2011.
The credit crunch in the financial markets early in 2009 led to
diminished revenues in Vanguarda's animal protein businesses due
to lack of available credit to buy calves. Capex and working
capital requirements will be even higher in the future due to the
expansion of the company's hog operations and as the company
rebuilds its cattle breeding operations. As a result, Fitch
expects free cash flow generation to remain negative for the most
part until the expansion of the hog operations reaches its goal of
682,000 hpy capacity during 2014.
The company is seeking to finance its hog raising operations with
funding through Brazil's development bank, BNDES. The first leg
of these loans is expected to be granted in early 2010.
Vanguarda's cost of financing ranges from 6% to 16.62%, averaging
about 10%. Advances from customers which amounted to
US$62 million as of Sept. 30, 2009, bear a real interest rate of
12% in U.S. dollars. Hence a reduction of these advances with the
bond proceeds could improve margins.
Pending Changes In Corporate Governance And Risk Management
Policies:
Since the reorganization of the company from a family business
into an LLC corporation in 2007, when UBS Pactual invested
BRL111 million for a 10% equity stake of the company, Vanguarda
has made progress in improving its corporate governance. The
company has in place a seven-member board of directors including
one representative of UBS Pactual and two independent directors
(one of which still has to be named) and is putting in place an
audit committee. In September 2009, UBS Pactual sold 1% of its
stake in the company to Otaviano Pivetta (the controlling
shareholder) and still has a put option to sell the remaining 9%
stake to Mr. Otaviano, or the company, over the next five years
for US$63 million if an Initial Public Offering has not taken
place; the company is planning to issue equity in an IPO during
2010. Return of 100% control to the Pivetta family remains
possible and holds the potential to slow improvements in this
area. Further, any increase in net leverage to finance the put
option, i.e. no third party equity take-out, could pressure
credit quality.
Approximately 75% of Vanguarda's revenues, costs and debt are
denominated in U.S. dollars. Until 2008, the company hedged the
timing difference of its foreign exchange exposure with non-
deliverable forwards and would lock-in the price of
fertilizers/chemicals by selling forward to its clients a fixed
amount of its soybean/cotton production. A new hedging policy is
being put in place with the assistance of external consulting
firms and the company wants to be able to buy and sell commodities
in the futures market and will need to enhance its financial
flexibility to do so. The new risk management system is expected
to have value-at-risk limits based on EBITDA and cash flow
amounts. As the recent crisis has demonstrated, many Brazilian
company's have found it difficult to manage currency and commodity
risks through derivatives.
Stable Outlook:
Factors that could result in a positive rating action include the
company's IPO, a sustained adjusted leverage ratio below 4.0x,
reduction of the company's reliance on short-term debt, further
revenue diversification, and/or the successful margin expansion
from its vertical integration growth plans. A rating downgrade
could be triggered by a rise in the company's adjusted leverage to
above 5.0x on a sustained basis, a low level of liquidity, an
inability to roll over short-term credit lines, a continuation of
negative FCF generation and/or a significant deterioration of
operations due to commodity volatility.
The Vanguarda Group is one of Brazil's largest producers of
soybean, cotton and corn over its 150,000 hectares under
management in the states of Mato Grosso and Bahia. The company is
one of the few vertically integrated agricultural producers in
Brazil able to transform a portion of its vegetal protein
production into animal protein through its cattle and pork
operations.
VANGUARDA PARTICIPACOES: Moody's Assigns 'B3' Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Services assigned a provisional (P)B3 local
currency Corporate Family Rating to Vanguarda Participacoes S.A
and also a (P)B3 foreign currency rating to its proposed
guaranteed US$200 million senior unsecured notes due in 2015.
This is the first time Moody's has assigned a rating for
Vanguarda. The rating outlook is stable.
Moody's assigned these ratings:
-- Global local currency scale corporate family rating: (P)B3
-- Guaranteed US$ 200 million in senior unsecured notes due in
2015: (P)B3
The proposed US$ 200 million senior unsecured notes will be issued
by Vanguarda do Brasil S.A., a wholly-owned subsidiary of
Vanguarda and these bonds will be unconditionally and irrevocably
guaranteed by Vanguarda and all of its subsidiaries. Proceeds
from the proposed issuance will be used to repay part of its
short-term debt, working capital loans, accounts payable with
suppliers, and advances from customers. The ratings are assigned
on a provisional basis pending the successful completion of the
planned note offering.
"Vanguarda's B3 rating reflects the company's small size relative
to rated peers, seasonality of its business causing earnings
volatility, concentration of farms in primarily one state in
Brazil and dependency on a few customers and commodities. The
rating also reflects the company's weaker corporate governance
standards compared to most other rated peers, and limited history
of comparable audited quarterly and annual financials, as well as
the perceived challenges to successfully expand its hog production
and cattle breeding businesses on a large and sustainable scale"
explained Moody's VP Senior Analyst, Soummo Mukherjee.
"On the other hand, these negative factors are balanced by the
company's leading position as a producer of soybean, cotton and
corn in Brazil with 27-years of operations and one of the highest
levels of productivity, largely due to its use of higher-
technology, soil treatment and fertilizer application processes.
The company's operating margins and cash flows should also
increasingly benefit from the successful execution of Vanguarda's
vertically integrated business model and crop rotation strategy.
The company also enjoys the benefits of being based in the state
of Mato Grosso, which has favorable climatic conditions that often
result in superior crop yields and premium produce," added Mr.
Mukherjee.
With annual sales of approximately US$ 460 million for the last
twelve months ended in September 30th, 2009, Vanguarda is smaller
than most other rated domestic and global peers. The company
currently has two main business segments that account each for
more than 10% of sales (soy and cotton) and 12 out of the 13 farms
that the company operates are located in the state of Mato Grosso.
The other farm is in the state of Bahia. Such geographic
concentration of operations makes Vanguarda more susceptible to
animal or plant disease, adverse weather conditions and other
unpredictable local conditions that may negative impact its
earnings or cash flows. To mitigate the risk of geographic
concentration, however, Vanguarda operates its 12 farms in the
state of Mato Grosso, through different agricultural clusters that
are located far apart and are subject to individual climate
variances that partially mitigate potential disease and climate
related risks. Additionally, Vanguarda's farm in the state of
Bahia has different planting and harvesting seasons vis-…-vis
their farms in Mato Grosso because of rainfall patterns, allowing
Vanguarda to transport machinery and employees from the state of
Mato Grosso to the state of Bahia to satisfy a portion of its farm
equipment requirements, while reducing its capital expenditures
and optimizing the use of labor force.
Vanguarda's product diversification is relatively low, with the
company dependent on a few key crops: soybeans and cotton are
expected to account for 55% and 23% of total sales for the 2009/10
harvest, respectively. In addition, the company's products are
sold to a few customers with strong bargaining power. For
example, three customers acquired approximately 95% of their
soybean production in 2008/09.
Going forward, the company intends to further increase its double
crop utilization and increase the vertical integration of its
business through expansion of its production of hogs and cattle,
which should help diversify the operating risks in its farming
business, lower their production and logistics costs and increase
synergies across business activities, while also minimizing the
effect of the fluctuation in commodity prices on Vanguarda's
business.
Vanguarda currently has 76% of its arable land operated under
lease agreements, with an average term of 9.1 years. The payments
under Vanguarda's leases are governed by a fixed number of soybean
bags per hectare, thereby linking lease costs to Vanguarda's
production and revenue. Such a large reliance on leased
properties also creates some uncertainties, although so far, none
of Vanguarda's existing land leases have ever been canceled and
Brazilian law provides the lessee with preference rights to
purchase the land or renew the lease upon expiration of lease
agreement.
Improving transparency, quality of disclosure and general
corporate governance remains a challenge for the company despite
hiring KPMG as an auditor in 2007. On December 28, 2007, Law No.
11,638/07 was enacted, requiring Brazilian companies to measure
derivative financial instruments at their fair value at each
reporting date in order to facilitate the convergence of Brazilian
GAAP with IFRS. Vanguarda's accounts prior to 2008 have not been
reclassified following this accounting change in 2008 relating to
derivative instruments, make historical analysis difficult.
Furthermore, while cash flow from operations were positive in each
of the first three quarters of 2009, earnings and operational
margins have been volatile -- before and after considering the
effects of the discontinued trading business (mainly soybean
resales) and gains/losses associated to derivative contracts.
Vanguarda currently obtains a relatively small portion of its
revenues from animal protein production: hog and cattle accounted
for 7.7% and 9.2% of 2008 production sales (excluding revenues
from trading activity), respectively. The company currently
produces 98% of the feedstock used for cattle breeding and 77% of
the feedstock used in their hog operations internally and both
amounts are expected to increase to 100% going forward. This
vertical integration strategy is likely to have a positive impact
on operating margins and will create a natural hedge against input
prices in this segment. At the same time, the company intends to
expand cattle production from 25,000 to 200,000 heads per year by
2011 and expand hog production from 144,000 to 682,000 head per
year, by 2015. The increase in cattle and hog sales should help
smooth volatility of cash flows as cattle and hog are generally
sold throughout the year, while soybean sales are concentrated in
the first and second quarters. This expansion and vertical
integration, if successfully executed, could be credit positive
for Vanguarda's rating.
The rating outlook is stable based on Moody's expectation that
Vanguarda will gradually recover the revenues lost due to the
discontinuation of its trading business by growing its soybean and
cotton businesses (which offer better margins compared to soybean
resales) while expanding its cattle and hog business segments in
2010 and beyond.
Upward pressure on Vanguarda's B3 rating would require a
continuous trend towards better disclosure and evidence of a
reduction of earnings volatility and client concentration, through
the successful execution of the company's operating strategy.
Quantitatively, upward pressure is likely to arise if CFO / Net
Debt improves to above 10% and (RCF -- Capex) / Debt moves towards
positive territory.
A sharp drop in sales and/or profitability caused by the
unsuccessful expansion of the protein businesses or unforeseen
circumstances such as adverse weather conditions affecting crop
output, could negatively impact Vanguarda's rating. Similarly, a
weaker liquidity situation could also put downward pressure on
Vanguarda's current rating. Quantitatively, an increase in Debt /
EBITDA to above 6x and a decrease in EBITA / Interest expense to
below 1.5x would likely cause negative pressure on Vanguarda's
rating or outlook.
Vanguarda is 91% owned by the Pivetta family, with the remaining
9% owned by UBS, with a put option to sell its share over the next
five years.
Based in the state of Mato Grosso, Vanguarda is a leading
Brazilian producer of soybean, cotton and corn and also has
operations in the cattle and hog segments. The total arable land
currently totals 150,000 hectares and the total harvest reached
215,000 hectares in the 2008/09 crop year due to the company's
high double crop utilization. During the 2009/10 crop year,
Vanguarda expects to achieve a total planted area of 230,000
hectares based on a first harvest of 150,000 hectares and a second
harvest of 80,000 hectares. Total sales in the 12-month period
ending September 30, 2009 were BRL 800 million (or
US$460 million).
VANGUARDA PARTICIPACOES: S&P Assigns 'B-' Corporate Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' corporate
credit rating to Brazil-based agricultural company Vanguarda
Participacoes S.A. At the same time, S&P also assigned its 'B-'
rating to the senior notes due 2015 to be issued by Vanguarda do
Brasil S.A., a wholly owned subsidiary of Vanguarda. The outlook
on both is stable.
"The ratings on Vanguarda reflect the company's: aggressive
financial profile, which arises from its weak liquidity and
corporate governance issues; relative weak cash flow; and
significant refinancing needs," said Standard & Poor's credit
analyst Reginaldo Takara. "Vanguarda's operations are exposed to
volatile working capital needs and high capital expenditures in
expansions. Commodity price risk and climate risk are also
relevant factors. These risks are partly mitigated by Vanguarda's
operating vertical integration, an experienced management team
that has allowed the company to weather the recent economic
downturn, some product differentiation, and adequate and
comparatively stable profitability."
The ratings on the bonds are not notched down for structural
subordination because of the corporate guarantees from the
company's operating subsidiaries. Vanguarda currently reports
significant amounts of secured debt, but it will use the proceeds
of the bond to pay down secured working capital bank loans,
bringing secured debt to less than 15% of adjusted total assets.
Vanguarda still reports some weaknesses in its corporate
governance. Although the controlling shareholder, Otaviano
Pivetta, has owned and operated what is now Vanguarda for some 27
years, the company was incorporated only three years ago. In
addition, Vanguarda and its controlling shareholder are still
engaged with each other in certain deals involving cash transfers.
Vanguarda maintains operating and commercial relationships with
other unconsolidated entities that are directly or indirectly
related to Mr. Pivetta, including an agricultural cooperative that
processes and sells all of Vanguarda's mature hogs, a contract for
land exploration in the state of Bahia, a transportation company,
and certain other obligations owed by the Pivetta family to
Vanguarda. The company has striven to improve its financial
statements, but, it still lags relative to publicly held companies
in Brazil.
The stable outlook reflects S&P's expectation that the firm's
liquidity will improve with the new bond issuance and its
financial leverage will decrease gradually, mitigating refinancing
and working capital risks. S&P also take into account the gradual
improvements in the company's corporate governance. "We could
lower the rating if Vanguarda fails to refinance its sizable
short-term debt, liquidity is further constrained, or debt from
financing larger-than-expected investments grows. The rating on
the bond could be lowered if the company fails to maintain its
secured debt at less than 15% of adjusted total assets. A
positive rating action could be warranted if Vanguarda improves
its liquidity or working capital financing, as well as its
corporate governance issues," Mr. Takara added.
* BRAZIL: IMF Signs US$10BB Note Purchase Deal W/ Country
---------------------------------------------------------
The International Monetary Fund (IMF) and Brazil have signed an
agreement under which Brazil would purchase up to US$10 billion in
IMF notes over a period of up to two years. The note purchase
agreement follows the endorsement by the Executive Board on
July 1, 2009 of the framework for issuing notes to the official
sector. The Brazilian authorities had already expressed their
intention to invest in IMF notes.
The agreement offers Brazil a safe investment instrument at the
same time as boosting the Fund's capacity to help its members to
weather the global financial crisis. The Fund can now add these
resources to those already available through agreements signed
with other members, which contribute toward an increase in Fund
resources that was requested in April 2009 by G-20 leaders and the
International Monetary and Financial Committee.
==========================
C A Y M A N I S L A N D S
==========================
AMP CDO 2007-2: Commences Wind-Up Proceedings
---------------------------------------------
AMP CDO 2007-2 commenced wind-up proceedings on November 23, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
ARISTEIA SPECIAL: Commences Liquidation Proceedings
---------------------------------------------------
Aristeia Special Investments, Ltd. commenced liquidation
proceedings on December 18, 2008.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Aristeia Capital, L.L.C.
136 Madison Avenue
New York, New York 10016, U.S.A.
BESTWELL CORPORATION: Commences Wind-Up Proceedings
---------------------------------------------------
Bestwell Corporation commenced wind-up proceedings on November 20,
2009.
Only creditors who were able to file their proofs of debt by
January 8, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Ian Stokoe
c/o Sarah Moxam
Telephone: (345) 914-8634
Facsimile: (345) 945-4237
PO Box 258, Grand Cayman KY1-1104
Cayman Islands
CHEYNE SELECT: Commences Wind-Up Proceedings
--------------------------------------------
Cheyne Select Strategies Fund Inc. commenced wind-up proceedings
on November 11, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman, KY1-9005, Cayman Islands
DIAMOND BLANC: Commences Wind-Up Proceedings
--------------------------------------------
Diamond Blanc Limited commenced wind-up proceedings on November
17, 2009.
Only creditors who were able to file their proofs of debt by
December 18, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Rose Ferguson
Telephone: (345) 949-0355
Facsimile: (345) 949-0360
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
DIAMOND GRIS: Commences Wind-Up Proceedings
-------------------------------------------
Diamond Gris Limited commenced wind-up proceedings on November 17,
2009.
Only creditors who were able to file their proofs of debt by
December 18, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Rose Ferguson
Telephone: (345) 949-0355
Facsimile: (345) 949-0360
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
EP RE: Commences Wind-Up Proceedings
------------------------------------
EP RE Management LDC commenced wind-up proceedings on November 18,
2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005, Cayman Islands
FOUNDING PARTNERS: Court Enters Wind-Up Order
---------------------------------------------
On November 13, 2009, the Grand Court of Cayman Islands entered an
order to have Founding Partners Global Fund Ltd's operations wound
up.
The company's liquidator is:
Ian Stokoe
c/o Elizabeth Osborne
Telephone: (345) 914 8686/ (345) 945 4237
PO Box 258, Grand Cayman KY1-1104
Cayman Islands
GILDALE INTERNATIONAL: Commences Wind-Up Proceedings
----------------------------------------------------
Gildale International Ltd. commenced wind-up proceedings on
November 17, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005, Cayman Islands
GS BROOK: Commences Wind-Up Proceedings
---------------------------------------
GS Brook Street Investors, LLC commenced wind-up proceedings on
November 19, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005, Cayman Islands
GS BROOK: Commences Wind-Up Proceedings
---------------------------------------
GS Brook Street Portfolio, LLC commenced wind-up proceedings on
November 19, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005, Cayman Islands
H&F PROSIEBEN: Commences Liquidation Proceedings
------------------------------------------------
H&F Prosieben Blocker Corp. commenced liquidation proceedings on
November 20, 2009.
Only creditors who were able to file their proofs of debt by
December 28, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers
c/o One Maritime Plaza, 12th Floor
San Francisco, California, 94111
United States of America
HYDRA INVSTMENTS: Commences Wind-Up Proceedings
-----------------------------------------------
Hydra Invstments commenced wind-up proceedings on November 17,
2009.
Only creditors who were able to file their proofs of debt by
December 18, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Rose Ferguson
Telephone: (345) 949-0355
Facsimile: (345) 949-0360
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
JUKEBOX LP: Court Enters Wind-Up Order
--------------------------------------
On October 28, 2009, the Grand Court of Cayman Islands entered an
order to wind up the operations of Jukebox L.P.
The company's liquidators are:
Richard E. L. Fogerty
Chris Kennedy
Telephone: 345 814-4016
Facsimile: 345 946-0082
e-mail: chris.kennedy@zolfocooper.ky
Zolfo Cooper
PO Box 1102, 4th Floor, Bermuda House
George Town, Grand Cayman, Cayman Islands
KING & SHAXSON: Commences Wind-Up Proceedings
---------------------------------------------
King & Shaxson Premier Master Fund Limited commenced wind-up
proceedings on November 13, 2009.
Only creditors who were able to file their proofs of debt by
January 19, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Keith Blake
PO Box 493, Grand Cayman KY1-1106
Cayman Islands
c/o Ann Smith
Telephone: 345-914-4383
Facsimile: 345-949-7164
KING & SHAXSON: Commences Liquidation Proceedings
-------------------------------------------------
King & Shaxson Premier Fund Limited commenced liquidation
proceedings on November 13, 2009.
Only creditors who were able to file their proofs of debt by
January 19, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Keith Blake
PO Box 493, Grand Cayman KY1-1106
Cayman Islands
c/o Ann Smith
Telephone: 345-914-4383
Facsimile: 345-949-7164
P.O. Box 493, Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-949-4800
Facsimile: 345-949-7164
MARINER-DOLPHIN: Commences Wind-Up Proceedings
----------------------------------------------
Mariner-Dolphin Special Opportunities Fund Ltd. commenced
liquidation proceedings on November 5, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman, KY1-9005, Cayman Islands
NIXBURG COMPANY: Commences Wind-Up Proceedings
----------------------------------------------
Nixburg Company Limited commenced wind-up proceedings on
November 11, 2009.
The company's liquidator is:
Lee Osborne
Telephone: 945-8859
Facsimile: 949-9793/4
MBT Trustees Ltd.
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
OCCAM VECTIS: Commences Wind-Up Proceedings
-------------------------------------------
Occam Vectis General Partner Inc. commenced wind-up proceedings on
October 23, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005, Cayman Islands
ORIZZONTE INVESTMENT: Commences Wind-Up Proceedings
---------------------------------------------------
Orizzonte Investment Ltd. commenced wind-up proceedings on
November 24, 2009.
Only creditors who were able to file their proofs of debt by
December 24, 2009, will be included in the company's dividend
distribution.
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
PETERSON CO: Commences Wind-Up Proceedings
------------------------------------------
Peterson Co. Ltd. commenced wind-up proceedings on November 17,
2009.
Only creditors who were able to file their proofs of debt by
December 18, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Rose Ferguson
Telephone: (345) 949-0355
Facsimile: (345) 949-0360
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
PLATINUM REAL: Commences Wind-Up Proceedings
--------------------------------------------
Platinum Real Estate (Cayman) Limited commenced wind-up
proceedings on November 23, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
PORTCULLIS INVESTMENTS: Commences Wind-Up Proceedings
-----------------------------------------------------
Portcullis Investments Ltd. commenced wind-up proceedings on
November 17, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Royhaven Secretaries Limited
c/o Laura Henry
Telephone: 945-4777
Facsimile: 945-4799
P O Box 707, Grand Cayman KY1-1107
Telephone: 945-4777
Facsimile: 945-4799
RELATIVE VALUE: Commences Wind-Up Proceedings
---------------------------------------------
Relative Value Opportunity Fund II, Ltd. commenced wind-up
proceedings on November 19, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005, Cayman Islands
RELATIVE VALUE: Commences Wind-Up Proceedings
---------------------------------------------
Relative Value Opportunity Fund III, Ltd. commenced wind-up
proceedings on November 19, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005, Cayman Islands
RELATIVE VALUE: Commences Wind-Up Proceedings
---------------------------------------------
Relative Value Opportunity Portfolio, Ltd. commenced wind-up
proceedings on November 19, 2009.
Only creditors who were able to file their proofs of debt by
January 7, 2010, will be included in the company's dividend
distribution.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005, Cayman Islands
SEVERIN PROPERITES: Commences Liquidation Proceedings
-----------------------------------------------------
Severin Properites, Ltd. commenced liquidation proceedings on
November 19, 2009.
Only creditors who were able to file their proofs of debt by
December 29, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Andy Tuan Bui
c/o Maples and Calder, Attorneys-at-law
PO Box 309, Ugland House
Grand Cayman KY1-1104, Cayman Islands
SHANA LTD: Commences Liquidation Proceedings
--------------------------------------------
Shana Ltd commenced liquidation proceedings on November 12, 2009.
Only creditors who were able to file their proofs of debt by
December 31, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
UBS Nominees Ltd.
c/o Alan G. de Saram
Telephone: 949-4544
Facsimile: 949-8460
Charles Adams Ritchie & Duckworth
Zephyr House, 122 Mary Street
PO Box 709, Grand Cayman, KY1-1107
Cayman Islands
SHANTARIS LIMITED: Commences Wind-Up Proceedings
------------------------------------------------
Shantaris Limited commenced wind-up proceedings on November 17,
2009.
Only creditors who were able to file their proofs of debt by
December 18, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Rose Ferguson
Telephone: (345) 949-0355
Facsimile: (345) 949-0360
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
SPARCO INVSTMENTS: Commences Wind-Up Proceedings
------------------------------------------------
Sparco Invstments commenced wind-up proceedings on November 17,
2009.
Only creditors who were able to file their proofs of debt by
December 18, 2009, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Rose Ferguson
Telephone: (345) 949-0355
Facsimile: (345) 949-0360
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
===============
C O L O M B I A
===============
BANCO DE BOGOTA: To Sell Up To COP1.5 Trillion in Local Bonds
-------------------------------------------------------------
Banco de Bogota SA plans to sell as much as COP1.5 trillion
(US$759 million) in local bonds to fund its lending business, Inti
Landauro at Dow Jones Newswires reports, citing Chief Financial
Officer Maria Luisa Rojas. The bank will sell the bonds in
several tranches and expects to sell the first batch of bonds in
February, Mr. Rojas told Dow Jones Newswires in an interview.
According to the report, the bank doesn't plan to sell bonds on
the international market.
Headquartered in Santa Fe de Bogota, Colombia, Banco de Bogota
-- http://www.bancodebogota.com-- is a private national bank
involved in all activities associated with a commercial banking
institution as regulated by Colombian law. On a national level,
it also operates through subsidiaries: Corporacion Financiera
Colombiana S.A., an investment bank; Almacenes Generales de
Deposito "Almaviva S.A.", a products supply logistics company;
Sociedad Fiduciaria Bogota "Fidubogota S.A." and Fiduciaria del
Comercio "Fiducomercio S.A.", trust and portfolio investment
companies; Leasing Bogot S.A., a leasing company; Valores
Bogot S.A., a provider of brokerage services; and Fondos de
Pensiones y Cesantias Porvenir, a pensions and suspensions
administrator. The Bank operates 275 offices, five corporate
service centers and a banking attention center. The company
also has affiliates in Panama, Nassau, Miami, and New York.
* * *
As of January 25, 2010, the company continues to carry Moody's Ba2
Foreign LT Bank Deposits rating.
=================
G U A T E M A L A
=================
* GUATEMALA: IDB Makes 1st Loan to a Guatemalan Bank Under TFF
--------------------------------------------------------------
The Inter-American Development Bank signed a loan agreement with
Banco G&T Continental, S.A. to make the first loan to a Guatemalan
Bank under its enhanced Trade Finance Facilitation Program.
The agreement contemplates an up to US70 million in "A" and "B"
loans to G&T under the TFFP. Banco G&T Continental S.A. joined
the IB's Trade Finance Facilitation Program (TFFP) in 2008 and is
one of the most active users since then. "For G&T this is an
operation that strengthens our foreign trade operations and that
supports Guatemala's economy because it increases the funding
available for the industries of our country. This is of great
importance in the actual international context where there is
still some aversion to grant credit facilities, especially in
Central American countries." said Flavio Montenegro, CEO of G&T
Continental.
"In 2009, the TFFP has expanded its benefits to respond to the
financial situation of the international markets and to support
economic reactivation and growth through the expansion of
financing available for international trade activities of Latin
American and Caribbean countries." said IDB Structured and
Corporate Finance Department General Manager Hans Schulz.
The TFFP currently comprises a network of 222 confirming banks
belonging to 87 different international banking groups in over 53
countries, and 59 issuing banks in 18 Latin American and Caribbean
countries with over $993.5 million in approved credit lines. "We
are pleased to make the first loan to a Guatemalan Bank and
continue supporting G&T with its trade finance operations, while
they will benefit from the expanded and new features that the
program now offers" said Daniela Carrera Marquis, Chief of the
Financial Markets Division at the IDB Structured and Corporate
Finance Department.
Banco G&T Continental is one of Guatemala's leading banks, with
its main office in Guatemala City, 216 branches throughout the
country, 20 more branches in the United States, 148 points of
service and 1,422 subagents. It holds total assets of US$3.5
billion and an outstanding loan portfolio of US$1.6 billion.
Banco G&T Continental is an active bank in trade finance; by being
able to receive loans under the TFFP, it will be able to increase
its international business operations.
=============
J A M A I C A
=============
AIR JAMAICA: Pilots Confident in Their Takeover Bid
---------------------------------------------------
The Jamaica Airline Pilots Association is expressing confidence
that it will be able to successfully operate Air Jamaica Limited
if a proposal to be resubmitted to the government is accepted,
Go-Jamaica News reports. However, the report relates, it is a
race against time as the Jamaican government is currently in talks
with the Trinidad & Tobago-based Caribbean Airlines and T&T's
Finance Minister has indicated that a deal is likely to be reached
soon for the sale of Air Jamaica.
According to the report, the pilots association which is
representing the airline's staff is adamant that it will not give
up on their bid for the cash strapped carrier. The report relates
that they are currently working with local and international based
equity partners to identify the funds needed to acquire the
airline.
Go-Jamaica News recalls that at a meeting with the Prime Minister,
the pilots were told that based on their first proposal the
government was not convinced that they could take over the
airline. However, the report says, JALPA President Captain
Russell Capleton said the association's business plan will be
submitted to its equity partners and he expects to have a final
response.
As reported in the Troubled Company Reporter-Latin America on
October 27, 2009, Jamaica Observer said that the JALPA is now
waiting a reply from the Jamaican government after submitting a
bid to acquire Air Jamaica. The report related Captain Capleton
said the association, which comprises the airline's 140 pilots, is
spearheading the acquisition effort on behalf of the national
carrier's staff.
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.
CABLE & WIRELESS: Privy Council Dismisses Digicel Appeal
--------------------------------------------------------
The London-based Privy Council has dismissed an appeal by Digicel
Group against a Court of Appeal ruling for Digicel to pay over
US$340 million to LIME (formerly Cable & Wireless Jamaica).
According to the report, the 2007 Court of Appeal decision was in
relation to a determination made by the Office of Utilities
Regulation (OUR) on the setting of termination rates for calls
from fixed lines to mobile phones.
Following the Appeal Court's decision, Digicel appealed to the
Privy Council.
Go-Jamaica notes that LIME Jamaica's Country Manager, Geoff
Houston has expressed satisfaction with the Privy Council decision
which he says strongly supports the independence of the Regulator,
the Office of Utilities Regulation.
The company, the report relates, also said that the ruling is a
clear indication that at its highest levels, the justice system
also recognizes these facts. LIME was represented at the Privy
Council by attorneys from the firm of Myers, Fletcher & Gordon.
About Digicel Group
Digicel Group -- http://www.digicelgroup.com-- is renowned for
competitive rates, unbeatable coverage, superior customer care, a
wide variety of products and services and state-of-the-art
handsets. By offering innovative wireless services and community
support, Digicel has become a leading brand across its 31 markets
worldwide.
Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide. Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos. The Caribbean company also has coverage
in St. Martin and St. Barths. Digicel Pacific comprises Fiji,
Papua New Guinea, Samoa, Tonga and Vanuatu.
* * *
As of June 25, the company continues to carry these low ratings
from Moody's:
-- LT Corp Family Rating at B2
-- Senior Undecured Debt Rating at Caa1
Lime (formerly Cable & Wireless Jamaica) --
http://home.cwjamaica.com/-- is a provider of national and
international fixed line services. The company is owned 82% by
Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica
Digiport International Limited, a company which provides high
speed data and other telecommunications services exclusively to
freezone and offshore companies.
About Cable & Wireless
Headquartered in London, England, Cable & Wireless plc --
http://www.cw.com/-- is an international telecommunications
company. The Company offers mobile, broadband and domestic and
international fixed line services to homes, small and medium-sized
enterprises, corporate customers and governments. It operates in
39 countries through four major operations in the Caribbean,
Panama, Macau and Monaco & Islands. It operates through two
businesses: International and Europe, Asia & US. Its
International business operates full service telecommunications
companies through four major operations in the Caribbean, Panama,
Macau and Monaco and Islands. Its Europe, Asia & US provides
enterprise and carrier solutions to the largest users of telecom
services across the United Kingdom, continental Europe, Asia and
the United States. Its subsidiaries include Cable & Wireless UK,
Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable &
Wireless (Barbados) Ltd and Monaco Telecom SAM.
* * *
According to Bloomberg data, Cable & Wireless plc continues to
carry Moody's "Ba3"long-term corporate family rating, "B1" senior
unsecured debt rating and "Ba3"probability of default rating with
a stable outlook.
The company continues to Standard & Poor's "BB-"long-term foreign
and local issuer credit ratings and "B" short-term foreign and
local issuer credit ratings.
DIGICEL GROUP: Privy Council Dismisses Digicel Appeal
-----------------------------------------------------
The London-based Privy Council has dismissed an appeal by Digicel
Group against a Court of Appeal ruling for Digicel to pay over
US$340 million to LIME (formerly Cable & Wireless Jamaica).
According to the report, the 2007 Court of Appeal decision was in
relation to a determination made by the Office of Utilities
Regulation (OUR) on the setting of termination rates for calls
from fixed lines to mobile phones.
Following the Appeal Court's decision, Digicel appealed to the
Privy Council.
Go-Jamaica notes that LIME Jamaica's Country Manager, Geoff
Houston has expressed satisfaction with the Privy Council decision
which he says strongly supports the independence of the Regulator,
the Office of Utilities Regulation.
The company, the report relates, also said that the ruling is a
clear indication that at its highest levels, the justice system
also recognizes these facts. LIME was represented at the Privy
Council by attorneys from the firm of Myers, Fletcher & Gordon.
About Digicel Group
Digicel Group -- http://www.digicelgroup.com-- is renowned for
competitive rates, unbeatable coverage, superior customer care, a
wide variety of products and services and state-of-the-art
handsets. By offering innovative wireless services and community
support, Digicel has become a leading brand across its 31 markets
worldwide.
Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide. Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos. The Caribbean company also has coverage
in St. Martin and St. Barths. Digicel Pacific comprises Fiji,
Papua New Guinea, Samoa, Tonga and Vanuatu.
* * *
As of June 25, the company continues to carry these low ratings
from Moody's:
-- LT Corp Family Rating at B2
-- Senior Undecured Debt Rating at Caa1
Lime (formerly Cable & Wireless Jamaica) --
http://home.cwjamaica.com/-- is a provider of national and
international fixed line services. The company is owned 82% by
Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica
Digiport International Limited, a company which provides high
speed data and other telecommunications services exclusively to
freezone and offshore companies.
About Cable & Wireless
Headquartered in London, England, Cable & Wireless plc --
http://www.cw.com/-- is an international telecommunications
company. The Company offers mobile, broadband and domestic and
international fixed line services to homes, small and medium-sized
enterprises, corporate customers and governments. It operates in
39 countries through four major operations in the Caribbean,
Panama, Macau and Monaco & Islands. It operates through two
businesses: International and Europe, Asia & US. Its
International business operates full service telecommunications
companies through four major operations in the Caribbean, Panama,
Macau and Monaco and Islands. Its Europe, Asia & US provides
enterprise and carrier solutions to the largest users of telecom
services across the United Kingdom, continental Europe, Asia and
the United States. Its subsidiaries include Cable & Wireless UK,
Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable &
Wireless (Barbados) Ltd and Monaco Telecom SAM.
* * *
According to Bloomberg data, Cable & Wireless plc continues to
carry Moody's "Ba3"long-term corporate family rating, "B1" senior
unsecured debt rating and "Ba3"probability of default rating with
a stable outlook.
The company continues to Standard & Poor's "BB-"long-term foreign
and local issuer credit ratings and "B" short-term foreign and
local issuer credit ratings.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Debt Jumps 42% in 2009
----------------------------------------------
Petroleos de Venezuela's total debt jumped 42% in 2009 after it
borrowed heavily to pay off service company debts and intervene in
currency markets, Enrique Andres at Reuters reports. The report
relates that PDVSA said that total outstanding debt rose to
US$21.4 billion from US$15.1 billion the year before.
According to the report, PDVSA built up billions of dollars in
debts to service companies after the 2008 collapse of oil prices.
The report relates that the company also issued paper to help prop
up the bolivar currency in the parallel market, where the currency
trades outside the government's currency controls.
President Hugo Chavez, the report notes, devalued the currency and
created a two-tiered system that sells dollars at VEB2.6 per for
imports of high priority goods such as medicine, while buying
dollars from PDVSA at a rate of VEB4.3. The report says that this
is expected to help PDVSA reduce its debt burden and improve its
cash flow, since it will have twice as many bolivars to spend in
Venezuela for each dollar of income.
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$1.5 billion outstanding senior notes (due 2037) 'B+/R
===============
X X X X X X X X
===============
* BOND PRICING: For the Week January 18 to January 22, 2009
-----------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
ARGENT-$DIS 8.28 12/31/2033 USD 68.12708
ARGENT-PAR 1.18 12/31/2038 ARS 37.265
ARGENT-=DIS 7.82 12/31/2033 EUR 58.27
ARGNT-BOCON PR11 2 12/3/2010 ARS 22.91565
ARGNT-BOCON PR13 2 3/15/2024 ARS 72.36667
BOGAR 2018 2 2/4/2018 ARS 122.1913
BUENOS AIRE PROV 9.375 9/14/2018 USD 69.29977
BUENOS AIRE PROV 9.625 4/18/2028 USD 66.18604
BUENOS-$DIS 9.25 4/15/2017 USD 73.57433
MENDOZA PROVINCE 5.5 9/4/2018 USD 74.61038
BRAZIL
CESP 9.75 1/15/2015 BRL 66.13108
CAYMAN ISLAND
BANIF FIN LTD 3 12/31/2019 EUR 74.986
BARION FUNDING 1.44 12/20/2056 GBP 31.48093
BARION FUNDING 0.63 12/20/2056 GBP 18.02821
BCP FINANCE CO 4.239 #N/A N Ap EUR 76.45833
BCP FINANCE CO 5.543 #N/A N Ap EUR 77.42871
BES FINANCE LTD 6.2 2/7/2035 EUR 73.012
BISHOPSGATE ASSE 4.808 8/14/2044 GBP 70.8755
CHINA MED TECH 4 8/15/2013 USD 65
CHINA PROPERTIES 9.125 5/4/2014 USD 84.09288
CHINA SUNERGY 4.75 6/15/2013 USD 68.75
DUBAI HLDNG COMM 6 2/1/2017 GBP 60.04744
DUBAI HLDNG COMM 4.75 1/30/2014 EUR 65.56565
FERTINITRO FIN 8.29 4/1/2020 USD 65.75
GOL FINANCE 8.75 #N/A N Ap USD 89
MAZARIN FDG LTD 1.44 9/20/2068 GBP 28.81371
PUBMASTER FIN 6.962 6/30/2028 GBP 68.5028
PUBMASTER FIN 8.44 6/30/2025 GBP 72.7575
SHINSEI FIN CAYM 6.418 #N/A N Ap USD 62.9783
SHINSEI FIN CAYM 6.418 #N/A N Ap USD 62.8
SHINSEI FINANCE 7.16 #N/A N Ap USD 62.925
SHINSEI FINANCE 7.16 #N/A N Ap USD 58
ECUADOR
REP OF ECUADOR 9.375 12/15/2015 USD 95.73143
JAMAICA
JAMAICA GOVT 8.5 2/28/2036 USD 78
JAMAICA GOVT 8 3/15/2039 USD 74.25
PUERTO RICO
PUERTO RICO CONS 6.5 4/1/2016 USD 46.5
PUERTO RICO CONS 6.2 5/1/2017 USD 54.85
VENEZUELA
PETROLEOS DE VEN 4.9 10/28/2014 USD 61.61541
PETROLEOS DE VEN 5.125 10/28/2016 USD 54.25962
PETROLEOS DE VEN 5.25 4/12/2017 USD 59.54517
PETROLEOS DE VEN 5.375 4/12/2027 USD 48.67695
PETROLEOS DE VEN 5.5 4/12/2037 USD 47.11334
PETROLEOS DE VEN 5 10/28/2015 USD 57.53844
VENEZUELA 9.25 9/15/2027 USD 74.06038
VENEZUELA 9.25 5/7/2028 USD 70.4
VENEZUELA 5.75 2/26/2016 USD 69.85
VENEZUELA 7 12/1/2018 USD 68.66666
VENEZUELA 6 12/9/2020 USD 58.68622
VENEZUELA 9 5/7/2023 USD 71.14025
VENEZUELA 8.25 10/13/2024 USD 65.475
VENEZUELA 7.65 4/21/2025 USD 62.91875
VENEZUELA 7.75 10/13/2019 USD 67.52917
VENEZUELA 7 3/31/2038 USD 57.87429
VENZOD - 189000 9.375 1/13/2034 USD 70.841
***********
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
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 * * *