/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100308.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, March 8, 2010, Vol. 11, No. 046 Headlines A R G E N T I N A * ARGENTINA: Court Suspends Central Bank's Use of Reserves * ARGENTINA: Sub-Nat'l Govts. Credit Quality Surpasses Nat'l Govt. B R A Z I L BRASKEM SA: Eurocontrol Signs Petrochemical Marking Deal With Firm GOL LINHAS: Reveals February 2010 Traffic Figures EMPRESA NACIONAL: Refineries Have One Week of Diesel Stocks Left LUPATECH SA: Offers Shareholders the Option to Vote Remotely C A Y M A N I S L A N D S ABRIA SELECT: Shareholders Receive Wind-Up Report ARCA FUNDING: Shareholders Receive Wind-Up Report AREV CAPITAL: Shareholder Receives Wind-Up Report AXIOM MARKET: Shareholders Receive Wind-Up Report BANCHO HOLDINGS: Shareholders Receive Wind-Up Report BLUEMOUNTAIN DEFENSIVE: Shareholders Receive Wind-Up Report BRENTWOOD CLO II: Shareholders Receive Wind-Up Report CEVAL INTERNATIONAL: Shareholders Receive Wind-Up Report CFIP FUNDING: Shareholders Receive Wind-Up Report CHAMBERLIN SPV: Shareholders Receive Wind-Up Report CONCORDIA (F) MANAGED: Shareholders Receive Wind-Up Report DALLAGLIO CDO: Shareholders Receive Wind-Up Report DALLAGLIO CDO: Shareholders Receive Wind-Up Report DISCOVER CARD: Shareholders Receive Wind-Up Report DMR STRUCTURED: Shareholders Receive Wind-Up Report DRY BROOK: Shareholders Receive Wind-Up Report ECO GAM: Shareholders Receive Wind-Up Report EPIRUS HIGH: Shareholders Receive Wind-Up Report FEROX BF: Shareholders Receive Wind-Up Report GREENACRE I SPC: Shareholders Receive Wind-Up Report GREENACRE II: Shareholders Receive Wind-Up Report NAUTILUS RMBS: Shareholders Receive Wind-Up Report NAUTILUS RMBS: Shareholders Receive Wind-Up Report NAUTILUS RMBS: Shareholders Receive Wind-Up Report NORMANDY INTERNATIONAL: Shareholders Receive Wind-Up Report NORMANDY INTERNATIONAL: Shareholders Receive Wind-Up Report PALLAS IV CDO: Shareholders Receive Wind-Up Report PARMALAT CAPITAL FINANCE: Settles EUR1 Bil. Claims PERELLA WEINBERG: Shareholders Receive Wind-Up Report SKYGATE CAPITAL: Shareholders Receive Wind-Up Report SKYGATE CAPITAL: Shareholders Receive Wind-Up Report E C U A D O R * ECUADOR: To Meet Global 2015 Payments, Finance Minister Says H A I T I AES CORP: Restores Power to Important Sector of Port-au-Prince J A M A I C A AIR JAMAICA: Government May Keep Airline's Maintenance Unit AIR JAMAICA: T&T Gov't Only Wants Airline's Profitable Routes JAMAICA RAILWAY: Government to Divest Idle Lands for JM$445.6MM NATIONAL COMMERCIAL BANK: To Cut 100 Jobs to Manage Costs NATIONAL COMMERCIAL BANK: Investment Adviser Convicted for Scam SUGAR COMPANY OF JAMAICA: Cabinet OKs Commission of Enquiry WINDALCO: To Make 762 Jobs Redundant on March 31 M E X I C O CEMEX SAB: Court Rules Against Firm's Venezuela Bid DESARROLLADORA HOMEX: To Apply Accounting Rule INIF 14 Starting 1Q DEUTSCHE BANK: Moody's Affirms 'D' Bank Financial Strength Rating MBIA MEXICO: S&P Affirms 'BB+' Global Financial Strength Rating V E N E Z U E L A PETROLEOS DE VENEZUELA: Conoco Gets Notice of Int'l Lawsuit PETROLEOS DE VENEZUELA: Unit Invests US$100MM to Meet Demands X X X X X X X X LATAM: High Taxes and Evasion Eroding Economic Growth, IDB Says * BOND PRICING: For the Week March 1, to March 6, 2010 - - - - - ================= A R G E N T I N A ================= * ARGENTINA: Court Suspends Central Bank's Use of Reserves ---------------------------------------------------------- Taos Turner at Dow Jones Newswires reports that Argentine bonds ended mixed after a federal court suspended a decree issued by President Cristina Fernandez ordering Central Bank reserves to be used to make debt payments this year. The report relates that on March 4, 2010, the dollar-denominated Boden 2012 bond fell 0.28% in price terms to ARS346 to yield 8.69%, while the benchmark peso-denominated bond rose 0.49% in price terms to ARS91.95, yielding 13.77%. According to the report, the government's use of the reserves, and the surreptitious way it went about getting them, behind Congress's back on March 1, angered opposition parties. The report notes that a Senate committee rejected the appointment of Central Bank President Mercedes Marco del Pont and could lead to her removal in a broader Senate vote. "That's going to add a lot of uncertainty to the market," the report quoted Adrian Mayoral, a trader at Mayoral brokerage, as saying. "It'd be nice it were a bit more boring around here once in a while," he added. The report relates that Mr. Mayoral is not alone in his observations. RBS analyst Boris Segura said in a research note obtained by Dow Jones Newswires that "Expect more noise going forward, especially if authorities keep insisting on pushing through radical policy initiatives. A new, assertive Congress is here to stay." Meanwhile, the report notes, an unnamed official at the presidency said that despite the court's suspension, President Fernandez plans to continue using the reserves to pay debt. As reported in the Troubled Company Reporter-Latin America on February 26, 2010, Reuters said that President Cristina Fernandez de Kirchner's government filed a motion asking judges to send a case to the Supreme Court for final ruling after an Argentine federal court kept a hold on the government's plan to use US$6.6 billion in reserves to pay debt. The report related that the judges ruled against freeing the reserves while the case proceeded. * * * As reported in the Troubled Company Reporter-Latin America on October 9, 2009, Standard & Poor's Ratings Services said that it lowered to 'B-' from 'B' its local currency long-term issuer credit rating on the City of Buenos Aires. At the same time, Standard & Poor's affirmed its 'B-' foreign currency long-term issuer credit rating. The outlook on the local and foreign currency long-term issuer credit ratings is stable. * ARGENTINA: Sub-Nat'l Govts. Credit Quality Surpasses Nat'l Govt. ------------------------------------------------------------------ The credit quality of a few sub-national governments in Argentina surpasses that of the national government, reflecting recovery rates higher than those of the sovereign following the 2001-2002 crisis and Moody's expectation of a similar outcome in the event of another sovereign debt restructuring following a default, says Moody's Investors Service in a new report. While four provinces are rated in line with the Argentine sovereign bond rating of B3, three subnational governments-the City of Buenos Aires, the Municipality of R︽ Cuarto and the Province of Mendoza-are rated B1, two notches above the sovereign rating. "The B1 ratings, underpinned by an expectation of higher recovery rates, recognize that these Argentine sub-national governments display lower debt burdens and higher own-source revenues compared to national peers, which indicate a higher degree of financial flexibility and enhanced capacity to withstand, at least at the margins, potential future economic and revenue side shocks," says Moody's Associate Analyst Patricio Esnaola, co-author of the report. Looking to the past, empirical evidence on recovery rates also underpins local currency rating levels higher than that of the sovereign. "Based on empirical evidence on debt restructuring following the 2001-2002 crisis, Moody's estimates that bondholders of the City of Buenos Aires and the Province of Mendoza suffered haircuts of approximately 36% and 43%, respectively, on a net present value basis, compared to 70%, on average, for sovereign bondholders," said Esnaola. =========== B R A Z I L =========== BRASKEM SA: Eurocontrol Signs Petrochemical Marking Deal With Firm ------------------------------------------------------------------ Eurocontrol Technics Inc., through its wholly owned subsidiary Global Fluids International S.A., has signed its first Petro chemical marking contract in Brazil with Braskem SA. Braskem is the largest Latin American petrochemical company with a market capitalization US$3.6 Billion. "Brazil is an important and large potential market with an impressive annual growth rate and a need for our products," commented Bruce Rowlands, President and CEO, Eurocontrol Technics. "We are very pleased to have received this important Petro chemical marking project with our large Brazilian customer, Braskem. This contract is the result of the marketing approval granted to GFI and its Petromark(TM) technology by ANP (Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis), the Brazilian National Oil Agency, in 2009," added Mr. Rowlands. About Eurocontrol Technics Eurocontrol Technics Inc., through its wholly owned subsidiary Global Fluids International S.A., is one of the world's pioneers in developing and implementing innovative molecular marking systems for the oil industry. Through its proprietary Petromark(TM) integral system, GFI has developed a 4-part solution consisting of a molecular marker, injection, monitoring and control components. Such oil industry cost realities along with GFI's 5-year R&D efforts to create its industry-leading marking solutions, along with access to capital provided by Eurocontrol Technics Inc. allows management to pursue numerous anticipated oil marking opportunities in fiscal 2010 and in years to come. About Braskem S.A. Braskem S.A. -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As of March 8, 2010, the company continues to carry Moody's Ba1 rating. The company also continues to carry Fitch ratings' BB+ LT Issuer Default ratings and Senior Unsecured Debt rating GOL LINHAS: Reveals February 2010 Traffic Figures ------------------------------------------------- GOL Linhas Aereas Inteligentes S.A. posted its preliminary traffic figures for February 2010. Management Comments In February 2010, demand on GOL's route network grew by 46.9% over the same period last year (47.9% in the domestic market and 40.3% in the international market), pushed by economic growth in Brazil and Latin America and the expansion of GOL's competitive advantages, especially its cost structure, exemplary service, dynamic fare management and the revitalization of the SMILES program. These factors also contributed to the 47.9% domestic demand growth. Thanks to fleet renewal and strong demand, aircraft utilization exceeded 12.5 block hours/day, above the 11 block hours/day recorded in February 2009. These two factors helped increase GOL's cost advantages in its operational markets. Another February highlight was the Company's dynamic fare management, which fueled demand among Brazil's emerging middle class by ensuring attractive prices for people booking their tickets in advance. At the same time, the share of business and high-income passengers moved up, thanks to the revitalization of SMILES, Latin America's largest mileage program with more than 6.6 million participants and over 160 commercial partners, and high punctuality, regularity and safety levels. In comparison with the previous month, demand fell by 11.9% given that January marks the peak of the high summer season. In addition, there were a smaller number of calendar days (31 in January and 28 in February -- the daily average decline was only 6.6%) and Carnival. Although the holiday generates heavy air traffic, load factors are highest at the beginning and end of the period (February 13 and 17 this year), with demand falling off in between. Operating Data Feb Feb Chg. % January Chg. % 2010* 2009* (YoY) 2010* (YoY) Total System ----- ----- ------ ------- ------ ASK (mm) (1) 3,467.6 2,932.8 18.2% 3,936.7 -11.9% RPK (mm) (2) 2,523.1 1,718.0 46.9% 3,066.0 -17.7% Load Factor (3) 72.8% 58.6% +14.2pp 77.9% -5.1pp Domestic Market ASK (mm) (1) 3,026.4 2,469.0 22.6% 3,443.2 -12.1% RPK (mm) (2) 2,192.4 1,482.3 47.9% 2,662.3 -17.6% Load Factor (3) 72.4% 60.0% +12.4pp 77.3% -4.9pp International Market ASK (mm) (1) 441.2 463.7 -4.9% 493.5 -10.6% RPK (mm) (2) 330.6 235.7 40.3% 403.7 -18.1% Load Factor (3) 74.9% 50.8% +24.1pp 81.8% -6.9pp ( * ) February 2010 -- preliminary figures; February 2009 and January 2010 -- figures from the National Civil Aviation Agency (Anac). Demand on GOL's international route network increased by 40.3% over February 2009, thanks to the following additional factors: (i) the appreciation of the Real against the Dollar; (ii) adjustments to the international route network, including frequencies; (iii) the launch of new routes between Brazil and the Caribbean, such as those to Aruba and Curacao; and (iv) the more favorable macroeconomic scenario. As a result, the Company delivered a total load factor of 72.8% in February 2010 -- 72.4% in the domestic market and 74.9% in the international market, the latter increase being 24.1 percentage points above the 50.8% recorded in February 2009, while the domestic ratio climbed by 12.4 p.p. over the 60.0% registered in the same month last year. In accordance with the Company's disciplined capacity growth strategy, while demand grew by 47.9% year-on-year, capacity only moved up by 22.6%, less than half the demand figure. This strategy was equally apparent in the international market, where the Company reduced its capacity by 4.9%, versus a 40.3% upturn in demand, improving the quality of the consolidated load factor. Yields averaged around 19 cents (R$), very close to January's ratio. The Company believes that current yield and load factor levels are in accordance with its future prospects and financial projections. (1) Available seat kilometers (ASK) is the sum of the products obtained by multiplying the number of seats available on each flight stage by the distance of the average flight stage. (2) Revenue passenger kilometers (RPK) is the sum of the products obtained by multiplying the number of revenue passengers carried on each flight stage by the average stage distance. (3) Load factor is the percentage of aircraft seating capacity effectively used, which is calculated by dividing the number of passenger-kilometers flown by the number of seat-kilometers available. About GOL Linhas Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. -- http://www.voegol.com.br/-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As of March 8, 2010, the company continues to carry Fitch Ratings "B" long-term issuer default ratings. The company also continues to carry Moody's B1 LT Corp Family rating. EMPRESA NACIONAL: Refineries Have One Week of Diesel Stocks Left ---------------------------------------------------------------- Rodrigo Orihuela at Bloomberg News reports that Chile's national oil company, Empresa Nacional de Petroleo, has about one week of diesel stocks remaining and 10 days of gasoline at its Bio Bio and Aconcagua refineries after the February 27 earthquake. Company spokeswoman Patricia Silva told Bloomberg News in a telephone interview that fuel is being dispatched from both refineries, which are closed while they are repaired following the earthquake. Additional fuel demand will be covered by imports, she added. According to the report, JPMorgan Chase & Co. said that Chile may have to import 4 million barrels of oil products to cover demand while the two refineries are closed. The report points out that the Bio Bio and Aconcagua refineries each have a capacity of about 104,000 barrels a day and produce more than 90% of the company's total output of about 220,000 barrels a day. About ENAP Empresa Nacional de Petroleo explores for and produces oil and natural gas and provides refining, logistics, and commercialization of fuels and other petroleum by products. The company also provides services related to the oil industry such as the construction and maintenance of oil infrastructure in the land at sea; and logistic services. LUPATECH SA: Offers Shareholders the Option to Vote Remotely ------------------------------------------------------------ Lupatech SA signed up for Assembleias Online, the electronic voting platform developed by MZ. By joining Assembleias Online, the Companies have further improved their corporate governance practices by offering their shareholders the option to vote remotely, which should increase quorum at general meetings. According to Thiago Alonso de Oliveira, the Chief Financial and Investor Relations Officer of Lupatech, "Assembleias Online perfectly matches Lupatech's determination to constantly operate in accordance with the best corporate governance practices. We expect an increase in the participation of minority shareholders at our general meetings." Assembleias Online is a pioneering initiative of MZ together with Brazil's leading law firms, which resulted in an official request to the Board of the Brazilian Securities and Exchange Commission (CVM) in February 2008. In June of the same year, the request was approved, the CVM Board having found no impediments to the use of digital certification and other details provided by MZ. By joining Assembleias Online, Lupatech also complied with CVM Instruction 481 of December 17, 2009, which rules on the exercise of electronic voting rights and other matters related to the shareholders' meetings of publicly-held companies. About Lupatech SA Headquartered in Brazil, Lupatech SA -- http://www.lupatech.com.br -- is a holding company engaged in three business segments: Energy Products, Flow Control and Metallurgy. In the Energy Products segment, the company provides such products as deepwater platform anchoring ropes, valves, tools for oil exploration and tube coating. In the Flow Control segment, it is involved in the production and sale of industrial valves for the petrochemical, pharmaceutical and construction industries, among others. In the Metallurgy segment, the Company is principally engaged in the production of parts for the automotive industry. Lupatech SA?s brand portfolio includes MNA, CSL Off Shore, Petroima, Esferomatic, Gasoil, K&S, Fiberware, Aspro, Gavea, Sinergas and Tecval, among others. During the year ended December 31, 2008, the Company incorporated Cordoaria Sao Leopoldo Offshore SA, Metalurgica Nova Americana Ltda and Metalurgica Ipe Ltda. * * * As reported in the Troubled Company Reporter-Latin America on February 11, 2010, Moody's Investors Service downgraded the ratings of Lupatech S.A. Corporate Family Rating to "B2" from "B1" (global scale); to "Ba1.br" from "Baa3.br" (Brazil national scale). ========================== C A Y M A N I S L A N D S ========================== ABRIA SELECT: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Abria Select Alternatives SPC Limited received, on January 22, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands ARCA FUNDING: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Arca Funding 2006-I, Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands AREV CAPITAL: Shareholder Receives Wind-Up Report ------------------------------------------------- The shareholder of Arev Capital, Ltd. received, on January 22, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Sailaja Alla Telephone: (345) 815 1767 Facsimile: (345) 949-9876 AXIOM MARKET: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Axiom Market Neutral Fund received, on January 29, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Pinalkumar Shah Habibsons Bank Limited 9 Portman Street, London, W1H 6DZ United Kingdom c/o Victor Murray Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BANCHO HOLDINGS: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Bancho Holdings Limited received, on January 26, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BLUEMOUNTAIN DEFENSIVE: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of Bluemountain Defensive Credit Fund Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BRENTWOOD CLO II: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Brentwood CLO II, Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CEVAL INTERNATIONAL: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Ceval International Participation II Ltd. received, on January 28, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CFIP FUNDING: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of CFIP Funding SPC received, on January 26, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CHAMBERLIN SPV: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Chamberlin SPV Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands CONCORDIA (F) MANAGED: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Concordia (F) Managed Account (1) Limited received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Anderson c/o 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 DALLAGLIO CDO: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Dallaglio CDO 2005-3 Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands DALLAGLIO CDO: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Dallaglio CDO 2005-4 Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands DISCOVER CARD: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Discover Card Offerings Limited No. 1 received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands DMR STRUCTURED: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of DMR Structured Arbitrage Fund Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands DRY BROOK: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of Dry Brook Capital SPC received, on January 26, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ECO GAM: Shareholders Receive Wind-Up Report -------------------------------------------- The shareholders of Eco Gam Fund, Ltd. received, on January 28, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands EPIRUS HIGH: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Epirus High Grade CDO 2007-1, Ltd. received, on January 26, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands FEROX BF: Shareholders Receive Wind-Up Report --------------------------------------------- The shareholders of Ferox BF Assets Limited received, on January 29, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GREENACRE I SPC: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Greenacre I SPC received, on January 26, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GREENACRE II: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Greenacre II SPC received, on January 26, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands NAUTILUS RMBS: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Nautilus RMBS CDO III, Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands NAUTILUS RMBS: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Nautilus RMBS CDO IV, Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands NAUTILUS RMBS: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Nautilus RMBS CDO V, Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands NORMANDY INTERNATIONAL: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of Normandy International Absolute Return Fund Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands NORMANDY INTERNATIONAL: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of Normandy International Master Fund Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands PALLAS IV CDO: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Pallas IV CDO Limited received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Steven O'Connor c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands PARMALAT CAPITAL FINANCE: Settles EUR1 Bil. Claims ------------------------------------------ Parmalat has settled over EUR1 billion in claims made against it by Parmalat Capital Finance (presently in liquidation in the Cayman Islands). Pursuant to the terms of the settlement, Parmalat will allocate 5.6 million shares of stock already issued to PCF and currently frozen by order of the Parma court. Parmalat will also issue 12.4 million new shares of stock to PCF and release claims it had asserted against PCF in the Cayman Islands. PCF will, in turn, release all of its claims against Parmalat and assign to Parmalat its rights in a $45 million debt from Parmalat de Venezuela, together with certain other claims. The assignment of the Parmalat de Venezuela debt means that Parmalat now owns all debt and equity interests in Parmalat de Venezuela. The settlement is subject to approval by the Cayman Court supervising the liquidation of PCF. About Parmalat S.p.A. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for Chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on December 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On January 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presided over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. PERELLA WEINBERG: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Perella Weinberg Partners Alpha Large Cap Offshore Fund Ltd. received, on January 27, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands SKYGATE CAPITAL: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Skygate Capital Partners, Ltd. received, on January 22, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. dms House, 20 Genesis Close P.O. Box 1344, George Town Grand Cayman KY1-1108, Cayman Islands SKYGATE CAPITAL: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Skygate Capital Partners Master Fund, Ltd. received, on January 22, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. dms House, 20 Genesis Close P.O. Box 1344, George Town Grand Cayman KY1-1108, Cayman Islands ============= E C U A D O R ============= * ECUADOR: To Meet Global 2015 Payments, Finance Minister Says -------------------------------------------------------------- The Ecuadorian government will meet payments on its global 2015 bonds, Mercedes Alvaro at Dow Jones Newswires reports, citing Finance Minister Maria Elsa Viteri. The report relates that Ecuador has US$650 million in bonds that are due in 2015. As reported in the Troubled Company Reporter-Latin America on April 23, 2009, Bloomberg News said that President Correa skipped a US$30.6 million payment for the country's 12% bonds due in 2012, calling the debt "illegal" and "illegitimate." The move also sent its bonds due 2015 and 2030 into default, the same report noted. Argentina, the report noted, has relied largely on multilateral lending since the 2008 default. According to Dow Jones Newswires, Mr. Viteri said that "It was Ecuador's sovereign decision to not recognize the illegitimacy of a part of the commercial debt, not a lack of liquidity." The report relates analysts have said Ecuador may default again due a lack of financing. Mr. Viteri, the report notes, said that Ecuador received about $857 million from multilateral lenders last year. For 2010, the report discloses, Ecuador has signed loan contracts with the Inter-American Development Bank and the Andean Development Corp. (CAF) worth US$550 million. Last year, the report recalls, the Ecuadorian government said it had bought back more than 90% of its defaulted bonds through a modified Dutch auction. * * * As reported by the Troubled Company Reporter - Latin America on December 17, 2008, Fitch Ratings downgraded Ecuador's long-term foreign currency Issuer Default Rating (IDR) to 'RD' from 'CCC' following the expiration of the grace period for the coupon payment on the 2012 global bonds that was due on Nov. 15 and the government's announcement that it will selectively default on all global bonds. The short-term foreign currency rating was downgraded to 'D' from 'C'. The country ceiling remains at 'B-'. ========= H A I T I ========= AES CORP: Restores Power to Important Sector of Port-au-Prince -------------------------------------------------------------- AES Corporation restored the energy service to an area of the capital Port-au-Prince, where they concluding the installation of the substation in Verraux, to supply electricity to one Haiti's most important industrial and residential zones, Dominican Today reports. According to the report, the work will provide energy for the first time since the January 12 quake for around 10,000 customers, or 60% of the billing by Haiti's electricity provider (EDH. 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 of March 8, 2010, the company continues to carry Moody's B1 LT Corp Family and Senior Subordinate ratings, "Ba3" LT COrp family rating, "B3" Preferred Stock rating, and "B1" Probability of default rating. The company also continues to carry Standard and Poor's "BB-" Issuer credit ratings. ============= J A M A I C A ============= AIR JAMAICA: Government May Keep Airline's Maintenance Unit ----------------------------------------------------------- Ingrid Brown at Jamaica Observer reports that the Jamaican government may opt to keep Air Jamaica Limited's maintenance unit after it would divest the airline to Trinidad-owned Caribbean Airlines. "It is my understanding that the maintenance unit is not a part of the current negotiations," the report quoted Transport Minister Mike Henry as saying. "The operation is being looked at as a separate entity and I would not be able to give any more information than that because it is a continuous exercise which is being re-examined and looked at," he added. According to the report, Mr. Henry said that he has raised the option to Prime Minister Bruce Golding, who has advised that the possibility of establishing the maintenance department as an independent maintenance and repair organization is being examined. The report notes that Mr. Henry's idea to retain the maintenance unit as a separate entity has the support of Colonel Oscar Derby, director general of the Jamaica Civil Aviation Authority. An unnamed airports authority official told the Observer that the maintenance unit, with its large hangar and over 100 certified mechanics, constitutes a major asset for the country. 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 March 4, 2010, Moody's Investors Service raised its ratings of Air Jamaica Limited; corporate family and senior unsecured notes each to B3 from Caa1. The outlook is stable. The upgrades follow the March 2, 2010 upgrade of the foreign currency bond rating of The Government of Jamaica to B3 from Caa1. According to the TCR-LA 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. AIR JAMAICA: T&T Gov't Only Wants Airline's Profitable Routes ------------------------------------------------------------- The Trinidadian government said that its national carrier, Caribbean Airlines, will not be taking over Air Jamaica Limited's debts, RadioJamaica reports. The report relates Colm Imbert, Trinidad's Transport Minister, said that Caribbean Airlines will only acquire Air Jamaica's profitable routes. According to the report, citing Trinidad's Express newspaper, Mr. Imbert said that there is value attached to the routes. The report relates that Mr. Imbert said Caribbean Airlines will be replacing the airlift that would be required when Air Jamaica stops flying. The report notes Mr. Imbert confirmed that all employees' positions will be made redundant on April 12 and Caribbean Airlines would be financially responsible for the transition operation after that date. The transition proposal is to continue operating the airline, using its existing fleet under contract to Caribbean Airlines, for perhaps as long as one year, he added. 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 March 4, 2010, Moody's Investors Service raised its ratings of Air Jamaica Limited; corporate family and senior unsecured notes each to B3 from Caa1. The outlook is stable. The upgrades follow the March 2, 2010 upgrade of the foreign currency bond rating of The Government of Jamaica to B3 from Caa1. According to the TCR-LA 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. JAMAICA RAILWAY: Government to Divest Idle Lands for JM$445.6MM --------------------------------------------------------------- The Jamaican government has given the Ministry of Transport and Works the go ahead signal to sell lands owned by the Jamaica Railway Corporation, which are not required for the operation of the railway, for an estimated value of JM$445.6 million, Jamaica Observer reports. According to the report, the minister with responsibility for Information, Daryl Vaz, said that the provision of railway facilities and other services to West Indies Alumina Company and the bauxite sector in general, have been the key revenue-earning activities for the JRCO since the closure of the railway in October 1992. The report relates that Mr. Vaz said the present crisis in the bauxite sector has crippled the ability of the JRC to operate as a self-financing entity and the corporation has been further affected by the decision of WINDALCO to suspend its operations for 18 to 24 months with effect from March 1, last year. Mr. Vaz, the report adds, said that the transport and works ministry is empowered under the JRC Act to dispose of the property. NATIONAL COMMERCIAL BANK: To Cut 100 Jobs to Manage Costs --------------------------------------------------------- Julian Richardson at Jamaica Observer reports that the National Commercial Bank it will cut over 100 jobs in a move to manage costs. The report relates Sheree Martin, NCB senior assistant general manager, Group Marketing & Communications Division, said that challenges of the current economic environment played a role in the decision. According to the report, the company had made several senior staff cuts to consolidate operations and scale back on expenses. The report relates that last month, two of the company's top brass were made redundant -- group chief compliance officer and company secretary, Jennifer Dewdney Kelly and group chief information officer, Peter Quinn. The report notes that the bank elected not to hire a new managing director for NCB Capital Markets after the resignation of ex-boss Christopher Williams, instead opting to have NCB Group deputy managing director, Dennis Cohen, assume the position on an interim basis. "We made the decision to centralize key divisions thereby capitalising on expertise that could readily span across divisions for the benefit of the Group," the report quoted Ms. Martin as saying. "We began by centralizing Marketing, IT and HR functions; more recently, IT functions have been further absorbed into the Network Operations Division, and the Group Compliance Division has been absorbed into the Group General Council Division," she added. About NCB Jamaica Headquartered in Kingston, Jamaica, the National Commercial Bank Jamaica Limited -- http://www.jncb.com/-- provides commercial and retail banking, wealth management services. The company's services include personal banking, business banking, mortgage loans, wealth management and insurance services. Founded in 1977, the bank primarily operates in West Indies and the U.K. * * * As reported in the Troubled Company Reporter-Latin America on March 1, 2010, Fitch Ratings upgraded the ratings of Jamaica-based National Commercial Bank Jamaica Limited's Long-term foreign and local currency Issuer Default Rating to 'B-' from 'CCC'; Short- term foreign and local currency IDR to 'B' from 'C'; and Support floor to 'B-' from 'CCC'. NATIONAL COMMERCIAL BANK: Investment Adviser Convicted for Scam --------------------------------------------------------------- Former Victoria investment adviser Ian Thow, a Canadian national, has been convicted in a Vancouver Court on fraud charges, which involved him selling fake shares in National Commercial Bank, Jamaica, RadioJamaica reports. The report relates that Mr. Thow has been sentenced to nine years in prison for 25 counts of fraud totaling US$8 million. According to the report, Mr. Thow had been charged with 25 counts of fraud stemming from allegations he stole more than US$32 million from clients and friends by persuading them to invest in a variety of schemes, ranging from shares in NCB to short-term loans for developers. The report notes that Mr. Thow will spend seven years in prison, getting double time off for the year he has already served behind bars. About NCB Jamaica Headquartered in Kingston, Jamaica, the National Commercial Bank Jamaica Limited -- http://www.jncb.com/-- provides commercial and retail banking, wealth management services. The company's services include personal banking, business banking, mortgage loans, wealth management and insurance services. Founded in 1977, the bank primarily operates in West Indies and the U.K. * * * As reported in the Troubled Company Reporter-Latin America on March 1, 2010, Fitch Ratings upgraded the ratings of Jamaica-based National Commercial Bank Jamaica Limited's Long-term foreign and local currency Issuer Default Rating to 'B-' from 'CCC'; Short- term foreign and local currency IDR to 'B' from 'C'; and Support floor to 'B-' from 'CCC'. SUGAR COMPANY OF JAMAICA: Cabinet OKs Commission of Enquiry ----------------------------------------------------------- The Jamaican government has approved the mandate for the Sugar Company of Jamaica Holdings Limited to conduct negotiations with interested parties who had submitted unsolicited proposals for the divestment of the company's Frome, Monymusk and Bernard Lodge Sugar estates, Jamaica Information Service reports, citing Minister with responsibility for Information, Daryl Vaz. The report relates that a Commission of Enquiry has also been approved that will review the current institutional and regulatory pricing arrangements in the sugar industry. According to the report, Mr. Vaz said that approval had been granted for the SCJH to negotiate a medium-term pre-financing agreement with Eridania Suisse in exchange for supplies of sugar to Eridania and that the funds from them are earmarked to support the continual restructuring and operation of the sugar estates pending divestment. "The Cabinet had also previously approved the discontinuation of the Sugar Negotiating Team and the transfer of its functions and mandate to a strengthened board of the SCJH which is responsible for the operations of the three estates as well as their divestment" the report quoted Minister Vaz as saying. About SCJ The Sugar Company of Jamaica Limited, a.k.a. SCJ, was formed in November 1993 by a consortium made up of J. Wray & Nephew Limited, Manufacturers Investments Limited and Booker Tate Limited. The three companies each held 17% equity in SCJ, with the remaining 49% being held by the government of Jamaica. In 1998, the government became the sole shareholder of SCJ by acquiring the interests of the members of the consortium. Its stated goal was to maximize efficiency, productivity and profitability of the three sugar factories, within three years. The principal activities of the company are the cultivation of cane and the manufacture and sale of sugar and molasses. * * * As reported in the Troubled Company Reporter-Latin America on June 22, 2009, the Jamaica Gleaner reported that Mr. Tufton said that if a new deal is not inked soon for the divestment of SCJ's factories, the public will be called on again to plug a projected US$4.2 billion hole -- representing a US$2 billion operational loss, and bank penalties -- apparently from continuous hefty overdrafts. The loss was incurred by the SCJ's four factories during the 2008/2009 season. The Gleaner related the enterprise has a US$21-billion debt and losses totaling more than US$14 billion since 2005. WINDALCO: To Make 762 Jobs Redundant on March 31 ------------------------------------------------ West Indies Alumina Company will end its bauxite production in Jamaica and make 762 permanent jobs redundant on March 31, Carl Gilchrist at Jamaica Gleaner reports. The report relates that the redundancy exercise comes a year after the company suspended production at its Kirkvine, Manchester, and Ewarton, St Catherine, refineries because of reduced demand for aluminium on the world market. The company is 93% owned by Russian entity, UC Rusal. According to the report, Acting Managing Director Andrew Currie explained that the company's management felt it would also be in the best interest of Windalco to make the positions redundant. The report notes that the decrease in demand for alumina on the world market because of the recession dealt a severe blow to the Jamaican economy, which is heavily dependent on foreign-exchange inflows from sectors such as bauxite and tourism. The Gleaner discloses that Kayon Wallace, Windalco's senior communications officer, said that, as of April 1, a 'take-care' organization comprising a small complement of contract workers will be responsible for preserving the company's assets and meeting legal and community obligations. The report relates that Mr. Wallace said that the company will still be involved in agricultural activities that formed part of its original mandate. The tenant farm program, two cattle farms in St Ann and Manchester, and its third party business at Port Esquivel will still continue, he added. About WINDALCO West Indies Alumina Company is situated on the island of Jamaica in the Caribbean. The company comprises two alumina refineries (Ewarton Works and Kirkvine Works), a shipping port (Port Esquivel) and also bauxite mines in Schwallenburgh (Ewarton) and Russell Place (Kirkvine) and farms in Manchester and St. Ann. =========== M E X I C O =========== CEMEX SAB: Court Rules Against Firm's Venezuela Bid --------------------------------------------------- The Washington-based International Center for Settlement of Investment Disputes rejected a request by CEMEX, S.A.B. de C.V. to protect the company from further expropriations by Venezuela after a 2008 nationalization of its Venezuelan assets, Robin Emmott and Marianna Parraga at Reuters report. According to the report, Cemex SAB had asked ICSID to stop Venezuela from taking control of three Panama-based cement vessels that were under the control of Cemex's Venezuela operations before the August 2008 nationalization. The report relates that the demand is part of a wider court case in which Cemex SAB is seeking US$1.3 billion in compensation for the seizure of its assets. Venezuela has offered about a third of that. An unnamed Cemex spokesman said that Panama's Supreme Court recently gave Cemex control of the boats, which he considered as "irrelevant." "This is something that could complicate Cemex's overall bid for compensation. It is going to take a long time," the report quoted Francisco Chavez, an analyst at BBVA Bancomer, as saying. Venezuela President Hugo Chavez, the report recalls, nationalized Cemex's Venezuelan assets, accusing the company of pollution that was harming local residents. The report points out that Cemex SAB denied any wrongdoing, arguing it had invested heavily in its plants in recent years, switched its sales focus to the domestic market, cut exports, and increased its social program to help low- income families build homes. Reuters notes that Cemex SAB had hoped to use compensation from Venezuela to help reduce its US$15 billion debt load as it struggles with slumping U.S. and European cement volumes due to the global recession. As reported in the Troubled Company Reporter-Latin America on March 11, 2009, Reuters said that Cemex SAB has been slammed by debt problems after its ambitious Rinker takeover in 2007, slumping sales, and losses on derivatives amid turmoil caused by the global credit crisis. About Cemex SAB CEMEX, S.A.B. de C.V. is a Mexican corporation, a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As of March 8, 2010, the company continues to carry Standard and Poor's "B" LT Issuer credit ratings. The company also continues to carry Fitch rating's "B" LT Issuer Default ratings and "B+" Currency LT Debt ratings. DESARROLLADORA HOMEX: To Apply Accounting Rule INIF 14 Starting 1Q ------------------------------------------------------------------ Desarrolladora Homex, S.A.B. de C.V. will begin applying the accounting rule INIF 14 starting with the First Quarter of 2010. Under this accounting standard, the company will recognize its revenues, costs and expenses when the Company has transferred title of the property to the homebuyer. Prior to 2010, the company recognized these items under a percentage of completion method. In addition, the Company is preparing for the 2012 compliance and adoption of IFRS, pursuant to the requirements of the Mexican Council for the Investigation and Development of Accounting Rules (CINIF). Desarrolladora Homex S.A.B. de C.V. (NYSE: HXM, BMV: HOMEX) -- http://www.homex.com.mx/-- is a vertically integrated home development company focused on affordable entry-level and middle-income housing in Mexico. It is one of the most geographically diverse homebuilders in the country. Homex is the largest homebuilder in Mexico, based on revenues, number of homes sold and net income. * * * As of March 8, 2010, the company continues to carry Moody's "Ba3" LC Curr Issuer and Senior Usecured Debt ratings. The company also continues to carry Standard and Poor's "BB-" LT Issuer Credit ratings. DEUTSCHE BANK: Moody's Affirms 'D' Bank Financial Strength Rating ----------------------------------------------------------------- Moody's Investors Service downgraded Deutsche Bank (Mexico), S.A.'s global local currency, long term deposit rating to A3 from A2. The bank's D bank financial strength rating and the long- and short-term foreign currency deposit ratings of Baa1 / Prime-2, as well as the short-term Prime-2 local currency deposit ratings were affirmed. The Mexican National Scale ratings of Aaa.mx and MX-1 were also affirmed. All these ratings have stable outlooks. Moody's also downgraded to A3 from A2 the long-term global local currency issuer rating assigned to Deutsche Securities, S.A de C.V. Casa de Bolsa. The outlook is stable. The actions conclude the reviews for possible downgrade on the global local currency ratings of both entities initiated on November 23, 2009. The rating actions on DB Mexico and DSMexico follow a similar rating action taken on the BFSR assigned to their ultimate parent Deutsche Bank A.G. For details on this latter action, please refer to Moody's press release "Moody's downgrades Deutsche Bank to Aa3/C+ from Aa1/B; outlook stable", dated March 4, 2010. Moody's said that DB Mexico's GLC deposit rating to a great extent incorporates Moody's assessment of the probability of very high support that could be received from its parent company DB. Moody's notes that an integral part of the parental support received takes the form of transferring of a significant portion of risks inherent to the Mexican subsidiary to other entities of the DB network. Moody's also indicated that the ratings on DSMexico are aligned to those of its bank sister company to reflect the full integration between these two entities, and with DB. The last rating actions on DB Mexico and DSMexico were on November 23, 2009, when Moody's placed on review for possible downgrade the bank's local currency deposit rating and the securities firm's GLC issuer rating. The long-term Mexican National Scale rating of Aaa.mx indicates issuers or issues with the strongest creditworthiness relative to other domestic issuers. The short-term Mexican National Scale rating of MX-1 indicates that the issuer has the strongest ability to repay short-term senior unsecured debt obligations relative to other domestic issuers. These ratings actions were taken on Deutsche Bank (M�xico), S.A.: -- Global local currency deposit rating: Downgrade A3, with stable outlook, from A2 These ratings actions were taken on Deutsche Securities Casa de Bolsa, S.A.: -- Global local currency issuer rating: Downgrade A3, with stable outlook, from A2 MBIA MEXICO: S&P Affirms 'BB+' Global Financial Strength Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'BB+' global scale financial strength rating on MBIA Mexico S.A. de C.V. At the same time, S&P affirmed its national scale financial strength rating on MBIA Mexico at 'mxA'. The outlooks remain negative. The ratings on MBIA Mexico reflect those on its U.S.-based parent, MBIA Insurance Corp. (BB+/Negative/--). The rating on the Mexican subsidiary is based on the comprehensive support MBIA Insurance provides to it, in the form of a reinsurance agreement that calls for MBIA Mexico to cede 100% of its net exposure to MBIA, and a net worth maintenance agreement from MBIA Insurance. "S&P believes this agreement guarantees that the Mexican subsidiary will maintain adequate capitalization for the size of its operations," said Standard & Poor's credit analyst Barbara Carreon. "Based on both agreements, S&P view MBIA Mexico as a fundamental subsidiary of MBIA Insurance." The ratings on MBIA Insurance and its holding company, MBIA Inc. (BB-/Negative/--), reflect the contribution of economic conditions to losses in the group's structured-finance business. In September 2009, S&P downgraded both of these companies because S&P now believes that losses on MBIA Insurance's 2005-2007 vintage direct residential mortgage-backed securities and collateralized debt obligations on asset-backed securities could be higher than S&P had previously expected. The downgrades also reflect the potential for increased losses in other asset classes -- including, but not limited to, commercial mortgage-backed securities -- and, for years prior to 2005, in RMBS. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Conoco Gets Notice of Int'l Lawsuit ----------------------------------------------------------- Susan Daker and Isabel Ordonez at Bloomberg News report that Petroleos de Venezuela has told Houston-based ConocoPhillips that it was initiating arbitration proceedings with the International Chamber of Commerce, challenging Conoco's attempt to buy PDVSA's interest in their jointly owned Merey Sweeney LP unit. The report recalls that PDVSA announced its plan to take Conoco to court as early as 2008, after the U.S. oil company said it wanted to buy out PDVSA's 50% stake in Merey Sweeny. As reported in the Troubled Company Reporter-Latin America on March 2, 2010, EFE News said that ConocoPhillips in September 2009 "exercised an option to acquire Venezuela's 50% stake in the (Merey Sweeny) coker project at the Sweeny refinery, alleging that its partner (PDVSA) was not complying with its contractual obligation to supply the plant." The report related that Merey Sweeny is one of PDVSA's five U.S.-based refineries, which is 50% owned by Conoco. The report noted that Venezuela's move to take Conoco to court in the United States is part of a larger dispute. In 2007, the report disclosed, Conoco filed for arbitration against Venezuela after President Hugo Chavez's leftist government forced foreign oil companies to convert their existing operating agreements into contracts that made them minority partners in joint ventures with PDVSA. About ICC The ICC is a network of international corporations that can settle commercial disputes through closed arbitration. The organization has offices around the world. 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 of March 8, 2010, the company continues to carry Moody's "Ba1" LC Curr Issuer rating. The company also continues to carry Standard and Poor's "B+" LT Issuer credit ratings. PETROLEOS DE VENEZUELA: Unit Invests US$100MM to Meet Demands ------------------------------------------------------------- The Board of Directors of Venezuelan Petroleum Corporation, a subsidiary of Petroleos de Venezuela SA, toured the Industrial Complex Jose Antonio Anzoategui to evaluate the proposed installation of an electric generation breeders plant of the Oil Belt joint ventures, allowing these facilities wean the national electricity system. The tour was conducted by the president and vice president of PDVSA VPC, Eulogio Del Pino, the director of the VPC, Pedro Leon, and the Improvement Manager, Luis Marquez. Del Pino said that the project includes the installation of 100 megawatts to meet electricity demands Petrocedeno, Petropiar, Sinovensa Petromonagas and Petroleum's breeders, with an initial investment of US$100 million. The plant will comprise four turbo-generators of 25 megawatts each. This is a new gas system for easy installation. It consists of two trailers, one of power and one for the control system. The launch of this plant is estimated in about six months. PDVSA's unit planned to start working with land, located on the outskirts of Petrocedeno Breeder. This self-financed by the Venezuelan Petroleum will provide the necessary energy required for production processes and improvement of oil extracted in the Orinoco Oil Belt. PDVSA's vice president called for joint ventures operating in the Jose complex to avoid repeating the disastrous model. "None of the plants that are in Jose, an electrode must take nor the communities or the Venezuelan people," said Del Pino. He also congratulated the socialist workers, for their unconditional contribution in the struggle for the recovery of our oil sovereignty. He said now "we are in a process of expansion" and he announced that the next six years the national production of the FPO, will increase from 30% to 70%. 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 of March 8, 2010, the company continues to carry Moody's "Ba1" LC Curr Issuer rating. The company also continues to carry Standard and Poor's "B+" LT Issuer credit ratings. =============== X X X X X X X X =============== LATAM: High Taxes and Evasion Eroding Economic Growth, IDB Says --------------------------------------------------------------- Complex tax systems and widespread evasion are distorting investment decisions by companies in Latin America and the Caribbean, reducing the efficiency of markets and preventing governments from investing in infrastructure, education and other key public goods. This hinders the productive possibilities of the region's economies, according to a newly released study by the Inter-American Development Bank. According to IDB, Latin America and the Caribbean have low tax collection by international standards, with collection concentrated on large corporations. Tax rates as percentage of profits are high, reaching an average of 48% compared with 41 percent in high-income countries. Moreover, taxes are also associated with high transaction costs. IDB said that Latin Americans spend on average 320 hours a year to prepare, file and pay (or withhold) their taxes, almost twice as much as high-income countries. Processing taxes takes 2,600 hours in Brazil. Firms spent less time processing taxes in Grenada, Dominica and St. Lucia. IDB disclosed that high taxes can reduce the firms' incentives to invest in technology and other productivity-enhancing strategies because taxes reduce the potential profits generated by those investments. As a result, productivity is reduced in the formal sector, hurting the overall long-term economic growth, the study concludes. IDB noted that by shifting to smarter tax programs, governments can increase their revenue intake to finance much-needed social and investment programs without hurting productivity and growth. The region needs to ensure its tax systems to promote a better allocation of resources that will pave the way for increased productivity, the study says. This means not only simplifying taxes but also reducing taxes for corporations, in general, to reduce the level of informality. Currently, 61% of the region's tax revenues come from corporations while in the industrial world that accounts for only 25% of total revenues. Despite the high taxes on companies, tax revenues in the region, excluding social contributions, are only about 17% of gross domestic product, compared with 27% in the United States and 36% in industrial countries, according to the study. High Taxes Triggers Widespread Evasion Since tax rates and transaction costs are high, it is not surprising that tax evasion is widespread in Latin America. Tax evasion among both small and large companies is rampant, with the great majority of small and micro companies paying no taxes and formal companies underreporting as a much as 40% of sales in some countries, such as Brazil and Panama, according to the study. According to a survey by Mckinsey & Company, nearly 70% of microenterprises (firms with 10 or fewer employees) in Mexico report that they are not registered and hence do not pay any taxes. Among small and medium-sized firms, the largest share, 63%, are registered but report not paying taxes. In the case of large firms, 48% do not pay taxes. The situation is even more dramatic in El Salvador. Only 1% of all microenterprises and 3% of all non-microenterprises are registered. While tax evasion is much lower in Chile, it is not negligible for some types of taxes. An estimated 66% of establishments with 10 or more workers pay less than they should in value added taxes (VAT), 58% underpay profit taxes and 34 percent social security contributions. Evasion Hurts Productivity "The high level of evasion hurts productivity," said Carmen Pages, coordinator of the study, "because it prevents the government from investing in productivity-enhancing public goods like infrastructure and education. In addition, it gives informal firms, which are usually less productive, an unfair advantage in the marketplace against those companies that pay taxes". If governments target larger, more productive firms, tax evasion becomes a subsidy for less productive companies and an additional burden for the most productive ones. From this point of view, tax evasion may be lowering average productivity, as the competition from tax-evading firms and informal firms reduces the market share of tax abiding companies, according to the study. Anti-competitive practices from the informal sector rank as the third most important constraint to formal firms' growth in Latin America, after corruption and macro instability. Other restraints to growth include inefficient regulations, high tax rates, the economic cost of crime, low access and high cost of financing, high electricity costs and inefficient tax administration, according to data from the World Bank Enterprise Survey, cited in the study. Special Tax Regimes Can Also Undermine Productivity In order to reduce the level of informality and increase the tax base, several countries in the region have adopted special tax regimes for micro and small companies. These regimes also seek to reduce labor contributions by employers and expand labor benefits for low-income workers and reduce costs for the government in administering taxes on small companies so they can devote resources in fighting evasion among large corporations. However, despite their good intentions, these regimes can have harmful effects on productivity and, therefore, may erode long- term economic growth. The main problem with these regimes is that they can deter growth of small companies because they lose the special tax treatment if they grow beyond a certain point, according to the IDB study. "At the end, these regimes create incentives for firms not to grow beyond a certain point,'' said Pages. "If they invest and grow, they will not be entitled for such a special treatment and their taxes will increase dramatically. The additional taxes they will have to pay will, many times, not pay for the investments they make. So they simply don't invest." The study urges governments in the region to simplify their tax regimes, reducing the hurdles and the time required to comply with them. In addition, countries in the region should establish gradual increases in tax rates among the different regimes to reduce the barriers for micro and small companies to invest and expand their businesses. * BOND PRICING: For the Week March 1, to March 6, 2010 ------------------------------------------------------ Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA ARG-QUASI PAR 3.31 12/31/2045 ARS 49.875 ARGENT-$DIS 8.28 12/31/2033 USD 65.7775 ARGENT-$DIS 8.28 12/31/2033 USD 68.96336 ARGENT-PAR 1.18 12/31/2038 ARS 33.57708 ARGENT-=DIS 7.82 12/31/2033 EUR 58.44562507 ARGNT-BOCON PR13 2 3/15/2024 ARS 67.78522 BOGAR 2018 2 2/4/2018 ARS 109.6296 BUENOS AIRE PROV 9.625 4/18/2028 USD 62.27882421 BUENOS AIRE PROV 9.375 9/14/2018 USD 63.90200753 BUENOS-$DIS 9.25 4/15/2017 USD 71.08143786 BUENOS-=DIS 8.5 4/15/2017 EUR 71.16666667 MASTELLONE HERMA 8 6/30/2012 USD 70 MENDOZA PROVINCE 5.5 9/4/2018 USD 74.55380638 BRAZIL CESP 9.75 1/15/2015 BRL 70.41665 CAYMAN ISLAND BANIF FIN LTD 3 12/31/2019 EUR 71.015 BARION FUNDING 0.63 12/20/2056 GBP 16.6091638 BARION FUNDING 1.44 12/20/2056 GBP 29.67503029 BCP FINANCE CO 5.543 #N/A N Ap EUR 72.60714286 BCP FINANCE CO 4.239 #N/A N Ap EUR 72.06193781 BES FINANCE LTD 6.984 2/7/2035 EUR 71.52083778 BISHOPSGATE ASSE 4.808 8/14/2044 GBP 68.31044 CHINA MED TECH 4 8/15/2013 USD 58.5 CHINA PROPERTIES 9.125 5/4/2014 USD 84.30845019 CHINA SUNERGY 4.75 6/15/2013 USD 66.509 DUBAI HLDNG COMM 4.75 1/30/2014 EUR 66.51077924 DUBAI HLDNG COMM 6 2/1/2017 GBP 60.72944 FERTINITRO FIN 8.29 4/1/2020 USD 65.75 GOL FINANCE 8.75 #N/A N Ap USD 86.42 LDK SOLAR CO LTD 4.75 4/15/2013 USD 71.32249 LDK SOLAR CO LTD 4.75 4/15/2013 USD 71 MAZARIN FDG LTD 1.44 9/20/2068 GBP 27.24892371 PANAMA CANAL RAI 7 11/1/2026 USD 80 PUBMASTER FIN 6.962 6/30/2028 GBP 69.09198 SHINSEI FIN CAYM 6.418 #N/A N Ap USD 56.04152934 SHINSEI FIN CAYM 6.418 #N/A N Ap USD 56.53065433 SHINSEI FINANCE 7.16 #N/A N Ap USD 55.75 SHINSEI FINANCE 7.16 #N/A N Ap USD 55.25 SOLARFUN POWER H 3.5 1/15/2018 USD 59.731 AIR JAMAICA LTD 8.125 6/14/2027 USD 67.75 JAMAICA JAMAICA GOVT LRS 2.5 2/24/2016 JMD 58.75573683 PUERTO RICO PUERTO RICO CONS 6.5 4/1/2016 USD 63.375 VENEZUELA PETROLEOS DE VEN 5.5 4/12/2037 USD 48.52993955 PETROLEOS DE VEN 5.375 4/12/2027 USD 50.24555383 PETROLEOS DE VEN 5.25 4/12/2017 USD 61.9803447 PETROLEOS DE VEN 5.125 10/28/2016 USD 58.86334288 PETROLEOS DE VEN 5 10/28/2015 USD 62.5483948 PETROLEOS DE VEN 4.9 10/28/2014 USD 66.70904898 SIDETUR FINANCE 10 4/20/2016 USD 68 VENEZUELA 7 12/1/2018 USD 68.62334 VENEZUELA 7.75 10/13/2019 USD 70.57708 VENEZUELA 6 12/9/2020 USD 60.98077 VENEZUELA 9 5/7/2023 USD 71.60056 VENEZUELA 7.65 4/21/2025 USD 64.01179 VENEZUELA 8.25 10/13/2024 USD 67.67273 VENEZUELA 9.25 5/7/2028 USD 71.43079 VENEZUELA 5.75 2/26/2016 USD 70.98986 VENEZUELA 9.25 9/15/2027 USD 71.64420876 VENEZUELA 7 3/31/2038 USD 57.82911 VENZOD - 189000 9.375 1/13/2034 USD 71.71046 *********** 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 * * *